Eligibility Criteria for APS Alternative Generation Units

(1) Eligibility Criteria. A Generation Unit may qualify as an APS Alternative Generation Unit subject to the limitations in 225 CMR 16.05. (a) Technologies. The Generation Unit shall use one or more of the technologies listed in 225 CMR 16.05(1)(a)1. through 6. 1. Gasification. This technology is no longer eligible because it was eliminated pursuant to M.G.L. c. 25A, § 11F½. 2. Combined Heat and Power. A Generation Unit that is operated to produce Combined Heat and Power may qualify as an APS Alternative Generation Unit, subject to the limitations in 225 CMR 16.05(1)(a)2. a. CHP Metering and Reporting Requirements. A CHP Unit shall provide for the metering of electrical energy generated, Useful Thermal Energy produced, and fuel consumed; for calculating the net quantity of MWh for which Alternative Energy Attributes are qualified, and for reporting to the NEPOOL GIS of that net qualified MWh quantity in a manner prescribed in 225 CMR 16.05(1)(c), for each quarter of the Compliance Year. Monitoring, reporting, and calculating of electrical energy and Useful Thermal Energy produced in that quarter shall be expressed in MWh, and the total of all fuel and any other energy consumed in that quarter is calculated using the energy content of the fuel based on higher heating value. b. Determination of APS Alternative Energy Attributes. The Generation Unit shall be provided APS Alternative Energy Attributes as specified in 225 CMR 16.05(1)(a)2.b. i. A CHP Unit which produced neither electrical nor Useful Thermal Energy before January 1, 2008, shall be provided APS Alternative Energy Attributes equal to the result, if positive, of the following calculation: take the sum of: (i) the electrical energy generated divided by the overall efficiency of electrical energy delivered to the end-use from the electrical grid (which efficiency is equal for this purpose to 0.33); and (ii) the Useful Thermal Energy divided by the overall efficiency of thermal energy delivered to the end-use from a standalone heating unit (which efficiency is equal for this purpose to 0.80); and subtract from this sum the total of all fuel and any other energy consumed by the CHP Unit in that quarter expressed in MWh and calculated using the energy content of the fuel based on its higher heating value. ii. A CHP Unit which produced either or both electrical and Useful Thermal Energy before January 1, 2008, and added either or both Incremental Useful Thermal Energy or Incremental Electrical Energy after such date, shall be provided APS Alternative Energy Attributes equal to the result, if positive, of the following calculation: take the sum of: (i) the Incremental Electrical Energy generated divided by the overall efficiency of electrical energy delivered to the end-use from the electrical grid (which efficiency is equal for this purpose to 0.33); and (ii) the Incremental Useful Thermal Energy divided by the overall efficiency of thermal energy delivered to the end-use from a standalone heating unit (which efficiency is equal for this purpose to 0.80); and subtract from this sum the total of all Incremental Fuel and any other incremental energy consumed by the CHP Unit in that quarter expressed in MWh and calculated using the energy content of the fuel based on its higher heating value. c. Energy Deliverability Requirement. The CHP Unit shall deliver Useful Thermal Energy to an end-use load located in the Commonwealth of Massachusetts. 3. Flywheel Storage Unit. A Flywheel Storage Unit that stores and discharges electrical energy may qualify as an APS Alternative Generation Unit, subject to the limitations in 225 CMR 16.05(1)(a)3. a. The Flywheel Storage Unit must participate in the ISO-NE regulation market. b. The portion of the electrical energy output of a Flywheel Storage Unit that may qualify for APS Alternative Generation shall be calculated each quarter of the Compliance Year as 65% of the electrical energy discharged from the Flywheel Storage Unit during the quarter. c. The electrical energy output, the calculation made to derive the net quantity of MWh for which Alternative Energy Attributes are qualified and that net MWh quantity shall be reported to the NEPOOL GIS as specified in 225 CMR 16.05(1)(c). 4. Paper-derived Fuel. This technology is no longer eligible because it was eliminated pursuant to M.G.L. c. 25A, § 11F½. 5. Efficient Steam Technology. (Reserved) 6. APS Renewable Thermal Generation Unit. A Generation Unit that uses one or more of the technologies provided in 225 CMR 16.05(1)(a)6.a. and generates Useful Thermal Energy may qualify as an APS Alternative Generation Unit, subject to the limitations in 225 CMR 16.05(1)(a)6.a. and the provisions in 225 CMR 16.05(4). a. Eligible APS Renewable Thermal Generation Unit technologies and standards: i. Air-source Heat Pump. An air-source heat pump Generation Unit uses compression and evaporation to transfer thermal energy from the ambient outdoor environment to a thermal load as Useful Thermal Energy. The Generation Unit must be designed to operate effectively in cold climates, such that the air-source heat pump provides meaningful net annual reductions in conventional energy use. Air-source heat pumps are provided APS Alternative Energy Attributes only when operating in a heating mode; that is, when transferring thermal energy from the ambient outdoor environment to a thermal load. An applicant must demonstrate to the satisfaction of the Department that the air-source heat pump is the primary source of heating for the residential Generation Unit, building, or process it serves, and meets the design criteria, as provided in