If developing an on-site renewable energy project is impractical, federal agencies can purchase renewable energy from off-site renewable energy projects or purchase renewable energy certificates (RECs). Renewable energy purchases do not require project financing and can help an agency meet its renewable energy goals.
The following methods can be used to purchase renewable energy that is not generated on the agency’s federal site.
|Renewable Energy Certificates
RECs, also known as renewable energy credits, green certificates, green tags, or tradable renewable certificates, represent the environmental attributes of the power produced from renewable energy projects and are sold separately from commodity electricity. RECs are attractive for federal facilities located where renewable power is not readily available. Find REC guidance in the Council on Environmental Quality’s Federal Renewable Energy Certificate Guide.
The following organizations execute REC aggregations for federal agencies:
|Off-Site Renewable Power Purchases
|Indian Land-Based Renewable Energy Purchases
Under section 203(c)(3) of the Energy Policy Act of 2005 (EPAct 2005, 42 U.S.C. 15852), agencies purchasing electricity from renewable projects situated on Indian land (as defined by the Energy Policy Act of 1992, 25 U.S.C. 3501, et seq.) receives double credit toward the renewable goals.
Section 503 of EPAct 2005 (25 U.S.C. 3502) gives federal agencies the authority to give preference to tribal businesses when purchasing electricity, energy products, or energy by-products.