PURPA Qualifying Facilities

Small Power Production Facility

A small power production facility is a generating facility of 80 MW or less whose primary energy source is renewable (hydro, wind or solar), biomass, waste, or geothermal resources. There are some limited exceptions to the 80 MW size limit that apply to certain facilities certified prior to 1995 and designated under section 3(17)(E) of the Federal Power Act (FPA) (16 U.S.C. § 796(17)(E)), which have no size limitation. In order to be considered a qualifying small power production facility, a facility must meet all of the requirements of 18 C.F.R. §§ 292.203(a), 292.203(c) and 292.204 for size and fuel use, and be certified as a QF pursuant to 18 C.F.R. § 292.207.

Cogeneration Facility

A cogeneration facility is a generating facility that sequentially produces electricity and another form of useful thermal energy (such as heat or steam) in a way that is more efficient than the separate production of both forms of energy. For example, in addition to the production of electricity, large cogeneration facilities might provide steam for industrial uses in facilities such as paper mills, refineries, or factories, or for HVAC applications in commercial or residential buildings. Smaller cogeneration facilities might provide hot water for domestic heating or other useful applications. In order to be considered a qualifying cogeneration facility, a facility must meet all of the requirements of 18 C.F.R. §§ 292.203(b) and 292.205 for operation, efficiency and use of energy output, and be certified as a QF pursuant to 18 C.F.R. § 292.207. There is no size limitation for qualifying cogeneration facilities.

Right to Sell QF Energy or Capacity to a Utility

QFs have the right to sell energy and capacity to a utility (see 18 C.F.R. § 304), provided the purchasing utility has not been relieved from its QF purchase obligation (see 18 C.F.R. § 309-311). With limited exceptions, QFs generally have the option of selling to a utility either at the utility's avoided cost or at a negotiated rate. Avoided cost is the incremental cost to an electric utility of electric energy or capacity which, but for the purchase from the QF, such utility would generate itself or purchase from another source (see 18 C.F.R. § 292.101(b)(6)). QFs also generally have the option to sell energy either "as-available" (i.e., as the QF determines such energy to be available for such purchases) or as part of a legally enforceable obligation for delivery of energy or capacity over a specified term.

Right to Purchase Certain Services from Utilities

QFs have the right to purchase supplementary power, back-up power, maintenance power, and interruptible power at rates which are just and reasonable, based on accurate data and consistent system-wide costing principles, and that applies to the utility's other customers with similar load or cost-related characteristics (see 18 C.F.R. § 292.305), provided the selling utility has not been relieved from its QF sales obligation (see 18 C.F.R. § 312 - 313). QFs also have the right to interconnect with a utility by paying a nondiscriminatory interconnection fee approved by the State regulatory authority or a nonregulated electric utility (see 18 C.F.R. § 292.306).

Relief from Regulatory Burdens

The following categories of QFs are exempt from the Public Utility Holding Company Act of 2005 (PUHCA) (see 18 C.F.R. § 292.602):

• Cogeneration facilities of any size.
• Small power production facilities 30 MW or smaller.
• Geothermal and biomass small power production facilities of any size.
• Small power production facilities of any size that are designated as "eligible" under section 3(17)(E) of the Federal Power Act (FPA).

The following categories of QFs are exempt from State laws and regulations respecting the rates and financial and organizational aspects of utilities (see 18 C.F.R. § 292.602):

• Cogeneration facilities of any size.
• Small power production facilities 30 MW or smaller.
• Geothermal and biomass small power production facilities of any size.
• Small power production facilities of any size that are designated as "eligible" under section 3(17)(E) of the FPA.

The following categories of QFs are largely exempt from most sections (not including sections 205, 206 and certain other sections) of the FPA (see 18 C.F.R. § 292.601):

• Cogeneration facilities of any size.
• Non-geothermal small power production facilities 30 MW or smaller.
• Geothermal small power production facilities of any size.
• Small power production facilities of any size that are designated as "eligible" under section 3(17)(E) of the FPA.

The above categories of QFs are further exempt from scrutiny under sections 205 and 206 of the FPA (see 18 C.F.R. § 292.601) if they are:

• QFs 20 MW or smaller.
• QFs making sales pursuant to a contract executed on or before March 17, 2006.
• QFs making sales pursuant to a state regulatory authority's implementation of section 210 of PURPA.

Order No. 732 does not require facilities with net capacity of 1 MW or less to make a filing with the Commission to claim QF status, although applicants for such facilities may seek certification if they wish to do so. All facilities (including those that are exempted from filing for QF certification because of their smaller size) must meet certain qualifications in order to be a qualifying facility.

