225 Mass. Reg. 14.05

Current through Register 1523, June 7, 2024

Section 14.05 - Eligibility Criteria for RPS Class I, Solar Carve-out Renewable Generation Units, and Solar Carve-out II Renewable Generation Units

(1)Eligibility Criteria. A Generation Unit may qualify as an RPS Class I Renewable Generation Unit, a Solar Carve-out Renewable Generation Unit, or Solar Carve-out II Renewable Generation Unit subject to the limitations in 225 CMR 14.05.

(a)Fuels, Energy Resources and Technologies. The Generation Unit shall use one or more of the fuels, energy resources and/or technologies listed in 225 CMR 14.05(1)(a)1. through 9.

1. Solar photovoltaic or solar thermal electric energy.

2. Wind energy.

3. Ocean thermal, wave or tidal energy.

4. Fuel cells using an Eligible RPS Class I Renewable Fuel.

5. Landfill methane gas, provided that such gas is either conveyed directly to the Generation Unit without the use of facilities used as common carriers of natural gas, or transported to a Generation Unit within the ISO-NE Control Area or an adjacent Control Area via a common carrier of natural gas, in which instance the gas would be subject to the following provisions:

a. the gas is produced entirely within the ISO-NE Control Area or an adjacent Control Area;

b. documentation is provided, satisfactory to the Department, regarding the gas transportation and related contracts; and

c. demonstration is provided, satisfactory to the Department, that the gas can be physically delivered to the Generation Unit.

6.Hydroelectric. A Generation Unit that uses Hydroelectric Energy may qualify as an RPS Class I Generation Unit, subject to the limitations in 225 CMR 14.05(1)(a)6.

a. The Generation Unit has a nameplate capacity up to 30 megawatts, or increased capacity installed or efficiency improvements implemented after December 31, 1997, the aggregate of which increased capacity or efficiency improvements does not exceed 30 megawatts.

b. The Generation Unit does not involve any dam or water diversion structure constructed after December 31, 1997, or pumped storage of water.

c. The Generation Unit does not generate Marine or Hydrokinetic Energy.

d. The Generation Unit meets appropriate and site-specific standards that address adequate and healthy river flows, water quality standards, fish passage and protection measures and mitigation and enhancement opportunities in the Impacted Watershed, as determined by the Department in consultation with Relevant Hydroelectric Agencies. The Generation Unit shall demonstrate compliance with such standards by submitting the documentation required in either 225 CMR 14.05(1)(a)6.d.i or ii.

i. LIHI Certification of the Generation Unit; except that in either of the two circumstances provided in 225 CMR 14.05(1)(a)6.d.i, the Department may request further information from the applicant and the Relevant Hydroelectric Agencies as part of its review of the applicant's Statement of Qualification Application. The Department shall notify the applicant of any such input from a Relevant Hydroelectric Agency not later than 30 days after receiving such input and shall provide the applicant an opportunity to respond to the Department not later than 30 days after the applicant's receipt of such notice from the Department.

(i) If a Relevant Hydroelectric Agency identified an environmental concern and a proposed remedy to LIHI during the LIHI certification process, and such concern was not addressed in the LIHI certification to the satisfaction of the Agency, and the Agency consulted with the Owner or Operator of the Generation Unit; or

(ii) If, between issuance of the LIHI certification and the Department's determination of the Generation Unit's eligibility, a Relevant Hydroelectric Agency submits to the Department evidence of a significant environmental problem not previously known by such Agency, after consulting with the Owner or Operator of the Generation Unit.

ii. A denial of certification from LIHI specifying the reasons the certification was denied and the applicant's proposed rationale for why the project should nevertheless receive a Statement of Qualification. In this instance, the Department shall notify and seek input from the Relevant Hydroelectric Agencies, which shall have 30 days from the date of their receipt of such notification to provide feedback to the Department. The Owner or Operator of the Generation Unit shall be notified of any such input and shall have 30 days from receipt of such notice to respond to the satisfaction of the Department as to why its Application should be approved. The Department thereafter shall make finding of whether the Generation Unit meets appropriate environmental safeguards despite the lack of LIHI certification.

e. The Owner or Operator of the Generation Unit must serve notice to all Relevant Hydroelectric Agencies of its application for LIHI certification. The Owner or Operator of the Generation Unit also must serve notice to all Relevant Hydroelectric Agencies, and provide opportunity for comment within 30 days of such notice, with regard to its submission of a Statement of Qualification Application. Notice of such service must be provided to the Department.

f. If LIHI fails to act to certify or deny certification within 180 days from the date of submission of the Generation Unit's application to LIHI, the Owner or Operator shall file notice of such event with the Department. The Department shall review the federal, state or provincial permits for the Generation Unit and any submissions to LIHI by Relevant Hydroelectric Agencies, and shall make a final determination as to whether the Generation Unit meets environmental standards specified in 225 CMR 14.05(1)(a)6.d.

g. If LIHI is unable to review for certification a Generation Unit that is located in a Control Area adjacent to the ISO-NE Control Area and outside the United States of America, the Owner or Operator of such Generation Unit may petition the Department for certification using the LIHI standards by an independent third-party acceptable to the Department.

7.Low-emission, Advanced Biomass Power Conversion Technologies Using an Eligible Biomass Fuel. A Generation Unit may qualify as an RPS Class I Renewable Generation Unit, provided it uses an Eligible Biomass Fuel, subject to the limitations in 225 CMR 14.05(1)(a)7.

a. Pursuant to Sections 33 through 36 and Section 88 of Chapter 179 of the Acts of 2022, starting January 1, 2022, Eligible Biomass Woody Fuel Generation Units shall no longer be eligible to submit a Statement of Qualification Application under 225 CMR 14.06.

b. A Generation Unit utilizing an Eligible Biomass Fuel, that is required to obtain an air permit in its jurisdiction, must possess a Valid Air Permit.

c. The Department shall set forth in Guidelines low-emission eligibility criteria which will become effective on their date of issuance. Any emission eligibility criteria in subsequently revised regulations or Guidelines shall become effective 12 months from their date of issuance. A Generation Unit utilizing an Eligible Biomass Fuel that is not a solid fuel, such as Eligible Liquid Biofuel, or does not use a steam boiler, shall follow the low-emission eligibility criteria process described in the Departments' Guideline on Eligible Biomass Fuel for Renewable Generation Units. In the case of a Generation Unit for whose size, type, or fuel the Department's Guidelines do not provide applicable emission limits, the Department will determine appropriate limits in consultation with the MassDEP.

