1 of 1 HOUSE DOCKET, NO. 3207 FILED ON: 1/20/2023 HOUSE . . . . . . . . . . . . . . . No. 3159 The Commonwealth of Massachusetts _________________ PRESENTED BY: Dylan A. Fernandes _________________ To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General Court assembled: The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: An Act relative to electric utility climate resilience and microgrids. _______________ PETITION OF: NAME:DISTRICT/ADDRESS :DATE ADDED:Dylan A. FernandesBarnstable, Dukes and Nantucket1/18/2023Patrick Joseph Kearney4th Plymouth2/16/2023Simon Cataldo14th Middlesex2/27/2023 1 of 5 HOUSE DOCKET, NO. 3207 FILED ON: 1/20/2023 HOUSE . . . . . . . . . . . . . . . No. 3159 By Representative Fernandes of Falmouth, a petition (accompanied by bill, House, No. 3159) of Dylan A. Fernandes, Patrick Joseph Kearney and Simon Cataldo relative to electric utility climate resilience and microgrids. Telecommunications, Utilities and Energy. The Commonwealth of Massachusetts _______________ In the One Hundred and Ninety-Third General Court (2023-2024) _______________ An Act relative to electric utility climate resilience and microgrids. Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows: 1 SECTION 1. Chapter 25 of the General Laws is hereby amended by inserting after 2Section 23 the following section: 3 Section 24. (a) The department of public utilities shall require electric distribution and 4transmission companies to prepare and file a climate vulnerability and resilience plan by 5December 31, 2024, and at least once every five years thereafter based on best available data. 6Climate vulnerability and resilience plans shall both identify existing vulnerabilities in the 7system that must be adapted to climate change-induced threats as well as plan proactively for 8future climate conditions to ensure the system can absorb and withstand impacts. Climate 9vulnerability and resilience plans shall prioritize, to the maximum extent practicable, adaptation 10measures that (i) promote the preservation, protection, restoration, and enhancement of the 11commonwealth’s natural infrastructure through nature-based solutions, as defined in section 1 of 12chapter 21N, and (ii) account for the existing natural, built and economic characteristics of the 2 of 5 13commonwealth’s most vulnerable areas and human populations. Adaptation measures that 14include the use of hard-engineered, hardscape, or gray infrastructure features shall be supported 15by evidence that the measures will not cause or exacerbate negative environmental impacts and 16that alternative green or green and gray hybrid solutions are not feasible. 17 (b)Climate vulnerability and resilience plans shall include, at a minimum, (i) an 18evaluation of the climate science and projected extreme weather and other climate-related risks 19for the service territory including changes in temperature extremes, humidity, precipitation, sea 20level rise, and extreme storms, (ii) an evaluation and risk assessment of potential impacts of 21climate change on existing operation, planning, and physical assets, including any design and 22construction standards or maintenance and operations practices that require changes to address 23current and future climate conditions as it relates to reliability and resilience of the grid, (iii) an 24evaluation of the vulnerability of existing infrastructure based on location and whether and when 25certain facilities may require retrofitting or relocation, (iv) identification and prioritization of 26adaptation options to increase asset and system-wide resilience over time, (v) an evaluation of 27costs and benefits against a range of possible future scenarios and adaptation options, and (vi) an 28implementation timeline, including benchmarks over time, for making changes in line with the 29findings of the study such as modifying design and construction standards, modifying operations 30and planning processes, and upgrades to existing infrastructure to ensure reliability and resilience 31of the grid. 32 (c)Climate vulnerability and resilience plans shall be prepared in collaboration with 33communities most impacted by the effects of climate change within the company’s service area, 34including environmental justice populations, as defined in section 30 of chapter 62, and shall 35include a community engagement plan that includes, at a minimum, (i) identification and 3 of 5 36description of any environmental justice populations in the service area, and any community 37based environmental justice organizations in the service area, (ii) outreach goals and targets, 38including at least two public meetings planned in collaboration with representatives from 39identified environmental justice populations and community based organizations, (iii) assessment 40of past engagement goals shortfalls or deficiencies, and updates and remedies to ensure shortfalls 41or deficiencies are not repeated. 