U.S. regulation of the energy industry takes place at the Federal, State, and local levels of government. For example, currently there are little or no national standards for installing or interconnecting distributed generation; Federal guidance is in the form of air and environmental quality regulations. State and municipal agencies, as well as local utilities, create specific rules for siting and permitting distributed generation that must be met before the units can be installed and interconnected to the local grid.

Local officials review many aspects of the technologies before approving them for installation. Some issues under consideration include safety, exhaust temperatures and venting, gas pressures, building structures, noise, fuel storage, space limitations, vibration and environmental impacts. In many cases the evaluation criteria differs between cities and counties within the same state. Thus, manufacturers and their customers must conduct extensive research before fulfilling orders and installing the equipment. This can cause significant delays in project schedules, and makes it difficult to fulfill immediate power needs.

Implementing consistent rules and processes within each state and nationwide will streamline the integration of distributed generation in our nation's energy infrastructure.