Practice Test Geeks(ERAC) Energy Risk Auditor Certification Practice Test
← All ERAC Flashcard Decks

Regulatory Compliance & Legal Framework Flashcards

7 cards from real ERAC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Regulatory Compliance & Legal Framework flashcards as text

  1. Under Dodd-Frank Title VII, which category of energy derivatives is generally subject to mandatory central clearing requirements?

    Answer: Standardized swaps designated by the CFTC as subject to clearing

    Dodd-Frank requires mandatory central clearing for standardized swaps that the CFTC has designated as clearing-eligible, reducing counterparty risk.

  2. The Outer Continental Shelf Lands Act (OCSLA) grants primary federal jurisdiction over offshore energy development to which agency?

    Answer: Bureau of Ocean Energy Management (BOEM)

    BOEM (formerly MMS) administers OCSLA, overseeing leasing, exploration, and development of OCS mineral and energy resources.

  3. A natural gas pipeline company seeks to abandon service to a customer. Under the Natural Gas Act, what must it obtain first?

    Answer: FERC authorization or certificate approval for abandonment

    The Natural Gas Act requires interstate pipelines to obtain FERC authorization before abandoning any certificated service or facilities.

  4. Which aspect of the Public Utility Regulatory Policies Act (PURPA) of 1978 most directly expanded renewable energy development opportunities?

    Answer: It mandated utilities to purchase power from qualified facilities (QFs) at avoided cost

    PURPA required electric utilities to purchase electricity from qualifying small power producers and cogenerators at the utility's avoided cost, creating a market for independent power.

  5. Under EPA's Renewable Fuel Standard (RFS) program, obligated parties must demonstrate compliance primarily through which mechanism?

    Answer: Retiring Renewable Identification Numbers (RINs) to meet volume obligations

    The RFS program uses RINs as the compliance currency; obligated parties (refiners and importers) must retire sufficient RINs to meet their renewable volume obligations.

  6. When an energy company discovers a potential FCPA (Foreign Corrupt Practices Act) violation related to overseas project development, which two US agencies share enforcement authority?

    Answer: DOJ and SEC

    The Department of Justice and the Securities and Exchange Commission jointly enforce the FCPA, with DOJ handling criminal prosecutions and SEC handling civil cases for issuers.

  7. Which legal standard governs FERC's review of proposed electric utility mergers under Section 203 of the Federal Power Act?

    Answer: Public interest standard

    Under FPA Section 203, FERC approves mergers and dispositions of jurisdictional assets only if they are consistent with the public interest.