A Generation Unit utilizing an Eligible Biomass Woody Fuel or Manufactured Biomass Fuel with a Commercial Operation Date after December 31, 2021 or a Generation Unit utilizing an Eligible Biomass Woody Fuel or Manufactured Biomass Fuel that has 5% or more of its fuel sourced from Forest Derived Residues, Forest Derived Thinnings, and Forest Salvage must achieve an overall efficiency of at least 60% on a quarterly basis. A Generation Unit with a Commercial Operation Date on or before December 31, 2021 and utilizing an Eligible Biomass Woody Fuel or Manufactured Biomass Fuel that has over 95% of its fuel sourced from Non-forest Derived Residues on a quarterly basis shall have no applicable overall efficiency requirement. The procedure for calculating whether the Generation Unit meets the 60% overall efficiency requirement can be found in the Department's Guideline on Overall Efficiency and Greenhouse Gas Analysis.

d. A Generation Unit utilizing an Eligible Biogas Fuel, Eligible Biomass Woody Fuel, Eligible Liquid Biofuel or Manufactured Biomass Fuel shall reduce lifecycle greenhouse gas emissions, over a 20-year lifecycle, by at least 50% compared to the operation of a new combined cycle natural gas electric generating facility using the most efficient commercially available technology as of the date of the Statement of Qualification Application for the portion of electricity delivered by the Generation Unit and, if applicable, the operation of the fossil fuel fired thermal energy unit being displaced, or in the case of new Useful Thermal Energy, a gas-fired thermal energy unit using the most efficient commercially available technology as of the date of Statement of Qualification Application for the portion of the Useful Thermal Energy delivered by the Generation Unit. The procedure for calculating whether a Generation Unit meets the 50% reduction can be found in the Department's Guideline on Overall Efficiency and Greenhouse Gas Analysis.

A Generation Unit that does not achieve a lifecycle greenhouse gas emissions reduction of at least 50% over a 20-year lifecycle in a particular calendar quarter of the Compliance Year, pursuant to 225 CMR 14.05(1)(a)7.d., shall not be eligible to report RPS Class I Renewable Generation Attributes to the NEPOOL GIS for that Calendar Quarter.

e. In the case of a Generation Unit that uses Eligible Biogas Fuel, the Eligible Biogas Fuel may be either conveyed directly to the Generation Unit without the use of facilities used as common carriers of natural gas, or transported to a Generation Unit within the ISO-NE Control Area or an adjacent Control Area via a common carrier of natural gas, in which instance the gas would be subject to the following provisions:

i. the gas is produced entirely within the ISO-NE Control Area or an adjacent Control Area;

ii. documentation is provided, satisfactory to the Department, regarding the gas transportation and related contracts; and

iii. demonstration is provided, satisfactory to the Department, that the gas can be physically delivered to the Generation Unit.

f. A Generation Unit using Eligible Biomass Woody Fuel or Manufactured Biomass Fuel with a Commercial Operation Date after December 31, 2021 that is either:

i. sited in an environmental justice population; or

ii. sited within five miles of an environmental justice population, shall not qualify as an RPS Class I Renewable Generation Unit; provided, however, that the Secretary of the Executive Office of Energy and Environmental Affairs shall determine environmental justice populations in accordance with law.

g. In the case of a Generation Unit that uses anaerobic digester gas or another biogas that is an Eligible Biomass Fuel, such gas may be either conveyed directly to the Generation Unit without the use of facilities used as common carriers of natural gas, or transported to a Generation Unit within the ISO-NE Control Area or an adjacent Control Area via a common carrier of natural gas, in which instance the gas would be subject to the following provisions:

i. the gas is produced entirely within the ISO-NE Control Area or an adjacent Control Area;

ii. documentation is provided, satisfactory to the Department, regarding the gas transportation and related contracts; and

iii. demonstration is provided, satisfactory to the Department, that the gas can be physically delivered to the Generation Unit.

8. Marine or hydrokinetic energy.

9. Geothermal energy.

(b)Commercial Operation Date. The Commercial Operation Date shall be after December 31, 1997, unless the Generation Unit received a Statement of Qualification with a Vintage Waiver prior to January 1, 2009. In the case of a Solar Carve-out Renewable Generation Unit, the Commercial Operation Date shall be after December 31, 2007. In the case of a Solar Carve-out II Renewable Generation Unit, the Commercial Operation Date shall be after December 31, 2012.

(c)Metering. The electrical energy output from a Generation Unit shall be verified by the ISO-NE or by an independent verification system or person participating in the NEPOOL GIS accounting system as an independent Third Party Meter Reader, as defined in Rule 2.5(j) of the NEPOOL GIS Operating Rules, or any successor rule, and approved by the Department.

(d)Location. The Generation Unit location is subject to the limitations in 225 CMR 14.05(1)(d).

1.Off-grid Generation. If the Generation Unit produces Off-grid Generation, such Generation Unit must be located in Massachusetts.

2.Behind-the-meter Generation. If the Generation Unit is wired to the electrical system on the End-use Customer's side of a retail electric meter, such Generation Unit must be located within the ISO-NE Control Area.

(e)Capacity Obligation. The Generation Unit's generating capacity is subject to the obligations in CMR 14.05(1)(e).

1. The amount of the generation capacity of the Generation Unit whose electrical energy output is claimed as RPS Class I Renewable Generation shall not be committed to any Control Area other than the ISO-NE Control Area unless such Generation Unit has entered into a Capacity Obligation in another Control Area before the start of the first available compliance year for the ISO-NE Forward Capacity Market, in which case this subsection shall apply upon the expiration of that Capacity Obligation. However, if the Generation Unit executed a contract for the sale of RPS Class I Renewable Generation Attributes or RPS Class I Renewable Generation, or both, before January 1, 2009, for a term of at least two years, the contract price of which relied on the receipt of capacity payments from a Control Area adjacent to the ISO-NE Control Area, and the Generation Unit can demonstrate such reliance to the satisfaction of the Department, this requirement shall not take effect for that Generation Unit until the expiration of that contract.

2. The Generation Unit Owner or Operator of a Generation Unit that is not an Intermittent Generation Unit shall commit to the ISO-NE Control Area the amount of the capacity of that Unit claimed as RPS Class I Renewable Generation by submitting by the applicable deadline a show of intent for the ISO-NE Forward Capacity Auction that is the earliest available for the Unit after the Owner or Operator has submitted a Statement of Qualification Application unless the Owner or Operator can provide to the Department documentation of its prior commitment to the ISO-NE Control Area of such capacity. The Owner or Operator of any Unit that cannot demonstrate such prior commitment must also clear the Forward Capacity Auction for which it has qualified, even if it must participate as a price taker. The requirements of 225 CMR 14.05(1)(e)2. do not apply to Generation Units for which the Department has received an administratively complete Statement of Qualification Application prior to July 2, 2008.

3. An RPS Class I Renewable Generation Unit that was deemed unqualified by the ISO-NE for participation in the ISO-NE Forward Capacity Market for technical reasons may commit capacity to another Control Area and may receive GIS Certificates for the energy sold into the ISO-NE Control Area, subject to a determination by the Department.

4. An RPS Class I Renewable Generation Unit or a Solar Carve-out Renewable Generation Unit that has registered with the relevant distribution company as a net metering facility pursuant to 220 CMR 18.00: Net Metering, shall be exempt from the capacity obligation under 225 CMR 14.05(1)(e) while the facility is net metering.

(2)Special Provisions for Incremental Generation. An increase in electrical energy output of a Generation Unit with a Commercial Operation Date on or before December 31, 1997, may qualify as RPS Class I Renewable Generation, subject to the limitations in 225 CMR 14.05(2).

(a) The Generation Unit must meet the eligibility requirements of 225 CMR 14.05 with the exception of 225 CMR 14.05(1)(b).

(b) The portion of the total electrical energy output of the Generation Unit that qualifies as RPS Class I Renewable Generation in a given calendar year shall be the portion attributable to incremental new generating capacity or efficiency improvements installed or implemented after December 31, 1997, using equipment that was not utilized in any Renewable Generation Unit within the ISO-NE Control Area or within Control Areas adjacent thereto on or before December 31, 1997.

