Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H4503 Compare Versions

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1	1	HOUSE . . . . . . . . No. 4503
2	2	The Commonwealth of Massachusetts
3	3	________________________________________
4	4	HOUSE OF REPRESENTATIVES , April 4, 2024.
5	5	The committee on Telecommunications, Utilities and Energy, to whom
6	6	was referred the petition (accompanied by bill, Senate, No. 2132) of Anne
7	7	M. Gobi and Angelo J. Puppolo, Jr. for legislation to further clean the
8	8	Commonwealth's air, the petition (accompanied by bill, Senate, No. 2168)
9	9	of Marc R. Pacheco for legislation relative to energy storage procurement
10	10	for 2030 and 2035, the petition (accompanied by bill, House, No. 3144) of
11	11	Natalie M. Blais and others for legislation to promote solar energy
12	12	canopies on large parking lots, the petition (accompanied by bill, House,
13	13	No. 3159) of Dylan A. Fernandes, Patrick Joseph Kearney and Simon
14	14	Cataldo relative to electric utility climate resilience and microgrids, the
15	15	petition (accompanied by bill, House, No. 3161) of Dylan A. Fernandes
16	16	and others relative to offshore wind, the petition (accompanied by bill,
17	17	House, No. 3166) of Sean Garballey relative to increasing opportunities
18	18	for clean peak energy storage of qualified energy storage systems, the
19	19	petition (accompanied by bill, House, No. 3170) of Danielle W. Gregoire
20	20	and Michelle M. DuBois that the Department of Energy Resources ensure
21	21	equity, accessibility, and promote participation by renters and low-income
22	22	retail electric customers in the solar incentive program, the petition
23	23	(accompanied by bill, House, No. 3205) of Steven Owens relative to solar
24	24	energy development, the petition (accompanied by bill, House, No. 3214)
25	25	of Jeffrey N. Roy relative to fusion energy, the petition (accompanied by
26	26	bill, House, No. 3216) of Jeffrey N. Roy relative to clean energy
27	27	generation, the petition (accompanied by bill, House, No. 3220) of Jeffrey
28	28	N. Roy relative to advanced metering infrastructure, the petition
29	29	(accompanied by bill, House, No. 3683) of Mark J. Cusack relative to
30	30	solar energy storage permit applications and inspections, the petition
31	31	(accompanied by bill, House, No. 3992) of Jeffrey N. Roy for legislation
32	32	to expand customer access to a modern grid and the petition (accompanied
33	33	by House, No. 4222) of Jeffrey N. Roy relative to electric grid
34	34	enhancement technologies, reports recommending that the accompanying
35	35	bill (House, No. 4503) ought to pass. For the committee,
36	36	JEFFREY N. ROY. 1 of 45
37	37	FILED ON: 2/7/2024
38	38	HOUSE . . . . . . . . . . . . . . . No. 4503
39	39	The Commonwealth of Massachusetts
40	40	_______________
41	41	In the One Hundred and Ninety-Third General Court
42	42	(2023-2024)
43	43	_______________
44	44	An Act relative to clean energy generation.
45	45	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
46	46	of the same, as follows:
47	47	1 SECTION 1. Chapter 21A of the General Laws is hereby amended by inserting after
48	48	2section 28 the following section:-
49	49	3 Section 29. (a) The office, in coordination with the department of energy resources, shall
50	50	4establish a program to encourage the construction and operation of solar power generating
51	51	5canopies over large parking lots. The program shall be designed to contribute to the state's
52	52	6greenhouse gas emission reduction requirements and increase overall renewable energy
53	53	7generation, as well as provide shade and weather protection to both the vehicles under the
54	54	8canopies and people moving from their cars into the buildings served by the parking lot.
55	55	9 (b) The program shall include:
56	56	10 (i) incentives to encourage the construction and operation of solar power generating
57	57	11canopies and co-located energy storage facilities, which may include construction requirements,
58	58	12incentive payments, tax reductions or deferrals, expedited interconnection requirements, zoning
59	59	13or other regulatory preferences, which may include increasing the amount of the incentive 2 of 45
60	60	14through the state’s current or future solar incentive program for solar panels mounted on parking
61	61	15lot canopies; or other financial or regulatory incentives;
62	62	16 (ii) a definition of qualifying parking lots, which may be phased in over time;
63	63	17 (iii) minimum electric generation capacity requirements; and
64	64	18 (iv) such other criteria and conditions necessary for an efficient and effective solar power
65	65	19generating canopies over large commercial parking lots program that significantly increases the
66	66	20use of solar-generated power in the commonwealth.
67	67	21 (c) In designing the program, the department shall:
68	68	22 (i) consult with an advisory working group to make recommendations concerning the
69	69	23design and operation of the program. The members of the advisory working group shall be
70	70	24appointed by the secretary and shall include a representative of the division of energy resources,
71	71	25who shall chair the working group, and a representative of the commercial real estate industry; a
72	72	26representative of organized labor, a representative of the solar energy industry, a representative
73	73	27of an environmental group concerned with energy, a representative of the construction industry,
74	74	28a representative of an electric utility or organization representing electric utilities, a
75	75	29representative of local government, a person with expertise in energy siting, and a person with
76	76	30expertise in solar energy and energy efficiency; ;
77	77	31 (ii) review the design and operation of parking lot solar energy incentive programs
78	78	32proposed or in operation in other jurisdictions, including in the state of Washington, Hawaii,
79	79	33California, and France; and 3 of 45
80	80	34 (iii) hold not fewer than 3 public hearings in different regions of the commonwealth to
81	81	35receive public testimony and input on the program.
82	82	36 (d) The department shall promulgate regulations as necessary to implement the program.
83	83	37 (e) If statutory changes are necessary to implement the program, the department shall
84	84	38make specific recommendations to the general court for required changes in statutes.
85	85	39 SECTION 2. Chapter 23J of the General Laws is hereby amended by adding the
86	86	40following section:-
87	87	41 Section 16. The center shall issue guidance to businesses, nonprofit organizations, a
88	88	42municipality or group of municipalities with an approved municipal load aggregation plan
89	89	43pursuant to section 134 of chapter 164 or other government entities directly or through an
90	90	44aggregation pursuant to section 137 of said chapter 164, on how to enter into long-term contracts
91	91	45to purchase offshore wind energy. The guidance shall be posted on the center’s website not later
92	92	46than December 31, 2024.
93	93	47 SECTION 3. Chapter 23J of the General Laws is hereby amended by adding the
94	94	48following section:
95	95	49 “Section 17. Based on the Boston Area and South Coast and North Shore offshore wind
96	96	50ports and infrastructure assessments completed by the center in 2017 and 2022 respectively, the
97	97	51center shall create a strategic coastal report that outlines when and how the state should
98	98	52repurpose each port to support the state’s offshore wind industry. The report should include a
99	99	53strategic vision for a comprehensive port infrastructure offshore wind network in Massachusetts. 4 of 45
100	100	54 The center shall submit its report to the department of public utilities, the joint committee
101	101	55on telecommunications, utilities and energy, the senate and house committees on global warming
102	102	56and climate change and the clerks of the senate and house of representatives no later than July
103	103	5731, 2024.”
104	104	58 SECTION 4. Chapter 25 of the General Laws is hereby amended by inserting after
105	105	59Section 23 the following section:
106	106	60 Section 24. (a) The department of public utilities shall require electric distribution and
107	107	61transmission companies to prepare and file a climate vulnerability and resilience plan by
108	108	62December 31, 2024, and at least once every five years thereafter based on best available data.
109	109	63The department shall levy a penalty not to exceed $2000 per day for failure to file such a plan.
110	110	64Fines levied by the department shall be returned to ratepayers through distribution rates. Climate
111	111	65vulnerability and resilience plans shall include, at a minimum:
112	112	66 a. an evaluation of the climate science and projected sea level rise, extreme temperature,
113	113	67precipitation, humidity and storms, and other climate-related risks for the service territory ;
114	114	68 b. an evaluation and risk assessment of potential impacts of climate change on existing
115	115	69operation, planning, and physical assets
116	116	70 c. identification, prioritization, and cost-benefit analysis of adaptation options to increase
117	117	71asset and system-wide resilience over time,
118	118	72 d. community engagement plan with targeted engagement for environmental justice
119	119	73populations in the service territory; and 5 of 45
120	120	74 e. an implementation timeline for making changes in line with the findings of the study
121	121	75such as modifying design and construction standards, modifying operations and planning
122	122	76processes, and relocating or upgrading existing infrastructure to ensure reliability and resilience
123	123	77of the grid.
124	124	78 (b)In adjudicating ratemaking proceedings pursuant to sections76. 93, and 94 of
125	125	79chapter 164, the department of public utilities shall conclude in writing and take into
126	126	80consideration whether the applicant’s costs proposed or incurred for capital investment projects
127	127	81consider and minimize climate risks for the useful life of the proposed investment or thirty years,
128	128	82whichever is greater, and whether proposed cost and actions are consistent with the applicant’s
129	129	83climate vulnerability and resilience plan.
130	130	84 (c) The department of public utilities shall promulgate such rules and regulations as
131	131	85are necessary to promptly and effectively enforce the provisions of this section.”
