HR 1502 — PURPA Modernization Act of 2019

Summary

PURPA Modernization Act of 2019 This bill addresses the Federal Energy Regulatory Commission's (FERC) one-mile rule and the mandatory purchase obligation for electric utility companies to purchase energy from certain facilities. The bill directs FERC to publish a final rule that allows any person or entity to provide a rebuttable presumption to the one-mile rule. Under the one-mile rule, facilities are considered to be located at the same site as the facility for which qualification is sought if they are located within one mile of such facility. Specified factors must be taken into consideration by FERC when it determines whether two facilities are located at the same site. The bill authorizes an electric utility company to waive the mandatory purchase obligation if additional power is not required to meet customers' electricity needs.

Bill Text

• Introduced Introduced in House Current html March 05, 2019

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill modernizes the Public Utility Regulatory Policies Act by defining criteria for determining the location of small power production facilities and establishing nondiscriminatory access to transmission services.

• 16 U.S.C. 796(17)(A)(ii)

  The Federal Energy Regulatory Commission shall, not later than 180 days after the date of enactment of this Act, publish in the Federal Register a final rule amending its regulations implementing section 3(17)(A)(ii) of the Federal Power Act regarding the method for determining whether facilities are considered to be located at the same site as the facility for which qualification is sought for the purpose of calculating power production capacity, to provide a rebuttable presumption that— (1) facilities located one mile or more away from each other are not located at the same site; and (2) facilities located within one mile of each other are located at the same site.

  The bill establishes specific criteria for determining if small power production facilities are considered to be at the same site for capacity calculation.

• 16 U.S.C. 824a-3(m)

  (8) Nondiscriminatory access.--(A) In general.--For purposes of this subsection, except as provided in subparagraph (B), a qualifying small power production facility with an installed generation capacity of 2.5 megawatts or greater is presumed to have nondiscriminatory access to transmission and interconnection services and wholesale markets described in subparagraphs (A), (B), or (C) of paragraph (1). (B) Exception.--Subparagraph (A) does not apply to a qualifying small power production facility that, as of the date of enactment of this paragraph-- (i) produces both electric energy and useful thermal energy; and (ii) on a million British thermal unit basis, uses at least 80 percent of its total annual aggregate net output of electric energy and useful thermal energy for onsite industrial, commercial, or institutional purposes, rather than for sale.

  The bill provides a presumption of nondiscriminatory access to certain small power production facilities based on their capacity.

• 16 U.S.C. 824a-3(m)

  (9) State or local determination.--After the date of enactment of this paragraph, no electric utility shall be required to enter into a new contract or obligation to purchase electric energy under this section from a qualifying small power production facility that is not a qualifying small power production facility described in paragraph (8)(B) if the appropriate State regulatory agency or non-regulated electric utility finds, and submits to the Commission a written determination, that— (A) the electric utility has no need to purchase electric energy from such qualifying small power production facility in the amounts to be offered within the timeframe proposed by the qualifying small power production facility, consistent with the needs for electric energy and the timeframe for those needs as specified in an electric utility's integrated resource plan, in order to meet its obligation to serve customers; or (B) the electric utility employs integrated resource planning and conducts a competitive resource procurement process for long-term energy resources that provides an opportunity for qualifying small power production facilities to supply electric energy to the electric utility in accordance with the integrated resource plan of the electric utility.

  The bill allows electric utilities to avoid purchasing energy from some small power production facilities if a state regulatory agency determines there is no need for such energy.

Action History

1. March 06, 2019

   Referred to the Subcommittee on Energy.

2. March 05, 2019

   Introduced in House

3. March 05, 2019

   Introduced in House

4. March 05, 2019

   Referred to the House Committee on Energy and Commerce.

Sponsors

• Tim Walberg · Primary

Subjects