Clean peak energy portfolio standard (CPS)

225 CMR: 225 DEPARTMENT OF CMR: DEPARTMENT OF ENERGY RESOURCES ENERGY RESOURCES

225 CMR 225 CMR 21.00: 21.00: CLEAN PEAK CLEAN PEAK ENERGY PORTFOLIO STANDARD ENERGY PORTFOLIO STANDARD (CPS) (CPS)

Section Section

21.01: 21.01: Purpose and Purpose and Application Application 21.02: 21.02: Definitions Definitions 21.03: 21.03: Administration Administration 21.04: 21.04: Applicability Applicability 21.05: 21.05: Eligibility Criteria for Eligibility Criteria for Clean Clean Peak Peak Resources Resources 21.06: 21.06: Qualification Process Qualification Process for for Clean Clean Peak Peak Resources Resources 21.07: 21.07: Clean Peak Clean Peak Energy Standard Energy Standard 21.08: 21.08: Compliance Procedures Compliance Procedures for for Retail Retail Electricity Suppliers Electricity Suppliers 21.09: 21.09: Annual Compliance Annual Compliance Filings Filings for for Retail Retail Electricity Suppliers Electricity Suppliers 21.10: 21.10: Reporting Requirements Reporting Requirements 21.11: 21.11: Inspection Inspection 21.12: 21.12: Noncompliance Noncompliance 21.13: 21.13: Severability Severability

21.01: Purpose and 21.01: Purpose and Application Application

The purpose The purpose of of 225 225 CMR CMR 21.0021.00 is is to establish aa Clean to establish Clean Peak Peak Energy Portfolio Standard Energy Portfolio Standard to to increase clean increase clean energy energy during during thethe periods when Net periods when Net Demand Demand of of electricity electricity is is the the highest. highest. Clean Clean Peak Resources Peak Resources contribute contribute toto the the Commonwealth's Commonwealth's environmental environmental protection goals concerning protection goals concerning air emissions air emissions including, including, but but not not limited limited to, to, those those required required by the Global by the Global Warming Warming Solutions Solutions Act, Act, M.G.L. c. M.G.L. c. 21N, 21N, §§§§ 1-9, 1-9, by displacing nonrenewable by displacing nonrenewable generating generating resources resources during during Seasonal Seasonal Peak Peak Periods, while Periods, while also also having having added added benefits benefits ofof reducing reducing peak peak demand demand and and system system losses losses and and increasing grid increasing grid reliability. reliability. Clean Clean PeakPeak Resources Resources that that participate participate in in the the CPS CPS program program pursuant pursuant to 225 to 225 CMR CMR 21.00 21.00 do do so on aa voluntary so on voluntary basis, basis, but must comply but must comply with with the the terms terms and and requirements requirements of 225 of 225 CMR CMR 21.00. 21.00.

21.02: Definitions 21.02: Definitions

Actual Monthly Actual Monthly System System Peak. Peak. The The highest highest net net demand demand for for electricity in aa calendar electricity in calendar month month in in ISO-NE Control ISO-NE Control Area. Area.

Aggregation. A Aggregation. A group group of of one one or or more more Clean Clean Peak Peak Resources Resources that that receives receives aa single single Statement Statement of of Qualification from Qualification from the the Department Department under under the the criteria criteria and and procedures set forth procedures set forth in in 225 225 CMR CMR 21.05. 21.05.

Alternative Compliance Alternative Compliance Credit. Credit. A A credit credit obtained obtained by by aa Retail Retail Electricity Supplier upon Electricity Supplier upon making making an Alternative an Alternative Compliance Compliance Payment. Payment. SuchSuch credit credit is is used used to to document document compliance compliance with with 225 CMR 1.07. 21.07. One One unit unit of of credit credit shall shall be equivalent to be equivalent to one one Clean Clean Peak Peak Energy Certificate. Energy Certificate.

Alternative Compliance Alternative Compliance Payment Payment (ACP). (ACP). AA payment of aa certain payment of certain dollar dollar amount amount per per Clean Clean Peak Peak Certificate, resulting Certificate, resulting in in the the issuance issuance of of an an Alternative Alternative Compliance Compliance Credit, which aa Retail Credit, which Retail Electricity Supplier may Electricity Supplier may submit submit to to the the Department Department in in lieu lieu of of providing providing aa Clean Clean Peak Peak Energy Energy Certificate as Certificate as required required under under 225 225 CMR CMR 21.07. 21.07.

Authorized Agent. Authorized A person Agent. A person or or entity entity that that serves serves under under an an agreement agreement entered entered into into by each of by each ofthe the of aa Clean Owners of Owners Clean Peak Peak Resource Resource for for all all dealings dealings with with the the Department Department and and with with the the NEPOOL NEPOOL GIS. GIS.

Business Day. Business Day. Monday through Friday, Monday through exclusive of Friday, exclusive of state state and and federal federal legal legal holidays. holidays.

Clean Peak Clean Peak Energy Energy Certificate Certificate (CPEC). (CPEC). A A credit credit received received for for each each megawatt megawatt hour hour of of energy energy or or energy reserves energy reserves at at NEPOOL NEPOOL GIS GIS that that is is adjusted adjusted by applicable Clean by applicable Clean Peak Peak Energy Certificate Energy Certificate Multipliers and Multipliers and provided provided during during aa Seasonal Seasonal Peak Peak Period Period that that represents represents aa compliance compliance mechanism. mechanism.

Clean Peak Clean Peak Energy Energy Certificate Certificate Multipliers. Multipliers. Values Values which, which, when when applicable, applicable, are are multiplied multiplied against Clean against Clean Peak Peak Resource's Resource's performance, thereby increasing performance, thereby increasing or or decreasing decreasing the the number number of of Clean Peak Clean Peak Energy Certificates produced Energy Certificates produced in in aa given given time time period. period.

1/3/2025) (Mass. Register #1538, 1/3/2025)

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Clean Peak Clean Peak Resource. Resource. AA Qualified Qualified RPS Resource, aa Qualified RPS Resource, Qualified Energy Storage System Energy Storage System oror aa Demand Response Demand Response Resource Resource that that generates, generates, dispatches dispatches or or discharges discharges electricity electricity to to the the electric electric distribution system distribution system during during Seasonal Seasonal Peak Peak Periods, Periods, or or alternatively, alternatively, reduces reduces load load on on said said system system during said during said periods. periods.

Clean Peak Clean Peak Seasons. Seasons. The The four four seasons seasons of of the the year year as as established established in in 225 225 CMR CMR 21.05. 21.05.

Commercial Operation Commercial Operation Date. Date. The The date date that that aa Clean Clean Peak Peak Resource Resource first first produces produces oror provides provides electrical energy electrical energy for for sale. sale. In In the the case of aa Clean case of Clean Peak Peak Resource Resource that that is is connected connected toto the the End-use End-use Customer's side Customer's side of of the the electric electric meter, meter, the the date date on on which which the the local local Distribution Distribution Company Company grants grants approval for approval for the the Clean Clean Peak Peak Resource Resource to to interconnect interconnect with with the the grid. grid. In In the the case of aa Demand case of Demand Response Resource, Response Resource, the the date date on on which which the the resource resource first first changes changes electric electric usage. usage.

Compliance Filing. Compliance Filing. AA document document filed filed annually annually by by aa Retail Retail Electricity Supplier with Electricity Supplier with the the Department documenting Department documenting compliance compliance with with 225 225 CMR CMR 21.07, 21.07, consistent consistent with with the the format format set set forth forth in the in the Guidelines Guidelines andand submitted submitted no no later later than than the the first first day day of of July, July, or or the the first first Business Business Day Day thereafter, of thereafter, of the the subsequent subsequent Compliance Compliance Year. Year.

Compliance Year. Compliance Year. A A calendar calendar year year beginning January 11st� and beginning January and ending ending December December 31 31, st for which , for which aa Retail Retail Electricity Supplier must Electricity Supplier must demonstrate demonstrate that that it it has has met met the the requirements requirements of of 225 225 CMR CMR 21.07 and 21.07 and 21.08. 21.08.

Contracted Resource. Contracted Resource. AA Clean Clean Peak Peak Resource Resource that: that: (a) Has (a) received aa Statement Has received Statement of of Qualification Qualification asas aa Solar Solar Tariff Tariff Generation Generation Unit Unit pursuant pursuant to 225 to 225 CMR CMR 20.00; 20.00; or or (b) (b) Has aa contract Has with aa Distribution contract with Distribution Company Company that that has has been been approved approved by the by the Massachusetts Department Massachusetts Department ofof Public Public Utilities Utilities pursuant pursuant to to St. St. 2008, 2008, c. c. 169, 169, §§ §§ 83, 83, 83A 83A or or 83C. 83C.

Control Area. Control A geographic Area. A geographic region region in which aa common in which common generation generation control control system system is is used used to to maintain scheduled maintain scheduled interchange interchange of of electrical electrical energy energy within within and and without without the the region. region.

Demand Response Demand Response Resource. Resource. A A resource resource that that has has received received aa Statement Statement of of Qualification Qualification from from the the Department, which Department, which changes changes electric electric usage usage by retail end-use by retail end-use customers customers in in the the Commonwealth Commonwealth from their from their normal normal consumption consumption patterns patterns inin response response to: to: (i) changes (i) changes in in the the price price of of electricity electricity over over time time including, including, but not limited but not limited to, to, time-of-use time-of-use rates for rates for residential residential and and small small commercial commercial and and industrial industrial customers; customers; or or (ii) incentive (ii) incentive payments payments designed designed toto induce induce lower lower electricity electricity use use at at times times of of high high wholesale wholesale market prices market prices or or when when system system reliability reliability is is jeopardized. jeopardized.

Department. Department. The Massachusetts The Massachusetts Department Department of of Energy Energy Resources, established by Resources, established by M.G.L. c. M.G.L. C. 25A. 25A.

