The Clean Energy Buy-Back Act
U.S. Rep. Jay Inslee
Bill Summary
“The Clean Energy Buy-Back Act” is a Performance-Based Incentive (PBI) policy that guarantees interconnection to the grid, plus long-term power-purchasing contracts for new generators that produce electricity from renewable and clean energy sources. 
· The Federal Energy Regulatory Commission (FERC) would update model interconnection standards based on States with best practices. 
· States would follow updated standards and priority interconnection for new “clean energy facilities.” 
· Through an amendment to the Federal Power Act (and a repeal of PURPA section 210), at the request of any new clean energy (all renewable or efficient cogeneration) facility owner, this bill would require electric utilities in the U.S. to enter into 20-year fixed-rate power purchase agreements. 
· Uniform PBI rates would be set nationally by FERC at levels that would provide for a reasonable rate of return on investments for qualifying facility owners using the best available technologies. 
· PBI rates would be differentiated on the basis of the type of renewable energy technology, the size of the system, and the year the system was placed in service. 
· Utilities engaged in contracts with qualifying facility owners would be reimbursed for the full cost of their PBI power purchases, plus all costs associated with network upgrades associated with accommodating new qualified facilities. 
· All of the PBI costs incurred on utilities would be passed along to a privately-run national renewable energy corporation (RenewCorps). This private utility organization would, in turn, levy a system benefits charge payable by every electric utility customer in the U.S. 
· The FERC develops a System Benefits Charge system in consultation with States and non-regulated utilities. 
· Keeping the cost sharing mechanism outside of FERC, yet subject to FERC oversight, maintains long-term investment security by not subjecting the program to the unreliable process of annual Congressional appropriations. 
· Since PBI rates are set to provide for the full recovery of all costs, plus a reasonable rate of return on investment, by choosing to enter into a PBI power purchase agreement with a utility the owner of a clean facility would not be eligible for other federal tax incentives or State renewable energy credits (RECs). 
· Utilities would earn any associated RECs, to help them meet compliance with State renewable electricity standard requirements.