COMMONWEALTH OF MASSACHUSETTS EXECUTIVE OFFICE OF ENERGY AND ENVIRONMENTAL AFFAIRS DEPARTMENT OF ENERGY RESOURCES 100 CAMBRIDGE ST., 9 th FLOOR BOSTON, MA 02114 Telephone: 617-626-7300 Maura T. Healey Governor Kimberley Driscoll Lt. Governor Rebecca L. Tepper Secretary Elizabeth Mahony Commissioner VIA EMAIL AND HAND DELIVERY January 4, 2023 TO: Clerk of the House of Representatives CC: Chairs of the Joint Committee on Telecommunications, Utilities, and Energy RE: Submission of Participation in the Green Communities Program for Municipalities Served by Municipal Light Plants – 225 CMR 25.00 Dear Clerk: Pursuant to M.G.L. Chapter 25A, Section 12 (Section 12), please find enclosed: 225 CMR 25.00 – Participation in the Green Communities Program for Municipalities Served by Municipal Light Plants Summary of the proposed regulations in layman's terms In the development of amendments to 225 CMR 25.00, the pertinent provisions of Chapter 30A, except section five, have been complied with. In addition to the requirements of Section 12, the Department of Energy Resources has made additional information available to the public regarding these proposed regulations. That information is accessible through the Department’s website: https://www.mass.gov/info-details/municipal-light-plant-communities Please direct questions and comments on these proposed regulations to: Johannes Buchanan Legislative Director 857-268-0011 Johannes.K.Buchanan@mass.gov Sincerely, [Digital Signature] Elizabeth Mahony Commissioner, Department of Energy Resources Enclosures Summary of Proposed 225 CMR 25.00 On September 30, 2022, the legislature passed An Act Relative to Municipal Light Plant Participation in Green Communities (Act), St. 2022, c. 230. The Act creates a new avenue for municipalities that receive electricity service from municipal light plants (MLPs) that serve multiple municipalities to join the Department of Energy Resources’ (Department) Green Communities Designation and Grant Program (Green Communities Program) implemented pursuant to G.L. c. 25A, § 10. These regulations set out the process for communities covered by the Act to join the Green Communities Program. These regulations also put into regulation existing Department guidelines about how other types of municipalities served by MLPs may qualify for the Green Communities Program. Pursuant to G.L. c. 25A, § 10(e), there is a separate application process for the Green Communities Program for municipalities that receive electricity service from MLPs. The manner in which one of these municipalities qualifies for the program depends on how its residents pay the “Renewable Energy Charge,” a $0.0005 per kWh surcharge on electric bills that funds the Massachusetts Renewable Energy Trust Fund, established under G.L. c. 23J, § 9. These regulations lay out the qualification pathways and required documentation for each type of municipality to qualify as a Green Community. 1 of 4 HOUSE...............No. 4239 Communication from the Department of Energy Resources of the Executive Office of Energy and Environmental Affairs (under the provisions of section 12 of Chapter 25A of the General Laws) submitting 225 CMR 25.00 – Participation in the Green Communities Program for Municipalities Served by Municipal Light Plants. Telecommunications, Utilities and Energy. The Commonwealth of Massachusetts In the One Hundred and Ninety-Third General Court (2023-2024) 1225 CMR: DEPARTMENT OF ENERGY RESOURCES 2 3225 CMR 25.00 Participation in the Green Communities Program for Municipalities 4Served by Municipal Light Plants 5 6Section 725.01 : P urpose 825.02 : D efinitions 925.03 : A dministration 1025.04 : A pplicability 1125.05: Municipalities Joining the Green Communities Program 12 1325.01 : Purpose 14The purpose of 225 CMR 25.00 is to establish the process for communities that receive electric 15distribution service from municipal light plants to become eligible to become designated as a 16Green Community and participate in the Department’s Green Communities Designation and 17Grant Program. 18 2 of 4 1925.02 : D efinitions 20“Department”, the Department of Energy Resources. 21“Distribution Company,” a company engaging in the distribution of electricity or owning, 22operating or controlling distribution facilities as defined in M.G.L. c. 164, § 1. 23“Distribution Service,” the delivery of electricity to customers as defined in M.G.L. c. 164, § 1. 24“Green Community,” a municipality designated as a Green Community pursuant to M.G.L. c. 2525A, § 1 0. 26“Green Communities Program,” the Green Communities Designation and Grant Program 27implemented pursuant to M.G.L. c. 25A, § 10. 28“Massachusetts Renewable Energy Trust Fund”, the fund established pursuant to M.G.L. c. 23J, 29§ 9. 30“Municipal Light Plant,” a municipal lighting plant established pursuant to the provisions of 31M.G.L. c. 164. 32“Service territory”, the geographic area in which a distribution company provides distribution 33service. 34“Trust Administrator,” the entity that administers the Massachusetts Renewable Energy Trust 35Fund. 36 3725.03 : A dministration 38225 CMR 25.00 shall be administered by the Department. 