132	132	86 SECTION 5. Section 3 of Chapter 25A of the General Laws is hereby amended by
133	133	87adding the following definitions:
134	134	88 “long-duration energy storage,” as defined in Section 60 of Chapter 179 of the Acts of
135	135	892022, an energy storage system, as defined in section 1 of chapter 164 of the General Laws, an
136	136	90energy storage system capable of dispatching electricity at its full rated capacity for greater than
137	137	91ten hours.
138	138	92 “Mid-duration energy storage system”, as defined in Section 60 of Chapter 179 of the
139	139	93Acts of 2022, an energy storage system, as defined in section 1 of chapter 164 of the General
140	140	94Laws, that is capable of dispatching energy at its full rated capacity for a period greater than 4
141	141	95hours and up to 10 hours. 6 of 45
142	142	96 “multi-day energy storage,” as defined in Section 60 of Chapter 179 of the Acts of 2022,
143	143	97an energy storage system, as defined in section 1 of chapter 164 of the General Laws, an energy
144	144	98storage system capable of dispatching electricity at its full rated capacity for greater than twenty-
145	145	99four hours.
146	146	100 SECTION 6. Section 3 of Chapter 25A of the General Laws, as appearing in the 2020
147	147	101Official Edition, is hereby amended by striking the definition of “Qualified RPS resource” and
148	148	102inserting in place thereof the following:-
149	149	103 “Qualified RPS resource”, a renewable energy generating source, as defined in
150	150	104subsection (c) or in subsection (d) of section 11F that has: (i) installed a qualified energy storage
151	151	105system at its facility; or (ii) commenced operation on or after January 1, 2019, provided however,
152	152	106that a qualified RPS resource that commenced operation prior to January 1, 2019 shall be treated
153	153	107as having commenced operation on or after January 1, 2019 if it is coupled with an on-site
154	154	108energy storage system capable of storing four hours of the qualified RPS resource’s installed
155	155	109capacity, or is coupled contractually with an off-site energy storage system capable of storing
156	156	110four hours of the qualified RPS resource’s installed capacity.
157	157	111 SECTION 6A. Section 11F of chapter 25A of the General Laws, as so appearing in the
158	158	1122020 Official Edition, is hereby amended by striking out the words “or (9) geothermal energy” in
159	159	113line 44 and inserting in place thereof the following:- (9) geothermal energy; or (10) fusion
160	160	114energy
161	161	115 SECTION 6B. Said section 11F of chapter 25A, as so appearing, is hereby amended by
162	162	116striking out the words “or (9) geothermal energy” in line 86 and inserting in place thereof the
163	163	117following:- (9) geothermal energy; or (10) fusion energy 7 of 45
164	164	118 SECTION 7. Section 11F1/2 of Chapter 25A as appearing in the 2022 Official version, is
165	165	119hereby amended, in line 11, by striking the words “naturally occurring”.
166	166	120 SECTION 8. Section 11F 1/2 of Chapter 25A of the general laws, as so appearing in the
167	167	1212022 official edition, is hereby amended by adding the following to the end of Section 11F 1/2
168	168	122(e):
169	169	123 The department shall provide that for facilities generating useful thermal energy by using
170	170	124eligible biomass technologies that also install an electrostatic precipitator or other emissions
171	171	125control device, an alternative energy credit shall be earned for 1,706,000 British thermal units of
172	172	126net useful thermal energy so as to improve air quality.
173	173	127 SECTION 9. Chapter 25A of the General Laws is hereby amended by adding the
174	174	128following section:-Section 21.
175	175	129 (a) The department of energy resources shall issue procurements totaling 4,500
176	176	130megawatts of energy storage systems, of which 3,000 megawatts shall be mid-duration energy
177	177	131storage; 750 megawatts shall be long-duration energy storage; and 750 megawatts shall be multi-
178	178	132day energy storage. The procurement schedule for mid-duration energy storage shall be as
179	179	133follows: approximately 1,000 megawatts no later than December 31, 2024; approximately 1,000
180	180	134megawatts no later than December 31, 2025; and approximately 1,000 megawatts no later than
181	181	135December 31, 2026.
182	182	136 (b) DOER shall seek industry and stakeholder input and comments on the structure and
183	183	137details of the initial procurement no later than June 30, 2024. 8 of 45
184	184	138 SECTION 10. Chapter 164 of the General Laws, as so appearing in the 2022 Official
185	185	139Edition, is hereby amended by inserting before the definition of “Aggregator” the following
186	186	140definition:
187	187	141 “Advanced Metering Infrastructure,” means a meter and network communications
188	188	142technology that measures, records, and transmits electricity usage by the end user at a minimum
189	189	143of hourly intervals and is capable of providing data to the end user and authorized third parties in
190	190	144real time or near real time.
191	191	145 SECTION 11. Chapter 40 of the General Laws, as appearing in the 2022 Official
192	192	146Edition,
193	193	147 is hereby amended by inserting at the end thereof the following sections:-
194	194	148 Section 70. Approval for Solar and Energy Storage Permit Applications
195	195	149 (a) The Permit Granting Authority shall allow for electronic submission of the permit
196	196	150application and associated documentation for the installation of a solar PV system, solar thermal
197	197	151system, building-integrated PV system, energy storage device, or a solar system combined with
198	198	152an energy storage device. All required permitting documentation and forms shall be published on
199	199	153the Permit Granting Authority’s publicly accessible internet website. The Permit Granting
200	200	154Authority shall authorize an electronic signature for the permit application and other
201	201	155documentation in lieu of a wet signature by an applicant. Electronic submission, including online
202	202	156payment of associated permitting fees, shall be offered through either an online portal available
203	203	157on the website of the Permit Granting Authority or via electronic mail to a dedicated account that
204	204	158shall be capable of receiving permit applications. 9 of 45
205	205	159 (b) Upon submission of required permit application documents, the application shall be
206	206	160deemed complete if, after five business days have elapsed, the Permit Granting Authority has not
207	207	161issued a written correction notice detailing all deficiencies in the application and identifying
208	208	162additional information explicitly necessary for the Permit Granting Authority to complete a
209	209	163review.
210	210	164 (c) An application shall be deemed approved and the applicant may begin installation if
211	211	165ten business days after the application was deemed complete has elapsed and the following are
212	212	166true:
213	213	167 (i) the Permit Granting Authority has not administratively approved the application.
214	214	168 (ii) the Permit Granting Authority has not denied the permit.
215	215	169 (d) A Permit Granting Authority may use an automated permitting platform that verifies
216	216	170code compliance and issues permits in real time to satisfy the requirements of subdivisions (a),
217	217	171(b), and (c). An applicant may begin installation after the issuance of a permit from such an
218	218	172automated permitting platform.
219	219	173 Section 71. Solar and Energy Storage Inspections
220	220	174 (a) Applicant shall notify the Permit Granting Authority upon completion of system
221	221	175installation. Permit Granting Authorities shall require no more than one inspection for a solar PV
222	222	176system, building-integrated PV system, solar thermal system, energy storage device, or the solar
223	223	177system combined with an energy storage device in order for the system or device to receive a
224	224	178certificate of completion. The Permit Granting Authority shall issue a certificate of completion 10 of 45
225	225	179no later than 10 business days following the receipt of notice from the applicant that the system,
226	226	180device, or combined system and device, is installed.
227	227	181 (b) An electric distribution company shall not require additional inspections by the
228	228	182electric distribution company or any other entity as a precondition to granting the customer
229	229	183permission to operate.
230	230	184 SECTION 12. Section 1 of chapter 164 of the General Laws, as so appearing in the 2020
231	231	185Official Edition, is hereby amended by inserting the following after the definition of “FERC”:-
232	232	186 “Fusion energy”, energy generated when nuclei from light atoms, such as hydrogen,
233	233	187combine to form a single heavier one, such as helium.
234	234	188 SECTION 13. Said section 1 of chapter 164, is hereby further amended by inserting after
235	235	189the word “hydroelectric” in line 286 the following words:- ; fusion energy
236	236	190 SECTION 14. Section 1F of chapter 164 of the General Laws, as appearing in the 2022
237	237	191Official Edition, is hereby amended by striking subsection (4) and replacing it with the following
238	238	192subsection:-
239	239	193 (4)(i) The department shall require that distribution companies provide discounted rates
240	240	194for low-income customers comparable to the low-income discount rate in effect prior to March 1,
241	241	1951998; and for eligible moderate-income customers. Said discounts shall be in addition to any
242	242	196reduction in rates that becomes effective pursuant to said subsection (b) of said section 1B on
243	243	197March 1, 1998, and to any subsequent rate reductions provided by a distribution company after
244	244	198said date pursuant to said subsection. The cost of such discounts shall be included in the rates
245	245	199charged to all other customers of a distribution company upon approval by the department. Each 11 of 45
246	246	200distribution company shall guarantee payment to the generation supplier for all power sold to
247	247	201low-income and eligible moderate-income customers at said discounted rates. Eligibility for the
248	248	202discount rates established herein shall be established upon verification of a low-income
249	249	203customer's receipt of any means tested public benefit, or verification of eligibility for the low-
250	250	204income home energy assistance program, or its successor program, for which eligibility does not
251	251	205exceed 200 per cent of the federal poverty level based on a household's gross income; and by
252	252	206criteria determined by the department for verification of an eligible moderate-income customer.
