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| 2 | 2 | | SENATE DOCKET, NO. 1862 FILED ON: 1/20/2023 |
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| 3 | 3 | | SENATE . . . . . . . . . . . . . . No. 675 |
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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 | | Paul W. Mark |
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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 creating a climate bank in Massachusetts. |
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| 13 | 13 | | _______________ |
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| 14 | 14 | | PETITION OF: |
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| 15 | 15 | | NAME:DISTRICT/ADDRESS :Paul W. MarkBerkshire, Hampden, Franklin and |
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| 16 | 16 | | Hampshire |
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| 17 | 17 | | Susannah M. Whipps2nd Franklin2/13/2023Joanne M. ComerfordHampshire, Franklin and Worcester2/13/2023John J. CroninWorcester and Middlesex2/13/2023Jack Patrick Lewis7th Middlesex2/13/2023James K. Hawkins2nd Bristol2/13/2023Thomas M. Stanley9th Middlesex2/13/2023Vanna Howard17th Middlesex2/16/2023James B. EldridgeMiddlesex and Worcester2/21/2023Steven Owens29th Middlesex2/21/2023John Barrett, III1st Berkshire2/21/2023Rebecca L. RauschNorfolk, Worcester and Middlesex2/23/2023Patricia D. JehlenSecond Middlesex3/6/2023 1 of 15 |
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| 18 | 18 | | SENATE DOCKET, NO. 1862 FILED ON: 1/20/2023 |
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| 19 | 19 | | SENATE . . . . . . . . . . . . . . No. 675 |
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| 20 | 20 | | By Mr. Mark, a petition (accompanied by bill, Senate, No. 675) of Paul W. Mark, Susannah M. |
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| 21 | 21 | | Whipps, Joanne M. Comerford, John J. Cronin and other members of the General Court for |
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| 22 | 22 | | legislation to create a climate bank in Massachusetts. Financial Services. |
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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 creating a climate bank in Massachusetts. |
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| 29 | 29 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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| 30 | 30 | | of the same, as follows: |
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| 31 | 31 | | 1 The General Laws are hereby amended by inserting after section 14 of chapter 23J the |
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| 32 | 32 | | 2following new section:- |
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| 33 | 33 | | 3 Section 15. |
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| 34 | 34 | | 4 (a) As used in this chapter the following words shall have the following meanings unless |
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| 35 | 35 | | 5the context clearly requires otherwise:- |
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| 36 | 36 | | 6 “Bank”, the Massachusetts Climate Bank established pursuant to subsection (b). |
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| 37 | 37 | | 7 “Board”, the Massachusetts Climate Board established pursuant to subsection (c). |
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| 38 | 38 | | 8 “Bonds” or “notes”, such bonds and notes as are issued by the bank pursuant to this |
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| 39 | 39 | | 9chapter. 2 of 15 |
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| 40 | 40 | | 10 “Climate and clean energy innovations”, all innovations, or uses of technologies, |
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| 41 | 41 | | 11services, and solutions, or innovative financing to address climate resiliency, mitigate |
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| 42 | 42 | | 12greenhouse gas emissions or support clean energy. This could include greenhouse gas mitigation |
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| 43 | 43 | | 13through decarbonization or deployment of climate and clean energy innovations to advance |
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| 44 | 44 | | 14compliance with the statewide greenhouse gas emission limits and sub-limits established |
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| 45 | 45 | | 15pursuant to chapter 21N. |
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| 46 | 46 | | 16 “Center'', the Massachusetts clean technology energy center established by chapter 23J |
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| 47 | 47 | | 17section 2. |
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| 48 | 48 | | 18 “Secretary”, the secretary of the executive office of energy and environmental affairs. |
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| 49 | 49 | | 19 (b) There shall be established and placed within the center a body politic and corporate to |
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| 50 | 50 | | 20be known as the Massachusetts Climate Bank. The bank is hereby constituted a public |
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| 51 | 51 | | 21instrumentality and the exercise by the bank of the powers conferred by this chapter shall be |
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| 52 | 52 | | 22considered to be the performance of an essential governmental function. |
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| 53 | 53 | | 23 The bank is hereby placed in the center but shall not be subject to the supervision or |
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| 54 | 54 | | 24control of any board, bureau, department or other center of the commonwealth, except as |
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| 55 | 55 | | 25specifically provided in this chapter. |
