To amend title VI of the Public Utility Regulatory Policies Act of 1978 to establish a Federal renewable energy portfolio standard for certain retail electric utilities, and for other purposes.

Amends the Public Utility Regulatory Policies Act of 1978 to prescribe guidelines for a Federal Renewable Portfolio Standard for calendar years 2008 through 2037. Specifies a schedule of graduated annual percentages of a supplier's base amount, from one percent in 2008 up to 20 percent in 2027 and thereafter, that shall be generated from renewable energy resources. Authorizes a supplier to satisfy such requirements through the submission of renewable energy credits to the Secretary of Energy. Provides for energy credit trading or borrowing among suppliers.

Directs the Secretary to: (1) encourage federally-owned utilities, municipally-owned utilities, and rural electric cooperatives that sell electric energy to electric consumers for purposes other than resale to participate in the renewable portfolio standard program; and (2) establish by December 31, 2007, a State renewable energy account program.