Distribution Company. Distribution Company. A company engaging A company engaging in in the the distribution distribution of of electricity electricity or or owning, owning, operating or operating or controlling controlling distribution distribution facilities facilities as as defined defined in in M.G.L. M.G.L. c. 164, §§ 1; c. 164, 1; provided, provided, however, aa Distribution however, Distribution Company Company shall shall not include aa municipal not include municipal lighting lighting plant established plant established pursuant to the pursuant to the provisions of M.G.L provisions of M.G.L c.c. 164. 164.

Distribution System. Distribution System. The The electric electric system, system, owned owned and and operated operated by by aa Distribution Distribution Company Company and/or and/or aa municipal municipal lighting lighting plant plant typically typically operated operated at at voltages voltages below below 69 69 kilovolts, kilovolts, which which provides provides distribution service distribution service as as defined defined in in M.G.L. M.G.L. c. 164, §§ 1. c. 164, 1.

DPU. The Massachusetts DPU. The Massachusetts Department Department of of Public Public Utilities, Utilities, established established by M.G.L. c. by M.G.L. 25, §§ 1. c. 25, 1.

End-use Customer. End-use Customer. A A person person or or entity entity in in Massachusetts Massachusetts that that purchases purchases electrical electrical energy energy from from aa Distribution Distribution Company. Company.

Existing Resource. Existing A Clean Resource. A Clean Peak Peak Resource Resource that that has has aa Commercial Commercial Operation Operation Date Date before before January 1, January 1, 2019. 2019.

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Generation Attribute. Generation Attribute. Means Means aa Generation Generation Attribute, Attribute, as as defined defined in in 225 CMR 14.02: 225 CMR 14.02: Definitions. Definitions.

GIS Certificate. GIS Certificate. An An electronic electronic record record produced produced by the NEPOOL by the GIS that NEPOOL GIS that identifies identifies Generation Generation Attributes of Attributes of each each MWh MWh accounted accounted for for in in the the NEPOOL GIS. NEPOOL GIS.

Guideline. A Guideline. A set set of of clarifications, clarifications, interpretations, interpretations, and and procedures, including forms, procedures, including forms, developed developed by the Department by the Department to to assist assist in in compliance compliance with with the the requirements requirements ofof 225 225 CMR CMR 21.00. 21.00. The The Department may Department may issue issue new new or or revised revised Guidelines. Guidelines. Each Each Guideline Guideline shall shall be effective on be effective on its its date date of issuance of issuance or or on on such such date date as as is is specified specified therein, except as therein, except as otherwise otherwise provided provided in in 225 225 CMR CMR 21.00. 21.00.

Hour of Hour of Actual Actual Monthly Monthly System System Peak. Peak. The The hour hour in in which which the the Actual Actual Monthly Monthly System System Peak Peak occurs. occurs.

Interconnection Service Interconnection Service Agreement. Agreement. The The agreement agreement for for interconnection interconnection service service entered entered into into between the interconnecting between the interconnecting customer customer and and aa Distribution Distribution Company, Company, as as defined defined and and provided provided in in each Distribution each Distribution Company's Company's standards standards for for interconnection interconnection of of distributed distributed generation. generation.

ISO-NE. ISO ISO-NE. New England ISO New England Inc., Inc., the the independent independent system system operator operator for for New New England, the regional England, the regional transmission organization transmission organization for for most most ofof New New England, which is England, which is authorized authorized by the Federal by the Federal Energy Energy Regulatory Commission Regulatory Commission toto exercise exercise for for the the New England Control New England Control Area Area the the functions functions required required pursuant to the pursuant to the Federal Federal Energy Regulatory Commission's Energy Regulatory Commission's Order Order No. 2000 and No. 2000 and corresponding corresponding regulations. regulations.

ISO-NE Control ISO-NE Control Area. Area. The The Control Control Area Area for for which which the the ISO-NE ISO-NE is is responsible. responsible.

Kilowatt (kW). Kilowatt (kW). A A unit unit of of power power equal equal to to one one thousand thousand watts, watts, as as measured measured in in alternating alternating current current (AC). (AC).

Kilowatt-hour (kWh). Kilowatt-hour (kWh). AA unit unit of of electrical electrical energy energy or or work work equivalent equivalent to to one one thousand thousand watts watts of of power operating for power operating for one one hour. hour.

Market Supply. Market Supply. TheThe percentage percentage resulting resulting from from dividing dividing the the number number of of Clean Clean Peak Peak Energy Energy Certificates produced Certificates produced inin aa compliance compliance year year by the total by the total market market obligation obligation of of Retail Retail Electricity Electricity Suppliers for Suppliers for said said compliance compliance year. year.

Massachusetts Clean Massachusetts Clean Energy Energy Technology Technology Center Center (MassCEC). (MassCEC). The The center center established established by by M.G.L. M.G.L. c. 23J, c. 23J, §§ 2. 2.

Megawatt (MW). Megawatt A unit (MW). A unit of of power power equal equal to to one one million million watts, watts, as as measured measured in in alternating alternating current current (AC). (AC).

(MWh). A Megawatt-hour (MWh). Megawatt-hour unit of A unit of electrical electrical energy energy or or work work equivalent equivalent to to one one million million watts watts of of power operating for power operating for one one hour. hour.

NEPOOL GIS. The NEPOOL GIS. The NEPOOL Generation Information NEPOOL Generation Information System, System, which which includes includes aa generation generation information database information database and and certificate certificate system, system, operated operated by the New by the England Power New England Power Pool Pool (NEPOOL), its (NEPOOL), its designee designee or or successor successor entity, entity, that that accounts accounts for for generation generation attributes attributes of of electrical electrical energy consumed energy consumed within, within, imported imported into, into, or or exported exported from from the the ISO-NE ISO-NE Control Control Area. Area.

Net Demand. The Net Demand. The amount amount of of electric electric power power needed needed to to supply supply electric electric load load at at aa specific specific time time and and place after place after all all behind-the-meter energy generation behind-the-meter energy generation and and consumption consumption hashas been been accounted. accounted.

On-site Load. On-site Load. Any Any new new oror existing existing electric electric load load located located at at the the site of aa Clean site of Clean Peak Peak Resource, Resource, including any including any parasitic load that parasitic load that may may result result from from the the installation installation of of the the Clean Clean Peak Peak Resource, and Resource, and in the in the case case ofof Qualified Qualified RPS RPS Resource Resource oror Qualified Qualified Energy Energy Storage Storage System, System, that that is is wired wired to to receive aa portion receive portion of of the the electrical electrical energy energy output output from from the the Clean Clean Peak Peak Resource Resource before the balance before the balance of such of such output output passes through the passes through the Clean Clean Peak Peak Resource's Resource's metered metered interconnection interconnection onto onto the the electric grid. electric grid.

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Operator. Any Operator. Any person person or or entity entity that that has has charge charge oror control of aa Clean control of Clean Peak Peak Resource Resource subject subject to to 225 CMR 225 CMR 21.00 21.00 including, including, without limitation, aa duly without limitation, duly authorized authorized agent agent or or lessee lessee of of the the Owner, Owner, or aa duly or duly authorized authorized independent independent contractor. contractor.

Owner. Any Owner. Any person person or or entity entity who, who, alone alone oror in in conjunction conjunction with with others, others, has has legal ownership, aa legal ownership, leasehold interest, leasehold interest, or or effective effective control control over over the the real real property or property property or interest upon property interest upon which which aa Clean Peak Clean Peak Resource Resource isis located, located, or or the the airspace airspace above above said said real real property including without property including without limitation, aa duly limitation, duly authorized authorized agent agent of of the the Owner. Owner. For For the the purposes of 225 purposes of 225 CMR CMR 21.02, 21.02, Owner Owner does not mean a person or entity holding legal title or security interest solely for the purpose of does not mean a person or entity holding legal title or security interest solely for the purpose of providing financing. providing financing.

Program Administrator. Program Administrator. An An entity entity designated designated by the Department by the Department to to assist assist in in the the implementation implementation of the of the Clean Clean Peak Peak Standard Standard including, including, but but not not limited limited to, to, the the MassCEC MassCEC or or another another party as party as designated by designated the Department. by the Department.

Qualified Energy Qualified Storage System. Energy Storage System. AnAn energy energy storage storage system, system, as as defined defined in in M.G.L. M.G.L. c. c. 164, 164, §§ 1, 1, that commenced that commenced commercial commercial operation operation or or provided incremental new provided incremental new capacity capacity at at an an existing existing energy storage energy storage system system on on or or after after January January 1, 1, 2019 2019 that that has received aa Statement has received Statement of of Qualification Qualification from the from the Department; Department; provided, however, that provided, however, that such such system system operates operates primarily to store primarily to store and and discharge renewable discharge renewable energy. energy.

Qualified RPS Qualified Resource. A RPS Resource. renewable energy A renewable energy generating generating source, source, as as defined defined in in M.G.L. M.G.L. c. c. 25A, 25A, §§ 1 l §§ or (d) 11F(c) or (d) that that has received aa Statement has received Statement of of Qualification Qualification from from the the Department Department and and has: has: (a) aa Commercial (a) Commercial Operation Operation Date Date prior to January prior to January 1, 1, 2019 2019 and and which which installs installs aa Qualified Qualified Energy Storage System Energy Storage System atat its its facility; facility; or or (b) aa Commercial (b) Commercial Operation Operation Date Date on on or or after after January January 1,1, 2019. 2019.

Resilient Facility. Resilient Facility. AA site site which which includes includes aa Qualified Qualified RPS RPS Resource Resource andand may may include include Qualified Qualified Energy Storage and/or Energy Storage and/or Demand Demand Response Response Resource Resource where where the the qualified qualified resources resources improve improve the the facility's energy facility's energy resilience resilience by enabling the by enabling the Qualified Qualified RPS RPS Resource Resource toto generate generate electricity electricity and and provide said provide said electricity electricity to to On-site On-site Load Load when when the the facility's facility's distribution distribution service service is is not not energized energized (outage condition). (outage condition). Said Said on-site on-site generation generation and and provision provision of of electricity electricity to to On-site On-site Load Load enhances enhances the facility's the facility's ability ability to to prepare for and prepare for and adapt adapt to to changing changing conditions conditions and and withstand withstand andand recover recover rapidly from disruptions. rapidly from disruptions. A A Resilient Resilient Facility must include Facility must include On-site On-site Load Load other other than than parasitic parasitic load. load.

