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| 2 | 2 | | SENATE DOCKET, NO. 2346 FILED ON: 1/20/2023 |
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| 3 | 3 | | SENATE . . . . . . . . . . . . . . No. 2082 |
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| 4 | 4 | | The Commonwealth of Massachusetts |
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| 5 | 5 | | _________________ |
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| 6 | 6 | | PRESENTED BY: |
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| 7 | 7 | | Michael J. Barrett |
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| 8 | 8 | | _________________ |
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| 9 | 9 | | To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General |
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| 10 | 10 | | Court assembled: |
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| 11 | 11 | | The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: |
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| 12 | 12 | | An Act to establish a clean heating initiative in the commonwealth and reorganize the energy |
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| 13 | 13 | | efficiency programs known as MassSave. |
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| 14 | 14 | | _______________ |
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| 15 | 15 | | PETITION OF: |
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| 16 | 16 | | NAME:DISTRICT/ADDRESS :Michael J. BarrettThird MiddlesexLindsay N. Sabadosa1st Hampshire1/31/2023Jason M. LewisFifth Middlesex2/3/2023Joanne M. ComerfordHampshire, Franklin and Worcester2/3/2023Michael O. MooreSecond Worcester2/15/2023James B. EldridgeMiddlesex and Worcester3/6/2023 1 of 9 |
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| 17 | 17 | | SENATE DOCKET, NO. 2346 FILED ON: 1/20/2023 |
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| 18 | 18 | | SENATE . . . . . . . . . . . . . . No. 2082 |
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| 19 | 19 | | By Mr. Barrett, a petition (accompanied by bill, Senate, No. 2082) of Michael J. Barrett, Lindsay |
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| 20 | 20 | | N. Sabadosa, Jason M. Lewis, Joanne M. Comerford and other members of the General Court for |
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| 21 | 21 | | legislation to establish a clean heating initiative in the commonwealth and reorganize the energy |
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| 22 | 22 | | efficiency programs known as MassSave. Telecommunications, Utilities and Energy. |
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| 23 | 23 | | The Commonwealth of Massachusetts |
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| 24 | 24 | | _______________ |
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| 25 | 25 | | In the One Hundred and Ninety-Third General Court |
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| 26 | 26 | | (2023-2024) |
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| 27 | 27 | | _______________ |
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| 28 | 28 | | An Act to establish a clean heating initiative in the commonwealth and reorganize the energy |
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| 29 | 29 | | efficiency programs known as MassSave. |
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| 30 | 30 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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| 31 | 31 | | of the same, as follows: |
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| 32 | 32 | | 1 SECTION 1. Section 19 of chapter 25 of the General Laws is hereby amended, in |
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| 33 | 33 | | 2subsection (a), by striking out the second sentence and inserting in place thereof the following |
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| 34 | 34 | | 3sentence:- The programs shall be administered by the board of the commonwealth clean heating |
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| 35 | 35 | | 4initiative as established in section 21A of this chapter in consultation with the electric |
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| 36 | 36 | | 5distribution companies and municipal aggregators with energy plans certified by the department |
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| 37 | 37 | | 6under subsection (b) of section 134 of chapter 164. |
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| 38 | 38 | | 7 SECTION 2. Said section 19 of said chapter 25 is hereby further amended by striking |
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| 39 | 39 | | 8out subsection (b) and inserting in place thereof the following subsection:- |
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| 40 | 40 | | 9 (b) The department may approve and fund gas energy efficiency programs proposed by |
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| 41 | 41 | | 10gas distribution companies, including, but not limited to, demand side management programs; |
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| 42 | 42 | | 11provided, that any gas energy efficiency programs so approved and funded shall be administered 2 of 9 |
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| 43 | 43 | | 12by the board of the commonwealth clean heating initiative established in section 21A of this |
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| 44 | 44 | | 13chapter in consultation with said gas distribution companies. Energy efficiency activities eligible |
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| 45 | 45 | | 14for funding under this section shall include combined heat and power and geothermal heating |
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| 46 | 46 | | 15and cooling projects. Funding may be supplemented by funds authorized by section 21. In |
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| 47 | 47 | | 16administering such programs, the board of the commonwealth clean heating initiative shall |
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| 48 | 48 | | 17ensure that they are delivered in a cost-effective manner capturing all available efficiency |
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| 49 | 49 | | 18opportunities, minimizing administrative costs to the fullest extent practicable; provided, |
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| 50 | 50 | | 19however, that when determining cost-effectiveness, the calculation of program benefits shall |
