Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H755 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 of 1
2	2	HOUSE DOCKET, NO. 1696 FILED ON: 1/18/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 755
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Natalie M. Blais
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act reforming energy system planning for equity and climate transformation.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Natalie M. Blais1st Franklin1/18/2023Mindy Domb3rd Hampshire1/20/2023Jack Patrick Lewis7th Middlesex2/6/2023Margaret R. Scarsdale1st Middlesex2/9/2023Lindsay N. Sabadosa1st Hampshire2/17/2023 1 of 10
16	16	HOUSE DOCKET, NO. 1696 FILED ON: 1/18/2023
17	17	HOUSE . . . . . . . . . . . . . . . No. 755
18	18	By Representative Blais of Deerfield, a petition (accompanied by bill, House, No. 755) of
19	19	Natalie M. Blais and others for legislation to establish a department of energy transformation
20	20	planning within the Executive Office of Energy and Environmental Affairs. Environment and
21	21	Natural Resources.
22	22	The Commonwealth of Massachusetts
23	23	_______________
24	24	In the One Hundred and Ninety-Third General Court
25	25	(2023-2024)
26	26	_______________
27	27	An Act reforming energy system planning for equity and climate transformation.
28	28	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
29	29	of the same, as follows:
30	30	1 SECTION 1. The General Laws are hereby amended by inserting after chapter 25C the
31	31	2following chapter:-
32	32	3 Chapter 25D. DEPARTMENT OF ENERGY TRANSFORMATION PLANNING
33	33	4 Section 1. As used in this chapter the following words shall, unless the context clearly
34	34	5requires otherwise, have the following meanings:-
35	35	6 “Energy distribution system”, the components of the electric grid, natural gas distribution
36	36	7network, geomicrogrid, or other utility-scale investment that collectively distribute electricity
37	37	8and/or thermal energy to consumers in the Commonwealth.
38	38	9 “Environmental burdens”, as defined in section 62 of chapter 30, including any
39	39	10destruction, damage or impairment of natural resources that is not insignificant, resulting from
40	40	11intentional or reasonably foreseeable causes, including but not limited to, climate change, air 2 of 10
41	41	12pollution, water pollution, improper sewage disposal, dumping of solid wastes and other noxious
42	42	13substances, excessive noise, activities that limit access to natural resources and constructed
43	43	14outdoor recreational facilities and venues, inadequate remediation of pollution, reduction of
44	44	15ground water levels, impairment of water quality, increased flooding or storm water flows, and
45	45	16damage to inland waterways and waterbodies, wetlands, marine shores and waters, forests, open
46	46	17spaces, and playgrounds from private industrial, commercial or government operations or other
47	47	18activity that contaminates or alters the quality of the environment and poses a risk to public
48	48	19health.
49	49	20 “Environmental justice population”, as defined in section 62 of chapter 30 of the General
50	50	21Laws, including a neighborhood that meets 1 or more of the following criteria: (i) the annual
51	51	22median household income is not more than 65 per cent of the statewide annual median
52	52	23household income; (ii) minorities comprise 40 per cent or more of the population; (iii) 25 per
53	53	24cent or more of households lack English language proficiency; or (iv) minorities comprise 25 per
54	54	25cent or more of the population and the annual median household income of the municipality in
55	55	26which the neighborhood is located does not exceed 150 per cent of the statewide annual median
56	56	27household income; provided, however, that for a neighborhood that does not meet said criteria,
57	57	28but a geographic portion of that neighborhood meets at least 1 criterion, the secretary may
58	58	29designate that geographic portion as an environmental justice population upon the petition of at
59	59	30least 10 residents of the geographic portion of that neighborhood meeting any such criteria;
60	60	31provided further, that the secretary may determine that a neighborhood, including any geographic
61	61	32portion thereof, shall not be designated an environmental justice population upon finding that:
62	62	33(A) the annual median household income of that neighborhood is greater than 125 per cent of the
63	63	34statewide median household income; (B) a majority of persons age 25 and older in that 3 of 10
64	64	35neighborhood have a college education; (C) the neighborhood does not bear an unfair burden of
65	65	36environmental pollution; and (D) the neighborhood has more than limited access to natural
66	66	37resources, including open spaces and water resources, playgrounds and other constructed outdoor
67	67	38recreational facilities and venues.