the Department's Guideline on Metering and Calculating the Useful Thermal Output of Eligible Renewable Thermal Generation Units. ii. Ground Source Heat Pump. A ground source heat pump Generation Unit uses compression and evaporation to transfer thermal energy from the ambient underground or water environment to a thermal load as Useful Thermal Energy. The Generation Unit must receive all applicable permits, approvals, and registrations from the MassDEP. An applicant must demonstrate to the satisfaction of the Department that it meets the design criteria, as provided in the Department's Guideline on Metering and Calculating the Useful Thermal Output of Eligible Renewable Thermal Generation Units. Ground or water-source heat pumps are provided APS Alternative Energy Attributes only when operating in a heating mode; that is, when transferring thermal energy from the ambient underground or water environment to a thermal load. iii. Deep Geothermal Heat Exchange. A deep geothermal heat exchange Generation Unit uses hot geological formations deep below the ground surface to produce heat through direct heat exchange. The Generation Unit must receive all applicable permits, approvals, and registrations from the MassDEP, and must demonstrate to the Department it can operate at or above minimum performance requirements as provided in the Department's Guideline on Metering and Calculating the Useful Thermal Output of Eligible Renewable Thermal Generation Units. iv. Solar Thermal. A solar thermal Generation Unit uses collectors, to transfer solar irradiation energy to a working fluid, as well as a pump or fan to actively circulate the air, water, or other working fluid through the collectors. Solar thermal collectors must have a performance certification issued by the Solar Rating and Certification Corporation, International Association of Plumbing and Mechanical Officials, or other performance certification approved by the Department. Unglazed flat plate collectors for pool heating are not eligible to qualify as an APS Renewable Thermal Generation Unit. v. Woody Biomass. A woody biomass Generation Unit must use automatically fed boilers or furnaces, and must utilize either Eligible Biomass Woody Fuel, or bio-oil refined through pyrolysis or biogas derived from Eligible Biomass Woody Fuel. Woody biomass Generation Units must meet the provisions regarding efficiency, system performance, use of thermal energy storage, particulate matter and carbon monoxide emissions, fuel supply sustainability, fuel quality, and greenhouse gas emissions in 225 CMR 16.06(4)(g). and the Department's Guideline on Biomass, Biogas and Biofuels for Eligible Renewable Thermal Generation Units, as well as receive all applicable permits from the MassDEP. vi. Biogas. A biogas Generation Unit uses Eligible Biogas Fuel derived from either an Anaerobic Digester, as that term is defined in 310 CMR 7.70(10)(b): Definitions, or a landfill that has received all applicable permits from the MassDEP or comparable environmental agency responsible for regulating such facilities. Eligible Biogas Fuel must be conveyed directly from its source to the biogas Generation Unit in a dedicated pipeline. Biogas Generation Units may co-fire with other fuels subject to the provisions in 225 CMR 16.05(2), and must meet quality and performance criteria provided in the Department's Guideline on Biomass, Biogas and Biofuels for Eligible Renewable Thermal Generation Units. vii. Liquid Biofuels. A liquid biofuel Generation Unit must use Eligible Liquid Biofuels. Liquid biofuel Generation Units may co-fire with other fuels subject to the provisions in 225 CMR 16.05(2), but shall contain at least 10% by volume Eligible Liquid Biofuel. The liquid biofuels Generation Unit must meet quality and performance criteria provided in the Department's Guideline on Biomass, Biogas and Biofuels for Eligible Renewable Thermal Generation Units, must receive all applicable permits from the MassDEP, and is subject to the provisions in 225 CMR 16.05(4)(f). viii. Compost Heat Exchange System. A Generation Unit that uses a facility to recover or exchange heat from the aerobic biodegradation of organic matter during the production of compost. b. Determination of APS Alternative Generation Attributes. Each Generation Unit listed in 225 CMR 16.05(1)(a)6. shall earn APS Alternative Energy Attributes as specified in 225 CMR 16.05(1)(a)6.b., 225 CMR 16.05(4), and in the Department's Guideline on Metering and Calculating the Useful Thermal Output of Eligible Renewable Thermal Generation Units, as follows: i. An APS Renewable Thermal Generation Unit shall earn APS Alternative Energy Attributes for each MWh of net Useful Thermal Energy generated on a quarterly basis. ii. Earned APS Alternative Energy Attributes shall be for the generation of Useful Thermal Energy, net of any fossil fuel energy and electrical energy input to the APS Renewable Thermal Generation Unit necessary for its operation, however, the Department may exclude small energy uses including, but not limited to, fans, pumps, meters, controls, and data collection. The Department shall prescribe the calculations for netting energy input from the Useful Thermal Energy in the Department's Guideline on Metering and Calculating the Useful Thermal Output of Eligible Renewable Thermal Generation Units. iii. Notwithstanding 225 CMR 16.05(1)(a)6.b.i., APS Alternative Energy Attributes for an APS Renewable Thermal Generation Unit that meets the criteria of a small Generation Unit, as defined in the Department's Guideline on Metering and Calculating the Useful Thermal Output of Eligible Renewable Thermal Generation Units, may be pre-minted in one