FERC Proposes Updates to Form 556

The FERC has recently proposed (pdf) to revise § 131.80 of its regulations, which governs the certification of “qualified facilities” (QFs).  (Under the Federal Power Act, QFs may be “eligible” facilities (solar, wind, waste or geothermal facilities of any size, within certain dates of construction) or “non-eligible” facilities (qualifying small power production facilities of no more than 80 MW).  For more on the benefits of QF status, click here.)  The current regulation contains FERC Form 556 that is used in the certification of qualifying status for existing or proposed small power production or cogeneration facilities, along with general instructions for completing the form.

Many of the proposed changes are ministerial in nature, designed to reduce the filing burden on both generators and the FERC.  For example, the text of Form 556, now included in the text of the Rule itself, will be removed from the rule (which will allow minor changes to the form to be made without requiring a formal rulemaking process).  In addition, under the proposed revisions, all filing will now be accomplished electronically (for the convenience of both the filers and FERC, and to enable filing data to be compiled and made public more easily).  The proposed rulemaking would also make explicit the FERC’s authority to grant waiver of the filing requirement upon petition where good cause is shown; make various other corrections and clarifications to the text of the regulations, and eliminate the requirement that QFs file notice of self-certification in the Federal Register in addition to filing with the FERC.

But many small QF facilities may be most interested to learn that the proposed revisions also include an exemption from the filing requirement for the smallest applicants, those with a net power production capacity less than or equal to 1 MW.  The rationale is that generators with capacity of 1 MW or less are likely residential power generators (or small businesses), and may lack the resources – electronic and legal – to file Form 556.   Before the rule becomes final, the FERC is seeking comments on this proposed exemption:  whether the 1 MW cutoff is the appropriate size, and whether the generation data from these smallest QFs should be generated in some alternate fashion.  Comments are due December 21, 2009.