As competition in the supply and delivery of electricity has been introduced in the United States, states have sought to ensure the continuation of "public benefits" programs traditionally administered or funded by electric utilities. One of the most popular policy mechanisms for ensuring such continued support has been the system-benefits charge (SBC). This paper summarizes the status and performance of fourteen state renewable energy funds supported by system-benefits charges, and is based on a more detailed recent LBNL report that can be downloaded from the web at http://eetd.lbl.gov/ea/EMS/EMS_pubs.html#RE.

Over the last several years, many U.S. states have established clean energy funds to help support the growth of renewable energy markets. Most often funded by system-benefits charges (SBC), the 15 states that have established such funds are slated to collect nearly $3.5 billion from 1998 to 2012 for renewable energy investments. These clean energy funds are expected to have a sizable impact on the energy future of the states in which the funds are being collected and used. For many of the organizations tapped to administer these funds, however, this is a relatively new role that presents the challenge of using public funds in the most effective and innovative fashion possible. Fortunately, each state is not alone in its efforts; many other U.S. states and a number of countries are undertaking similar efforts. Early lessons are beginning to be learned by clean energy funds about how to effectively target public funds towards creating and building renewable energy markets. A number of innovative programs have already been developed that show significant leadership by U.S. states in supporting renewable energy. It is important that clean energy fund administrators learn from this emerging experience.