Retail Electricity Retail Electricity Product. Means aa Retail Product. Means Retail Electricity Product, as Electricity Product, as defined defined in in 225 225 CMR CMR 14.02: 14.02: Definitions. Definitions.

Retail Electricity Retail Electricity Supplier. Supplier. A A person person or or entity entity that that sells sells electrical electrical energy energy to to End-use End-use Customers Customers in Massachusetts in Massachusetts including, including, but but not not limited limited to, to, electric electric utility distribution companies utility distribution companies supplying supplying basic service or basic service or any any successor successor service service toto End-use End-use Customers. Customers. A A municipal municipal lighting lighting plant plant shall shall be exempt from be exempt from the the obligations obligations of of aa Retail Retail Electricity Supplier under Electricity Supplier under 225 225 CMR CMR 21.00 21.00 as as it it is is exempt from exempt from the the requirements requirements of of the the Clean Clean Peak Peak Standard Standard pursuant to M.G.L. pursuant to M.G.L. c. 25A, §§ 17(d). c. 25A, 17(d).

Class II Renewable RPS Class RPS Renewable Generation Generation Attribute. Attribute. Means Means aa RPS RPS Class Class II Renewable Renewable Generation Generation Attribute, as Attribute, as defined defined in in 225 225 CMR CMR 14.02: 14.02: Definitions. Definitions.

RPS Class RPS Class II Renewable Renewable Generation Generation Unit. Unit. Means Means aa RPS RPS Class Class II Renewable Renewable Generation Generation Unit, Unit, as as defined in defined in 225 225 CMR CMR 14.02: 14.02: Definitions. Definitions.

Seasonal Peak Seasonal Peak Period. Period. The The time time periods during the periods during the Clean Clean Peak Peak Seasons Seasons when when the the Net Demand Net Demand for electricity for electricity is is typically typically highest. highest. The The Seasonal Seasonal Peak Peak Periods Periods shall shall not not be less than be less than one one hour hour and and not longer not longer than than four four hours hours each each Business Business Day Day in in any any Clean Clean Peak Peak Season; Season; will will be be determined determined onon aa prospective prospective basis no later basis no later than than six six months months prior prior to to the the next next Compliance Compliance Year; Year; shall shall be be revised revised no more no more than than once once every every three three years; and the years; and the Department Department reserves reserves the the discretion discretion toto exempt exempt existing resources existing resources from from adjustments adjustments toto the the Seasonal Seasonal Peak Peak Periods Periods inin effect effect at at the the time time of of their their qualification. qualification.

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SMART ES SMART ES Resource. Resource. AA Clean Clean Peak Peak Resource Resource that that is is an an energy energy storage storage system system which which is is paired paired with aa qualified with qualified Solar Solar Tariff Tariff Generation Generation Unit Unit in in the the SMART SMART Program Program which which receives receives the the SMART Program SMART Program energy energy storage storage adder. adder.

Solar Massachusetts Solar Massachusetts Renewable Renewable Target Target (SMART) (SMART) Program. Program. The The solar solar incentive incentive program program established pursuant to 0.00. established pursuant to 0.00.

Statement of Statement of Qualification. A document Qualification. A document issued issued by the Department by the Department that that qualifies qualifies aa Clean Clean Peak Peak Resource under Resource under 225 225 CMR CMR 21.00. 21.00.

Transmission System. Transmission System. The The electric electric system system established established for for the the delivery delivery of of power power over over lines lines that that operate at operate voltage level at aa voltage level typically typically equal equal to to or or greater greater than than 69,000 69,000 volts, volts, which which provides provides transmission service transmission service as as defined defined M.G.L. M.G.L. c. 1. 164, §§ 1. c. 164,

21.03: Administration 21.03: Administration

225 CMR 1.00 21.00 shall shall be administered by be administered the Department. by the Department.

21.04: Applicability 21.04: Applicability

225 CMR 1.00 21.00 applies applies to to Retail Retail Electricity Electricity Suppliers Suppliers and and to to the the Owners Owners and and Operators Operators of of Clean Peak Clean Peak Resources. Resources.

21.05: Eligibility Criteria 21.05: Eligibility Criteria for for Clean Clean Peak Peak Resources Resources

(1) Eligibility (1) Eligibility Criteria. Criteria. A A Clean Clean Peak Peak Resource Resource may may qualify qualify for for aa Statement Statement of of Qualification Qualification subject to subject to the the limitations limitations in in 225 225 CMR CMR 21.05. 21.05. TheThe Department Department shall shall publish Guideline on publish aa Guideline on Clean Clean Peak Resource Peak Resource Eligibility Eligibility that that explains explains thethe parameters parameters of of eligibility eligibility requirements. requirements. (a) Energy (a) Energy Resources Resources and and Technologies. Technologies. The The Clean Clean Peak Peak Resource Resource shallshall use use one one or or more more of the of the energy energy resources resources or or technologies technologies listed listed inin 225 225 CMR CMR 21.05(1)(a) 21.05(1)(a) 11 through through 4. 4. The The Clean Peak Clean Peak Resource Resource shallshall be interconnected with be interconnected with oror offset offset load load otherwise otherwise served served by the by the Distribution System, Distribution System, or or shall shall be be interconnected interconnected with with the the Transmission Transmission System System in in the the Commonwealth of Commonwealth of Massachusetts. Massachusetts. Clean Clean PeakPeak Resources Resources must must demonstrate demonstrate that that they they generate, dispatch, generate, dispatch, or or discharge discharge electricity electricity to to the the electric electric distribution distribution systemsystem in in Massachusetts. Resources Massachusetts. Resources interconnected interconnected within within thethe service service territory territory ofof aa municipal municipal lighting lighting plant shall be plant shall ineligible to be ineligible to generate generate Clean Clean Peak Peak Energy Energy Credits Credits under under 225225 CMR CMR 21.00 21.00 asas municipal lighting municipal lighting plants are exempt plants are exempt fromfrom thethe requirements requirements of of the the Clean Clean Peak Peak Standard Standard pursuant pursuant to to M.G,L, M.G,L, c. c. 25A, 25A, §§ 17(d). 17(d). 1. Qualified 1. Qualified RPS RPS Resources. Resources. a. RPS a. RPS ClassClass II Renewable Renewable Generation Generation UnitsUnits with with aa Commercial Commercial Operation Operation Date Date on on or or after January after January 1, 1, 2019 2019 that that have received aa Statement have received Statement of of Qualification Qualification and and meet meet all all other other applicable requirements. applicable requirements. b. RPS Class b. RPS Class II Renewable Renewable Generation Generation UnitsUnits andand RPS RPS Class Class II II Renewable Renewable Generation Generation Units with Units with aa Commercial Commercial Operation Operation Date Date prior prior to to January January 1, 1, 2019, 2019, that that are are co-located co-located with aa Qualified with Qualified Energy Energy Storage Storage System System that that has has aa Commercial Commercial Operation Operation DateDate onon or or after January after January 1, 1, 2019, 2019, subject subject toto the the following: following: i.i. Minimum Minimum NominalNominal Rated Rated Power. Power. The The nominal nominal rated rated power capacity of power capacity of aa Qualified Energy Qualified Energy Storage Storage System System paired paired with with aa RPS RPS Class Class II Renewable Renewable Generation Generation Unit or Unit or RPS RPS Class Class II II Renewable Renewable Generation Generation Unit Unit must must be be atat least least 25% 25% of of the the nameplate power nameplate rating of power rating of the the RPS Class II Renewable RPS Class Renewable Generation Generation Unit Unit oror RPS RPS Class Class II Renewable II Renewable Generation Generation Unit. Unit. Special Provisions Special Provisions forfor Derated Derated Qualified Qualified Energy Energy Storage Storage Systems Systems paired paired with with RPS Class RPS Renewable Generation Class II Renewable Generation Units Units andand RPS RPS ClassClass II II Renewable Renewable Generation Units. Generation Units. A A Qualified Qualified Energy Energy Storage Storage System's System's nominal nominal ratedrated power power capacity may capacity may bebe derated derated toto meet meet thethe four four hour hour minimum minimum nominal nominal useful useful energy energy requirements in requirements in 225 225 CMR CMR 21.05(1)(a)l provided its 21.05(1)(a)1.b.i. provided its derated derated power capacity power capacity is still is still at at least least 25% 25% of of the the nameplate nameplate power rating of power rating of the the RPS RPS Class Class II Renewable Renewable Generation Unit Generation Unit or or RPS RPS Class Class II II Renewable Renewable Generation Generation Unit Unit with with which which itit is is paired. paired.

