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SENATE DOCKET, NO. 371 FILED ON: 1/13/2023
SENATE . . . . . . . . . . . . . . No. 2096
The Commonwealth of Massachusetts
_________________
PRESENTED BY:
Cynthia Stone Creem
_________________
To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act relative to Massachusetts' carbon dioxide removal leadership.
_______________
PETITION OF:
NAME:DISTRICT/ADDRESS :Cynthia Stone CreemNorfolk and MiddlesexJames B. EldridgeMiddlesex and Worcester2/15/2023 1 of 11
SENATE DOCKET, NO. 371 FILED ON: 1/13/2023
SENATE . . . . . . . . . . . . . . No. 2096
By Ms. Creem, a petition (accompanied by bill, Senate, No. 2096) of Cynthia Stone Creem and
James B. Eldridge for legislation relative to Massachusetts' carbon dioxide removal leadership.
Telecommunications, Utilities and Energy.
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Third General Court
(2023-2024)
_______________
An Act relative to Massachusetts' carbon dioxide removal leadership.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. Chapter 23J of the General Laws, as amended by chapter 179 of the acts of
22022, is hereby amended by inserting the following section:-
3 Section 16. (a) For the purposes of this section, the following terms shall have the
4following meanings unless the context clearly requires otherwise:
5 “Advance market commitment” means the purchase in advance of carbon dioxide
6removal.
7 "Annual removal target" means the minimum total volume of carbon dioxide removal,
8expressed in metric tons of carbon dioxide equivalent, for which the Authority will made
9advance market commitment and solicit bids in a given year, such amount to be increased by the
10portion of the annual removal target not met in the prior year. 2 of 11
11 “Center” means the Massachusetts clean energy center established in chapter 23J of the
12General Laws.
13 "Qualifying bid" means a bid fulfilling the requirements of subsection (d) of this section.
14 "Bid price" means the total price the bidder is willing to be paid in a given bid for
15providing carbon dioxide removal.
16 "Bidder" means a person, entity or entities qualified to submit a bid pursuant to the
17requirements set forth in subsection (d) of this section.
18 "Carbon dioxide equivalent'', the amount of carbon dioxide by weight that would produce
19the same global warming impact as a given weight of another greenhouse gas, based on the best
20available science, including from the Intergovernmental Panel on Climate Change.
21 "Carbon dioxide removal" means removing greenhouse gas, measured in carbon dioxide
22equivalent emissions, from the atmosphere, and durably storing it in geological, terrestrial, or
23ocean reservoirs, or in long-lived products for a minimum period of 100 years.
24 "Carbon dioxide removal process" means the physical process by which greenhouse
25gases are removed from the atmosphere and durably sequestered or stored.
26 "Carbon dioxide removal project" means a specific project that delivers the carbon
27dioxide removal described in a given bid.
28 “Director of environmental justice” means the director of environmental justice in the
29executive office of energy and environmental affairs. 3 of 11
30 "Disadvantaged communities" means communities identified by the center that bear
31disproportionate burdens from environmental pollution and from the impacts of climate change,
32and which are comprised of high concentrations of low- and moderate-income households.
33 "Durability" or "durable" means the secure sequestration of carbon dioxide equivalent in
34the geosphere, in the ocean, in long-lived products, or otherwise, measured as a unit of time.
35 “Environmental justice and community engagement report” means a form developed by
36the director of environmental justice and completed by the bidder that documents evidence that
37residents of disadvantaged communities have been consulted and afforded the opportunity to
38provide comment and suggestions concerning the proposed project. All reports submitted by
39bidders must be reviewed and approved by the director of environmental justice as a condition of
40selection. The report shall include a description and quantification, where possible, of the
41proposed carbon dioxide removal project’s effects on: (i) equity and environmental justice,
42including health and quality of life; (ii) the local ecosystem, including soil health, biodiversity,
43and water and air quality; and (iii) job creation and economic development.