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| 56 | 56 | | 26 (c) The bank shall be governed by the board and shall continue as long as it shall have |
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| 57 | 57 | | 27bonds or notes or guarantee commitments outstanding and until its existence is terminated by |
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| 58 | 58 | | 28law. Upon the termination of the existence of the bank, all right, title and interest in and to all of |
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| 59 | 59 | | 29its assets and all of its obligations, duties, covenants, agreements and obligations shall vest in and |
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| 60 | 60 | | 30be possessed, performed and assumed by the center. 3 of 15 |
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| 61 | 61 | | 31 (d) It shall be the duty and purpose of the bank to: (1) evaluate, coordinate and facilitate |
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| 62 | 62 | | 32innovative financing solutions for climate and clean energy innovations in the public, private, |
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| 63 | 63 | | 33and non-profit sectors throughout the commonwealth and in line with achieving the |
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| 64 | 64 | | 34commonwealth’s greenhouse gas emissions limits and sub-limits pursuant to chapter 21N; (2) |
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| 65 | 65 | | 35provide loans including loan refinancing, loan guarantees, credit enhancements, debt |
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| 66 | 66 | | 36securitization, insurance, portfolio insurance, and other forms of financing support, technical |
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| 67 | 67 | | 37assistance or risk management to qualified climate and clean energy innovations; (3) foster the |
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| 68 | 68 | | 38development and consistent application of transparent underwriting standards, standard |
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| 69 | 69 | | 39contractual terms, and measurement and verification protocols for qualified climate and clean |
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| 70 | 70 | | 40energy innovations; (4) ease the economic effects of transitioning from a carbon-based economy |
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| 71 | 71 | | 41to a clean energy economy; (5) facilitate job creation through the construction and operation of |
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| 72 | 72 | | 42climate and clean energy innovations; (6) facilitate and accelerate the deployment of climate and |
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| 73 | 73 | | 43clean energy innovations and promote climate resilience in disadvantaged and low-income |
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| 74 | 74 | | 44communities; and (7) work to eliminate the use of fossil fuels and carbon emitting fuels |
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| 75 | 75 | | 45throughout the commonwealth and across all sectors. |
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| 76 | 76 | | 46 (e) The bank shall be governed, and its corporate powers exercised by a board of |
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| 77 | 77 | | 47directors known as the Massachusetts Climate Finance Board. The board shall consist of 11 |
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| 78 | 78 | | 48members, 1 of whom shall be the commissioner of banks, who shall serve ex officio, or her |
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| 79 | 79 | | 49designee, 1 of whom shall be the secretary of energy and environmental affairs, who shall serve |
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| 80 | 80 | | 50ex officio, or her designee, 1 of whom shall be the executive director of the center, who shall |
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| 81 | 81 | | 51serve ex officio, and 8 members appointed by the governor, 2 of whom shall be experienced in |
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| 82 | 82 | | 52the field of evaluating and underwriting sustainability-focused (Environmental, Social and |
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| 83 | 83 | | 53Governance) public or private finance transactions, 1 of whom shall be a historically under- 4 of 15 |
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| 84 | 84 | | 54represented group (women, or minority) with experience in the field of banking, public or private |
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| 85 | 85 | | 55finance transactions selected from a list of 3 nominees submitted by the president of the senate, 1 |
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| 86 | 86 | | 56of whom shall have at least 10 years’ experience in climate impact and resiliency including land, |
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| 87 | 87 | | 57water, or air issues, 1 of whom shall be a technical expert with at least 10 years’ experience in |
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| 88 | 88 | | 58the field of the design or construction of high-performance buildings, 1 of whom has expertise in |
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| 89 | 89 | | 59sustainability (Environmental, Social and Governance) investment measurement and reporting |
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| 90 | 90 | | 60selected from a list of 3 nominees submitted by the speaker of the house of representatives, 1 of |
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| 91 | 91 | | 61whom shall be the leader of a community-based banking organization selected from a list of 3 |
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| 92 | 92 | | 62nominees submitted by the president of the senate, and 1 of whom shall be a representative of |
