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Qualifying facility (QF):
Independent power producers in the U.S. that are allowed under PURPA (Public Utility Regulatory Policy Act) to sell their electricity output to the local utility at avoided cost rates. To qualify, suppliers must produce their energy with a specified fuel type, either cogeneration or renewables, and meet certain ownership, size, and efficiency criteria established by the U.S. Federal Energy Regulatory Commission (FERC).
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