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Massachusetts Energy Efficiency First Fuel Requirement

Date Last Updated11/26/2012
Policy TypePortfolio Standard
Policy Administrator/Contact OfficeMassachusetts Energy Efficiency Advisory Council
Policy Initiation Date6/2/2008
Policy SummaryMassachusetts's Energy Efficiency First Fuel Requirement (established as part of the Green Communities Act) requires investor-owned utilities to prioritize cost-effective energy efficiency and demand reduction measures (which can include CHP) over supply resources, and to file 3-year plans outlining how they plant to meet the requirements.

The Green Communities Act established two savings targets. First, the approved 3-year plans established a statewide electricity savings target of 2.4% in the year 2012, which is expected to save the State 2,625,083 MWh. Second, a goal associated with the Energy Efficiency Resource Standard (EERS) rebate program (also known as the MassSave program) created a savings target of 25% of electric load by the year 2020 with demand side resources. These demand side resources include "energy efficiency, load management, demand response and generation that is located behind a customer's meter including a CHP system with an annual efficiency of 60% or greater with the goal of 80% annual efficiency for CHP systems by 2020." CHP systems can, if they meet all necessary criteria under both programs, qualify under either the Alternative Energy Portfolio Standard (APS) or the EERS.
CHP Eligibility RequirementsTo qualify under the EERS rebate program, CHP systems must have fuel input expressed on a higher heating value (HHV) basis, and must also pass a cost-effectiveness screening threshold established by the Massachusetts Department of Public Utilities (DPU) which results in a Benefit to Cost ratio >1.0.
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required/
Other Performance Requirements
CHP systems must have an efficiency of >60% with the goal of achieving 80% efficiency by 2020.
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