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<title>June 2006: Proposed Revision to Massachusettes RPS Regulations Opens the
Door for Stoker-fired Pile Burn Biomass Units</title>
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<p align="left"><strong><small><font face="Arial">About The Author:</font></small></strong></p>
<p align="left"><font face="Arial" style="font-size: 9pt">Robert A. Olson is a partner in the law firm of
Brown, Olson & Gould, P.C. which maintains a nationwide practice in energy law,
public utility law and related commercial transactions.</font></p>
<p><small><font face="Arial"><font style="font-size: 9pt">He can be reached at:</font><br>
<br>
<b><font color="#0000FF">Brown, Olson & Gould, PC</font></b><br>
2 Delta Drive<br>
Suite 301<br>
Concord, NH 03301<br>
<a href="mailto:[email protected]">[email protected]</a><br>
(603) 225-9716<br>
<a href="mailto:[email protected]"></a></font></small></p>
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<p ALIGN="left"><b><u><br>
<br>
June 2006</u></b><font size="6"><b><br>
</b></font></p><font size="6"><b>
<p align="left">Proposed Revision to Massachusettes RPS Regulations Opens
the Door for Stoker-fired Pile Burn Biomass Units</p>
</b></font><center>
<p ALIGN="left"><font size="6"><b><br>
</b></font><strong>by Robert Olson and
</strong><b>David J. Shulock</b><strong> -- Brown, Olson and Wilson, P.C.<br>
</strong><font face="Arial" size="2">(<em>originally published by PMA OnLine Magazine:
2006</em>/10/27)<br>
</font></p>
<p ALIGN="LEFT">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 <i>et seq. </i>At the same time, DOER issued a draft “Guideline on
the Eligibility of Biomass Generation Units” (the “Guideline”).</p>
<p ALIGN="LEFT">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.”</p>
<p ALIGN="LEFT"><b>Proposed “Low-Emission” Criteria<br>
</b>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. </p>
<p ALIGN="LEFT">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.</p>
<p ALIGN="LEFT">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.</p>
<p ALIGN="LEFT"><b>Proposed “Advanced Biomass Power Conversion Technology”
Criteria<br>
</b>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.</p>
<p ALIGN="LEFT">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.</p>
<p ALIGN="LEFT"><b>Advisory Opinions<br>
</b>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.</p>
<p ALIGN="LEFT"><b>Public Participation<br>
</b>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.</p>
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<p align="left"><font face="Arial">
<small>Robert A. Olson is a partner in the law firm of Brown, Olson &
Gould P.C.
which maintains a nationwide practice in energy law, public utility law and related
commercial transactions. He can be reached at:</small></font><p align="center">
<font face="Arial"><small><font color="#0000FF"><b>Brown, Olson & Gould, PC</b></font><br>
2 Delta Drive, Suite 301<br>
Concord, NH 03301 <br>
<br>
<a href="mailto:[email protected]">[email protected]</a> | (603) 225-9716<a href="mailto:[email protected]"></a></small></font>
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