We are not currently updating this rule
Why it Matters
PURPA is the only federal law that requires electric utilities to purchase renewable energy. Enacted in 1978 and significantly amended in 2005, section 210 of the statute instructs the Federal Energy Regulatory Commission (FERC) to promulgate rules that require utilities purchase energy from renewable generators smaller than 80 megawatts and cogenerators that generate electricity as a byproduct of an industrial process. Utilities purchase energy at a price equal to the cost it would incur, but for the purchase of the energy from the PURPA qualifying facility (QF), to generate that energy on its own or purchase it from another source. States set this rate pursuant to FERC regulations.
Timeline
September 6, 2023 The Ninth Circuit upheld FERC’s 2020 rule revising its PURPA regulations. The court affirmed FERC authority to change its PURPA requirements, but rejected arguments that Order 872 violated PURPA’s requirement that the agency encourage QF development. The court, however, agreed with environmental organizations that FERC should have conducted an environmental assessment of its decision under the National Environmental Policy Act, and it remanded to the agency.
January 15, 2021 The Solar Energy Industries Association and numerous clean energy and environmental advocacy groups filed petitions in the Ninth Circuit challenging FERC’s rules.
November 19, 2020 FERC issued its rehearing order, which generally affirmed FERC’s final rules.
July 16, 2020 FERC issued its final rules that “largely adopt the proposal.” Dissenting in part from Order 872, Commissioner Glick noted that FERC’s new rules would do “little to encourage QF development.”
September 19, 2019 FERC issued a notice of proposed rulemaking to revise its PURPA regulations. FERC proposed several changes to its regulations proscribing how states may calculate rates. While the proposed rules would provide states with more flexibility in how they implement the law, they would likely result in less attractive rates for developers in some states.
June 29, 2016 FERC convened a technical conference to discuss PURPA rates and other implementation issues. Following the conference, FERC invited comments in docket No. AD16-16.