COMMONWEALTH OF MASSACHUSETTS
EXECUTIVE OFFICE OF
ENERGY AND ENVIRONMENTAL AFFAIRS
DEPARTMENT OF ENERGY RESOURCES
100 CAMBRIDGE ST., SUITE 1020
BOSTON, MA 02114
Telephone: 617-626-7300
Facsimile: 617-727-0030
Charles D. Baker Kathleen A. Theoharides
Governor Secretary
Karyn E. Polito Patrick C. Woodcock
Lt. Governor Commissioner
March 19, 2020
To: Clerk of House of Representatives, Clerk of the Senate
CC: Chairs of the Joint Committee on Telecommunications, Utilities, and Energy
RE: Submission of 225 CMR 21.00 Clean Peak Standard Regulation Submission to General
Court
Dear Clerks:
Pursuant to M.G.L. Chapter 25A Section 12, please find enclosed:
 225 CMR 21 Clean Peak Standard Regulation
 Summary of the Regulation in layman's terms
In addition to the requirements of Section 12, please also find enclosed:
 225 CMR 21 Clean Peak Standard Regulation in redline format over the originally
proposed regulation prior to the public comment period required by Chapter 30A; and
 DOER Response to public comments received
In the development of 225 CMR 21.00, the Clean Peak Standard Regulation, the pertinent
provisions of Chapter 30A, except section five, have been complied with.
Please direct questions and comments on this regulation to:
Serafina Zeringo
Serafina.T.Zeringo@mass.gov
617-626-1108
Sincerely,
s/Patrick C. Woodcock
Patrick C. Woodcock
Commissioner
 Regulation Summary
Summary of Draft Clean Peak Energy Standard –225 CMR 21.00
The Clean Peak Energy Standard was established as part of the Act to Advance Clean Energy of
2018 and is codified at M.G.L. c. 25A, § 17C (Statute). This draft regulation represents the
Department of Energy Resources (DOER) first promulgation of regulations to implement the
Statute.
The Clean Peak Energy Standard allows for qualified renewable energy generators, energy
storage resources, and demand response resources to earn Clean Peak Energy Certificates
(CPECs) for every megawatt hour of electricity they produce or reduce coincident with Seasonal
Peak Periods as established by the regulation. Seasonal Peak Periods represent the times of day
in which the Net Demand for electricity is typically the highest. The CPECs may then be
purchased by retail electricity suppliers, who are required to document annually that they have
procured a certain quantity of CPECs each year. These resources contribute to the
Commonwealth's clean energy goals by increasing renewable energy generation, reducing the
need for conventional fossil fuel-based power generation, and assisting the Commonwealth in
meeting its obligations under the Global Warming Solutions Act.
In 2020, retail electricity suppliers will be obligated to procure CPECs equal to an amount of
1.5% of their total electricity sales to end-use customers. This requirement increases by 1.5%
each following year. The requirement may increase by more than 1.5% if the market is
oversupplied. A requirement increase greater than 1.5% is accompanied by a decrease in
Alternative Compliance Payment rate, to cool the market and reduce the ratepayer impact of an
increased obligation. The DOER may also require the Electric Distribution Companies to enter
into long term contracts for CPECs through a competetive procurement process.
Municipal Lighting Plants are exempt from the obligation, and facilities interconnected with
Municipal Lighting Plants are ineligible to participate in the program.
The Clean Peak Energy Standard will send a market signal to clean energy generation to invest
in storage technologies to deliver energy to users and to reduce demand during peak periods,
thereby reducing the emissions and costs associated with these periods. The market signal will
include prioritization of Winter and Summer seasons, resources which enhance energy resilience,
performance coincident with actual monthly system peak demands, and resources which are new
and provide incremental additional energy on peak beyond what already exists or is contracted
for. The market signal will reduce the Commonwealth’s reliance on high emissions and high
cost power plants and enable the continued integration of renewable resources in support of
achieving the Global Warming Solutions Act.
A summary of changes to the regulation in response to comments is as follows:
 Increase the initial ACP value to $45 from the originally proposed $30
 Hold the initial ACP for 5 years instead of the originally proposed 10 years
 Increase the Summer/Winter Multiplier to 4x from the originally proposed 3x
 Increase the Actual Monthly Peak Hour Multiplier to 25x from 15x
 Adjust the EDC procurement target according to the market supply of the previous year
 Adjust the obligation (up) and ACP (down) in response to market oversupply
 HOUSE . . . . . . . . . . . . . . . No. 4581
Communication from the Division of Energy Resources of the Executive Office of Energy and
Environmental Affairs (under the provisions of section 12 of Chapter 25A of the General Laws)
submitting regulations to 225 CMR 21, Clean Peak Energy Portfolio Standard (CPS).
Telecommunications, Utilities and Energy.