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| 51 | 51 | | 20include calculations of the social value of greenhouse gas emissions reductions, except in the |
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| 52 | 52 | | 21cases of conversions from fossil fuel heating and cooling to fossil fuel heating and cooling and |
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| 53 | 53 | | 22utilizing competitive procurement processes to the fullest extent practicable. |
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| 54 | 54 | | 23 SECTION 3. Section 20 of said chapter 25 is hereby amended by striking out subsection |
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| 55 | 55 | | 24(a) and inserting in place thereof the following subsection:- |
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| 56 | 56 | | 25 (a) The department shall require a mandatory charge of 0.5 mill per kilowatt-hour for all |
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| 57 | 57 | | 26electricity consumers, except those served by a municipal lighting plant which does not supply |
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| 58 | 58 | | 27generation service outside its own service territory or does not open its service territory to |
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| 59 | 59 | | 28competition at the retail level, to support the development and promotion of renewable energy |
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| 60 | 60 | | 29projects. In the event the department approves and funds gas energy efficiency programs |
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| 61 | 61 | | 30pursuant to section 19 of this chapter, the department shall provide a source of funding by |
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| 62 | 62 | | 31requiring a mandatory charge per therm for all gas customers; provided, that the department shall |
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| 63 | 63 | | 32propose a specific charge or range of charges, following which the department of public utilities |
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| 64 | 64 | | 33shall determine the exact charge to be levied after conducting an adjudicatory proceeding to |
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| 65 | 65 | | 34determine said charge. All revenues generated by charges required pursuant to this section shall 3 of 9 |
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| 66 | 66 | | 35be deposited into the Massachusetts Renewable Energy Trust Fund established under section 9 of |
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| 67 | 67 | | 36chapter 23J. |
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| 68 | 68 | | 37 SECTION 4. Section 21 of said chapter 25 is hereby amended by inserting, after the first |
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| 69 | 69 | | 38sentence of paragraph (1) of subsection (b), the following sentence:- Each plan shall be |
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| 70 | 70 | | 39administered by the board of the commonwealth clean heating initiative established in section |
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| 71 | 71 | | 4021A of this chapter. |
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| 72 | 72 | | 41 SECTION 5. Said section 21 of said chapter 25 is hereby further amended by striking |
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| 73 | 73 | | 42out subsection (c) and inserting in place thereof the following subsection:- |
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| 74 | 74 | | 43 (c) Each plan prepared under subsection (b) shall be submitted for approval and comment |
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| 75 | 75 | | 44by the board of the commonwealth clean heating initiative, hereinafter the board, established in |
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| 76 | 76 | | 45section 21A of this chapter every 3 years on or before March 30 and by the energy efficiency |
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| 77 | 77 | | 46advisory council every 3 years on or before April 30. The electric and natural gas distribution |
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| 78 | 78 | | 47companies and municipal aggregators shall provide any additional information requested by the |
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| 79 | 79 | | 48board and the council that is relevant to the consideration of the plan. The board and the council |
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| 80 | 80 | | 49shall review the plan and any additional information and shall submit their approval or comments |
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| 81 | 81 | | 50to the electric and natural gas distribution companies and municipal aggregators not later than 3 |
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| 82 | 82 | | 51months after their respective receipts of the plan. The electric and natural gas distribution |
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| 83 | 83 | | 52companies and municipal aggregators may make any changes or revisions to reflect the input of |
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| 84 | 84 | | 53the board and the council. |
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| 85 | 85 | | 54 SECTION 6. Said section 21 of said chapter 25 is hereby further amended, in paragraph |
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| 86 | 86 | | 55(1) of subsection (d), by striking out the first sentence and inserting in place thereof the |
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| 87 | 87 | | 56following sentence:- The electric and natural gas distribution companies and municipal 4 of 9 |
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| 88 | 88 | | 57aggregators shall submit their respective plans, together with the board’s and the council's |
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| 89 | 89 | | 58approval or comments and a statement of any unresolved issues, to the department every 3 years |
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| 90 | 90 | | 59on or before October 31. |
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| 91 | 91 | | 60 SECTION 7. Said chapter 25 is hereby further amended by inserting after section 21 the |
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| 92 | 92 | | 61following section:- |
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| 93 | 93 | | 62 Section 21A. (a) There is hereby established a commonwealth clean heating initiative, |
