What role does the Federal Energy Regulatory Commission (FERC) play in distributed generation?

The Federal Energy Regulatory Commission (FERC) plays a vital role in the regulation of interstate electricity transmission, which is essential for the integration of distributed generation resources into the larger energy grid. FERC's responsibilities include ensuring that the electricity transmission system operates reliably and efficiently, which facilitates the connection and distribution of energy from various generation sources, including renewable and distributed generation facilities.

By regulating the interstate transfer of energy, FERC helps create a framework in which distributed generation sources can connect to the grid, thus promoting competition and supporting a diverse energy portfolio. This is crucial because distributed generation often relies on local resources, such as solar and wind, that may need to transmit their output over long distances.

In contrast, the other choices do not accurately reflect FERC's primary functions. Local energy production oversight is typically managed at the state level. Restricting renewable energy access goes against FERC's goals of promoting a fair and competitive electricity market, and while fossil fuel imports may be of some interest, it is not a primary focus of FERC's regulatory activities.