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.
Legal use & context
This term is primarily used in energy regulation and environmental law. It pertains to facilities that generate electricity from renewable resources, such as wind or solar power. Legal practitioners may encounter this term when dealing with energy regulations, permits, and compliance issues. Users can manage related forms and procedures using resources like US Legal Forms, which provides templates for various legal documents.
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)
Relevant laws & statutes
The primary statute governing qualifying small power production facilities is found in the Public Utility Regulatory Policies Act (PURPA), specifically under 16 USCS § 796. This law outlines the definitions and regulatory framework for small power production facilities.