On February 14, 2020, the State of Maine Public Utilities Commission (the Commission), acting pursuant to the Act To Reform Maine’s Renewable Portfolio Standard, P.L. 2019, Chapter 477 (the Act), issued a Request for Proposal (the RFP) in order to procure an amount of energy or Renewable Energy Credits (RECs) from Class 1A Resources of at least 7%, but not more than 10%, of retail electricity sales in the State of Maine during calendar year 2018. … More
Category Archives: Renewable Energy Credits
Massachusetts Senate Committee on Global Warming and Climate Change Releases Far-Reaching Draft Legislation
Yesterday, February 12, 2018, the Massachusetts Senate Committee on Global Warming and Climate Change released a Proposed Draft of legislation staking out an ambitious and far-reaching set of policies across a wide range of sectors.
There is a lot in the proposal and we are still reviewing the details, including the differences among mandates, targets, goals and discretionary authority.
For now,… More
This afternoon, the Massachusetts Department of Energy Resources (DOER) released the much-anticipated results of the competitive procurement that will set the base compensation rates for the SMART program. The base compensation rates range from $0.17 in the NSTAR and Nantucket Electric territories to about $0.14 in WMECO. In Massachusetts Electric territory, the non-Nantucket territory served under the National Grid umbrella, the base compensation rate is about $0.16. A DOER summary table of the procurement is below. … More
Stakeholders have been following the development of “SMART” as a successor to the SREC program in Massachusetts for more than a year. (See our previous posts on the development process here, here, and here.) As it stands, SMART reflects a determined effort by the Department of Energy Resources (“DOER”) to craft a program that balances multiple interests and sets a sustainable path for solar development in Massachusetts. … More
In April, Secretary of Energy Rick Perry ordered the Department of Energy (DOE) to perform a 60-day review and produce a report regarding the reliability of the energy grid and potential concerns regarding early retirement of baseload generators. Perry’s request explicitly solicited information concerning “[t]he extent to which continued regulatory burdens, as well as mandates and tax and subsidy policies, are responsible for forcing the premature retirement of baseload power plants.” Perry has argued that government subsidies for intermittent generators such as solar and wind and onerous environmental regulations lead to premature retirements of coal and nuclear power plants,… More
Late last month, the 2nd Circuit Court of appeals rejected a challenge to Connecticut laws intended to encourage use of renewable energy. Earlier this month, Judge Manish Shah, of the Northern District of Illinois, issued a companion decision, rejecting challenges to the Illinois Future Energy Jobs Act, which grants “Zero Emission Credits” to certain facilities, “likely to be two nuclear power plants owned by Exelon in Illinois.”
(Caveat: This firm represents,… More
This week a draft of the long-awaited Massachusetts energy bill was reported out of the Joint Committee on Telecommunications, Utilities and Energy. The bill would require the Commonwealth’s distribution companies to competitively solicit long-term, fifteen- to twenty-year contracts for large-scale offshore wind and hydroelectric power. Notably absent from the bill are provisions addressing resources such as solar, onshore wind, nuclear, energy storage, and energy efficiency.
The bill seeks to jumpstart the development of offshore wind in federal lease areas by directing distribution companies to enter into contracts for 1,200 MW of offshore wind power before July 1,… More
Solar and wind tax credits aren’t going to ride off into the sunset just yet.
On December 18, 2015, Congress extended the Investment Tax Credit (ITC) and Production Tax Credit (PTC) for five years.
The Section 48 ITC for commercial installations had been set to decrease from 30% to 10% at the end of 2016 and the Section 25D individual tax credit would have disappeared altogether.… More
The U.S. Department of Energy (DOE) recently released a Draft Environmental Impact Statement (DEIS) for Northern Pass Transmission, LLC’s proposed 187-mile transmission line across the United States-Canada border in New Hampshire.
If approved, the line would have the ability to deliver 1200 MW of hydroelectric power from Quebec into southern New England—a potentially tantalizing amount of power for policymakers seeking to diversify the region’s generation portfolio and lower its GHG emissions.… More
The latest volley in the ongoing debate over the economic value of solar policies comes from Maine, where the state’s Public Utilities Commission (PUC) released an independent study finding that the net value of distributed solar is $0.337 per kWh when levelized over the course of twenty-five years. That is significantly more than the state currently offers as offset credit to customers engaged in photovoltaic net metering.… More
Massachusetts Legislature Passes Bill Increasing Net Metering Caps, Creating Net Metering Task Force and Creating REC For Renewable Thermal, Solar Thermal, Geothermal Ground- and Air-Source Heat Pumps and More
In the final hours of its legislative session, the Massachusetts legislature passed legislation to create a thermal energy REC program in the Commonwealth, lift the caps on the Commonwealth’s existing net metering regime and appoint a 17-member “Net Metering Task Force” to study the “future of net metering.”
Net Metering Caps
Rather than enacting an anticipated comprehensive overhaul of solar regulations and incentives in the Commonwealth (which would have completely lifted net metering caps and blended the state’s net metering compensation method with its solar SREC program),… More
Last year, Governor Patrick announced a goal of 1.6GW of solar electricity in Massachusetts by 2020; a goal that requires more than 1.2GW of new solar in the next six years. The Massachusetts Department of Energy Resources has now issued draft regulations for its SREC II program. The regulations are too complicated to summarize in a blog post,… More
IRS Opens the Door to Expanded Use of Residential Section 25D Credit in Offsite Solar and Other Renewables Projects
The IRS has released new guidance (Notice 2013-70) (the “Guidance”) in the form of a Q-and-A interpreting tax credits available to individual taxpayers under IRC Section 25D (Residential Energy Efficient Property) (the “25D Credit”) and IRC Section 25C (Nonbusiness Energy Property). Particularly noteworthy are the Questions and Answers interpreting the eligibility of off-site installations and net-metering arrangements on individual taxpayers’ eligibility to take the 25D Credit,… More