The Public Utility Regulatory Policies Act of 1978 (PURPA) was implemented to encourage, among other things,
- The conservation of electric energy, 
- Increased efficiency in the use of facilities and resources by electric utilities, 
- Equitable retail rates for electric consumers, 
- Expeditious development of hydroelectric potential at existing small dams, and 
- Conservation of natural gas while ensuring that rates to natural gas consumers are equitable. 
One of the ways PURPA set out to accomplish its goals was through the establishment of a new class of generating facilities which would receive special rate and regulatory treatment. Generating facilities in this group are known as qualifying facilities (QFs), and fall into two categories: qualifying small power production facilities and qualifying cogeneration facilities.
