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Federal Energy Policy and Agency Outreach
To preserve the market for renewable energy, federal energy policy design needs to provide a mechanism to ensure that purchases of renewable energy continue to be meaningful. Additionally, federal agencies--both through procurement strategies and regulatory rulemakings--should support and recognize the role of voluntary renewable energy purchases in reducing greenhouse gas emissions and encouraging deployment of new renewable energy generation.
- Update on Current Rulemaking -
Released in late May 2011, the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) have a current rulemaking that will define financial ‘swaps.’ Environmental commodities—including Renewable Energy Certificates (RECs)—are part of the rulemaking, and the CFTC and SEC have specifically requested information on how RECs should be treated. Although the July 22nd comment deadline has passed, the Commissions are still accepting comments on a case-by-case basis. We strongly encourage renewable energy stakeholders to take advantage of this flexible deadline because our industry cannot afford to miss this opportunity to educate policymakers on the importance of renewable energy products.
REMA encourages renewable energy stakeholders to draft and submit their own comments to the CFTC and SEC. To assist others in drafting comments, REMA has provided its submitted comments and suggested high level comment points. The guide for submitting comments begins below. Please contact Joseph Seymour, REMA Policy Coordinator for Policy and Government Affairs, at jseymour@ttcorp.com or 202.640.6597 x302
Read REMA's submitted CFTC comments here >>
Suggested Points for Creating Your Own Comments
1. In recent years, the REC market has seen impressive growth rates indicating the rise in popularity of renewable energy for both the voluntary and compliance markets.
2. RECs fall within the exclusion from the definition of "swap" because their status as a "commodity" goes hand-in-hand with "physical settlement."
3. The transfer of RECs differs from a pure financial swap because it does not transfer price risk. The exclusive title and inherent rights to the REC are transferred from the seller to the buyer.
4. RECs qualify for the forward contract exclusion, according to the precedent previously set by the Commission regarding such qualifications. This application would exempt REC transactions that should be subject to the new swap regulations from the Dodd-Frank Act.
5. Stricter regulations of the REC market could discourage renewable energy investment.
6. Failure to exclude RECs from the definition of a swap could create substantial barriers to the renewable energy sector and severely hurt the REC market.
How to Submit Your Comments
CFTC Submission
Comments may be submitted to the CFTC in a few ways:
- On the Agency Web site, via its Comments Online process: http://comments.cftc.gov. The website provides online submission instructions;
- By mail, addressed to: David A. Stawick, Secretary, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, NW., Washington, DC 20581;
- Or, through the Federal eRulemaking Portal at http://www.regulations.gov. The website provides online submission instructions.
*Please only submit comments using one method. "Product Definitions and File No. S7–16–11," must be included in the subject line of all email submissions, and clearly indicated on written submissions. All submissions must be in English or accompanied by an English translation. Upon receipt, comments will be posted to http://www.cftc.gov. Note that this information will be available to the public.
SEC Submission
To submit comments electronically:
- Use the Commission's Internet comment form available at http://www.sec.gov/rules/proposed.shtml;
- Send an email to rule-comments@sec.gov, and include "File Number S7-16-11" in the subject line;
- Or, use the Federal eRulemaking Portal mentioned above.
To submit paper comments:
- Send three copies addressed to: Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. All submissions must refer to "File Number S7-16-11".
*Comments will be posted without change at http://www.sec.gov/rules/proposed.shtml.
For more information on the rulemakings
CFTC Contacts
- Julian E. Hammar, Assistant General Counsel at 202-418-5118 or jhammar@cftc.gov;
- Mark Fajfar, Assistant General Counsel at 202-418-6636 or mfajfar@cftc.gov;
- David E. Aron, Counsel, at 202-418-6621 or daron@cftc.gov
- Office of General Counsel, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, NW., Washington DC, 20581
SEC Contacts
- Matthew A. Daigler, Senior Special Counsel, at 202-551-5578;
- Cristie L. March, Attorney-Adviser, at 202-551-5574;
- Leah M. Drennan, Attorney-Adviser, at 202-551-5507;
- Tamara Brightwell, Senior Special Counsel to the Director, at 202–551–3500, Division of Corporation Finance, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–7010
Federal Energy Policy
Federal Agency Outreach
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