68	68	39 “Environmental justice principles”, as defined in section 62 of chapter 30 of the General
69	69	40Laws, including principles that support protection from environmental pollution and the ability
70	70	41to live in and enjoy a clean and healthy environment, regardless of race, color, income, class,
71	71	42handicap, gender identity, sexual orientation, national origin, ethnicity or ancestry, religious
72	72	43belief or English language proficiency, which includes: (i) the meaningful involvement of all
73	73	44people with respect to the development, implementation and enforcement of environmental laws,
74	74	45regulations and policies, including climate change policies; and (ii) the equitable distribution of
75	75	46energy and environmental benefits and environmental burdens.
76	76	47 “Long-term distribution system planning”, comprehensive 10-year plan for the energy
77	77	48distribution system to meet customers’ energy, capacity, and thermal needs.
78	78	49 “Distributed energy resources”, distributed renewable generation facilities, energy
79	79	50efficiency, energy storage, electric vehicles, active demand management, and load management
80	80	51technologies.
81	81	52 Section 2. There shall be within the executive office of energy and environmental affairs
82	82	53a department called the department of energy transformation planning, under the supervision of a
83	83	54commissioner of energy transformation planning, hereinafter the commissioner. The duties given
84	84	55to the commissioner in this chapter and in any other general or special law shall be exercised and
85	85	56discharged subject to the direction, control and supervision of the secretary of energy and 4 of 10
86	86	57environmental affairs. The commissioner shall be appointed by the secretary of energy and
87	87	58environmental affairs, with the approval of the governor, and may, with like approval, be
88	88	59removed. The commissioner shall be a person of skill and experience in the field of energy
89	89	60regulation or policy and shall serve a term coterminous with that of the governor. The position of
90	90	61commissioner shall be classified in accordance with section 45 of chapter 30 and the salary shall
91	91	62be determined in accordance with section 46C of said chapter 30. The commissioner shall devote
92	92	63full time during business hours to the duties of the office. In the case of an absence or vacancy in
93	93	64the office of the commissioner, or in the case of disability as determined by the secretary, the
94	94	65secretary may designate an acting commissioner to serve as commissioner until the vacancy is
95	95	66filled or the absence or disability ceases. The acting commissioner shall have all the powers and
96	96	67duties of the commissioner and shall have similar qualifications as the commissioner.
97	97	68 Section 3. The commissioner shall be the executive and administrative head of the
98	98	69department of energy transformation planning and shall be responsible for administering and
99	99	70enforcing the provisions of law relative to the division and to each administrative unit thereof.
100	100	71 The department shall advance the commonwealth’s public interest by conducting
101	101	72statewide long-term distribution system planning. The department’s long-term distribution
102	102	73planning shall meet the goals and objectives outlined in section 5.
103	103	74 The commissioner may, from time to time, subject to appropriation, establish within the
104	104	75department such administrative units as may be necessary for the efficient and economical
105	105	76administration of the department and, when necessary for such purpose, may abolish any such
106	106	77administrative unit, or may merge any 2 or more of them, as the commissioner deems advisable.
107	107	78The commissioner shall prepare and keep current a statement of the organization of the 5 of 10
108	108	79department, of the assignment of its functions to its various administrative units, offices and
109	109	80employees, and of the places at which and the methods whereby the public may receive
110	110	81information or make requests. Such statement shall be known as the department's description of
111	111	82organization. A current copy of the description of organization shall be kept on file in the office
112	112	83of the secretary of state and in the office of the secretary of administration.