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| 93 | 93 | | 63historically climate-impacted rural or coastal towns or municipalities selected from a list of 3 |
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| 94 | 94 | | 64nominees submitted by the speaker of the house of representatives. Each of the 8 directors |
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| 95 | 95 | | 65appointed by the governor shall serve for a term of 3 years, potentially extendable by another 2 |
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| 96 | 96 | | 66years with board consent. The executive director of the center shall serve as the chairperson of |
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| 97 | 97 | | 67the board and board members shall annually elect a vice-chairperson of the board. Each director |
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| 98 | 98 | | 68shall serve without compensation but may be reimbursed for actual and necessary expenses |
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| 99 | 99 | | 69reasonably incurred in the performance of their duties, including reimbursement for reasonable |
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| 100 | 100 | | 70travel. Any person appointed to fill a vacancy in the office of a member of the board shall be |
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| 101 | 101 | | 71appointed in a like manner and shall serve for only the unexpired term of such former member. |
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| 102 | 102 | | 72Any director shall be eligible for reappointment. Any director may be removed from his |
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| 103 | 103 | | 73appointment by the governor for cause. |
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| 104 | 104 | | 74 (f) A majority of directors shall constitute a quorum and the affirmative vote of a |
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| 105 | 105 | | 75majority of directors present at a duly called meeting, if a quorum is present, shall be necessary |
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| 106 | 106 | | 76for any action to be taken by the board. Any action required or permitted to be taken at a meeting 5 of 15 |
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| 107 | 107 | | 77of the directors may be taken without a meeting if all of the directors’ consent in writing to such |
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| 108 | 108 | | 78action and such written consent is filed with the records of the minutes of the meetings of the |
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| 109 | 109 | | 79board. Such consent shall be treated for all purposes as a vote at a meeting. Each director shall |
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| 110 | 110 | | 80make full disclosure, under subsection (g), of his or her financial interest, if any, in matters |
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| 111 | 111 | | 81before the board by notifying the state ethics commission, in writing, and shall abstain from |
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| 112 | 112 | | 82voting on any matter before the board in which he or she has a financial interest, unless |
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| 113 | 113 | | 83otherwise permissible under chapter 268A. |
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| 114 | 114 | | 84 (g) Chapters 268A and 268B shall apply to all ex-officio directors of the bank. Said |
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| 115 | 115 | | 85chapters 268A and 268B shall apply to all other directors, except that the bank may purchase |
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| 116 | 116 | | 86from, sell to, borrow from, loan to, contract with or otherwise deal with any person in which any |
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| 117 | 117 | | 87director of the bank is in any way interested or involved; provided, however, that such interest or |
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| 118 | 118 | | 88involvement is disclosed in advance to the members of the board and recorded in the minutes of |
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| 119 | 119 | | 89the board; and provided, further, that no director having such an interest or involvement may |
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| 120 | 120 | | 90vote on any matter in which he has a financial interest, unless otherwise permissible under |
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| 121 | 121 | | 91chapter 268A. Employment by the commonwealth or service in any agency thereof shall not be |
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| 122 | 122 | | 92deemed to be such an interest or involvement. |
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| 123 | 123 | | 93 (h) The board shall have the power to appoint and employ an executive director who shall |
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| 124 | 124 | | 94be the chief executive, administrator and operational officer of the bank and shall direct and |
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| 125 | 125 | | 95supervise the administrative affairs and the general management of the bank. The executive |
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| 126 | 126 | | 96director of the bank shall report to and be under the general supervision of the executive director |
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| 127 | 127 | | 97of the center. The executive director of the bank shall appoint and the bank shall employ a chief |
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| 128 | 128 | | 98financial and accounting officer and may, subject to the general supervision of the board and the |
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| 129 | 129 | | 99executive director of the center, employ other employees, consultants, agents, including legal 6 of 15 |
