Understanding the Qualifying Small Power Production Facility: Legal Insights

Definition & Meaning

A qualifying small power production facility is a type of energy production site that meets specific criteria set by the Federal Energy Regulatory Commission (FERC). To qualify, the facility must:

  • Be classified as a small power production facility.
  • Meet requirements regarding fuel use, efficiency, and reliability as determined by FERC.
  • Be owned by an individual or entity not primarily engaged in the generation or sale of electric power, except for power generated from cogeneration or small power production facilities.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A community-owned solar farm that produces electricity solely for local consumption and is not operated by a commercial electric utility may qualify as a qualifying small power production facility.

Example 2: A wind turbine installation owned by a farmer who uses the electricity for their farm operations, rather than selling it commercially, could also meet the criteria. (hypothetical example)

Comparison with related terms

Term Definition Key Differences
Small Power Production Facility A facility that generates electricity using renewable resources. Qualifying small power production facilities must meet specific ownership and regulatory criteria.
Cogeneration Facility A facility that produces electricity and useful heat simultaneously. Cogeneration facilities focus on producing both electricity and heat, while qualifying small power facilities primarily generate electricity.

What to do if this term applies to you

If you believe your facility may qualify as a qualifying small power production facility, consider the following steps:

  • Review the criteria set by FERC to ensure compliance.
  • Consult with a legal professional who specializes in energy law for tailored advice.
  • Explore US Legal Forms for templates related to energy regulation and compliance.

Quick facts

  • Typical Fees: Varies by state and facility size.
  • Jurisdiction: Federal and state energy regulatory bodies.
  • Possible Penalties: Non-compliance can result in fines or revocation of operating permits.

Key takeaways