American Renewable Energy and Efficiency Act This bill amends the Public Utility Regulatory Policies Act of 1978 to require electric utilities to obtain a minimum percentage of the electricity they sell in 2019 through 2042 from renewable resources. The required annual percentage increases from 10% in 2019 to 35% for 2032 through 2042. The utilities must submit to the Federal Energy Regulatory Commission a quantity of federal renewable electricity credits that is equal to at least the annual percentage requirement. However, they may submit alternative compliance payments in lieu of credits. The bill establishes requirements governing the issuance, tracking, verification, trading, banking, and retirement of federal renewable electricity credits. States may set the rates for a sale of electric energy by a facility generating electric energy from renewable energy sources pursuant to a state-approved, voluntary production incentive program. The Department of Energy (DOE) must establish a program under which each electric utility and natural gas utility must meet performance standards for 2019 through 2032 with respect to cumulative electricity savings and cumulative natural gas savings, respectively. The performance standard increases from 1% in 2019 to 20% in 2032 for electric utilities and from 0.5% in 2019 to 13% in 2032 for natural gas utilities. In addition, the bill establishes requirements for performance standards for 2033 through 2042, and for subsequent years. DOE must review the standards at 10-year intervals and increase the standards if additional cost-effective energy efficiency potential is achievable. Utilities may use electricity or natural gas savings purchased from another utility, a state, or a third-party efficiency provider to meet the standards. The bill provides for state administration of an energy efficiency program to meet the requirements of this bill.