253	253	207Said public benefits may include, but are not limited to, assistance which provides cash, housing,
254	254	208food, or medical care, including, but not limited to, transitional assistance for needy families,
255	255	209supplemental security income, emergency assistance to elders, disabled, and children, food
256	256	210stamps, public housing, federally-subsidized or state-subsidized housing, the low-income home
257	257	211energy assistance program, veterans' benefits, and similar benefits. The department of energy
258	258	212resources shall make available to distribution companies the eligibility guidelines for said public
259	259	213benefit programs. Each distribution company shall conduct substantial outreach efforts to make
260	260	214said low-income or moderate-income discount available to eligible customers and shall report to
261	261	215said department of energy resources, at least annually, as to its outreach activities and results.
262	262	216Outreach may include establishing an automated program of matching customer accounts with
263	263	217(a) lists of recipients of said means tested public benefit programs and based on the results of
264	264	218said matching program, to presumptively offer a low-income discount rate to eligible customers
265	265	219so identified, and (b) criteria established by the department for verification of a moderate-income
266	266	220customer to presumptively offer a moderate-income discount rate to eligible customers so
267	267	221identified; provided, however, that the distribution company, within 60 days of said presumptive
268	268	222enrollment, informs any such low-income customer or eligible moderate-income customer of 12 of 45
269	269	223said presumptive enrollment and all rights and obligations of a customer under said program,
270	270	224including the right to withdraw from said program without penalty.
271	271	225 In a program year in which maximum eligibility for the low-income home energy
272	272	226assistance program, or its successor program, exceeds 200 per cent of the federal poverty level, a
273	273	227household that is income eligible for the low-income home energy assistance program shall be
274	274	228eligible for the low-income discount rates required by this subparagraph.
275	275	229 (ii) A residential customer eligible for low-income or moderate-income discount rates
276	276	230shall receive the service on demand. Each distribution company shall periodically notify all
277	277	231customers of the availability and method of obtaining low-income or moderate-income discount
278	278	232rates. An existing residential customer eligible for a low-income or moderate-income discount on
279	279	233the date of the start of retail access who orders service for the first time from a distribution
280	280	234company shall be offered basic service by that distribution company.
281	281	235 The department shall promulgate rules and regulations requiring utility companies
282	282	236organized pursuant to this chapter to produce information, in the form of a mailing, webpage, or
283	283	237other approved method of distribution, to their consumers, to inform them of available rebates,
284	284	238discounts, credits, and other cost-saving mechanisms that can help them lower their monthly
285	285	239utility bills, and send out such information semi-annually, unless otherwise provided by this
286	286	240chapter.
287	287	241 (iii) Repealed.
288	288	242 (iv) There shall be no charge to any residential customer for initiating or terminating low-
289	289	243income or moderate-income discount rates, default service, or standard offer service when said
290	290	244initiation or termination request is made after a regular meter reading has occurred and the 13 of 45
291	291	245customer is in receipt of the results of said reading. A distribution company may impose a
292	292	246reasonable charge, as set by the department through regulation, for initiating or terminating low-
293	293	247income or moderate-income discount rates, default service, or standard offer service when a
294	294	248customer does not make such an initiation or termination request upon the receipt of said results
295	295	249and prior to the receipt of the next regularly scheduled meter reading. For purposes of this
296	296	250subsection, there shall be a regular meter reading conducted of every residential account no less
297	297	251often than once every two months. Notwithstanding the foregoing, there shall be no charge when
298	298	252the initiation or termination is involuntary on the part of the customer.
299	299	253 SECTION 15. Chapter 164 of the General Laws is hereby amended with the addition of a
300	300	254new Section following Section 1K:
301	301	255 Section 1L. Distributed energy services; Microgrid operations
302	302	256 For the purposes of climate resiliency and mitigation, reliability, and encouragement of
303	303	257installation of distributed electricity generation and storage capacity, no right to exclusive service
304	304	258or franchise established within Section 1B or elsewhere in this chapter shall prevent a
305	305	259municipality, or agencies of the Commonwealth or private electric customers in coordination
306	306	260with a municipality, within an electric or gas company’s service territory, from:
307	307	261 (a)establishing an energy microgrid or district energy system;
308	308	262 (b)sharing electric generation or storage resources among facilities that are
309	309	263contiguous and owned by the same utility customer, irrespective of the number of electric meters
310	310	264installed at such facilities; or 14 of 45
311	311	265 (c)using public rights of way to conduct electrical conduit or other energy resources
312	312	266point to point where the municipality deems there is benefit from sharing energy resources.
313	313	267 Notwithstanding the foregoing, electrical microgrids shall not sell energy to retail
314	314	268customers, shall not distribute energy across property owned by others than the municipality, and
315	315	269shall limit any new electrical connection between utility-metered facilities to cases when such
316	316	270facilities have been disconnected from utility supply of electrical energy.
317	317	271 SECTION 16. Subsection (a) of section 85B of chapter 164 of the General Laws is
318	318	272hereby amended by striking out paragraphs (7) and (8) and inserting in place thereof the
319	319	273following:
320	320	274 (7) identification of additional supplies and equipment needed during an emergency
321	321	275and the means of obtaining additional supplies and equipment;
322	322	276 (8) designation of a call center in the commonwealth for service assistance for the
323	323	277duration of an emergency or until full service is restored, whichever occurs first. The call center
324	324	278shall be staffed continuously for the duration of the emergency and to ensure sufficient staffing
325	325	279levels to handle all customer calls; and
326	326	280 (9)a description of how the company is implementing its climate vulnerability and
327	327	281resilience plan in its response to emergency events and in its efforts to minimize the effects of
328	328	282extreme weather on the company’s infrastructure and operations, including disruptions to
329	329	283service.
330	330	284 SECTION 17. Chapter 164 of the General Laws is hereby amended by inserting after
331	331	285section 92C the following 3 sections: 15 of 45
332	332	286 Section 92D. Customer access to a modern distribution grid is a right and the public
333	333	287utility obligation to serve customers requires distribution companies to facilitate such access at
334	334	288reasonable costs and on reasonable terms. The capability and accessibility of the
335	335	289Commonwealth’s electrical system must be facilitated by investments in the electric grid that are
336	336	290aligned with the Commonwealth’s ambitious climate, renewable energy, and economic
337	337	291development goals. The implementation and periodic update of grid modernization efforts and
338	338	292formal interconnection standards to ensure fair, reasonable, and transparent customer grid access
339	339	293is essential to the achievement of the Commonwealth’s goals. As distribution companies pursue
340	340	294grid modernization efforts, related technical, operational, policy and regulatory opportunities and
341	341	295challenges must continuously be examined and addressed to ensure non-discriminatory customer
342	342	296access and to achieve the full potential of a modern grid. Establishing frameworks for continuous
343	343	297and collaborative efforts will assist utilities, regulators, distributed energy resource developers
344	344	298and other stakeholders to timely and effectively address these issues. The department shall
345	345	299establish standards to ensure reasonable and timely access to the distribution grid for all
346	346	300customers and to ensure that distribution companies undertake investments and process
347	347	301improvements to facilitate the transformation of the Commonwealth’s distribution grid to align
348	348	302with the Commonwealth’s ambitious climate, energy, equity and economic development goals.
349	349	303 Section 92E. (a) No customer shall be denied the right to interconnect a distributed
350	350	304generation facility, energy storage system or a combined distributed generation facility and
351	351	305energy storage system to the extent such interconnection does not compromise the safety and
352	352	306reliability of the distribution system. The department shall promulgate rules: (i) specifying a limit
353	353	307of the time that may elapse from the date of initial interconnection application to the receipt of an
354	354	308interconnection services agreement for various sizes and types of distributed generation facilities 16 of 45
355	355	309and energy storage systems; (ii) specifying a limit of the time that may elapse from the
356	356	310distribution company’s commencement of design of required interconnection-related upgrades
357	357	311and authorization to interconnect for various sizes and types of distributed generation facilities
358	358	312and energy storage systems; and (iii) requiring distribution companies to enable the
359	359	313interconnection of distributed generation facilities and energy storage systems in accordance
360	360	314with the schedule promulgated by the department.
361	361	315 (b) Rules adopted by the department under this section shall include: (i) provisions to
362	362	316track the performance of distribution companies under these rules; (ii) mechanisms to ensure
363	363	317compliance by distribution companies with the schedule and rules required by this section
364	364	318including revisions to existing timeline enforcement mechanisms; (iii) mechanisms to enable
365	365	319customers to seek department review and enforcement of the schedule and rules required by this
366	366	320section; and (iv) provisions for expeditiously resolving disputes between customers and
367	367	321distribution companies.
