(2) Banked Compliance. A Retail Electricity Supplier may use Clean Peak Energy Certificates produced in one Compliance Year for compliance in either or both of the two subsequent Compliance Year(s), subject to the limitations in 225 CMR 21.08(2) and provided that the Retail Electricity Supplier is in compliance with 225 CMR 21.00 for all previous Compliance Years. In addition, the Retail Electricity Supplier shall demonstrate to the satisfaction of the Department that such Clean Peak Certificates:

1. (a) were in excess of the Clean Peak Energy Certificates needed for compliance in the Compliance Year in which they were generated, and that such excess Clean Peak Energy Certificates have not previously been used for compliance with 225 CMR 21.00;
2. (b) do not exceed 30% of the Clean Peak Energy Certificates needed by the Retail Electricity Supplier for compliance with the CPS Minimum Standard in the year they were generated, subject to 225 CMR 21.09(2)(d);
3. (c) were produced during the Compliance Year in which they are claimed as excess; and
4. (d) have not otherwise been, nor will be, sold, retired, claimed or represented as part of electrical energy output or sales, or used to satisfy obligations in jurisdictions other than Massachusetts.

(3) Alternative Compliance. A Retail Electricity Supplier may discharge its obligations under 225 CMR 21.07, in whole or in part, for any Compliance Year by making an Alternative Compliance Payment (ACP) to the MassCEC. Such funds shall be held in an account separate from other accounts of the MassCEC.

1. (a) CPS Procedures. A Retail Electricity Supplier shall receive Alternative Compliance Credits from the Department, subject to the following:

   1. 1. The quantity of Alternative Compliance Credits that can be applied to its obligations

   under 225 CMR 21.07( 1) shall be determined by dividing the total of ACPs paid for the Compliance Year by the ACP Rate for that Compliance Year. 2. The ACP Rate for the CPS Minimum Standard shall be $45 per required Alternative Compliance Credit for Compliance Year 2020. The ACP rate shall remain $45 through Compliance Year 2025. Starting Compliance Year 2026, the ACP Rate shall be $65 through Compliance Year 2032. Thereafter, the ACP Rate shall be $45 and will hold fixed at that price for the remainder of the program, subject to the provisions of 225 CMR 21.08(3)(a)3. 3. Beginning in 2024 and not less frequently than every four years thereafter, the Department shall conduct a review of the ACP Rate and, following stakeholder review and input, may modify the ACP rate. 4. The Retail Electricity Supplier shall include with its Annual Compliance Filing copies of any ACP receipt(s) for ACPs made to the MassCEC for the Compliance Year.

2. (b) Use of Funds. The Department shall oversee the use of ACP funds by the MassCEC, so as to further the commercial development of Clean Peak Resources or promote projects or activities that reduce greenhouse gas emissions or ratepayer costs.