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Posts Tagged ‘MA Solar Policy. Solar Policy’

The Department of Energy Resources (DOER) has released an Emergency Regulation with respect to the SREC program in Massachusetts.

On June 28, 2013, DOER filed an Emergency Regulation to establish rules by which the current RPS Solar Carve-Out program will be complete.  As an Emergency Regulation, the rules become effective upon filing, thus they are now in effect.  DOER has posted the Emergency Regulations on its website.

The emergency regulations expand the 400 MW cap of the current program to accommodate those projects that are well along in the development cycle, and to allow for small projects to continue moving forward in development.

Available on the DOER website is a list of projects that have been determined to be qualified or that submitted an administratively complete application, under the 400 MW cap.  Additionally, there is a list of projects that have applied outside of the 400 MW capacity limit.  If any projects that have qualified under the 400 MW cap have their applications withdrawn or revoked, project capacity from outside the 400 MW capacity limit will not be transferred under the cap.  Projects falling outside of the 400 MW capacity limit will be subject to the rules of the emergency regulations summarized below.

  • Units under the 400 MW capacity limit, as determined by DOER with a Statement of Qualification or an application deemed administratively complete by DOER that are greater than 100 kW, must meet the following construction timelines to maintain qualification in the current solar program.
  • Units that are outside the 400 MW capacity limit, as determined by DOER, and are greater than 100 kW must have an Interconnection Service Agreement fully executed by the customer and utility dated on or before June 7, 2013. They must meet the construction timelines below to be awarded a statement of Qualification under the current program.
  • Construction Timelines for Projects greater than 100 kW:
    • Receipt of Authorization to Interconnect from its local distribution company by December 31, 2013.
    • Units that do not receive an Authorization to Interconnect by December 31, 2013 may receive an extension to June 30, 2014 only if it can be demonstrated, to the satisfaction of DOER, that the Unit has expended at least 50% of its total construction costs by December 31, 2013.
    • If a Unit is not in receipt of the Authorization to Interconnect as of June 30, 2014 but can demonstrate, to the satisfaction of DOER, that the missing Authorization is due to delays of the local distribution company or due to remaining steps required by other parties for safe and reliable interconnection, the Statement of Qualification will be extended until the Authorization is received or denied.
  • Units equal to or less than 100 kW, or designated as a Community Solar Garden by MassCEC, regardless of their placement in the 400 MW capacity limit, will be qualified under the current program provided they submit a Statement of Qualification Application to DOER and have an Authorization to Interconnect by December 31, 2013 or prior to the effective date of the new solar program, whichever is later.
  • Units failing to meet construction timelines will have their Statements of Qualification revoked.
  • The effective date of all Statement of Qualifications issued by DOER under the current program will be no later than December 31, 2013. This provision will ensure that the compliance obligation of the current solar program will not be extended an additional year, at additional ratepayer cost.
  • The compliance obligation formula of the program as of the effective date of the regulation and after the program reaches its program cap will be revised from 400 MW to the new Program Capacity Cap announced by DOER in July 2014, to accommodate actual supply. DOER will provide exemption to the additional compliance obligation, once the obligation reaches the new cap, for load under contract prior to the effective date of the emergency regulation.

Continuing Regulatory Procedure

While DOER is confident in the Emergency Regulation as written, in accordance with administrative procedure laws (M.G.L. ch. 30A), the regulation will remain in effect for 90 days, with the opportunity for the Department to make the regulations permanent. DOER will soon schedule and announce a Public Hearing and comment period, in accordance with administrative procedures, and move to quickly promulgate the final regulation so as to keep the regulations in effect throughout the construction timelines and until the new Solar Carve-Out Program has started. Given the importance of timely business decisions being made based on the rules of the Emergency Regulations, DOER recognizes the prudence of completing the regulatory process quickly.

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