368	368	322 (c) The department shall establish a cost allocation framework to implement the electric-
369	369	323sector modernization plans established by section 92B commencing with the 2030-2034 electric-
370	370	324sector modernization plans. Such electric-sector modernization plans shall identify (i) an amount,
371	371	325in megawatts of alternating current, of incremental grid hosting capacity that will be available to
372	372	326interconnect distributed generation and energy storage systems upon implementation of the
373	373	327plans; and (ii) a proportional share of the benefits of the electric-sector modernization plans that
374	374	328is attributable to distributed generation and energy storage systems. The department shall
375	375	329establish a sub-regional uniform fee to be assessed to interconnecting customers of system sizes
376	376	330by applying the proportional share of benefits attributable to distributed generation and energy
377	377	331storage to the total number of megawatts of capacity enabled by the plans. This shall result in a 17 of 45
378	378	332dollar amount per kilowatt AC to be assessed to interconnecting customers based on project
379	379	333export capacity for their use of the grid capacity enabled by the plans. Such fee shall be uniform
380	380	334within a distribution company’s service territory sub-region regardless of the customer’s point of
381	381	335interconnection. The electrical boundaries of a distribution company’s service territory sub-
382	382	336regions shall be proposed by the distribution company and defined within the respective
383	383	337distribution company’s electric-sector modernization plan. Interconnecting customers, with
384	384	338proposed facilities above 60 kW may be assessed additional interconnection costs for upgrades
385	385	339identified in the interconnection studies.
386	386	340 For projects with an export capacity between 60 kW and 500 kW the following
387	387	341standardized interconnection cost allocation shall apply to customers for distributed generation
388	388	342facilities and energy storage systems: (i) no customer shall be charged more than a fixed $/kW
389	389	343AC of export capacity within a distribution company’s service territory sub-region to
390	390	344interconnect distributed generation facilities and energy storage systems; and (ii) any costs
391	391	345incurred by the distribution company for interconnecting a distributed generation facility or
392	392	346energy storage system that exceed the applicable fixed $/kW AC of export capacity shall be
393	393	347included in the distribution company’s revenue requirement and recovered through fully
394	394	348reconciling rates approved by the DPU. The DPU shall require each distribution company to
395	395	349propose a fixed sub-regional $/kW fee within each electric sector modernization plan for
396	396	350approval..
397	397	351 For projects with an export capacity that does not exceed 60kW, the following
398	398	352standardized interconnection cost allocation shall apply to customers for distributed generation
399	399	353facilities and energy storage systems: (i) no customer shall be charged more than a fixed $/kW
400	400	354AC of export capacity to interconnect distributed generation facilities and energy storage 18 of 45
401	401	355systems; and (ii) such fee shall be inclusive of interconnection costs for upgrades not included in
402	402	356the approved electric-sector modernization plans including, but not limited to, shared service
403	403	357distribution system upgrades; and (iii) any costs incurred by the distribution company for
404	404	358interconnecting a distributed generation facility or energy storage system that exceed the
405	405	359applicable fixed $/kW AC of export capacity shall be included in the distribution company’s
406	406	360revenue requirement and recovered through fully reconciling rates approved by the DPU. The
407	407	361DPU shall require each distribution company to propose a fixed sub-regional $/kW fee within
408	408	362each electric sector modernization plan for approval. The utilities may include costs of upgrades
409	409	363identified in the interconnection studies in their proposed fixed sub-regional $/kW fee.
410	410	364 (e) The department shall establish a permanent office of a distributed generation and
411	411	365clean energy ombudsperson to advocate for improvements to distribution company
412	412	366interconnection processes and practices and to receive and facilitate the resolution of disputes
413	413	367between distributed generation customers and the distribution companies. The department shall
414	414	368immediately appoint an ombudsperson to lead such office. The office of the ombudsperson shall
415	415	369be staffed with two or more individuals, one of whom shall be an expert in the interconnection
416	416	370tariff and department precedent and one of whom shall be an expert in technical solutions and
417	417	371standards for interconnecting distributed generation customers. The ombudsperson may
418	418	372recommend that the department impose civil penalties upon a finding that a distribution company
419	419	373has intentionally or negligently violated one or more requirements of the interconnection tariff,
420	420	374that the company has exhibited a pattern or history of violating such tariff, or that the company
421	421	375has failed to provide an acceptable level of customer service for a distributed generation
422	422	376customer or customers. In considering penalties under this section, the ombudsperson and the
423	423	377department shall consider the severity of the violation, the financial impact upon the distribution 19 of 45
424	424	378customer or customers, the distribution company’s history of violations and customer service,
425	425	379and other factors that may be relevant to determining the level of penalty that may be
426	426	380appropriate. The department may direct that all or a portion of a penalty take the form of
427	427	381restitution to be paid to an affected distribution customer. Penalties imposed by the department
428	428	382shall be effective upon the date they are imposed.
429	429	383 Section 92F. (a) There is hereby established within the department a permanent and open
430	430	384interconnection working group for the purpose of considering improvements to interconnection
431	431	385tariffs and interconnection technical standards and processes. The working group shall be
432	432	386facilitated by the office of the ombudsperson and shall meet no less frequently than 4 times per
433	433	387year.
434	434	388 (b) The working group shall study and make recommendations on topics including, but
435	435	389not limited to: (i) cost and best available technology for interconnecting and metering distributed
436	436	390generation, energy storage systems, and other distributed energy resources; (ii) process
437	437	391improvements to improve timeliness and efficiency of distributed generation and storage
438	438	392interconnection; (iii) processes for identifying and achieving distribution system upgrade cost
439	439	393avoidance through the use of advanced inverter functions and other non-wires solutions under
440	440	394the distribution company’s operational control, along with earning sharing mechanisms or
441	441	395incentives for capital investment deferrals; (iv) processes and customer service improvements for
442	442	396interconnecting customers adopting distributed generation and energy storage; (v) revisions to
443	443	397distribution company interconnection and metering standards that impact distributed energy
444	444	398resources and/or exporting and non-exporting energy storage systems; (vi) implementation of
445	445	399programs, guidelines, and schedules for grid-enabling technologies and platforms such as
446	446	400distributed energy resource management systems; and (vii) without limitation, such other 20 of 45
447	447	401technical, policy, and tariff issues related to and affecting interconnection performance and
448	448	402customer service for distributed generation and energy storage customers in the commonwealth,
449	449	403as determined by the working group. The chairs may jointly create subcommittees of the
450	450	404working group to focus on specific issues of importance, and may invite technical or policy
451	451	405experts to assist the working group in its work.
452	452	406 (c) The office of the ombudsperson shall develop and submit a report detailing consensus
453	453	407recommendations of the working group and, if applicable, additional recommendations for which
454	454	408consensus was not reached to the department and the clerks of the house of representatives and
455	455	409senate with recommendations for improvements to interconnection oversight and reporting,
456	456	410interconnection tariffs and such other topics designated to the working group in subsection (b),
457	457	411within 180 days of its first meeting, and every 180 days thereafter. Such report shall include
458	458	412consensus recommendations of the working group and, if applicable, additional
459	459	413recommendations for which consensus was not reached. The department shall within 180 days of
460	460	414the report filing issue an order addressing the recommendations of the working group. The order
461	461	415shall specify those recommendations adopted and explain in detail the reasons for rejecting any
462	462	416recommendations not adopted.
463	463	417 SECTION 18. Chapter 164 of the General Laws, as so appearing, is hereby amended by
464	464	418inserting after section 116B the following section:
465	465	419 SECTION 116C: Advanced Metering Infrastructure
466	466	420 (a) Distribution companies deploying advanced metering infrastructure in their
467	467	421territories shall establish a joint, centralized data repository to allow customers and third parties,
468	468	422including competitive suppliers, access to advanced metering data, including billing, interval 21 of 45
469	469	423usage, and load data, in near-real time for all customer classes cost-effective manner approved by
470	470	424the department.
471	471	425 (b) A non-utility competitive supplier of energy, pursuant to section 1D of chapter 164
472	472	426or other third party is entitled to access to detailed advanced metering infrastructure customer
473	473	427data, subject to appropriate customer approval and protections. A customer’s intent to enroll on a
474	474	428non-utility competitive supplier of energy or third party’s product is considered approval for the
475	475	429purposes of this section.
476	476	430 (c) Electric customers may opt out of inclusion in the implementation of advanced
477	477	431metering infrastructure with notice to the distribution company. Upon receiving such notice, the
478	478	432distribution company shall remove the customer from the implementation plan, notify the
479	479	433department of the customer’s decision to not be a part of such implementation plan in a manner
480	480	434determined by the department, and charge such a customer any reasonable and necessary fees for
481	481	435delivering non-advanced metering service.
482	482	436 (d) A non-utility competitive supplier of energy, pursuant to section 1D of chapter 164,
483	483	437may provide consolidated billing services to electric customers utilizing advanced metering
484	484	438infrastructure. For a competitive supplier of energy who implements supplier consolidated billing
485	485	439services for their customers, said competitive supplier of energy shall be subject to the same
486	486	440customer protection rules and requirements as distribution companies for suspension,
487	487	441disconnection, and reconnection of electric services.
488	488	442 (e) Distribution companies shall implement accelerated switching permitting a
489	489	443residential or small commercial electric customer to change electric suppliers within three
490	490	444business days. Customers moving within a distribution company’s territory shall be permitted to 22 of 45
491	491	445transfer their competitive supplier of energy directly to their new service location without being
492	492	446required to switch to an interim rate provided by the distribution company or other supplier.
493	493	447Customers establishing electric service shall be permitted to take service from their competitive
494	494	448energy supplier on day one of service. Customers shall not be required to take basic service from
495	495	449a distribution company prior to selecting and switching to a competitive supplier.