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-First General Court
(2019-2020)
_______________
1 225 CMR 21.00: CLEAN PEAK ENERGY PORTFOLIO STANDARD (CPS)
2
3 Section
4
5 21.01: Authority, Purpose and Application
6 21.02: Definitions
7 21.03: Administration
8 21.04: Applicability
9 21.05: Eligibility Criteria for Clean Peak Resources
10 21.06: Qualification Process for Clean Peak Resources
11 21.07: Clean Peak Energy Standard
12 21.08: Compliance Procedures for Retail Electricity Suppliers
13 21.09: Annual Compliance Filings for Retail Electricity Suppliers
14 21.10: Reporting Requirements
15 21.11: Inspection
16 21.12: Non-compliance
17 21.13: Severability
18
19 21.01: Authority, Purpose and Application
20
21 225 CMR 21.00 is promulgated pursuant to M.G.L. c. 25A, § 17(c).
22
23 The purpose of 225 CMR 21.00 is to establish a Clean Peak Energy Portfolio Standard to
24 increase clean energy during the periods when Net Demand of electricity is the highest.
25 Clean Peak Resources contribute to the Commonwealth’s environmental protection goals
26 concerning air emissions including, but not limited to, those required by the Global
27 Warming Solutions Act, M.G.L. c. 21N, §§ 1-9, by displacing non-renewable generating
28 resources during Seasonal Peak Periods, while also having added benefits of reducing
29 peak demand and system losses and increasing grid reliability. Clean Peak Resources that
30 participate in the CPS program pursuant to 225 CMR 21.00 do so on a voluntary basis but
31 must comply with the terms and requirements of 225 CMR 21.00.
32
33 21.02: Definitions
34
35 Actual Monthly System Peak. The highest net demand for electricity in a calendar
36 month in ISO- NE Control Area.
37
38 Aggregation. A group of one or more Clean Peak Resources that receives a single
39 Statement of Qualification from the Department under the criteria and procedures set
40 forth in 225 CMR 21.05.
41
42 Alternative Compliance Credit. A credit obtained by a Retail Electricity Supplier upon
43 making an Alternative Compliance Payment. Such credit is used to document
44 compliance with 225 CMR
45 21.07. One unit of credit shall be equivalent to one Clean Peak Energy Certificate.
46
47 Alternative Compliance Payment (ACP). A payment of a certain dollar amount per Clean
48 Peak Certificate, resulting in the issuance of an Alternative Compliance Credit, which a
49 Retail
50 Electricity Supplier may submit to the Department in lieu of providing a Clean Peak
51 Energy Certificate as required under 225 CMR 21.07.
52
53 Authorized Agent. A person or entity that serves under an agreement entered into by each
54 of the Owners of a Clean Peak Resource for all dealings with the Department and with
55 the NEPOOL GIS.
56
57 Business Day. Monday through Friday, exclusive of state and federal legal holidays.
58
59 Clean Peak Energy Certificate (CPEC). A credit received for each megawatt hour of
60 energy or energy reserves at NEPOOL GIS that is adjusted by applicable Clean Peak
61 Energy Certificate Multipliers and provided during a Seasonal Peak Period that represents
62 a compliance mechanism.
63
64 Clean Peak Energy Certificate Multipliers. Values which, when applicable, are multiplied
65 against Clean Peak Resource’s performance, thereby increasing or decreasing the number
66 of Clean Peak Energy Certificates produced in a given time period.
67
68 Clean Peak Resource. A Qualified RPS Resource, a Qualified Energy Storage System or a
69 Demand Response Resource that generates, dispatches or discharges electricity to the
70 electric distribution system during Seasonal Peak Periods, or alternatively, reduces load
71 on said system during said periods.
72
73 Clean Peak Seasons. The four seasons of the year as established in as determined in 225
74 CMR 21.05.
75
76 Contracted Resource. A Clean Peak Resource that:
 77 1) Has received a Statement of Qualification as a Solar Tariff
78 Generation Unit pursuant to 225 CMR 20.00; or,
79 2) Has a contract with a Distribution Company that has been approved by
80 the Massachusetts Department of Public Utilities pursuant to St. 2008,
81 c. 169, §§ 83, 83A, or 83C.
82
83 Commercial Operation Date. The date that a Clean Peak Resource first produces or
84 provides electrical energy for sale. In the case of a Clean Peak Resource that is connected
85 to the End-use Customer’s side of the electric meter, the date on which the local
86 Distribution Company grants approval for the Clean Peak Resource to interconnect with
87 the grid. In the case of a Demand Response Resource, the date on which the resource first
88 changes electric usage.
89
90 Compliance Filing. A document filed annually by a Retail Electricity Supplier with the
91 Department documenting compliance with 225 CMR 21.07, consistent with the format
92 set forth in the Guidelines and submitted no later than the first day of July, or the first
93 Business Day thereafter, of the subsequent Compliance Year.
94
st
95 Compliance Year. A calendar year beginning January first (1 ) and ending December
st
96 thirty- first (31 ), for which a Retail Electricity Supplier must demonstrate that it has
97 met the requirements of 225 CMR 21.07 and 21.08.
98
99 Control Area. A geographic region in which a common generation control system is used
100 to maintain scheduled interchange of electrical energy within and without the region.