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| 130 | 130 | | 100counsel and advisors, and shall attend meetings of the board. Officers and employees of the |
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| 131 | 131 | | 101center may also serve as officers and employees of the bank. No funds shall be loaned, |
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| 132 | 132 | | 102transferred or otherwise dispersed by the bank without the approval of the board and the |
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| 133 | 133 | | 103signature of an executive of the bank and in accordance with policies and procedures approved |
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| 134 | 134 | | 104by the board. |
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| 135 | 135 | | 105 (i) The board shall elect a treasurer and a secretary. The secretary of the board shall keep |
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| 136 | 136 | | 106a record of the proceedings of the board and shall be custodian of all books, documents, and |
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| 137 | 137 | | 107papers filed by the board and of its minute book and seal. The secretary of the board shall cause |
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| 138 | 138 | | 108copies to be made of all minutes and other records and documents of the bank and shall certify |
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| 139 | 139 | | 109that such copies are true copies, and all persons dealing with the bank may rely upon such |
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| 140 | 140 | | 110certification. |
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| 141 | 141 | | 111 (j) All officers and employees of the bank having access to its cash or negotiable |
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| 142 | 142 | | 112securities shall give bond to the bank at its expense in such amounts and with such surety as the |
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| 143 | 143 | | 113board may prescribe. The persons required to give bond may be included in one or more blanket |
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| 144 | 144 | | 114or scheduled bonds. |
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| 145 | 145 | | 115 (k) Board members, officers and employees of the bank shall not be liable to the |
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| 146 | 146 | | 116commonwealth, to the bank or to any other person as a result of their activities, whether |
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| 147 | 147 | | 117ministerial or discretionary, as such board members, employees or officers, except for willful |
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| 148 | 148 | | 118dishonesty or intentional violations of law. Neither members of the board nor any person |
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| 149 | 149 | | 119executing bonds or policies of insurance shall be liable personally thereon or be subject to any |
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| 150 | 150 | | 120personal liability or accountability by reason of the issuance thereof. The board shall purchase 7 of 15 |
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| 151 | 151 | | 121liability insurance for board members, officers and employees of the bank and may indemnify |
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| 152 | 152 | | 122such persons against claims of others. |
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| 153 | 153 | | 123 (l) An action of the bank may take effect immediately and need not be published or |
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| 154 | 154 | | 124posted unless otherwise provided by law. Meetings of the board shall be subject to section 18-25 |
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| 155 | 155 | | 125of chapter 30A; but said section 18-25 shall not apply to any meeting of members of the bank |
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| 156 | 156 | | 126serving ex officio in the exercise of their duties as officers of the commonwealth so long as no |
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| 157 | 157 | | 127matters relating to the official business of the bank are discussed and decided at the meeting. The |
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| 158 | 158 | | 128bank shall be subject to all other provisions of said chapter 30A, and records pertaining to the |
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| 159 | 159 | | 129administration of the center shall be subject to section 42 of chapter 30 and section 10 of chapter |
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| 160 | 160 | | 13066. All monies of the bank shall be considered to be public funds for purposes of chapter 12A. |
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| 161 | 161 | | 131The operations of the center shall be subject to chapters 268A and 268B and all other operational |
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| 162 | 162 | | 132or administrative standards or requirements to the same extent as the office of state treasurer. |
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| 163 | 163 | | 133 (m) Any documentary materials or data whatsoever made or received by a member or |
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| 164 | 164 | | 134employee of the bank and consisting of, or to the extent that such materials or data consist of, |
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| 165 | 165 | | 135trade secrets or commercial or financial information regarding the operation of any business |
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| 166 | 166 | | 136conducted by an applicant for any form of assistance that the center is empowered to render or |
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| 167 | 167 | | 137regarding the competitive position of such applicant in a particular field of endeavor, shall not be |
