Vermont Governor Jim Douglas signed a renewable portfolio standard into law on June 14, 2005. The legislation requires renewable generation to equal incremental load growth between 2005 and 2012, but does not require utilities hold renewable energy credits (RECs) equal to renewable generation. If utilities have not met this requirement, the state will instate an RPS equal to the percentage of load growth between 2005 and 2012. If the state experiences 7% load growth, but utilities have not obtained 7% of their electricity from eligible renewables by 2012, the state will adopt an RPS of 7%. Vermont’s definition of renewable energy includes wind, solar, small hydropower methane from landfill gas, anaerobic digesters, and sewage-treatment facilities, while excluding municipal solid waste. Vermont utilities are permitted to build generation capacity out of state to comply with the mandate, and may also sell Renewable Energy Credits.