The choice of whether to certify a facility through a self-certification or Commission certification is up to the applicant. In some instances, negotiations with a lender or utility purchaser may proceed more smoothly if the facility has been certified by the Commission.

When eFiling a completed Form No. 556, select one of the following filing types, as appropriate, from the Electric menu when prompted:

• (Fee) Application for Commission Cert. (or recert) as Cogeneration QF
• (Fee) Application for Commission Cert. (or recert) as Small Power QF
• Self-Certification Notice (QF, EG, FC)
• Self-Recertification of Qualifying Facility (QF)
• Supplemental Information or Request (use this selection if you are supplementing or correcting a filing, whether on your own initiative, or at the request of Commission staff)

If you are required to pay a fee, you will be prompted to submit your fee electronically during the electronic filing process. You can pay via credit card or electronic debit from a bank account.

NOTE: QF filings have an associated notice requirement; see the Commission's QF Notice Requirements website for more information.

After submitting an application, applicants can locate documents related to their application and find their docket number by performing a New Dockets Search in eLibrary.

Within 90 days of the filing of an application, the Commission will either inform the applicant that the filing is deficient, issue an order granting or denying the application, or issue an order tolling the date for issuing an order addressing the application. Under 18 C.F.R., 292.207(b)(3), if the Commission has not acted upon the application within 90 days of the filing date, it shall be deemed granted.

In addition, the Commission will provide notice to the public through a publication in the Federal Register of a description of the filing for the following types of filings.  Applicants are not required to provide a draft of these Federal Register notices with their filings.  Rather, the Federal Register notice information will be automatically pulled from their electronic Form 556.

• Application for Commission certification
• Self-certification of an EPAct 2005 “new” cogeneration facility.

• NOPR (RM19-15-000 and AD16-16-000): Qualifying Facility Rates and Requirements, issued September 19, 2019.

In this Notice of Proposed Rulemaking (NOPR), FERC proposes to revise the Commission’s regulations implementing sections 201 and 210 under the Public Utility Regulatory Policies Act of 1978 (PURPA), in light of changes in the energy industry since 1978.

• EL19-10-010: The Order grants New England Ratepayers’ Petition finding that, the recently enacted New Hampshire statute, Senate Bill 365 (SB 365), is preempted by the Federal Power Act (FPA) and section 210 of the Public Utility Regulatory Policies Act of 1978 (PURPA).
• Order No. 732: Revisions to Form, Procedures, and Criteria for Certification of Qualifying Facility Status for a Small Power Production or Cogeneration Facility Notice of Proposed Rulemaking, issued March 19, 2010.

This final rule updates the Commission’s Form 556, used by cogeneration and small power production facilities either to self-certify qualifying facility (QF) status or to apply for Commission certification of QF status. The final rule also revises the Commission’s regulations to remove the contents of Form 556 from the regulations, and in their place to provide that an applicant seeking to certify QF status of a small power production or cogeneration facility must complete, and electronically file, the Form 556 that is in effect at the time of filing. The final rule exempts 1 MW and smaller generating facilities from the Form 556 filing requirement, i.e., the need to file a Form 556 with the Commission, in order to be a QF.

• RM09-23-000: Revisions to Form, Procedures, and Criteria for Certification of Qualifying Facility Status for a Small Power Production or Cogeneration Facility Notice of Proposed Rulemaking, issued October 15, 2009.

In this Notice of Proposed Rulemaking (NOPR), the Commission proposes to revise and reformat the FERC Form No. 556 to clarify the content of the form and to take advantage of newer technologies that will reduce both the filing burden for applicants and the processing burden for the Commission. As part of these changes, the Commission proposes to remove the contents of the Form 556 from the regulations, and, in their place, to provide that an applicant seeking to certify qualifying facility (QF) status of a small power production or cogeneration facility must complete and file the Form No. 556 that is in effect at the time of filing. The NOPR also proposes, among other things, to require that an applicant filing a Form 556 submit its form electronically through the Commission's eFiling website, and to exempt from the QF certification requirement generating facilities with net power production capacities of 1 MW or less.

• Order No. 688-A (RM06-10): Order on Rehearing regarding New PURPA Section 210(m) Regulations Applicable to Small Power Production and Cogeneration Facilities, issued June 22, 2007.

The Commission denied rehearing and granted clarification of a Final Rule that implemented section 210(m) of the Public Utility Regulatory Policies Act of 1978. Section 210(m) provides for termination of the requirement that an electric utility enter into a new contract or obligation to purchase electric energy from qualifying cogeneration facilities and qualifying small power production facilities (QFs) if the Commission finds that the QF has nondiscriminatory access to one of three categories of markets.

• Order No. 688 (RM06-10): New PURPA Section 210(m) Regulations Applicable to Small Power Production and Cogeneration Facilities, issued October 20, 2006.