calendar quarter in a quantity equal to the APS Alternative Generation Attributes that the small Generation Unit is deemed to generate over its qualification period; as prescribed in 225 CMR 16.05(4)(c). c. Energy Deliverability Requirement. An APS Renewable Thermal Generation Unit shall deliver Useful Thermal Energy to an end-use load located in the Commonwealth of Massachusetts. d. Combination of Funding. If a Generation Unit receives funding in an amount exceeding 80% of the Generation Unit's total construction and installation costs from a grant or incentive program administered by the Department or any other state agency prior to December 29, 2017, the Generation Unit shall not be eligible to qualify in the APS. 7. Fuel Cell. A Fuel Cell Generation Unit that produces electricity and/or Useful Thermal Energy may qualify as an APS Alternative Generation Unit, subject to the limitations in 225 CMR 16.05(1)(a)7. a. Source of Hydrogen. A Fuel Cell Generation Unit that uses hydrogen generated through the use of propane shall be required to certify that the propane was manufactured using only natural gas. b. Overall Efficiency. To qualify as an APS Alternative Generation Unit, a Fuel Cell Generation Unit shall be more efficient than the current average for emitting locational marginal units as based on the heat rates for these units shown in the most recent ISO-NE Electric Generator Air Emissions Report available in the same year in which a Fuel Cell Generation Unit submits an SQA. A Fuel Cell Generation Unit that generates both electricity and Useful Thermal Energy must have an overall efficiency of at least 55%. The overall efficiency of a Fuel Cell Generation Unit shall be calculated as the sum of the MWh of electricity generated, excluding any electricity utilized for parasitic load, plus the MWh of Useful Thermal Energy, divided by the total higher heating MWh value of fuel consumed by the Fuel Cell Generation Unit. Supporting operating data, confirming that the Fuel Cell Generation Unit continues to meet the Overall Efficiency requirement in 225 CMR 16.06(1)(a)7.b., must be submitted to the Department on an annual basis in order for the Fuel Cell Generation Unit to maintain its Statement of Qualification. c. Attribute Multiplier. A Fuel Cell Generation Unit shall earn 1½ APS Alternative Energy Attributes for each MWh of electricity and/or 3,412,000 British thermal units of net Useful Thermal Energy generated. A Fuel Cell Generation Unit shall retain the multiplier, provided at its time of qualification, as long as it continues to meet all other applicable eligibility criteria in 225 CMR 16.05. d. Metering Requirements. The net energy output from a Fuel Cell Generation Unit shall be metered according to the specifications in the Department's Guideline on Metering and Calculating the Energy Output of Eligible Fuel Cell Generation Units and verified by an independent Third Party Meter Reader, as defined in Rule 2.5(j) of the NEPOOL GIS Operating Rules and approved by the Department. The APS Alternative Generation Attributes reported to the NEPOOL GIS by an independent Third Party Meter Reader shall be the amount that is qualified for Alternative Energy Attributes, as specified in 225 CMR 16.05. This amount will be inclusive of the application of any multiplier provided in 225 CMR 16.05(1)(a)7.c. 8. Thermal Waste-to-energy. A Thermal Waste-to-energy Generation Unit may qualify as an APS Alternative Generation Unit and shall be metered according to the specifications in the Department's Guideline on Metering and Calculating the Useful Thermal Output of Eligible Renewable Thermal Generation Units. (b) Commercial Operation Date. With the exception of Thermal Waste-to-energy Generation Units, an APS Alternative Generation Unit's Commercial Operation Date shall be on or after January 1, 2008, however, for an APS Renewable Thermal Generation Unit, the Commercial Operation Date shall be on or after January 1, 2015, and for a Fuel Cell Generation Unit, the Commercial Operation Date shall be on or after January 1, 2017. (c) Metering. Except as provided in 225 CMR 16.05(4)(b), the APS Alternative Generation from a Generation Unit shall be verified 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. The APS Alternative Generation reported to the NEPOOL GIS by a Third Party Meter Reader shall be the net amount that is qualified for Alternative Energy Attributes, as specified in 225 CMR 16.05. (d) Location. The Generation Unit must be located within the ISO-NE Control Area, except where otherwise specified in 225 CMR 16.00, and subject to the limitations in 225 CMR 16.05(1)(d). 1. Off-grid Generation. If the Generation Unit produces Off-grid Generation, such 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 Unit must be interconnected to the electric grid in Massachusetts. (e) Net Carbon Dioxide Emissions Rate. A Generation Unit that generates electricity shall not exceed a net site carbon dioxide emissions rate equal to the average emissions rate of the current average value for emitting locational marginal units as shown in the most recent ISO-NE Electric Generator Air Emissions Report available in the same year in which an SQA is submitted for the Generation Unit. In quantifying the net site carbon dioxide emissions, the emissions attributable to any site fuel consumption displaced by the Useful Thermal Energy generated by the Generation Unit is to be subtracted from the emissions due to the direct consumption of fuel by the Generation Unit. The monitoring, calculation, and reporting of the net carbon dioxide emissions rate shall be subject to verification by an independent consultant acceptable to the