A recent report from the National Renewable Energy Laboratory found that feed-in tariffs established by states to promote the use of renewable energy are legal under certain conditions, clearing the way for the programs that aim to level the pricing playing field.
The long-awaited NREL report points out that that the feed-in tariffs can be lawful under the Public Utility Regulatory Policies Act (or PURPA), if they are voluntarily offered by utilities, or based on “avoided cost” and paid with renewable energy credits, subsidies, or tax credits.
Oregon is one of four states that have established feed-in tariff programs. Oregon’s was started last year as pilot program under House Bill 3039. The legislation did not establish the incentive rate or rules for the pilot program and the Public Utilities Commission must adopt rules and approve the rate for the incentive payment by April 1.
Portland Business Journal – http://portland.bizjournals.com/portland/stories/2010/02/15/daily13.html