Massachusetts Senate Bill S2166

Massachusetts 2023-2024 Regular Session

• Introduced: 2/16/23
• Refer: 2/16/23

Caption

Relative to local energy investment and infrastructure modernization

Impact

If enacted, S2166 would require electric distribution companies to prepare Grid Modernization Plans every five years, which must address locational benefits and costs related to local energy resources. This could significantly impact how local energy resources are utilized and integrated into the overall energy supply. The Department of Energy Resources (DOER) is tasked with developing benefit-cost analysis frameworks to assess both Infrastructure Resource Facilities and Local Energy Resource Alternatives. This analysis will involve a comparison of costs and benefits, influencing the decision-making processes regarding energy investments and constructions.

Summary

Senate Bill S2166 seeks to amend Chapter 164 of the General Laws in Massachusetts by introducing measures focused on modernizing the state's energy infrastructure and promoting local energy investments. The bill establishes definitions relevant to local energy resources, including renewable generation facilities, energy efficiency, and demand response technologies. The aim is to facilitate a more integrated approach to energy resources that align with local needs and reduce reliance on centralized energy infrastructures. By mandating electric distribution companies to engage in comprehensive grid modernization planning, the bill promotes a systematic approach to improving local energy supply systems.

Contention

Notable points of contention surrounding S2166 may arise from how energy companies are incentivized to develop local resources versus traditional infrastructural projects. Opponents could argue that the emphasis on local energy resources may complicate existing infrastructure plans while supporters might claim that it promotes innovation and community involvement in energy decisions. The potential for discrepancies in how costs are allocated across the region also raises concerns regarding fairness for all ratepayers. Thus, there is a significant focus on ensuring that the transition to local energy resource reliance does not disadvantage certain communities economically.