Department and, in consultation with the MassDEP and at the expense of the Unit's Owner or Operator. An APS Renewable Thermal Generation Unit using Eligible Biomass Fuel shall not be subject to the net carbon dioxide emissions rate in 225 CMR 16.06(1)(e), but instead subject to the net greenhouse gas emission requirement in 225 CMR 16.06(4)(i). (f) Eligibility of RPS Class I Renewable Generation Units, and RPS Class II Renewable Generation Units. A Generation Unit that is qualified as an RPS Class I Renewable Generation Unit pursuant to 225 CMR 14.00: Renewable Energy Portfolio Standard — Class I or as an RPS Class II Renewable Generation Unit pursuant to 225 CMR 15.00: Renewable Energy Portfolio Standard – Class II may also be qualified as an APS Alternative Generation Unit provided it meets all eligibility criteria in 225 CMR 16.00. (g) Reclassification of APS Alternative Generation Units. An APS Alternative Generation Unit that meets the eligibility to qualify more than one type of APS Alternative Generation Unit shall only qualify as one type of APS Alternative Generation Unit, which the Owner shall designate in its Statement of Qualification Application. An APS Alternative Generation Unit shall have the option to switch the type of APS Alternative Generation Unit for which it has received a Statement of Qualification one time during the duration of its qualification period. (2) Co-firing Waiver. A portion of the electrical energy or Useful Thermal Energy output of a Generation Unit that uses an APS Ineligible Energy Source with another fuel may qualify as APS Alternative Generation provided the Generation Unit meets the eligibility requirements of 225 CMR 16.05, subject to the limitations in 225 CMR 16.05(2). (a) The percentage of the total electrical energy or Useful Thermal Energy output that qualifies as APS Alternative Generation in a given time period shall be equal to one minus the ratio of the net heat content of the APS Ineligible Energy Source consumed to the net heat content of all fuel consumed in that time period. (b) If co-firing an APS Ineligible Energy Source with another fuel, the entire Generation Unit must demonstrate to the satisfaction of the Department in consultation with the MassDEP that the Unit meets or will meet the emission performance standards, including the net carbon dioxide emissions rate, that are or would be required by the MassDEP for comparably-fueled Units within Massachusetts, including the standards specified for the technology type of the Unit as set forth in 225 CMR 16.05(1)(a) and (e). 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 DOER and the MassDEP with assistance in determining whether this criterion is or will be met by the Unit. (c) The Generation Unit must provide a fuel supply plan that specifies each and every fuel that it intends to use, in what relative proportions in co-firing, and with what individual input heat values. Such plan shall include the procedures by which the Unit will document to the satisfaction of the Department its compliance with the plan. (d) The provisions of 225 CMR 16.05(2) shall not apply to the incidental use of an APS Ineligible Energy Source solely for the purpose of cold starting a Generation Unit that otherwise exclusively uses other fuels. (3) 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 16.05, may receive a single SQ and be treated as a single APS Alternative Generation Unit under the following criteria and procedures: (a) Each Generation Unit in such Aggregation must use the same technology as all other 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 and, in the case of a CHP Unit, the Useful Thermal Energy output and fuel input, of each 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 the NEPOOL GIS Operating Rules. (d) The electrical energy output, or the Alternative Energy Attribute qualified portion of such output as provided in 225 CMR 16.05(1)(a)2.a., 225 CMR 16.05(1)(a)3., or 225 CMR 16.05(1)(a)6., 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. (4) Special Provisions for APS Renewable Thermal Generation Units. A Generation Unit that meets the eligibility provisions under 225 CMR 16.05(1)(a)6., shall be subject to the following provisions: (a) Size Classification. APS Renewable Thermal Generation Units shall be classified as small, intermediate, or large based on the rated capacity of the system. If an APS Renewable Thermal Generation Unit consists of several individual and separate units, the individual unit's capacities shall be summed and the total capacity will be considered against the size threshold. In the case of a combination of solar thermal technologies and other technologies, the thresholds shall be applied separately to the solar and non-solar units. APS Renewable Thermal Generation Unit size classifications are as follows: Classification Small Intermediate Large AEC calculation basis Calculated net renewable thermal output Calculated net renewable thermal based on indirect metering Calculated net renewable thermal output based on direct metering of fuel input Metered net renewable thermal output Solar thermal: evacuated tube and flat plate solar hot water Collector surface area less than or equal to 660 sq ft Collector surface area between 660 and 4,000 sq ft - Collector surface area greater than or equal to 4,000 sq ft Solar thermal: solar hot air - Collector surface area less than or equal to 10,000 sq ft - Collector surface area greater than 10,000 sq ft Solar sludge dryer - - - All Eligible Biomass Fuel - - Capacity less than or equal to 1,000,000 Btu per hour Capacity greater than 1,000,000 Btu per hour Compost heat exchange system - - - All Air source