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Biomass Qualification under the MA RPS Program and Status of the Biomass Notice of Inquiry

2. Outline. Summary of the MA RPS ProgramEligibility of BiomassOverview of the DOER/DEP Biomass Notice of Inquiry (NOI)DOER Policy Statement (issued 10/27/05)Schedule for RPS Regulatory Revisions. 3. RPS Policy Context and Objectives. Policy Context1997 Electric Utility Restructuring ActRecogn

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Biomass Qualification under the MA RPS Program and Status of the Biomass Notice of Inquiry

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    1. Biomass Qualification under the MA RPS Program and Status of the Biomass Notice of Inquiry Robert Sydney, General Counsel Massachusetts Division of Energy Resources EBC Seminar on Biomass October 28, 2005

    2. 2 Outline Summary of the MA RPS Program Eligibility of Biomass Overview of the DOER/DEP Biomass Notice of Inquiry (NOI) DOER Policy Statement (issued 10/27/05) Schedule for RPS Regulatory Revisions

    3. 3 RPS Policy Context and Objectives Policy Context 1997 Electric Utility Restructuring Act Recognized need to provide subsidies to promote RE development Employed market forces to expand RE development at least cost (by mandating increasing demand level and encourage supply to respond). Policy Objectives Decrease pollution from fossil fuels Reduce dependence on imported fuels Increase fuel diversity Hedge against volatile fossil fuel markets Dampen electricity market clearing prices Promote economic development

    4. 4 RPS Technology Eligibility Which technologies/fuel sources qualify? Landfill gas Biomass (“low-emission, advanced technology”) Wind Ocean thermal, wave or tidal Fuel cells utilizing renewable fuels Solar electric (PV)

    5. New England RPS (Class I) Demand

    6. 6 Biomass Energy Wind and biomass are the dominant renewable energy indigenous resources in New England MA can produce roughly 4 million tons of wood chips per year on a sustainable basis Forestry management, saw mill residues, land-use change, tree trimmings, etc. Biomass offers opportunity for Combined Heat and Power applications C&D wood is eligible for RPS but upcoming regulatory revisions will clarify any limitations.

    7. 7 2003 RPS Compliance: Generation Type and Location

    8. 8 Biomass Notice of Inquiry Summary

    9. 9 NOI Policy Statement

    10. 10 RPS Regulatory Revisions Anticipated Schedule

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