496	496	450 (f) Within 180 days of enactment of this legislation, all distribution companies
497	497	451operating within the state shall submit a plan for implementation of advanced metering data
498	498	452access protocols to the department for approval. The department shall approve or reject such a
499	499	453plan within 90-days of receipt. The department shall provide rules and protocols for ensuring the
500	500	454timely rehearing of a rejected plan and means to make such plans acceptable to the department.
501	501	455All electric companies are expected to have approved plans at the department within 1 year of
502	502	456enactment unless good cause shown. Approved plans should implement advanced metering data
503	503	457access to all customer classes and authorized third parties, including competitive suppliers,
504	504	458within 5 years of approval, unless the department determines that such a timeline would create
505	505	459undue costs to consumers, compromise reliability of electric service, or compromise safe
506	506	460operation of the electric grid. Distribution companies shall make regular updates to the
507	507	461department on the progress towards implementing advanced metering infrastructure in their
508	508	462territory, no less than quarterly.
509	509	463 (g) Distribution companies shall be entitled to recovery of prudent and necessary
510	510	464expenses for the implementation of advanced metering data repositories. The department may
511	511	465also implement penalties for failure of distribution companies to meet implementation goals. 23 of 45
512	512	466 (h) The department shall, in consultation with the distribution companies, conduct a
513	513	467process to investigate establishing and refining standards that expand the use of distributed grid
514	514	468edge software on AMI meters already approved by the department, which supports efficiency,
515	515	469load flexibility, and distribution system intelligence to improve system utilization, reduce costs,
516	516	470and/or improve reliability to customers. Standards shall include but not be limited to methods for
517	517	471increasing capacity for managing loads and resources in the grid by electric utilities and third
518	518	472parties. The utilities shall design at least one metric for improved monitoring and controlling the
519	519	473grid using high-resolution data in utility meters that will allow them to earn an incentive for
520	520	474positive performance.
521	521	475 SECTION 19. Section 141 of chapter 164 of the General Laws, as so appearing, is hereby
522	522	476amended by striking out the second sentence and inserting in place thereof the following
523	523	477sentence:- “Where the scale of on-site generation would have an impact on affordability for low-
524	524	478income or eligible moderate-income customers, a fully compensating adjustment shall be made
525	525	479to the low-income or moderate-income rate discount.”
526	526	480 SECTION 20. Section 164 of the General Laws, as appearing in the 2022 Official
527	527	481Edition, is hereby amended by inserting the following section.-
528	528	482 Section 149. (a) For the purposes of this section, the following words shall have the
529	529	483following meanings unless the context clearly requires otherwise:
530	530	484 “Advanced power flow control”, any hardware and software technologies used to push or
531	531	485pull electric power in a manner that balances overloaded lines and underutilized corridors within
532	532	486the distribution system. 24 of 45
533	533	487 “Advanced reconductors”, any hardware technology that can conduct electricity across
534	534	488distribution lines and demonstrate enhanced performance over traditional conductor products.
535	535	489 “Dynamic line rating”, any hardware and/or software technologies used to appropriately
536	536	490update the calculated thermal limits of existing distribution lines based on real-time and
537	537	491forecasted weather conditions.
538	538	492 “Grid enhancing technology”, any hardware or software technology that enables
539	539	493enhanced or more efficient performance from the electric distribution system, including, but not
540	540	494limited to dynamic line rating, advanced power flow control technology, topology optimization,
541	541	495and energy storage when used as a distribution resource.
542	542	496 “Topology optimization”, any hardware or software technology that identifies
543	543	497reconfigurations of the distribution grid and can enable the routing of power flows around
544	544	498congested or overloaded distribution elements.
545	545	499 (b) For base rate proceedings and other proceedings in which a distribution company
546	546	500proposes capital improvements or additions to the distribution system, the distribution company
547	547	501shall conduct a cost-effectiveness and timetable analysis of multiple strategies including but not
548	548	502limited to the deployment of grid enhancing technology, advanced reconductors, or energy
549	549	503storage used as a distribution resource. Where grid enhancing technology, advanced
550	550	504reconductors, or energy storage used as a distribution resource whether in combination with or
551	551	505instead of capital investments, offer a more cost-effective strategy to achieving distribution goals
552	552	506including, but not limited to distributed energy resource interconnection, the department may
553	553	507approve the deployment of grid enhancing technology, advanced reconductors, or energy storage
554	554	508used as a distribution resource as part of the overall solutions strategy. 25 of 45
555	555	509 (c) As part of a base rate filing or other filing in which it proposes capital improvements
556	556	510or additions to the distribution system, the distribution company may propose a performance
557	557	511incentive mechanism that provides a financial incentive for the cost-effective deployment of grid
558	558	512enhancing technologies, advanced reconductoring, or energy storage used as a distribution
559	559	513resource.
560	560	514 (d) The department may promulgate regulations to implement the provisions of the
561	561	515subsections (b) and (c).
562	562	516 (e) Every fifth year, each distribution company shall make a compliance filing with the
563	563	517department and provide a separate report to both ISO-NE and the joint committee on
564	564	518telecommunications, utilities, and energy on or before September 1st on the deployment of grid
565	565	519enhancing technology, advanced reconductors, or energy storage used as a distribution resource
566	566	520in a format determined by the department.
567	567	521 SECTION 21. Chapter 164 is hereby amended by adding the following section:
568	568	522 Section 149.
569	569	523 Section 1.
570	570	524 (a)The department of energy resources shall ensure equity, accessibility, and promote
571	571	525participation by renters and low-income retail electric customers in the solar incentive program
572	572	526established in section 11 of chapter 75 of the acts of 2016, and in any successor solar incentive
573	573	527program, by implementing a low-income customer verification process in which low income
574	574	528customers shall be persons whose income is at or below 80 percent of the area median income or
575	575	529200 percent of the federal poverty level or is a small business, who are, for the purposes of this 26 of 45
576	576	530section defined as business entities, including their affiliates that are (i) independently owned and
577	577	531operated; and (ii) are defined as a “small business” under applicable federal law, as established in
578	578	532the United States Code and promulgated from time to time by the United States Small Business
579	579	533Administration.
580	580	534 (b)A low-income multi-unit building that meets the definition under M.G.L. c. 40B, § 20
581	581	535or otherwise receives tax credits under the U.S. Department of Housing and Urban Development
582	582	536Low-Income Housing Tax Credit program shall qualify as one Low Income Customer.
583	583	537 (c)In the implementation of the program, the department shall:
584	584	538 (i)Require income data verification to determine eligibility for low-income customers.
585	585	539Proof of eligibility required for low-income customers shall include one or more than one of the
586	586	540following: proof of participation in a low income discount program including Medicaid;
587	587	541Supplemental Security Income; Temporary Assistance for Needy Families; Women, Infants, and
588	588	542Children Nutrition Program; Low Income Home Energy Assistance Program; Supplemental
589	589	543Nutrition Assistance Program or food stamps; Head Start; National School Lunch Program;
590	590	544Emergency Aid to the Elderly, Disabled, and Children; School Breakfast Program; Public
591	591	545Housing; Transitional Aide to Families with Dependent Children; Veterans’ Service Benefits
592	592	546established in Chapter 115 of the Massachusetts General Laws; Veterans Dependency and
593	593	547Indemnity Compensation Surviving Parent or Spouse; Veterans Non-Service Disability Pension;
594	594	548Fuel Assistance; or proof that the residential Low-income Customer lives in or is a business
595	595	549entity located in a Census block group where the median household income is at or below 200
596	596	550percent of the U.S. Federal Poverty Guidelines or 80 percent of the area median gross income
597	597	551published by the United States Census Bureau, whichever is greater; by living in or owning a 27 of 45
598	598	552low-income multi-unit building, including those that are master-metered; or proof of income of
599	599	553the account holder including pay stubs or form W-2; or any verification method authorized by
600	600	554the U.S. Department of Treasury for qualified low-income economic benefit projects Investment
601	601	555Tax Credit (ITC) adder under United States Public Law 117-169 Section 13103(2)(C);
602	602	556 (ii)prohibit credit checks as a means of establishing eligibility for residential customers to
603	603	557become a subscriber;
604	604	558 (iii) prohibit the use of early termination and exit fees for residential customers;
605	605	559 (iv)require distribution companies generating an alternative form of on-bill credits as
606	606	560approved by the department of public utilities from distributed solar generation facilities to
607	607	561accept and implement no less frequently than once per month any changes to the identities of
608	608	562designated recipients and amount of credits to be attributed to such recipients, as provided by the
609	609	563owner of the solar distributed generation facility; and
610	610	564 (v)exempt low-income multi-unit building owners from bill credit maximums and
611	611	565subscriber count minimums for the host project.
612	612	566 SECTION 22. Section 102 of Chapter 8 of the Acts of 2021 is hereby repealed.
613	613	567 SECTION 23. Section 83B of chapter 169 of the acts of 2008, as most recently amended
614	614	568by section 60 of chapter 179 of the acts of 2022, is hereby further amended by striking out, in
615	615	569line 1, the words “83C and 83D” and inserting in place thereof the following words:- 83C, 83D,
616	616	570and 83E 28 of 45
617	617	571 SECTION 24. Section 83B of Chapter 169, as so appearing, is hereby further amended
618	618	572by striking out the definition of “clean energy generation” and inserting in place thereof the
619	619	573following definition:-
620	620	574 “Clean energy generation”, (i) firm service hydroelectric generation from hydroelectric
621	621	575generation alone; (ii) new Class I RPS eligible resources that are firmed up with energy storage
622	622	576or firm service hydroelectric generation; (iii) new Class I renewable portfolio standard eligible
623	623	577resources or (iv) nuclear power generation that is located in the ISO-NE control area and
624	624	578commenced commercial operation before January 1, 2011.
