Second Circuit Upholds Connecticut's Renewables Solicitation Program And RPS Against Preemption, Dormant Commerce Clause Challenges

On June 28, 2017, the United States Court of Appeals for the Second Circuit ("Second Circuit") affirmed a district court's dismissal of challenges to Connecticut's renewable energy solicitation program and Renewable Portfolio Standard ("RPS") law.  The Second Circuit rejected arguments from the plaintiff-appellant, Allco Finance Limited ("Allco"), that the solicitation program was preempted by the Federal Power Act ("FPA") and the Public Utility Regulatory Policies Act of 1978 ("PURPA") and that the RPS law unduly burdens interstate commerce, in violation of the "dormant commerce clause."

The case originated in the United States District Court for the District of Columbia where Allco challenged a 2013 state law authorizing the Connecticut Department of Energy and Environmental Protection ("DEEP") to solicit proposals for renewable energy, select winners of the solicitation process, and "direct [Connecticut's utilities] to enter into" power purchase agreements with