Developments in Massachusetts REC Policy

1
Developments in MassachusettsREC Policy

• 11th Annual EMA Fall Conference
• Renewables From Development to the Markets
• T.J. Roskelley
• Anderson Kreiger LLP
• November 9, 2007

2
Massachusetts, Why Care?

• Policy The Northeast Clique
• States tend to borrow ideas from each other
• What happens in MA doesnt stay in MA
• The Price
• MA RECs Over 50/MWh
• Not limited to Massachusetts projects

3
The Massachusetts RPS

• Mandatory
• 3 requirement for retail suppliers in 2007
• Penalty - 57.12/MWh in 2007
• Only New (Post-1997) Generation
• Relatively narrow class of renewables
• No hydropower
• Result demand exceeds supply
• 368,000 MWh in 2005

YES
4
The Problem Biomass

• Biomass must be advanced technology and
  low-emission
• Terms undefined ? case-by-case determinations
• Uncertainty for proponents and financial backers
• Advisory rulings headache for agency
• July 2005 Announced plan to streamline process
  through regulatory change

5
Meet the New Regs

• Same as the Old Regs
• Major changes proposed few adopted
• New administration focused on energy active
  legislature
• New Wrinkles Good for Wood
• Advanced stoker combustion boilers may qualify
• Low-emission defined for wood-fired boilers
• But CD removed
• No more advisory rulings

6
Insights from the Process

• Advanced Technology
• High efficiency technologies
• New to the Northeast
• Technology developed over last ten years
• Low-emission
• Still case-by-case, multi-agency process
• Clarifications on blended fuels and vintage
  waivers

7
What to Expect in the Future

• Potential geographic limits
• Regional and local preferences
• Scrutiny of biomass feedstocks
• Development of more bright-lines
• Organic ? project approvals
• Regulatory
• Decision on future requirements by end of year
• Major overhaul?

8
Bottom Line

• Incentives in Massachusetts are still strong
• Massachusetts is trying to simplify the process,
  but not there yet
• Significant changes may be on the horizon

9
Contact Information

• T.J. Roskelley
• Anderson Kreiger LLP
• One Canal Park, Suite 200
• Cambridge, MA 02141
• 617.621.6534
• troskelley_at_andersonkreiger.com