FOR AN ACT ENTITLED, An Act to  establish a state renewable and recycled energy objective and to provide certain reporting requirements.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
     Section 1.  There is hereby established a state renewable and recycled energy objective that ten percent of all electricity sold at retail within the state by the year 2015 be obtained from renewable energy and recycled energy sources. The objective shall be measured by qualifying megawatt hours delivered at retail or by certificates representing credits purchased and retired to offset nonqualifying retail sales. This objective is voluntary, and there is no penalty or sanction for a retail provider of electricity that fails to meet this objective. The objective applies to each retail provider of electricity in the state, regardless of the ownership status of the

electricity retailer. Any municipal or cooperative utility that receives wholesale electricity through a municipal power agency or generation and transmission cooperative may aggregate its renewable and recycled energy objective resources to meet this objective.
     Section 2.  Electricity qualifies for meeting the state renewable and recycled energy objective if the source meets the requirements of § §  49-34A-94 to 49-34A-96, inclusive, and the public utilities commission's rules for tracking, recording, and verifying renewable energy certificates.
     Section 3.  For the purpose of calculating the amount of electricity from a renewable energy and recycled energy source needed to meet the state renewable and recycled energy objective, a retail provider may deduct from its baseline of total retail sales the proportion of electricity obtained from a hydroelectric facility with an inservice date before July 1, 2008.
     Section 4.  Before using new renewable and recycled energy after July 1, 2008, to meet the objective, the retail provider or its generation supplier shall make an evaluation to determine if the use of new renewable and recycled energy is reasonable and cost effective considering other electricity alternatives. After making such an evaluation and considering the state renewable and recycled energy objective, the retail provider or its generation supplier may use the electricity alternative that best meets its resource or customer needs.
     Section 5.  Beginning on December 1, 2008, each retail provider shall annually report to the Public Utilities Commission on the provider's energy sales during the twelve month period ending on the preceding September thirtieth. This report shall include information regarding qualifying electricity delivered and renewable energy and recycled energy certificates purchased and retired as a percentage of annual retail sales and a brief narrative report that describes steps taken to meet the state renewable and recycled energy objective over time and identifies any challenges or barriers encountered in meeting the objective. The last annual report shall be made

on December 1, 2017. The commission shall make the data and narrative reports available and accessible to the public on the internet. The commission shall compile the data obtained from the reports and submit the data to the Legislature by the following January first. A distribution cooperative may aggregate its reporting through generation and transmission cooperatives and a municipal utility may aggregate its reporting through a municipal power agency.
     Section 6.  A portion or all of the renewable energy and recycled energy objective may be met by the purchase and retirement of renewable energy and recycled energy certificates representing credits from a qualified source and facility pursuant to this Act. Renewable energy and recycled energy certificates do not need to be acquired from an in-state facility.