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Contact Information:

Massachusetts DEP
One Winter Street
Boston, MA 02108-4746

(617) 292-5618

Or view the Department's
Website

Relevant State
Agencies:

Massachusetts Department of Public Utilities

Massachusetts Energy
Facilities Siting Board

Northeast CHP Application Center

Major Utilities:

Unitil

NSTAR Electric

Western Massachusetts Electric Company

Select Another State

Specific Issues:

EMISSIONS REGULATIONS

GUIDE TO FEDERAL REGULATIONS

STATE ENVIRONMENTAL REGULATIONS

SITING REGULATIONS

EXIT FEES

STANDBY RATES

BUILDING, ZONING
AND FIRE CODES


AMMONIA ISSUES

REPORTING REQUIREMENTS

ECONOMIC INCENTIVES

MASSACHUSETTS

Air Emissions Regulations | Exit Fees | Siting Regulations | Regulatory Codes | Standby Rates

LATEST NEWS:

DEP Considering New CHP Regulations (5/2008)

The DEP is considering new Combined Heat and Power Regulations . Two public hearings to consider the regulations were held in late April and early May 2008. The proposed changes to the rules for stationary engines and combustion turbines for CHP projects would provide CHP applications with extra emission credits in recoginition of their higher efficiency.



DEP's New Turbine and Small Engine Regulations (8/23/05)

The DEP's new Turbine and Small Engine Regulations were finalized on September 23, 2005.

AIR EMISSIONS REGULATIONS:

Air Quality Status The whole state is in serious non-attainment for ozone
EPA's Nonattainment Areas
Major Source Threshold 50 tons of NOx or VOCs or 250 tons of any other criteria pollutant
Minor Source Permitting Exemption Smaller than 3 MMBtu/hr
Minor Source Treatment State BACT
Emergency Generating Limits Size and hour limits

DE MINIMIS EXEMPTIONS:

Prior to March 23, 2006 Internal Combustion Engines including Combustion Turbines or Reciprocating Engines with an input capacity less than 3MMBtu/hr or internal combustion engines regulated by the EPA as non-road engines are exempt from the permitting process. Emergency or standby engines with a rated power output equal to or greater than 37kW that begin operation on or after March 23, 2006 must meet applicable emission limits set by the EPA for non-road engines. Emergency turbines with a power output less than 1 MW must meet a NOx limit of 0.60 lbs/MW-hr.

MINOR SOURCE PERMITTING:

Units that cannot qualify for the above exemption must complete a BACT analysis for PM, NOx and VOCs. The cost threshold for NOx is approximately $11,000-13,000 per ton. Facilities with potential emissions of 50 tons per year of NOx or VOCs, 100 tons per year of another criteria pollutant, or 10 tons per year of a single HAP or 25 tons per year of all HAPs are required to obtain an operating permit. There is no public comment period and the entire permitting process takes about 120 days.

MAJOR NSR/PSD PERMITTING:

A potential to emit 250 tons per year of a criteria pollutant triggers PSD. 50 tons of NOx or VOCs per year triggers NSR.

TREATMENT OF EMERGENCY ENGINES:

Emergency units may operate no more than 300 hours during a 12-month period and only for maintenance or testing and during periods of electric power outage. Emergency units may also operate when a threat of power outage is likely, when voltage deficiencies of 3% above or 5% below standard voltage occur. No state notification is required for these units. Larger units must go through the normal permitting process.

SITING REQUIREMENTS FOR NON-UTILITY GENERATORS:

Approval is needed from the state siting board for any application greater than 100 MW.

The Massachusetts' Energy Facilities Siting Board is an independent state review board located administratively within the Massachusetts Department of Telecommunications and Energy ("DTE"). The Siting Board is charged, by state statute, with ensuring a "reliable energy supply for the Commonwealth with a minimum impact on the environment at the lowest possible cost." G.L. c. 164, § 69H. The nine-member Siting Board is made up of three commissioners of the DTE, the Secretary of Environmental Affairs, the Director of Economic Development, the Commissioner of the Division of Energy Resources, and three public members who are appointed to three-year terms by the Governor. The Siting Board decides whether prospective developers may construct major energy facilities -- electric generating plants, electric transmission lines, intrastate natural gas pipelines, facilities for the manufacture or storage of natural gas, and various oil facilities -- in Massachusetts. The scope of the Siting Board's review of a proposed facility varies, depending on the type of facility being reviewed. The Siting Board's review of electric generating plants focuses on environmental impacts and mitigation, while its review of other types of facilities considers the need for the proposed facility, the cost of the facility, and its impacts on the environment. Alternatives to a proposed facility, including one or more designated alternate routes for transmission line and gas pipeline projects, may also be considered.

Massachusett's Energy Facilities Siting Board Rules

EXIT FEES:

There are exit fees in Massachusetts for DG applications that are greater than 60 kW. Renewable energy technologies and fuel cells are exempt regardless of their power rating. The DTE shall determine on a case-by-case basis the date upon which a utility can no longer collect transition charges. (See below)

In some cases, on behalf of its other customers, a distribution company is allowed to charge exit fees to customers that develop on-site generation because of the impact that their leaving has on the distribution company's overall revenues, and in turn the regulated rates of its other customers. However, Massachusetts' restructuring law specifically provides that distribution companies cannot charge exit fees to renewable or distributed generation facilities if certain conditions are met. If a customer provides the distribution company and DTE with at least six months notice of its plans to install on-site cogeneration equipment, renewable energy technologies, or fuel cells, it will not be subject to an exit charge. For facilities that are eligible for net metering-for example, facilities with a design capacity of 60 kW or less-no such six-month notice is required.