(c) The portion of the electrical energy output of a Generation Unit that does not qualify as RPS Class I Renewable Generation under the provisions of 225 CMR 14.05(2)(c) or under a Statement of Qualification granted to a Vintage Generation Unit prior to January 1, 2009, may qualify as RPS Class II Renewable Generation if it applies for and meets the eligibility standards of the RPS Class II Regulations set forth in 225 CMR 15.00: Renewable Energy Portfolio Standard - Class II.

(d) The portion of electrical energy output of a Generation Unit that replaces the output of an RPS Class I Renewable Generation Unit qualified under 225 CMR 14.05(1)(a)5. at the same location, or proximate thereto, and utilizes the fuel resource of that location, shall not be qualified as Incremental Generation, unless a Generation Unit meets the requirements of 225 CMR 14.05(7)(d).

(3)Co-firing and Blended Fuel Waiver. All or a portion of the electrical energy output of a Generation Unit that uses ineligible fuel in conjunction with an Eligible RPS Class I Renewable Fuel, whether by co-firing such fuels or by using a Blended Fuel, may qualify as RPS Class I Renewable Generation, provided the Generation Unit meets the eligibility requirements of 225 CMR 14.05, subject to the limitations in 225 CMR 14.05(3).

(a) The portion of the total electrical energy output that qualifies as RPS Class I Renewable Generation in a given time period shall be equal to the ratio of the net heat content of the Eligible RPS Class I Renewable Fuel consumed to the net heat content of all fuel consumed in that time period.

If using a Blended Fuel of which the eligible portion is an Eligible Biomass Fuel or if co-firing an ineligible fuel with an Eligible Biomass Fuel, the entire Generation Unit must meet the requirements set forth in 225 CMR 14.05(1)(a)7.

(b) If using an Eligible Biomass Fuel, the Generation Unit must demonstrate to the satisfaction of the Department that the emission rates for the entire Generation Unit are consistent with rates prescribed by the MassDEP for comparably fueled Generation Units in the Commonwealth. The Department may require the Generation Unit Owner or Operator to retain at its own expense a third-party consultant deemed satisfactory to the Department, to provide the Department and the MassDEP with assistance in this determination.

(c) The Generation Unit must provide with its Statement of Qualification Application a fuel supply plan that specifies each and every fuel that it intends to use, in what relative proportions either in co-firing or in a Blended Fuel, and with what individual input heat values. Such plan shall include the procedures by which the Unit will document to the satisfaction of the Department its compliance with the plan.

(d) The provisions of 225 CMR 14.05(3) shall not apply to the incidental use of ineligible fuels for the purpose of cold starting a Generation Unit that otherwise exclusively uses an Eligible RPS Class I Renewable Fuel.

(4)Special Provisions for a Solar Carve-out Generation Unit. All references to kW or MW in 225 CMR 14.05(4) shall be measured on a nameplate capacity basis in direct current (DC).

(a) The Solar Carve-out Renewable Generation Unit must use solar photovoltaic technology, be used on-site, located in the Commonwealth of Massachusetts, and be interconnected with the electric grid. On-site use includes any new or existing load located at the site of the Generation Unit including any parasitic load that may result from the installation of the Generation Unit, and that is wired to receive a portion of the electrical energy output from the Generation Unit before the balance of such output passes through the Generation Unit's metered interconnection onto the electric grid. The maximum capacity of a Generation Unit shall be 6 MW, as measured on a nameplate capacity basis in direct current and shall be determined based on the total capacity located on a single parcel of land. For any parcel of land for which a Solar Carve-out Generation Unit has submitted a Statement of Qualification Application, if its current boundaries are the result of a subdivision recorded after January 1, 2010, the Owner or Operator shall make a demonstration to the Department that the subdivision was not for the purpose of eligibility in the Solar Carve-out Program. If the Department is not satisfied by such showing, the 6 MW limit shall apply to the metes and bounds of the parcel as recorded prior to the subdivision. Any subsequent additional solar photovoltaic Generation Units that would result in excess of 6 MW of capacity installed on the same parcel of land and meeting all other requirements under 225 CMR 14.00 may qualify only for RPS Class I Renewable Generation Attributes.

(b) If the construction and installation of a Generation Unit was funded through a program administered prior to January 1, 2010, by the Massachusetts Renewable Energy Trust, or if the Generation Unit was funded substantially from American Recovery and Reinvestment Act, P.L. 111-5(ARRA) for the installation of that Generation Unit, the Generation Unit shall not be eligible to participate in the Solar Carve-out. Substantial shall mean for this purpose more than 67% of total installed cost. Notwithstanding 225 CMR 14.05(4)(b), if the substantial funding that a Generation Unit receives is from a payment in lieu of tax credit under § 1603 of ARRA, the Generation Unit shall be eligible for Solar Carve-out Renewable Generation Attributes.

(c) Any entity that owns Solar Carve-out Renewable Generation Attributes is eligible to make deposits into the Solar Credit Clearinghouse Auction provided the Attributes deposited into the Auction were generated during the Opt-in Term specified in the Statement of Qualification of the Generation Unit. The Department or its agent shall maintain an account, known as Solar Credit Clearinghouse Auction Account on the NEPOOL GIS into which Solar Carve-out Renewable Generation Attributes may be deposited. The Solar Credit Clearinghouse Auction Account shall be available for deposit of Attributes only from May 16^th through June 15^th.

(d) An entity that opts to deposit Solar Carve-out Generation Renewable Attributes into the Solar Credit Clearinghouse Auction Account shall be assessed, at the completion of the auction, a usage fee of 5% of the auction price for each such Attribute deposited into Solar Credit Clearinghouse Auction Account. This usage fee shall be deposited into the Alternative Compliance Payment fund under 225 CMR 14.08(3). This usage fee will not apply to Attributes that remain unsold following the final round of the Solar Credit Clearinghouse Auction as provided in 225 CMR 14.05(4)(i).

(e) Those Attributes deposited into Solar Credit Clearinghouse Auction Account shall then be retired and reissued by NEPOOL GIS as Re-minted Auction Account Attributes. These Attributes shall be eligible in either of the two subsequent Compliance Years from the year in which they were generated to meet obligations under the Massachusetts Solar Carve-out Minimum Standard. The Department or its agent shall conduct an auction for those Attributes. Any entity wishing to purchase Re-minted Auction Account Attributes may participate and enter a bid.

Each bid shall be for the number of Re-minted Auction Account Attributes that the bidder wishes to purchase at a fixed price of $300 per Re-minted Auction Account Attribute.

(f) The Solar Credit Clearinghouse Auction shall be held not later than July 31^st. If the Auction clears, meaning that the total number of Re-minted Auction Account Attributes bid for in the auction was equal to or more than the number of Solar Carve-out Renewable Generation Attributes deposited, then the total amount of deposited Attributes will be distributed to the bidders in a prorated manner such that each bidder receives the same percentage of their bid volume. If the auction does not clear, meaning that the total number of Re-minted Auction Account Attributes bid for in the auction was less than the number of Solar Carve-out Renewable Generation Attributes deposited, the Department or its agent shall void the auction.

(g) If the auction under 225 CMR 14.05(4)(f) does not clear, the Department shall conduct a new auction within three Business Days, in which any Attributes purchased shall be eligible in any of the three subsequent Compliance Years from the year in which they were generated to meet obligations under the Massachusetts Solar Carve-out Minimum Standard. If the auction does not clear, the Department or its agent shall void the auction.

