Massachusetts SREC-II Emergency Regulation Promulgated

Posted July 5th, 2016 by SRECTrade.

On April 8th, the Massachusetts Department of Energy Resources (DOER) filed an Emergency Regulation with the Secretary of the Commonwealth to extend the SREC-II program listed under 225 CMR 14.00. Following this announcement, a public hearing was held to welcome comments on the proposed changes to SREC-II. After reviewing all submitted written comments and oral testimony, the DOER made the following modifications to the Emergency Regulation and filed the final version with the Secretary of the Commonwealth on June 17th. As of July 1st, 2016, the final version of the regulation is officially promulgated and in effect.

Below is a summary of changes made in the final Emergency Regulation:

1. Extension beyond January 8, 2017.

The first change is an extension beyond January 8, 2017 for projects that can demonstrate 50% of their construction costs have been spent by that date. The extension is similar to a regulatory provision that was part of the transition between SREC-I and SREC-II. In response to comments requesting an extension, the DOER made changes to the regulation that will allow for all projects that can demonstrate 50% of construction costs have been expended by January 8, 2017, to receive a four month extension to their construction deadline through May 8, 2017. A Guideline clarifying the process by which projects will be required to document these expenditures will be issued by DOER later this year.

2. Reducing SREC Factors.

The second modification to SREC-II consists of reducing SREC Factors for any projects qualified under an extension to the program. In an effort to reduce the cost impact of any further expansion, the DOER made changes to the regulation such that all systems with a “nameplate capacity equal to or less than 25 kW and receives an authorization to interconnect after January 8, 2017 or that qualifies for an extension under 225 CMR 14.05(9)(s)4.a will receive a lower SREC Factor…”. The DOER will revise the SREC Factor Guideline to reduce SREC Factors for these projects on or before August 31, 2016.

3. Technical Edits and Clarifications.

The final change to SREC-II includes technical edits and clarifications. The DOER made several changes correcting minor technical errors and language inconsistencies in the regulation.

In the same announcement, the DOER reported that it will be conducting Solar Credit Clearinghouse Auctions for both the SREC-I and SREC-II programs this summer. The DOER will make a separate announcement with more details and details regarding the volume of certificates deposited into each auction account sometime this week.

To view the original email from the MA DOER, click here.

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