Midwest Renewable Energy Tracking System, Inc.

Overview

Amy Fredregill

Executive Director

Midwest Renewable Energy Tracking System, Inc.

May 18, 2015Minnesota Pollution Control Agency 111(d) Webinar

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Webinar Outline

• Amy Fredregill, M-RETS– Basics of REC Tracking Systems

– Background on M-RETS

– Engaging stakeholders on CPP needs

• Jennifer Martin, CRS, and Dave Farnsworth, RAP– Avoided emissions

– RECs and CPP compliance

– Mass and rate-based approaches

• Q & A

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In M-RETS, a “Whole Certificate” is one where none of the renewable attributes have been separately sold, given, or otherwise transferred to another party by a deliberate act of the Certificate owner.• Attributes are defined as any and all

credits, benefits, emission reductions, offsets, and allowances directly attributable to the generation

• Environmental attributes are the non-energy characteristics of a generator, including, for example, the direct emissions from the generator

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1 MWh Renewable Energy= 1 Whole Certificate

Basics of REC Tracking Systems

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• In last 20 years, 10 tracking systems were all created through state action (either individually or as consortium)

• Existing tool used in RE markets to ensure that RE is metered, tracked and accounted in robust, safe repository

• Designated to independently issue RECs for production of RE by MWh with unique id #’s

• Use data supplied directly by transmission control areas, thereby assuring the data are accurate

Regional Footprint

• M-RETS primarily operates in the MISO footprint

• In response to stakeholder request, recently approved tracking of generation in AR, LA, KY, MO, MS, and TX

• M-RETS is regional, spreads costs over many users, resulting in efficient use of ratepayer dollars

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Stakeholders Founded M-RETS

• Mission: M-RETS efficiently tracks and verifies renewable energy generation in collaboration with stakeholders, facilitating renewable energy development in the public interest

• Independent, quasi-governmental, non-profit

• Developed out of stakeholder process with regulators, RE advocates, generators & utilities similar to 111(d) stakeholder conversations

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5. Retirement of REC-State Obligation or

Marketing Claim

4. Determine Market for REC

3. Digital Certificate or

REC Issued

2. Registration with M-RETS1. Generation

Asset Owner’s Account

Traders*

LSEs and Other

Account Holders*

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*Deals occur bilaterally, through brokers and bulletin boards

Issuance and Retirement of RECs

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M-RETS Generation Fuel Sources

• Only tracking RE at this time• Registration is voluntary• Over 60 unique specifications of energy

tracked• Most common:

– Hydroelectric– Wind– Biomass– Biogas– Waste Heat Recovery– PV

– Data must be from control area settlements from a revenue quality meter

• Generator owners sign form allowing MISO to report their monthly production data to M-RETS

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Meter Info and Data Reporting

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Data Sources and ISO Relationships

Highlights of 111 (d) Efforts

• To answer stakeholder questions, examining potential roles M-RETS could play in helping states measure, verify and track reductions in carbon intensity.

• Areas of exploration include:• Tracking all power

generation• Carbon reporting• Tracking energy

efficiency

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Policy Driven and Position Neutral

• M-RETS does not determine eligibility for state, federal or voluntary programs

– A generating unit is considered “renewable” if the energy generated is considered renewable by jurisdiction

– Services are tailored to each state’s RPS compliance, all with their own definitions of eligible renewable energy

– M-RETS does not determine REC shelf life or geographic eligibility

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Data Fields Can Be Added to Track Policies

Account Holder ACME ACME ACME

Sub AccountStateX Renewable Energy

ComplianceStateX Renewable Energy

ComplianceStateX Renewable Energy

Compliance

Retirement Types RPS RPS RPS

M-RETS ID M465 M763 M529

Generating Facility Milam - MilamRolling Hills Wind Farm III -Rolling Hills Wind Farm III

Buffalo Ridge I - Buffalo Ridge I

Fuel Type Biomass Wind Wind

Certificate Vintage Apr-11 Jan-13 Apr-09

Certificate Serial Numbers465-IL-04-2011-14905-1 to

1531763-IA-01-2013-25475-15426

to 16167529-SD-04-2009-6309-1 to

1040

Quantity 1531 742 1040

IL Utility Yes Yes Yes

IL ARES Yes Yes Yes

IA No No No

MN No No Yes

MN CBED No No No

ND No No No

SD No No No

WI RPS No No No

Green-e Energy No Yes Yes

Ecologo Certified No No No

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Changes to Functionality

• Dynamic software leads to nimble registry - If policies are adopted or amended, work with stakeholders to determine if changes needed

