310 CMR 7.75
Clean Energy Standard
(1) Purpose, Authority and Scope. The purpose of 310 CMR 7.75, promulgated in conjunction
with 310 CMR 7.74, is to assist the Commonwealth in achieving the greenhouse gas emissions
reduction goals adopted pursuant to M.G.L. c. 21N, § 3(b), by establishing a clean energy
standard (CES) that will increase the level of clean electricity that is purchased from the regional
electric grid for consumption in Massachusetts. To achieve those goals, the Executive Office
of Energy and Environmental Affairs (EEA) and the Department, pursuant to M.G.L. c. 21A,
§§ 2 and 8 and M.G.L. c. 21N, hereby jointly promulgate 310 CMR 7.75 following consultation
with the Department of Energy Resources (DOER) and based on the considerations specified in
M.G.L. c. 21N, § 3(c). In exercising their broad authority and discretion under M.G.L. c. 21N,
§ 3(c), EEA and the Department have determined that establishing the CES, along with the
Commonwealth's other climate programs and policies, will ensure achievement of the
greenhouse gas emissions limits as established under M.G.L. c. 21N, and that the 310 CMR 7.75
levels are consistent with, and take account of, regional programs such as the Regional
Greenhouse Gas Initiative (RGGI) and the Renewable Portfolio Standard (RPS). The
Department is also consolidating in 310 CMR 7.75 a requirement previously codified at
310 CMR 7.71(9) for retail sellers of electricity to report statewide greenhouse gas emissions and
to monitor and ensure compliance with the reporting provisions of M.G.L. c. 21N, § 2(a)(5).
310 CMR 7.75 is also promulgated pursuant to M.G.L. c. 21A, § 16 and M.G.L. c. 111, §§ 2C
and 142A through 142E.
(2) Definitions. The terms used in 310 CMR 7.75 are defined in 310 CMR 7.75(2) and
310 CMR 7.00: Definitions. Where a term is defined in both 310 CMR 7.00: Definitions and
310 CMR 7.75, the definition in 310 CMR 7.75 shall apply.
Biogenic Greenhouse Gas Emissions. Emissions of carbon dioxide that result from the
combustion of biogenic (plant or animal) material, excluding fossil fuels.
Business Day. Means Monday through Friday, exclusive of state and federal legal holidays.
Carbon Dioxide Equivalent. Means the amount of carbon dioxide by weight that would produce
the same amount of global warming impact as a given weight of another greenhouse gas.
Certificates Obligation. Means a term defined in the NEPOOL GIS operating rules at Rule
4.1(b).
CES Alternative Compliance Credit. Means a credit obtained by a retail seller of electricity upon
making a CES alternative compliance payment. Such credit is used to document compliance
with 310 CMR 7.75(4)(a). One unit of credit shall be equivalent to one clean generation
attribute.
CES-E Alternative Compliance Credit. Means a credit obtained by a retail seller of electricity
upon making a CES-E alternative compliance payment. Such credit is used to document
compliance with 310 CMR 7.75(4)(b). One unit of credit shall be equivalent to one clean
existing generation attribute.
CES Alternative Compliance Payment (CES ACP). Means a payment of a certain dollar amount
per MWh, resulting in the issuance of CES alternative compliance credits, which a retail seller
of electricity may submit to the Department in lieu of providing clean generation attributes
required under 310 CMR 7.75(4)(a).
CES-E Alternative Compliance Payment (CES-E ACP). Means a payment of a certain dollar
amount per MWh, resulting in the issuance of CES-E alternative compliance credits, which a
retail seller of electricity may submit to the Department in lieu of providing clean existing
generation attributes required under 310 CMR 7.75(4)(b).
CES Statement of Qualification. Means a written document from the Department that qualifies
a generation unit as a clean generation unit, or that qualifies a portion of the annual electrical
energy output of a generation unit as clean generation.
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310 CMR - 250.102.76.31
CES-E Statement of Qualification. Means a written document from the Department that
qualifies a generation unit as a clean existing generation unit, or that qualifies a portion of the
annual electrical energy output of a generation unit as clean existing generation.
Clean Existing Generation. Means the electrical energy output, or that portion of the electrical
energy output, excluding any electrical energy utilized for parasitic load of a clean existing
generation unit, that qualifies under:
(a) the special provisions for a generation unit located in a control area adjacent to the
ISO-NE control area, pursuant to 310 CMR 7.75(7)(b); or
(b) the special provisions for clean existing generation units, pursuant to 310 CMR
7.75(7)(c); or
(c) any other applicable provision of 310 CMR 7.75.
Clean Existing Generation Attribute. Means a generation attribute of the electrical energy output
of a specific clean existing generation unit that derives from the unit's production of clean
existing generation.
Clean Existing Generation Unit. Means a nuclear or hydroelectric generation unit that:
(a) is located in Massachusetts, or in a jurisdiction that exported at least 4,000,000 MWh
of electricity to Massachusetts in at least two years from 2001 through 2016, on a net annual
basis, as reflected in the state greenhouse gas emissions inventories published annually by
the Department;
(b) has a nameplate capacity greater than 30 megawatts; and
(c) commenced commercial operation before January 1, 2011.
Clean Generation. Means the electrical energy output, or that portion of the electrical energy
output, excluding any electrical energy utilized for parasitic load of a clean generation unit, that
qualifies under:
(a) the special provisions for a generation unit located in a control area adjacent to the
ISO-NE control area, pursuant to 310 CMR 7.75(7)(b); or
(b) any other applicable provision of 310 CMR 7.75 or 225 CMR 14.00: Renewable Energy
Portfolio Standard - Class I.
Clean Generation Attribute. Means the generation attribute that is either:
(a) a generation attribute of the electrical energy output of a specific clean generation unit
that derives from the unit's production of clean generation; or
(b) any other generation attribute that is retained pursuant to St. 2008, c. 169, § 83D(h), as
inserted by St. 2016, c. 188, § 12. All generation attributes retained pursuant to St. 2008,
c. 169, § 83D(h), as inserted by St. 2016, c. 188, § 12, including such generation attributes
that derive from generation units that do not satisfy all limitations in 310 CMR 7.75(7), are
clean generation attributes.