44 "Greenhouse gas'', any chemical or physical substance that is emitted into the air and that
45the department of environmental protection may reasonably anticipate will cause or contribute to
46climate change including, but not limited to, carbon dioxide, methane, nitrous oxide,
47hydrofluorocarbons, perfluorocarbons and sulfur hexafluorid
48 "Life-cycle analysis" means a complete, end-to-end analysis of the greenhouse gas
49emissions resulting from a carbon dioxide removal process, including, but not limited to,
50manufacturing, transportation, utilization, sequestration and other processes occurring prior to, 4 of 11
51during, or after, the carbon dioxide removal process which are required to achieve carbon
52dioxide removal.
53 "Measurement, reporting and verification" means the verified measurement and reporting
54of carbon dioxide removal using an objective, peer-reviewed and scientifically supported
55accounting methodology and taking into account regionally appropriate sampling and data
56collection methods to quantify emissions and removals associated with the carbon dioxide
57removal process and durability of removal instead of solely model-based or statistical methods.
58 "Reverse auction" means a bidding process in which qualified bidders submit bids to
59remove and durably store a specified quantity of carbon dioxide equivalent emissions in
60exchange for payment by the state.
61 "Social cost" means a measure, in dollars, of the long-term damage done by a ton of
62carbon dioxide equivalent emissions in a given year.
63 "Ton" means a metric ton of one thousand kilograms.
64 "Total annual bid" means the total volume of carbon dioxide removal for which
65qualifying bids were submitted in a given year.
66 (b) Prior to the initiation of the reverse auction for the commonwealth’s advance market
67commitment for carbon dioxide removal services, the center shall publish a survey of carbon
68dioxide removal opportunities within the commonwealth. Such survey shall include, but shall not
69be limited to: (i) data gathered by the center pursuant to carbon dioxide removal verification as
70required by subsection (f) of this section; (ii) a review of carbon dioxide removal processes in the
71commonwealth with 100,000 metric tons or greater scale potential this decade and 100-year or 5 of 11
72greater durability, with a description for each of water and land-use requirements, life-cycle
73analysis and energy requirements, potential harms and potential co-benefits, including job
74creation or loss, industrial development, ecosystem sustainability, and advancement or
75degradation of environmental equity or social justice. Following the publication of the survey,
76the center shall conduct regional direct engagement with members of disadvantaged
77communities throughout the commonwealth in order for the center to provide information
78concerning the objectives, and intended benefits and outcomes of the carbon dioxide removal
79pilot program and enable members of the public to provide comment and suggestions related to
80the carbon dioxide removal pilot program's design, implementation and shared community
81benefits.
82 (c) Beginning in 2024, the center shall conduct an annual reverse auction for the
83commonwealth’s advance market commitment. The center shall initiate the reverse auction on
84April 1 and close the reverse auction on June 30 in each year during which a reverse auction is
85held. The center shall conduct the reverse auction subject to the following requirements:
86 (1) the center shall select qualifying bids, based on the criteria outlined in subsection (e)
87of this section, sufficient to meet the annual removal target; provided, that if the total annual bid
88is less than the annual removal target, the center shall increase the annual removal target in the
89subsequent year by the difference between the annual removal target and the total annual bid;
90and
91 (2) at least 30 percent of the annual carbon removal target shall be met by carbon dioxide
92removal projects that each deliver a maximum removal volume that does not exceed 10 percent 6 of 11
93of the annual removal target, unless the center does not receive an adequate number of qualifying
94bids proposing such projects;
95 (3) at least 25 percent of the annual removal target shall be met by carbon dioxide
96removal projects that have a minimum durability of 1,000 years; at least 50 percent of the annual
97removal target shall be met by carbon dioxide removal projects that have a minimum durability
98of 250 years; and 100 percent of the annual removal target shall be met by carbon dioxide
99removal projects that have a minimum durability of 100 years; provided, that if the center does
