Renewable Energy Prices in State-Level Feed-in Tariffs: Federal Law Constraints and Possible Solutions
State legislatures and state utility commissions trying to attract renewable energy projects are considering feed-in tariffs, which obligate retail utilities to purchase electricity from renewable producers under standard arrangements specifying prices, terms, and conditions. The use of feed-in tariffs simplifies the purchase process, provides revenue certainty to generators, and reduces the cost of financing generating projects. However, some argue that federal law--including the Public Utility Regulatory Policies Act of 1978 (PURPA) and the Federal Power Act of 1935 (FPA)--constrain state-level feed-in tariffs. This report seeks to reduce the legal uncertainties for states contemplating feed-in tariffs by explaining the constraints imposed by federal statutes. It describes the federal constraints, identifies transaction categories that are free of those constraints, and offers ways for state and federal policymakers to interpret or modify existing law to remove or reduce these constraints. This report proposes ways to revise these federal statutes. It creates a broad working definition of a state-level feed-in tariff. Given this definition, this report concludes there are paths to non-preempted, state-level feed-in tariffs under current federal law.
- Research Organization:
- National Renewable Energy Lab. (NREL), Golden, CO (United States)
- Sponsoring Organization:
- USDOE
- DOE Contract Number:
- AC36-99-GO10337
- OSTI ID:
- 971096
- Report Number(s):
- NREL/TP-6A2-47408; TRN: US201003%%786
- Country of Publication:
- United States
- Language:
- English
Similar Records
Innovative Feed-In Tariff Designs that Limit Policy Costs
Market and behavioral barriers to energy efficiency: A preliminary evaluation of the case for tariff financing in California
Related Subjects
29 ENERGY PLANNING
POLICY AND ECONOMY
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
ELECTRICITY
FINANCING
PRICES
TARIFFS
US PUBLIC UTILITY REGULATORY POLICIES ACT
FEED-IN TARIFFS
FIT
RENEWABLE ELECTRICITY
RENEWABLE ENERGY
ELECTRICITY SALES
ELECTRICITY PURCHASES
FINANCING ELECTRICITY GENERATING PROJECTS
STATES
STATE LEGISLATURES
STATE UTILITY COMMISSIONS
STATE POLICYMAKERS
FEDERAL LAW
FEDERAL STATUTES
THE PUBLIC UTILITY REGULATORY POLICIES ACT OF 1978
PURPA
FEDERAL POWER ACT OF 1935
FPA
Energy Analysis