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ii. Minimum ii. Minimum Nominal Nominal Useful Useful Energy. Energy. TheThe nominal nominal useful useful energy energy capacity capacity ofof the the Energy Storage Energy Storage System System must must be at least be at least four four hours hours atat the the nominal nominal rated rated power. power. iii. Co-location. iii. Co-location. The The RPS RPS Class Class II or or Class Class IIII Renewable Renewable Generation Generation Unit Unit and and the the Qualified Energy Qualified Storage System Energy Storage System must must be located on be located on the the same same oror adjacent adjacent parcels parcels within the within the same same Distribution Distribution Company's Company's service service territory, territory, and and must must be interconnected be interconnected to the to the same same common common collector collector located located onon the the same same parcel(s) parcel(s) onon which which the the RPS RPS Class Class II or or Class Class II II Renewable Renewable Generation Generation UnitUnit and and Qualified Qualified Energy Energy Storage Storage System System facilities are facilities are located. located. 2. Qualified 2. Qualified Energy Energy Storage Storage Systems: Systems: A Qualified Energy A Qualified Energy Storage Storage System System mustmust operate operate primarily primarily toto store store and and discharge discharge renewable renewable energy energy as as demonstrated demonstrated by one or by one or more more ofof the the following factors: following factors: a. Co-location a. Co-location with with aa Qualified Qualified RPS RPS Resource Resource as as defined defined inin 225 225 CMR CMR 21.02 21.02 where where the the Qualified RPS Qualified RPS Resource Resource must must have have aa nameplate nameplate capacity capacity ofofat at least least 75% 75% of ofthe the nameplate nameplate capacity of capacity of the the energy energy storage; storage; b. Contractual b. Contractual pairing with aa Qualified pairing with Qualified RPSRPS Resource Resource thatthat demonstrates demonstrates to to the the Department's satisfaction Department's satisfaction that that the the Qualified Qualified Energy Storage System Energy Storage System operates operates primarily primarily to store to store and and discharge discharge renewable renewable energy; energy; c. Charging c. Charging coincident coincident with with periods periods ofof typically typically high high renewable renewable energy energy production production asas aa percent percent ofof the the grid grid generation generation mix mix as as defined defined below; below; 1. Spring: 1. Spring: 12:00 12:00 A.M. A.M. until until 6:00 6:00 A.M. A.M. andand 8:00 8:00 A.M. A.M. until until 4:00 4:00 P.M. P.M. 2. Summer: 2. Summer: 12:00 12:00 A.M. A.M. until until 6:00 6:00 A.M. A.M. andand 7:00 7:00 A.M. A.M. until until 2:00 2:00 P.M. P.M. 3. Fall: 3. Fall: 12:00 12:00 A.M. A.M. until until 6:00 6:00 A.M. A.M. andand 9:00 9:00 A.M. A.M. until until 3:00 3:00 P.M. P.M. 4. Winter: 4. Winter: 12:00 12:00 A.M. A.M. until until 6:00 6:00 A.M. A.M. andand 10:00 10:00 A.M. A.M. until until 3:00 3:00 P.M. P.M.

Energy Storage Energy Storage Charging Charging Windows Windows Clean Peak Clean Peak Wind-based Charging Wind-based Charging Hours Hours Solar-based Charging Solar-based Charging Hours Hours Season Season Spring Spring 12:00 A.M. 12:00 6:00 AM A.M. -- 6:00 AM 8:00 A.M. 8:00 A.M. -- 4:00 4:00 P.M. P.M. Summer Summer 12: :00 A.M. -- 6:00 6:00 AM AM 7:00 A.M. 7:00 A.M. -- 2:00 2:00 P.M. P.M. Fall Fall 12: :00 A.M. -- 6:00 6:00 AM AM 9:00 A.M. 9:00 3:00 P.M. A.M. -- 3:00 P.M. Winter Winter 12: :00 6:00 AM A.M. -- 6:00 AM 10:00 A.M. 10:00 A.M. -- 3:00 3:00 P.M. P.M.

d. Inclusion d. Inclusion of of an an operational operational schedule schedule in in the the Qualified Qualified Energy Storage System's Energy Storage System's Interconnection Service Interconnection Service Agreement Agreement demonstrating demonstrating that that the the Qualified Qualified Energy Energy Storage Storage System serves System serves to to resolve resolve load load flow flow or or power power quality quality concerns concerns otherwise otherwise associated associated with with intermittent renewable intermittent renewable energy energy resources. resources. 3. Demand 3. Demand Response Response Resources: Resources: Demand Demand Response Response Resources Resources must must demonstrate demonstrate that that changes to changes to electric electric usage usage from from their their normal normal consumption consumption patterns patterns are are measurable measurable and and verifiable. The verifiable. The Department Department shall publish aa Guideline shall publish Guideline on on Demand Demand Response Response Resources Resources to to explain the explain the parameters parameters of of Demand Demand Response Response Resources Resources inin the the Clean Clean Peak Peak Standard. Standard. A facility A facility that that generates generates electricity, electricity, including Qualified RPS including aa Qualified RPS Resource, Resource, shall shall not not be be Demand Response considered aa Demand considered Response Resource. Resource.

(2) Metering. (2) Metering. A Clean Peak A Clean Peak Resource Resource shall shall meter meter and and report report 15-minute 15-minute interval interval performance performance in compliance in compliance with with standards standards andand protocols protocols asas established established by third-party Program by aa third-party Program Administrator designated Administrator designated by the Department. by the Department. The The Department Department maymay grant grant anan exception exception toto the the 15-minute interval 15-minute interval and and designate designate aa shorter shorter or or longer longer interval interval on case-by-case basis. on aa case-by-case basis. The The Program Administrator Program Administrator shall shall be the designated be the designated independent independent third-party third-party meter meter reader, reader, as as defined defined in Rule in Rule 2.5(j) 2.5(j) of of the the NEPOOL NEPOOL GIS GIS Operating Operating Rules, Rules, or or any any successor successor rule. rule. All All standards standards and and metering protocols metering protocols shall shall be subject to be subject to review review and and approval approval by the Department. by the Department. A Clean Peak A Clean Peak Resource shall Resource shall submit submit metered metered data data toto the the Program Program Administrator Administrator for for all all hours hours ofof the the previous previous month. Subject month. Subject to to review review and and approval approval by the Department, by the Department, thethe Program Program Administrator Administrator maymay assess Clean assess Clean Peak Peak Resources Resources aa fee fee associated associated with with the the administration administration ofof the the CPS. CPS.

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The electrical The electrical energy energy output output oror performance of aa Clean performance of Clean Peak Peak Resource Resource shall shall be verified by be verified the by the Program Administrator Program Administrator for for the the purpose of calculating purpose of calculating the the number number of of Clean Clean Peak Peak Energy Energy Certificates aa qualified Certificates qualified resource resource produced produced in in the the previous previous month. month. The The Program Program Administrator Administrator shall report shall report the the number number of of Clean Clean Peak Peak Energy Certificates each Energy Certificates each qualified qualified resource resource is is due due to to receive to receive to NEPOOL NEPOOL GIS GIS for for the the purpose of minting purpose of minting Clean Clean Peak Peak Energy Energy Certificates. Certificates.

(3) Clean (3) Clean Peak Peak Seasons. Seasons. The four (a) The (a) four Clean Clean Peak Peak Seasons Seasons are are established established as: as: 1. Spring: March 1through May 14; 1. Spring: March 1 st through May 14 th ; Summer: May 2. Summer: 2. May 15 15 th through September through September 1414;th ; Fall: September 3. Fall: 3. September 15 15 through th through November November 3030; th ; st� 4. Winter: December 1 through February 28;; and 4. Winter: December 1 through February 28 th and as as adjusted adjusted by leap years. by leap years.

(4) Seasonal (4) Seasonal Peak Peak Periods. Periods. The The Seasonal Seasonal Peak Peak Periods Periods establish establish the the time time of of day day in in which which aa qualified resource qualified resource produces produces Clean Clean Peak Peak Energy Energy Certificates. Certificates. (a) The (a) The Seasonal Seasonal Peak Peak Periods Periods are are established established as as the the periods periods of of all all Business Business Days Days inin each each Clean Peak Clean Peak Season Season that that historically historically coincide coincide with with Massachusetts' Massachusetts' peak electricity demand: peak electricity demand: 1. Spring: 1. Spring: from from 5:00 5:00 P.M. P.M. until until 9:00 9:00 P.M. P.M. 2. Summer: 2. Summer: from from 4:00 4:00 P.M. P.M. until until 8:00 8:00 P.M. P.M. Fall: from 3. Fall: 3. from 4:00 4:00 P.M. P.M. until until 8:00 8:00 P.M. P.M. 4. Winter: 4. Winter: from from 4:00 4:00 P.M. P.M. until until 8:00 8:00 P.M. P.M.

(5) Clean (5) Clean Peak Peak Energy Energy Certificate Certificate Generation. Generation. Clean Clean Peak Peak Energy Certificates generated Energy Certificates by aa generated by Clean Peak Clean Peak Resource Resource shall shall be be equal equal to to the the sum sum ofof the the metered metered average average MW MW performance performance of of aa Clean Peak Clean Peak Resource Resource for for each each hour hour during during aa Seasonal Seasonal Peak Peak Period, Period, multiplied multiplied by the Seasonal by the Seasonal Multiplier, and Multiplier, and any any other other applicable applicable multipliers multipliers asas described described in in 225 225 CMR CMR 21.05(6)(c) 21.05(6)(c) through through (g), plus (g), plus the the metered metered average average MW MW performance during the performance during the Hour Hour of of Actual Actual Monthly Monthly System System Peak Peak Demand, multiplied Demand, multiplied by the Seasonal by the Seasonal Multiplier, Multiplier, the the Actual Actual Monthly Monthly System System Peak Peak Multiplier, Multiplier, and and any other any other applicable applicable multipliers multipliers as as described described inin 225 225 CMR CMR 21.05(6)(c) 21.05(6)(c) through through (g). (g).

