225 Mass. Reg. 14.07

Current through Register 1523, June 7, 2024

Section 14.07 - Renewable Energy Portfolio Standard - Class I

(1)RPS Class I Minimum Standard. The total annual sales of each Retail Electricity Product sold to Massachusetts End-use Customers by a Retail Electricity Supplier shall include a minimum percentage, as specified in the table in 225 CMR 14.07, of electrical energy sales with RPS Class I Renewable Generation Attributes, Solar Carve-out Renewable Generation Attributes, and Solar Carve-out II Renewable Generation Attributes. The following table reflects annual total RPS Class I Minimum Standard Percentage requirements, including the Solar Carve-out and Solar Carve-out II Minimum Standards, in effect from 2003 through 2030:

Compliance Year	Cumulative Minimum Percentage, Including Solar Carve-out and Solar Carve-out II
2003	1.0%
2004	1.5%
2005	2.0%
2006	2.5%
2007	3.0%
2008	3.5%
2009	4.0%
2010	5.0%
2011	6.0%
2012	7.0%
2013	8.0%
2014	9.0%
2015	10.0%
2016	11.0%
2017	12.0%
2018	13.0%
2019	14.0%
2020	16.0%
2021	18.0%
2022	20.0%
2023	22.0%
2024	24.0%
2025	27.0%
2026	30.0%
2027	33.0%
2028	36.0%
2029	39.0%
2030	40.0%

After 2030, the RPS Class I Minimum Standard shall increase by 1% in each subsequent Compliance Year unless modified by law.

(2)Solar Carve-out Minimum Standard. All references to kW or MW in 225 CMR 14.07(2) shall be measured on a nameplate capacity basis in direct current (DC).

(a) The total annual sales of each Retail Electricity Product sold to Massachusetts End-use Customers by a Retail Electricity Supplier shall include a minimum percentage of electrical energy sales with Solar Carve-out Renewable Generation Attributes. This percentage shall be a portion of the Supplier's obligation under 225 CMR 14.07(1) and not an additional obligation of the Supplier. For each Compliance Year, the Solar Carve-out Minimum Standard shall be calculated as the total Solar Carve-out compliance obligation (in MWh) as determined in 225 CMR 14.07(2)(b) and (c), divided by the total MWh of electrical energy sales by Retail Electricity Suppliers to End-use Customers in the Compliance Year two years prior, as such sales are defined in 225 CMR 14.09(2)(a). The following table reflects the Minimum Standards in effect from Compliance Years 2010 through 2021 by year and the execution date of a retail supply contract:

Solar Carve-out Minimum Standards
Compliance Year	Retail Contract Execution Date	Minimum Standard
2010	N/A	0.0679%
2011	N/A	0.1627%
2012	N/A	0.1630%
2013	On or before 6/7/2013	0.2744%
2013	After 6/7/2013	0.3833%
2014	N/A	0.9481%
2015	On or before 6/28/2013	1.5359%
2015	After 6/28/2013	2.1442%
2016	On or before 6/28/2013	0.9801%
2016	After 6/28/2013	1.7568%
2017	On or before 6/28/2013	0.9861%
2017	After 6/28/2013	1.6313%
2018	On or before 6/28/2013	1.1411%
2018	After 6/28/2013	1.7903%
2019	On or before 6/28/2013	1.0978%
2019	After 6/28/2013	1.7458%
2020	On or before 6/28/2013	0.9867%
2020	After 6/28/2013	1.6116%
2021	On or before 6/28/2013	1.0181%
2021	After 6/28/2013	1.6629%

(b) For all Compliance Years subsequent to 2021, the Minimum Standards calculated for the Solar Carve-out, which shall be announced by the Department not later than August 31^stof the preceding Compliance Year, shall be determined by first calculating the compliance obligation and setting it to either:

1. the total Solar Carve-out Renewable Generation Attributes projected to be generated for the previous Compliance Year (CY-1) minus the total Solar Carve-out Renewable Generation Attributes that will no longer be generated in the Compliance Year per 225 CMR 14.06(3)(e); or

2. the total Solar Carve-out Renewable Generation Attributes projected to be generated for the previous Compliance Year (CY-1) minus the total Solar Carve-out Renewable Generation Attributes that will no longer be generated in the Compliance Year per 225 CMR 14.06(3)(e), minus the quantity of solar carve-out Alternative Compliance Credits used for the Compliance Year two years prior (CY-2), plus the number of Solar Carve-out Renewable Generation Attributes from the Compliance Year two years prior (CY-2) banked as provided under 225 CMR 14.08(2), plus the number of Solar Carve-out Renewable Generation Attributes from the Compliance Year two years prior (CY-2) deposited into the Solar Credit Clearinghouse Auction Account, whichever is greater.

