Introduced by Sen. Edward Markey, D-Mass., and referred to the Senate Committee on Energy and Natural Resources, the American Renewable Energy and Efficiency Act (officially Senate Bill 1627) would require utilities to obtain a minimum of 25% of their power from renewable sources by 2025. Included in the bill's definition of "renewable" are hydropower, wind, solar, geothermal and biomass.

Markey's office said 118 other nations already have national clean energy targets in place, and though 30 states and the District of Columbia already have mandatory renewable targets, America has yet to adopt a national standard. The bill's provisions for hydroelectricity apply only to "qualified hydropower", which includes a number of stipulations.

The renewable electricity requirement dictated by the legislation would begin at 6% in 2015 and increase gradually over the next decade. Utilities would also be issued one renewable electricity credit for each MWh of power produced from a renewable source, which could be sold, traded, submitted for compliance or banked for future use, Markey's office said.