113	113	84 Section 4. Subject to appropriation, the commissioner of energy transformation planning
114	114	85with the approval of the governor may appoint such persons as they shall deem necessary to
115	115	86perform the functions of the department and his office, provided that the provisions of chapter 31
116	116	87and section 9Aof chapter 30 shall not apply to any person holding any such appointment. Every
117	117	88person so appointed to any position in his office shall have experience and skill in the field of
118	118	89such position. So far as practicable in the judgment of the commissioner, appointments to such
119	119	90positions in their office shall be made by promoting or transferring employees of the
120	120	91commonwealth serving in positions which are classified under chapter 31, and such
121	121	92appointments shall at all times reflect the professional needs of the department or division
122	122	93affected. If an employee serving in a position which is classified under chapter 31 or in which an
123	123	94employee has tenure by reason of section 9A of chapter 30 shall be appointed to a position
124	124	95within this office which is not subject to the provisions of chapter 31, the employee shall upon
125	125	96termination of his service in such position be restored to the position which they held
126	126	97immediately prior to such appointment; provided, however, that their service in such position
127	127	98shall be determined by the civil service commission in accordance with the standards applied by
128	128	99said commission in administering chapter 31. Such restoration shall be made without impairment
129	129	100of their civil service status or tenure under section 9A of chapter 30 and without loss of seniority,
130	130	101retirement or other rights to which uninterrupted service in such prior position would have 6 of 10
131	131	102entitled him. During the period of such appointment, each person so appointed from a position in
132	132	103the classified civil service shall be eligible to take any competitive promotional examination for
133	133	104which the person would otherwise have been eligible. The general court shall appropriate
134	134	105funding necessary to fully implement the long-term distribution system planning provisions of
135	135	106this chapter.
136	136	107 Section 5. (a) The department shall, in consultation with the Department of Energy
137	137	108Resources and the Department of Public Utilities, develop and implement long-term distribution
138	138	109system plans to assist in the transition to a clean, affordable, and reliable electric grid and
139	139	110restructured natural gas distribution system in a cost-effective manner. No later than December
140	140	11131, 2023, and every 3 years thereafter, the shall issue a 10-year plan for the energy distribution
141	141	112system to enable the cost-effective achievement of statewide greenhouse gas emissions limits
142	142	113and other climate policies pursuant to chapter 21N. The plan shall examine the energy
143	143	114distribution system’s relationship to the regional grid, to identify cost-effective solutions to
144	144	115improve reliability and resiliency, and to achieve greenhouse gas reductions.
145	145	116 (b) The department shall be responsible for the following functions and duties:
146	146	117 (i) enhanced load forecasting that reflects end-use electrification and distributed energy
147	147	118resources, in coordination with electric distribution companies;
148	148	119 (ii) coordinating with utilities to ensure data adequacy, accuracy, consistency, and
149	149	120transparency;
150	150	121 (iii) coordinating with relevant executive offices charged with energy policy to
151	151	122incorporate other public policy programs and objectives, including equitable access to the
152	152	123benefits of distributed energy resources; and 7 of 10
153	153	124 (iv) development of related metrics for monitoring incremental progress toward planning
154	154	125goals pursuant to section 5, including for the purposes of evaluating electric or natural gas
155	155	126distribution company service pursuant to section 5.
156	156	127 (c) The department shall conduct its long-term distribution system planning in a fully
157	157	128transparent and accessible way and shall allow for rigorous stakeholder input. The department
158	158	129shall run technical conferences and stakeholder workshops before the plans are developed to
159	159	130define requirements and inform inputs, assumptions, methodologies, and tools that will assist the
160	160	131department in determining what actions it shall direct an electric transmission and distribution
161	161	132company to take. An electric transmission and distribution company shall ensure to the greatest
162	162	133extent practicable that any information requested by the department is provided in a form
163	163	134accessible to interested parties and all relevant data and distribution planning modeling tools are
164	164	135available to stakeholders subject to commercial non-disclosure, confidential energy
165	165	136infrastructure, codes of conduct and other commercial, department of public utilities, and FERC
166	166	137requirements.