(6) Clean (6) Clean Peak Peak Energy Energy Certificate Certificate Multipliers. Multipliers. The The Clean Clean Peak Peak Energy Energy Certificate Certificate Multipliers Multipliers shall modify shall modify the the number number ofof Clean Clean Peak Peak Energy Energy Certificates that aa Clean Certificates that Clean Peak Peak Resource Resource generates generates as follows: as follows: (a) Seasonal (a) Seasonal Multiplier. Multiplier. Seasonal Seasonal multipliers multipliers are are established established for for each each Clean Clean Peak Peak Season Season to reflect to reflect the the level level of of emissions emissions andand magnitude magnitude of of peak peak demands demands in in aa season. season. Seasonal Seasonal Multipliers shall Multipliers shall be: be: Spring: 11 a. Spring: a. b. Summer: 44 b. Summer: c. Fall: c. Fall: 11 d. Winter: d. Winter: 44 (b) Actual (b) Actual Monthly Monthly System System Peak Peak Multiplier. Multiplier. The The Actual Actual Monthly Monthly System System Peak Peak Multiplier Multiplier shall modify shall modify the the number number of of Clean Clean Peak Peak Energy Certificates generated Energy Certificates generated during during the the Hour Hour of of Actual Monthly Actual Monthly System System Peak. Peak. The The multiplier multiplier shall shall be be 25. 25. (c) Resilience (c) Resilience Multiplier. Multiplier. The The Resilience Resilience Multiplier Multiplier modifies modifies thethe number number of of Clean Clean Peak Peak Energy Certificates Energy Certificates generated generated byby aa Clean Clean Peak Peak Resource Resource thatthat is is also also aa Resilient Resilient Facility Facility and and can provide can electric power provide electric power toto aa load load during during external external outage outage conditions. conditions. Clean Clean Peak Peak Resources that Resources that can can demonstrate demonstrate the the added added ability ability to to provide provide electricity electricity to to load load during during an an external outage external outage will receive aa Resilience will receive Resilience Multiplier Multiplier onon all all eligible eligible output output occurring occurring during during Seasonal Peak Seasonal Peak Periods. Periods. The The multiplier multiplier shall shall be 1.5. be 1.5. (d) Existing (d) Existing Resource Resource Multiplier. Multiplier. The The Existing Existing Resource Resource Multiplier Multiplier modifies modifies the the number number of Clean of Clean Peak Peak Energy Energy Certificates Certificates generated generated by an Existing by an Existing Resource. Resource. The The multiplier multiplier shall shall be 0.1. be 0.1. (e) Contracted (e) Contracted Resource Resource Multiplier. Multiplier. The The Contracted Contracted Resource Resource Multiplier Multiplier modifies modifies the the number of number of Clean Clean Peak Peak Energy Certificates generated Energy Certificates generated by by aa Contracted Contracted Resource. Resource. TheThe multiplier shall multiplier shall be 0.01. be 0.01. (f) SMART (f) SMART ES ES Resource Resource Multiplier. Multiplier. The The SMART SMART ES ES Resource Resource Multiplier Multiplier modifies modifies the the number of number of Clean Clean Peak Peak Energy Certificates generated Energy Certificates generated by by aa SMART SMART ES ES Resource. Resource. TheThe multiplier shall multiplier shall be 0.3. be 0.3.

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(g) Distribution (g) Distribution Circuit Circuit Multiplier. Multiplier. TheThe Department Department may establish aa Distribution may establish Distribution Circuit Circuit Multiplier that Multiplier that modifies modifies the the number number of of Clean Clean Peak Peak Energy Energy Certificates Certificates generated generated by by aa Clean Clean Peak Resource Peak Resource based based on on the the locational locational value value ofof the the unique unique loadload profile profile and and particular particular needs needs of each of each distribution distribution circuit, circuit, as as defined defined by by thethe Department, Department, in in consultation consultation withwith the the Distribution Companies. Distribution Companies. Clean Clean Peak Peak Resources Resources which which areare owned owned byby aa Distribution Distribution Company Company are not are not eligible eligible forfor aa Distribution Distribution Circuit Circuit Multiplier. Multiplier. The The Department Department may may consider consider Distribution Circuit Distribution Circuit Multipliers Multipliers greater greater than than or or less less than than one. one. The The Department, Department, in in coordination with coordination with thethe Distribution Distribution Companies, Companies, shall shall determine determine whether whether sufficient sufficient data data is is available to enable effective implementation of a Distribution Circuit Multiplier no later than available to enable effective implementation of a Distribution Circuit Multiplier no later than December 31, December 31, 2022. 2022. If If the the Department Department determines determines thatthat aa Distribution Distribution Circuit Circuit Multiplier Multiplier shall shall be established, the be established, the Department Department shallshall publish publish aa Guideline Guideline on on the the Distribution Distribution Circuit Circuit Multiplier that Multiplier that provides provides the the multiplier multiplier amount(s) amount(s) and and explains explains thethe parameters parameters of of the the applicability of applicability of the the Distribution Distribution Circuit Circuit Multiplier. Multiplier. (h) Near-term (h) Resource Multiplier. Near-term Resource Multiplier. TheThe Near-term Resource Multiplier Near-term Resource Multiplier modifies modifies thethe number of number of Clean Clean Peak Peak Energy Energy Certificates Certificates generated generated by by aa Qualified Qualified Energy Storage System Energy Storage System that is that is not not co-located co-located withwith aa Qualified Qualified RPS RPS Resource Resource or or aa Demand Demand Response Response Resource Resource andand is interconnected is interconnected to to the the Distribution Distribution System. System. TheThe Qualified Qualified Energy Energy Storage Storage System System must must not not received aa Statement have received have Statement of of Qualification Qualification on on oror before January 1, before January 1, 2025, 2025, and and must must have have aa Commercial Operation Commercial Operation Date Date before before January January 1, 1, 2027. 2027. No Qualified Energy No Qualified Storage System Energy Storage System shall receive shall receive both both the the Distribution Distribution Circuit Circuit Multiplier Multiplier and and the the Near-term Resource Multiplier. Near-term Resource Multiplier. The Department The Department shall shall set set an an initial initial eligibility eligibility cap cap for for the the Near-term Near-term Resource Resource Multiplier Multiplier ofof 50 MW 50 MW of of cumulative cumulative Qualified Qualified Energy Energy Storage Storage System System capacity. capacity. After After notice notice and and opportunity for opportunity for public comment, the public comment, the Department Department may may increase increase this this cap cap in in the the future. future. No No individual or individual or affiliated affiliated Owner, Owner, Operator, Operator, oror Authorized Authorized Agent Agent may may qualify qualify forfor greater greater than than 50% of 50% of the the capacity capacity designated designated by the Department. by the Department. The The multiplier multiplier shall shall bebe two two for for years years one one through ten through ten from from thethe Qualified Qualified Energy Energy Storage Storage System’s System's effective effective date date on on its its Statement Statement of of Qualification. The Qualification. The Department Department may publish aa guideline may publish guideline that that explains explains thethe parameters parameters of of the the applicability of applicability of the the Near-term Resource Multiplier. Near-term Resource Multiplier. (i) Review. (i) Review. Beginning Beginning in in 2024 2024 and and not not less less frequently frequently thanthan every every four four years years thereafter, thereafter, the the Department shall Department conduct aa review shall conduct review ofof the the Clean Clean Peak Peak Energy Energy Certificate Certificate Multipliers Multipliers and, and, following stakeholder following stakeholder review review andand input, input, may may modify modify the the multipliers. multipliers.

(7) Special (7) Special Provision Provision forfor Clean Clean Peak Peak Energy Energy Certificate Certificate Generation Generation for for Energy Energy Reserves. Reserves. (a) The (a) The Department Department may may establish establish aa mechanism mechanism by which Clean by which Clean Peak Peak Energy Energy Certificates Certificates may be may be generated generated by provision of by provision of energy energy reserves, reserves, subject subject to to applicable applicable requirements requirements including, but including, not limited but not limited to, to, such such provision provision of of energy energy reserves reserves being directly measurable being directly measurable and and verifiable in verifiable in accordance accordance with with 225 225 CMR CMR 21.05(2). 21.05(2). The The Department Department shall shall determine determine whether whether such aa mechanism such mechanism can can be implemented no be implemented no later later than than December December 31, 31, 2020. 2020. If If the the Department Department determines that determines such aa mechanism that such mechanism shall shall be be established, established, the the Department Department shallshall publish publish aa Guideline on Guideline on Energy Energy Reserves that explains Reserves that explains the the mechanism mechanism andand its its applicability. applicability.

(8) Clean (8) Clean Peak Peak Certificate Certificate Procurement. Procurement. (a) Each (a) Each Distribution Distribution Company Company shall shall competitively competitively procure procure Clean Clean Peak Peak Energy Energy Certificates Certificates pursuant to M.G.L. pursuant to M.G.L. c. 25A, §§ 17(c). c. 25A, 17(c). Clean Clean Peak Peak Certificate Certificate procurements procurements shallshall be designed be designed to achieve to achieve an an initial initial target target of of at at least least 30% 30% ofof the the total total market market obligation obligation of of Retail Retail Electricity Electricity in aa given Suppliers in Suppliers given Compliance Compliance Year.Year. No later than No later than November November 12, 12, 2024, 2024, thethe Department Department establish aa staggered shall establish shall staggered procurement schedule for procurement schedule for the the issuance issuance for for requests requests forfor proposals proposals for Clean for Clean Peak Peak Certificates. Certificates. (b) The (b) The Department Department may may adjust adjust the the procurement target in procurement target in response response toto the the Market Market Supply Supply in in any Compliance any Compliance Year. Year. After After notice notice and and opportunity opportunity forfor public comment, the public comment, the Department Department may increase may increase the the target target for for the the Clean Clean Peak Peak Certificate Certificate Procurement Procurement or or determine determine that that additional procurements additional procurements are are not not required required based based onon Market Market Supply Supply conditions. conditions. (c) A (c) A request request for for proposals proposals to to conduct conduct the the competitive competitive procurement procurement shallshall be be developed developed by by the Distribution the Distribution Companies, Companies, in in consultation consultation with with and and subject subject toto review review andand approval approval by the by the Department. Such Department. Such request request for for proposals proposals may may include include the the following following components: components:

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(d) Any (d) Any contracts contracts resulting resulting from competitive procurement from aa competitive under this procurement under this section section shall shall be be subject to subject to review review and and approval approval by by the the Department Department of of Public Public Utilities. Utilities. (e) The (e) The Department Department may establish aa Guideline may establish Guideline on on Clean Clean Peak Peak Certificate Certificate Procurements Procurements that that explains the explains the parameters and provides parameters and provides additional additional detail detail to to the the procurement procurement process. process.

21.06: Qualification 21.06: Qualification Process Process for for Clean Clean Peak Peak Resources. Resources.

(1) Statement (1) Statement ofof Qualification Qualification Application. Application. A Statement of A Statement of Qualification Qualification Application Application shall shall be be submitted to the Department by the Owner or Operator of the Clean Peak Resource or by the submitted to the Department by the Owner or Operator of the Clean Peak Resource or by the Authorized Agent Authorized Agent for for an an Aggregation. Aggregation. The The applicant applicant must must use use the the most most current current forms forms and and associated instructions associated instructions provided provided by the Department, by the Department, andand must must include include all all information, information, documentation, and documentation, and assurances assurances required required by by such such forms forms and and instructions. instructions.