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| 94 | 94 | | 63hereinafter the clean heating initiative. There shall be a board, known as the board of the |
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| 95 | 95 | | 64commonwealth clean energy initiative, with duties and powers established pursuant to this |
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| 96 | 96 | | 65section, to govern the energy efficiency programs established pursuant to sections 19 to 22, |
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| 97 | 97 | | 66inclusive, of this chapter. Its members shall be: the secretary of energy and environmental affairs |
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| 98 | 98 | | 67or her designee; the commissioner of the department of energy resources or her designee; the |
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| 99 | 99 | | 68secretary of housing and community development or her designee; 1 individual appointed by the |
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| 100 | 100 | | 69energy efficiency advisory council; 1 individual appointed by the metropolitan area planning |
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| 101 | 101 | | 70council; and 4 individuals appointed by the governor, 2 of whom shall be representatives of the |
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| 102 | 102 | | 71electric distribution companies, chosen by the governor from a list of 3 nominees submitted by |
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| 103 | 103 | | 72the electric distribution companies operating within the commonwealth, and 2 of whom shall be |
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| 104 | 104 | | 73representatives of natural gas distribution companies, chosen by the governor from a list of 3 |
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| 105 | 105 | | 74nominees submitted by the natural gas distribution companies operating within the |
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| 106 | 106 | | 75commonwealth. At least 3 members of the commission shall reside in low-income communities, |
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| 107 | 107 | | 76the city of Boston, or in gateway municipalities as defined in section 3A of chapter 23A. 5 of 9 |
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| 108 | 108 | | 77 A vacancy occurring on the board shall be filled within 90 days by the original |
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| 109 | 109 | | 78appointing authority. A person appointed to fill a vacancy shall serve initially only for the |
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| 110 | 110 | | 79unexpired term. Members of the board shall be eligible for reappointment. |
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| 111 | 111 | | 80 (b) The board of the commonwealth clean energy initiative, hereinafter the board, shall |
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| 112 | 112 | | 81work with the chief executive officer of the clean heating initiative appointed pursuant to this |
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| 113 | 113 | | 82section to administer, in consultation with the program administrators, the energy efficiency |
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| 114 | 114 | | 83programs of the commonwealth established pursuant to sections 19 through 22, inclusive, of this |
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| 115 | 115 | | 84chapter. The board shall be responsible for promoting the cost-effectiveness of energy efficiency |
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| 116 | 116 | | 85programs and for achieving the greenhouse gas emissions limits and sublimits set pursuant to |
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| 117 | 117 | | 86chapter 21N. The board shall be responsible for tracking and assessing the operation and success |
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| 118 | 118 | | 87of said programs. |
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| 119 | 119 | | 88 (c) Meetings of the board shall be subject to sections 18 to 25, inclusive, of chapter 30A. |
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| 120 | 120 | | 89The board shall be subject to all other provisions of said chapter 30A and records pertaining to |
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| 121 | 121 | | 90the administration of the board shall be subject to section 42 of chapter 30 and section 10 of |
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| 122 | 122 | | 91chapter 66. Except as otherwise provided in this section, the operations of the board shall be |
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| 123 | 123 | | 92subject to chapter 268A and chapter 268B. |
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| 124 | 124 | | 93 (d) The board shall appoint a chief executive officer of the clean heating initiative, |
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| 125 | 125 | | 94hereinafter the chief executive officer, by a majority vote. The chief executive officer shall be |
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| 126 | 126 | | 95selected without regard to political affiliation and solely on the basis of qualifications and |
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| 127 | 127 | | 96experience as the board determines necessary and desirable. In consultation with the program |
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| 128 | 128 | | 97administrators, the chief executive officer of the clean heating initiative shall provide general 6 of 9 |
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| 129 | 129 | | 98management and operations of said energy efficiency programs. The chief executive officer shall |
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| 130 | 130 | | 99receive a salary commensurate with the duties of the office. |
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| 131 | 131 | | 100 The chief executive officer shall serve for a term of 5 years. If the position of chief |
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| 132 | 132 | | 101executive officer is vacated mid-term, a successor shall be appointed in the same manner as the |
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| 133 | 133 | | 102original appointment for the remainder of the term. |
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| 134 | 134 | | 103 The board may remove the chief executive officer from office, for cause, by a majority |