100not receive sufficient qualifying bids proposing carbon dioxide removal projects with 1,000- or
101250-year durability to meet the requirements of this paragraph, it may modify the requirements
102for projects with 1,000- or 250-year durability;
103 (4) selected carbon dioxide removal projects will be compensated for carbon dioxide
104removal provided over a maximum contract term of 10 years; payment shall be made on an
105annual basis and contingent upon successful, complete and verified removal of the agreed upon
106carbon dioxide from the atmosphere;
107 (5) the maximum average price per ton of carbon dioxide removal shall be 350 dollars in
1082024, and shall decrease by at least 5 percent each year, adjusted for inflation; the center shall
109not accept qualifying bids causing the average price per ton of carbon dioxide removal to exceed
110the maximum average price per ton for the year;
111 (6) during the authorized 5-year term of the pilot program, the center will make an
112advance market commitment to purchase carbon dioxide removal in the following quantities: (i)
11310,000 tons of carbon dioxide equivalent emissions in 2024; (ii) 20,000 tons of carbon dioxide
114equivalent emissions in 2025; (iii) 30,000 tons of carbon dioxide equivalent emissions in 2026; 7 of 11
115(iv) 40,000 tons of carbon dioxide equivalent emissions in 2027; and (v) 50,000 tons of carbon
116dioxide equivalent emissions in 2028;
117 (7) the center shall publicly announce the winning bids, publicly release the winning
118bidders' proposals and scorecards, and contract with the winning bidders no later than September
11930 of each year in which reverse auction is held.
120 (d) (i) Each bid submitted to the center shall contain the following information: (1) the
121legal name, address, contact information and history of prior participation in the carbon dioxide
122removal reverse auction, or other public or private-market purchases of carbon removal services,
123for each entity or person submitting a bid; (2) the total volume of carbon dioxide removal to be
124achieved pursuant to the bid; (3) when carbon dioxide removal will commence, and the delivery
125term the proposed carbon dioxide removal project; (4) a description of the carbon dioxide
126removal process and the carbon dioxide removal project; (5) a full life-cycle analysis of the
127proposed carbon dioxide removal project, which demonstrates that the project will remove
128carbon dioxide from the atmosphere and store it securely and durably in at least the quantity and
129for at least the period committed to in the bid; (6) the and area and water volume which would be
130required by the proposed carbon dioxide removal project; (7) a completed environmental justice
131and community engagement report (8) a declaration that the carbon dioxide removal project will
132not cause adverse impacts to the environment or disadvantaged communities; (9) a description of
133the measurement, reporting and verification the bidder will employ for the carbon dioxide
134removal project, from an independent third-party deemed acceptable by the center that verifies
135all requirements of this section; (10) a legally binding attestation by each bidder that the
136information provided is accurate and that all requirements of this section are met; and (11) any
137additional information the center reasonably requests to assess the bid. 8 of 11
138 (ii) All carbon dioxide removal and material operations of each proposed carbon dioxide
139removal project submitted by bidders must be located within the commonwealth or waters within
140fifty nautical miles of the commonwealth.
141 (iii) Carbon dioxide removal project proposals shall not incorporate enhanced oil
142recovery or otherwise facilitate the extraction, refinement or delivery of fossil fuel energy
143sources including petroleum, natural gas and coal, or which serve to perpetuate fossil fuel use in
144any sector of the economy in the commonwealth, the United States or globally.
145 (iv) The carbon dioxide removal project for which the bid is submitted shall be unique to
146this transaction and additional to any prior or otherwise existing or planned carbon dioxide
147removal, may not be used as part of any other private or public transaction for carbon dioxide
148removal, and shall create new and additional climate benefit, and not take credit for climate
149benefit that would occur in a no-intervention scenario.
150 (v) Carbon dioxide removal project proposals shall demonstrate the ability to commence
151carbon dioxide removal no later than 2 years following the entering into contract with the center.