heat pump: electric motor or engine driven Output capacity less than or equal to 134,000 Btu per hour - Output capacity between 134,000 and 1,000,000 Btu per hour Output capacity greater than or equal to 1,000,000 Btu per hour Ground source heat pump Output capacity less than or equal to 134,000 Btu per hour - Output capacity between 134,000 and 1,000,000 Btu per hour Output capacity greater than or equal to 1,000,000 Btu per hour Deep geothermal - - - All Small Generation Units shall have the option to be classified as either intermediate or large Generation Units if they wish to forgo pre-minting and instead meter their Useful Thermal Energy as required by the Guideline on Metering and Calculating the Useful Thermal Output of Eligible Renewable Thermal Generation Units - Part 2 (Metering for Intermediate and Large Generation Units). Intermediate Generation Units shall also have the option to be classified as large Generation Units if they wish to meter their Useful Thermal Energy as required by the Guideline on Metering and Calculating the Useful Thermal Output of Eligible Renewable Thermal Generation Units - Part 2 (Metering for Intermediate and Large Generation Units). Generation Units which opt to change their size classification must notify the Department in their Statement of Qualification Application and must remain their chosen size classification for the duration of their qualification period. (b) Metering Requirements. The net Useful Thermal Energy output from an APS Renewable Thermal Generation Unit shall be metered according to the specifications in the Department's Guideline on Metering and Calculating the Useful Thermal Output of Eligible Renewable Thermal Generation Units and verified by an independent Third Party Meter Reader, as defined in Rule 2.5(j) of the NEPOOL GIS Operating Rules and approved by the Department. The APS Alternative Generation Attributes reported to the NEPOOL GIS by an independent Third Party Meter Reader shall be the amount as specified in 225 CMR 16.05(1)(a)6.b. This amount will be inclusive of any netting of energy use by the APS Renewable Thermal Generation Unit as prescribed in 225 CMR 16.05(1)(a)6.b.iii., and the application of any multiplier in the Department’s Guideline on Multipliers for Renewable Thermal Generation Units. 1. An APS Renewable Thermal Generation Unit that uses more than one eligible technology in 225 CMR 16.05(1)(a)6.a. is required to use the same independent Third Party Meter Reader for all technologies. 2. Each APS Renewable Thermal Generation Unit is required to have its own individual NEPOOL GIS asset. An APS Renewable Thermal Generation Unit that uses more than one eligible technology in 225 CMR 16.05(1)(a)6.a. is required to have a NEPOOL GIS asset for each technology. APS Renewable Thermal Generation Units that utilize the same technology and are located in the same state may qualify as an Aggregation and share a NEPOOL GIS asset. 3. An APS Renewable Thermal Generation Unit that meets the criteria of a small Generation Unit or an intermediate as prescribed in 225 CMR 16.05(1)(b)(ii) shall be exempt from the metering requirements in 225 CMR 16.05(4)(b) and, instead, be subject to the Small and Intermediate Generation Unit Annual Net Useful Thermal Energy Determination in 225 CMR 16.05(4)(c). (c) Small and Intermediate Generation Unit Annual Net Useful Thermal Energy Determination. An APS Renewable Thermal Generation Unit that meets the criteria of a small or intermediate Generation Unit as prescribed in 225 CMR 16.05(4)(a) may have its annual net Useful Thermal Energy generation output determined by a formula or methodology as prescribed in the Department's Guideline on Metering and Calculating the Useful Thermal Output of Eligible Renewable Thermal Generation Units. This approximation shall be a reasonable determination by the Department to estimate the net Useful Thermal Energy delivered by the APS Renewable Thermal Generation Unit, specifically considering the APS Renewable Thermal Generation Unit's capacity, performance characteristics, and load application being served. The MassCEC will act as the independent verifier for all small Generation Units and intermediate Generation Units using Eligible Biomass Woody Fuel, and will deploy appropriate and reasonable measures to verify ongoing operation of the small Generation Units in line with their estimated net Useful Thermal Energy generation. (d) Pre-minting of APS Alternative Generation Attributes for Small APS Renewable Thermal Generation Units. An APS Renewable Thermal Generation Unit that meets the criteria of a small Generation Unit as prescribed in the Department's Guideline on Metering and Calculating the Useful Thermal Output of Eligible Renewable Thermal Generation Units may be provided all of its APS Alternative Generation Attributes as follows, the APS Renewable Thermal Generation Unit may have all of the APS Alternative Generation Attributes in 225 CMR 16.05(4)(c) pre-minted as APS Alternative Generation Attributes, and may be minted in the first quarter after the APS Alternative Generation Unit's Statement of Qualification or Commercial Operation Date, whichever is later. The volume of pre-minted APS Alternative Generation Attributes shall be equal to 40 times the quarterly volume of the monthly Attributes determined in 225 CMR 16.05(4)(c). (e) Eligibility Criteria for Small Air Source Heat Pumps. All small air source heat pump Renewable Thermal Generation Units, as prescribed in 225 CMR 16.05(4)(a), must meet all of the following requirements: 1. be ENERGY STAR™ certified; 2. meet the Cold Climate Air Source Heat Pump Specification (Version 2.0) published by Northeast