Rule2026-10064
Renewable Energy Production Incentives
Primary source
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Published
May 20, 2026
Effective
October 1, 2026
Issuing agencies
Energy Department
Abstract
In 1992, Congress directed to be established a program to encourage production of electric energy from facilities owned by a State, a political subdivision of a State, or a non-profit electric cooperative using certain renewable energy resources. In response, the U.S. Department of Energy (DOE or the Department) implemented the Renewable Energy Production Incentive (REPI) program following the statute's requirements through a final rule in 1995. Incentive payments to eligible recipients were subject to the availability of appropriated funds; funds were last appropriated for this program in Fiscal Year 2009. This final rule is necessary to align the regulations with the underlying statute, which includes a payment sunset date at the end of Fiscal Year 2026. Specifically, the statute provides that no payment (incentive) may be made after September 30, 2026.
Full Text
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<title>Federal Register, Volume 91 Issue 97 (Wednesday, May 20, 2026)</title>
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[Federal Register Volume 91, Number 97 (Wednesday, May 20, 2026)]
[Rules and Regulations]
[Pages 29359-29362]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-10064]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 91, No. 97 / Wednesday, May 20, 2026 / Rules
and Regulations
[[Page 29359]]
DEPARTMENT OF ENERGY
10 CFR Part 451
[EERE-2025-OT-0037]
RIN 1904-AF76
Renewable Energy Production Incentives
AGENCY: Office of Critical Minerals and Energy Innovation, Department
of Energy.
ACTION: Final rule.
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SUMMARY: In 1992, Congress directed to be established a program to
encourage production of electric energy from facilities owned by a
State, a political subdivision of a State, or a non-profit electric
cooperative using certain renewable energy resources. In response, the
U.S. Department of Energy (DOE or the Department) implemented the
Renewable Energy Production Incentive (REPI) program following the
statute's requirements through a final rule in 1995. Incentive payments
to eligible recipients were subject to the availability of appropriated
funds; funds were last appropriated for this program in Fiscal Year
2009. This final rule is necessary to align the regulations with the
underlying statute, which includes a payment sunset date at the end of
Fiscal Year 2026. Specifically, the statute provides that no payment
(incentive) may be made after September 30, 2026.
DATES: This rule is effective on October 1, 2026.
FOR FURTHER INFORMATION CONTACT: Ms. Audrey Robertson, U.S. Department
of Energy, Office of Critical Minerals and Energy Innovation, 1000
Independence Avenue SW, Washington, DC 20585;
<a href="/cdn-cgi/l/email-protection#1e5b5b305d7173736b70777d7f6a7771706d5e7b7b307a717b30797168"><span class="__cf_email__" data-cfemail="5411117a173b3939213a3d3735203d3b3a271431317a303b317a333b22">[email protected]</span></a>; 202-586-5000.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. General Discussion
II. Responses to Comments
III. Conclusion
IV. Procedural Issues and Regulatory Review
A. Review Under Executive Order 12866
B. Review Under Additional Executive Orders and Presidential
Memoranda
C. Review Under the Regulatory Flexibility Act
D. Review Under the Paperwork Reduction Act
E. Review Under the National Environmental Policy Act of 1969
F. Review Under Executive Order 13132
G. Review Under Executive Order 12988
H. Review Under the Unfunded Mandates Reform Act of 1995
I. Review Under the Treasury and General Government
Appropriations Act, 1999
J. Review Under Executive Order 12630
K. Review Under Treasury and General Government Appropriations
Act, 2001
L. Review Under Executive Order 13211
M. Congressional Notification
V. Approval of the Office of the Secretary
I. General Discussion
On May 16, 2025, DOE published a notice of proposed rulemaking (May
2025 NPRM) to rescind the REPI program regulations at 10 CFR part 451
in preparation for the approaching sunset of the REPI program. 90 FR
20939. As described in the May 2025 NPRM, the REPI program was
authorized through section 1212 of the Energy Policy Act of 1992 to
encourage production of electric energy from facilities owned by a
State, a political subdivision of a State, or a non-profit electric
cooperative using certain renewable energy resources and implemented
through the procedures set in part 451. The May 2025 NPRM invited
comments and sought to provide stakeholders with advanced notice of the
Department's intent to rescind 10 CFR part 451 at the close of fiscal
year 2026. This final rule aligns with the statute's underlying sunset
provision, which once passed would render the regulations obsolete. 90
FR 20939, 20940.
II. Responses to Comments
DOE received two comments in response to the May 2025 NPRM.
Table II.1--List of Commenters From the May 2025 NPRM
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Comment No. in
Commenter Reference in this final rule the docket Commenter type
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Redge Johnson on behalf of the State of Utah................ 02 State Government.
