Question

Difficulty: MediumAnalytical Decision Making and Criteria Selection

The State Renewable Energy Commission evaluates applications for the 'Solar Micro-Grid Subsidy'. As of August 2026, an applicant cooperative must:
(1) be registered for at least 3 years.
(2) propose a solar plant capacity of at least 50 kW.
(3) contribute at least 20% of the project cost upfront.
(4) have no history of defaulting on state loans.

Exceptions:
(I) If an applicant fulfills all criteria EXCEPT (1), but proposes a capacity of 100 kW or more, the application is referred to the Director.
(II) If an applicant fulfills all criteria EXCEPT (3), but is located in a 'Notified Tribal District', the application is referred to the Welfare Board.

Match the following applicant cooperatives to their correct administrative decision based on the information provided.

Candidate Profiles:
- Horizon Co-op: Registered in January 2021; proposes a 75 kW plant; contributes 25% upfront; no default history.
- Apex Energy: Registered in January 2025; proposes a 125 kW plant; contributes 20% upfront; no default history.
- Green Ridge: Registered in January 2018; proposes a 60 kW plant; contributes 10% upfront; located in a Notified Tribal District; no default history.
- Sunrise Power: Registered in January 2015; proposes a 40 kW plant; contributes 25% upfront; no default history.

  • Horizon Co-opApprove Subsidy
  • Apex EnergyRefer to Director
  • Green RidgeRefer to Welfare Board
  • Sunrise PowerReject Application

Answer

Horizon Co-op -> Approve Subsidy; Apex Energy -> Refer to Director; Green Ridge -> Refer to Welfare Board; Sunrise Power -> Reject Application
By systematically applying the rules, each candidate matches a single distinct outcome based on whether they meet all criteria, trigger a specific exception, or fail a criterion without exception coverage.

Step-by-Step Solution

1
Evaluate Horizon Co-op against all criteria.
Meets all criteria.
Registered in 2021 (>3 years as of 2026), 75 kW (>=50), 25% upfront (>=20%), no defaults. No exceptions needed.
2
Evaluate Apex Energy against all criteria and exceptions.
Fails criterion 1, but triggers Exception I.
Registered in 2025 (only 1.5 years ago, failing the 3-year rule). However, the proposed capacity is 125 kW (>=100 kW), which requires a referral to the Director.
3
Evaluate Green Ridge against all criteria and exceptions.
Fails criterion 3, but triggers Exception II.
Contributes 10% (fails the >=20% rule). However, they are located in a Notified Tribal District, which routes the application to the Welfare Board.
4
Evaluate Sunrise Power against all criteria and exceptions.
Fails criterion 2, with no applicable exception.
Proposes a 40 kW capacity (fails the >=50 kW rule). Since there is no exception clause for failing the capacity requirement, the application must be rejected.

Key Concept

Applying complex administrative rules with nested exceptions to distinct case profiles to determine precise outcomes.
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