(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, §§ 3(c), 4 and 7, 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
means 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.
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).
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 means 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
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