Energy Policy & Regulatory Compliance Flashcards

Which federal agency administers the Production Tax Credit (PTC) for renewable energy projects?

Answer: Internal Revenue Service (IRS)

The IRS administers the PTC, which provides a per-kilowatt-hour tax credit for electricity generated from qualified renewable sources.

Under the Clean Air Act, which provision specifically requires power plants to obtain permits for greenhouse gas emissions above a certain threshold?

Answer: Prevention of Significant Deterioration (PSD)

The PSD program requires major new or modified stationary sources, including power plants, to obtain pre-construction permits and apply Best Available Control Technology.

What is the primary purpose of a Renewable Portfolio Standard (RPS) with a 'carve-out' provision?

Answer: To set a minimum percentage requirement for a specific technology like solar

A carve-out within an RPS mandates that a specific portion of the overall renewable requirement must be met by a particular technology, commonly solar.

Which interconnection process under FERC Order 2003 applies to large generators seeking to connect to the transmission grid?

Answer: Large Generator Interconnection Procedures (LGIP)

FERC Order 2003 established the LGIP for generators greater than 20 MW seeking transmission-level interconnection.

A developer's wind project qualifies for the Investment Tax Credit (ITC). What does 'commence construction' typically require to lock in the credit rate?

Answer: Beginning physical work of a significant nature or incurring 5% of total project costs

IRS guidance allows projects to lock in the ITC rate by either starting physical work of a significant nature or incurring at least 5% of total project costs.

Which document must a utility typically file with FERC to propose changes to its transmission tariff rates?

Answer: Section 205 Filing

Under Section 205 of the Federal Power Act, utilities must file proposed rate changes with FERC for approval before they take effect.

When a state RPS allows Renewable Energy Certificate (REC) banking, what does this mean for utilities?

Answer: Utilities can store excess RECs from one compliance period to use in future periods

REC banking allows utilities to save surplus RECs from a current period to apply toward future compliance obligations, providing flexibility.