PART 451—RENEWABLE ENERGY PRODUCTION INCENTIVES Link to an amendment published at 91 FR 29361, May 20, 2026. Authority: 42 U.S.C. 7101, et seq.; Source: 60 FR 36964, July 19, 1995, unless otherwise noted. § 451.1 Purpose and scope. (a) The provisions of this part cover the policies and procedures applicable to the determinations by the Department of Energy (DOE) to make incentive payments, under the authority of 42 U.S.C. 13317, for electric energy generated and sold by a qualified renewable energy facility owned by a State or political subdivision thereof; a not-for-profit electric cooperative; a public utility described in section 115 of the Internal Revenue Code of 1986; an Indian tribal government or subdivision thereof; or a Native corporation. (b) Determinations to make incentive payments under this part are not subject to the provisions of 10 CFR part 600 and such payments shall not be construed to be financial assistance. [60 FR 36964, July 19, 1995, as amended at 71 FR 46386, Aug. 14, 2006] § 451.2 Definitions. As used in this part— Biomass Closed-loop biomass Date of first use Deciding Official DOE Finance Office Fiscal year Indian tribal government Native corporation Net electric energy Not-for-profit electrical cooperative Ocean Renewable energy facility Renewable energy source (1) Heat from the burning of municipal solid waste; or (2) Heat from a dry steam geothermal reservoir which— (i) Has no mobile liquid in its natural state; (ii) Is a fluid composed of at least 95 percent water vapor; and (iii) Has an enthalpy for the total produced fluid greater than or equal to 2.791 megajoules per kilogram (1200 British thermal units per pound). State [60 FR 36964, July 19, 1995, as amended at 71 FR 46386, Aug. 14, 2006] § 451.3 Who may apply. Any owner, or operator with the written consent of the owner, but not both, of a qualified renewable energy facility, may apply for incentive payments for net electric energy generated from a renewable energy source and sold. § 451.4 What is a qualified renewable energy facility. In order to qualify for an incentive payment under this part, a renewable energy facility must meet the following qualifications— (a) Owner qualifications. (1) A State or a political subdivision of a State (or agency, authority, or instrumentality thereof); (2) A public utility described in section 115 of the Internal Revenue Code of 1986; (3) A not-for-profit electrical cooperative; (4) An Indian tribal government or subdivision thereof; or (5) A Native corporation. (b) What constitutes ownership. (c) Sales affecting interstate commerce. (d) Type of renewable energy sources. (e) Time of first use. (f) Conversion of non-qualified facilities. (1) A facility employing solar, wind ocean, geothermal or biomass sources must be refurbished during the allowed time of first use such that the fair market value of any previously used property does not exceed 20% of the facility's total value. (2) A facility not employing solar, wind ocean, geothermal or biomass sources must be converted in part or in whole to a qualified facility during the allowed time of first use. (g) Location. [60 FR 36964, July 19, 1995, as amended at 71 FR 46386, Aug. 14, 2006] § 451.5 Where and when to apply. (a) Pre-application and notification. (2) To assist DOE in its budget planning, the owner or operator of a qualified renewable energy facility is requested to provide notification at least 6 months in advance of when a facility is expected to be first used, providing projected information specified in § 451.8 (a) through (e). (b) Application. (2) For facilities whose date of first use occurred in the period October 1, 2003, through September 30, 2005, applications for incentive payments for electric energy generated and sold in fiscal year 2005 must be filed by August 31, 2006. (3) Failure to file an application in any fiscal year for payment for energy generated in the preceding fiscal year shall disqualify the owner or operator from eligibility for any incentive payment for energy generated in that preceding fiscal year. (c) Where. [60 FR 36964, July 19, 1995, as amended at 71 FR 46387, Aug. 14, 2006] § 451.6 Duration of incentive payments. Subject to the availability of appropriated funds, DOE shall make incentive payments under this part with respect to a qualified renewable energy facility for 10 consecutive fiscal years. Such period shall begin with the fiscal year in which application for payment for electricity generated by the facility is first made and the facility is determined by DOE to be eligible for receipt of an incentive payment. The period for payment under this program ends with fiscal year 2026. [60 FR 36964, July 19, 1995, as amended at 71 FR 46387, Aug. 14, 2006] § 451.7 Metering requirements. The net electric energy generated and sold (kilowatt-hours) by the owner or operator of a qualified renewable energy facility must be measured by a standard metering device that— (a) Meets generally accepted industry standards; (b) Is maintained in proper working order according to the instructions of its manufacturer; and (c) Is calibrated according to generally accepted industry standards. § 451.8 Application content requirements. An application for an incentive payment under this part must be signed by an authorized executive official and shall provide the following information— (a) A statement indicating that the applicant is the owner of the facility or is the operator of the facility and has the written consent of an authorized executive official of the owner to file an application; (b) The name of the facility or other official designation; (c) The location and address of the facility and type of renewable energy source; (d) The name, address, and telephone number of a point of contact to respond to questions or requests for additional information; (e) A clear statement of how the application satisfies each and every part of the eligibility criteria under § 451.4; (f) A statement of the annual