(h) If the auction under 225 CMR 14.05(4)(g) does not clear, the Department or its agent shall conduct another auction within three Business Days, at which point the Attributes shall be eligible in any of the three subsequent Compliance Years from the year in which they were generated to meet obligations under the Massachusetts Solar Carve-out Minimum Standard. Prior to this Auction, the Department shall also recalculate the Massachusetts Solar Carve-out Minimum Standard under 225 CMR 14.07(2).

(i) If the auction under 225 CMR 14.05(4)(h) does not clear, the Re-minted Auction Account Attributes deposited in the Solar Credit Clearinghouse Auction Account shall be allocated to the bidders in a prorated manner so that an equal percentage of Re-minted Auction Account Attributes are allocated from each Generation Unit that deposited Solar Carve-out Renewable Generation Attributes. The remaining Re-minted Auction Account Attributes shall be returned to the entity that made the deposit. These Attributes shall be eligible in any of the three subsequent Compliance Years from the year in which they were generated to meet obligations under the Massachusetts Solar Carve-out Minimum Standard.

(j) Re-minted Auction Account Attributes may not be placed into the Solar Credit Clearinghouse Auction Account in subsequent years.

(k) Within two weeks from June 28, 2013, the Department shall establish and provide on its website a list of all projects that are within the 400 MW capacity limit and the set of Generation Units that are outside of the 400 MW capacity limit. The Department shall provide Statement of Qualifications to all Generation Units with Statement of Qualification Applications as follows, provided such Generation Units meet all other eligibility criterion of 225 CMR 14.00.

1. A Generation Unit greater than 100 kW that has received a Statement of Qualification or has submitted a Statement of Qualification Application that is within the 400 MW capacity limit shall be provided a Statement of Qualification only if the Generation Unit meets the project construction timelines prescribed in 225 CMR 14.05(4)(k)4. Notwithstanding 225 CMR 14.06(4), the RPS Effective Date of the Generation Unit shall be no later than December 31, 2013, regardless of when the Unit's Commercial Operation Date occurs.

2. A Generation Unit greater than 100 kW that has submitted a Statement of Qualification Application that is outside the 400 MW capacity limit shall be provided a Statement of Qualification only if the Generation Unit is authorized to interconnect by its local Distribution Company on or before June 28, 2013 or has received an interconnection service agreement from its local Distribution Company that is fully executed by both the interconnecting customer and the Distribution Company and dated on or before June 7, 2013, and meets the project construction timelines prescribed in 225 CMR 14.05(4)(k)4. The Generation Unit shall have one week after June 28, 2013 to provide the Department with a copy of the executed Interconnection Service Agreement or its Statement of Qualification Application will be rejected. Notwithstanding 225 CMR 14.06(4), the RPS Effective Date of the Generation Unit shall be no later than December 31, 2013, regardless of when the Generation Unit's Commercial Operation Date occurs.

3. A Generation Unit that has a rated capacity equal to or less than 100 kW, or has qualified as a Community Solar Project by the MassCEC under its Commonwealth Solar II Rebate Program, which has received its authorization to interconnect or permission to operate from its local Distribution Company by the effective date of a new solar carve-out program established by the Department, or by June 30, 2014, whichever is earlier, and has submitted a Statement of Qualification Application shall be provided a Statement of Qualification. Notwithstanding 225 CMR 14.06(4), the RPS Effective Date of the Generation Unit shall be no later than December 31, 2013, regardless of when the Generation Unit's Commercial Operation Date occurs. For the purpose of 225 CMR 14.05(4)(k)3., the Generation Unit's capacity shall be measured as the total capacity of qualified Solar Carve-out Renewable Generation on a single parcel of land or on a roof of a single building, whichever is less.

4. A Generation Unit greater than 100 kW must meet the following construction timelines to receive a Statement of Qualification.

a. A Generation Unit must receive its authorization to interconnect or permission to operate from its local Distribution Company on or before December 31, 2013.

b. A Generation Unit that has not received an authorization to interconnect or permission to operate on or before December 31, 2013 will be provided an extension to June 30, 2014 only if it can demonstrate to the satisfaction of the Department that the project has expended at least 50% of its total construction costs by December 31, 2013. A Generation Unit provided such an extension must receive its authorization to interconnect or permission to operate on or before June 30, 2014.

c. If a Generation Unit can demonstrate to the Department's satisfaction that either of these two timelines have been met, but that interconnection depends only on the receipt of notice of authorization to interconnect or its permission to operate, and such receipt is delayed only by the local Distribution Company or due to remaining steps required by other parties for safe and reliable interconnection, then the Generation Unit will be provided an extension until the authorization to interconnect or permission to operate is received.

5. Any Solar Carve-out Renewable Generation Unit that has submitted a Statement of Qualification Application or received a Statement of Qualification as of June 28, 2013 will not be eligible to generate Solar Carve-out Renewable Generation Attributes for incremental new generating capacity that is in excess of the capacity that was applied for in its Statement of Qualification Application.

(5) Special Provisions for a Generation Unit Located in a Control Area Adjacent to the ISO-NE Control Area. The portion of the total electrical energy output of an RPS Class I Renewable Generation Unit located in a Control Area adjacent to the ISO-NE Control Area that qualifies as RPS Class I Renewable Generation shall meet the requirements in Rule 2.7(c) and all other relevant sections of the NEPOOL GIS Operating Rules, and the requirements in 225 CMR 14.05(5).

(a) The Generation Unit Owner or Operator shall provide documentation, satisfactory to the Department that the RPS Class I Renewable Generation Attributes have not otherwise been, nor will be, sold, retired, claimed, used or represented as part of electrical energy output or sales, or used to satisfy obligations in jurisdictions other than Massachusetts.

(b) The Generation Unit Owner or Operator must provide an attestation in a form to be provided by the Department that it will not itself or through any affiliate or other contracted party, knowingly engage in the process of importing RPS Class I Renewable Generation into the ISO-NE Control Area for the creation of RPS Class I Renewable GIS Certificates, and then exporting that energy or a similar quantity of other energy out of the ISO-NE Control Area during the same hour.

(c) The quantity of electrical energy output from an RPS Class I Renewable Generation Unit outside the ISO-NE Control Area that can qualify as RPS Class I Renewable Generation at the NEPOOL GIS during each hour is limited to the lesser of the RPS Class I Renewable Generation actually produced by the Generation Unit or the RPS Class I Renewable Generation actually scheduled and delivered into the ISO-NE Control Area.

(6)Special Provisions for Aggregations. An Aggregation of Generation Units that are located behind the customer meter or that are Off-grid Generation Units, each of which could independently meet the relevant requirements of 225 CMR 14.05, may receive a single Statement of Qualification and be treated as a single RPS Class I Renewable Generation Unit, Solar Carve-out Renewable Generation Unit, or Solar Carve-out II Renewable Generation Unit under the criteria and procedures in 225 CMR 14.05(6).

(a) Each Generation Unit in such Aggregation must be located within the same state and use the same fuel, energy resource and technology as all other Generation Units in the Aggregation. In the instance of an Aggregation that includes a Solar Carve-out Renewable Generation Unit, the Aggregation shall only include Generation Units that are eligible for the Solar Carve-out under 225 CMR 14.05(4). In the instance of an Aggregation that includes a Solar Carve-out II Renewable Generation Unit, the Aggregation shall only include Generation Units that are eligible for the Solar Carve-out II under 225 CMR 14.05(9).