167	167	138 Plans shall include, but not be limited to: (i) forecasts of projected load that accounts for
168	168	139factors including projected end-use electrification, state climate mandates, energy efficiency and
169	169	140distributed energy resources;
170	170	141 (ii) baseline energy supply data and assessment, including but not limited to energy
171	171	142generation additions including renewable energy, and energy storage installations;
172	172	143 (iii) hosting capacity analysis including locational benefits of distributed energy resources
173	173	144and areas of existing or potential system congestion; 8 of 10
174	174	145 (iv) analysis of available and emerging technologies necessary to enable load
175	175	146management and flexibility;
176	176	147 (v) an assessment of the environmental burdens and impact upon environmental justice
177	177	148populations of integrated distribution plans;
178	178	149 (vi) an assessment of consumer cost impacts and protections for low-income
179	179	150communities;
180	180	151 (vii) a 3-year action plan to optimize near-term grid investments and operations; and
181	181	152 (viii) pathways that address the strategic wind-down of the natural gas system, including
182	182	153whether components of the gas distribution system should be safely decommissioned, replaced,
183	183	154repaired, or repurposed to meet customer needs, including the possibility of using networked
184	184	155geothermal systems that use non-emitting renewable thermal infrastructure.
185	185	156 Section 6. (a) The department shall conduct the long-term distribution system planning
186	186	157for the technologies and services that are required to meet statewide greenhouse gas emissions
187	187	158limits pursuant to chapter 21N. The department shall conduct long-term system planning so that
188	188	159the commonwealth can mitigate and equitably adapt to climate change while minimizing
189	189	160stranded costs.
190	190	161 (b) Each plan shall prioritize alleviating and mitigating energy burdens experienced by
191	191	162environmental justice populations and shall equitably allocate costs.
192	192	163 (c) The department shall integrate and utilize distributed and local energy resources to
193	193	164meet customers’ energy, capacity, and thermal needs and shall maximize customer benefits while
194	194	165attempting to minimize costs. The department shall consider the costs of climate change impacts, 9 of 10
195	195	166including societal impacts and impacts to the distribution system itself, when evaluating alternate
196	196	167pathways for meeting distribution system needs.
197	197	168 (d) The distribution system plans shall ensure energy system safety, reliability, and
198	198	169affordability.
199	199	170 Section 7. The department may at any time, if it determines it is necessary, revise an
200	200	171energy distribution system plan to address any deficiencies. The department of public utilities
201	201	172may order an electric or natural gas distribution company to take any reasonable actions to align
202	202	173its business, programs, operations, and investments with the plan.
203	203	174 Section 8. (a) The department shall conduct open and competitive procurement processes
204	204	175to solicit proposals to fill the system needs identified in the energy distribution system plan. The
205	205	176department shall oversee open markets to solicit and to select projects that meet the grid,
206	206	177consumer, environmental justice principles, and climate objectives outlined in section 5.
207	207	178 (b) The department shall determine which distribution assets may provide consumer and
208	208	179grid benefits by remaining under monopoly ownership and control and shall assign those needs
209	209	180directly to the electric distribution company who shall incorporate them in their next rate case or
210	210	181grid modernization proceeding before the department of public utilities.
211	211	182 SECTION 2. The secretary of energy and environmental affairs, in consultation with the
212	212	183department of public utilities, shall promulgate regulations for the implementation,
213	213	184administration and enforcement of this chapter.
214	214	185 SECTION 3. No later than 90 days after the effective date of this act, the secretary of
215	215	186energy and environmental affairs shall submit a report to the clerks of the senate and the house of 10 of 10
216	216	187representatives, joint committee on telecommunications, utilities, and energy, the house and
217	217	188senate committees on ways and means, that includes an assessment of staffing and resources that
218	218	189may be necessary to implement the long-term distribution planning provisions of chapter 25D of
219	219	190the General Laws, as inserted by this act.