A federal law passed in 1978 that requires electric utilities to purchase electricity produced from certain efficient power producers (frequently using renewable or natural gas resources). Utilities purchase power at a rate equal to the costs they avoid by not needing to generate the power themselves. State regulatory agencies establish the rate based on local conditions, utility balance sheet, and resource reporting.
Policy - Federal Level
For the first time in U.S agriculture policy, the 2002 Farm Bill included an energy title that established a variety of programs to support farm-based renewable energy grant and loan guarantee program administered through the U.S Department of Agriculture - Rural Development. The Farm Bill is on a 5-year cycle and there is talk about additional support for agriculturally based wind and other renewable energy development.
The first time since 1992 that the federal government revisited national energy policy. The Energy Policy Act of 2005 included an extension of the Production Tax Credit (PTC) through the end of 007, the creation of Clean Renewable Energy Bonds, and many other provisions.
A federal statute that, among other things, established additional forms of non-utility generators. It also permitted non-generator-owning municipalities to purchase wholesale electricity, thus opening the door to municipalization, which allows municipal governments to take control over providing electric service to electric consumers.
2002 Farm Bill Makes History with New Energy Title