Clarifying State authority to adopt renewable energy incentives

Section 210 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 824a–3) is amended by adding at the end the following: (o) Clarification of State authority To adopt renewable energy incentives (1) Definition of State-approved production incentive program In this subsection, the term State-approved production incentive program means a requirement imposed pursuant to State law, or by a State regulatory authority acting within its authority under State law, that an electric utility purchase renewable energy (as defined in section 609(a)) at a specified rate. (2) State authority to adopt renewable energy incentives Notwithstanding any other provision of this Act or the Federal Power Act (16 U.S.C. 791a et seq.), a State law or State regulatory authority may set the rates for a sale of electricity by a facility generating renewable energy (as defined in section 609(a)) pursuant to a State-approved production incentive program under which the facility voluntarily participates in the State-approved production incentive program..