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| 168 | 168 | | 138deemed public records of the center and shall not be subject to section 10 of chapter 66. Any |
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| 169 | 169 | | 139discussion or consideration of such trade secrets or commercial or financial information may be |
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| 170 | 170 | | 140held by the board in executive sessions closed to the public, notwithstanding section 11A1/2 of |
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| 171 | 171 | | 141chapter 30A, but the purpose of any such executive session shall be set forth in the official |
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| 172 | 172 | | 142minutes of the center and no business that is not directly related to such purpose shall be |
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| 173 | 173 | | 143transacted nor shall any vote be taken during such executive session. 8 of 15 |
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| 174 | 174 | | 144 (n) In furtherance of the public purposes set forth in subsection (d), the bank may expend |
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| 175 | 175 | | 145money to: (i) make grants, contracts, loans, equity investments, energy production credits, ensure |
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| 176 | 176 | | 146climate mitigation covenants or green covenants, bill credits or rebates or make other forms of |
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| 177 | 177 | | 147financial or technical assistance or instruments available to customers; (ii) provide financial or |
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| 178 | 178 | | 148debt service obligation assistance; or (iii) take any other action, in such forms, under such terms |
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| 179 | 179 | | 149and conditions and under such selection procedures as the bank deems appropriate and otherwise |
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| 180 | 180 | | 150in a manner consistent with good business practices; provided that the bank shall endeavor to |
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| 181 | 181 | | 151leverage the full range of resources, expertise and participation of other state and federal |
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| 182 | 182 | | 152agencies and instrumentalities in the design and implementation of programs conducted pursuant |
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| 183 | 183 | | 153to this section. |
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| 184 | 184 | | 154 (o) The bank shall have all powers necessary and convenient to carry out and effectuate |
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| 185 | 185 | | 155its purposes including, without limiting the generality of the foregoing, the power to: |
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| 186 | 186 | | 156 (1) adopt and amend by-laws, regulations and procedures for the governance of its affairs |
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| 187 | 187 | | 157and the conduct of its business for the administration and enforcement of this chapter |
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| 188 | 188 | | 158notwithstanding chapter 30A; |
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| 189 | 189 | | 159 (2) exercise any powers necessary for the commonwealth to be in compliance with |
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| 190 | 190 | | 160federal law; |
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| 191 | 191 | | 161 (3) maintain offices at places within the commonwealth and conduct meetings of the |
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| 192 | 192 | | 162bank in accordance with its by-laws; |
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| 193 | 193 | | 163 (4) promote economy and efficiency and leverage federal funding and private sector |
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| 194 | 194 | | 164investment; 9 of 15 |
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| 195 | 195 | | 165 (5) establish criteria and establish procedures for project selection for use in selecting |
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| 196 | 196 | | 166qualifying climate and clean energy innovations to receive funds, provided not less than 20% of |
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| 197 | 197 | | 167such funds are designated for rural and coastal communities; |
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| 198 | 198 | | 168 (6) enter into agreements and transactions with federal, state and municipal agencies and |
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| 199 | 199 | | 169other public institutions and private individuals, partnerships, firms, corporations, associations |
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| 200 | 200 | | 170and other entities on behalf of the bank; |
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| 201 | 201 | | 171 (7) institute and administer separate accounts and funds for the purposes of making |
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| 202 | 202 | | 172allocations, grants or loans to qualifying climate and clean energy innovations to receive funds |
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| 203 | 203 | | 173pursuant to section 5; |
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| 204 | 204 | | 174 (8) sue and be sued in its own name, plead and be impleaded; |
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| 205 | 205 | | 175 (9) issue bonds, notes and other evidences of indebtedness as provided in this chapter; |
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| 206 | 206 | | 176 (10) lease, assign, sell, exchange, transfer, convey, grant, pledge, or mortgage assets, title |
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| 207 | 207 | | 177to which has been acquired in any manner; |
