This bill directs the Comptroller General to study the effectiveness, costs, and impact of Renewable Energy Certificates (RECs) on federal clean energy goals and compliance.
Julia Brownley
Representative
CA-26
The Renewable Energy Certificate Study Act of 2025 mandates a comprehensive study by the Comptroller General on the effectiveness of Renewable Energy Certificates (RECs) in driving new renewable energy development. This evaluation will compare REC usage against other compliance methods, like Power Purchase Agreements, for federal agencies. The final report will include recommendations for legislative or administrative changes to better align the REC market with federal investment goals for new clean energy generation.
Federal Energy Watchdog to Study If Green Energy Certificates Actually Drive New Projects
The Renewable Energy Certificate Study Act of 2025 is straightforward: it orders a deep dive into how the federal government is spending money to meet its clean energy goals. Think of it as an audit on whether the government’s green spending is actually building new solar farms and wind turbines, or just paying for existing ones.
The REC Reality Check
At the center of this is the Renewable Energy Certificate (REC). Essentially, an REC is a digital receipt proving that one megawatt-hour of electricity was generated from a renewable source. Federal agencies buy these RECs to show they’ve met their clean energy quotas, even if the power they use at their office comes from a gas plant. The idea is that buying the REC supports the renewable producer. But does it actually spur new projects? That's the million-dollar question this bill asks the Comptroller General (the head of the Government Accountability Office, or GAO) to answer.
This study, mandated under Section 2, requires the Comptroller General to compare three main ways the government buys clean energy: buying RECs, signing long-term Power Purchase Agreements (PPAs), or installing renewable energy directly on-site (like putting solar panels on a post office roof). They need to figure out which method is most effective at actually causing new renewable energy generation to be built. For example, if a PPA guarantees a solar developer 20 years of revenue, that might be a stronger trigger for a new project than simply buying a one-off REC.
Following the Money Trail
For you, the taxpayer, the most important part of this study is the cost analysis. The Comptroller General must calculate the average cost agencies pay using RECs to fund two very different things: existing renewable energy projects and new projects that wouldn’t have happened otherwise. They also have to estimate what it would cost if agencies were only allowed to fund brand-new projects using RECs, PPAs, or on-site generation.
This is a huge deal because it gets to the heart of government spending efficiency. If agencies are paying top dollar for RECs that just support a wind farm that was built 15 years ago, that money isn't driving innovation or new construction. We need to know if the current system is actually making progress toward a cleaner grid, or if it’s just a costly accounting exercise.
Looking Ahead
Once the GAO has all the data, they have to send a report to Congress with recommendations for new laws or administrative changes. The goal here is to make sure the REC market actually helps the federal government invest in new renewable energy. This is a crucial step for policy makers, as it provides a neutral, fact-based assessment of a complex compliance system. While the bill itself is just a study, its findings could lead to major shifts in how the federal government spends billions on clean energy procurement in the future, potentially making that spending far more effective at building the infrastructure we need.