• Work with Account Holders and regulators via Enhancement Committee to implement statutory or regulatory changes or to meet market needs

• Examples include:

– WI Displacement Facilities

– North Dakota Recycled Fuel

– Automation for IL ARES

– Import/transfer functionality released this June

– 16 types of biomass to accommodate exports to NC-RETS

– MNSES flag under development in 2015

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RECs include environmental attributes (except NC) but how are they defined, determined, calculated and valued?

-Carbon-Other avoided emissions-Other benefits

REC

Energy(Null Power)

RPS Markets

Voluntary Markets

Power Markets (ISOs)

111 (d) and Definition of Attributes

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Verification and Validation Role

• M-RETS is a tracking system in an EM&V role, verifying RE meter data and providing reports, not a policy decision-making body

• Once policy decisions made by authorities, M-RETS can put rules in software or have manual checks and processes to help stakeholders report on compliance. We do this through:– Operating Procedures– Board of Directors– Regulator Group– Subscriber Group – Other advisory groups

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Next Steps

• Get involved with our stakeholder conversation• Watch for contact from Kevin Porter with Exeter• CRS and RAP serving on consultant team re: best

practices and stakeholder input on 111(d)• Fact sheets• Options paper this fall• October stakeholder meeting and 111(d)

discussion

Speaker Introductions

• Jennifer Martin, Center for Resource Solutions

• David Farnsworth, Regulatory Assistance Project

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Amy Fredregill

Executive Director

Midwest Renewable Energy Tracking System

amy@mrets.org

651-789-3338

Thanks and Contact Information

Additional BackgroundInformation on FAQs

• State and provincial government renewable program administrators (regulators)

• Voluntary program administrators

• Renewable energy advocates

• Account Holders (fees paid for annual subscription and $0.005/REC to issue, $0.015/REC to retire)

– Electric providers (muni, co-op and IOU)

– Environmental Commodities/REC Brokers

– Independent Power Producers or other large generators

– Distributed generators and/or aggregators

– Qualified Reporting Entities (data reporting)

Primary Stakeholders

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2014 M-RETS Stats

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2014 Renewable Generator and Certification Profile

2014 REC Retirements

Generator Size or Type Variations

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• There are no restrictions on the size of generators eligible to participate in a REC tracking system – Fees for Generating Units:

• Micro-generator account ($50 annually, cut in half in 2014 and 2015)

• Small generator account ($125 annually, cut in half in 2014 and 2015)

• Project account ($500 annually)

• Third-party “aggregators” can handle REC tracking system registration and data inputs for multiple small renewables systems

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For maximum transparency for state regulators, M-RETS provides accounts where Regulators can:

• Review and manage project eligibilities• Verify compliance retirements• Review all RECs issued

Compliance Report

• Verify REC Retirement Detail

• Review Summary of Retirements by Account Holder

Certificate Look-up Report

• View & Sort All RECs Issued

• Track Current REC Ownership

Program Eligibility Report

• Review Project Registration

• Edit Project Eligibility

Generator Production Report

• View Generation Loaded for all projects

How is M-RETS Data Tracked and Reported for Regulators?

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How Are Generators Registered?

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1. REC Issuance • Unique Serial Number (helps prevent double counting)

How is M-RETS Data Tracked?

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Certificate Creation

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How is M-RETS Data Tracked?2. REC Issuance

• Eligibility and registration attributes tracked in database• Ex.: of type of changes made for states when RPS changed

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3. REC Transactions • RECs can be transferred to:

• Active Subaccounts• Other M-RETS Account Holders• Exported to tracking systems that

permit Imports (MIRECS, NC-RETS & NAR)

• Retirement Subaccounts

• The Serial Number and all attributes (including State Eligibilities) are tracked in the database from ‘Cradle to Grave’

REC TransfersActive

Subaccount

Retirement SubaccountExport

Other Account Holders

How is M-RETS Data Tracked?

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Trading/Settlements

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Public Reports Available at M-RETS.org