Vermont Says Its Feed-in Tariff Complies with Federal Law

Date: 20 Oct 2010 | posted in: Energy, Energy Self Reliant States | 0 Facebooktwitterredditmail

There’s been much discussion of whether state-based feed-in tariff policies comply with federal energy law, including PURPA and the Federal Power Act. Fortunately, the brilliant folks at NREL released a report earlier this year providing feed-in tariff policy design options for state policy makers [pdf]. Furthermore, the state of Vermont recently affirmed that their feed-in tariff policy conforms to federal law.

The PSB, the regulatory authority, ruled that no challenger, including DPS, had “demonstrated that the standard offer program is invalid”. Under Vermont law, the PSB has the “obligation to implement statutes passed by the legislature,” it said, and, thus, it was their duty to do so if the law is valid.

Some challengers suggested that the PSB suspend the program while it seeks clarification from FERC. The PSB ruled definitively saying that to seek clarification from FERC; the PSB would be making a determination that the program is invalid. The program is valid, says the PSB, therefore there’s no need to seek clarification.

Good news for a policy that delivers strong support for distributed renewable energy generation.

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John Farrell
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John Farrell

John Farrell directs the Energy Democracy initiative at the Institute for Local Self-Reliance and he develops tools that allow communities to take charge of their energy future, and pursue the maximum economic benefits of the transition to 100% renewable power.