Amendment #6 to H4739

Renewable Energy Program

Representatives Brodeur of Melrose, Jones of North Reading, Puppolo of Springfield and Poirier of North Attleborough move to amend the bill by adding the following sections:-

“SECTION XX (a) The department shall a establish an incentive program to support non-solar renewable energy resources that are less than 5 megawatts and that qualify for the class I renewable energy portfolio standard under section 11F. The program shall be designed to finance the development, construction, and operation of renewable-energy distributed-generation projects through a fixed price performance-based incentive that is designed to achieve annual megawatt targets at reasonable cost through competitive processes established by the department.

(b) The incentive program shall be tariff-based and the department shall promulgate regulations that, at a minimum: (i) establish the eligibility criteria for facilities to qualify under the program; (ii) establish the methodology for establishing incentives; and (iii) direct the distribution companies to jointly file a model tariff to implement the program with department of public utilities, for its review and approval.

(c) The methodology for establishing incentive levels shall: (i) take into consideration underlying system installation, soft, and fuel costs; (ii) take into account electricity revenues and any federal or state incentives; (iii) rely on market-based mechanisms or price signals as much as possible; (iv) differentiate incentives levels by size, location, and project type;  (v) establish annual targets for each technology type; (vi) ensure that the costs of the program are shared collectively among all ratepayers of the distribution companies; and (vii) promote investor confidence through long-term incentive revenue certainty and market stability.

(d)  Attributes, as defined by the department, of the Class I renewable energy generating sources that qualify under regulations established pursuant to this section shall be eligible for use by retail electric suppliers pursuant to their obligations under section 11F.”;

SECTION XX.  Anaerobic digestion facilities that are both operational and qualified as Class I renewable energy generating sources under section 11F of chapter 25A of the General Laws prior to the effective date of section 17 of said chapter 25A shall be eligible to participate in the incentive program via a one-time procurement for the class I renewable generation attributes created by existing anaerobic digestion facilities. The department shall determine eligibility criteria for existing anaerobic digestion facilities to participate in the one-time procurement, with the total megawatts being procured equal to the combined capacity of all eligible facilities. The one-time procurement shall include a ceiling price equal to or greater than the alternative compliance payment rate, not to exceed double the alternative compliance payment rate established by the department under said section 11F of said chapter 25A.

SECTION XX. The department shall also establish a pilot program for anaerobic digestion technology that utilizes solid waste or organic materials otherwise eligible under section 138 of chapter 164 up to six megawatts.”