625	625	579 SECTION 25.
626	626	580 Section 83B of chapter 169, as so appearing, is hereby further amended by striking out
627	627	581the definition of “long-term contract” and inserting in place thereof the following definition:-
628	628	582 “Long-term contract”, a contract for a period of 15 to 30 years for offshore wind energy
629	629	583generation pursuant to section 83C or for clean energy generation pursuant to section 83D or
630	630	58483E; provided, however, that a contract for offshore wind energy generation pursuant to said
631	631	585section 83C may include terms and conditions for renewable energy credits associated with the
632	632	586offshore wind energy generation that exceed the term of generation under the contract.
633	633	587 SECTION 26. Section 83C of chapter 169 of the acts of 2008, as most recently amended
634	634	588by section 61 of chapter 179 of the acts of 2022, is hereby amended in the last sentence of
635	635	589subparagraph (b) thereof by inserting after the word “commitments” the following:
636	636	590 “, plans to minimize total carbon emissions generated by vessels during both the
637	637	591construction phase and the operation and maintenance phase of the project,” 29 of 45
638	638	592 SECTION 27. Said chapter 169, as amended by chapter 188 of the acts of 2016, is hereby
639	639	593further amended by inserting after section 83D the following section:-
640	640	594 Section 83E. (a) In order to provide a cost-effective mechanism for procuring beneficial,
641	641	595reliable clean energy generation resources on a long-term basis, taking into account the factors
642	642	596outlined in this section, , not later than August 31, 2025, every distribution company shall, in
643	643	597coordination with the department of energy resources, jointly and competitively solicit proposals
644	644	598for clean energy generation and, provided that reasonable proposals have been received, shall
645	645	599enter into cost-effective long-term contracts for clean energy generation for an annual amount of
646	646	600electricity up to approximately 9,450,000 megawatt-hours additional to the amount of clean
647	647	601energy generation purchased from the seller in 2022 via the spot market or other contracts;
648	648	602provided
649	649	603 further, that the department may require additional solicitations and procurements if it
650	650	604determines they are necessary to meet emissions reductions requirements of section 4 of Chapter
651	651	60521N. Long-term contracts executed pursuant to this section shall be subject to the approval of
652	652	606the department of public utilities and shall be apportioned among the distribution companies
653	653	607under this section.
654	654	608 (b) The timetable and method for solicitation of long-term contracts shall be proposed by
655	655	609the department of energy resources in coordination with the distribution companies using a
656	656	610competitive bidding process and shall be subject to review and approval by the department of
657	657	611public utilities. The department of energy resources shall consult with the distribution companies
658	658	612and the attorney general’s office regarding the choice of solicitation methods. A solicitation may
659	659	613be coordinated and issued jointly with other New England states or entities designated by those 30 of 45
660	660	614states. The distribution companies, in coordination with the department of energy resources,
661	661	615may conduct 1 or more competitive solicitations through a staggered procurement schedule
662	662	616developed by the department of energy resources; provided, that the schedule shall ensure that
663	663	617the distribution companies enter into cost-effective long-term contracts for the delivery of clean
664	664	618energy generation up to approximately 9,450,000 megawatt-hours by December 31, 2030,
665	665	619additional to the amount of clean energy generation purchased from the seller in 2022 via the
666	666	620spot market or other contracts. Proposals received pursuant to a solicitation under this section
667	667	621shall be subject to review by the department of energy resources and the executive office of
668	668	622housing and economic development in consultation with the independent evaluator and the
669	669	623electric distribution companies shall offer technical advice. If the department of energy
670	670	624resources, in consultation with the independent evaluator, determines that reasonable proposals
671	671	625were not received pursuant to a solicitation, the department may terminate the solicitation, and
672	672	626may require additional solicitations to fulfill the requirements of this section.
673	673	627 (c) In developing proposed long-term contracts, the distribution companies shall
674	674	628consider long-term contracts for clean energy certificates, for energy and for a combination of
675	675	629both clean energy certificates and energy. A distribution company may decline to pursue a
676	676	630contract if the contract’s terms and conditions would require the contract obligation to place an
677	677	631unreasonable burden on the distribution company’s balance sheet after consultation with the
678	678	632department of energy resources; provided, however, that the distribution company shall take all
679	679	633reasonable actions to structure the contracts, pricing or administration of the products purchased
680	680	634under this section to prevent or mitigate an impact on the balance sheet or income statement of
681	681	635the distribution company or its parent company, subject to the approval of the department of
682	682	636public utilities; and provided further, that mitigation shall not increase costs to ratepayers. If a 31 of 45
683	683	637distribution company deems all contracts to be unreasonable, the distribution company shall
684	684	638consult with the department of energy resources and, within 20 days of the date of its decision,
685	685	639submit a filing to the department of public utilities. The filing shall include, in the form and
686	686	640detail prescribed by the department of public utilities, documentation supporting the distribution
687	687	641company’s decision to decline the contract. Following a distribution company’s filing, and
688	688	642within 4 months of the date of filing, the department of public utilities shall approve or reject the
689	689	643distribution company’s decision and may order the distribution company to reconsider any
690	690	644contract. The department of public utilities shall take into consideration the department of energy
691	691	645resources’ recommendations on the distribution company’s decision. The department of energy
692	692	646resources may require additional solicitations to fulfill the requirements of this section.
693	693	647 (d) The department of public utilities shall promulgate regulations consistent with this
694	694	648section. The regulations shall: (1) allow developers or owners of clean energy generation
695	695	649resources to submit proposals for long-term contracts; (2) require that contracts executed by the
696	696	650distribution companies under such proposals are filed with, and approved by, the department of
697	697	651public utilities before they become effective; (3) provide for an annual remuneration for the
698	698	652contracting distribution company equal to 2.25 per cent of the annual payments under the
699	699	653contract to compensate the company for accepting the financial obligation of the long-term
700	700	654contract; provided, however, that such provision shall be acted upon by the department of public
701	701	655utilities at the time of contract approval; (4); require associated transmission costs to be
702	702	656incorporated into a proposal; provided, however, that, to the extent there are regional or project-
703	703	657specific transmission costs included in a bid, the department of public utilities may, if it finds
704	704	658such recovery to be in the public interest, authorize or require the contracting parties to seek
705	705	659recovery of such transmission costs from other states or from benefitted entities or populations in 32 of 45
706	706	660other states through federal transmission rates, consistent with policies and tariffs of the Federal
707	707	661Energy Regulatory Commission and (5) require that the clean energy resources to be used by a
708	708	662developer or owner under the proposal meet the following criteria: (i) provide enhanced
709	709	663electricity reliability, system safety and energy security; (ii) contribute to reducing winter
710	710	664electricity price spikes; (iii) are cost effective to electric ratepayers in the commonwealth over
711	711	665the term of the contract taking into consideration potential costs and benefits to the ratepayers,
712	712	666including potential economic and environmental benefits and opportunities to equitably allocate
713	713	667costs to, and equitably share costs with, other states and populations within other states that may
714	714	668benefit from clean energy generation procured by the commonwealth;; (iv) if applicable, avoid
715	715	669line loss and mitigate transmission costs to the extent possible and ensure that transmission cost
716	716	670overruns, if any, are not borne by ratepayers; (iv) allow long-term contracts for clean energy
717	717	671generation resources to be paired with energy storage systems, including new and existing mid-
718	718	672duration and long-duration energy storage systems; (v) if applicable, adequately demonstrate
719	719	673project viability in a commercially reasonable timeframe; (vi) include benefits to environmental
720	720	674justice populations and low-income ratepayers in the commonwealth ; and (vii) include
721	721	675opportunities for diversity, equity and inclusion, including, at a minimum, a workforce diversity
722	722	676plan and supplier diversity program plan.
723	723	677 (e) A proposed long-term contract shall be subject to the review and approval of the
724	724	678department of public utilities and shall be apportioned among the distribution companies. As part
725	725	679of its approval process, the department of public utilities shall consider recommendations by the
726	726	680attorney general, which shall be submitted to the department within 45 days following the filing
727	727	681of a proposed long-term contract with the department. The department of public utilities shall
728	728	682take into consideration the department of energy resources’ recommendations on the potential 33 of 45
729	729	683costs and benefits to the rate payers, including opportunities to equitably allocate costs to, and
730	730	684equitably share costs with, other states and populations within other states that may benefit from
731	731	685clean energy generation procured by the commonwealth, and the requirements of chapter 298 of
732	732	686the acts of 2008 and chapter 21N of the General Laws. The department of public utilities shall
733	733	687consider the potential costs and benefits of the proposed long-term contract and shall approve a
734	734	688proposed long-term contract if the department finds that the proposed contract is in the public
735	735	689interest and is a cost-effective mechanism for procuring beneficial, reliable clean energy on a
736	736	690long-term basis, taking into account the factors outlined in this section. A distribution company
737	737	691shall be entitled to cost recovery of payments made under a long-term contract approved under
738	738	692this section.
