REP Energy Policy & Regulatory Compliance 5

Question 1

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

Accepted 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

Answer

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.

Question 2

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

Accepted Answer

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

Answer

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.

Question 3

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

Accepted Answer

Setting of wholesale electricity market prices for the next 20 years

Answer

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.

Question 4

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?

Accepted Answer

Whether the buyer is located in a regulated or deregulated state

Answer

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.

Question 5

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

Accepted Answer

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

Answer

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

(REP) Certified Renewable Energy Professional Practice Test

(REP) Certified Renewable Energy Professional Practice Test

REP Energy Policy & Regulatory Compliance 5