Energy Efficiency Partnerships effective January 1, 2017 or any version thereafter; 3. have a variable speed compressor; 4. be part of an Air Conditioning, Heating, and Refrigeration Institute matched system; and 5. have a coefficient of performance greater than or equal to 1.9 at 5°F and a coefficient of performance greater than or equal to 2.5 at 17°F. For new construction, the small air source heat pump Renewable Thermal Generation Unit must supply 100% of the building's total annual heating and cannot have any supplemental, non-renewable heating sources. In retrofit construction or existing buildings, all small air source heat pump Renewable Thermal Generation Units that do not meet the above requirement must be used as the primary source of heat, supply at least 90% of the total annual heating, be integrated to a heating distribution system, capable of distributing produced heat to all conditioned areas of the building, and have a heat-rate capacity at five degrees Fahrenheit that is at least 50% of the nameplate capacity of the existing heating source equipment. (f) Eligibility Criteria for Small Ground Source Heat Pumps. All small ground source heat pumps Renewable Thermal Generation Units, as prescribed in 225 CMR 16.05(4)(a), must meet the following requirements: 1. be certified to the International Organization for Standards Standard 13256-1 Water-source heat pumps — Testing and rating for performance — Part 1: Water-to-air and brine-to-air heat pumps, 1998 or the International Organization for Standards Standard 13256-2 Water-source heat pumps — Testing and rating for performance — Part 2: Water-to-water and brine-to-water heat pumps, 1998; 2. have American Heating and Refrigeration Institute rated operating coefficient of performance and operating energy efficiency ratio equal to or greater than the following: Small Ground Source Heat Pump System Type Cooling Energy Efficiency Ratio Heating Coefficient of Performance Closed loop water to air Open loop water to air Closed loop water to water Open loop water to water 3. be installed by licensed contractors and/or plumbers in accordance with the National Electric Code and manufacturer's specifications and must conform to all applicable municipal, state, and federal codes, standards, regulations, and certifications, as well as program requirements; 4. have blowers that are multi-speed or variable-speed, high-efficiency motors. Motors qualify as energy-efficient if they meet or exceed the efficiency levels listed in the National Electric Manufacturers Association's MG1-1993 publication; 5. use compressors that are two-stage, multi-speed, or variable-speed drives, unless they are water-to-water units. Single-stage water-to-water systems are eligible, provided they include accumulator tanks with the greater of ten gallons of capacity per heating ton or industry/manufacturer recommended best practice; 6. for vertically bored closed-loop systems, Generation Units must have a minimum depth of 150 feet per 12,000 Btu per hour of heating load served by the system; 7. all closed-loop bore grouting must have a grout conductivity equal to or greater than anticipated earth conductivity of the drill site up to one Btu per hour-foot-degree Fahrenheit; 8. have at least 15 feet of separation between closed-loop bore holes; 9. must comply with MassDEP Bureau of Resource Protection Drinking Water Program, Guidelines For Ground Source Heat Pump Wells, and Underground Injection Control Program, December 2013; 10. all open-loop system wells shall be installed in conformance with MassDEP's Private Well Guidelines or MassDEP's Guidelines and Policies for Public Water Systems, whichever is applicable; 11. all system wells shall be installed in conformance with 313 CMR 3.00: Registration of Well Drillers and Filing of Well Completion Reports; 12. standing column wells must include bleed circuits and drywells to maximize thermal efficiency based on available water production; 13. all systems must supply 100% of a building's total annual heating; non-renewable supplemental heat sources are prohibited; and 14. all closed loop systems must be installed and tested in accordance with subsections 4 and 5 in section 1 of the Closed-Loop/Geothermal Heat Pump Systems, Design and Installation Standards, published by the International Ground Source Heat Pump Association, dated 2017. In lieu of the pressure testing described in subsection five in section one of the above-referenced standard, closed loop systems shall be hydrostatically pressure tested in accordance with ASTM Standard F2164 using the test pressure specified by the design engineer for the system. (g) Restrictions and Standards on the Use of Eligible Biomass Woody Fuel. An APS Renewable Thermal Generation Unit using Eligible Biomass Woody Fuel is subject to the following restrictions: 1. Feedstock Requirements. An APS Renewable Thermal Generation Unit using Eligible Biomass Woody Fuel must use a minimum percentage of Eligible Biomass Woody Fuel derived from Forest Derived Residues, Forest-derived Thinnings, Forest Salvage, or residues derived from wood products manufacturing consisting of Clean Wood, as defined in the definition of eligible woody biomass fuel in 225 CMR 16.03. The Department shall set the minimum feedstock requirement in the Department's Guideline on Biomass, Biogas, and Biofuel for Eligible Renewable Thermal Generation Units. 