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| 208 | 208 | | 178 (11) acquire real and personal property, or any interest in real or personal property, by |
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| 209 | 209 | | 179gift, purchase, transfer, foreclosure, lease, or otherwise, including rights or easements; hold, sell, |
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| 210 | 210 | | 180assign, lease, encumber, mortgage or otherwise dispose of any real or personal property, or any |
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| 211 | 211 | | 181interest therein, or mortgage any interest owned by it or under its control, custody or in its |
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| 212 | 212 | | 182possession; release or relinquish any right, title, claim, lien, interest, easement or demand |
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| 213 | 213 | | 183however acquired, including any equity or right of redemption in property foreclosed by it; take |
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| 214 | 214 | | 184assignments of leases and rentals, proceed with foreclosure actions or take any other actions |
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| 215 | 215 | | 185necessary or incidental to the performance of its corporate purposes including, but not limited to, 10 of 15 |
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| 216 | 216 | | 186making or delegating to a lessee or a licensee to make improvements or alterations to the real |
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| 217 | 217 | | 187property of the bank, or any interest thereon or engage in construction on or renovation at such |
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| 218 | 218 | | 188property or interest; |
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| 219 | 219 | | 189 (12) invest funds held in reserves or sinking funds or funds not required for immediate |
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| 220 | 220 | | 190disbursement, in such investments as may be provided in a financing document relating to the |
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| 221 | 221 | | 191use of such funds, or, if not so provided, as the board may determine; |
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| 222 | 222 | | 192 (13) appear on its own behalf before boards, commissions, departments or other agencies |
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| 223 | 223 | | 193of municipal, state or federal government; |
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| 224 | 224 | | 194 (14) obtain insurance; |
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| 225 | 225 | | 195 (15) apply for and accept subventions, grants, loans, advances and contributions from any |
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| 226 | 226 | | 196source of money, property, labor or other things of value, to be held, used and applied for its |
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| 227 | 227 | | 197corporate purposes; provided, however, that the center shall not accept funding from any source, |
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| 228 | 228 | | 198including any federal agency, if the receipt of said funding would limit the bank's ability to |
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| 229 | 229 | | 199promote its public purposes; and provided further, that all such funds shall be placed, in their |
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| 230 | 230 | | 200entirety, in the bank; |
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| 231 | 231 | | 201 (16) provide and pay for such advisory services and technical assistance as may be |
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| 232 | 232 | | 202necessary or desired to carry out the purposes of this chapter; |
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| 233 | 233 | | 203 (17) establish and collect such fees and charges as the bank without further appropriation |
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| 234 | 234 | | 204shall determine to be reasonable, and receive and apply revenues from fees and charges to the |
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| 235 | 235 | | 205purposes of the bank or allotment by the commonwealth or any political subdivision thereof; |
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| 236 | 236 | | 206provided, however, that all said revenues shall be placed, in their entirety, in the bank; 11 of 15 |
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| 237 | 237 | | 207 (18) make loans to any person for the acquisition, construction, alteration or any |
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| 238 | 238 | | 208combination thereof, or other financing of a project including, but not limited to, loans to lending |
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| 239 | 239 | | 209institutions under terms and conditions requiring the proceeds of such loans to be used by such |
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| 240 | 240 | | 210lending institutions for the making of loans to users for qualified projects; |
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| 241 | 241 | | 211 (19) disburse, appropriate, grant, loan or allocate funds for the purposes of investing in |
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| 242 | 242 | | 212climate and clean energy as directed in this chapter; |
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| 243 | 243 | | 213 (20) provide assistance to local entities and authorities, public bodies and private |
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| 244 | 244 | | 214corporations for the purposes of maximizing opportunities for expanding climate and clean |
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| 245 | 245 | | 215energy innovations, attracting new climate and clean energy entities and advanced technology |