The Commission finalized a rulemaking modifying the mandatory power purchase obligation for electric utilities under the Public Utility Regulatory Policies Act of 1978 (PURPA). The rulemaking implemented a mandate of the Energy Policy Act of 2005. The Commission determined that the Midwest Independent Transmission System Operator, PJM Interconnection, ISO-New England and the New York Independent System Operator provide wholesale markets which meet the statutory criteria for member utilities to qualify for relief from the mandatory purchase obligation. It also established a rebuttable presumption that qualifying facilities (QFs) above 20 Megawatts net capacity have non-discriminatory access to these four markets and that electric utility members should be relieved of their mandatory purchase obligation. The Commission emphasized, however, that it is not terminating the purchase obligation of any utility with the final rule. Electric utilities must file applications for relief and QFs in the above markets may under the rule be able to rebut the presumption of access to markets because of operational characteristics or transmission constraints.

• Order No. 671-A (RM05-36): Order on Rehearing regarding Revised Regulations Governing Small Power Production and Cogeneration Facilities, issued May 22, 2006.

Order No. 671-A reaffirms determinations and grants clarification in part of Order No. 671 with respect to the status of QFs under PUHCA 2005.

• Order No. 671 (RM05-36): Revised Regulations Governing Small Power Production and Cogeneration Facilities, issued February 2, 2006.

Pursuant to section 1253 of the Energy Policy Act of 2005 (EPAct 2005) and section 210 of the Public Utility Regulatory Policies Act of 1978 (PURPA), Order No. 671 revises 18 CFR parts 131 and 292 to implement amended regulations governing qualifying cogeneration and small power production facilities. Among the most important provisions in Order No. 671 include (1) a requirement that an applicant for an EPAct 2005 cogeneration facility demonstrate that the facility's thermal output is used in a productive and beneficial manner; (2) a requirement that an applicant for an EPAct 2005 cogeneration facility demonstrate that the electrical, thermal, chemical and mechanical output of the facility is used fundamentally for industrial, commercial, residential or institutional purposes, and is not intended fundamentally for sale to an electric utility, taking into account technological, efficiency, economic, and variable thermal energy requirements, as well as state laws applicable to sales of electric energy from a qualifying facility to its host facility; (3) elimination of certain exemptions from regulation that were previously granted to QFs; and (4) elimination of ownership limitations for QFs.

• Order No. 575 (RM92-12) Final Rule: Streamlining of Regulations Pertaining to Parts II and III of the Federal Power Act and the Public Utility Regulatory Policies Act of 1978, issued January 13, 1995.

Order No. 575 establishes, among other things, the FERC Form No. 556 to be used by applicants to self-certify or to apply for Commission certification of qualifying status for a small power production or cogeneration facility.

• Order No. 135 (RM81-2) Final Rule: Eligibility, Rates and Exemptions for Qualifying and Utility-Owned Geothermal Small Power Production Facilities, issued March 23, 1981.

Order No. 575 establishes, among other things, the FERC Form No. 556 to be used by applicants to self-certify or to apply for Commission certification of qualifying status for a small power production or cogeneration facility.

• Order No. 70-D (RM79-54): Order Amending Regulations, issued September January 28, 1981.

Order No. 70-D enables certain "electric utilities" which are not "primarily engaged in the generation or sale of electric energy" to own up to 100 percent of a qualifying facility.

• Order No. 104 (RM80-62) Final Rule: Regulations Exempting Mechanical Cogeneration Facilities from the Incremental Pricing Provisions of the Natural Gas Policy Act of 1978, issued October 23, 1980.

Order No. 104 contains rules allowing mechanical cogeneration facilities to obtain exemption from the incremental pricing provisions of the Natural Gas Policy Act of 1978.

• Order No. 70-C (RM79-54): Amendment to Order No. 70: Order Granting Rehearing of Order No. 70-B and Amending Regulations, issued September 26, 1980.

Order No. 70-C permits electric utility holding companies found by the Securities and Exchange Commission to be "exempt holding companies" under Sections 3(a)(3) and 3(a)(5) of the Public Utility Holding Company Act to own qualifying cogeneration and small power production facilities.

• Order No. 70-B (RM79-54): Amendment to Order No. 70.

Order Granting in Part and Denying in Part Rehearing of Order No. 70, and Amending Regulations, issued August 4, 1980.

• Amendment to Order Nos. 69 and 70 (RM79-54 and RM79-55): Amendment to Small Power Production Order Granting in Part and Denying in Part Rehearing of Order Nos. 59 and 70, and Amending Regulations, issued May 15, 1980.