Clean Generation Unit. Means a generation unit or aggregation that has received a CES
statement of qualification from the Department, or that has received an RPS statement of
qualification from DOER.
Commercial Operation Date. Means the date that a generation unit first produces electrical
energy for sale within the ISO-NE control area or within an adjacent control area. In the case
of transmission capacity that is used to transmit clean energy, the date on which the transmission
capacity first transmitted energy into the ISO-NE control area or an adjacent control area.
Compliance Filing. Means a document filed annually by a retail seller of electricity in a format
determined by the Department documenting compliance with 310 CMR 7.75(4), submitted no
later than July 1st, or the first business day thereafter, of the subsequent compliance year.
Compliance Year. Means a calendar year beginning January 1st and ending December 31st, for
which a retail seller of electricity that is not an Municipal Electric Department or Municipal
Light Board must demonstrate that it has met the requirements of 310 CMR 7.75(4) and (5).
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310 CMR - 250.102.76.32
Control Area. Means a geographic region in which a common generation control system is used
to maintain scheduled interchange of electrical energy within and without the region.
Dedicated Transmission Line. Mmeans a transmission line with a commercial operation date
after December 31, 2017 that is not electrically connected to any generation unit that is not a
clean generation unit.
Emitting Electricity Generators. Means electricity generators that are powered by any fossil or
biogenic fuels.
Emitting Megawatt Hours. Means megawatt hours that are generated by emitting electricity
generators.
End-use Customer. Means a person or entity in Massachusetts that purchases electrical energy
at retail from a retail seller of electricity, except that a generation unit taking station service at
wholesale from ISO-NE or self-supplying from its owner's other generating stations, shall not
be considered an end-use customer.
Generation Attribute. Means a non-price characteristic of the electrical energy output of a
generation unit including, but not limited to, the generation unit’s fuel type, emissions, vintage
and eligibility for renewable or clean energy programs.
Generation Unit. A facility that converts a fuel or an energy resource into electrical energy.
GIS Certificate. Means an electronic record produced by the NEPOOL GIS that identifies
generation attributes of each MWh accounted for in the NEPOOL GIS.
Greenhouse Gas. Means any chemical or physical substance that is emitted into the air and that
the Department may reasonably anticipate will cause or contribute to climate change including,
but not limited to, carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons
and sulfur hexafluoride.
ISO-NE. ISO New England Inc., the independent system operator for New England, the regional
transmission organization for most of New England, which is authorized by the Federal Energy
Regulatory Commission (FERC) to exercise for the New England Control Area the functions
required pursuant to the FERC's Order No. 2000 and the FERC's corresponding regulations.
ISO-NE Settlement Market System. The ISO-NE's electronic database system into which all
real-time load and generation data are entered and from which such data are provided to the
NEPOOL GIS.
Lifecycle Greenhouse Gas Emissions. The aggregate quantity of greenhouse gas emissions
including, but not limited to, direct emissions and significant emissions from land use changes,
and temporal changes in forest carbon sequestration and emissions resulting from biomass
harvests, regrowth, and avoided decomposition as determined by the department, related to the
full fuel lifecycle, including all stages of fuel and feedstock production and distribution, from
feedstock generation or extraction through the distribution and delivery of the finished fuel to
the ultimate consumer, where the mass values for all greenhouse gases are adjusted to account
for their relative global warming potential.
Massachusetts Department of Energy Resources or DOER. The Massachusetts agency
established pursuant to M.G.L. c. 25A, §§ 1 through 13.
Megawatt-hour (MWh). A unit of electrical energy or work equivalent to one million watts of
power operating for one hour.
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310 CMR - 250.102.76.33
Municipal Electric Department (MED). A municipal electric department as defined in M.G.L.
c. 164A, § 1.
Municipal Light Board (MLB). Means a municipal light board as defined in M.G.L. c. 164A,
§ 1.
NEPOOL GIS. The NEPOOL Generation Information System, which includes a generation
information database and certificate system, operated by the New England Power Pool
(NEPOOL), its designee or successor entity, that accounts for generation attributes of electrical
energy consumed and generated within, imported into, or exported from the ISO-NE control
area.
NERC Tag. A document that identifies an electrical energy interchange transaction and its
associated participants, assigned in accordance with rules set forth by the North American
Electric Reliability Corporation (NERC), a nonprofit corporation granted by the FERC the legal
authority to enforce mandatory reliability standards for the U.S. bulk power system, subject to
FERC oversight.
Non-emitting Electricity Generators. Electricity generators powered by hydro, nuclear, ocean,
solar or wind power.
Non-emitting Megawatt Hours. Megawatt hours that are generated by non-emitting electricity
generators.
Operator. Any person or entity that has charge or control of a generation unit subject to
310 CMR 7.75(7) through (9) including, without limitation, a duly authorized agent or lessee of
the owner, or a duly authorized independent contractor.
Owner. Any person or entity that, alone or in conjunction with others, has legal ownership, a
leasehold interest, or effective control over the real property or property interest upon which a
generation unit is located, or the airspace above said real property including, without limitation,
a duly authorized agent of the owner. For the purposes of 310 CMR 7.75, owner does not mean
a person or entity holding legal title or security interest solely for the purpose of providing
financing.
Retail Electricity Product. Electrical energy offering that is distinguished by its generation
attributes and that is offered for sale by a retail seller of electricity to end-use customers.
Retail Seller of Electricity or Retail Seller. A competitive supplier licensed by the Department
of Public Utilities or, as each is defined in M.G.L. c. 164A, § 1, an electric utility, municipal
electric department or municipal light board that is connected to the regional electric grid.
RPS Alternative Compliance Credit. A credit obtained by a retail seller of electricity upon
making a payment pursuant to 225 CMR 14.08(3): Alternative Compliance, and used to comply
with 225 CMR 14.07: Renewable Energy Portfolio Standard - Class I.