739	739	693 (f) The department of energy resources and the attorney general shall jointly select,
740	740	694and the department of energy resources shall contract with, an independent evaluator to monitor
741	741	695and report on the solicitation and bid selection process in order to assist the department of energy
742	742	696resources in determining whether a proposal received pursuant to subsection (b) is reasonable
743	743	697and to assist the department of public utilities in its consideration of long-term contracts or filed
744	744	698for approval. To ensure an open, fair and transparent solicitation and bid selection process that is
745	745	699not unduly influenced by an affiliated company, the independent evaluator shall: (1) issue a
746	746	700report to the department of public utilities analyzing the timetable and method of solicitation and
747	747	701the solicitation process implemented by the distribution companies and the department of energy
748	748	702resources under subsection (b) and include recommendations, if any, for improving the process;
749	749	703and (2) upon the opening of an investigation by the department of public utilities into a proposed
750	750	704long-term contract for a winning bid proposal, file a report with the department of public utilities
751	751	705summarizing and analyzing the solicitation and the bid selection process, and providing its 34 of 45
752	752	706independent assessment of whether all bids were evaluated in a fair and non-discriminatory
753	753	707manner. The independent evaluator shall have access to all information and data related to the
754	754	708competitive solicitation and bid selection process necessary to fulfill the purposes of this
755	755	709subsection but shall ensure all proprietary information remains confidential. The department of
756	756	710public utilities shall consider the findings of the independent evaluator and may adopt
757	757	711recommendations made by the independent evaluator as a condition for approval. If the
758	758	712independent evaluator concludes in the findings that the solicitation and bid selection of a long-
759	759	713term contract was not fair and objective and that the process was substantially prejudiced as a
760	760	714result, the department of public utilities shall reject the contract.
761	761	715 (g) The distribution companies shall each enter into a contract with the winning
762	762	716bidders for their apportioned share of the market products being purchased from the project. The
763	763	717apportioned share shall be calculated and based upon the total energy demand from all
764	764	718distribution customers in each service territory of the distribution companies.
765	765	719 (h) An electric distribution company may elect to use any energy purchased under
766	766	720such contracts for resale to its customers, and may elect to retain clean energy certificates to
767	767	721meet any applicable annual portfolio standard requirements, including section 11F of said
768	768	722chapter 25A, and other clean energy compliance standards as applicable. If the energy and clean
769	769	723energy certificates are not so used, such companies shall sell such purchased energy into the
770	770	724wholesale market and shall sell such purchased clean energy certificates attributed to any
771	771	725applicable portfolio standard eligible resources to minimize the costs to ratepayers under the
772	772	726contract. The department of energy resources shall conduct periodic reviews to determine the
773	773	727impact on the energy and clean energy certificate markets of the disposition of energy and clean
774	774	728energy certificates under this section and may issue reports recommending legislative changes if 35 of 45
775	775	729it determines that actions are being taken that will adversely affect the energy and clean energy
776	776	730certificate markets.
777	777	731 (i) If a distribution company sells the purchased energy into the wholesale spot
778	778	732market and auctions the clean energy certificates as described in this section, the distribution
779	779	733company shall net the cost of payments made to projects under the long-term contracts against
780	780	734the net proceeds obtained from the sale of energy and clean energy certificates, and the
781	781	735difference shall be credited or charged to all distribution customers through a uniform fully
782	782	736reconciling annual factor in distribution rates, subject to review and approval of the department
783	783	737of public utilities.
784	784	738 (j) A long-term contract procured under this section shall utilize an appropriate
785	785	739tracking system to ensure a unit specific accounting of the delivery of clean energy, to enable the
786	786	740department of environmental protection, in consultation with the department of energy resources,
787	787	741to accurately measure progress in achieving the commonwealth’s goals under chapter 298 of the
788	788	742acts of 2008 or chapter 21N of the General Laws.
789	789	743 (k) The department of energy resources and the department of public utilities may
790	790	744jointly develop requirements for a bond or other security to ensure performance with
791	791	745requirements under this section.
792	792	746 (l) The department of energy resources may promulgate regulations necessary to
793	793	747implement this section.
794	794	748 (m) If this section is subjected to a legal challenge, the department of public utilities
795	795	749may suspend the applicability of the challenged provision during the pendency of the action until
796	796	750a final resolution, including any appeals, is obtained and shall issue an order and take other 36 of 45
797	797	751actions as are necessary to ensure that the provisions not subject to the challenge are
798	798	752implemented expeditiously to achieve the public purposes of this section.
799	799	753 SECTION 28. Section 82 of chapter 179 of the acts of 2022, is hereby amended by
800	800	754striking out the words “December 31, 2022” and inserting in place thereof the following words:-
801	801	755December 31, 2025
802	802	756 SECTION 29. Subsection (c) of section 85 of chapter 179 of the Acts of 2022 is hereby
803	803	757amended by striking out the word “may”, in the first instance that it occurs, and inserting therein
804	804	758the following word:- “shall”
805	805	759 SECTION 30. The legislature shall establish annual targets for solar based on the
806	806	760Governor’s stated intent to develop 10 GW of solar by 2030 (1.25 GW/year, or a lower target
807	807	761escalating as necessary), and instruct DOER to revise the SMART Program to meet these targets,
808	808	762as follows:
809	809	763 A. Establish sub-targets for the different types of solar installations (roof-mount, ground-
810	810	764mount, parking lot), and instruct DOER to increase the SMART Program adders in order to
811	811	765achieve those targets (i.e. increase adders for Building, Canopy, Community Shared Solar,
812	812	766Agricultural and Tracker —including single-axis in order that these adders accurately reflect true
813	813	767costs to incentivize adequate additional capacity to meet annual goals and are adjusted annually
814	814	768by DOER).
815	815	769 B. Instruct DOER to revise basic SMART rates to counter substantial component price
816	816	770increases over the past 12 months. The rate revision should be guided by a 3rd party assessment
817	817	771of what rates will be required to drive solar installations to established targets. 37 of 45
818	818	772 C. Instruct DOER to make rates consistent across all utility service territories.
819	819	773 D. Instruct DOER to increase the capacity per block, to lessen the declination between
820	820	774blocks, and to ensure that the revised SMART Program will meet the Governor’s stated goal of
821	821	77510 GW of solar by 2030 (and subsequent goals to be established).
822	822	776 E. Instruct DOER to conduct a review of the SMART program every 2 years to ensure
823	823	777that it is on track to drive solar installations to or beyond established goals, and to address known
824	824	778issues.
825	825	779 F. Instruct DOER to eliminate the Critical Natural Landscapes restriction from the
826	826	780BioMap 2 language and exclusions to SMART program participation.
827	827	781 G. Eliminate the cap on the state investment tax credit for residential installations, and
828	828	782make it refundable.
829	829	783 H. Allow manual reporting for new systems under 60 KW
830	830	784 I. Instruct the Grid Modernization Advisory Council (GMAC) to permit the utilities to
831	831	785recover any grid modernization costs determined by the GMAC to be reasonable and prudent in
832	832	786order to create adequate capacity to interconnect 10 GW of new Solar by 2030;
833	833	787 J. Establish annual storage (without pairing with solar) goals to meet the Governors 2030
834	834	788storage target goals, including net metering for mobile and stationary storage systems;
835	835	789 K. Enable the DOER to fund the CEC to establish a new solar loan program as a part of
836	836	790the Governor’s
837	837	791 proposed Green Bank; 38 of 45
838	838	792 L. Enable legislation to require the DOER to establish a separate solar and storage
839	839	793program in Municipal Light Plant cities and towns (MLPs) to be funded through general
840	840	794revenues of the Commonwealth or through a surtax on those Cities and Towns that opt into this
841	841	795program.
842	842	796 SECTION 31. (a) Notwithstanding any general or special law to the contrary, on or
843	843	797before January 1, 2030, all electricity supply procured by the Commonwealth for use in state
844	844	798facilities must be at least 95% derived from an hourly 24/7 load following zero-emission
845	845	799product.
846	846	800 (b) “Hourly 24/7 load following zero-emission product” is defined as an electric supply
847	847	801product where real-time demand for electricity will be met with zero-emission energy every
848	848	802hour, every day, and produced within either the federally-regulated regional electric grid where
849	849	803the electricity is consumed or the PJM and New York control areas adjacent to where the
850	850	804electricity is consumed.
851	851	805 SECTION 32.
852	852	806 1. Notwithstanding any general or special law to the contrary, as used in this section:
853	853	807 (a) "Department" means the Department of Public Utilities.
854	854	808 (b) “Electric company”, means as defined in section 1 of Chapter 164.