(b) Each of the Owners or Operators of Generation Units within the Aggregation must enter into an agreement with a person or entity that serves as the Authorized Agent for the Aggregation in all dealings with the Department and with the NEPOOL GIS, and such agreement must include procedures by which the electrical energy output of each Generation Unit shall be monitored and reported to the NEPOOL GIS.

(c) The Authorized Agent of the Aggregation must establish and maintain a Generator account at the NEPOOL GIS under the NEPOOL GIS Operating Rules, including all provisions for Non-NEPOOL Generator Representatives, as that term is defined in Rule 2.1(a)(vi).

(d) The electrical energy output of each of the Generation Units in the Aggregation must be individually monitored and recorded, and it must be reported to the NEPOOL GIS, by an independent Third Party Meter Reader as defined in Rule 2.5(j) of the NEPOOL GIS Operating Rules, and approved by the Department.

(7)Special Provisions for Relocated, Repowered, and Replacement Generation Units. The Department may provide a Statement of Qualification to a Generation Unit that meets one of the following categories and criteria, as well as all other relevant provisions of 225 CMR 14.05:

(a)Relocated RPS Class I Renewable Generation Unit. A Generation Unit whose Power Conversion Technology was used on or before December 31, 1997, to generate electrical energy outside of both the ISO-NE Control Area and Control Areas adjacent thereto, and that is relocated into one of said Control Areas after December 31, 1997, provided that any components of the Power Conversion Technology that were not used outside of said Control Areas were first used in a Generation Unit after December 31, 1997.

(b)Repowered RPS Class I Renewable Generation Unit. A Generation Unit that did not utilize an Eligible RPS Class I Renewable Fuel at any time on or before December 31, 1997.

(c)Replacement RPS Class I Renewable Generation Unit. A Generation Unit that replaces a mothballed or decommissioned Generation Unit that had operated on the same site on or before December 31, 1997, provided the entire Power Conversion Technology of the existing Generation Unit is replaced with equipment manufactured after December 31, 1997.

(d)Replacement Generation Unit for Vintage Generation Unit Destroyed or Subject of Government Taking. All of the electrical output of a Generation Unit that replaces the output of an RPS Class I Vintage Generation Unit originally qualified as New Renewable Generation under 225 CMR 14.05(1)(a)5. at the same location, or proximate thereto, and utilizes the fuel resource of that location, may qualify as RPS Class I Renewable Generation without a Historical Generation Rate if the Owner or Operator can demonstrate to the satisfaction of the Department that the Unit has been has been rendered functionally or financially inoperable by (A) an act of God, (B) an act of war, (C) an act of terrorism or (D) an act of eminent domain.

(e)Relocated or Replacement Solar Carve-out Renewable Generation Units.

1.Relocated Solar Carve-out Renewable Generation Unit. A solar photovoltaic Generation Unit whose Power Conversion Technology was used on or before December 31, 2007, to generate electrical energy outside of the Commonwealth of Massachusetts, and that is relocated into the Commonwealth after December 31, 2007 provided that any components of the Power Conversion Technology that were not used outside of the Commonwealth were first used in a Generation Unit after December 31, 2007.

2.Replacement Solar Carve-out Renewable Generation Unit. A solar photovoltaic Generation Unit that replaces a mothballed or decommissioned solar photovoltaic Generation Unit that had operated on the same site on or before December 31, 2007, subject to the following limitations:

a. The entire Power Conversion Technology of the existing Unit is replaced with equipment that was manufactured after December 31, 2007, or was not part of a Generation Unit meeting the description of a Unit in 225 CMR 14.05(4)(b); and

b. The existing Unit has not been in commercial operation for at least five years prior to the submission of the Statement of Qualification Application.

(f)Relocated or Replacement Solar Carve-out II Renewable Generation Units.

1.Relocated Solar Carve-out II Renewable Generation Unit. A solar photovoltaic Generation Unit whose Power Conversion Technology was used on or before December 31, 2012, to generate electrical energy outside of the Commonwealth of Massachusetts, and that is interconnected with the electric grid in the Commonwealth after December 31, 2012, provided that no components of the Power Conversion Technology were used in a Generation Unit located in the Commonwealth prior to December 31, 2012. No components of the Power Conversion Technology from a Generation Unit qualified as a Solar Carve-out Generation Unit shall be eligible to qualify as part of a Solar Carve-out II Renewable Generation Unit.

2.Replacement Solar Carve-out II Renewable Generation Unit. A solar photovoltaic Generation Unit that replaces a inactive or decommissioned solar photovoltaic Generation Unit that had operated on the same site on or before December 31, 2012, subject to the following limitations:

a. The entire Power Conversion Technology of the existing Unit is replaced with equipment that was manufactured after December 31, 2012, or was not part of a Generation Unit meeting the description of a Unit in 225 CMR 14.05(9)(b); and

b. The existing Unit has been inactive for at least five years prior to the submission of the Statement of Qualification Application.

(8)Special Provisions for Generation Units Using Eligible Biomass Woody Fuels or Manufactured Biomass Fuels. An Owner, Operator, or Authorized Agent of a Generation Unit that uses an Eligible Biomass Woody Fuel or a Manufactured Biomass Fuel must meet the following provisions.

(a)Sustainable Forest Management. Forest Derived Residues and Forest Derived Thinnings shall only be sourced from forests meeting Sustainable Forestry Management practices, as independently verified through the attestation of a licensed forester, certified forester, or independent certification.

(b)Overall Efficiency. A Generation Unit utilizing Eligible Biomass Woody Fuel or Manufactured Biomass Fuel that does not comply with the overall efficiency requirements in 225 CMR 14.05(1)(a)7.c. shall be subject the following:

1. A Generation Unit utilizing an Eligible Biomass Woody Fuel or Manufactured Biomass Fuel with a Commercial Operation Date after December 31, 2021 or a Generation Unit utilizing Eligible Biomass Woody Fuel or Manufactured Biomass Fuel that has 5% or more of its fuel sourced from Forest Derived Residues, Forest Derived Thinnings, and Forest Salvage and does not achieve an overall efficiency of at least 60% in a particular calendar quarter of the Compliance Year, pursuant to 225 CMR 14.05(1)(a)7.c., shall not be eligible to report RPS Class I Renewable Generation Attributes to the NEPOOL GIS for that calendar quarter.

2. A Generation Unit utilizing Eligible Biomass Woody Fuel or Manufactured Biomass Fuel with a Commercial Operation Date on or before December 31, 2021 and that has over 95% of its fuel sourced from Non-Forest Derived Residues in a particular calendar quarter of the Compliance Year, shall only be eligible to receive RPS Class I Renewable Generation Attributes at NEPOOL GIS in a proportion equal to the percentage of fuel sourced from Non-Forest Derived Residues for that calendar quarter.

(c)Reporting Requirements for Generation Units Using Eligible Biomass Woody Fuel or Manufactured Biomass Fuel. An Owner, Operator, or Authorized Agent of a Generation Unit using Eligible Biomass Woody Fuel or Manufactured Biomass Fuel shall provide to the Department on a quarterly basis the Biomass Fuel Report as prescribed in the Department's Guideline on Eligible Biomass Fuel for Renewable Generation Units.

