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Massachusetts Renewable Portfolio Standard Regulations

Massachusetts Renewable Portfolio Standard Regulations . Patricia D. Stanton Deputy Commissioner Massachusetts Division of Energy Resources. Renewable Portfolio Standard.

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Massachusetts Renewable Portfolio Standard Regulations

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  1. MassachusettsRenewable Portfolio StandardRegulations Patricia D. Stanton Deputy Commissioner Massachusetts Division of Energy Resources

  2. Renewable Portfolio Standard Starting with calendar year 2003, Retail Electricity Suppliers must comply with the Renewable Portfolio Standard by demonstrating that their generation portfolio(s) for sales to Massachusetts retail customers contain a minimum of New Renewables.

  3. Presentation • Brief Summary of Regulations • Eligibility • Applicability • Standard • Compliance • Non-compliance • Policy Issues

  4. Eligibility New Renewable Generation Unit • Fuel, Energy Resources and Technologies • Landfill gas • Wind • Solar • Ocean thermal, wave or tidal • Fuel cells utilizing renewable fuels • “Low-emission advanced technology” Biomass • Commercial Operation Date after 12/31/97 • Metering

  5. Eligibility • Vintage Generation Unit • Co-Firing • Small Generation • Imports

  6. Applicability Retail Electricity Suppliers (RES) • Not defined in the Act • Definition in the regulations • Competitive retail suppliers • Distribution companies • Exempts Municipal lighting plants (unless they open to retail competition)

  7. Standard Year% required 2003 1.0% 2004 - 09 +.5% per year for total in 2009 of 4.0% 2010 . . . +1.0% per year until sunset by DOER

  8. Compliance • Normal Compliance • Early Compliance • Banked Compliance • Alternative Compliance

  9. Non-compliance • Make up • Compliance plan • Publication of Notice of Non-compliance • Referral to DTE

  10. Policy Issues 1. Biomass Eligibility 2. Imports 3. Compliance Documentation 4. Renewable Energy Credit 5. Product Compliance 6. Early Compliance 7. Banked Compliance 8. Alternative Compliance 9. Existing Renewables Requirement

  11. 1. Biomass Eligibility • Fuel • Vintage • Air Permit • Technology • Gasification -- Categorically Eligible • Pile burn, stoker combustion -- Categorically Excluded • Other -- case by case review

  12. 2. Imports • New Renewables Generation Unit • “External Transaction Unit Contract for Energy 1 or 2, as defined in NEPOOL Market Rules Section 12.2.1(a)”

  13. 3. Compliance Documentation • Regulations are silent • Specifics will be in guidance • DOER will accept NEPOOL Generation Information System Certificates

  14. 4. Renewable Energy Credit • Section 332 Study www.state.ma.us/doer/rps • DOER recommends that RPS implementation not include the creation of a MA-REC • DOER does not seek penalty authority at this time

  15. 5. Product Compliance • Product compliance • Consistent with DTE and AG regulations

  16. 6. Early Compliance • RES can use 2002 attributes toward 2003 compliance requirement

  17. 7. Banked Compliance • RES possessing surplus attributes may apply them to future compliance obligations provided • RES is in compliance • 30% Limit • two year limit • Non-transferable

  18. 8. Alternative Compliance • Alternative Compliance Payment (ACP) • ACP = $50 Megawatt/hr in 2002 • ACP adjusted by Consumer Price Index • Funds managed by MTPC • separate accounting • purchase and retire RPS attributes • invest in construction of New Renewable Generation Units

  19. 9. Existing Renewables • Existing standard not mandated • DOER has authority & discretion • Supply greatly exceeds demand • under all scenarios • for many years • Reporting by RES • DOER will re-evaluate annually

  20. Public Comment Hearings Thursday Oct. 25 in Springfield Friday Oct. 26 in Boston Deadline for Written Comments Friday Nov. 2

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