1. Creating A Greener Energy Future For the Commonwealth Renewable Energy in Massachusetts Dwayne Breger Division Director Renewable Energy Development The New Energy Landscape: An Overview for Economic Development Professionals Kittredge Center Holyoke Community College June 9, 2009

2. Creating A Greener Energy Future For the Commonwealth Renewable Energy Goals Achieve 15% of electrical energy through new renewable sources by 2020 – RPS Minimum Standard increases 1%/year from 2010 to 2020, to reach 15%. Achieve 20% of electrical energy through renewable and alternative energy by 2020 – Alternative Energy Portfolio Standard (APS) Minimum Standard adds an additional 5% “clean” energy to the RPS

3. Creating A Greener Energy Future For the Commonwealth 3 Topics Role of DOER, MRET, and CEC Renewable Energy Portfolio Standard (RPS) Status Policy and Programs – Solar – Wind – Biomass – Others

4. Creating A Greener Energy Future For the Commonwealth 4 DOER, MRET, and the CEC DOER – Energy Policy Development – Support Administration’s Energy and Climate Goals – Assure safe, reliable, efficient, and diverse energy resources MA Renewable Energy Trust – Collect and expend $25 million/year Renewable Energy Charge on electric ratepayers – Establish and implement programs to support RE project development in MA MA Clean Energy Center – Established in Green Jobs Act – Accelerate job growth and economic development in the state’s clean energy industry

5. Creating A Greener Energy Future For the Commonwealth 5 Renewable Energy Portfolio Standard (RPS) Growing Regional Demand RPS provides that a small but growing percentage of electrical energy supplied to MA customers come from qualified new RE sources. 4% in 2009, increases at 1%/year

6. Creating A Greener Energy Future For the Commonwealth 6 RPS Compliance Trend – By Technology

7. Creating A Greener Energy Future For the Commonwealth 7 2007 RPS Compliance – By Geography

8. Creating A Greener Energy Future For the Commonwealth 8 RPS Compliance Historical Trend

9. Creating A Greener Energy Future For the Commonwealth Solar PV Governor Patrick (2008) announced Solar PV Development Goal – 250 MW by 2017 – Led to the launch of the Commonwealth Solar program in January 2008 Commonwealth Solar – Currently based on Rebate Program implemented by MA Renewable Energy Trust 9

10. Creating A Greener Energy Future For the Commonwealth Commonwealth Solar – Progress (as of 5/31/09) Rebate Applications 846 applications received, totaling 10.6 MW 50 to 60 applications per month 760 applications awarded; totaling 9.5 MW Rebates Awarded $29 million awarded to date; 760 applications, totaling 9.5 MW 618 Residential (2,521 kW; $8.6 M) 124 Commercial/Industrial (5,913 kW; $16.3 M) 18 Public (1,112 kW; $4.0 M) Installations Completed 453 completed installations; 3,069 kW Economic Development Threefold increase in PV installer workforce in MA Since Jan 2008, PV installation companies grew from 51 to 103 10

11. Creating A Greener Energy Future For the Commonwealth Commonwealth Solar – Next Steps Utility Ownership (allowed under Green Communities Act) Transition to RPS Carve-Out (S-REC) program 11

12. Creating A Greener Energy Future For the Commonwealth Wind Energy Development Governor Patrick (January 2009) Announced Wind Energy Goal – 2000 MW by 2020 – Estimate 500 MW from on-shore; and 1500 MW from off-shore – Reduce greenhouse gas emissions, meet RPS requirements, and spur economic development Navigant Study (2008) for DOER identified 1,500 MW of potential onshore and 6,000+ MW of offshore potential Currently 11 installed wind projects in MA with approx. 7 MW of total capacity More than 300 wind turbines, representing generating capacity of 800 MW, at various stages of planning and permitting 12

13. Creating A Greener Energy Future For the Commonwealth Wind Energy – State Activities Siting Commission – Green Communities Act established an advisory energy facilities siting commission to review siting rules and barriers to renewable energy project development. Wind on State-Owned Lands – Green Jobs Act mandated a study of the potential for renewable power development on state-owned lands – The study concluded that wind energy has the greatest potential and identified 44 locations on state owned lands with 947 MW of potential – DOER and DCR will hold listening sessions to solicit public input on the Navigant report and the potential to develop wind projects on state owned lands. June 17, Massachusetts Maritime Academy, Bourne, 6pm June 24, Berkshire Community College, Pittsfield, 6pm 13

