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RPS Massachusetts
(Last updated July 1st, 2004)
RENEWABLE PORTFOLIO STANDARDS—STATE
SUMMARY
I. POLICY
II. ADMINISTRATION
III. FINANCING
IV. CRITICAL ELEMENTS
V. POLICY/PROGRAM ASSESSMENT
VI. PUBLIC OUTREACH AND
EDUCATION
I. POLICY
Date Enacted
November 19, 1997
Effective Date
April 26, 2002
Time Period
2003–2009 renewable percentages specified, further increase
in renewable percent after 2009 subject to Division of Energy
Resources (DOER) review.
Extensions to Time Period
no termination of the RPS is specified
Applicable Laws, Orders, and Regulations
1997 Electric Utility Industry Restructuring Act (the Act),
225 CMR 14.00.
http://www.magnet.state.ma.us/legis/laws/seslaw97/sl970164.htm
Massachusetts Renewable Energy Portfolio Standard Regulations
225 CMR 14.00
http://www.state.ma.us/doer/rps/225cmr.pdf
Description
The renewable portfolio standard (RPS) was created by Massachusetts
electricity utility restructuring legislation. The RPS specifies
that 1% of electricity be generated from renewable sources in
2003, with the percentage increasing by 0.5% per year thereafter
through 2009. Thereafter, the annual percentage increase is
1% per year, until suspended by the DOER.
Program Name
Renewable Energy Portfolio Standard
Standard
Compliance Year
|
Cumulative Minimum Percent
Renewable Generation
|
2003
|
1.0
|
2004
|
1.5
|
2005
|
2.0
|
2006
|
2.5
|
2007
|
3.0
|
2008
|
3.5
|
2009
|
4.0
|
After 2009, the Minimum Standard shall increase by one percent
per Compliance Year until the Division of Energy Resources
(DOER) suspends the annual increase. At no time shall the
Minimum Standard decrease below the percentage in effect at
the time a suspension is implemented. Following a suspension,
the Division, at its discretion, may reinstitute annual one
percent increases. No later than December 31, 2007, the Division
shall establish the annual one percent increase, if any, in
the Minimum Standard for each Compliance Year from 2010 through
2014.
Eligibility Date
Eligible generation must have a Commercial Operation Date
after December 31, 1997, unless the Generation Unit receives
a Vintage Waiver.
Generation Limit
No plant size limit specified
Fuels/Technologies
·
Solar photovoltaic or solar thermal electric energy;
·
Wind energy;
·
Ocean thermal, wave or tidal energy;
·
Fuel cells using an Eligible New Renewable Fuel (hydrogen
used in fuel cells must be derived from an Eligible Biomass
Fuel or eligibly-generated electricity;
·
Landfill methane gas and anaerobic digester gas, provided
that such gas is collected and conveyed directly to the Generation
Unit without use of facilities used as common carriers of
natural gas;
·
Low-emission, advanced biomass power conversion technologies
using an Eligible Biomass Fuel. Pile burn, stoker combustion
or similar technologies shall not constitute an advanced biomass
conversion technology;
·
MSW: Waste-to-energy (WTE) that is a component of conventional
municipal solid waste plant technology in commercial use is
eligible, but is considered a mature technology and does not
qualify as a "new" renewable.
Eligible Biomass Fuel sources include:
Brush, stumps, lumber ends and trimmings, wood pallets, bark,
wood chips, shavings, slash and other clean wood that are
not mixed with other solid wastes; agricultural waste, food
material and vegetative material as may be defined by the
Department of Environmental Protection at 310 CMR 16.02; energy
crops; biogas; organic refuse-derived fuel that is collected
and managed separately from municipal solid waste; or neat
biodiesel and other neat liquid fuels that are derived from
such fuel sources.
Co-Firing
Co-firing of an Eligible Biomass Fuel is allowed under the
RPS providing the entire Generation Unit meets the requirements
of a low emission, advanced biomass power conversion technology
as defined in the legislation.
II. ADMINISTRATION
Administering Entities
Division of Energy Resources
Massachusetts Technology Collaborative
Type of Entity
State
Administrative Contacts
General Counsel
Massachusetts Division of Energy Resources
70 Franklin St., 7th Floor, Boston, MA 02110-1313
phone: 617-727-4732 fax: 617-727-0030 tty: 617-727-2404
e-mail: DOER.Energy@State.MA.US
III. FINANCING
Funding Level
No funding level is specified
Funding Source
Suppliers meet their annual renewable requirement by purchase
of renewable energy certificates on an open-market trading
system. Any Alternative Compliance Payments collected will
be used to advance renewable energy development in the state.
The Massachusetts Renewable Energy Trust was created by the
state's legislative restructuring of the electricity market
in 1997. SBC charges are expected to generate $20 million
in annual revenue for the Trust, with which loans and grants
will be dispersed by the MTC to reach a goal of green generation
bewteen 750 and 1,000 MW by 2009.