855	855	809 (c) "Meter socket adapter" means an electronic device that is installed between a
856	856	810residential electric meter and the meter socket, for the purpose of facilitating the deployment of
857	857	811customer-owned or customer-leased technology. 39 of 45
858	858	812 2. An electric company shall authorize the installation and operation of a meter socket
859	859	813adapter, whether owned by a residential customer or by a third-party, provided the meter socket
860	860	814adapter meets the following criteria:
861	861	815 (a) the meter socket adapter is qualified to be connected to the supply side of the service
862	862	816disconnect pursuant to the applicable provisions of the National Electric Code;
863	863	817 (b) the meter socket adapter is approved or listed by a nationally recognized testing
864	864	818laboratory and is rated appropriately for the meter socket into which it is intended to be installed;
865	865	819 (c) the meter socket adapter is certified to meet all applicable standards, as determined
866	866	820by a nationally recognized testing laboratory; and
867	867	821 (d) the meter socket adapter does not prevent access to the sealed meter socket
868	868	822compartment or the pull section of the service section of the electric meter or switchboard, as
869	869	823applicable.
870	870	824 3. A manufacturer of a meter socket adapter, a third-party, a residential customer, or an
871	871	825electric public utility shall all be allowed to install, maintain, or service a meter socket adapter or
872	872	826associated equipment.
873	873	827 4. An electric public utility shall modify its electric service requirements as necessary to
874	874	828implement the provisions of this section immediately after the effective date of this section.
875	875	829 5. An electric public utility shall approve or disapprove a request for approval of a
876	876	830specific model of meter socket adapter for installation in its service area no later than 60 days
877	877	831after a manufacturer or third-party submits a request for approval of the specific model of meter
878	878	832socket adapter. An electric public utility shall provide public notice of all decisions approving a 40 of 45
879	879	833meter socket adapter, including by posting the information on the utility's Internet website.
880	880	834Should an electric public utility disapprove a specific model of meter socket adapter, the electric
881	881	835public utility shall provide an explanation to the requesting vendor enumerating the reasons the
882	882	836application was denied.
883	883	837 6. The Department may adopt rules and regulations as necessary to implement the
884	884	838provisions of this section.
885	885	839 SECTION 33. Notwithstanding any general or special law to the contrary, the
886	886	840Department of Energy Resources shall conduct a review to determine the effectiveness of the
887	887	841Commonwealth’s existing solicitations and procurements required by section 83C of chapter 169
888	888	842of the acts of 2008, as amended by chapter 188 of the acts of 2016, for the purposes of ensuring
889	889	843compliance with statewide greenhouse gas emissions limits and sublimits under chapter 21N of
890	890	844the General Laws. The Department’s recommendations shall include a review of prior clean
891	891	845energy solicitations, a review of best practices and models utilized by other states to procure
892	892	846clean energy, as well as any legislative recommendations needed to amend or replace existing
893	893	847statutory authority. The Department shall consult with the clean energy industry as part of this
894	894	848review process. Such review and recommendations shall be submitted to the Joint Committee on
895	895	849Telecommunications, Utilities, & Energy no later than September 1, 2024.
896	896	850 SECTION 34. Notwithstanding any general or special law or rule, regulation or order to
897	897	851the contrary, the department of public utilities shall conduct an adjudicatory proceeding to
898	898	852determine the efficacy of current retail rate structures in achieving statewide greenhouse gas
899	899	853reduction and clean energy deployment goals and to explore the establishment of alternative rate
900	900	854designs that: 41 of 45
901	901	855 (a) improve alignment of electric rates with marginal costs of the changing electric
902	902	856system;
903	903	857 (b) do not unreasonably impair volumetric price signals that encourage energy
904	904	858conservation;
905	905	859 (c) provide reasonable opportunities for consumers to invest in beneficial electrification
906	906	860measures and achieve fuel cost savings through shifting electric usage to price-discounted time
907	907	861periods of low system demand or lower than average greenhouse gas content;
908	908	862 (d) maintain simplicity and understandability for default service for residential
909	909	863consumers;
910	910	864 (e) preserve and enhance the bill discounts for qualifying low-income consumers and
911	911	865the opportunities for low-income consumers to achieve additional household expenditure savings
912	912	866through beneficial electrification or utilization of distributed energy resources;
913	913	867 (f) provide rate options and retail billing practices that encourage consumers to adopt
914	914	868technologies that enhance and automate response to price signals in order to achieve bill savings;
915	915	869and
916	916	870 (g) incorporate practices that compensate or provide credits to consumers for engaging
917	917	871in home energy management solutions that avoid the need for grid upgrades to accommodate
918	918	872additional loads associated with beneficial electrification or utilization of an onsite distributed
919	919	873energy resource.
920	920	874 (1) On or before December 15, 2025, the Department shall issue an order addressing the
921	921	875matters in this section and shall provide a report to the legislature on the Department’s 42 of 45
922	922	876investigation into retail rate designs and practices, including recommendations for any statutory
923	923	877changes needed to facilitate alternative retail rate designs or electric company investments in
924	924	878advanced metering needed to efficiently and expeditiously meet the Commonwealth’s
925	925	879greenhouse gas reduction and clean energy deployment goals. The report shall also identify any
926	926	880other solutions or barriers to widespread consumer adoption of beneficial electrification
927	927	881measures and distributed energy resources that were discussed during the investigatory docket,
928	928	882but that are beyond the traditional jurisdiction of the department.
929	929	883 (2) Nothing in this section shall prevent the department from initiating rate design pilots
930	930	884during the pendency of the investigatory docket or prior the issuance of the order or the
931	931	885submission of the report required in subsection 1.
932	932	886 (3) For purposes of this section:
933	933	887 (a)“Beneficial electrification measure” means the replacement of direct fossil fuel
934	934	888use with electricity in a way that either reduces overall lifetime emissions or energy costs.
935	935	889 (b)“Distributed energy resource” means an energy resource located on an electric
936	936	890company’s customer that produces or stores electricity or modifies the timing or amount of a
937	937	891customer’s electrical consumption.
938	938	892 SECTION 35. Notwithstanding any general or special law or rule, regulation or order to
939	939	893the contrary, (a) “Net Crediting” means a payment mechanism that requires an Electric
940	940	894distribution company to, at the request of a host project or eligible Solar Tariff Generation Unit
941	941	895(STGU) System: 43 of 45
942	942	896 (i) Include the monthly subscription charge of a host project or eligible STGU System on
943	943	897the monthly Bills rendered by the Electric distribution company for electric service and supply to
944	944	898subscribers; and
945	945	899 (ii) Remit payment for those charges to the host project or eligible STGU System,
946	946	900irrespective of whether applicable subscribers have paid their electric bill.
947	947	901 (iii) An Electric distribution company may require a reasonable fee for a host project or
948	948	902eligible STGU Systems that uses net crediting. The fee shall not exceed one percent of the bill
949	949	903credit value remitted to the system unless the Department determines a higher fee is just and
950	950	904reasonable based on substantial evidence presented by the Electric distribution company. The fee
951	951	905for net crediting assessed to a host project or STGU system shall not exceed the fee in effect at
952	952	906the time the host project or eligible STGU System elected for an associated STGU System to
953	953	907participate in net crediting.
954	954	908 SECTION 36. Notwithstanding any general or special law, rule or regulation to the
955	955	909contrary, the department of public utilities shall require the electric distribution companiesto
956	956	910implement consolidated billing on Alternative On-Bill Credit (AOBC) Low-Income Community
957	957	911Shared Solar (LICSS) Generation Units. In implementing said consolidated billing, the electric
958	958	912distribution companies shall apply the net value of the bill credit directly to customer’s accounts
959	959	913and remit the developer or owner portion of the payment directly to the developer or owner.
960	960	914 The net value of the bill credit the electric distribution companies would apply to
961	961	915customer accounts may be calculated from the SMART Participant Disclosure Form.
962	962	916 SECTION 37. Notwithstanding any general or special law, rule or regulation to the
963	963	917contrary, in 2026 and all subsequent compliance years, 225 CMR 15.07 (2) shall be equal to 44 of 45
964	964	9183.7% of electrical energy sales and 225 CMR 15.08 (4) 2 shall be equal to the alternative
965	965	919compliance rate for the RPS Class ll Renewable Energy Minimum Standard set to 225 CMR
966	966	92015.08 (3) (a) 2.
967	967	921 SECTION 38. The advisory working group for the program to encourage the construction
968	968	922and operation of solar power generating canopies over large parking lots under section 29 of
969	969	923chapter 21A of the General Laws and established by Section 1 of this act shall make its
970	970	924recommendations no later than 1 year after the effective date of this act.
971	971	925 SECTION 39. The department shall implement Section 1 no later than 2 years after the
972	972	926effective date of this act.
973	973	927 SECTION 40. The department of public utilities shall promulgate regulations to
974	974	928implement section 14, including the establishment of a moderate-income discount eligibility rate
975	975	929following an investigation thereof.
976	976	930 SECTION 41. The department shall promulgate regulations to implement section 21
977	977	931within 180 days.
978	978	932 SECTION 42. Section 116(a) of chapter 116 shall be implemented no later than 12
979	979	933months after the effective date of this act.
980	980	934 SECTION 43. The department shall promulgate rules and regulations necessary for the
981	981	935implementation of section 18 within one year of the effective date of this act.
982	982	936 SECTION 44. The rules required by subsection (b) of section 92E of chapter 164 of the
983	983	937General Laws shall be promulgated by the department of public utilities within 270 days of the
984	984	938effective date of this act. 45 of 45
985	985	939 SECTION 45. The office of the ombudsperson required by section 92E of chapter 164 of
986	986	940the General Laws shall be established by the department of public utilities within 180 days of the
987	987	941effective date of this act.