14. Creating A Greener Energy Future For the Commonwealth Wind Energy – State Activities Ocean Management Plan – Under the Oceans Act, the comprehensive ocean management plan now under development is expected to identify suitable locations in state waters for potential development of “appropriate-scale renewable energy facilities.” Wind Resources – Commonwealth Wind – MRET (Under Development) Financing and technical assistance for wind projects – MassGIS Wind Viewer (MassGIS) Online tool to identify viable locations – Model Wind By Law (DOER) Draft bylaw town’s can adopt for wind energy projects – UMass Wind Energy Center Public information about wind energy 14

15. Creating A Greener Energy Future For the Commonwealth Biomass – Power and Thermal Biomass Power Plants – RPS has stimulated project development in Pioneer Valley Biomass Heating – Biomass offers transformation from heating oil. – Industrial processes, community district energy, residential Biomass CHP – Hospitals, universities, etc. 15

16. Creating A Greener Energy Future For the Commonwealth MA Sustainable Forest Bioenergy Initiative (SFBI) Funding – U.S. Department of Energy – MA Renewable Energy Trust Summary – The MA Sustainable Forest Bioenergy Initiative has been the organizing force for the planning and strategic development of biomass energy in the Commonwealth. – The Initiative has established essential technical information upon which to form the basis of sound biomass policy and market development. – Key challenges remain to address public concerns regarding forest impacts, carbon balance, and sustainable management; and to design a coherent policy and funding program to stimulate investment in biomass supply infrastructure and project development. 16

17. Creating A Greener Energy Future For the Commonwealth SFBI – Resource Assessment  1.7 Million green tons of sustainable biomass potentially available in MA annually  10 Million green tons in the larger region Annual Forest Growth & Harvest Levels Forest Harvest Residues Sawmill Residues Secondary Forest Product Residues Urban Wood Residues – Land clearing – Tree Services – Pallets & Other Clean Shipping Wood – Processed Construction & Demolition Debris Other – Agricultural Residues – Paper Cubes 17

18. Creating A Greener Energy Future For the Commonwealth SFBI – Economic Impact An IMPLAN model was used to analyze the economic impact in MA of biomass development. Looked at build out of 165 MW of electric power stations, and a host of smaller thermal units. This build-out is roughly the magnitude that that can be supported by the 1.7 million green tons/year available within western MA borders. – Initial plant construction would create a total of $642 million new output and about 2000 jobs for 5 years. – On-going increase in regional economic output of $79 million/year and about 600 new jobs. – Most of this economic growth would be in western Massachusetts. 18

19. Creating A Greener Energy Future For the Commonwealth Biomass Thermal Project/Market Development Installed Projects – Mount Wachusett Community College – DCR Quabbin HQ/Visitors Center Leading-by-Example – State Facilities – Biomass Thermal/CHP Feasibility/Development Projects Springfield Tech Community College UMass Dartmouth and UMass Amherst MA State Police Academy DCR Visitor Centers Green Communities Program – Energy Audit Program – Town/Municipal Facilities (schools, town halls, etc.) Wood Pellets – 2-3 companies seeking production in MA Biomass Boiler Study – Safety and Emissions Standards 19

20. Creating A Greener Energy Future For the Commonwealth Wood Pellets

21. Creating A Greener Energy Future For the Commonwealth Other Technologies Combined Heat and Power (CHP) – Green Communities Act established Alternative Energy Portfolio Standard – Provides RPS-type Credit for CHP power and useful thermal load Geothermal Heat Pumps Hydroelectric Solar Thermal Advanced Biofuels Alternative Transportation Energy Efficiency Programs 21

22. Creating A Greener Energy Future For the Commonwealth Questions? Comments! Contact Info Dwayne Breger dwayne.breger@state.ma.us 617-626-7327 www.mass.gov/doer 22