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(2) Review (2) Review Procedures. Procedures. (a) The (a) The Department Department will will notify notify the the applicant applicant when when the the Statement Statement of of Qualification Qualification Application is Application is administratively administratively complete complete or or if if additional additional information information is is required required pursuant to pursuant to 225 CMR 225 CMR 21.06(1). 21.06(1). (b) The (b) The Department Department may, may, in in its its sole sole discretion, discretion, provide an opportunity provide an opportunity for for public comment public comment on any on any Statement Statement of of Qualification Qualification Application. Application.

(3) Issuance (3) Issuance or or Non-issuance Non-issuance of of aa Statement Statement ofof Qualification. Qualification. (a) If the Department finds that a resource meets the (a) If the Department finds that a resource meets the requirements requirements for for eligibility as aa Clean eligibility as Clean Peak Resource Peak Resource pursuant pursuant to to 225 225 CMRCMR 21.00, 21.00, the the Department Department will will provide the Owner, provide the Owner, Operator, or Operator, or the the Authorized Authorized Agent Agent forfor such such Aggregation Aggregation withwith aa Statement Statement of of Qualification. Qualification. (b) The (b) The Statement Statement of of Qualification Qualification shall shall include include any any applicable applicable restrictions restrictions and and conditions conditions that the that the Department Department deems deems necessary necessary to to ensure ensure compliance compliance by by aa Clean Clean Peak Peak Resource Resource or or Aggregation with Aggregation with the the provisions provisions of of 225 225 CMR CMR 21.00. 21.00. (c) If (c) If the the Clean Clean Peak Peak Resource Resource or or Aggregation Aggregation doesdoes notnot meet meet the the requirements requirements for for eligibility, the eligibility, the Department Department shall shall provide written notice provide written notice toto the the Owner, Owner, Operator, Operator, oror Authorized Authorized Agent, including Agent, including the the Department's Department's reasons reasons for for such such finding. finding. (d) In (d) In calendar calendar year 2020, aa resource year 2020, resource may receive aa Statement may receive Statement of of Qualification Qualification which which back-dates qualification back-dates qualification toto January January 1, 1, 2020 2020 or or the the Commercial Commercial Operation Operation Date, Date, whichever whichever is later. is later.

(4) CPS (4) CPS Effective Effective Date. Date. The The CPS CPS Effective Effective Date Date shall shall be be the the earliest earliest date date on on or or after after the the Commercial Operation Commercial Operation Date Date on on which which the the operation of aa Clean operation of Clean Peak Peak Resource Resource can can result result in in the the creation of creation of Clean Clean Peak Peak Energy Certificates, as Energy Certificates, as determined determined by the Department. by the Department.

(5) Notification (5) Requirements for Notification Requirements for Change Change inin Eligibility Eligibility Status. Status. The The Owner Owner or or Operator Operator of of aa Clean Peak Clean Peak Resource Resource shall shall notify notify the the Department Department of of any any changes changes inin the the technology, technology, operation, operation, emissions, fuel emissions, fuel sources, sources, energy energy resources, resources, enrollment enrollment in in incentive incentive program(s), program(s), oror other other characteristics of characteristics of the the Clean Clean Peak Peak Resource(s) Resource(s) that that may affect the may affect the eligibility eligibility of of the the Clean Clean Peak Peak Resource. The Resource. The Owner, Owner, Operator, Operator, oror Authorized Authorized Agent Agent shall shall submit submit the the notification notification to to the the Department no Department no later later than than five five days days following following the the end end ofof the the month month during during which which such such changes changes were implemented. were implemented. The The notice notice shall shall state state the the date date the the changes changes were were made made toto the the Clean Clean Peak Peak Resource and Resource and describe describe the the changes changes inin sufficient sufficient detail detail to to enable enable the the Department Department to to determine determine if if aa change change in in eligibility eligibility is is warranted. warranted.

(6) Notification (6) Requirements for Notification Requirements for Change Change in in Ownership, Ownership, Generation Generation Capacity, Capacity, or or Contact Contact Information. The Information. The Owner Owner oror Operator Operator of of aa Clean Clean Peak Peak Resource Resource shall shall notify the Department notify the Department ofof any changes any changes in in the the ownership, ownership, operating operating entity, entity, capacity, capacity, NEPOOL NEPOOL GIS GIS account account for for the the Clean Clean Peak Resource Peak Resource oror Aggregation, Aggregation, or or contact contact information information for for the the Clean Clean Peak Peak Resource Resource or or Aggregation. The Aggregation. The Owner Owner oror Operator Operator shall shall submit submit the the notification notification to to the the Department Department nono later later than five than five days days following following the the end end of of the the month month during during which which such such changes changes were were implemented. implemented.

(7) Suspension (7) Suspension or or Revocation Revocation of of Statement Statement of of Qualification. Qualification. The The Department Department may may suspend suspend or or revoke aa Statement revoke Statement of of Qualification Qualification if if the the Owner Owner or or Operator Operator of of aa Clean Clean Peak Peak Resource Resource or or Authorized Agent Authorized Agent of of an an Aggregation Aggregation fails fails to to comply comply with with 225 225 CMR CMR 21.00 21.00 or if aa Clean or if Clean Peak Peak Resource does Resource does not not operate operate during during aa consecutive consecutive 12-month 12-month period. period.

21.07: Clean Peak 21.07: Clean Peak Standard Standard

(1) CPS (1) CPS Minimum Minimum Standard. Standard. The The total total annual annual sales sales of of each each Retail Retail Electricity Product sold Electricity Product sold to to Massachusetts End-use Massachusetts End-use Customers Customers by by aa Retail Retail Electricity Supplier, under Electricity Supplier, under contracts contracts executed executed or or extended on extended on or or after after January January 1, 1, 2020, 2020, shall include aa minimum shall include minimum percentage percentage of of electrical electrical energy energy sales with sales with Clean Clean Peak Peak Certificates. Certificates. (a) The (a) The CPS CPS Minimum Minimum Standard Standard shall shall be be set set to to the the percentage identified in percentage identified in 225 225 CMR CMR 21.07(1)(a). 21.07(1)(a).

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Compliance Year Compliance Year Cumulative Minimum Cumulative Minimum Percentage Percentage 2019 2019 0.0% 0.0% 2020 2020 1.5% 1.5% 2021 2021 3.0% 3.0% 2022 2022 4.5% 4.5% 2023 2023 6.0% 6.0% 2024 2024 4.0% 4.0% 2025 2025 5.5% 5.5% 2026 2026 7.0% 7.0% 2027 2027 9.0% 9.0% 2028 2028 13.0% 13.0% 2029 2029 19.0% 19.0% 2030 2030 25.0% 25.0% 2031 2031 29.0% 29.0% 2032 2032 31.0% 31.0% 2033 2033 32.5% 32.5% 2034 2034 34.0% 34.0%

(b) The (b) The CPS CPS Minimum Minimum Standard Standard for for each each Compliance Compliance Year Year shall shall increase increase 1.5% 1.5% annually annually after 2034. after 2034.

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(2) After (2) After 2050, 2050, the the CPS CPS Minimum Minimum Standard Standard shall shall cease cease to to exist exist unless unless modified modified by law. by law.

(3) Beginning (3) Beginning inin 2024 2024 and and not not less less frequently frequently than than every every four four years years thereafter, thereafter, the the Department shall Department conduct aa review shall conduct review of of the the CPS CPS Minimum Minimum Standard Standard and, and, following following stakeholder review stakeholder review and and input, input, may may modify the standard. modify the standard.

21.08: Compliance Procedures 21.08: Compliance Procedures for for Retail Retail Electricity Electricity Suppliers Suppliers

(1) Standard (1) Standard Compliance. Compliance. EachEach Retail Retail Electricity Electricity Supplier Supplier shall shall be deemed to be deemed to be be in in compliance compliance with 225 with 225 CMR CMR 21.00 21.00 if if the the information information provided provided inin the the Compliance Compliance Filing Filing submitted submitted pursuant pursuant to 225 to 225 CMR CMR 21.09 21.09 is is true true and and accurate accurate and and demonstrates demonstrates compliance compliance with with 225 225 CMR CMR 21.07. 21.07.

(2) Banked (2) Banked Compliance. Compliance. A A Retail Retail Electricity Electricity Supplier Supplier maymay use use Clean Clean Peak Peak Energy Certificates Energy Certificates produced in produced in one one Compliance Compliance Year Year for for compliance compliance in in either either or or both both of of the the two two subsequent subsequent Compliance Year(s), Compliance Year(s), subject subject to to the the limitations limitations in in 225 225 CMR CMR 21.08(2) 21.08(2) and and provided provided that that the the Retail Retail Electricity Supplier is Electricity Supplier is in in compliance compliance withwith 225 225 CMR CMR 21.00 21.00 for for all all previous previous Compliance Compliance Years. Years. In addition, In addition, the the Retail Retail Electricity Supplier shall Electricity Supplier shall demonstrate demonstrate to to the the satisfaction satisfaction of of the the Department Department that such that such Clean Clean Peak Peak Certificates: Certificates: (a) were (a) were inin excess excess ofof the the Clean Clean Peak Peak Energy Certificates needed Energy Certificates needed for for compliance compliance in in the the Compliance Year Compliance Year inin which which they were generated, they were generated, andand that that such such excess excess Clean Clean Peak Peak Energy Energy Certificates have Certificates have not not previously previously been used for been used for compliance compliance withwith 225 225 CMR CMR 21.00; 21.00; (b) do (b) do not not exceed exceed 30% 30% ofof the the Clean Clean Peak Peak Energy Certificates needed Energy Certificates needed by the Retail by the Retail Electricity Electricity Supplier for Supplier for compliance compliance with with the the CPS CPS Minimum Minimum Standard Standard in in the the year year they were generated, they were generated, subject to subject to 225 225 CMR CMR 21.09(2)(d); 21.09(2)(d); (c) were (c) were produced produced during during the the Compliance Compliance YearYear in in which which they they are are claimed claimed asas excess; excess; and and (d) have (d) have not not otherwise otherwise been, nor will been, nor will be, sold, retired, be, sold, retired, claimed claimed or or represented represented as as part part of of electrical energy electrical energy output output or or sales, sales, or or used used to to satisfy satisfy obligations obligations inin jurisdictions other than jurisdictions other than Massachusetts. Massachusetts.

