On the most aggravating concerns that energy designers need to face is the regulatory danger for any renewable resource job development. The United States Department of Defense have actually attended to the problem of state regulatory danger very conservatively because of the numerous requests for propositions that were released for renewable energy power purchase arrangements. The state utility policy of retail electric sales is quite made complex. As soon as the problems of state utility regulations are identified and understood, regulatory threats can become quantifiable and manageable.
Renewable resource designers typically deal with governing dangers. To address this concern the Department of Defense of the United States needs all requests for proposals to abide by all state energy laws.
Procurement Authority and Supremacy Clause
The Department of Defense has statutory authority to enter into arrangements for the procurement of renewable resource. The most valuable arrangement of the statutory authority is Area 2922a which gives the secretary of a military department to enter into PPAs with terms as long as Three Decade. The Department of Defense did not utilize this section to purchase electrical power for nearly Thirty Years. Nevertheless, in the recent years, it has begun using Area 2922a to acquire renewable energy to accomplish its mandates on renewable resource.
Area 8093 of the Continuing Permission Act of 1988 forbids Federal companies from making purchases of electricity in a manner that is inconsistent to the state law that governs the provisions of electrical energy service. The Department of Defense has 2 exceptions under Section 8093. One, the secretary of a military department can enter into an agreement under Area 2922a. Secondly, he might acquire electrical energy from any provider that has the suitable energy with an authorized franchise by the state or other service authorization.
How the DoD Has to Resolve State Energy Regulatory Threats
For the Department of Defense to optimize its procurement opportunities for renewable energy, it must consider its analysis of Area 8093 if it needlessly restricts its capability to contract for renewable energy when it purchases electricity as a product. Contracts under Area 2922a are exempted from Area 8093 and are contracts for unusual reliability searchings for that are not or will not be addressed by the local franchised energy. Nevertheless the concern of whether it’s offering equivalents are likewise exempted. If the Department of Defense opts to reevaluate its exception to Section 8093 and other federal territorial teachings, it will have higher opportunities to purchase renewable resource