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| 246 | 246 | | 216investments, fostering new innovative research and creating new manufacturing and |
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| 247 | 247 | | 217development initiatives in the commonwealth; |
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| 248 | 248 | | 218 (21) prepare, publish and distribute, with or without charge, as the bank may determine, |
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| 249 | 249 | | 219such studies, reports and bulletins and other material as the bank deems appropriate; |
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| 250 | 250 | | 220 (22) exercise any other powers of a corporation organized under chapter 156B; |
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| 251 | 251 | | 221 (23) engage accountants, architects, attorneys, engineers, planners, real estate experts and |
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| 252 | 252 | | 222other consultants as may be necessary in its judgment to carry out the purposes of this section |
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| 253 | 253 | | 223and to fix their compensation; |
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| 254 | 254 | | 224 (24) take any actions necessary or convenient to the exercise of any power or the |
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| 255 | 255 | | 225discharge of any duty provided for by this section; and 12 of 15 |
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| 256 | 256 | | 226 (25) enter into agreements or other transactions with any person, including without |
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| 257 | 257 | | 227limitation any public entity or other governmental instrumentality or agency in connection with |
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| 258 | 258 | | 228its powers and duties under this section. |
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| 259 | 259 | | 229 Irrespective of the above powers, the bank may not invest in or hold common stock or |
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| 260 | 260 | | 230another equity investment in natural gas and utility scale biomass projects. |
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| 261 | 261 | | 231 (p) The bank may set up and maintain such separate funds and accounts as are necessary |
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| 262 | 262 | | 232to provide and direct funding to qualifying climate and clean energy innovations. Such funds or |
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| 263 | 263 | | 233accounts shall be credited with any appropriations authorized by the general court, bond or note |
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| 264 | 264 | | 234proceeds, grants, gifts, donations, bequests or other monies received in accordance with the law. |
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| 265 | 265 | | 235The bank may make loans from such funds or accounts. |
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| 266 | 266 | | 236 (q) The bank may issue and sell bonds or notes of the bank for the purpose of providing |
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| 267 | 267 | | 237funds to finance qualifying climate and clean energy innovations. Any bond or note issued under |
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| 268 | 268 | | 238this section: (1) shall constitute the corporate obligation of the bank; (2) shall not constitute a |
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| 269 | 269 | | 239debt of the commonwealth within the meaning or application of the constitution of the |
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| 270 | 270 | | 240commonwealth; and (3) shall be payable solely as to both principal and interest from (i) the |
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| 271 | 271 | | 241proceeds of bonds or notes, if any; (ii) investment earnings on the proceeds of bonds or notes; or |
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| 272 | 272 | | 242(iii) other funds available to the bank for such purpose. |
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| 273 | 273 | | 243 (r) The board shall develop a comprehensive application process by which persons may |
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| 274 | 274 | | 244submit plans for climate and energy innovations technologies for review and approval by the |
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| 275 | 275 | | 245bank. An approved climate and clean energy innovation technology plan shall be considered a |
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| 276 | 276 | | 246qualifying plan. The bank shall enter into funding agreements with the proponents of such 13 of 15 |
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| 277 | 277 | | 247qualifying plans, which shall detail the terms of a disbursement of funds from the bank for the |
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| 278 | 278 | | 248plan and specific terms for the repayment or recoupment of funds. |
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| 279 | 279 | | 249 (s) The board shall adopt policies and procedures as necessary to implement this chapter. |
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| 280 | 280 | | 250 (t) Within 180 days of enactment, the board shall establish bylaws, policies, and |
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| 281 | 281 | | 251procedures governing the operations of the bank not addressed specifically by the legislation. |
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| 282 | 282 | | 252 (u) In addition to its purposes as defined in section (d), the bank is directed to create a |
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| 283 | 283 | | 253public sustainability benefit policy to fulfill the purpose of the bank as defined by section (d). |