State of Utah, Public Lands
Policy Coordinating Office.
Shannon Smith..................... Smith........................ 03 Individual.
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One individual commenter opposes ending renewable energy production
incentives, arguing that renewable energy reduces household energy
costs and improves air quality.\1\ The State of Utah Public Lands
Policy Coordinating Office recommends DOE retain the REPI program in
the instance that Congress extends the program beyond FY 2026 and
appropriates funds, noting that the State of Utah's State Energy Plan
establishes an ``any of the above'' energy plan that may be supported
by incentives.\2\
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\1\ Smith, No. 03.
\2\ State of Utah, No. 02.
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As a general response to the comments received, DOE notes that
Congress has not appropriated funding for the REPI program in over 15
years. Further, the President's Budget Request for Fiscal Year 2026
does not include funding for the REPI program. While commenters
identify benefits of this program, DOE finds that the regulations for
the REPI program are no longer necessary for supporting renewable
energy, given that other federal and state incentives may be available,
including tax credits, loan guarantees, and other grants. In addition,
weatherization, bill payment, and home energy efficiency assistance are
offered by many states and utilities, which may lower household energy
costs and improve indoor air quality. Additionally, if Congress were to
extend the REPI
[[Page 29360]]
program beyond FY 2026 as the State of Utah suggests, DOE would have
time to respond as needed because DOE's actions through this final rule
do not take effect until October 1, 2026.
III. Conclusion
For the reasons discussed in the preceding sections of this
document, DOE is finalizing this rule, as originally proposed, to
rescind the regulations for the Renewable Energy Production Incentive
Program after September 30, 2026. This final rule removes an inactive
and obsolete regulatory program.
IV. Procedural Issues and Regulatory Review
A. Review Under Executive Order 12866
Section 6(a) of Executive Order (`E.O.'') 12866, ``Regulatory
Planning and Review,'' requires agencies to submit ``significant
regulatory actions'' to the Office of Information and Regulatory
Affairs (``OIRA'') in the Office of Management and Budget for review.
OIRA has determined that this regulatory action does not constitute a
``significant regulatory action'' under section 3(f) of E.O. 12866.
Accordingly, this action was not submitted to OIRA for review under
E.O. 12866.
B. Review Under Additional Executive Orders and Presidential Memoranda
DOE has examined this final rule and has determined that it is
consistent with the policies and directives outlined in E.O. 14154
``Unleashing American Energy,'' E.O. 14192, ``Unleashing Prosperity
Through Deregulation,'' and Presidential Memorandum, ``Delivering
Emergency Price Relief for American Families and Defeating the Cost-of-
Living Crisis.'' While this final rule does not result in cost savings,
DOE considers this a deregulatory action for the purposes of E.O. 14192
because it reduces the burden on society by eliminating obsolete
regulations as discussed in this preamble. As such, DOE considers this
final rule as one of the 10 regulations identified for elimination as
required by E.O. 14192.
C. Review Under Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires
preparation of an initial regulatory flexibility analysis (``IRFA'')
and a final regulatory flexibility analysis (``FRFA'') for any rule
that by law must be proposed for public comment, unless the agency
certifies that the rule, if promulgated, will not have a significant
economic impact on a substantial number of small entities. As required
by E.O. 13272, ``Proper Consideration of Small Entities in Agency
Rulemaking,'' 67 FR 53461 (Aug. 16, 2002), DOE published procedures and
policies on February 19, 2003, to ensure that the potential impacts of
its rules on small entities are properly considered during the
rulemaking process. 68 FR 7990. DOE has made its procedures and
policies available on the Office of the General Counsel's website
(<a href="http://www.energy.gov/gc/office-general-counsel">www.energy.gov/gc/office-general-counsel</a>).
DOE reviewed this final rule under the provisions of the Regulatory
Flexibility Act and the policies and procedures published on February
19, 2003. DOE concludes that the impacts of the rule will not have a
``significant economic impact on a substantial number of small
entities,'' and that the preparation of an FRFA is not warranted. DOE
will transmit this certification and supporting statement of factual
basis to the Chief Counsel for Advocacy of the Small Business
Administration for review under 5 U.S.C. 605(b).
D. Review Under Paperwork Reduction Act
This final rule imposes no new information collection requirements
subject to the Paperwork Reduction Act and OMB clearance is not
required. (44 U.S.C. 3501 et seq.)