Cost Cap
A backstop payment of $50/MWh must be made by suppliers who
choose not to or are unable to purchase sufficient renewable
energy credits to meet the RPS requirements. These are known
as Alternative Compliance Payments. These monies will be used
to advance renewable energy development in the state.
Charge
Included in rate base
IV. CRITICAL ELEMENTS
Trading
Renewable generation certificates are traded through a market-priced,
bid-based power exchange system, the New England Power Pool
(NEPOOL) Generation Information System. See http://www.nepoolgis.com/
for more information.
Green Pricing
Renewable generation whose green attributes have been sold
under a green pricing program are ineligible for the RPS.
Certification
The New England Generation Information System (NE-GIS), which
includes a generation information database and certificate
system, operated by the New England Power Pool, accounts for
Generation Attributes of electrical energy consumed within
New England, including Massachusetts. NE-GIS Certificates
produced by the NE-GIS identify the relevant Generation Attributes
of each MWh accounted for in the NE-GIS.
Out-of-State
Any eligible renewable generation within the ISO-NE qualifies
for the RPS, with the exception of behind the meter (customer-sited)
renewables, which must be located within the state. The eligibility
of renewable energy imports from outside the ISO-NE region
is currently under discussion. These imports are eligible
in principle, but the details of transmission cost accounting
must be worked out.
Self-generation
Eligible customer sited renewables located in the state qualify
under the RPS.
Flexibility
Early Compliance
A Retail Electricity Supplier may use New Renewable Generation
Attributes produced during calendar year 2002 for compliance
in Compliance Year 2003, subject to certain limitations.
Banked Compliance
A Retail Electricity Supplier may use New Renewable Generation
Attributes produced in one Compliance Year for compliance
in either or both of the two subsequent Compliance Years,
subject to certain limitations.
Alternative Compliance
A Retail Electricity Supplier may discharge its obligations
to the RPS (in whole or in part) for any Compliance Year by
making an Alternative Compliance Payment (ACP). The ACP Rate
shall be $50 dollars per MWh for Compliance Year 2003. For
each subsequent Compliance Year, the Division shall establish
the ACP Rate based on the previous year's ACP Rate adjusted
up or down according to the previous year's Consumer Price
Index. DOER has announced that the adjusted ACP Rate for 2004
has been determined to be $51.41 per MWh. ACP funds will be used
to promote commercial development of New Renewable Generation Units.
Alternative compliance mechanism allows load-serving entities (LSEs)
to pay 5 cents per kWh to cover RPS requiremnets if they chose not to
purchase renewable energy certificates.
V. POLICY/PROGRAM ASSESSMENT
Reporting Requirement
The Retail Electricity Supplier annually shall file a Compliance
Filing with the DOER no later than the first day of July of
the subsequent Compliance Year. The DOER will produce an Annual
Renewable Energy Resource Report that summarizes information
submitted to the DOER by Retail Electric Suppliers in the
Annual Compliance Filing. Upon reasonable notice to a Retail
Electricity Supplier or New Renewable Generation Unit Owner
or Operator, the DOER may conduct audits, which may include
inspection and copying of records and/or site visits to a
New Renewable Generation Unit or a Retail Electricity Supplier’s
facilities.
A Retail Electricity Supplier that fails to meet RPS requirements
during a Compliance Year shall submit a plan for achieving
compliance for the subsequent three years. The DOER shall
refer its findings of non-compliance to the Department of
Telecommunications and Energy. A Retail Electricity Supplier
that fails to comply with the RPS may be subject to the Department
of Telecommunications and Energy Licensure Action(s) under
220 CMR 11.07 (4) (c) (1).
Assessing Entity
Division of Energy Resources
Report Date
not yet available
Report Name
not yet available
Status
As of July 2002 thirteen Statements of Qualification totaling
75.5 MW of eligible capacity have been approved by the DOER.
Approved Statements of Qualification can be viewed at http://www.state.ma.us/doer/rps/approved.htm.
An early compliance provision that allows 2002 renewable energy
certificates to be credited toward the 2003 requirement has
raised expectations that Massachusetts will meet its 2003
requirement of 1% electricity generation from renewable sources.
Cost Information
Although no public information is available on the cost of
renewable contracts, the Lawrence Berkeley National Laboratory
reports that Renewable Energy Credits serving the Massachusetts
market sell for 2.5-3 cents/kWh.
Assessment
Contact
Massachusetts Division of Energy Resources
70 Franklin St., 7th Floor, Boston, MA 02110-1313
phone: 617-727-4732 fax: 617-727-0030 tty: 617-727-2404
e-mail: DOER.Energy@State.MA.US
VI. PUBLIC OUTREACH AND EDUCATION
Outreach/Customer Education
Consumer Education Website
http://www.magnet.state.ma.us/thepower/
Massachusetts Renewable Energy Portfolio Standard Regulations
Website
http://www.state.ma.us/doer/rps/index.htm
Press Releases
http://www.state.ma.us/doer/pub_info/pub_info.htm
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