In addition, if a customer provides the distribution company and DTE with at least six months notice of its plans to buy electricity from onsite renewable energy technologies, fuel cells, or cogeneration equipment with a combined heat and power system efficiency of at least 50 percent, or if the customer operates or buys from an on-site generation or cogeneration facility of 60 kW or less that is eligible for net metering, it will not be subject to an exit charge even though its actions will result in less electricity being purchased from the service provider. In both cases, certain additional conditions also need to be met regarding the total amount of generation leaving the system. The Qualifying facility (QF) or On-site generation facility (OSGF) cannot have been responsible for more than 10% of the service provider's annual gross revenues during the past year; and the combined previous electricity purchases of the QF or OSGF and all other customers who, during a three-year period leave the service provider's system, cannot total 10% or more of the service provider's annual gross revenues. If they total more than 10%, each such customer will pay an exit fee charge that reflects its pro rata share of the portion of the annual gross revenues that is over the 10% limit. The DTE publishes a report by July 1st indicating the amount of generation produced from QFs and OSGFs so that each utility can keep track of the growth in percent revenue each year. According to the Rate and Regulation Department of the MA DTE, there has been only one instance of an exit fee assessment. This occurred when MIT installed an onsite power system that significantly reduced the load of the local utility. The Massachusetts Department of Telecommunications and Energy has recognized the importance of distributed generation as a resource option in the restructured electric industry.

Rules Governing the Restructuring of the Electric Industry 220 CMR 11.00
(d) The Department shall determine whether an exit fee may be charged to a Retail Customer that reduces purchases of electricity through the operation of, or purchases from, on-site generation or cogeneration equipment in accordance with the provisions of M.G.L. c. 164, § 1G(g).

(g) Effective as of March 1, 1998, if the utility and the department have received at least a six months notice of the customer's plans to install on-site cogeneration equipment, renewable energy technologies, fuel cells, or to purchase electricity through cogeneration equipment, a customer that reduces purchases of electricity through the operation of, or purchases from, on-site generation or cogeneration equipment, shall not be subject to an exit charge if

(i) such customer provided less than or equal to 10 percent of the annual gross revenues collected by its previous service provider in the year prior to the customer leaving the system after the retail date established in this bill; provided, however, that in the event that two or more customers who, at any time within a 36-month time period, leave such system, after the retail access date established in this bill, and represent together the aggregate of greater than or equal to more than 10 per cent of the annual gross revenues collected by such previous service provider in the year prior to the initial exit from the system, all such customers shall be subject to an exit charge based upon that portion of the annual gross revenues which is over the 10 per cent limit; and provided, further, that such fee shall be prorated amongst such customers who have left or are leaving on the system based upon the proportion of annual gross revenues each customer represented within the total amount of gross revenues being subtracted from the service provider's system; or

(ii) the customer reduces purchases through the operation of, or purchases from, on site renewable energy technologies, fuel cells, or cogeneration equipment with a combined heat and power system efficiency of at least 50 per cent, based upon the higher heating value of the fuel used in the system; or

(iii) the customer reduces purchases through the operation of, or purchases from, an on site generation or cogeneration facility of 60 kilowatts or less which is eligible for net metering. Except as provided in existing contracts or tariffs, the department and the utility shall not require more than six months notice of the customer's plans to install said equipment. Any such exit charge shall be payable to the customer's distribution company for the benefit of other customers. Such exit charge may be equal to but no greater than the expected value of the access charge payments the customer would have paid out but for the operation of such equipment and shall be determined by the department based upon federal and state law, any applicable judicial determinations, and criteria promulgated by the department through rules and regulations. Notwithstanding clauses (i) to (iv), inclusive, if the total kilowatt hour usage in any service territory falls below usage levels following the installation of such on-site generation or cogeneration equipment, and the department determines that the aggregate reduction in future purchases of electricity and transition charge payments resulting from customers' installing such equipment will have a significant adverse impact on electric bill to be paid by other customers in said distribution company's territory during the remaining period of transition cost recovery, then the department may order that an exit charge shall be paid on such terms as determined by the department based upon criteria promulgated herein and through rules and regulations. The department shall issue a report on July 1, 1999 and every year thereafter, for the period of transition cost recovery, relative to degree of impact on the aggregate reduction of the electricity and impact on transition charges due to implementation or use of cogeneration systems, fuel cell and renewable energy technologies.
(Source: Regulations page of the DTE Website)

BUILDING, ZONING AND FIRE CODES:

Board of Building Regulations and Standards (BBRS):

The BBRS is authorized by Massachusetts State Law to promulgate the Massachusetts State Building Code. The BBRS also administers and enforces numerous construction related licensing programs.

Department of Fire Services (DFS):

The mission of the DFS is to promote and enhance firefighter safety through policy and training, to assist and support the fire service community in protecting the lives and property of the citizens of Massachusetts, and to provide a presence in the Executive Office of Public Safety in order to direct policy and legislation on all fire related matters.

Department of Public Safety (DPS):

The DPS regulates projects that include storage tanks for oil or other flammable fluids such as ammonia.

International Code Council State Adoption Information Page

Provides an easy to use US map to locate state and local adoption of the International Code Council's model codes.

US DOE's Office of Building Technology, State and Community Programs, Building Codes Database

The US DOE's database provides a comprehensive look at a state's building code implementation and enforcement process.

UTILITY STANDBY RATES:

Information on DG interconnection in Massachusetts can be found here. Each utility in the state must file an interconnection tariff with the Department of Public Utilities. Utility tariff's are based on uniform statewide interconnection standards, and must have charts showing the time frames for different steps in the interconnection process, along with potential fees.



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