Eligibility Criteria for RPS Class II Generation Units

Eligibility Criteria. A Generation Unit may qualify as an RPS Class II Generation Unit subject to the limitations in 225 CMR 15.05. (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 15.05(1)(a)1. through 10. 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 II Renewable Fuel. 5. Landfill methane gas, provided that such gas is collected and conveyed directly to the Generation Unit without use of facilities used as common carriers of natural gas. 6. Hydroelectric. A Generation Unit that uses Hydroelectric Energy may qualify as an RPS Class II Generation Unit, subject to the limitations in 225 CMR 15.05(1)(a)6. a. The Generation Unit has a nameplate capacity up to 7.5 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 15.05(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 15.05(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 Statement of Qualification 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 15.05(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. Waste to Energy. A Generation Unit that uses Waste Energy may qualify as an RPS Class II Generation Unit subject to the following limitations: a. Has received approval from the MassDEP of the Unit's participation in or operation of an authorized recycling program; b. Maintains participation in or operation of such recycling program and confirms this maintenance by submitting an annual report to the Department and MassDEP of its compliance; c. Complies with the applicable requirements of 310 CMR 7.08(2): Municipal Waste Combustors; and d. Complies with the applicable requirements of 310 CMR 19.000: Solid Waste Management. 8. Low-emission, biomass power conversion technologies using an Eligible Biomass Fuel. A Generation Unit may qualify as an RPS Class II Generation Unit, provided it uses an Eligible Biomass Fuel, subject to the limitations in 225 CMR 15.05(1)(a)8. a. Pursuant to St. 2022, c. 179, §§ 33 through 36 and § 88, 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: Qualification Process for RPS Class I, Solar Carve-out Renewable Generation Units, and Solar Carve-out II Renewable Generation Units. 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. d. 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 utilizing an Eligible Biomass Woody Fuel or Manufactured Biomass Fuel that has over 95% or more 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. e. 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 15.05(1)(a)8.d., shall not be eligible to report RPS Class II Renewable Generation Attributes to the NEPOOL GIS for that calendar quarter. f. 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. 9. Marine or Hydrokinetic Energy. 10. Geothermal Energy. (b) Commercial Operation Date. The Commercial Operation Date shall be on or before December 31, 1997. (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 following limitations: 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 inside the ISO-NE Control Area and have a nameplate capacity of 25 megawatts or less. 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 II Renewable Fuel, whether by co-firing such fuels or by using a Blended Fuel, may qualify as RPS Class II Renewable Generation, provided the Generation Unit meets the eligibility requirements of 225 CMR 15.05, subject to the limitations in 225 CMR 15.05(2). (a) The portion of the total electrical energy output that qualifies as RPS Class II Renewable Generation in a given time period shall be equal to the ratio of the net heat content of the Eligible RPS Class II Renewable Fuel consumed to the net heat content of all fuel consumed in that time period. (b) 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 of an advanced biomass Power Conversion Technology as set forth in 225 CMR 15.05(1)(a)8. (c) 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. (d) 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. (e) The provisions of 225 CMR 15.05(2) 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 II Renewable Fuel. (3) 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 II Generation Unit located in a Control Area adjacent to the ISO-NE Control Area that qualifies as RPS Class II Renewable Generation shall meet the requirements in Rule 2.7(c) and all other relevant sections of the NEPOOL GIS Operating Rules or any successor rule, and the following requirements: (a) The Generation Unit Owner or Operator shall provide documentation, satisfactory to the Department, that the RPS Class II Renewable Generation Attributes or RPS Class II Waste Energy 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, engage in the process of importing RPS Class II Renewable Generation into the ISO-NE Control Area for the creation of RPS Class II 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 II Generation Unit outside the ISO-NE Control Area that can qualify as RPS Class II Renewable Generation at the NEPOOL GIS during each hour is limited to the lesser of the RPS Class II Renewable Generation actually produced by the Unit or the RPS Class II Renewable Generation actually scheduled and delivered into the ISO-NE Control Area. (4) 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 15.05, may receive a single Statement of Qualification and be treated as a single RPS Class II Renewable Generation Unit under the following criteria and procedures: (a) Each Generation Unit in such Aggregation must use the same fuel, energy resource and technology as all other Generation Units in the Aggregation. (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) of those Rules, or any successor rules. (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 as part of an aggregated total for the Aggregation, by 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. 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 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 15.05(1)(a)8.c. shall be subject the following: 1. 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 15.05(1)(a)8.c., shall not be eligible to report RPS Class II Renewable Generation Attributes to the NEPOOL GIS for that calendar quarter. 2. A Generation Unit utilizing Eligible Biomass Woody Fuel or Manufactured Biomass Fuel that has more than 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 II 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.