E. Review Under National Environmental Policy Act of 1969
Pursuant to the National Environmental Policy Act of 1969
(``NEPA''), DOE has analyzed this final withdrawal in accordance with
NEPA, as amended, and DOE's NEPA implementing regulations (set forth in
10 CFR part 1021), and DOE's NEPA implementing procedures (published
outside the Code of Federal Regulations on June 30, 2025 (Available at:
<a href="http://www.energy.gov/nepa/articles/doe-nepa-implementing-procedures-june-2025">www.energy.gov/nepa/articles/doe-nepa-implementing-procedures-june-2025</a>). On July 3, 2025, DOE published an interim final rule in the
Federal Register that revised 10 CFR part 1021 to contain only
administrative and routine actions excepted from NEPA review in
appendix A, its existing categorical exclusions in appendix B, related
requirements, and a provision for emergency circumstances. 90 FR 29676.
DOE notes that appendix A in 10 CFR part 1021 (formerly categorical
exclusions) are now administrative and routine actions that do not
require NEPA review.
DOE has determined that rescinding the procedures set out in part
10 CFR part 451 in preparation for the approaching sunset of the REPI
program is administrative and routine; as such, is not a major Federal
action significantly affecting the quality of the human environment
within the meaning of NEPA and no further environmental review is
needed.
F. Review Under Executive Order 13132
Executive Order 13132, ``Federalism,'' 64 FR 43255 (August 10,
1999), imposes certain requirements on Federal agencies formulating and
implementing policies or regulations that preempt State law or that
have federalism implications. The E.O. requires agencies to examine the
constitutional and statutory authority supporting any action that would
limit the policymaking discretion of the States and to carefully assess
the necessity for such actions. The E.O. also requires agencies to have
an accountable process to ensure meaningful and timely input by State
and local officials in the development of regulatory policies that have
federalism implications. On March 14, 2000, DOE published a statement
of policy describing the intergovernmental consultation process it will
follow in the development of such regulations. 65 FR 13735. DOE has
examined this final rule and has determined that it would not have a
substantial direct effect on the States, on the relationship between
the national government and the States, or on the distribution of power
and responsibilities among the various levels of government. Therefore,
no further action is required by E.O. 13132.
G. Review Under Executive Order 12988
With respect to the review of existing regulations and the
promulgation of new regulations, section 3(a) of Executive Order 12988,
``Civil Justice Reform,'' 61 FR 4729 (February 7, 1996), imposes on
Executive agencies the general duty to adhere to the following
requirements: (1) eliminate drafting errors and ambiguity; (2) write
regulations to minimize litigation; and (3) provide a clear legal
standard for affected conduct rather than a general standard and
promote simplification and burden reduction. With regard to the review
required by section 3(a), section 3(b) of E.O. 12988 specifically
requires that Executive agencies make every reasonable effort to ensure
that the regulation: (1) clearly specifies the preemptive effect, if
any; (2) clearly specifies any effect on existing Federal law or
regulation; (3) provides a clear legal standard for affected conduct
while promoting simplification and burden reduction; (4) specifies the
retroactive effect, if any; (5) adequately defines key terms; and (6)
addresses other important issues affecting clarity and general
draftsmanship under any
[[Page 29361]]
guidelines issued by the Attorney General. Section 3(c) of E.O. 12988
requires Executive agencies to review regulations in light of
applicable standards in section 3(a) and section 3(b) to determine
whether they are met or it is unreasonable to meet one or more of them.
DOE has completed the required review and determined that, to the
extent permitted by law, this final rule meets the relevant standards
of E.O. 12988.
H. Review Under Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (``UMRA'')
requires each Federal agency to assess the effects of Federal
regulatory actions on State, local, and Tribal governments and the
private sector. Public Law 104-4, sec. 201 (codified at 2 U.S.C. 1531).
For a regulatory action likely to result in a rule that may cause the
expenditure by State, local, and Tribal governments, in the aggregate,
or by the private sector of $100 million or more in any one year
(adjusted annually for inflation), section 202 of UMRA requires a
Federal agency to publish a written statement that estimates the
resulting costs, benefits, and other effects on the national economy.
(2 U.S.C. 1532(a), (b)) The UMRA also requires a Federal agency to
develop an effective process to permit timely input by elected officers
of State, local, and Tribal governments on a ``significant
intergovernmental mandate,'' and requires an agency plan for giving
notice and opportunity for timely input to potentially affected small
governments before establishing any requirements that might
significantly or uniquely affect them. On March 18, 1997, DOE published
a statement of policy on its process for intergovernmental consultation
under UMRA. 62 FR 12820. DOE's policy statement is also available at
<a href="http://www.energy.gov/sites/prod/files/gcprod/documents/umra_97.pdf">www.energy.gov/sites/prod/files/gcprod/documents/umra_97.pdf</a>.