(d)Verification of Eligible Biomass Woody Fuel. In order to verify the use of Eligible Biomass Woody Fuel, an RPS Class I Renewable Generation Unit utilizing Eligible Biomass Woody Fuel shall report the following to the Department on a quarterly basis in a manner outlined in the Department's Guideline on Eligible Biomass Fuel for Renewable Generation Units:

1. Supplier of the fuel;

2. Amount of fuel delivered; and

3. Date of delivery.

(e)Biomass Fuel Certificate. The tonnage of all Eligible Biomass Woody Fuel or Manufactured Biomass Fuel reported in the Quarterly Biomass Fuel Report shall be documented by ownership of the Biomass Fuel Certificates. The tonnage input for Eligible Biomass Fuel noted on the Biomass Fuel Certificate shall equal or be greater than the tonnage of Eligible Biomass Fuel consumed at the Generation Unit. For Manufactured Biomass Fuel, the Biomass Fuel Certificates shall be for the required tonnage of Eligible Biomass Woody Fuel necessary for the production of the delivered volume of Manufactured Biomass Fuel. The Biomass Fuel Certificates shall be originated, procured, and transacted in accordance with the Guideline on Eligible Biomass Fuel for Renewable Generation Units.

(f) Forest Impact Assessment. Every five years, beginning in 2020, the Department, in coordination with DCR, will conduct an assessment of the impacts on Massachusetts and regional forests resulting from biomass fuel removals. The five-year assessment shall also consider information on the Eligible Biomass Woody Fuel utilized by qualified Generation Units and the extent to which such fuels come from the categories of Non-forest Derived Residues, Forest Derived Residues, Forest Derived Thinnings, and Forest Salvage. If the Department concludes its findings would likely result in significant impacts on long term forest sustainability, the Department shall consult with the MassDEP, and DCR on any changes that may be required by the Department, MassDEP, or DCR to maintain long term forest sustainability and climate change mitigation.

(9)Special Provisions for a Solar Carve-out II Renewable Generation Unit. All references to kW or MW in 225 CMR 14.05(9) shall be measured on a nameplate capacity basis in direct current (DC).

(a) The Solar Carve-out II Renewable Generation Unit must use solar photovoltaic technology on-site and be interconnected with the electric grid in the Commonwealth of Massachusetts. On-site use includes any new or existing load located at the site of the Solar Carve-out II Renewable Generation Unit, including any parasitic load that may result from the installation and operation of the Solar Carve-out II Renewable Generation Unit, and that is wired to receive a portion of the electrical energy output from the Solar Carve-out II Renewable Generation Unit before the balance of such output passes through the Solar Carve-out II Renewable Generation Unit's metered interconnection onto the electric grid. The maximum capacity of a Solar Carve-out II Renewable Generation Unit shall be six MW and shall be determined based on the total capacity of Solar Carve-out Renewable Generation Units and Solar Carve-out II Renewable Generation Units located on a single parcel of land. For any parcel of land for which a Solar Carve-out II Renewable Generation Unit has submitted a Statement of Qualification Application, if its current boundaries are the result of a subdivision recorded after January 1, 2010, the Owner or Operator shall demonstrate to the Department that the subdivision was not for the purpose of obtaining eligibility as a Solar Carve-out II Renewable Generation Unit. If the Owner or Operator fails to make such a showing to the Department, the six MW limit shall apply to the metes and bounds of the parcel as recorded prior to the subdivision. Any solar photovoltaic Generation Units that would result in excess of six MW of capacity installed on the same parcel of land and meeting all other requirements under 225 CMR 14.00 may qualify only for RPS Class I Renewable Generation Attributes.

(b) A Solar Carve-out II Renewable Generation Unit must have a Commercial Operation Date on or after January 1, 2013 and must not be qualified as a Solar Carve-out Renewable Generation Unit under provisions in 225 CMR 14.05(4).

(c) Any entity that owns Solar Carve-out II Renewable Attributes generated by a Solar Carve-Out II Renewable Generation Unit is eligible to make deposits into the Solar Credit Clearinghouse Auction-II. The Department or its agent shall maintain a Solar Credit Clearinghouse Auction-II Account on the NEPOOL GIS into which eligible Solar Carve-out II Renewable Generation Attributes may be deposited. The Solar Credit Clearinghouse Auction-II Account shall be available for deposit of Attributes only from May 16^th through June 15^th.

(d) An entity that opts to deposit Solar Carve-out II Renewable Attributes into the Solar Credit Clearinghouse Auction-II Account shall be assessed, at the completion of the auction, a usage fee of 5% of the auction price for each such Attribute deposited into Solar Credit Clearinghouse Auction-II Account. This usage fee shall be deposited into the Alternative Compliance Payment fund under 225 CMR 14.08(3). This usage fee will not apply to Attributes that remain unsold following the final round of the Solar Credit Clearinghouse Auction-II as provided in 225 CMR 14.05(9)(i).

(e) Those Solar Carve-out II Renewable Generation Attributes deposited into the Solar Credit Clearinghouse Auction-II Account shall then be retired and reissued by NEPOOL GIS as re-minted auction-II account Generation Attributes. These re-minted auction-II account Generation Attributes shall be eligible for compliance in either of the two subsequent Compliance Years from the year in which they were generated to meet obligations under the Massachusetts Solar Carve-out II Minimum Standard. The Department or its agent shall conduct an auction for those re-minted auction-II account Generation Attributes. Any entity wishing to purchase re-minted auction-II account Generation Attributes may participate and enter a bid. Each bid shall be for the number of re-minted auction-II account Generation Attributes that the bidder wishes to purchase at a fixed price. The fixed price shall vary each Compliance Year according to the following schedule.

Compliance Year	Solar Credit Clearinghouse Auction-II Fixed Price, $ per Generation Attribute
2014	$300
2015	$300
2016	$300
2017	$285
2018	$271
2019	$257
2020	$244
2021	$232
2022	$221
2023	$210
2024	$199
2025	$189
2026	$180
2027 and after	$171

(f) The Solar Credit Clearinghouse Auction-II shall be held not later than July 31^st each year as necessary. If this Auction clears, meaning that the total number of re-minted auction-II account Generation Attributes bid for in the auction was equal to or more than the number of Solar Carve-out II Renewable Generation Attributes deposited, then the total amount of re-minted auction-II account Generation Attributes will be distributed to the bidders in a prorated manner such that each bidder receives the same percentage of their bid volume.

(g) If the auction under 225 CMR 14.05(9)(f) does not clear, meaning that the total number of re-minted auction-II account Generation Attributes bid for in the auction was less than the number of Solar Carve-out II Renewable Generation Attributes deposited, the Department or its agent shall void the auction. The Department shall then conduct a second auction within three Business Days of the first auction under 225 CMR 14.05(9)(f), in which any re-minted auction-II Generation Attributes purchased shall be eligible in any of the three subsequent Compliance Years from the year in which they were generated to meet obligations under the Massachusetts Solar Carve-out II Minimum Standard.

(h) If the second auction under 225 CMR 14.05(9)(g) does not clear, the Department or its agent shall void the auction. The Department shall then conduct a third auction within three Business Days of the second auction under 225 CMR 14.05(9)(g), at which point the re-minted auction-II Generation Attributes shall be eligible in any of the three subsequent Compliance Years from the year in which they were generated to meet obligations under the Massachusetts Solar Carve-out II Minimum Standard. Prior to the third auction under 225 CMR 14.05(9)(h), the Department shall also recalculate the Massachusetts Solar Carve-out II Minimum Standard under 225 CMR 14.07(3).

