CALIF RULES F-I-T LEGAL

California's Attorney General Says Feed-in Tariffs Legal in USA
Paul Gipe, June 29, 2009 (Wind-Works)

"… California's Attorney General (AG) argued that feed-in tariffs as proposed in California are not only permitted under federal law but that they should be used to encourage the rapid growth of renewable energy…The submission, part of hearings by the California's Public Utility Commission (PUC) on whether the state can meet its Renewable Portfolio Standard, is potentially far-reaching because feed-in tariff opponents often raise the specter of federal-government intervention on the grounds that renewable tariffs violate federal law.

"The AG is the legal representative of the government of California. However…It is the PUC that will rule on whether to use feed-in tariffs and, if so, what rates should be set…[T]he filing by the AG has created a stir not only in California but nationwide for several reasons, not the least of which is that California's AG is… Jerry Brown…[former] governor of California from 1975-1983 and…widely recognized…for the massive development of renewable energy in California during the early 1980s. The majority of the wind and solar generating capacity operating in the state was installed during that period."

Then and future Governor Brown's 1978 FiT was the world's first. (click to enlarge)

"California won its reputation as a leader in renewable energy and energy conservation during Brown's administration and has lived off that reputation for nearly a quarter-century. It was under Brown's leadership that the then PUC created the world's first successful feed-in tariff…Brown has said that he plans to run for governor again in 2010.

"The AG's filing specifically says that the PUC 'has sufficient legal authority to set feed-in tariff rates to promote the adoption of distributed generation.' Moreover, the AG goes on to encourage the PUC 'to proceed with its efforts and to set the feed-in tariff rate at a level that encourages a significant increase in the megawatts of distributed renewable energy available in California.'"

click to enlarge

"Feed-in tariff opponents have argued that the Public Utility Regulatory Policies Act (PURPA), a part of 1978's National Energy Act, precludes renewable tariffs based on the cost of generation…The AG counters that…there are ways to meet PURPA's requirements while meeting the need to rapidly develop renewable energy through what amounts to setting a tariff based on the cost of generation…

"Equally as important, the filing squarely confronts the Supreme Court's decades-old [Midwest Power case] decision throwing out an early feed-in tariff in Iowa on PURPA grounds…The mere threat of the old Midwest Power case was used effectively to kill a proposed Renewable Energy Sources Act in Iowa earlier this year…Feed-in tariff proponents are breathing a sigh of relief…"