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| 135 | 135 | | 104vote. The reasons for removal of the chief executive officer shall be stated in writing and shall |
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| 136 | 136 | | 105include the basis for such removal. |
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| 137 | 137 | | 106 (e) The chief executive officer shall, with the approval of the board and in consultation |
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| 138 | 138 | | 107with the program administrators: (i) plan, direct, coordinate and execute administrative functions |
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| 139 | 139 | | 108in conformity with the policies and directives of the energy efficiency programs; (ii) employ |
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| 140 | 140 | | 109professional and clerical staff as necessary; (iii) report to the board on all operations under its |
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| 141 | 141 | | 110control and supervision; (iv) prepare an annual budget sufficient to pay for board activities and |
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| 142 | 142 | | 111responsibilities; (v) oversee coordination between the energy efficiency advisory council, |
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| 143 | 143 | | 112participating utilities, and the department of public utilities; and (vi) undertake any other |
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| 144 | 144 | | 113activities necessary to achieve the purposes of the programs established pursuant to this chapter. |
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| 145 | 145 | | 114 (f) The board may approve the use of funds from receipt of monies collected pursuant to |
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| 146 | 146 | | 115section 20 of this chapter to support the annual budget of the board, in addition to funds from any |
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| 147 | 147 | | 116other source and any funds appropriated therefor by the general court. The board shall not be |
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| 148 | 148 | | 117required to obtain the approval of another executive agency in connection with the development |
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| 149 | 149 | | 118and administration of its annual budget. 7 of 9 |
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| 150 | 150 | | 119 SECTION 8. Section 22 of said chapter 25 is hereby amended, in subsection (b), by |
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| 151 | 151 | | 120inserting, in the second sentence, after the word “with” the following words:- the board of the |
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| 152 | 152 | | 121commonwealth clean heating initiative, hereinafter the board, established in section 21A of this |
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| 153 | 153 | | 122chapter, and |
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| 154 | 154 | | 123 SECTION 9. Said section 22 of said chapter 25 is hereby further amended by striking |
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| 155 | 155 | | 124out subsection (d) and inserting in place thereof the following subsection:- |
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| 156 | 156 | | 125 (d) The board, electric and natural gas distribution companies and municipal aggregators |
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| 157 | 157 | | 126shall provide quarterly reports to the council on the execution of their responsibilities and the |
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| 158 | 158 | | 127implementation of their respective plans. The reports shall include a description of the board’s |
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| 159 | 159 | | 128and the program administrator's progress in implementing the plan, a summary of the savings |
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| 160 | 160 | | 129secured to date, a quantification of the degree to which the activities undertaken pursuant to each |
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| 161 | 161 | | 130plan contribute to meeting any and all greenhouse gas emission limits and sublimits imposed by |
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| 162 | 162 | | 131statute or regulation and such other information as the council shall determine. The council shall |
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| 163 | 163 | | 132provide an annual report to the department and the joint committee on telecommunications, |
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| 164 | 164 | | 133utilities and energy on the execution of responsibilities and the implementation of plans which |
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| 165 | 165 | | 134includes descriptions of the programs, expenditures, cost-effectiveness and savings and other |
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| 166 | 166 | | 135benefits during the previous year and a quantification of the degree to which the activities |
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| 167 | 167 | | 136undertaken pursuant to each plan contribute to meeting any and all greenhouse gas emission |
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| 168 | 168 | | 137limits and sublimits imposed by statute or regulation. |
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| 169 | 169 | | 138 SECTION 10. Notwithstanding any general or special law or regulation to the contrary, |
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| 170 | 170 | | 139the department of energy resources, hereinafter the department, shall conduct an analysis of |
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| 171 | 171 | | 140programs, investment plans, projects, initiatives, and funding sources offered by state 8 of 9 |
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| 172 | 172 | | 141government, federal government, local government, and for-profit and not-for-profit entities, and |
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| 173 | 173 | | 142made available in the commonwealth to promote building energy efficiency and decarbonization, |
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| 174 | 174 | | 143including the electric energy efficiency programs, gas energy efficiency programs, energy |
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| 175 | 175 | | 144efficiency investment plans, and natural gas efficiency investment plans established pursuant to |