(i) If the third auction under 225 CMR 14.05(9)(h) does not clear, the re-minted auction-II account Generation Attributes deposited in the Solar Credit Clearinghouse Auction-II Account shall be allocated to the bidders in a prorated manner so that an equal percentage of re-minted auction-II account Generation Attributes are allocated from each Generation Unit that deposited Solar Carve-out II Renewable Generation Attributes. The remaining re-minted auction-II account Generation Attributes that were not allocated to the bidders shall be returned to the entity that made the deposit. These re-minted auction-II account Generation Attributes shall be eligible in any of the three subsequent Compliance Years from the year in which they were generated to meet obligations under the Massachusetts Solar Carve-out II Minimum Standard.

(j) Re-minted auction-II account Generation Attributes may not be placed into the Solar Credit Clearinghouse Auction-II Account in subsequent years.

(k) For each MWh of electricity generation, a Solar Carve-out II Renewable Generation Unit shall generate two types of GIS Certificates. The first type of GIS Certificate shall be encoded as solar photovoltaic, but without RPS Class I Renewable Generation Attributes or Solar Carve-out II Renewable Generation Attributes. The second type of GIS Certificate shall be a Solar Renewable Energy Certificate II (SREC II). The proportion of each of type of GIS Certificate that a Solar Carve-out II Renewable Generation Unit shall generate will be determined subject to the following:

1. Beginning with the calendar quarter in which each Solar Carve-out II Renewable Generation Unit's RPS Effective Date occurs, as prescribed in 225 CMR 14.06(4), the number of GIS Certificates encoded as solar photovoltaic without RPS Class I Renewable Generation Attributes or Solar Carve-out II Renewable Generation Attributes that each Generation Unit generates shall be equal to one minus the SREC Factor, as determined under 225 CMR 14.05(9)(l), times the number of MWh generated. The number of SREC IIs each Generation Unit generates shall be equal to the SREC Factor, as determined under 225 CMR 14.05(9)(l), times the number of MWh generated. This shall apply for as long as the Solar Carve-out II Renewable Generation Unit is eligible to generate Solar Carve-out II Renewable Generation Attributes pursuant to 225 CMR 14.05(9)(l)4.

2. The Solar Carve-out II Renewable Generation Unit Owner or Operator must include within its Statement of Qualification Application an attestation that any GIS Certificate encoded as solar photovoltaic, but without RPS Class I Renewable Generation Attributes or Solar Carve-out II Renewable Generation Attributes, shall be retired at NEPOOL GIS and its ownership shall not be transferred to any other party.

3. Upon the termination of the eligibility period established under 225 CMR 14.05(9)(l)4., a Solar Carve-out II Renewable Generation Unit shall cease to generate SREC IIs and will generate RPS Class I Renewable Generation Attributes for 100% of the MWh it generates.

(l)SREC Factor. The Department assigns to each Solar Carve-out II Renewable Generation Unit an SREC Factor that determines the proportion of the two types of GIS Certificates the Generation Unit will generate as prescribed in 225 CMR 14.05(9)(k). The SREC Factor for any Solar Carve-out II Renewable Generation Unit shall be established as follows:

1. The Department shall publish an SREC Factor Guideline that prescribes SREC Factors differentiated by solar market sectors as specified in 225 CMR 14.05(9)(l)2. to support solar policy objectives.

2. An SREC Factor under 225 CMR 14.05(9)(l)1. shall apply to Generation Units installed in the following market sectors:

a.Market Sector A. The following types of Generation Units will qualify as Solar Carve-out II Renewable Generation Units under Market Sector A, provided they meet the eligibility criteria prescribed in 225 CMR 14.05(9)(a):

i. Generation Units with a capacity equal to or less than 25 kW;

ii. Solar Canopy Generation Units;

iii. Emergency Power Generation Units;

iv. Community Shared Solar Generation Units; or

v. Generation Units that provide all of their generation output in the form of electricity or net metering credits to low or moderate income housing, as defined under M.G.L. c. 40B, § 20.

For the purposes of 225 CMR 14.05(9)(l)2.a., a Generation Unit's capacity shall be measured as the total nameplate capacity of the qualified Solar Carve-out II Renewable Generation Unit on a single parcel of land or on a roof of a single building.

b.Market Sector B. The following types of Generation Units will qualify as Solar Carve-out II Renewable Generation Units under Market Sector B provided they meet the eligibility criteria prescribed in 225 CMR 14.05(9)(a):

i. Building Mounted Generation Units with a capacity of greater than 25 kW; or

ii. Ground mounted Generation Units with a capacity of greater than 25 kW for which 67% or more of its annual electric output is used on-site as prescribed in 225 CMR 14.05(9)(a).

c.Market Sector C. The following types of Generation Units will qualify as Solar Carve-out II Renewable Generation Units under Market Sector C provided they meet the eligibility criteria prescribed in 225 CMR 14.05(9)(a):

i. Generation Units with 75% or more of the nameplate capacity of the solar modules used for generating power installed at an Eligible Landfill or Brownfield; or

ii. Ground mounted Generation Units with a nameplate capacity of less than or equal to 650 kW for which less than 67% of its annual electrical output is used on-site as prescribed in 225 CMR 14.05(9)(a). For the purposes of 225 CMR 14.05(9)(l)2.c., a Unit's capacity shall be measured as the total capacity of qualified Solar Carve-out II Renewable Generation Units on a single parcel of land.

d.Managed Growth Sector. Any Solar Carve-out II Renewable Generation Unit that does not meet the solar market sectors specified in 225 CMR 14.05(9)(l)2.a. through c. shall be eligible to qualify as Managed Growth. There shall be no more than 126 MW of Managed Growth Solar Carve-out II Renewable Generation Units.

3. The SREC Factor assigned to a Unit in its Statement of Qualification shall remain its SREC Factor for its entire term it is eligible to generate Solar Carve-out II Renewable Generation Attributes subject to the limitations in 225 CMR 14.05(9)(l)4., unless otherwise approved at the Department's discretion.

4. Solar Carve-out II Renewable Generation Units with an RPS Effective Date on or before March 31, 2018 will be eligible to receive Solar Carve-out II Renewable Generation Attributes for 40 quarters. However, no Solar Carve-out II Renewable Generation Unit will generate Solar Carve-out II Renewable Generation Attributes after Compliance Year 2027.

5. Notwithstanding 225 CMR 14.05(9)(l)3., any Solar Carve-out II Renewable Generation Unit that has a nameplate capacity equal to or less than 25 kW and receives an authorization to interconnect after January 8, 2017 or that qualifies for an extension under 225 CMR 14.05(9)(p)4.a. will receive a lower SREC Factor that shall be established in a revision to the SREC Factor Guideline on or before August 31, 2016.

(m) The Department shall issue a Guideline outlining the process for providing Assurance of Qualification or queuing position to Solar Carve-out II Renewable Generation Units as outlined in 225 CMR 14.05(9)(n) and (o). The Guideline may consider accommodations for small Generation Units and will provide a queuing system for Generation Units awaiting an Assurance of Qualification. The content of the Guideline will be subject to stakeholder review and comment.