The Commission's "Order Granting in Part and Denying in Part Rehearing of Orders Nos. 69 and 70 and Amending Regulations," and the "Amendment to Final Rule Providing that Applications for Commission Certification of Qualifying Status Contain a Notice for Publication In the Federal Register" contain clarification and minor revisions of Orders Nos. 69 and 70.

• Order No. 70-A (RM79-54): Amendment to Final Rule: Small Power Production and Cogeneration Facilities, issued May 5, 1980.

Order No. 70-A provides that applications for Commission certification of qualifying status pursuant to the rules implementing Section 201 of PURPA contain a notice for publication in the Federal Register.

• Environmental Findings (RM79-54 and RM79-55): Small Power Production and Cogeneration Facilities, issued March 31, 1980.

"Environmental Findings; No Significant Impact and Notice of Intent to Prepare Environmental Impact Statement" contains the Commission's environmental assessment of the effect of these regulations. With the exception of new diesel cogeneration facilities, these rules will not significantly affect the environment. The Commission gave notice that it intends to prepare an environmental impact statement evaluating the effects of the increased use of diesel cogeneration that would result from qualification of that technology.

• Order No. 70 (RM79-54): Final Rule: Small Power Production and Cogeneration Facilities - Qualifying Status, issued March 13, 1980.

Order No. 70 establishes criteria and procedures by which cogeneration or small power production facilities can qualify for the rates and exemptions set forth in Order No. 69. It also establishes the eligibility of qualifying cogeneration facilities for an exemption from incremental pricing of natural gas contained in the Natural Gas Policy Act of 1978.

• Order No. 69 (RM79-55): Final Rule: Small Power Production and Cogeneration Facilities, issued February 19, 1980.

Order No. 69 contains the rules implementing Section 210 of PURPA. It establishes rates for sales of electric power between qualifying cogeneration and small power production facilities and electric utilities, and establishes exemptions for qualifying facilities from state and federal regulations governing electric utilities.

• RM79-54 Interim Rule: Qualification of Gas-Fired Cogeneration Facilities for Purposes of the Incremental Pricing Program, issued November 9, 1979.

The Commission issued an "Interim Rule for Qualification of Gas-Fired Cogeneration Facilities for Purposes of the Incremental Pricing Program" in Docket No. RM79-54 which was later incorporated into Order No. 70.

• Order No. 49 (RM79-14): Final Rule: Regulations Implementing the Incremental Pricing Provisions of the Natural Gas Act of 1978, issued September 28, 1979.

Order No. 49 contains the Commission's rules implementing the incremental pricing provisions under Title II of the Natural Gas Policy Act of 1978. An exemption was established in this rule for qualifying cogeneration facilities, as defined in the Commission's rules implementing Section 201 of PURPA.

• RM79-55: Staff Paper Discussing Commission Responsibilities to Establish Rules Regarding Rates and Exemptions for Qualifying Cogeneration and Small Power Production Facilities Pursuant to Section 210 of the Public Utility Regulatory Policies Act of 1978, issued June 26, 1979.

The Staff Discussion Paper sets forth many of the issues facing the Commission in developing regulations under Section 210 of PURPA. It was issued prior to the Notices of Proposed Rulemaking.

You may use reliable web-based resources to help you locate your facility's geographic coordinates. For most applicants, the easiest way to obtain their facility's geographic coordinates is through the use of a web-based map service. In each of the web services below, the values reported for latitude are north latitude if positive (N or +), and south latitude if negative (S or -). The values reported for longitude are east longitude if positive (E or +), and west longitude if negative (W or -).

To assist filers and minimize reporting burden, the Commission is providing some possible resources that may help filers find their facility's geographic coordinates. (Please note that the Commission does not sponsor or promote these entities but mentions them only as potential resources.)

Google Maps

Navigate in Google Maps to your facility and zoom to street level. Right-click the map at the location of your facility and select "What's Here?" from the menu. The coordinates of the location at which you right-clicked will be displayed as [latitude],[longitude] in the search bar at the top of the page and in the web page's tab.

Bing Maps (by Microsoft)

Navigate in Bing Maps to your facility and zoom to street level. Right-click the map at the location of your facility and select "Center map here" from the menu. Then click the "Share" icon in the top right corner of the window. A short URL link will be shown. Click “Show full URL” to view the full link. A link will be displayed that contains the coordinates of the location at which you right-clicked. The coordinates are displayed as cp=[latitude]~[longitude].

Other Resources

You may also be able or you may to obtain your facility's geographic coordinates for example, using a GPS device (including many GPS-enabled cellular telephones or PDAs), the Google Earth application, a property survey, various engineering or construction drawings, a property deed, or a municipal or county map showing property lines.