2. Fuel Quality and Unit Control Device Requirements. Generation units shall meet at least one of the following fuel quality specifications: a. A boiler or furnace of less than 3,000,000 Btu per hour rated heat input that utilizes an emission control device (e.g., electrostatic precipitator), subject to the approval of the Department in consultation with MassDEP, does not have to meet the fuel quality specifications in 225 CMR 16.05(4)(g)2.b. The emissions control device shall be designed and operated to ensure that the boiler or furnace does not exceed the applicable particulate matter emission limit in 225 CMR 16.05(4)(g)5. b. A boiler or furnace of less than 3,000,000 Btu per hour rated heat input that does not utilize an emission control device (e.g., electrostatic precipitator) must meet the following fuel quality specifications: Fuel Quality Specifications Pellets Chips Calorific value Greater than 8,000 Btu per pound Greater than or equal to 5,500 Btu per pound Moisture Less than or equal to 8% Less than or equal to 35% Ash content by weight Less than or equal to 1% Less than or equal to 1.5% Chip size (percent retained by a ½ inch mesh screen) Not applicable 75% or adhere to manufacturer’s protocol Chlorides Less than or equal to 300 parts per million Not applicable c. A boiler or furnace of equal to or greater than 3,000,000 Btu per hour rated heat input must receive a MassDEP plan approval pursuant to 310 CMR 7.02(5), which shall dictate fuel quality specifications. 3. Sustainable Forestry 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. 4. System Performance. APS Renewable Thermal Generation Units shall meet fuel conversion efficiency and performance standards achievable by best-in-class commercially-feasible technologies, identified in the following table: Performance Requirement Pellets Chips Thermal efficiency at nominal output Greater than or equal to 85% Higher Heating Value Greater than or equal to 75% Higher Heating Value or Greater than or equal to 80% Lower Heating Value if EN303-5 is used to verify particulate emissions Start up Adhere to manufacturer’s ignition protocol Modulation/shut off The system must automatically modulate to lower output and/or turn itself off when the heating load decreases or is satisfied Pressurized portion of the system Compliant with 522 CMR 4.00: Heating Boilers and Other Heat Storage Sources Thermal storage Required, unless an exception is issued by the Department Fuel storage The system must have covered bulk storage Feedstock conveyance The system must be automatically fed from feedstock storage to the furnace or boiler 5. Thermal Storage. Generation Units shall minimize any significant deterioration of efficiency or air emissions performance due to cycling by applying correctly sized and insulated thermal storage. Thermal storage shall meet the following size thresholds: Lead Boiler System Size (Heat Input) Thermal Storage Required Less than 80,000 Btu per hour 80 gallons Between 80,000 Btu per hour and 119,000 Btu per hour one gallon per 1,000 Btu per hour Between 119,000 Btu per hour and 1,000,000 Btu per hour 119 gallons Greater than 1,000,000 Btu per hour two gallons per 1,000 Btu per hour An Owner or Operator of a Generation Unit may apply for an exception from the requirements in 225 CMR 16.05(4)(g)4. if it can demonstrate to the Department that an inclusion of thermal storage would deteriorate the efficiency or air emissions performance of the Generation Unit, or the system can maintain efficiency and air emission performance at low capacity without thermal storage. 6. Emission Performance Standards. APS Renewable Thermal Generation Units shall meet air emission performance standards that are protective of public health, including standards for particulate matter sized 2.5 microns or less and carbon monoxide, as identified in the following table: A boiler or furnace of less than 3,000,000 Btu per hour rated heat input must meet the applicable emission limits below: Pollutant Pellets/liquid biofuels/biogas Chips Particulate Matter No more than 0.08 lb PM input per 1,000,000 Btu or No more than 0.03 lb PM per 1,000,000 Btu input at sensitive populations No more than 0.10 lb PM per input 1,000,000 Btu or No more than 0.05 lbs total PM input per 1,000,000 Btu if EN303-5 is used to verify emissions or No more than 0.03 lb PM per input 1,000,000 Btu at sensitive populations Carbon monoxide No more than 270 parts per million at 7% oxygen No more than 270 parts per million at 7% oxygen A boiler or furnace of greater than or equal to 3,000,000 Btu per hour rated heat input: Particulate matter, carbon monoxide, and other relevant criteria pollutants MassDEP plan approval required, pursuant to 310 CMR 7.02(5). For the purpose of 225 CMR 16.05(4)(f)5., sensitive populations include schools, hospitals, nursing homes, or additional facilities determined by the Department. 7. Verification of Eligible Biomass Woody Fuel. In order to verify the use of Eligible Biomass Woody Fuel, an APS Renewable Thermal Generation Unit shall report the following to the Department on a quarterly basis: a. Supplier of the fuel; b. Amount of fuel delivered; c. Date of delivery; and d. Fuel quality specifications prescribed in 225 CMR 16.05(4)(g)1., including a certification that any emission control device was operated and maintained in accordance with the manufacturer's specifications in order to comply with the applicable particulate matter emission limit in 225 CMR 16.05(4)(g)5. The Department will review the Department's Guideline on Biomass, Biogas, and Biofuels for Eligible Renewable Thermal Generation Units every two years in consultation with the MassDEP and DCR and update the Guideline where appropriate. The Department will assess the impact of biomass heating on the region's forests in 2018 and 2020, as well as every five years thereafter in coordination with the Forest Impact Assessment under the Renewable Portfolio Standard