PETITION OF:

SECTION 1. Section 3 of Chapter 25A of the General Laws is hereby amended by inserting after the definition of "energy management services", the following new definitions:-

"Net Revenue", all revenue received from the sale of renewable generation attributes, by an existing Massachusetts waste-to- energy facility minus: (a) all out of pocket costs and expenses that the facility incurs in selling its renewable generation attributes, including reasonable broker's fees and reasonable system and other administrative charges applicable to such revenue, and legal fees, court costs and the costs of administrative and other tribunals that the facility incurs to establish or defend its title to its renewable generation attributes as against any entity or authority, and; (b) any damages or refund of revenue, or both, from the sale of prior renewable generation attributes that the facility may be ordered to pay by a court or administrative agency because of a determination that a facility did not have title to such renewable generation attributes, or that a facility agreed to pay in settlement of a claim that it did not have title to such renewable generation attributes.

"NE-GIS Certificate," a document produced by the NE-GIS that identifies the relevant Generation Attributes of each MWh accounted for in the NE-GIS.

"NE-GIS," the New England Generation Information System, which includes a generation information database and certificate system, operated by the New

England Power Pool, its designee or successor entity, that accounts for Generation Attributes of electrical energy consumed within New England.

"Renewable Generation Attribute," the generation attribute of the electrical energy output of an existing waste-to-energy facility as designated by a NE-GIS certificate.

"Long-term contract," the waste disposal contract of at least four-year term between a Massachusetts community and a waste- to-energy facility.

"Competitive Supplier," an entity licensed by the Department of Telecommunications and Energy to sell electricity and related services to Retail Customers, with the following exceptions: (a) a Distribution Company providing Standard Offer Generation Service and Default Generation Service to its Distribution Customers; and (b) a municipal light department that is acting as a Distribution Company.

SECTION 2. Section 11F of Chapter 25A of the General Laws, is hereby amended by inserting after the second sentence of sub-section (a) the following:-

By March 1, 2007, every retail supplier shall annually provide to end-use customers in the commonwealth, renewable generation attributes from existing waste-to-energy facilities in the amount equal to 3.3 percent of kilowatt hour sales and shall provide that amount of existing waste-to-energy renewable generation attributes each year thereafter. Every retail supplier shall also provide a minimum percentage of kilowatt-hours sales to end-use customers in the commonwealth from new renewable energy generating sources, according to the following schedule: (i) an additional 1 per cent of sales by December 31, 2003, or one calendar year from the final day of the first month in which the average cost of any renewable technology is found to be within 10 per cent of the overall average spot-market price per kilowatt-hour for electricity in the commonwealth, whichever is sooner; (ii) an additional one-half of 1 per cent of sales each year thereafter until December 31, 2009; and (iii) an additional 1 per cent of sales every year thereafter until a date determined by the division of energy resources.

SECTION 3. Section 11F of Chapter 25A of the General Laws, is hereby further amended by inserting after sub-section (b) following new sub-sections:

(c) For the purposes of this section, existing waste-to-energy facilities, which are a component of conventional municipal solid waste plant technology in commercial use:

shall be considered to own the renewable generation attributes generated by the facility unless otherwise specifically transferred through a contract, and

shall share the net revenue from the sale of their renewable generation attributes sold in the Commonwealth to satisfy Section 11F of Chapter 25A, in the following manner:

Fifty percent of each waste-to-energy facility’s net revenue as defined in Section 3 of Chapter 25A of the General Laws shall be allocated to the towns under long term contract for waste disposal with said facility.

Each town under long term contract shall receive a pro-rata portion of the proceeds based upon the municipality’s annual minimum tonnage of solid waste and the total annual minimum tonnage of all communities under long term contract with the waste-to-energy facility.

Communities that serve as the host community for the waste-to-energy facility and communities that serve as the host community for the waste-to-energy facility's primary ash disposal will receive a pro-rata share based upon twice the annual minimum tonnage in their long term contract.

(d) The division of energy resources shall promulgate amendments to 225 CMR 14.00 – Renewable Energy Portfolio Standard, by March 1, 2007 to include kilowatt-hour sales from existing waste-to-energy facilities in the Renewable Energy Portfolio Standard and to further implement the provisions of this Act. The division shall determine the annual amount and value of the sale of generation attributes by each waste-to-energy facility sold to satisfy Section 11F of Chapter 25A and develop a report that will be distributed to each participating community.

(e) Competitive Suppliers or Default Service Providers that have contracts for retail electric sales that were executed as of 1/1/2005 are exempt from the requirement of providing renewable generation attributes from existing waste-to-energy facilities until the earlier of (a) expiration of each specific contract or (b) or three years after the original effective date of the contract.

Competitive Suppliers or Default Service Providers that have contracts for retail electric sales that were executed after 1/1/2005 must comply with all of the provisions of Section 11F of Chapter 25A.