RPS Class I Renewable Generation Unit. A generation unit or aggregation that has received a
statement of qualification as an RPS Class I renewable generation unit from DOER pursuant to
225 CMR 14.00: Renewable Energy Portfolio Standard - Class I.
RPS Statement of Qualification. A written document issued by DOER pursuant to 225 CMR
14.06: Qualification Process for RPS Class I, Solar Carve-out Renewable Generation Units,
and Solar Carve-out II Renewable Generation Units that qualifies a generation unit or
aggregation as an RPS Class I qualified generation unit, or that qualifies a portion of the annual
electrical energy output of a generation unit.
Short Ton. 2000 pounds or 0.9072 metric tons.
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310 CMR - 250.102.76.34
(3) Applicability. Retail sellers are required to comply with 310 CMR 7.75.
(4) Clean Energy Standard and CES-E Standard. The total annual sales of each retail electricity
product sold to Massachusetts end-use customers by a retail seller that is not an MED or MLB
shall include a minimum percentage of electrical energy sales with clean generation attributes
and clean existing generation attributes.
(a) For calendar years 2018 through 2050, percentage requirements for clean generation
attributes are listed in 310 CMR 7.75(4): Table A.
Table A
Year
Retail Sellers, except Municipal Electric
Departments and Municipal Light Boards
16%
18%
20%
22%
24%
26%
28%
30%
36%
42%
48%
54%
60%
61%
62%
63%
64%
65%
66%
67%
68%
69%
70%
71%
72%
73%
74%
75%
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310 CMR - 250.102.76.35
Table A (continued)
Year
Retail Sellers, except Municipal Electric
Departments and Municipal Light Boards
76%
77%
78%
79%
2050, and each year thereafter
80%
(b) Clean Energy Standard for Clean Existing Generation Units (CES-E). For calendar year
2021 and 2022, the percentage requirement for clean existing generation attributes shall be
25%. For calendar years 2023 through 2050, percentage requirements for clean existing
generation attributes shall be determined by dividing 20% by the percentage provided by the
Department pursuant to 310 CMR 7.75(9)(b)4. for the year four years before the calendar
year for which the percentage requirement applies, rounded to the nearest percent (i.e., if the
percentage provided pursuant to 310 CMR 7.75(9)(b)4. for 2026 is 105%, then the
percentage requirement for clean existing generation attributes in 2030 would be 25% ÷
105% = 24%).
(5) Compliance Procedures for Retail Sellers That Are Not MEDs or MLBs.
(a) Standard Compliance. Each retail seller subject to 310 CMR 7.75(4) shall be deemed
to be in compliance with 310 CMR 7.75 if the information provided in the compliance filing
submitted pursuant to 310 CMR 7.75(5) is true and accurate and demonstrates compliance
with 310 CMR 7.75(4). Such retail seller shall demonstrate, using a form provided by the
Department or DOER, that clean generation attributes and clean existing generation attributes
used for compliance 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) Banked Compliance.
1. Beginning in 2021, a retail seller subject to 310 CMR 7.75(4)(a) may use clean
generation attributes produced in either or both of the two prior compliance years, subject
to the limitations in 310 CMR 7.75(5)(b) and provided that the retail seller is in
compliance with 310 CMR 7.75 for all previous compliance years. In addition, the retail
seller shall demonstrate, using a form provided by the Department or DOER, that such
attributes:
a. Were in excess of the clean generation attributes needed for compliance in the
compliance year in which they were generated, and that such excess attributes have
not previously been used for compliance with 310 CMR 7.75 or 225 CMR 14.00;
b. Do not exceed 30% of the clean generation attributes needed by the retail seller
for compliance with 310 CMR 7.75(4)(a) in the year they were generated, in excess
of the clean generation attributes needed for the compliance with 225 CMR 14.07(1),
subject to 310 CMR 7.75(5)(b)1.d.;
c. Were produced during the compliance year in which they are claimed as excess
by the generation of electrical energy sold to end-use customers in the ISO-NE
control area; and
d. Have not otherwise been, nor will be, sold, retired, claimed or represented as part
of electrical energy output or sales, or used to satisfy obligations in jurisdictions other
than Massachusetts.
2. Any RPS-eligible renewable generation attributes claimed for compliance with RPS
pursuant to 225 CMR 14.08(2): Banked Compliance and used to comply with 225 CMR
14.07: Renewable Energy Portfolio Standard - Class I in a particular year shall be
counted toward compliance with 310 CMR 7.75 in that year.
3. A retail seller subject to 310 CMR 7.75(4)(b) may not use clean existing generation
attributes produced in prior compliance years to comply with said provision.
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310 CMR - 250.102.76.36
(c) Alternative Compliance. Any RPS alternative compliance credits claimed pursuant to
225 CMR 14.08(3)(a) and used to comply with 225 CMR 14.07: Renewable Energy
Portfolio Standard - Class I shall be counted toward compliance with 310 CMR 7.75(4)(a).
A retail seller subject to 310 CMR 7.75(4) may discharge its obligations under 310 CMR
7.75(4)(a), in whole or in part, by making a CES ACP to the Department. A retail seller
subject to 310 CMR 7.75(4) may discharge its obligations under 310 CMR 7.75(4)(b), in
whole or in part, by making a CES-E ACP to the Department. Such funds shall be deposited
in a segregated account, which may be the same account established to receive auction
proceeds under 310 CMR 7.74(6)(h)1.a.i., administered by a Trustee appointed by EEA and
the Department, and used for the purposes set forth in 310 CMR 7.75(5)(c)2.
1. Alternative Compliance Procedures.
a. Procedures for CES ACP. A retail seller subject to 310 CMR 7.75(4) shall
receive CES alternative compliance credits from the Department, subject to the
following:
i. The quantity of credits, specified in MWh, that can be applied to its
obligations under 310 CMR 7.75(4)(a) shall be determined by calculating the
ratio of the total of CES ACPs paid for the compliance year to the CES ACP rate
for that compliance year.
ii. The CES ACP rate in dollars shall be 0.75 times the rate calculated annually
by DOER pursuant to 225 CMR 14.08(3)(a)2 for years 2018 through 2020, 0.50
times the rate calculated annually by DOER pursuant to 225 CMR 14.08(3)(a)2.
for year 2021, and $35/Mwh for years 2022 through 2050.
b. Procedures for CES-E ACP. A retail seller subject to 310 CMR 7.75(4) shall
receive CES-E alternative compliance credits from the Department subject to the
following:
i. The quantity of credits, specified in MWh, that can be applied to its
obligations under 310 CMR 7.75(4)(b) shall be determined by calculating the
ratio of the total of CES-E ACPs paid for the compliance year to the CES-E ACP
rate for that compliance year.
ii. The CES-E ACP rate in dollars shall be 0.10 times the rate specified by
DOER pursuant to 225 CMR 14.08(3)(a)2. for year 2021, and $ 10/Mwh for
years 2022 through 2050.