DOE examined this final rule according to UMRA and its statement of
policy and determined that the final rule does not contain a Federal
intergovernmental mandate, nor is it expected to require expenditures
of $100 million or more in any one year by State, local, and Tribal
governments, in the aggregate, or by the private sector. As a result,
the analytical requirements of UMRA do not apply.
I. Review Under Treasury and General Government Appropriations Act,
1999
Section 654 of the Treasury and General Government Appropriations
Act, 1999 (Pub. L. 105-277) requires Federal agencies to issue a Family
Policymaking Assessment for any rule that may affect family well-being.
This final rule would not have any impact on the autonomy or integrity
of the family as an institution. Accordingly, DOE has concluded that it
is not necessary to prepare a Family Policymaking Assessment.
J. Review Under Executive Order 12630
Pursuant to E.O. 12630, ``Governmental Actions and Interference
with Constitutionally Protected Property Rights,'' 53 FR 8859 (March
18, 1988), DOE has determined that this final rule would not result in
any takings that might require compensation under the Fifth Amendment
to the U.S. Constitution.
K. Review Under Treasury and General Government Appropriations Act,
2001
Section 515 of the Treasury and General Government Appropriations
Act, 2001 (44 U.S.C. 3516 note) provides for Federal agencies to review
most disseminations of information to the public under information
quality guidelines established by each agency pursuant to general
guidelines issued by OMB. OMB's guidelines were published at 67 FR 8452
(Feb. 22, 2002), and DOE's guidelines were published at 67 FR 62446
(Oct. 7, 2002). Pursuant to OMB Memorandum M-19-15, Improving
Implementation of the Information Quality Act (April 24, 2019), DOE
published updated guidelines which are available at: <a href="http://www.energy.gov/cio/department-energy-information-quality-guidelines">www.energy.gov/cio/department-energy-information-quality-guidelines</a>. DOE has reviewed
this final rule under the OMB and DOE guidelines and has concluded that
it is consistent with applicable policies in those guidelines.
L. Review Under Executive Order 13211
Executive Order 13211, ``Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use,'' 66 FR 28355
(May 22, 2001), requires Federal agencies to prepare and submit to OIRA
at OMB, a Statement of Energy Effects for any significant energy
action. A ``significant energy action'' is defined as any action by an
agency that promulgated or is expected to lead to promulgation of a
final rule, and that: (1) is a significant regulatory action under E.O.
12866, or any successor order; and (2) is likely to have a significant
adverse effect on the supply, distribution, or use of energy, or (3) is
designated by the Administrator of OIRA as a significant energy action.
For any significant energy action, the agency must give a detailed
statement of any adverse effects on energy supply, distribution, or use
should the proposal be implemented, and of reasonable alternatives to
the action and their expected benefits on energy supply, distribution,
and use.
This final rule is not a significant regulatory action under E.O.
12866. Moreover, it would not have a significant adverse effect on the
supply, distribution, or use of energy, nor has it been designated as
such by the Administrator at OIRA. Accordingly, DOE has not prepared a
Statement of Energy Effects.
M. Congressional Notification
As required by 5 U.S.C. 801, DOE will submit to Congress a report
regarding the issuance of this final rule prior to the effective date
set forth at the outset of this rule. The report will state that it has
been determined that the rule is not a ``major rule'' as defined by 5
U.S.C. 801(2).
V. Approval of the Office of the Secretary
The Secretary of Energy has approved publication of final rule.
List of Subjects in 10 CFR Part 451
Building and facilities, Electric utilities, Energy conservation,
Grant programs--energy, Income taxes, and Reporting and recordkeeping
requirements.
Signing Authority
This document of the Department of Energy was signed on May 14,
2026, by Audrey Robertson, Assistant Secretary of Energy (EERE),
pursuant to delegated authority from the Secretary of Energy. That
document with the original signature and date is maintained by DOE. For
administrative purposes only, and in compliance with requirements of
the Office of the Federal Register, the undersigned DOE Federal
Register Liaison Officer has been authorized to sign and submit the
document in electronic format for publication, as an official document
of the Department of Energy. This administrative process in no way
alters the legal effect of this document upon publication in the
Federal Register.
Signed in Washington, DC, on May 18, 2026.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
Part 451 [Removed and Reserved]
0
For the reasons set forth in the preamble, under the authority of 42
U.S.C. 7101, et seq.; 2 U.S.C. 13317,
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DOE is removing and reserving 10 CFR part 451.
[FR Doc. 2026-10064 Filed 5-19-26; 8:45 am]
BILLING CODE 6450-01-P
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