(c)Minimum Standard for Retail Load Served under Contracts Executed on or Before June 28, 2013. The Solar Carve-out Minimum Standard applied to Retail Electricity Suppliers for that portion of electrical energy sales that were subject to a contract executed or extended prior to June 28, 2013 shall be calculated based on a compliance obligation calculated per 225 CMR 14.07(2)(b) as if the Solar Carve-out Program Capacity Cap was 400 MW minus the capacity from Solar Carve-out Renewable Generation Units that will no longer be eligible per 225 CMR 14.06(3)(e). 225 CMR 14.07(2)(c) applies only if the Retail Electricity Supplier provides documentation, satisfactory to the Department, identifying the terms of such contracts including, but not limited to, the execution and expiration dates of the contract and the annual volume of electrical energy supplied.

(d) In the instance the Solar Credit Clearinghouse Auction under 225 CMR 14.05(4)(g) does not clear, prior to conducting an auction under 225 CMR 14.05(4)(h), the Department shall recalculate the Solar Carve-out Minimum Standards for the Compliance Year two years following the Compliance Year in which the Solar Carve-out Renewable Generation Attributes deposited into the Solar Credit Clearinghouse Auction Account were generated by adding to the previously calculated total compliance obligations under 225 CMR 14.07(2)(b) and (c) the number of Solar Carve-out Renewable Generation Attributes deposited into the Solar Credit Clearinghouse Auction Account such that the number of Attributes deposited is counted twice.

(e) Compliance Year 2023 shall be the final Compliance Year of the Solar Carve-out program. In the event that a Solar Credit Clearinghouse Auction is held for Compliance Year 2022 or 2023 and creates Re-minted Auction Account Attributes that can be used for Compliance Years after 2023, the Department shall extend the final Compliance Year by one additional Compliance Year. The compliance obligation for this additional Compliance Year will be equal to the number of Solar Carve-out Renewable Energy Generation Attributes deposited into the Solar Credit Clearinghouse Auction Account plus the number of remaining Re-Minted Auction Account Attributes and banked Solar Carve-out Renewable Generation Attributes that have not been used for meeting any compliance obligation. The Solar Carve-out Minimum Standard shall be set to zero for the year after this additional Compliance Year.

(f) In the event that there is an additional Compliance Year added as a result of an Auction in the final Compliance Year, Solar Carve-out Renewable Energy Generation Attributes shall cease to exist as of the start of the additional Compliance Year, and all generation from qualified Solar Carve-out Generation Units shall produce RPS Class I Generation Attributes.

(g) In the event that there is no additional Compliance Year added as the result of an Auction in the final Compliance Year, the Department shall set the Solar Carve-out Minimum Standard to zero for the year after the final Compliance Year. From this time forward, Solar Carve-out Renewable Energy Generation Attributes shall cease to exist, and all generation from qualified Solar Carve-out Renewable Generation Units shall produce RPS Class I Renewable Energy Attributes.

(3)Solar Carve-out II Minimum Standard. All references to MW in 225 CMR 14.07(3) shall be measured on a nameplate capacity basis in direct current (DC).

(a) The total annual sales of each Retail Electricity Product sold to Massachusetts End-use Customers by a Retail Electricity Supplier shall include a minimum percentage of electrical energy sales with Solar Carve-out II Renewable Generation Attributes. This percentage shall be a portion of the Supplier's obligation under 225 CMR 14.07(1) and not an additional obligation of the Supplier. For each Compliance Year, the Department shall calculate the Solar Carve-out II Minimum Standard by dividing the total Solar Carve-out II compliance obligation (in MWh), as determined in 225 CMR 14.07(3)(b) and (c), by the total MWh of electrical energy sales by Retail Electricity Suppliers to End-use Customers in the Compliance Year two years prior, as such sales are defined in 225 CMR 14.09(2)(a). The following table reflects the Minimum Standards in effect from Compliance Years 2014 through 2021 by year and the execution date of a retail supply contract:

Solar Carve-out II Minimum Standards
Compliance Year	Retail Contract Execution Date	Minimum Standard
2014	On or before 4/25/2014	0.0000%
2014	After 4/25/2014	0.0843%
2015	On or before 4/25/2014	0.0000%
2015	After 4/25/2014	0.3288%
2016	On or before 4/25/2014	0.0000%
2016	After 4/25/2014	0.7851%
2017	On or before 4/25/2014	0.0000%
	After 4/25/2014 and on or before 5/8/2016	2.0197%
	After 5/8/2016	2.8628%
2018	On or before 4/25/2014	0.0000%
	After 4/25/2014 and on or before 5/8/2016	2.6823%
	After 5/8/2016	4.0683%
2019	On or before 4/25/2014	0.0000%
	After 4/25/2014 and on or before 5/8/2016	2.3196%
	After 5/8/2016	3.9141%
2020	On or before 4/25/2014	0.0000%
	After 4/25/2014 and on or before 5/8/2016	2.2040%
	After 5/8/2016	3.8011%
2021	After 4/25/2014 and on or before 5/8/2016	2.2672%
2021	After 5/8/2016	3.9284%

(b) For all Compliance Years subsequent to 2021, the Minimum Standard for the Solar Carve-out II shall be announced by the Department not later than August 31^st of the preceding Compliance Year and shall be determined by the Department after calculating a compliance obligation as equal to the sum of the following quantities of generated and projected SREC IIs:

1.Installed SREC II Supply. For all Solar Carve-out II Renewable Generation Units installed at the time of the determination, the Department shall project the Compliance Year generation of SREC IIs based on assigned SREC Factors.

