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What is a Qualifying Facility

A Qualifying Facility (“QF”) is a generating facility that (i) meets certain ownership, operating, and efficiency criteria established by the Federal Energy Regulatory Commission (“FERC”) pursuant to the Public Utility Regulatory Policies Act of 1978 (“PURPA”) and part 292 of the FERC’s Regulations (18C.F.R. Part 292), and (ii) has obtained certification of its QF status from FERC, unless otherwise exempted under 18 C.F.R. § 292.203(d). FERC has jurisdiction over determining whether a generating facility qualifies as a Qualifying Facility.  

Types of Qualifying Facilities

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Small Power Production Facility

A small power production facility is a generating facility sized 80 MW or less whose primary energy source is renewable (hydro, wind, or solar), biomass, waste, or geothermal.

Cogeneration facility

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.