SECTION 1. Section 3 of chapter 25A of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by inserting after the definition of “Building authority” the following 2 definitions:-

“Clean peak certificate”, a credit received for each megawatt hour of energy or energy reserves provided during a seasonal peak period that represents a compliance mechanism.

“Clean peak resource”, a qualified RPS resource, a qualified energy storage system or a demand response resource, which generates or provides electricity to the electric distribution system during seasonal peak periods.

SECTION 2. Said section 3 of said chapter 25A, as so appearing, is hereby further amended by inserting after the definition of “Commissioner” the following definition:-

“Demand response resource”, changes in electric usage by end-use customers in the commonwealth from their normal consumption patterns in response to (a) changes in the price of electricity over time, including, but not limited to time-of-use rates for residential and small commercial and industrial customers or (b) incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized.

SECTION 3. Said section 3 of said chapter 25A, as so appearing, is hereby further amended by inserting after the definition of “Petroleum products” the following definition:-

“Qualified energy storage system”,  an energy storage system, as defined in section 1 of chapter 164, that commenced commercial operation, or installed incremental new capacity at an existing energy storage system, as defined in section 1 of chapter 164, on or after January 1, 2019; provided however, that such system utilizes renewable energy, as defined in said section 1 of said chapter 164. 

SECTION 4. Said section 3 of said chapter 25A, as so appearing, is hereby further amended by inserting after the definition of “Qualified provider” the following definition:-

“Qualified RPS resource”, a renewable energy generating resource, as defined in subsection (c) or (d) of section 11F, that has (a) installed a qualified energy storage system at its facility or (b) commenced commercial operation on or after January 1, 2019.

SECTION 5. Said section 3 of said chapter 25A, as so appearing, is hereby further amended by inserting after the definition of “Responsive offeror” the following definition:-

“Seasonal peak periods”, the daily time windows during any of the 4 annual seasons when the net demand of electricity is the highest; provided however, that a seasonal peak period shall be no less than 1 hour and no longer than 4 hours in any season, as determined by the department.

SECTION 6. Section 11F of said chapter 25A, as so appearing, is hereby amended by striking out, in lines 16 and 17, the words “and (3) an additional 1 per cent of sales every year thereafter” and inserting in place thereof the following words:- (3) an additional 1 per cent of sales each year thereafter until July 31, 2019; (4) an additional 2 per cent of sales each year thereafter until July 31, 2029; and (5) an additional 1 per cent of sales every year thereafter. Each annual increase shall be prospective for new customer contracts entered into by the retail electricity suppliers after the increase goes into effect.

SECTION 7. Chapter 25A of the General Laws, is hereby further amended by adding the following section:-

Section 17. (a) The department shall establish a clean peak standard for all retail electricity suppliers selling electricity to end-use customers in the commonwealth. By December 31, 2018 the department shall determine the current percentage of kilowatt-hours sales to end-use customers in the commonwealth from existing clean peak resources during the seasonal peak load hours to establish a baseline minimum percentage of kilowatt-hours sales to end-use customers that must be met with clean peak certificates beginning on January 1, 2019. Each year thereafter, every retail electricity supplier in the commonwealth shall provide a minimum percentage of at least an additional 0.25 per cent of sales by retail electricity suppliers in the commonwealth that must be met with clean peak certificates, as determined by the department. The initial application of this requirement and each annual increase shall be prospective for new customer contracts entered into by the retail electricity suppliers after the increase goes into effect.

(b) A qualified RPS resource may generate both a clean peak certificate and a renewable energy certificate under section 11F of this chapter for electricity generated and delivered to the electric grid during a seasonal peak period.

(c) The department shall promulgate regulations to implement this section, including, but not limited to: (i) the establishment of seasonal peak periods; (ii) the methodology by which clean peak certificate values shall be established, which may include a process by which electric distribution companies competitively procure clean peak certificates from clean peak resources and enter into long-term contracts, subject to the approval of the department of public utilities; (iii) the establishment of a minimum percentage of clean peak certificates that must be derived from demand response resources; (iv) an alternative compliance mechanism for retail electricity suppliers; and (v) the procedures by which each retail electricity supplier shall annually submit for the department’s review a filing demonstrating its compliance with the requirements of this section.

(d) This section shall not apply to municipal lighting plants.

SECTION 7A. Notwithstanding any general or special law to the contrary, the department of energy resources shall investigate the necessity, benefits and costs of requiring distribution companies, as defined in section 1 of chapter 164 of the General Laws, to conduct additional offshore wind generation solicitations and procurements of up to 1,600 megawatts of aggregate nameplate capacity, by December 31, 2035 in addition to those required by chapter 169 of the Acts of 2008, as amended by chapter 188 of the Acts of 2016.  The department shall determine whether additional solicitations and procurements are necessary to meet the commonwealth’s energy policy goals, including the goals of chapters 169 and 298 of the Acts of 2008. The department shall make recommendations that include, but are not limited to: (i) improvements to the procurement process outlined in chapter 188 of the acts of 2016; (ii) the effect on commercial fisheries and operations; (iii) the impact on ratepayers, including distribution customers; and (iv) the potential economic benefits of such a procurement. The department shall file the report with the house and senate clerks and the joint committee on telecommunications, utilities and energy no later than July 31, 2019.

SECTION 8. Section 17 of chapter 25A is hereby repealed.

SECTION 9. Section 8 shall take effect on January 1, 2051.