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| 284 | 284 | | 254The board shall adopt a written public sustainability benefit policy that includes reporting |
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| 285 | 285 | | 255metrics as well as procedures. The board shall file a copy of that policy with the governor, the |
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| 286 | 286 | | 256comptroller, the clerks of the house of representatives and senate, and the house and senate |
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| 287 | 287 | | 257chairs of the joint committee on telecommunications, utilities and energy, within 30 days after its |
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| 288 | 288 | | 258adoption. Whenever a board changes its public sustainability benefit policy, it shall file a copy of |
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| 289 | 289 | | 259the new policy with the governor, the comptroller, the clerks of the house of representatives and |
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| 290 | 290 | | 260senate, and the house and senate chairs of the joint committee on telecommunications, utilities |
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| 291 | 291 | | 261and energy. |
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| 292 | 292 | | 262 The public sustainability benefit policy shall include a statement that material, relevant, |
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| 293 | 293 | | 263and decision-useful sustainability factors related to the goals of the bank have been or are |
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| 294 | 294 | | 264regularly considered by the bank, within the bounds of financial and fiduciary prudence, in |
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| 295 | 295 | | 265evaluating investment decisions. Such factors will be derived from industry accepted public |
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| 296 | 296 | | 266sustainability benefit guidelines such as the United Nations Sustainable Development Goals and |
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| 297 | 297 | | 267the Sustainability Accounting Standards Board (SASB) standards for impact. 14 of 15 |
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| 298 | 298 | | 268 (v) The books and records of the bank shall be subject to an audit by the state auditor, in |
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| 299 | 299 | | 269accordance with generally accepted government auditing standards, as often as the state auditor |
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| 300 | 300 | | 270determines is necessary. |
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| 301 | 301 | | 271 (w) The bank shall annually report to the governor, the comptroller, the clerks of the |
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| 302 | 302 | | 272house of representatives and senate, and the chairs of the joint committee on |
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| 303 | 303 | | 273telecommunications, utilities and energy, on the financial condition and performance of the bank |
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| 304 | 304 | | 274and provide an analysis of the bank's effect on the State to ensure that it is consistent with the |
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| 305 | 305 | | 275bank's purposes set forth in section (b), particularly the bank's effect on the public sustainability |
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| 306 | 306 | | 276benefit goals derived from goals of the bank. |
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| 307 | 307 | | 277 (x) Funding for the bank in any single fiscal year shall be available, without the need for |
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| 308 | 308 | | 278further appropriation, in a total amount of not less than $10,000,000 from: (1) money generated |
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| 309 | 309 | | 279by all cap and trade pollution control programs; (2) amounts from alternative compliance |
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| 310 | 310 | | 280payments established and administered under 225 CMR 14.00 adopted under chapter 25A |
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| 311 | 311 | | 281section 11F; and (3) other funds that the secretary may provide through fees from enforcement of |
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| 312 | 312 | | 282market-based compliance mechanisms under chapter 21N, the Climate Protection and Green |
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| 313 | 313 | | 283Economy Act. Funds collected under this section shall be deposited into the bank for the purpose |
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| 314 | 314 | | 284of carrying out this chapter. Any unexpended funds at the end of the fiscal year shall not revert to |
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| 315 | 315 | | 285the General Fund and shall be carried over from year to year and may be expended in subsequent |
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| 316 | 316 | | 286years without appropriation. |
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| 317 | 317 | | 287 (y) The bank may also accept deposits of government assets and funds from any state |
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| 318 | 318 | | 288public institution. The bank may pay interest on deposits of public funds and may offer other |
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| 319 | 319 | | 289financial products to the state treasurer and other public institutions. 15 of 15 |
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| 320 | 320 | | 290 (z) By request of the governor, the state treasurer may also issue and sell up to |
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| 321 | 321 | | 291$750,000,000 in bonds within a given fiscal year to capitalize the bank. |
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