39 4025.04: A pplicability 41225 CMR 25.00 shall apply to all municipalities with at least one property that receives electric 42distribution service from a municipal light plant. 43 4425.05 Municipalities Joining the Green Communities Program 45 (1) Municipalities that receive electric distribution service from a municipal light plant with a 46 service territory limited to one municipality and where there are no investor-o wned 47 electric distribution company customers may join the Green Communities Program u nder 3 of 4 48 this subsection if the municipal light plant that provides electric distribution service to the 49 municipality has adopted the renewable energy charge pursuant to M.G.L. c. 25, § 20(b). 50 a. The Department will accept the following documentation to demonstrate that the 51 above requirement has been met: 52 i. A signed copy of an agreement between the trust administrator, t he 53 municipality, and the municipal light plant that provides electric 54 distribution service to the municipality defining the terms of the municipal 55 light plant’s contributions to the Massachusetts Renewable Energy Trust 56 Fund. 57 (2) Municipalities that receive electric distribution service from a municipal light plant with a 58 service territory limited to one municipality and where there is at least one investor- 59 owned electric distribution company customer may join the Green Communities Program 60 under this subsection by either of the following methods: 61 a. Providing proof that the investor-owned electric distribution company customer in 62 the municipality pays into the Massachusetts Renewable Energy Trust Fund. 63 i. The Department will accept the following documentation to demonstrate 64 that the above requirement has been met: 65 1. a letter from the investor-owned electric distribution c ompany 66 verifying that they provide electric distribution service to the 67 property, and 68 2. property card(s) or other information from the municipality 69 demonstrating that the customer’s property is located in the 70 municipality. 71 b. Providing proof that the municipal light plant has adopted the renewable energy 72 charge pursuant to M.G.L. c. 25, § 20(b). 73 i. The Department will accept the following documentation to d emonstrate 74 that the above requirement has been met: 75 1. a signed copy of an agreement between the trust administrator, t he 76 municipality, and the municipal light plant that provides electric 77 distribution service to the municipality defining the terms of the 78 municipal light plant’s contributions to the Massachusetts 79 Renewable Energy Trust Fund. 80 (3) Municipalities that receive electric distribution service from a municipal light plant with a 81 service territory that covers more than one municipality and where there are no investor- 82 owned electric distribution company customers may join the Green Communities 83 Program under this subsection by any of the following methods: 84 a. providing proof that the municipal light plant has adopted the renewable energy 85 charge pursuant to M.G.L. c. 25, § 20(b) or that the municipality has adopted t he 86 renewable energy charge pursuant to M.G.L. c. 25, § 20(c). 87 i. The Department will accept the following documentation to demonstrate 88 that the above requirement has been met: 89 1. a signed copy of an agreement between the trust administrator, t he 90 municipality, and or the municipal light plant that provides electric 4 of 4 91 distribution service to the municipality defining the terms of the 92 municipal light plant’s contributions to the Massachusetts 93 Renewable Energy Trust Fund. 94 (4) Municipalities that receive electric distribution service from a municipal light plant with a 95 service territory that covers more than one municipality and where there is at least o ne 96 investor-owned electric distribution company customer may join the Green Communities 97 Program under this subsection by any of the following methods: 98 a. Providing proof that the municipal light plant has adopted the renewable energy 99 charge pursuant to M.G.L. c. 25, § 20(b) or that the municipality has adopted t he 100 renewable energy charge pursuant to M.G.L. c. 25, § 20(c). 101 i. The Department will accept the following documentation to demonstrate 102 that the above requirement has been met: 103 1. a signed copy of an agreement between the trust administrator, t he 104 municipality, and the municipal light plant that provides electric 105 distribution service to the municipality defining the terms of the 106 municipal light plant’s contributions to the Massachusetts 107 Renewable Energy Trust Fund. 108 b. Providing proof that the investor-owned electric distribution company customer 109 pays into the Massachusetts Renewable Energy Trust Fund. 110 i. The following documentation is required to prove this requirement h as 111 been met: 112 1. a letter from the investor-owned electric distribution c ompany 113 verifying that they provide electric service to the property, a nd 114 2. property card(s) or other information from the municipality 115 demonstrating that the customer’s property is located in the 116 municipality. 117 118REGULATORY AUTHORITY 225 CMR 25.00: 119 M.G.L. c. 25A, § 10.