American Renewable Energy Act

American Renewable Energy Act – Amends the Public Utility Regulatory Policies Act of 1978 to require the Secretary of Energy to establish a program to implement and enforce a renewable electricity trading program, including requirements governing the issuance, tracking, and retirement of federal renewable electricity credits.

Requires each retail electric supplier to submit to the Secretary, annually, a quantity of federal renewable electricity credits equal to the supplier's base amount (electricity sold) for the calendar year multiplied by a specified annual percentage for 2012 though 2039. Authorizes suppliers to satisfy such requirement by submitting, in lieu of each credit, a payment equal to the lesser of: (1) 200% of the average market value of a credit for the previous compliance year; or (2) five cents, adjusted each year after 2009 based on the Gross Domestic Product Implicit Price Deflator. Requires such payments to be deposited in a Renewable Electricity Deployment Fund, from which payments shall be made to suppliers that have submitted credits in compliance with their obligations for the preceding year.

Requires the Secretary to issue to each generator of renewable electricity one federal renewable electricity credit for each kilowatt hour of renewable electricity generated. Provides for the issuance of credits: (1) to suppliers for renewable electricity generated with the support of payments from a supplier pursuant to a state renewable electricity program; (2) to distributed generation facilities; (3) for qualifying hydropower; and (4) to generators that produce electricity using both a renewable energy resource and a non renewable resource.

Provides for: (1) the trading and banking of credits; (2) Federal Energy Regulatory Commission (FERC) oversight of the market for such credits; and (3) civil penalties for noncompliance.

Requires the Secretary to contract with the National Academy of Sciences to submit periodic comprehensive evaluations of the federal renewable electricity trading program.

Terminates this Act on December 31, 2040.