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Renewable Energy Production Incentive (REPI). The REPI program was created by <br /> the Energy Policy Act of 1992 to authorize DOE to make direct payments to publicly- <br /> and cooperatively-owned electric utilities at the rate of 1.5 cent/kWh (indexed for <br /> inflation) for electricity generated from solar, wind, and certain geothermal and biomass <br /> electric projects. <br /> Congress implemented the program with two goals in mind: 1) to assist public power <br /> utilities in overcoming economic barriers to greater renewable energy use; and 2) to <br /> ensure equity between investor-owned utilities that receive energy tax credits and not-for- <br /> profit utilities that are unable to do so. <br /> If reformed and fully funded, the program would be closer to realizing its full potential. <br /> In recent years, funds have not kept pace with energy growth and this has resulted in <br /> many projects receiving only partial payments for energy produced. Reauthorization of <br /> REPI will promote the development of new renewable energy facilities by publicly- <br /> owned electric utilities. <br /> Representatives Bono (R-CA) and Markey(D-MA), and Senators Cantwell (D-WA) and <br /> Smith(R-OR) have introduced identical proposals (H.R. 671 and S. 421) to reauthorize <br /> and reform the Renewable Energy Production Incentive (REPI)program. This language <br /> was included in its entirety in the pending energy bill conference report. <br /> H.R. 671 and S. 421 would reauthorize and reform the REPI program for another 10 <br /> years and would direct the U.S. Department of Energy(DOE) to allocate 60 percent of <br /> appropriated funds to Tier 1 projects (wind, solar, geothermal and closed-loop biomass) <br /> and the remaining 40 percent to Tier 2 projects (landfill-gas-to-energy projects), during <br /> funding shortfall years. Since 1995, Tier 2 projects have received insufficient payments, <br /> while Tier I projects have received full payments. <br /> If REPI is not reauthorized through the passage of H.R. 6, Congress should pass a stand- <br /> alone REPI reauthorization bill. <br /> Minnesota Municipal Utilities Association <br /> February 2004 <br />