I. State-Level Tariffs Based on a PURPA Mandate

A. PURPA Overview: A utility must buy capacity and energy from "qualifying facilities," priced at the utility's avoided cost
B. PURPA Administration: FERC grants QF status; states determine avoided
cost and administer the utility's purchase obligation
C. PURPA Shrinkage: FERC has exempted some utilities from PURPA's purchase obligation
D. Compensation for PURPA Sellers: States can—with care—grant renewable sellers compensation exceeding the utility's avoided cost
E. Application of PURPA concepts to state feed-in tariffs: Summary of the three steps

II. State-Level Tariffs Based on a State Law Mandate

A. Federal Power Act Overview: FERC has exclusive jurisdiction to set wholesale rates
B. To avoid FPA preemption, states must fashion their feed-in tariffs as offers to purchase, but even then legal uncertainty exists
C. In the FPA context, the state can set different sales offer prices for different technologies
D. Once states establish feed-in tariffs, sellers still must obtain FERC permission to sell
E. Exemptions from FPA review for QFs sized 20 MW and below if FERC clarifies and/or adjusts its precedent
F. Safe Harbors, Presumptions and other Forms of Guidance: FERC can facilitate sellers' compliance with the Federal Power Act

III. Amendments to Current Federal Statutes

A. The House- Passed American Clean Energy and Security Act
B. Four Conceptual Federal Legislative Options

IV. Related Questions

A. What price-setting methods are available to state designers of feed-in tariffs?
B. Does the applicability of the FPA or PURPA change if the seller's delivery to the buyer occurs at a distribution facility rather than a transmission facility?
C. Do the federal statutes apply to renewable sales to retail customers?

Conclusions

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