(3) Alternative (3) Alternative Compliance. Compliance. A A Retail Retail Electricity Electricity Supplier Supplier may discharge its may discharge its obligations obligations under under 225 CMR 1.07, 21.07, in in whole whole or or in in part, for any part, for any Compliance Compliance Year Year by making an by making an Alternative Alternative Compliance Payment Compliance Payment (ACP) (ACP) to to the the MassCEC. MassCEC. Such Such funds funds shall shall be be held held in in an an account account separate separate from other from other accounts accounts of of the the MassCEC. MassCEC. (a) CPS (a) CPS Procedures. Procedures. A A Retail Retail Electricity Supplier shall Electricity Supplier shall receive receive Alternative Alternative Compliance Compliance Credits from Credits from thethe Department, Department, subject subject toto the the following: following: 1. The 1. The quantity quantity of of Alternative Alternative Compliance Compliance Credits Credits that that can can be applied to be applied to its its obligations obligations under 225 under 225 CMR CMR 21.07( 21.07(1) 1) shall shall be be determined determined by dividing the by dividing the total total of of ACPs ACPs paidpaid for for the the Compliance Year Compliance Year by the ACP by the ACP Rate Rate for for that that Compliance Compliance Year.Year. 2. The 2. The ACP ACP RateRate for for the the CPS CPS Minimum Minimum Standard Standard shall shall be be $45 $45 per required Alternative per required Alternative Compliance Credit Compliance Credit for for Compliance Compliance Year Year 2020. 2020. TheThe ACP ACP rate rate shall shall remain remain $45$45 through through Compliance Year Compliance Year 2025. 2025. Starting Starting Compliance Compliance Year Year 2026, 2026, thethe ACP ACP Rate Rate shall shall be $65 be $65 through Compliance through Compliance Year Year 2032. 2032. Thereafter, Thereafter, the the ACP ACP Rate Rate shall shall be be $45 $45 and and will will hold hold fixed at fixed at that that price for the price for the remainder remainder of of the the program, subject to program, subject to the the provisions provisions ofof 225 CMR 225 CMR 21.08(3)(a)3. 21.08(3)(a)3. 3. Beginning 3. Beginning in in 2024 2024 andand not not less less frequently frequently than than every every four four years years thereafter, thereafter, the the Department shall Department shall conduct conduct aa review review of of the the ACP ACP Rate Rate and, and, following following stakeholder stakeholder review review and input, and input, may may modify modify thethe ACP ACP rate. rate. 4. The 4. The Retail Retail Electricity Supplier shall Electricity Supplier shall include include with with itsits Annual Annual Compliance Compliance Filing Filing copies of copies of any any ACP ACP receipt(s) receipt(s) forfor ACPs ACPs made made to to the the MassCEC MassCEC for for the the Compliance Compliance Year. Year. (b) Use (b) Use ofof Funds. Funds. The The Department Department shallshall oversee oversee thethe use use of of ACP ACP funds funds by the MassCEC, by the MassCEC, so as so as to to further further thethe commercial commercial development development of of Clean Clean Peak Peak Resources Resources or or promote projects promote projects or activities or activities that that reduce reduce greenhouse greenhouse gas gas emissions emissions or or ratepayer ratepayer costs. costs.

225 CMR: DEPARTMENT 225 CMR: DEPARTMENT OF OF ENERGY ENERGY RESOURCES RESOURCES

21.09: Annual Compliance 21.09: Annual Compliance Filings Filings for for Retail Retail Electricity Electricity Suppliers Suppliers

(1) Date (1) Date of of Annual Annual Compliance Compliance Filing. Filing. For For each each Compliance Compliance Year, Year, the the Retail Retail Electricity Electricity Supplier annually Supplier annually shall shall file file an an annual annual Compliance Compliance Filing Filing with with the the Department Department no no later later than than the the first day first day of of July, July, or or the the first first Business Business Day thereafter, of Day thereafter, of the the subsequent subsequent Compliance Compliance Year. Year.

(2) Contents (2) Contents ofof Annual Annual Compliance Compliance Filing. Filing. For For each each Retail Retail Electricity Product, the Electricity Product, the Filing Filing shall shall document compliance document compliance withwith the the provisions provisions of of 1.07 225 CMR 21.07 and and 21.08 21.08 toto the the satisfaction satisfaction ofof the the Department and Department and shall shall include, include, but not be but not limited to, be limited to, the the following: following: (a) Total (a) Total Electrical Electrical Energy Energy Sales Sales toto End-use End-use Customers. Customers. Documentation Documentation of of the the total total MWhs MWhs of electrical of electrical energy energy allocated allocated by the Retail by the Retail Electricity Electricity Supplier Supplier toto End-use End-use Customers Customers in in the the Compliance Year. Compliance Year. (b) Electrical (b) Electrical Energy Energy Sales Sales toto End-use End-use Customers Customers by by Product. Product. Documentation Documentation of of the the total total MWhs of MWhs of each each Retail Retail Electricity Product allocated Electricity Product allocated to to End-use End-use Customers Customers in in the the Compliance Compliance Year, verified Year, verified by an independent by an independent thirdthird party satisfactory to party satisfactory to the the Department, consistent with Department, consistent with the Guidelines. the Guidelines. Such Such allocation allocation is is defined defined asas the the quantity quantity ofof the the Retail Retail Electric Electric Supplier's Supplier's certificates obligation certificates obligation that that the the Retail Retail Electric Electric Supplier Supplier correctly correctly allocated allocated or or should should have have allocated to allocated to each each ofof the the Retail Retail Electric Electric Supplier's Supplier's Massachusetts Massachusetts retail retail subaccounts subaccounts at at the the NEPOOL NEPOOL GIS, GIS, in in compliance compliance with with all all relevant relevant provisions provisions of of Part Part 44 of of the the NEPOOL NEPOOL GIS GIS Operating Rules, Operating Rules, or or any any successor successor rules, rules, as as specified specified in in the the Guideline Guideline on on the the Determination Determination of Sales of Sales to to End-use End-use Customers. Customers. The The Department Department shallshall keep keep product information confidential product information confidential to the to the extent extent permitted permitted by law. by law. (c) Clean (c) Clean Peak Peak Energy Energy Certificates Certificates Allocated Allocated fromfrom the the Compliance Compliance Year.Year. Documentation Documentation of the of the total total MWhs MWhs of of each each Retail Retail Electricity Electricity Product Product allocated allocated to to End-use End-use Customers Customers that that were derived were derived from from Clean Clean Peak Peak Resource Resource generation generation during during the the Compliance Compliance Year. Year. (d) Clean (d) Clean Peak Peak Energy Energy Certificates Certificates Allocated Allocated from from Banked Banked Compliance. Compliance. Allocation Allocation by by Retail Electricity Retail Electricity Product Product of of any any quantity quantity ofof Clean Clean Peak Peak Resource Resource Generation Generation Attributes Attributes banked from banked from previous years pursuant previous years pursuant to to 225 CMR 21.08(2) 225 CMR 21.08(2) that that are are used used to to demonstrate demonstrate compliance with compliance with the the CPS CPS Minimum Minimum Standard Standard in in the the current current Compliance Compliance Year; Year; (e) Alternative (e) Alternative Compliance Compliance Credits. Credits. Allocation Allocation by Retail Electricity by Retail Electricity Product Product of of anyany Alternative Compliance Alternative Compliance Credits Credits claimed claimed pursuant pursuant to to 1.08(3)(a), 225 CMR 21.08(3)(a), along with aa copy along with copy of any of any Alternative Alternative Compliance Compliance Payment Payment receipt(s); receipt(s); andand (f) Attributes (f) Attributes Banked Banked for for Future Future Compliance. Compliance. Identification Identification of of any any quantity quantity of of Attributes Attributes from Clean from Clean Peak Peak Resource Resource Generation, Generation, that that the the Retail Retail Electricity Supplier anticipates Electricity Supplier anticipates claiming for claiming for purposes purposes of of Banked Banked Compliance Compliance in in subsequent subsequent years years under under the the Banked Banked Compliance provisions Compliance provisions of of 225 225 CMRCMR 21.08(2). 21.08(2). (g) Exempt (g) Exempt Contracts Contracts under under Minimum Minimum Standard. Standard. Identification Identification of of any any contract contract for for aa specific term specific term of of years years that that was was executed executed before January 1, before January 1, 2020, 2020, and and its its terms terms including, including, butbut not limited not limited to, to, the the execution execution and and expiration expiration dates dates of of the the contract contract and and the the annual annual volume volume of of electrical energy electrical energy supplied. supplied.

21.10: Reporting Requirements 21.10: Reporting Requirements

(1) Certification. (1) Certification. Any Any person person required required byby 225 225 CMRCMR 21.00 21.00 to to submit submit documentation documentation toto the the Department shall provide: Department shall provide: (a) the (a) the person's name, title person's name, title and and business address; business address; (b) the (b) the person's authority to person's authority to certify certify and and submit submit the the documentation documentation toto the the Department; Department; and and (c) the (c) the following following certification: certification: "I"I hereby certify, under hereby certify, under the the pains pains and and penalties of perjury, penalties of perjury, that II have that have personally examined and personally examined and am am familiar familiar with with the the information information submitted submitted herein herein and and based upon based upon mymy inquiry inquiry ofof those those individuals individuals immediately immediately responsible responsible for for obtaining obtaining the the information, II believe information, that the believe that the information information is is true, true, accurate, accurate, and complete. II am and complete. am aware aware that that there are there are significant significant penalties, both civil penalties, both civil and and criminal, criminal, for for submitting submitting false false information, information, including possible including possible fines fines and and imprisonment." imprisonment."