Class I, as prescribed in 225 CMR 14.06(8)(b)2., and make changes as necessary. The Department will report annually on the aggregate woody biomass fuel (h) Aggregation of Units using Eligible Liquid Biofuels. An APS Renewable Thermal Generation Unit using Eligible Liquid Biofuels or Eligible Liquid Biofuels blended with heating oil shall seek qualification as an APS Renewable Thermal Generation Unit only as part of an Aggregation, as provided for in 225 CMR 16.05(3). (i) Greenhouse Gas Emission Reduction. APS Renewable Thermal Generation Units utilizing biomass, biogas, or biofuel shall reduce life-cycle greenhouse gas emissions by at least 50% compared to a high-efficiency unit utilizing the fuel that is being displaced or for a new load, a high-efficiency natural gas unit, if natural gas is available at reasonable cost to the site, or otherwise, the fuel that is most likely to be utilized. The procedures for calculating whether a Generation Unit meets the 50% reduction can be found in the Department's Guideline on Biomass, Biogas, and Biofuels for Eligible Renewable Thermal Generation Units and in the Department's Guideline on Reduction of Greenhouse Gases for Eligible Renewable Thermal Generation Units Using Eligible Woody Biomass. Generation Units that report a percent under-compliance in 225 CMR 16.05(4)(i), shall be placed in a probationary status and the Department shall notify the Owner that its Statement of Qualification shall be revoked at the end of five Compliance Years following the Compliance Year for which the percent under-compliance was reported. The Generation Unit's probationary status shall be rescinded and the Generation Unit's Statement of Qualification shall no longer be subject to revocation if either: 1. for any three Compliance Years of the probationary period the Generation Unit demonstrates that it is complying with the lifecycle greenhouse gas emissions requirements; or 2. the Generation Unit's accumulated percent under-compliance is offset by any net over-compliance with the lifecycle greenhouse gas emissions requirement during the probationary period. (j) Cap on the Available Number of Attributes for Generation Units Using Eligible Liquid Biofuel. 1. In each Compliance Year the total number of Attributes minted to Generation Units using Eligible Liquid Biofuel may not exceed 20% of the total projected annual compliance obligation for the Compliance Year, in which they are generated, with no more than 10% of the Attributes generated prior to July 1 . If 100% of the Attributes st available prior to July 1 are not allocated, the remaining number of available Attributes st shall be rolled over and allocated during either of the remaining quarters in that calendar year. If the number of Attributes reported by Generation Units exceeds the available Attributes, the number of available Attributes shall be allocated on a pro-rata basis. 2. The Department shall estimate the compliance obligation by multiplying the Minimum Standard percentage by the total MWh of electrical energy sales by Retail Electricity Suppliers to End-use Customers in the Compliance Year two years prior. The Department shall calculate the annual and per quarter number of Attributes available for Generation Units using Eligible Liquid Biofuel in a given Compliance Year no later than August 31 of the preceding Compliance Year. The Department shall publish this st information on its website at www.mass.gov/orgs/massachusetts-department-of-energy-resources. (k) Eligible Biomass Woody Fuel Suppliers List. The Department shall establish and maintain a list of suppliers of Eligible Biomass Woody Fuel on its website at www.mass.gov/orgs/massachusetts-department-of-energy-resources. Any fuel supplier wishing to be included on the Department's list must complete the application provided on the Department's website at www.mass.gov/orgs/massachusetts-department-of-energy-resources. Suppliers will be classified into one of three classes based on the percentage of residues contained in the fuel distributed to Generation Units and the fuel being displaced by the Generation Unit, as follows: Class Fuel Being Displaced Minimum Combined Percentage of Forest Derived Residues, Non-forest Derived Residues, and Forest Salvage Class I Natural gas, electric resistance, propane, fuel oil #6, fuel oil #2 55% Class II Electric resistance, propane, fuel oil #6, fuel oil #2 50% Class III Fuel oil #6, fuel oil #2 35% Upon qualification, Generation Units will be notified by the Department which fuel class they must purchase when sourcing fuel from a supplier on the Department's Biomass Suppliers List. Any Generation Unit that desires to purchase fuel from a supplier not on the Department's Biomass Suppliers List may request approval from the Department and shall be required to provide additional information. Generation Units displacing an existing biomass system shall have their fuel class determined by the Department. (l) Eligible Liquid Biofuel Suppliers List. The Department shall establish and maintain a list of suppliers of Eligible Liquid Biofuel on its website at www.mass.gov/orgs/massachusetts-department-of-energy-resources. A fuel supplier must complete and submit an application to the Department to be included on the Department's Eligible Liquid Biofuel suppliers list. Fuel suppliers must be registered in the Environmental Protection Agency's Renewable Fuel Standard (RFS2), 40 CFR §§ 80.1400 through 80.14.74, and must verify that they produce biodiesel from organic waste feedstocks. Fuel suppliers may be required to provide documentation to the Department after being added to the list in order to demonstrate continued compliance.