Amendment ID: S2545-23

Amendment 23

Clean Peak Standard

Messrs. Tarr and O'Connor move that the proposed new draft be amended by inserting after section ___ the following 2 sections:-

SECTION XX. 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 definitions:

“Clean peak energy resources”, any Class I renewable energy generating sources as defined in subsection (c) of section 11F, demand response resources, and energy storage systems, as defined in section 1 of chapter 164.

“Clean peak period”, one or more discrete time periods during a calendar year, as determined by the department pursuant to subsection (j) of section 11F, when electrical consumption results in a significant increase in greenhouse gas emissions, or an increase in electrical prices or transmission and distribution costs to end-use electricity customers of the commonwealth; provided, however, that the total numbers of hours constituting the clean peak period for a particular year shall not exceed 10 per cent of the projected total hours of electricity demand of all end-user customers in the commonwealth in that year; and provided further, that the department may rely on forecasting by the independent service operator for the New England service area in determining the clean peak period.

SECTION XX. Section 11F of chapter 25A of the general laws, as appearing in the 2016 official edition, is hereby amended by adding the following subsection:-

(j) The department shall establish a clean peak standard for all retail electricity suppliers selling electricity to end-use customers in the commonwealth. Such standard shall require all retail electricity suppliers to provide a minimum percentage of kilowatt-hour sales to end-use customers in the commonwealth from clean peak energy resources, which amount shall be determined by the department through regulations. A retail electricity supplier may satisfy its annual obligation under this subsection with Class I renewable energy generating sources used to satisfy its annual obligation under subsection (a). In developing the clean peak standard, the department may consider using market-based program designs to facilitate long-term investment in clean peak energy resources; provided, however, that the clean peak standard shall be designed to lower the overall costs to the commonwealth’s ratepayers over the period in which the clean peak standard is in effect and, to the maximum extent practicable, shall ensure that any rate increase for an individual electricity customer, regardless of customer class, resulting from the clean peak standard does not exceed 0.5 cents per kilowatt-hour in the aggregate for any particular year. The department shall promulgate regulations to implement this subsection, including, at a minimum, provisions regarding: (1) the methodology for defining the clean peak period for electricity demand in a given year; (2) the minimum amount of clean peak energy resources required to satisfy the clean peak standard; and (3) an alternative compliance mechanism for retail electricity suppliers. This section shall be in effect until January 1, 2041.