1. For the purpose of managing the supply of qualified Solar Carve-out II Renewable Generation Units, the Department shall establish annual capacity blocks that provide the number of MW that may qualify as Solar Carve-out II Renewable Generation Units for each Compliance Year under the Managed Growth Sector. For Compliance Year 2014 the annual capacity block shall be 26 MW, and for Compliance Year 2015, the annual capacity block shall be 80 MW. No later than August 30^th of each year, the Department shall announce on its website the annual capacity block for the Compliance Year two years in the future, so that the projected installed capacity of all Solar Carve-out II Renewable Generation Units is estimated to not exceed the following cumulative installed capacity targets:

Compliance Year	Cumulative Installed Capacity Target, MW
2016	477 minus (Solar Carve-out Program Capacity Cap minus 400) * 0.333
2017	636 minus (Solar Carve-out Program Capacity Cap minus 400) * 0.500
2018	824 minus (Solar Carve-out Program Capacity Cap minus 400) * 0.667
2019	1012 minus (Solar Carve-out Program Capacity Cap minus 400) * 0.833
2020 and beyond	1200 minus (Solar Carve-out Program Capacity Cap minus 400) * 1.000

2. The allocation of applications to annual capacity blocks shall be based on the order in which administratively complete applications are received by the Department. A Generation Unit that otherwise meets the eligibility of a Solar Carve-out II Renewable Generation Unit shall be qualified by the Department to generate Solar Carve-out II Renewable Generation Attributes no earlier than the Compliance Year under whose annual capacity block the Generation Unit's capacity was allocated. The Department shall provide on its website a periodically updated list of the capacity of Solar Carve-out II Renewable Generation Units qualified under each annual capacity block that has been announced. (n) The Department shall issue a Guideline outlining the process for providing Assurance of Qualification or queuing position to Solar Carve-out II Renewable Generation Units as outlined in 225 CMR 14.05(9)(o) and (p). The Guideline may consider accommodations for small generation units and will provide a queuing system for units awaiting an Assurance of Qualification. The content of the Guideline will be subject to stakeholder review and comment.

(n) A Generation Unit seeking a Statement of Qualification as a Solar Carve-out II Renewable Generation Unit must submit a Statement of Qualification Application.

(o) The Department shall grant a Statement of Qualification to Solar Carve-out II Renewable Generation Units that have submitted a complete Statement of Qualification Application and meet the eligibility criteria prescribed in 225 CMR 14.05(9).

(p) As of April 8, 2016, the Department shall provide Statements of Qualifications to all Solar Carve-out II Renewable Generation Units with submitted Statement of Qualification Applications as follows, provided such Solar Carve-out II Renewable Generation Units meet all other eligibility criteria of 225 CMR 14.00.

1. A Solar Carve-out II Renewable Generation Unit with a rated capacity greater than 25 kW that has received an Assurance of Qualification under the Solar Carve-out II Program Capacity Cap as of April 8, 2016, shall immediately be granted a Statement of Qualification. The Solar Carve-out II Renewable Generation Unit will retain its Statement of Qualification only if the Generation Unit meets the project construction timelines prescribed in 225 CMR 14.05(9)(p)4.

2. A Solar Carve-out II Renewable Generation Unit with a rated capacity greater than 25 kW that submits a complete Statement of Qualification Application shall be provided a Statement of Qualification. The Solar Carve-out II Renewable Generation Unit will retain its Statement of Qualification only if the Generation Unit meets the project construction timelines prescribed in 225 CMR 14.05(9)(p)4.

3. A Solar Carve-out II Renewable Generation Unit that has a rated capacity equal to or less than 25 kW, which has both received its authorization to interconnect or permission to operate from its local Distribution Company and submitted a Statement of Qualification Application by the SMART Program Effective Date, as defined in 225 CMR 20.05(2): SMART Program Effective Date, shall be provided a Statement of Qualification provided it meets all other applicable eligibility criteria of 225 CMR 14.00. For the purpose of 225 CMR 14.05(9)(p)3., the Generation Unit's capacity shall be measured as the total capacity of qualified Solar Carve-Out Renewable Generation and Solar Carve-Out II Renewable Generation on a single parcel of land or on a roof of a single building, whichever is less.

4. A Solar Carve-out II Renewable Generation Unit with a rated capacity greater than 25 kW that has received a Statement of Qualification must receive its authorization to interconnect or permission to operate from its local Distribution Company on or before January 8, 2017, in order to retain its Statement of Qualification. However, a Solar Carve-out II Renewable Generation Unit that does not receive its authorization to interconnect or permission to operate from its local Distribution Company on or before January 8, 2017, may also retain its Statement of Qualification if it can meet the following criteria:

a. If a Solar Carve-out II Renewable Generation Unit can demonstrate to the Department's satisfaction that it has expended at least 50% of its total construction costs by January 8, 2017, it will be provided an extension through May 8, 2017, at which point the Generation Unit must provide evidence that it has received its authorization to interconnect or permission to operate, or that it meets the criteria to qualify for an additional extension under 225 CMR 14.05(9)(p)4.b or c.

b. If a Solar Carve-out II Renewable Generation Unit can demonstrate to the Department's satisfaction that its interconnection depends only upon receipt of notice of authorization to interconnect from the Distribution Company, its Statement of Qualification shall be extended indefinitely until such notice is received or denied.

c. If a Solar Carve-out II Renewable Generation Unit can demonstrate to the Department's satisfaction that good cause warrants an extension outside of that permitted under 225 CMR 14.05(9)(p)4.a. or b., its Statement of Qualification shall be extended by an amount of time to be determined by the Department.

d. Details on additional deadlines and eligibility criteria can be found in the Department's SREC Factor Guideline.

(q) The Department or its agent shall establish a program utilizing ACP funds to enhance the availability of ownership financing options for Solar Carve-out II Renewable Generation Units. This program shall focus on owner financing for Solar Carve-out II Renewable Generation Units installed on residential buildings and other buildings owned by not-for-profit organizations whose purposes are among those listed in Section 501(c)(3) of the Internal Revenue Code, and who are incorporated under state law as not-for-profit corporations.

(r) In establishing the annual capacity block for each compliance year as specified in 225 CMR 14.05(9)(m)1., on petition of an electric distribution company, the Department may establish a competitive program for all or some of the annual capacity block and other Solar Carve-out II Renewable Generation Units. In its petition to the Department, the electric distribution company must demonstrate that the competitive program has received prior review and approval by the Massachusetts Department of Public Utilities.

(s) As of April 8, 2016, the Department shall provide Statements of Qualifications to all Solar Carve-out II Renewable Generation Units with submitted Statement of Qualification Applications as follows, provided such Solar Carve-out II Renewable Generation Units meet all other eligibility criteria of 225 CMR 14.00.

3. A Solar Carve-out II Renewable Generation Unit that has a rated capacity equal to or less than 25 kW, which has both received its authorization to interconnect or permission to operate from its local Distribution Company and submitted a Statement of Qualification Application by the SMART Program Effective Date, as defined in 225 CMR 20.05(2): SMART Program Effective Date, shall be provided a Statement of Qualification, provided it meets all other applicable eligibility criteria of 225 CMR 14.00. For the purpose of this subparagraph, the Generation Unit's capacity shall be measured as the total capacity of qualified Solar Carve-Out Renewable Generation and Solar Carve-out II Renewable Generation on a single parcel of land or on a roof of a single building, whichever is less.

d. Details on additional deadlines and eligibility criteria can be found in the Department's SREC Factor Guideline.