and monthly metered net electric energy generated and sold during the prior fiscal year by the qualified renewable energy facility, measured in kilowatt-hours, for which an incentive payment is requested; (g) In the case of a qualified renewable energy facility which generates electric energy using a fossil fuel, nuclear energy, or other non-qualified energy source in addition to using a renewable energy source, a statement of the net electric energy generated, measured in kilowatt-hours, attributable to the renewable energy source, including a calculation showing the total monthly and annual kilowatt-hours generated and sold during the fiscal year multiplied by a fraction consisting of the heat input, as measured in appropriate energy units, received by the working fluid from the renewable energy sources divided by the heat input, as measured in the same energy units, received by the working fluid from all energy sources; (h) The total amount of electric energy for which payment is requested, including the net electric energy generated in the prior fiscal year, as determined according to paragraph (f) or (g) of this section; (i) Copies of permit authorizations if the date of first use is based on permit approvals and this is the initial application; (j) Instructions for payment by electronic funds transfer; (k) A statement agreeing to retain records for a period of three (3) years which substantiate the annual and monthly metered number of kilowatt-hours generated and sold, and to provide access to, or copies of, such records within 30 days of a written request by DOE; and (l) A statement signed by an authorized executive official certifying that the information contained in the application is accurate. (m) If a not-for-profit electric cooperative, a statement certifying that no claim for tax credit has been made for the same electricity for which incentive payments are requested. [60 FR 36964, July 19, 1995, as amended at 71 FR 46387, Aug. 14, 2006] § 451.9 Procedures for processing applications. (a) Supplemental information. (b) Audits. (c) DOE determinations. (1) Eligibility of the applicant for receipt of an incentive payment, based on the criteria for eligibility specified in this part; (2) The number of kilowatt-hours to be used in calculating a potential incentive payment, based on the net electric energy generated from a qualified renewable energy source at the qualified renewable energy facility and sold during the prior fiscal year; (3) The number of kilowatt-hours to be used in calculating a potential additional incentive payment, based on the total quantity of accrued energy generated during prior fiscal years; (4) The amounts represented by 60 percent of available funds and by 40 percent of available funds; and (5) Whether justification exists for altering the 60:40 payment ratio specified in paragraph (e) of this section. If DOE intends to modify the 60:40 ratio, the Department shall notify Congress, setting forth reasons for such change. (d) Calculating payments. (e) Insufficient funds. (1) Calculate potential incentive payments, if necessary on a pro rata (2) Calculate potential incentive payments, if necessary on a pro rata (3) If the amounts calculated in paragraph (e)(1) and (2) of this section result in one owner group with insufficient funds and one with excess funds, allocate excess funds to the owner group with insufficient funds and calculate additional incentive payments, on a pro rata (4) If potential payments calculated in paragraphs (e)(1), (2), and (3) of this section do not exceed available funding, allocate 60% of remaining funds to paragraph (e)(1) recipients and 40% to paragraph (e)(2) recipients and calculate additional incentive payments, if necessary on a pro rata (5) If the amounts calculated in paragraph (e)(4) of this section result in one owner group with insufficient funds and one with excess funds, allocate excess funds to the owner group with insufficient funds and calculate additional incentive payments, on a pro rata (6) Notify Congress if potential payments resulting from paragraphs (e)(3) or (5) of this section above will result in alteration of the 60:40 payment ratio; (7) Make incentive payments based on the sum of the amounts determined in paragraphs (e)(1) through (5) of this section for each applicant; (8) Treat the number of kilowatt-hours for which an incentive payment is not made as a result of insufficient funds as accrued energy for which future incentive payment may be made; and (9) Maintain a record of each applicant's accrued energy. (f) Notice to applicant. (1) Approving the application as eligible for payment and forwarding a copy to the DOE Finance Office with a request to pay; (2) Setting forth the calculation of the approved amount of the incentive payment; and (3) Stating the amount of accrued energy, measured in kilowatt-hours, for each qualified renewable energy facility, if any, and the energy source for same. (g) Disqualification. [60 FR 36964, July 19, 1995, as amended at 71 FR 46387, Aug. 14, 2006] § 451.10 Administrative appeals. (a) In order to exhaust administrative remedies, an applicant who receives a notice denying an application in whole or in part shall appeal, on or before 45 days from date of the notice issued by the DOE Deciding Official, to the Office of Hearings and Appeals, 1000 Independence Avenue, S.W., Washington, D.C. 20585, in accordance with the procedures set forth in subpart C of 10 CFR part 1003. (b) If an applicant does not appeal under paragraph (a) of this section, the determination of the DOE Deciding Official shall become final for DOE and judicially unreviewable. (c) If an applicant appeals on a timely basis under paragraph (a) of this section, the decision and order of the Office of Hearings and Appeals shall be final for DOE. (d) If the Office of Hearings and Appeals orders an incentive payment, the DOE Deciding Official shall send a copy of such order to the DOE Finance Office with a request to pay.