18 C.F.R. § 292.602

Exemption to qualifying facilities from the Public Utility Holding Company Act of 2005 and certain State laws and regulations

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(a) Applicability. This section applies to any qualifying facility described in § 292.601(a), and to any qualifying small power production facility with a power production capacity over 30 megawatts if such facility produces electric energy solely by the use of biomass as a primary energy source.

(b) Exemption from the Public Utility Holding Company Act of 2005. A qualifying facility described in paragraph (a) of this section or a utility geothermal small power production facility shall be exempt from the Public Utility Holding Company Act of 2005, 42 U.S.C. 16,451-63.

(c) Exemption from certain State laws and regulations. (1) Any qualifying facility described in paragraph (a) of this section shall be exempted (except as provided in paragraph (c)(2) of this section) from State laws or regulations respecting:

(i) The rates of electric utilities; and

(ii) The financial and organizational regulation of electric utilities.

(2) A qualifying facility may not be exempted from State laws and regulations implementing subpart C.

(3) Upon request of a state regulatory authority or nonregulated electric utility, the Commission may consider a limitation on the exemptions specified in paragraph (b)(1) of this section.

(4) Upon request of any person, the Commission may determine whether a qualifying facility is exempt from a particular State law or regulation.

(Energy Security Act, Pub. L. 96-294, 94 Stat. 611 (1980) Public Utility Regulatory Policies Act of 1978, 16 U.S.C. 2601, et seq., Energy Supply and Environmental Coordination Act, 15 U.S.C. 791, et seq., Federal Power Act, as amended, 16 U.S.C. 792 et seq., Department of Energy Organization Act, 42 U.S.C. 7101, et seq.; E.O. 12009, 42 FR 46267) [45 FR 12237, Feb. 25, 1980, as amended by Order 135, 46 FR 19232, Mar. 30, 1981; Order 671, 71 FR 7869, Feb. 15, 2006; Order 671-A, 71 FR 30589, May 30, 2006; Order 732, 75 FR 15966, Mar. 30, 2010; 77 FR 9842, Feb. 21, 2012]
Notes of Decisions
Cited in 20 cases, 1984–2012 · leading case: Crossroads Cogeneration Corp. v. Orange & Rockland Utils., Inc, 159 F.3d 129 (3rd Cir. 1998).
Crossroads Cogeneration Corp. v. Orange & Rockland Utils., Inc, 159 F.3d 129 (3rd Cir. 1998). · cites it 2× “18 C.F.R. § 292.602 (c)(1). Despite the existence of FERC regulations governing QFs' and the exemption of QFs from certain federal and state regulations applicable to traditional electric utilities, state regulatory authorities are required to implement FERC rules.”
Adrian Energy Assocs. v. Michigan Pub. Serv. Comm'n, Consumers Energy Co., Intervenor-Defendant, 481 F.3d 414 (6th Cir. 2007). “Congress enacted the Public Utility Regulatory Policies Act of 1978 (often referred to as “PURPA”) to overcome traditional electric utilities’ reluctance to purchase power from nontraditional electric generation facilities and to reduce the financial burden from state and…”
Rosebud Enter., Inc. v. Idaho Pub. Utils. Comm'n, 917 P.2d 766 (Idaho 1996). · cites it 3× “§ 824a-3(b), (e); 18 C.F.R. § 292.602 (c)(l)(i)(ii) (1995).”
Bristol Energy Corp. v. State of New Hampshire Pub. Utils. Comm'n, 13 F.3d 471 (1st Cir. 1994). · cites it 3× “§ 824a-3(e)(l); 18 C.F.R. § 292.602 (c)(1). The Federal Energy Regulatory Commission (FERC) promulgates regulations affecting QFs.”
Midland Cogeneration Venture Ltd. P'ship v. Pub. Serv. Comm'n, 501 N.W.2d 573 (Mich. Ct. App. 1993). · cites it 2× “18 CFR 292.602(c). [3] The PSC also has specific statutory authority under § 13 of 1929 PA 9 , MCL 483.”
Consol. Edison Co. v. Pub. Serv. Comm'n, 472 N.E.2d 981 (NY 1984). “The FPA would also preempt State regulation of the Federal qualifying facilities in New York except that they are exempted from the *439 FPA under subdivision (e) of section 210 of PURPA (see 16 USC § 824a-3 [e]; 18 CFR 292.602). The purely State qualifying facilities, however,…”
Wheelabrator Lisbon Inc. v. State of Connecticut Dep't of Pub. Util. Control, 526 F. Supp. 2d 295 (D. Conn. 2006). · cites it 2× “§ 824a-3(e)(l); 18 C.F.R. § 292.602 (c)). Because the court concluded that the QF was “essentially claiming that the BRC [was] subjecting it to regulations precluded by 210(e),” the court held that the claim was not barred by the jurisdictional limitations of section 210(g)(1).”
Freehold Cogeneration Assocs., L.P. v. Bd. of Regulatory Commissioners of New Jersey, 44 F.3d 1178 (3rd Cir. 1995). · cites it 8× “18 C.F.R. § 292.602 (c). A. Freehold asserts that the district court had federal question jurisdiction over this case pursuant to 28 U.”
White Current Corp. v. Vermont Elec. Coop., Inc., 609 A.2d 222 (Vt. 1992). “In support of its argument, White Current points to 18 C.F.R. § 292.602 (c)(1), which exempts small power producers from “State law or regulation respecting: (i) [t]he rates of electric utilities; and (ii) [t]he financial and organizational regulation of electric utilities.”
New York State Elec. & Gas Corp. v. Saranac Power Partners, L.P., 117 F. Supp. 2d 211 (N.D.N.Y. 2000). “304 (b)(5) and/or the exemption provisions in 18 C.F.R. § 292.602 , pursuant to the FPA when these regulations were enacted as did the plaintiffs in API; 2) NY-SEG’s failure to have petitioned FERC for amendment or recission of these regulations and then appealed a denial…”
West Penn Power Co. v. Pennsylvania Pub. Util. Comm'n, 659 A.2d 1055 (Pa. Commw. Ct. 1995). “In pertinent part, 18 C.F.R. § 292.602 (c) states: (1) Any [QF] shall be exempted .”
Niagara Mohawk Power Corp. v. Fed. Energy Regulatory Comm'n, 162 F. Supp. 2d 107 (N.D.N.Y. 2001). “§ 824a-3(e); 18 C.F.R. § 292.602 . The purely state qualified QFs, however, are not eligible for this federally authorized exemption because they are not covered by PURPA.”
— 18 C.F.R. § 292.602(c) — 1 case
Midland Cogeneration Venture Ltd. P'ship v. Pub. Serv. Comm'n, 501 N.W.2d 573 (Mich. Ct. App. 1993). “18 CFR 292.602(c). [3] The PSC also has specific statutory authority under § 13 of 1929 PA 9 , MCL 483.”
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