101
102 Demand Response Resource. A resource that has received a Statement of Qualification
103 from the Department, which changes electric usage by retail end-use customers in the
104 Commonwealth from their normal consumption patterns in response to:
105 (i) changes in the price of electricity over time, including, but not limited to, time-
106 of-use rates for residential and small commercial and industrial customers; or
107 (ii)incentive payments designed to induce lower electricity use at times of high
108 wholesale market prices or when system reliability is jeopardized.
109
110 Department. The Massachusetts Department of Energy Resources, established by
111 M.G.L. c. 25A.
112
113 Distribution Company. A company engaging in the distribution of electricity or owning,
114 operating or controlling distribution facilities as defined in M.G.L. c. 164, § 1; provided,
115 however, a Distribution Company shall not include a municipal lighting plant established
116 pursuant to the provisions of M.G.L c. 164.
117
118 Distribution System. The electric system, owned and operated by a Distribution Company
119 and/or a municipal lighting plant typically operated at voltages below 69 kilovolts, which
120 provides distribution service as defined in M.G.L. c. 164, § 1.
121
122 DPU. The Massachusetts Department of Public Utilities established by M.G.L. c. 25, § 1.
123
124 End-use Customer. A person or entity in Massachusetts that purchases electrical energy
125 from a Distribution Company.
126
127 Existing Resource. A Clean Peak Resource that has a Commercial Operation Date before
128 January 1, 2019.
129
130 Generation Attribute. Means a Generation Attribute, as defined in 225 CMR 14.02:
131 Definitions.
132
133 GIS Certificate. An electronic record produced by the NEPOOL GIS that identifies
134 Generation Attributes of each MWh accounted for in the NEPOOL GIS.
135
136 Guideline. A set of clarifications, interpretations, and procedures, including forms,
137 developed by the Department to assist in compliance with the requirements of 225 CMR
138 21.00. The Department may issue new or revised Guidelines. Each Guideline shall be
139 effective on its date of issuance or on such date as is specified therein, except as otherwise
140 provided in 225 CMR 21.00.
141
142 Hour of Actual Monthly System Peak. The hour in which the Actual Monthly System Peak
143 occurs.
144
145 Interconnection Service Agreement. The agreement for interconnection service entered
146 into between the interconnecting customer and a Distribution Company, as defined and
147 provided in each Distribution Company’s standards for interconnection of distributed
148 generation.
149
150 ISO-NE. ISO New England Inc., the independent system operator for New England, the
151 regional transmission organization for most of New England, which is authorized by the
152 Federal Energy Regulatory Commission to exercise for the New England Control Area
153 the functions requiredpursuant to the Federal Energy Regulatory Commission’s Order
154 No. 2000 and corresponding regulations.
155
156 ISO-NE Control Area. The Control Area for which the ISO-NE is responsible.
157
158 Kilowatt (kW). A unit of power equal to one thousand watts, as measured in alternating
159 current (AC).
160
161 Kilowatt-hour (kWh). A unit of electrical energy or work equivalent to one thousand
162 watts of power operating for one hour.
163
164 Market Supply. The percentage resulting from dividing the number of Clean Peak
165 Energy Certificates produced in a compliance year by the total market obligation of
166 Retail Electricity Suppliers for said compliance year.
167
168 Massachusetts Clean Energy Technology Center (MassCEC). The center established
169 by M.G.L. c. 23J, § 2.
170
171 Megawatt (MW). A unit of power equal to one million watts, as measured in alternating
172 current (AC).
173
174 Megawatt-hour (MWh). A unit of electrical energy or work equivalent to one million
175 watts of power operating for one hour.
176
177 NEPOOL GIS. The NEPOOL Generation Information System, which includes a
178 generation information database and certificate system, operated by the New England
179 Power Pool (NEPOOL), its designee or successor entity, that accounts for generation
180 attributes of electrical energy consumed within, imported into, or exported from the
181 ISO-NE Control Area.
182
183 Net Demand. The amount of electric power needed to supply electric load at a specific
184 time and place after all behind-the-meter energy generation and consumption has been
185 accounted.
186
187 On-Site Load. Any new or existing electric load located at the site of a Clean Peak
188 Resource including any parasitic load that may result from the installation of the Clean
189 Peak Resource, and in the case of Qualified RPS Resource or Qualified Energy Storage
190 System, that is wired to receive a portion of the electrical energy output from the Clean
191 Peak Resource before the balance of such output passes through the Clean Peak
192 Resource’s metered interconnection onto the electric grid.
193
194 Operator. Any person or entity that has charge or control of a Clean Peak Resource subject
195 to 225 CMR 21.00, including without limitation a duly authorized agent or lessee of the
196 Owner, or a duly authorized independent contractor.
197
198 Owner. Any person or entity who, alone or in conjunction with others, has legal
199 ownership, a leasehold interest, or effective control over the real property or property
200 interest upon which a Clean Peak Resource is located, or the airspace above said real
201 property, including without limitation a duly authorized agent of the Owner. For the
202 purposes of 225 CMR 21.02, Owner does not mean a person or entity holding legal
203 title or security interest solely for the purpose of providing financing.
204
205 Program Administrator. An entity designated by the Department to assist in the
206 imple