Energy Policy & Regulatory Compliance Flashcards

What distinguishes a 'feed-in tariff' (FIT) from a 'net metering' policy for solar customers?

Answer: Under a FIT, generators receive a fixed payment for all power exported; under net metering, excess generation offsets the customer's own bill at the retail rate

A FIT pays generators a set rate for each kWh exported to the grid, while net metering credits customers at the retail rate for surplus generation above their own consumption.

Under the Endangered Species Act (ESA), what is required before a renewable energy project can proceed if it may affect a listed species?

Answer: A Section 7 consultation with the U.S. Fish and Wildlife Service or NOAA Fisheries, or a Section 10 Incidental Take Permit

Federal nexus projects must undergo Section 7 consultation, while non-federal projects can obtain a Section 10 Incidental Take Permit with a Habitat Conservation Plan to legally proceed.

Which element is NOT typically included in a state Integrated Resource Plan (IRP) for an electric utility?

Answer: Setting of wholesale electricity market prices for the next 20 years

IRPs analyze demand forecasts and resource options to select optimal portfolios, but wholesale market prices are set by market forces and RTOs, not by utility IRPs.

A renewable energy developer seeks a Power Purchase Agreement (PPA) with a corporate buyer. Which regulatory issue most commonly determines whether the developer needs a state seller's license or utility authorization?

Answer: Whether the buyer is located in a regulated or deregulated state

In regulated states, physical PPAs may require the seller to obtain utility authorization, whereas in deregulated markets, competitive sellers can transact more freely under retail choice rules.

What is the primary function of a Regional Transmission Organization (RTO) in the U.S. energy regulatory framework?

Answer: Independently operate the transmission grid and administer wholesale electricity markets in a region

RTOs provide independent, non-discriminatory management of the bulk power transmission system and operate competitive wholesale energy, capacity, and ancillary services markets.

Under the Energy Policy Act of 2005, which incentive was created specifically to encourage investment in advanced coal, nuclear, and renewable energy facilities?

Answer: Section 1703 Loan Guarantee Program

The Energy Policy Act of 2005 established the Section 1703 loan guarantee program for innovative energy projects, including renewables, that reduce greenhouse gas emissions.

What legal concept allows a state to set renewable energy standards more stringent than federal minimums under the doctrine of cooperative federalism?

Answer: State police powers and the 'floor preemption' principle

Under cooperative federalism and floor preemption, federal standards set a minimum floor, and states may enact stricter environmental and energy standards using their police powers.