42 (d)The department of public utilities shall require, in any ratemaking proceeding 43pursuant to sections seventy-six, ninety-three, and ninety-four of chapter one hundred and sixty- 44four, that electric companies identify in priority order the climate risks to its facilities that will 45arise over the projected useful life of such facilities or thirty years, whichever is greater, in 46accordance with climate vulnerability and resilience plans as required by subsection (a). The 47companies shall present evidence documenting their evaluation of climate risks and measures 48addressing such climate risks based on the best available climate science, data and other 49evidence in the record before the agency and shall identify how their operating and capital 50budgets address such climate risks. The companies shall also (i) consider and present evidence 51addressing likely climate change risks scenarios for its utility infrastructure in relation to the 52infrastructure’s criticality and risk tolerance, and (ii) disclose in all design engineering, 53architectural, or other drawings and analyses the climate assumptions used in evaluating and 54addressing climate risks. 55 (e)In adjudicating ratemaking proceedings pursuant to sections seventy-six, ninety- 56three, and ninety-four of chapter one hundred and sixty-four, the department of public utilities 57shall determine whether the applicant’s costs proposed or incurred for capital investment projects 58include consideration and minimization of climate risks for the useful life of the proposed 4 of 5 59investment or thirty years, whichever is greater. In considering climate risks, the department of 60public utilities shall consult the most recent climate vulnerability and resilience plan on file for 61the applicant and projected climate change risk based on best available data. The department of 62public utilities may take into consideration whether the applicant has made progress in 63implementing its climate vulnerability and resilience plan and whether the applicant’s costs 64proposed or incurred for capital investment projects are consistent with the plan. The department 65of public utilities shall conclude in writing that the applicant’s costs are appropriate based on the 66risk tolerance of the project or facility. Any electric company failing to file its climate 67vulnerability and resilience plan may be fined $500 for each day during which such failure 68continues. The fines levied by the department shall be returned to ratepayers through distribution 69rates. 70 (f) The department of public utilities shall promulgate such rules and regulations as 71are necessary to promptly and effectively enforce the provisions of section twenty-four.” 72 SECTION 2. Subsection (a) of section 85B of chapter 164 of the General Laws is hereby 73amended by striking out paragraphs (7) and (8) and inserting in place thereof the following: 74 (7) identification of additional supplies and equipment needed during an emergency 75and the means of obtaining additional supplies and equipment; 76 (8) designation of a call center in the commonwealth for service assistance for the 77duration of an emergency or until full service is restored, whichever occurs first. The call center 78shall be staffed continuously for the duration of the emergency and to ensure sufficient staffing 79levels to handle all customer calls; and 5 of 5 80 (9)a description of how the company is implementing its climate vulnerability and 81resilience plan in its response to emergency events and in its efforts to minimize the effects of 82extreme weather on the company’s infrastructure and operations, including disruptions to 83service. 84 SECTION 3. Chapter 164 of the General Laws is hereby amended with the addition of a 85new Section following Section 1K: 86 Section 1L. Distributed energy services; Microgrid operations 87 For the purposes of climate resiliency and mitigation, reliability, and encouragement of 88installation of distributed electricity generation and storage capacity, no right to exclusive service 89or franchise established within Section 1B or elsewhere in this chapter shall prevent a 90municipality, or agencies of the Commonwealth or private electric customers in coordination 91with a municipality, within an electric or gas company’s service territory, from: 92 (a)establishing an energy microgrid or district energy system; 93 (b)sharing electric generation or storage resources among facilities that are 94contiguous and owned by the same utility customer, irrespective of the number of electric meters 95installed at such facilities; or 96 (c)using public rights of way to conduct electrical conduit or other energy resources 97point to point where the municipality deems there is benefit from sharing energy resources.