2. Use of Funds. Funds deposited pursuant to 310 CMR 7.75(5)(c) shall be expended
to further the goals of M.G.L. c. 21N by supporting:
a. programs and projects to reduce greenhouse gas emissions to mitigate the impacts
of climate change including, but not limited to, clean energy and vehicle
electrification projects;
b. programs or projects to support adaptation to the impacts of climate change;
c. mitigation or adaptation programs or projects involving communities that are
already adversely impacted by air pollution including, but not limited to,
environmental justice communities;
d. and for the administration of any such programs or projects. Such funds may also
be used for the administration of 310 CMR 7.75. Such funds shall be expended at
the direction of the Trustee, in consultation with EEA and the Department. The
Trustee, EEA and the Department may consult with and enter into agreements with
other agencies within the Energy and Environmental Affairs Secretariat to assist in
the administration and expenditure of such funds.
(d) Treatment of Existing Contracts Executed as of August 11, 2017. Notwithstanding
310 CMR 7.75(4), in determining the total CES-qualified MWh applied to each retail seller
subject to 310 CMR 7.75(4) in 2018 and 2019, the Department shall not include that portion
of electrical energy sales that were subject to a contract executed or extended prior to
August 11, 2017, provided that the electricity was sold at a price specified in the contract and
the retail seller provides the Department with satisfactory documentation of the terms of such
contracts. Contracted electrical energy delivered after December 31, 2019 shall be included
in the CES, regardless of the contract's date of execution or extension.
1. In order to demonstrate eligibility of contracts for exemption under 310 CMR
7.75(5)(d), retail sellers shall provide the relevant documentation by December 31, 2017
in accordance with a form prescribed by the Department including, but not limited to, the
execution and expiration dates of the contracts and the projected annual volume of
electric energy supplied at a contract-specified price.
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310 CMR - 250.102.76.37
2. In order to demonstrate eligibility of electrical energy sales for exemption under
310 CMR 7.75(5)(d), retail sellers shall provide the relevant documentation by July 1st
of the year after the sales occurred, along with information required in accordance with
a form prescribed by the Department including, but not limited to, the execution and
expiration dates of the contracts and the actual annual volume of electric energy supplied
at a contract-specified price.
(e) Treatment of Existing Contracts Executed as of October 4, 2019. Notwithstanding
310 CMR 7.75(4), in determining the amount of CES E-qualified MWh applied to each retail
seller subject to 310 CMR 7.75(4)(b) in 2021 and 2022, the Department shall not include that
portion of electrical energy sales that were subject to a contract executed or extended prior
to October 4, 2019, provided that the electricity was sold at a price specified in the contract
and the retail seller provides the Department with satisfactory documentation of the terms
of such contracts.
1. The adjustment to the retail electricity seller's compliance obligation pursuant to
310 CMR 7.75(4)(b) shall be equal to 20% of the amount of contracted electricity energy
sales and shall apply to sales that occur in 2021 and 2022 only.
2. In order to demonstrate eligibility of electrical energy sales for exemption under
310 CMR 7.75(5)(e), retail sellers shall provide the relevant documentation by July 1st
of the year after the year for which the retail seller has exempt electrical energy sales,
along with information required in accordance with a form prescribed by the Department
including, but not limited to, the execution and expiration dates of the contracts and the
actual annual volume of electric energy supplied at a contract-specified price.
(6) Annual Compliance Filings for Retail Sellers That Are Not MEDs or MLBs.
(a) Date of Annual Compliance Filing. For each compliance year, each retail seller subject
to 310 CMR 7.75(4) shall file an annual compliance filing with the Department no later than
the first day of July, or the first business day thereafter, of the subsequent compliance year.
Such retail sellers shall complete an annual compliance report for compliance years 2018
through 2050.
(b) Contents of Annual Compliance Filing. For each retail electricity product, the filing
shall document compliance with the provisions of 310 CMR 7.75(4) and (5) using a form
provided by the Department and shall include, but not be limited to, the following:
1. Total Electrical Energy Sales to End-use Customers. Documentation of the total
MWh of electrical energy allocated by the retail seller to end-use customers in the
compliance year. Such allocation is defined as the total quantity of such seller's
certificates obligation that the seller correctly allocated or should have allocated to all of
the seller's Massachusetts retail subaccounts in the NEPOOL GIS, in compliance with
all relevant provisions of Part 4 of the NEPOOL GIS Operating Rules, as specified in the
Guideline on the Determination of Sales to End-use Customers.
2. Electrical Energy Sales to End-use Customers by Product. Documentation of the
total MWh of each retail electricity product allocated by the retail seller to end-use
Massachusetts customers in the compliance year, verified by an independent third-party
satisfactory to the Department. Such allocation is defined as the quantity of the seller's
certificates obligation that the seller correctly allocated or should have allocated to each
of the seller's Massachusetts retail subaccounts at the NEPOOL GIS, in compliance with
all relevant provisions of Part 4 of the NEPOOL GIS Operating Rules, as specified in the
Guideline on the Determination of Sales to End-use Customers.
3. Attributes Allocated from the Compliance Year. Documentation of the total MWh
of each retail electricity product allocated by the retail seller to end-use Massachusetts
customers that had clean generation attributes and clean existing generation attributes
during the compliance year, as follows:
a. For electrical energy transactions included in the ISO-NE Settlement Market
System, the compliance filings shall include documentation from the NEPOOL GIS
administrator of the retail seller's ownership of GIS certificates representing clean
generation attributes and clean existing generation attributes during the compliance
year.
