Recent studies suggest natural gas is significantly more carbon-intensive than previously realized, with methane having at least 25 times the warming potential of carbon dioxide. If the United States is to meet greenhouse gas reduction goals, it must curtail methane leakage between 30% and 90%, and leakage is anticipated to cost producers $2 billion each year in lost product. Absent regulations from the federal government and many states, nongovernmental organizations and the private sector are developing innovative solutions.

Renewable portfolio standards (RPS) and their accompanying renewable energy credits have been adopted by 38 states and the District of Columbia. This Article argues that they have outlived their usefulness, and proposes a transition to a “carbon reduction standard” (CRS) based on a statewide target for the average carbon emissions per megawatt hour of electricity generation. It describes in detail how a CRS would work, how it aligns with changing policy goals, and how it would take advantage of RPS lessons learned.