REP Energy Policy & Regulatory Compliance 4 — Questions and Answers
Question 1: A wind developer wants to build near a U.S. military radar installation. Which federal agency must review the project for potential interference?
- Federal Aviation Administration (FAA)
- Department of Defense (DoD) via the Wind Energy and Radar Mission Compatibility Program (Correct answer)
- Federal Communications Commission (FCC)
- Bureau of Land Management (BLM)
Correct answer: Department of Defense (DoD) via the Wind Energy and Radar Mission Compatibility Program
The DoD reviews wind projects near military radar installations through interagency coordination processes to assess and mitigate radar interference risks.
Question 2: What is the significance of a 'must-take' or 'must-run' obligation under some state interconnection rules for renewable generators?
- The utility must purchase all power the renewable facility produces regardless of grid conditions (Correct answer)
- The utility must curtail the renewable facility before curtailing other generators
- The renewable facility must operate at full capacity at all times
- The utility must install grid-scale storage alongside the renewable facility
Correct answer: The utility must purchase all power the renewable facility produces regardless of grid conditions
A must-take obligation requires the utility to accept and pay for all output from a qualifying renewable facility, ensuring guaranteed offtake.
Question 3: Which section of the U.S. tax code governs the Investment Tax Credit (ITC) for solar energy systems?
- Section 45
- Section 48 (Correct answer)
- Section 168
- Section 25D
Correct answer: Section 48
Section 48 of the Internal Revenue Code governs the commercial ITC for business-owned solar and other qualifying energy property.
Question 4: Under FERC Order 2222, what new market participation right did FERC grant to distributed energy resources (DERs)?
- DERs can now bypass state interconnection queues
- DERs can aggregate and participate in wholesale electricity markets managed by RTOs/ISOs (Correct answer)
- DERs are exempt from all metering requirements
- DERs receive priority dispatch over conventional generators
Correct answer: DERs can aggregate and participate in wholesale electricity markets managed by RTOs/ISOs
FERC Order 2222 allows aggregations of DERs to participate in all wholesale markets run by regional transmission organizations and independent system operators.
Question 5: A solar developer is evaluating a brownfield site. Which federal program provides liability protection for developers who clean up contaminated sites for reuse as renewable energy projects?
- CERCLA Superfund Program
- EPA Brownfields Program (Correct answer)
- Voluntary Cleanup Program (VCP)
- Resource Conservation and Recovery Act (RCRA) corrective action
Correct answer: EPA Brownfields Program
The EPA Brownfields Program provides grants, loans, and liability protections to encourage assessment, cleanup, and redevelopment of contaminated properties including for clean energy.
Question 6: In electricity markets, what is 'capacity market' and why is it relevant to renewable energy developers?
- A market where utilities buy transmission capacity rights
- A market where generators are paid to ensure power will be available during peak demand periods (Correct answer)
- A secondary market for trading renewable energy certificates
- A federal program subsidizing renewable capacity additions
Correct answer: A market where generators are paid to ensure power will be available during peak demand periods
Capacity markets compensate generators for committing to provide power when needed, which is relevant for renewables as intermittent resources may face eligibility restrictions.
Question 7: Which U.S. regulatory body has authority over the siting of offshore wind projects in federal waters (beyond 3 nautical miles)?
- Army Corps of Engineers
- Bureau of Ocean Energy Management (BOEM) (Correct answer)
- Federal Energy Regulatory Commission (FERC)
- National Oceanic and Atmospheric Administration (NOAA)
Correct answer: Bureau of Ocean Energy Management (BOEM)
BOEM manages leasing, planning, and permitting for offshore wind energy development on the U.S. Outer Continental Shelf under the Outer Continental Shelf Lands Act.
REP Energy Policy & Regulatory Compliance 4
A wind developer wants to build near a U.S. military radar installation.
Which federal agency must review the project for potential interference?