by Robert Olson  and David J. Shulock --   Brown, Olson and Wilson, P.C.
(originally published by PMA OnLine Magazine: 2006/10/27)
 

On June 2, 2006, the Massachusetts Division of Energy Resources (“DOER”) issued proposed revisions to its renewable energy portfolio standard (“RPS”) regulations, which are currently codified at 225 CMR 14.00 et seq. At the same time, DOER issued a draft “Guideline on the Eligibility of Biomass Generation Units” (the “Guideline”).

DOER’s existing regulations categorically exclude stokerfired pile burn biomass units from the definition of “low-emission, advanced biomass power conversion technologies” and therefore from RPS eligibility. The proposed regulations would eliminate this categorical exclusion. Among other things, the proposed regulations define “low-emission, advanced biomass power conversion technologies” with reference to the criteria listed in the draft Guideline. The Guideline provides details on the methodology and specifications for determining whether wood-fired and other solid-fueled steam generation facilities meet the regulations’ “low emission” criteria, the requirements for monitoring, reporting, and enforcement of emissions standards, and the administrative and engineering requirements for determining whether a biomass facility uses “advanced biomass power conversion technology.”

Proposed “Low-Emission” Criteria
To satisfy the “low emission” criteria under the draft Guideline, Wood-fired and other solid-fueled steam generation facilities must possess valid air permits. In addition, these units may not exceed monthly average emission limits for nitrogen oxides and particulate matter. Facilities with a nameplate capacity of less than 1 MW may not exceed 0.30 lbs /MMBtu of nitrogen oxides. Facilities with a nameplate capacity of 1 MW to 10 MW may not exceed 0.10 lbs /MMBtu of nitrogen oxides. Facilities with a nameplate capacity of greater than 10 MW may not exceed 0.065 lbs /MMBtu of nitrogen oxides. Facilities of any size may not exceed 0.012 lbs/MMBtu of particulate matter. Monitoring technology requirements and the frequency of stack testing also differ by facility size; however, all facilities must measure emissions daily, average the measurements on a monthly basis, and report the results to DOER quarterly. The draft Guideline permits DOER to take appropriate action to ensure that an RPS-qualified facility that fails to meet the emissions limits does not receive renewable energy certificates from the NEPOOL-GIS. RPS qualification of the output of the facility would resume as of the first complete month after a subsequent stack test demonstrates RPS compliance.

The draft Guideline proposes that emissions limits for other types of biomass facilities be set individually for each unit by an interagency team consisting of DOER’s RPS staff and one or more members of the Massachusetts Department of Environmental Protection’s biomass review team.

DOER has reserved the right to make the emission limitations specified in the draft Guideline more stringent without going through a rules change process. The draft Guideline proposes that stricter limitations be announced though the issuance of revised guidelines that would take effect twenty four months following their issuance.

Proposed “Advanced Biomass Power Conversion Technology” Criteria
The draft guideline proposes the use of “primary eligibility criteria” and “secondary eligibility criteria” for determining whether any particular technology is “advanced.” As with emissions standards, the draft guideline provides guidance only for wood-fired and other solid fuel-fired steam boilers. The first primary eligibility criterion is the “efficiency by which fuel is converted to usable energy” expressed as a “target” net heat rate. Target net heat rates differ based upon the size of the facility and whether the facility utilizes stoker technology or fluidized bed technology. For example, a stoker with a capacity per turbine equal to or greater than 10 MW and less than 25 MW is assigned a target heat rate of 14,000 Btu/kWh while a fluidized bed facility of the same size is assigned a target heat rate of 15,000 Btu/kWh. The second primary eligibility criterion is whether the facility utilizes state-of-the-art design for converting biomass fuel to electrical energy. The draft guideline implies that state-of-the-art design will be considered only if a facility is unable to meet the target net heat rate for its size and type.

Under the draft Guideline, DOER would consider secondary eligibility criteria only if the two primary eligibility criteria, taken together, are not clearly sufficient to allow DOER to determine whether a proposed unit is “advanced.” Secondary eligibility criteria consists of using technology for fuel handling and conditioning that is not commercially practiced in the United States at the time of application and using technology not in common use in the Northeast whose expanded use will lead to technology improvements that will enable future units of similar types to qualify under the Primary Eligibility Criteria.

Advisory Opinions
The proposed rules eliminate DOER’s current practice of providing advisory opinions to projects under development.  Instead, DOER proposes to replace the use of advisory opinions with the Guideline and a pre-application review process.

Public Participation
Opportunity for public participation and comment is limited. DOER will hold a public hearing on June 28, 2006, and will accept initial and final written comments on the proposed rules and draft Guideline if those comments are filed by July 6, and July 18, 2006 respectively.