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310 CMR - 250.102.76.38
b. For electrical energy transactions not included in the ISO-NE Settlement Market
System, but for which the retail seller has secured GIS certificates from the NEPOOL
GIS, the compliance filings shall include documentation from the NEPOOL GIS of
the retail seller's ownership of GIS Certificates representing clean generation
attributes and clean existing generation attributes during the compliance year.
4. Attributes Allocated from Banked Compliance. Allocation by each retail seller,
itemized by retail electricity product, of any quantity of clean generation attributes
banked from one or both of the two previous years pursuant to 310 CMR 7.75(5)(b) that
are used to demonstrate compliance with the clean energy standard in the current
compliance year.
5. Alternative Compliance Credits. Allocation by each retail seller, itemized by retail
electricity product, of any CES alternative compliance credits claimed pursuant to
310 CMR 7.75(5)(c)1.a., CES-E alternative compliance credits claimed pursuant to
310 CMR 7.75(5)(c)1.b., or RPS alternative compliance credits claimed pursuant to
225 CMR 14.08(3)(a): RPS Class I Procedures, along with a copy of any alternative
compliance payment receipt(s).
6. Attributes Banked for Future Compliance. Identification of any quantity of clean
generation attributes, that the retail seller anticipates claiming for purposes of banked
compliance in subsequent years under the banked compliance provisions of 310 CMR
7.75(5)(b).
7. Attributes Retained Pursuant to St. 2008, c. 169, § 83D(h), as Inserted by St. 2016,
c. 188, § 12. For the purpose of determining compliance with 310 CMR 7.75(4)(a), clean
generation attributes that are retained by an electric utility pursuant to St. 2008, c. 169,
§ 83D(h), as inserted by St. 2016, c. 188, § 12, and that are not attributed to RPS Class I
eligible resources, shall be assigned to all end use customers served by all retail sellers
subject to 310 CMR 7.75(4)(a). The number of attributes assigned to each such retail
seller's customers shall be based on the retail seller's proportion of the total retail
electricity product sold statewide by all such retail sellers.
(7) Eligibility Criteria for Clean Generation Units and Clean Existing Generation Units.
(a) Eligibility Criteria for Clean Generation Units. A generation unit may qualify as a clean
generation unit subject to the limitations in 310 CMR 7.75(7). The Department shall consider
all limitations in 310 CMR 7.75(7), including the emissions criteria in 310 CMR
7.75(7)(a)1.a.ii., when considering whether to provide the owner or operator of such
generation unit with a CES statement of qualification pursuant to 310 CMR 7.75(8)(c).
1. Fuels, Energy Resources and Technologies. In order to be considered by the
Department for qualification, a generation unit must satisfy at least one of the two
eligibility criteria in 310 CMR 7.75(7)(a)1.a. and not be excluded by 310 CMR
7.75(7)(a)1.b.
a. A generation unit must satisfy at least one of the following two eligibility criteria:
i. The generation unit has been issued an RPS statement of qualification as an
RPS Class I renewable generation unit pursuant to 225 CMR 14.06(3): Issuance
or Non-issuance of a Statement of Qualification;
ii. The generation unit has net lifecycle GHG emissions, over a 20-year life
cycle, that yield at least a 50% reduction of greenhouse gas emissions per unit of
useful energy relative to the lifecycle greenhouse gas emissions from the
aggregate use of 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;
b. A generation unit that does not satisfy applicable fuel, energy resource, or
technology-specific provisions or limitations in 225 CMR 14.05(1)(a)5. through 7.
shall not qualify under 310 CMR 7.75(7); provided, however, that any generation
unit that is a hydroelectric generator that has a nameplate capacity greater than 30
megawatts may qualify under 310 CMR 7.75(7) if it satisfies the emissions criteria
in 310 CMR 7.75(7)(a)1.a.ii.
2. Commercial Operation Date. For a generation unit that qualifies as a clean
generation unit pursuant to 310 CMR 7.75(7)(a)1.a.ii., the commercial operation date
shall be after December 31, 2010.
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310 CMR - 250.102.76.39
3. Metering. For a generation unit that qualifies as a clean generation unit pursuant to
310 CMR 7.75(7)(a)1., the electrical energy output from the 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, and approved by the
Department.
(b) 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 a clean generation
unit or clean existing generation unit located in a control area adjacent to the ISO-NE control
area that qualifies as clean generation or clean existing generation shall meet the relevant
requirements in Rule 2.7(c) and all other relevant sections of the NEPOOL GIS Operating
Rules, and the requirements in 310 CMR 7.75(7)(b).
1. The generation unit owner or operator shall provide documentation, using a form
provided by the Department or DOER, of a contract or other legally enforceable
obligation, that is executed between the generation unit owner or operator and an
electrical energy purchaser located in the ISO-NE control area for delivery of the
generation unit’s electrical energy to the ISO-NE control area. For a clean generation
unit, such documentation shall include provisions for obtaining associated transmission
rights for delivery of the generation unit’s electrical energy from the generation unit to
the ISO-NE control area using transmission capacity with a commercial operation date
after December 31, 2016. For a clean existing generation unit, such documentation shall
include provisions for obtaining associated transmission rights for delivery of the
generation unit’s electrical energy from the generation unit to the ISO-NE control area
using transmission capacity that had a commercial operation date before January 1, 2017,
and that directly connects the ISO-NE control area with a jurisdiction that exported at
least 4,000,000 MWh of electricity to Massachusetts in at least two years from 2001
through 2016, on a net annual basis, as reflected in the state greenhouse gas emissions
inventories published annually by the Department. If requested by the Department, the
generation unit owner or operator shall pay for evaluation and verification of the
provisions of such documentation by an independent party that is engaged or approved
by the Department. The Department may rely on information in the NEPOOL GIS to
address the requirements of 310 CMR 7.75(7)(b)1. instead of requiring separate
documentation.