152 (vi) Methods of carbon dioxide removal may include, but are not limited to: (1) terrestrial
153mineralization or enhanced rock weathering; (2) terrestrial biomass-based pathways such as
154biochar; (3) ocean-based pathways including electro-chemical alkalinity enhancement, marine
155permaculture, deep-ocean sequestration of biomass, and coastal enhanced weathering; (4)
156construction materials and products, the production of which directly contribute to the
157sequestration of carbon dioxide or other greenhouse gases, including mass timber; and (5) direct
158air capture with durable geologic sequestration, or durable sequestration in the built environment
159including in concrete. 9 of 11
160 (e) The center shall create a scorecard to evaluate the bids received based on the
161following factors: (i) the price per ton of carbon dioxide removed; (ii) the extent to which the
162project will promote equity or environmental justice within the commonwealth, including by
163generating economic benefits to one or more disadvantaged communities (iii) the conservation
164efficiency of the project in its use of water, land, and energy resources, with explicit preference
165for projects with low water, land, and energy requirements and projects that exclusively employ
166renewable energy; (iv) the number of jobs created by the project in the commonwealth; (v)
167whether the project will employ at least one bona fide labor organization that is actively engaged
168in representing employees providing necessary operations and maintenance services for the
169project; (vi) whether and to what extent the project will involve the purchase of equipment and
170supplies from businesses located in the commonwealth; (vii) whether the project will generate
171significant agricultural, ecological, or ecosystem co-benefits or harms; (viii) the scale potential of
172the carbon dioxide removal process; (ix) the durability of the proposed carbon dioxide removal
173process; and (x) the delivery term for the proposed project, with a preference for carbon dioxide
174removal that is delivered more quickly.
175 (f) The center shall require each winning bidder to provide periodic verification from an
176independent third party deemed satisfactory by the center that the volume of carbon dioxide
177removed from the atmosphere and stored meets or exceeds the amount described in the bid and
178that there has been no carbon dioxide equivalent leakage and no reduction in carbon dioxide
179removal durability.
180 A winning bidder, its successors, assigns, and transferees of responsibilities, liabilities,
181rights or economic benefits of the carbon dioxide removal, shall be liable for the social cost, as 10 of 11
182determined by the center, of any carbon dioxide equivalent leakage or reduction in carbon
183dioxide removal durability.
184 During the project contract period, carbon dioxide removal projects may be subject to
185audit and review by the director of environmental justice to determine whether the winning
186bidder is fulfilling and complying with all terms and stipulations in the environmental justice and
187community engagement report approved by the director of environmental justice.
188 Upon a failure by the winning bidder to provide the verification required by the center or
189to fulfill or comply with all terms and stipulations in the environmental justice and community
190engagement report approved by the director of environmental justice, the center may take action
191to penalize the winning bidder, including, but not limited to: (i) termination of the contract; (ii)
192levying fines or penalties against the bidder to recoup funds paid pursuant to the bid; or (iii)
193rejection of future bids by the bidder.
194 (g) Nothing in this section shall relieve any person, entity, or public agency of
195compliance with other applicable federal, state, or local laws or regulations, including state air
196and water quality requirements, and other requirements for protecting public health or the
197environment.
198 (h) If any word, phrase, clause, sentence, paragraph, section, or part of this section shall
199be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect,
200impair, or invalidate the remainder thereof, but shall be confined in its operation to the word,
201phrase, clause, sentence, paragraph, section, or part thereof directly involved in the controversy
202in which such judgment shall have been rendered. 11 of 11
203 (i) Funding for the administration of this section and for the authorized five-year reverse
204auction period, beginning in 2024 and ending in 2028, shall be derived entirely from state
205revenues that have been accrued in preceding tax years from certain reinstated taxes on sales of
206aircraft or sales of repair or replacement parts exclusively for use in aircraft or in the significant
207overhauling or rebuilding of aircraft or aircraft parts or components on a factory basis.
208 (j) The center shall promulgate regulations for the administration and enforcement of this
209section.
210 SECTION 2. Section 6 of said Chapter 64H of the General Laws, as appearing in the
2112020 Official Edition, is hereby amended by striking out subsections (uu) and (vv).