Massachusetts Clean Energy Center Budget Overview Fiscal Year 2018

How MassCEC Operates

FY 2018 Budgeted Revenue Sources ($29.8M) Testing Revenue ($1.8M): Revenues at the WTTC for wind blade testing for both national and international equipment manufacturers. System Benefit Charge ($23.0M): The renewable charge is transferred to the Renewable Energy Trust Fund (RET). The charge currently stands at $.0005/kWh of use, or approximately $0.32 per month for the average household. Other Income ($0.6M): Interest on program investment loans, and sales from Renewable Energy Certificates (RECs). Intergovernmental Revenue ($0.6M): Funding transferred from DOER ($0.6M) to MassCEC to administer the Production Tracking System. ACE/RET Investment Income ($3.2M): Interest and dividends income, and unrealized/realized gains on ACE/RET Trust Investments. Terminal Lease Revenue ($0.6M): Lease revenues at the Marine Commerce Terminal in New Bedford. MassCEC drives job growth, innovation and deployment by: Fostering dialogue among government, industry, academia and consumers Facilitating synergies and new partnerships within and between industry participants Implementing market-focused initiatives that accelerate growth and complement policy and regulation

Awards by Category FY 2017 and FY 2018

MassCEC Budget Categories Residential Energy Choice: Programs and activities that deliver targeted incentives for residents designed to drive down the costs of renewable energy, including solar electricity, and clean heating and cooling technologies (such as energy efficient heat pumps, cleaner biomass heating, and solar hot water) with the goal of phasing out incentives as technologies become more cost effective. Commercial-Scale Renewable Energy: Programs and activities that deliver support through grants and other incentives for the development of commercial and industrial-scale renewable energy. Specific targets will include manufacturers, businesses, communities and other commercial scale customers with a goal of lowering energy costs through adoption of cost effective solar, hydropower, organics to energy, clean heating and cooling, and offshore energy projects. Affordable Access to Clean and Efficient Energy: Programs targeted at reducing the energy burden of low and moderate-income residents, that is designed to provide consumers with incentives for affordable renewable energy options. MassCEC drives job growth, innovation and deployment by: Fostering dialogue among government, industry, academia and consumers Facilitating synergies and new partnerships within and between industry participants Implementing market-focused initiatives that accelerate growth and complement policy and regulation

MassCEC Budget Categories Production Tracking & Verification: MassCEC oversees the registration and production verification of the generation of renewable energy in the Commonwealth through the Production Tracking System (PTS). Innovative Company Investment: Investments that provide strategic support and analysis for successful shared platforms for innovation, and small business startup companies. Investments are optimized to attract external capital, target persistent funding gaps, and provide a strong financial return on ratepayer investment. Workforce Development: Programs and initiatives that deliver workforce training programs that are tailored to meet the needs of clean energy employers across the state, while improving workforce skills, job readiness and vocational and educational opportunities for Massachusetts residents. Innovation Demonstration & Acceleration: Programs and activities that stimulate innovation and foster an environment for technological advancement to make Massachusetts a leading destination for clean energy and clean water technology companies. Targets persistent gaps in the commercialization process for pilot and demonstration scale projects. MassCEC drives job growth, innovation and deployment by: Fostering dialogue among government, industry, academia and consumers Facilitating synergies and new partnerships within and between industry participants Implementing market-focused initiatives that accelerate growth and complement policy and regulation

MassCEC Budget Categories Clean Energy Innovation Network: MassCEC support for many organizations and events that make Massachusetts a global leader in clean energy innovation including technology incubators and accelerators, centers for applied research that leverage federal and foreign funding, and regional entrepreneurship programs that make Massachusetts a global leader in clean energy innovation. Water Innovation: Programs help build and scale this promising Massachusetts sector with a focus on reducing energy use related to water and demonstrating innovative water technologies. Industry Support & Research: Partners with Massachusetts universities and companies to maintain leadership in energy R&D, and assist institutions to stay competitive for increasingly scarce federal funding.  Provides timely analysis to identify and address challenges and opportunities in the cleantech industry.  Supports industry stakeholder engagement, market barrier and opportunity research, and leads other special projects to strengthen market conditions for emerging clean energy sectors. State & Municipal Partnerships: Programs and activities that connect the most viable clean energy and water technologies with municipalities and other public entities to reduce energy costs and save taxpayer dollars, while in turn supporting small businesses that are seeking validate the commercial readiness of their technologies with an early customer. MassCEC drives job growth, innovation and deployment by: Fostering dialogue among government, industry, academia and consumers Facilitating synergies and new partnerships within and between industry participants Implementing market-focused initiatives that accelerate growth and complement policy and regulation

Awards by Category: FY 2017 & FY 2018 Dollars (in millions) MassCEC drives job growth, innovation and deployment by: Fostering dialogue among government, industry, academia and consumers Facilitating synergies and new partnerships within and between industry participants Implementing market-focused initiatives that accelerate growth and complement policy and regulation Categories

Awards by Recipient FY 2017 and FY 2018

FY 2017 Estimated Awards by Recipient ($49.4M) Communities & Public Partners $3.7M 7.6% Technical Assistance/ Auditing/ Other Costs $5M 13.3% Residential Consumers $12.6M 33.5% Workforce Development $2.7M 7.2% Business & Industry $11.2M 22.6% Residential Consumers $22.6M 45.8% ($10.1M to low and moderate income recipients) Technical Assistance/Auditing/ Other Costs $2.6M 5.2% Low and Moderate Income Recipients $2.4M of $12.6M 19% Universities $1.1M 3% Universities $2.7M 5.4% Communities & Public Partners $5.3M 14.2% Small Business & Industry $6.9M 18.5% MassCEC drives job growth, innovation and deployment by: Fostering dialogue among government, industry, academia and consumers Facilitating synergies and new partnerships within and between industry participants Implementing market-focused initiatives that accelerate growth and complement policy and regulation Incubators/ Accelerators/ Other Partners $3.9M 10.3% Workforce Development $4.4M 9% Incubators/Accelerators/ Other Partners $2.2M 4.4%

FY 2018 Budgeted Awards by Recipient ($58.8M) Business & Industry $22M 37.2% Technical Assistance/Auditing/ Other Costs $4.6M 7.9% Communities & Public Partners $5.2M 8.9% Residential Consumers $21.4M 36.4% ($11.8M to low and moderate income recipients) Universities $1.2M 2.1% MassCEC drives job growth, innovation and deployment by: Fostering dialogue among government, industry, academia and consumers Facilitating synergies and new partnerships within and between industry participants Implementing market-focused initiatives that accelerate growth and complement policy and regulation Workforce Development $3.2M 5.4% Incubators/ Accelerators/ Other Partners $1.2M 2.1%