2. The generation unit owner or operator for a clean generation unit or clean existing
generation unit shall provide documentation using a form provided by the Department
or DOER, that:
a. The electrical energy delivered pursuant to the legal obligation was settled in the
ISO-NE Settlement Market System;
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310 CMR - 250.102.76.40
b. The generation unit produced, during each hour of the applicable month, the
amount of MWh claimed, as verified by the NEPOOL GIS administrator; if the
originating control area employs a generation information system that is comparable
to the NEPOOL GIS, information from that system may be used to support such
documentation;
c. The electrical energy delivered under the legal obligation received a NERC tag
confirming transmission from the adjacent control area to the ISO-NE control area
using transmission capacity that meets the commercial obligation date and
transmission path requirements specified in 310 CMR 7.75(7)(b)1.; and
d. The clean generation attributes or clean existing 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.
3. The generation unit owner or operator must provide an attestation in a form approved
by the Department that it will not itself or through any affiliate or other contracted party,
knowingly engage in the process of importing clean generation or clean existing
generation into the ISO-NE control area for the creation of clean 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.
4. The quantity of electrical energy output from a clean generation unit or clean existing
generation unit outside the ISO-NE control area that can qualify as clean generation or
clean existing generation at the NEPOOL GIS during each hour is limited to the lesser
of the clean generation or clean existing generation actually produced by the generation
unit or the clean generation or clean existing generation actually scheduled and delivered
into the ISO-NE control area.
5. For the purpose of determining compliance with 310 CMR 7.75(7)(b) and all other
provisions of 310 CMR 7.75, a clean generation unit that delivers clean energy into the
ISO-NE control area or an adjacent control area through a dedicated transmission line
shall be considered to be located in the control area to which the clean energy is
delivered.
(c) Special Provisions for Clean Existing Generation Units.
1. For any clean existing generation unit, the amount of electrical energy output that is
clean existing generation in a given calendar year shall not exceed 2,500,000 MWh.
2. The amount of electrical output of a clean existing generation unit that qualifies as
clean existing generation shall be the second lowest annual total amount of MWh that did
not have attributes retired, claimed, used or represented, as part of electrical energy
output or sales, or used to satisfy obligations in any jurisdiction other than Massachusetts
in the years 2016 through 2018, as reflected in the NEPOOL-GIS.
3. Clean existing generation units must satisfy the requirements of 310 CMR
7.75(7)(a)3. and 4.
4. A generation unit that is not located in a jurisdiction that exported at least 4,000,000
MWh of electricity to Massachusetts in at least two years from 2001 through 2016 may
qualify as a clean existing generation unit if it is located in a control area that is only
electrically interconnected to control areas that are adjacent to the ISO-NE control area
and satisfies all other requirements of 310 CMR 7.75.
5. For the purpose of determining compliance with 310 CMR 7.75 a clean existing
generation unit located in a control area that is only electrically interconnected to control
areas that are adjacent to the ISO-NE control area shall be considered to be located in an
adjacent control area.
(8) Qualification Process for Clean Generation Units and Clean Existing Generation Units.
(a) Statement of Qualification Application. For clean generation units that have not
received an RPS statement of qualification, a CES statement of qualification application shall
be submitted to the Department by the owner or operator of the generation unit. For clean
existing generation units, a CES-E statement of qualification application shall be submitted
to the Department by the owner or operator of the generation unit. The applicant must use
the most current forms and associated instructions provided by the Department, and must
include all information, documentation, and assurances required by such forms and
instructions.
5/12/23 (Effective 11/11/22) - corrected
310 CMR - 250.102.76.41
(b) Review Procedures.
1. The Department shall notify the applicant when the CES statement of qualification
application or CES-E statement of qualification application is administratively complete
or if additional information is required pursuant to 310 CMR 7.75(8)(a).
2. The Department may, in its sole discretion, provide an opportunity for public
comment on any CES statement of qualification application or CES-E statement of
qualification application.
(c) Issuance or Non-issuance of a Statement of Qualification.
1. If the Department finds that all or a portion of the electrical energy output of a
generation unit meets the requirements for eligibility as clean generation pursuant to
310 CMR 7.75(7)(a), and the generation unit is not eligible to receive an RPS statement
of qualification from DOER, the Department shall provide the owner or operator of such
generation unit with a CES statement of qualification.
2. If the Department finds that all or a portion of the electrical energy output of a
generation unit is clean existing generation, the Department shall provide the owner or
operator of such generation unit with a CES-E statement of qualification.
3. The CES statement of qualification or CES-E statement of qualifications shall
include any applicable restrictions and conditions that the Department deems necessary
to ensure compliance by a generation unit with the provisions of 310 CMR 7.75.
4. If the generation unit does not meet the requirements for eligibility as a clean
generation unit or clean existing generation unit, the Department shall provide written
notice to the Owner or Operator, including the Department's reasons for such finding.
(d) Notification Requirements for Change in Eligibility Status. The owner or operator of
a clean generation unit or clean existing generation unit shall notify the Department of any
changes in the technology, operation, emissions, fuel sources, energy resources, capacity
commitment, or other characteristics of the generation unit that may affect the eligibility of
the unit as a clean generation unit or clean existing generation unit. The owner or operator
shall submit the notification to the Department no later than five days following the end of
the month during which such changes were implemented. The notice shall state the date the
changes were made to the generation unit and describe the changes in sufficient detail to
enable the Department to determine if a change in eligibility is warranted.
(e) Notification Requirements for Change in Ownership, Generation Capacity, or Contact
Information. The owner or operator of a clean generation unit or clean existing generation
unit shall notify the Department of any changes in the ownership, operating entity, generation
capacity, NEPOOL GIS account, independent verification system for the generation unit’s
electrical energy output, or contact information for the generation unit. The owner or operator
shall submit the notification to the Department no later than five days following the end of
the month during which such changes were implemented.
(f) Time Limit for Project Implementation. Any CES statement of qualification shall expire
48 months after the issuance date of the CES statement of qualification (the expiration date)
unless the commercial operation date of the generation unit is on or before the expiration
date. The Department may, at its discretion, grant an extension of the expiration date of the
CES statement of qualification upon petition by the owner or operator of the generation unit.
If the owner or operator of such generation unit desires an extension, such owner or operator
must submit a new CES statement of qualification application, and the decision of the
Department on such new application may be made in accordance with the regulations and
criteria that are applicable on the date that the Department receives that application.