2.Qualified but Not Installed SREC II Supply. For all Solar Carve-out II Renewable Generation Units that have received Statements of Qualification as Solar Carve-out II Renewable Generation Units from the Department, but whose Commercial Operation Dates have not yet been reached, the Department shall project the Compliance Year generation of SREC IIs based on assigned SREC Factors and expected Commercial Operation Dates.

3.Projected New Supply. The Department shall provide a projection of SREC II supply in Compliance Year from new installations that have not yet received Statements of Qualification based on prior growth trends by market sectors and all other available information.

4.Rollover Volume. The volume of SREC IIs generated in the Compliance Year two and three years prior to the Compliance Year for which the compliance obligation is being calculated that remain available for compliance, including each of the following:

a. re-minted auction-II account Generation Attributes as established in 225 CMR 14.05(9)(e) and (g); and

b. banked Solar Carve-out II Renewable Generation Attributes as allowed in 225 CMR 14.08(2).

5.Third Round Auction Volume Doubling. In the case of a third round Solar Credit Clearinghouse Auction-II under 225 CMR 14.05(9)(g), the volume of SREC IIs deposited into the Solar Credit Clearinghouse Auction II Account in the Compliance Year two years prior to the Compliance Year for which the compliance obligation is being calculated, as prescribed by 225 CMR 14.07(3)(d).

(c)Compliance Exemptions for Retail Load Served under Existing Contracts. The following methodologies will be used to calculate the compliance obligations and resulting Minimum Standards that apply to electrical energy sales that were subject to contracts executed or extended prior to certain dates as prescribed in 225 CMR 14.07(3)(c)1. through 2. These provisions apply only if the Retail Electricity Supplier provides documentation, satisfactory to the Department, identifying the terms of such contracts including but not limited to, the execution and expiration dates of the contract and the annual volume of electrical energy supplied.

1.Minimum Standard for Retail Load Served under Contracts Executed on or before April 25, 2014. There shall be no Solar Carve-out II Minimum Standard applied to Retail Electricity Suppliers for that portion of electrical energy sales that were subject to a contract executed or extended prior to April 25, 2014.

2.Minimum Standard for Retail Load Served under Contracts Executed after April 25, 2014 and on or before May 8, 2016. The Solar Carve-out II Minimum Standard applied to Retail Electricity Suppliers for that portion of electrical energy sales that were subject to a contract executed or extended after April 25, 2014 and on or before May 8, 2016 shall be calculated based on a compliance obligation calculated per 225 CMR 14.07(3)(b) as if the combined Solar Carve-out Program Capacity Cap and Solar Carve-out II Program Capacity Cap were 1,600 MW.

(d) In the instance the Solar Credit Clearinghouse Auction-II under 225 CMR 14.05(9)(g) does not clear, prior to conducting an auction under 225 CMR 14.05(9)(h), the Department shall recalculate the Solar Carve-out II Minimum Standard for the Compliance Year two years following the Compliance Year in which the SREC IIs deposited into the Solar Credit Clearinghouse Auction-II Account were generated. This recalculation shall add to the previously calculated total compliance obligation under 225 CMR 14.07(3)(b)1. through 4. the number of SREC IIs deposited into the Solar Credit Clearinghouse Auction-II Account.

(e) The Department shall publish on its website a Guideline that provides clear and precise methodologies by which it will calculate each of the quantities in 225 CMR 14.07(3)(b), and the compliance obligation. The Department shall maintain within this Guideline up-to-date publicly available data that serve as input into these calculations.

(f) Compliance Year 2027 shall be the final Compliance Year of the Solar Carve-out II program. In the event that a Solar Credit Clearinghouse Auction-II is held for Compliance Year 2026 or 2027 and creates SREC IIs that can be used for Compliance Years after 2027, the Department shall extend the final Compliance Year by one additional Compliance Year to 2028 or 2029, respectively. The compliance obligation for any additional Compliance Year will be equal to the number of Solar Carve-out II Renewable Energy Generation Attributes deposited into the Solar Credit Clearinghouse Auction-II account plus the number of remaining SREC IIs and banked SREC IIs that have not been used for meeting any prior compliance obligation. The Solar Carve-out II Minimum Standard shall be set to zero for the year after this additional Compliance Year, unless a second additional Compliance Year is required.

(g) In the event that there is an additional Compliance Year added as a result of an auction in the final Compliance Year, Solar Carve-out II Renewable Energy Generation Attributes shall cease to exist as of the start of the additional Compliance Year, and all generation from qualified Solar Carve-out II Generation Units shall produce RPS Class I Generation Attributes only.

(h) In the event that there is no additional Compliance Year added as the result of an auction in the final two Compliance Years, the Department shall set the Solar Carve-out II Minimum Standard to zero for the year after the final Compliance Year. From this time forward, Solar Carve-out II Renewable Energy Generation Attributes shall cease to exist, and all generation from qualified Solar Carve-out II Renewable Generation Units shall produce RPS Class I Renewable Energy Attributes only.