Code of Massachusetts Regulations › 225 CMR - DEPARTMENT OF ENERGY RESOURCES › Title 225 CMR 16.00 - Alternative Energy Portfolio Standard (APS) › Section 16.05 - Eligibility Criteria for APS Alternative Generation Units

Current through Register 1525, July 5, 2024
(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
			 qualifyas an APS Alternative Generation Unit and shall be metered according to
			 thespecifications in the Department's
Guideline on Metering and
			 Calculating the Useful
Thermal Output of Eligible Renewable
			 Thermal Generation Units
.