(g) Suspension or Revocation of Statement of Qualification. The Department may suspend
or revoke a CES statement of qualification or CES-E statement of qualification if the owner
or operator of a clean generation unit fails to comply with 310 CMR 7.75.
(h) Identification of Clean Generation Units and Clean Existing Generation Units. The
Department shall inform the NEPOOL GIS administrator which generation units should be
designated clean generation units and clean existing generation units pursuant to 310 CMR
7.75.
(9) Reporting Requirements.
(a) Certification. Any person required by 310 CMR 7.75 to submit documentation to the
Department shall provide:
1. The person's name, title and business address;
2. The person's authority to certify and submit the documentation to the Department;
and
5/12/23 (Effective 11/11/22) - corrected
310 CMR - 250.102.76.42
3. The following certification: "I hereby certify, under the pains and penalties of
perjury, that I have personally examined and am familiar with the information submitted
herein and, based upon my inquiry of those individuals immediately responsible for
obtaining the information, I believe that the information is true, accurate, and complete.
I am aware that there are significant penalties, both civil and criminal, for submitting
false information, including possible fines and imprisonment."
(b) Annual Clean Energy Resource Report. The Department shall produce and make
available to the public an annual report that summarizes information submitted to the
Department by retail sellers subject to 310 CMR 7.75(4) in the annual compliance filings
submitted to the Department pursuant to 310 CMR 7.75(6)(b). Such report shall include
non-confidential data that provides the following:
1. The extent to which the retail sellers complied with the minimum clean energy
standard, both separately and combined;
2. The extent to which the retail sellers used standard compliance, banked compliance,
and alternative compliance, in meeting the minimum standards; and
3. The names, locations, and types of clean generation and clean existing generation
from which the retail sellers, as an aggregate, obtained the clean energy attributes used
in meeting the minimum standards.
4. The total amount of electrical energy sales to end-use customers reported or should
have reported pursuant to 310 CMR 7.75(6)(b)1., expressed in MWh and, beginning with
the report for 2019, as a percentage of the total electrical energy sales to end use
customers provided in the report for 2018.
(c) Greenhouse Gas Emissions Reporting.
1. Each retail seller shall report annually to the Department its MWh sold and associated
greenhouse gas emissions. The first required reporting year for retail sellers which are
new competitive suppliers is the first year after 2017 in which they sell electricity in
Massachusetts. Biogenic and non-biogenic greenhouse gas emissions shall be reported
separately. This report shall be on a form provided by the Department.
2. Deadlines.
a. Beginning with 2018 calendar year generation, retail sellers subject to 310 CMR
7.75(4) shall report the MWh required in 310 CMR 7.75(9)(c)4.a. through c. on a
form provided by the Department no later than the first day of July after the calendar
year in which the MWh were generated.
b. Beginning with 2018 calendar year emissions, the annual GHG emissions report
shall be submitted no later than the 15th day of the second September following each
calendar year. The report shall be submitted using the final annual emission factors
provided by the Department for the purpose of calculating greenhouse gas emissions
pursuant to 310 CMR 7.75(9)(c)3.
c. In order to finalize the annual biogenic and non-biogenic emission factors, the
Department shall:
i. post draft annual emission factors, including methodologies and data sources,
on its website for public comment for 30 days and notify retail sellers of the
posting and the deadline for submittal of public comment; and
ii. post final annual emission factors, including methodologies and data
sources, on its website.
d. Beginning with 2018 calendar year generation, MEDs and MLBs choosing to
report under 310 CMR 7.75(9)(c)5.b. and c. shall submit those reports on a form
provided by the Department no later than the 15th day of November after the calendar
year in which the MWh were generated.
3. For the report required in 310 CMR 7.75(9)(c)2.b., all retail sellers shall use the
following formula to calculate greenhouse gas emissions:
GHG = (EF * MWh / 2000 pounds per short ton) + emissions reported in 310 CMR
7.75(9)(c)6.
Where:
GHG
= Short tons of greenhouse gases (in carbon dioxide equivalents) associated
with electricity sold in MA in a particular calendar year.
EF
= Emission factors supplied by the Department each year for biogenic and non-
biogenic greenhouse gas emissions (pounds carbon dioxide equivalents per
MWh).
MWh
= Annual electricity consumed by customers in a particular calendar year,
increased to account for the portion of electricity lost during transmission and
distribution (line losses), as reported pursuant to 310 CMR 7.75(6)(b)1. or
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310 CMR - 250.102.76.43
310 CMR 7.75(9)(c)5.a., less the sum of certificates reported pursuant to
310 CMR 7.75(9)(c)4.b. and c. or MWh reported pursuant to 310 CMR
7.75(9)(c)5.b. and c.
4. Source of Megawatt Hour and Emissions Data for Retail Sellers Subject to 310 CMR
7.75(4).
a. In calculating biogenic and non-biogenic greenhouse gas emissions, retail sellers
shall report the same number of MWh used to calculate any CES certificates
obligation under 310 CMR 7.75(6)(b)1., inclusive of line losses.
b. Retail sellers shall report, by fuel and by state or province, the number of emitting
and non-emitting MWh of electricity generated by emitting and non-emitting
electricity generators represented by GIS renewable energy certificates or clean
energy certificates retired in such seller's NEPOOL GIS Massachusetts Retail
Subaccount, as defined in the NEPOOL GIS Operating Rules.
c. If the number of GIS certificates retired in a retail seller's NEPOOL GIS
Massachusetts Retail Subaccount and reported pursuant to 310 CMR 7.75(9)(c)4.b.
are greater than the MWh reported pursuant to 310 CMR 7.75(9)(c)4.a., the retail
seller shall indicate, on the 310 CMR 7.75(9)(c)4.b. report, which certificates will be
excluded from GHG reporting so that the number of certificates does not exceed the
MWh reported.
