The PURPA Modernization Act Of 2017: Proposed Reforms And Potential Implications

On November 29, 2017, Rep. Tim Walberg (R-MI) introduced H.R. 4476, the PURPA Modernization Act of 2017 (the "Act"), which, if enacted, would significantly change the Public Utility Regulatory Policies Act of 1978 (PURPA). Rep. Walberg asserts that the Act would bring PURPA into the 21st century, foster competition, and "stop[] the gaming of a federal law at the expense of electricity customers to provide more affordable and reliable energy."¹ However, the proposed legislation also could substantially chill development of renewable energy projects in many markets.

Background

Congress enacted PURPA in response to the U.S. energy crisis of the early 1970s, seeking to promote conservation and increased use of domestic renewable energy resources.² Among its means for doing so was opening the traditional, vertically integrated electric utility monopoly model by requiring utilities, under certain circumstances, to purchase power from certain generating facilities—called