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| 176 | 176 | | 145chapter 25 of the general laws and known collectively as Mass Save. |
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| 177 | 177 | | 146 In addition to the programs and investment plans known collectively as Mass Save, |
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| 178 | 178 | | 147additional programs, plans, projects, initiatives, and funding sources subject to the analysis shall |
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| 179 | 179 | | 148include, but not be limited to, (a) energy efficiency programs established by municipal lighting |
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| 180 | 180 | | 149plants; (b) renewable energy portfolio standards established pursuant to section 11F of chapter |
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| 181 | 181 | | 15025A of the general laws and alternative portfolio standards established pursuant to section |
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| 182 | 182 | | 15111F1/2 of chapter 25A; (c) municipal lighting plant greenhouse gas emissions standards |
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| 183 | 183 | | 152established pursuant to section 11F3/4 of chapter 25A, as amended by section 33 of chapter 8 of |
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| 184 | 184 | | 153the Acts of 2021; (d) other energy conservation, solar, and renewable and alternative energy |
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| 185 | 185 | | 154programs developed, administered, overseen or coordinated by the commonwealth; (e) other |
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| 186 | 186 | | 155relevant activities undertaken by the executive office of energy and environmental affairs, its |
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| 187 | 187 | | 156various department and bureaus, and other offices and agencies of the executive branch and |
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| 188 | 188 | | 157quasi-autonomous authorities of the commonwealth; (f) grant, loan, training, and investment |
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| 189 | 189 | | 158programs offered by the Massachusetts clean energy technology center pursuant to chapter 23J |
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| 190 | 190 | | 159of the general laws; and (g) other relevant energy efficiency and decarbonization programs, |
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| 191 | 191 | | 160regional and local planning activities, and advisory and technical support services undertaken or |
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| 192 | 192 | | 161sponsored by nonprofit and community organizations, investor-owned utilities, municipal |
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| 193 | 193 | | 162lighting plants, builders and developers, manufacturers and vendors of heating, ventilation and |
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| 194 | 194 | | 163air conditioning equipment, and vendors of oil, propane and wood products and services. 9 of 9 |
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| 195 | 195 | | 164 The purposes of the analysis shall be to improve the effectiveness of, and coordination |
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| 196 | 196 | | 165among, programs, investment plans, projects, initiatives, and funding sources; and assist |
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| 197 | 197 | | 166residents of the commonwealth and ensure compliance with the greenhouse gas emissions limits |
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| 198 | 198 | | 167and sublimits set for the commonwealth pursuant to chapter 21N of the general laws. To |
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| 199 | 199 | | 168advance these purposes, the analysis shall take note of the final report of the Massachusetts |
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| 200 | 200 | | 169Commission on Clean Heat dated November 30, 2022, and other sources; examine relevant |
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| 201 | 201 | | 170statutes, regulations, ordinances, and bylaws adopted in various federal, state, and local |
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| 202 | 202 | | 171jurisdictions; evaluate potential new organizational configurations and funding approaches; and |
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| 203 | 203 | | 172reduce any structural or inherent conflicts of interest that in the department’s judgment may |
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| 204 | 204 | | 173impede the realization of such purposes. |
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| 205 | 205 | | 174 In addition to the analysis, the department shall submit recommendations regarding |
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| 206 | 206 | | 175reorganization of the process for proposing, preparing, and administering the energy efficiency |
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| 207 | 207 | | 176programs and investment plans in the commonwealth established pursuant to chapter 25 of the |
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| 208 | 208 | | 177general laws and known collectively as Mass Save, together with any legislative or budgetary |
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| 209 | 209 | | 178recommendations that may facilitate the implementation of said recommendations, taking into |
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| 210 | 210 | | 179account all other pertinent programs, plans, projects, initiatives, and funding sources available in |
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| 211 | 211 | | 180the commonwealth to support building energy efficiency and decarbonization. |
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| 212 | 212 | | 181 The department shall present its analysis and recommendations by filing the same with |
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| 213 | 213 | | 182the clerks of the house of representatives and the senate, the house and senate committees on |
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| 214 | 214 | | 183ways and means, and the joint committee on telecommunications, utilities and energy not later |
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| 215 | 215 | | 184than July 1, 2024. |
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