(2) Annual (2) Annual Clean Clean Peak Peak Resource Resource Report. Report. The The Department Department shall shall produce produce and and make make available available to the to the public an annual public an annual report report that that summarizes summarizes information information submitted submitted to to the the Department Department byby Retail Electricity Retail Electricity Suppliers Suppliers in in the the Annual Annual Compliance Compliance Filings Filings submitted submitted to to the the Department Department pursuant pursuant toto 1.09(2). 225 CMR 21.09(2). Such Such report report shall shall include include nonconfidential nonconfidential data data that that provides provides the the following: following: (a) the (a) the extent extent to to which which the the Retail Retail Electric Electric Suppliers Suppliers complied complied with with the the CPS CPS Minimum Minimum Standard; and Standard; and (b) the (b) the extent extent to to which which the the Retail Retail Electric Electric Suppliers Suppliers used used standard standard compliance, compliance, banked banked compliance, and compliance, and alternative alternative compliance compliance in in meeting meeting the the Minimum Minimum Standards. Standards.

225 DEPARTMENT OF CMR: DEPARTMENT 225 CMR: OF ENERGY ENERGY RESOURCES RESOURCES

21. 10: continued 21.10: continued

(3) Identification (3) Identification of of Clean Clean Peak Peak Resources. The Department Resources. The Department shall shall inform inform the the NEPOOL NEPOOL GIS GIS administrator which administrator which resources resources should should be be designated designated as as Clean Clean Peak Peak Resources Resources pursuant pursuant to to 1 225 CMR 21.00.

21. Inspection 1 1 Inspection 21.11: 1) 1 Document Document Inspection. The Department Inspection. The Department maymay audit audit the the accuracy accuracy of ofall all information information submitted submitted pursuant to 1 pursuant to 225 CMR 21.00. The Department may request and obtain from any Owner, The Department may request and obtain from any Owner, Operator, or Operator, or Authorized Authorized Agent Agent ofofaa Clean Clean Peak Peak Resource, Resource, including including Aggregations, Aggregations, and and from from any any Retail Electricity Retail Electricity Supplier Supplier information information that that the the Department Department determines determines necessary necessary to to monitor monitor compliance with compliance with and and enforcement enforcement of of 1 .00.

(2) Audit (2) Audit and and Site Site Inspection. Upon reasonable Inspection. Upon reasonable notice to aa Retail notice to Retail Electricity Electricity Supplier Supplier or or to to aa Clean Peak Clean Peak Resource Resource Owner, Owner, Operator, Operator, or or Authorized Authorized Agent, Agent, the the Department Department may may conduct conduct audits, which audits, which may may include include inspection inspection and and copying copying ofof records records and/or and/or site site visits visits to to an an Clean Clean Peak Peak Resource or Resource or aa Retail Retail Electricity Electricity Supplier's Supplier's facilities facilities including, including, but but not not limited limited to, to, all all files files and and documents that documents that the the Department Department determines determines are are related related to to compliance compliance withwith 225 CMR 2 1 225 CMR 21.00.

21. 12: Noncompliance 21.12: Noncompliance

Any Retail Any Retail Electricity Electricity Supplier Supplier oror Owner, Owner, Operator, Operator, or or Authorized Authorized Agent of aa Clean Agent of Clean Peak Peak Resource or Resource or Aggregation Aggregation that that fails fails to to comply comply with with the the requirements requirements of of225 CMR CMR 2 1 shall be 21.00 shall be subj to the subject to the provisions provisions in in 225 CMR 2 1 . 225 CMR 12(1) through 21.12(1) through (4). (4). 1) 1 Notice of Noncompliance. Notice of Noncompliance. A A failure failure to to comply comply with with the the requirements requirements of of 1 .00 shall be shall be determined determined byby the the Department. Department. A A written written Notice Notice of of Noncompliance Noncompliance shallshall be be prepared prepared and delivered and delivered by by the the Department Department to to any any Retail Retail Electricity Electricity Supplier Supplier or or Owner, Owner, Operator, Operator, or or Authorized Agent Authorized Agent ofof aa Clean Clean Peak Peak Resource Resource oror Aggregation Aggregation that that fails fails to to comply comply with with the the requirements of requirements of 225 225 CMR CMR 2 121.00. TheThe Notice Notice ofof Noncompliance Noncompliance shall shall describe describe the the Requirement(s) with Requirement(s) with which which thethe Retail Retail Electricity Electricity Supplier, Supplier, Owner, Owner, Operator, Operator, oror Authorized Authorized Agent failed Agent failed to to comply comply andand the the time time period period of of such such noncompliance. noncompliance.

(2) Publication (2) Publication of of Notice Notice of of Noncompliance. Noncompliance. A A Notice Notice of of Noncompliance Noncompliance maymay be be published published on the on the Department's Department's website website and and in in any any other other media media deemed deemed appropriate appropriate by by the the Department. Department. Such publication Such publication may may remain remain posted posted until until the the Retail Retail Electricity Electricity Supplier Supplier or or Owner, Owner, Operator, Operator, or or Authorized Agent Authorized Agent returns returns to to compliance compliance as as determined determined by by the the Department. Department.

(3) Planning (3) Planning Requirement. Requirement. A A Retail Retail Electricity Electricity Supplier Supplier that that fails fails to to meet meet the the requirements requirements of of 1 225 CMR during aa Compliance 21.07 during Compliance Year Year shall submit aa plan shall submit plan for for achieving achieving compliance compliance forfor the the subsequent three subsequent three years. The plan years. The plan shall shall be be filed filed with with the the Department Department no no later later than than the the first first day day of September of September ofof the the Compliance Compliance Year Year subsequent subsequent toto the the Compliance Compliance Year Year for for which which the the Retail Retail Electricity Supplier Electricity Supplier was was out out of of compliance compliance oror such such date date as as the the Department Department may may specify. specify.

(4) Suspension (4) Suspension oror Revocation Revocation ofof License. License. TheThe Department Department shall shall refer refer its its findings findings of of noncompliance to noncompliance to the the DPU. DPU. A A Retail Retail Electricity Electricity Supplier Supplier that that fails fails to to comply comply with with 225 CMR 225 CMR 21 may be 21.00 may be subject subject to to the the DPU DPU Licensure Licensure Action Action under under 220 220 CMR CMR 1 1 l 11.07(4)(c)1.

(5) Collection (5) Collection of of Financial Financial Security. Security. In In the the event event that that aa Retail Retail Electricity Electricity Supplier Supplier fails fails to to discharge its discharge its annual annual obligations obligations by by September September 11under st under 225 CMR 2 1 225 CMR by the 21.07, by the means means described described in 225 in CMR 2 1 225 CMR 21.08(1) 1 through through (4),(4), the the Department Department will will notify the Retail notify the Retail Electricity Electricity Supplier Supplier that that it must it must provide provide the the Department Department with with aa payment payment usingusing the the financial financial security security provided provided pursuant pursuant to 225 to CMR 14.08(4), 225 CMR unless aa Retail 14.08(4), unless Retail Electricity Electricity Supplier Supplier has has an an approved approved alternative alternative payment payment plan to plan to discharge discharge its its annual annual obligations obligations in in full full that that has has been been approved approved by by the the Department Department prior prior to September to September 11. st The payment . The payment shall, shall, within within 3030 days days of of notification notification by by the the Department, Department, be be paid paid to MassCEC to MassCEC for for deposit into aa segregated deposit into segregated account account as as required required by by 1 225 CMR and shall 21.08(3) and shall be in be in an an amount amount equal equal toto the the lesser lesser of: of: (a) the (a) the amount amount of of Alternative Alternative Compliance Compliance Payments Payments that that the the Retail Retail Electricity Electricity Supplier Supplier must must make in make in order order toto discharge discharge itsits annual annual obligation obligation under under 225 CMR 2 1 225 CMR or 21.08; or (b) the (b) the full full amount amount of of the the financial financial security. security.

225 CMR: 225 DEPARTMENT OF CMR: DEPARTMENT OF ENERGY ENERGY RESOURCES RESOURCES

21.1 continued 21.12: continued

(6) Partial (6) Partial Compliance. Compliance. In In the the event event that that the the collection collection of of financial financial security security under under 225 CMR 225 CMR 21.1 results in 21.12(5) results in the the collection collection of of an an amount amount ofof Alternative Alternative Compliance Compliance Payments Payments that that is is insufficient to insufficient to discharge discharge aa Retail Retail Electricity Electricity Supplier's Supplier's full full annual annual obligations obligations under under 225 CMR 225 CMR 21 the Retail 21.07, the Retail Electricity Electricity Supplier Supplier will will remain remain in in aa state state of of noncompliance, noncompliance, andand the the Department will Department will take take the the necessary necessary actions actions to to document document and and enforce enforce this this noncompliance, noncompliance, pursuant to pursuant to 1 . 1 .12(1)1 through through (4). (4).

(7) The (7) The Department Department reserves reserves all all rights rights to to take take any any and and all all appropriate appropriate actions actions toto ensure ensure the the collection of collection ofall all Alternative Alternative Compliance Compliance Payments Payments owed owed toto ensure ensure annual annual compliance compliance obligations obligations are fully are fully discharged discharged by Retail Electricity by aa Retail Electricity Supplier Supplier including, including, but but not not limited limited to, to, filing filing aa petition petition with the with the Department Department ofofPublic Public Utilities Utilities requesting requesting an an investigation into aa supplier investigation into supplier that that is is deemed deemed to be to be in in noncompliance noncompliance by by the the Department. Department.

21. 1 21.13: Severability Severability

If any If any provision provision of of 1 225 CMR is declared 21.00 is declared invalid, invalid, such such invalidity invalidity shall shall not not affect affect other other provisions or provisions or applications applications that that can can be be given given effect effect without without the the invalid invalid provision provision oror application. application.

REGULATORY AUTHORITY REGULATORY AUTHORITY

1 1.00: M.G.L. 25A, §§ 117(c). M.G.L. cc. 25A,

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