5. Source of Megawatt Hour and Emissions Data for Retail Sellers That Are MEDs or
MLBs.
a. In calculating biogenic and non-biogenic greenhouse gas emissions, MEDs and
MLBs shall use the same number of MWh reported in the annual return to the
Department of Public Utilities, inclusive of line losses.
b. Optional MED and MLB Reporting of Non-emitting Electricity. MEDs and
MLBs may choose to subtract any MWh of electricity generated by non-emitting
electricity generators from the amount of MWh reported in 310 CMR 7.75(9)(c)5.a.,
if such non-emitting MWh are reported in the annual report due under 310 CMR
7.75(9)(c)1., and provided the following criteria are met:
i. for MWh neither owned nor contracted for, a report is provided from
NEPOOL GIS showing that such non-emitting 225 CMR 14.00- or 225 CMR
15.00-eligible certificates are retired in the MED's or MLB's NEPOOL GIS
Massachusetts Retail Subaccount or are transferred to the Reserved Certificate
account, as defined in the NEPOOL GIS Operating Rules, or
ii. for MWh owned or contracted for, the MED or MLB:
A. reports MWh by fuel and by state or province;
B. provides information from the NEPOOL GIS showing that the
certificates associated with the non-emitting MWh of electricity were
unsettled certificates whose attributes were aggregated in residual mix
certificates, or are retired in the MED's or MLB's NEPOOL GIS
Massachusetts Retail Subaccount or are transferred to the Reserved
Certificate account, as defined in the NEPOOL GIS Operating Rules; and
C. for contracted generators, the MED or MLB provides a copy of the
contract or contracts establishing that it has purchased electricity from such
generators and reports such MWh.
c. Optional MED and MLB Reporting of Emitting Electricity. MEDs and MLBs
may choose to report calculations of biogenic and non-biogenic greenhouse gas
emissions, based on the methodology provided in 310 CMR 7.75(9)(c)6., if such
emitting MWh are reported in the annual report due under 310 CMR 7.75(9)(c)1.,
and provided the following criteria are met:
i. for MWh neither owned nor contracted for, a report is provided from
NEPOOL GIS showing that such emitting 225 CMR 14.00- or 225 CMR
15.00-eligible certificates are retired in the MED's or MLB's NEPOOL GIS
Massachusetts Retail Subaccount, as defined in the NEPOOL GIS Operating
Rules, or
ii. for MWh owned or contracted for, the MED or MLB:
A. reports MWh by fuel and by state or province;
B. provides information from the NEPOOL GIS showing that the
certificates associated with the emitting MWh of electricity were unsettled
certificates whose attributes were aggregated in residual mix certificates, or
are retired or reserved in the MED's or MLB's NEPOOL GIS Massachusetts
Retail Subaccount or are transferred to the Reserved Certificate account, as
defined in the NEPOOL GIS Operating Rules; and
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310 CMR - 250.102.76.44
C. for contracted generators, the MED or MLB provides a copy of the
contract or contracts establishing that the MED or MLB has purchased
electricity from such generators.
d. The total of all optional non-emitting and emitting MWh reported under
310 CMR 7.75(9)(c)5.b. and c. shall not be greater than the MWh reported in
310 CMR 7.75(9)(c)5.a.
6. Carbon dioxide, methane and nitrous oxide emissions from any emitting electricity
generator shall be reported as follows:
GHGi
= (EFi * MWhi / 2000 pounds per short ton)
Where:
GHGi
= Short tons of greenhouse gases for each emitting fuel type i (in carbon
dioxide equivalents) associated with electricity sold in MA in a particular
calendar year.
EFi
= Emission factors supplied by the Department each year for biogenic and
non-biogenic greenhouse gas emissions for each emitting fuel type i (pounds
carbon dioxide equivalents per MWh).
MWhi = as reported for fuel type i pursuant to 310 CMR 7.75(9)(c)4.b.
(d) The Department may specify the format and process by which any submission required
pursuant to 310 CMR 7.75 shall occur, including electronic submission requirements. The
Department may specify that certain submissions required pursuant to 310 CMR 7.75 be
transmitted electronically to DOER, as the Department's agent instead of, or in addition to,
the Department.
(10) Not later than December 31, 2017, the Department shall complete a review, including an
opportunity for public comment, of options for including generators that meet all requirements
of 310 CMR 7.75, except for the commercial operation date requirements in 310 CMR
7.75(7)(a)2. and (b)1., in the clean energy standard. This review shall also examine options for
including annual standards for MEDs and MLBs in the clean energy standard.
(11) Not later than December 31, 2021,and every ten years thereafter, the Department shall
complete a review, including an opportunity for public comment on the program review, of the
requirements of 310 CMR 7.75 to determine whether the program should be amended. This
review shall evaluate projected clean energy credit supply and costs, and any other information
relevant to review of the program.
(12) Inspection and Record Retention.
(a) Document Inspection. The Department may audit the accuracy of all information
submitted pursuant to 310 CMR 7.75. The Department may request and obtain from any
owner, operator or authorized agent of a clean generation unit or clean existing generation
unit, and from any retail seller, information that the Department determines necessary to
monitor compliance with and enforcement of 310 CMR 7.75.
(b) Audit and Site Inspection. Upon reasonable notice to a retail seller or to a clean
generation unit owner, operator or authorized agent, the Department may conduct audits,
which may include inspection and copying of records and/or site visits to a clean energy
generation unit or clean existing generation unit, or a retail seller's facilities including, but
not limited to, all files and documents that the Department determines are related to
compliance with 310 CMR 7.75.
(c) Record Retention. All documentation used to comply with any provision of 310 CMR
7.75 shall be retained for five years and provided to the Department electronically or in hard
copy as requested by the Department.
(13) Enforcement.
(a) If a retail seller that is not an MED or MLB does not comply with the requirements of
310 CMR 7.75(4) and (5), then such retail seller shall be deemed to have caused air pollutant
emissions releases to the environment without the approval or authorization of the
department.
(b) The requirements of 310 CMR 7.75 shall be enforced in accordance with applicable
federal and Massachusetts law including, but not limited to, the issuance of an administrative
order or civil administrative penalties pursuant to M.G.L. c. 21A, § 16, 310 CMR 5.00:
Administrative Penalty, M.G.L. c. 111, §§ 2C, 142A through 142E, and M.G.L. c. 21N,
§ 7(d).
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310 CMR - 250.102.76.45