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HOUSE DOCKET, NO. 3369 FILED ON: 1/17/2025
HOUSE . . . . . . . . . . . . . . . No. 1014
The Commonwealth of Massachusetts
_________________
PRESENTED BY:
Steven Owens and Jack Patrick Lewis
_________________
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 establishing a climate change superfund.
_______________
PETITION OF:
NAME:DISTRICT/ADDRESS :DATE ADDED:Steven Owens29th Middlesex1/17/2025Danillo A. Sena37th Middlesex2/4/2025Carmine Lawrence Gentile13th Middlesex2/7/2025Samantha Montaño15th Suffolk2/7/2025Rodney M. Elliott16th Middlesex2/7/2025Erika Uyterhoeven27th Middlesex2/7/2025Mike Connolly26th Middlesex2/9/2025Tara T. Hong18th Middlesex2/11/2025Lindsay N. Sabadosa1st Hampshire2/11/2025David Paul Linsky5th Middlesex2/11/2025James C. Arena-DeRosa8th Middlesex2/20/2025Manny Cruz7th Essex3/10/2025Mindy Domb3rd Hampshire2/12/2025Chynah Tyler7th Suffolk2/18/2025Paul McMurtry11th Norfolk2/25/2025 1 of 16
HOUSE DOCKET, NO. 3369 FILED ON: 1/17/2025
HOUSE . . . . . . . . . . . . . . . No. 1014
By Representatives Owens of Watertown and Lewis of Framingham, a petition (accompanied by
bill, House, No. 1014) of Steven Owens, Danillo A. Sena and others for legislation to finance
climate adaptation projects. Environment and Natural Resources.
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Fourth General Court
(2025-2026)
_______________
An Act establishing a climate change superfund.
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. The General Laws are hereby amended by inserting after Chapter 21O the
2following chapter:
3 CHAPTER 21P
4 CLIMATE CHANGE ADAPTATION COST RECOVERY ACT
5 Section 1. Definitions.
6 For purposes of this chapter, the following terms shall have the following meanings
7unless the context clearly requires otherwise:
8 "Applicable payment date", July first of the calendar year following the year in which this
9chapter is enacted into law. 2 of 16
10 "Climate change adaptation project", a project designed to avoid, moderate, repair or
11adapt to negative impacts of climate change or to assist communities, households and businesses
12in preparing for future climate change-driven disruptions. Such projects may include but are not
13limited to upgrading storm water drainage systems; making defensive upgrades to roads, bridges,
14subways, and transit systems; preparing for and recovering from hurricanes, drought, heat waves,
15blizzards, severe storms, wildfires, flooding and other extreme weather events; implementing
16nature-based solutions for coastal and flood protections and otherwise; undertaking preventive
17health care programs and providing medical care to treat illness or injury caused or aggravated
18by the effects of climate change; relocating, elevating, or retrofitting sewage treatment plants
19vulnerable to flooding; installing energy efficient cooling systems and other weatherization and
20energy efficiency upgrades and retrofits in public and private buildings, including schools and
21public housing; upgrading parts of the electrical grid to increase stability and resilience,
22including supporting the creation of self-sufficient clean energy microgrids; addressing urban
23heat island effects through green spaces, urban forestry, and other interventions; and responding
24to toxic algae blooms, loss of agricultural topsoil, and other climate-driven ecosystem threats to
25forests, farms fisheries, and food systems.
26 “Coal”, bituminous coal, anthracite coal, and lignite.
27 "Controlled group", two or more entities treated as a single employer under section 52(a)
28or (b) or section 414(m) or (o) of the internal revenue code. Subsections (a) and (b) of section 52,
29section 1563 of the internal revenue code shall be applied without regard to subsection(b)(2)(c).
30For purposes of this article, entities in a controlled group are treated as a single entity for
31purposes of meeting the definition of responsible party and are jointly and severally liable for
32payment of any cost recovery demand owed by any entity in the controlled group. 3 of 16
33 "Cost recovery demand", a charge asserted against a responsible party for cost recovery
34payments under the program for payment to the fund.
35 "Covered entity", any individual, trustee, agent, partnership, association, corporation,
36company, municipality, political subdivision, or other legal organization, including a foreign
37nation, that holds or held an ownership interest in a fossil fuel business during the covered
38period.
39 "Covered emissions", with respect to any covered entity, the total quantity of greenhouse
40gasses released into the atmosphere, expressed in metric tons of carbon dioxide equivalent,
41resulting from the use of fossil fuels extracted by such covered entity during the covered period.
42 "Covered period", the period that began January first, 1995 and ended on December
43thirty-first, 2024.
44 "Crude oil", oil or petroleum of any kind and in any form, including bitumen, oil sands,
45heavy oil, conventional and unconventional oil, shale oil, natural gas liquids, and condensates.
46 “Department”, the Executive Office of Energy and Environmental Affairs or such
47subsidiary department as may be identified by the Secretary.
48 "Environmental justice population'', a neighborhood that meets 1 or more of the
49following criteria: (i) the annual median household income is not more than 65 per cent of the
50statewide annual median household income; (ii) minorities comprise 40 per cent or more of the
51population; (iii) 25 per cent or more of households lack English language proficiency; or (iv)
52minorities comprise 25 per cent or more of the population and the annual median household
53income of the municipality in which the neighborhood is located does not exceed 150 per cent of 4 of 16
54the statewide annual median household income; provided, however, that for a neighborhood that
55does not meet said criteria, but a geographic portion of that neighborhood meets at least 1
56criterion, the secretary may designate that geographic portion as an environmental justice
57population upon the petition of at least 10 residents of the geographic portion of that
58neighborhood meeting any such criteria; provided further, that the secretary may determine that a
59neighborhood, including any geographic portion thereof, shall not be designated an
60environmental justice population upon finding that: (A) the annual median household income of
61that neighborhood is greater than 125 per cent of the statewide median household income; (B) a
62majority of persons age 25 and older in that neighborhood have a college education; (C) the
63neighborhood does not bear an unfair burden of environmental pollution; and (D) the
64neighborhood has more than limited access to natural resources, including open spaces and water
65resources, playgrounds and other constructed outdoor recreational facilities and venues.
66 "Fossil fuel", coal, crude oil, natural gas, and any other energy source formed from the
67remains of ancient plants, animals, and/or microorganisms.
68 "Fossil fuel business", a business engaging in the excavation, pumping, or other
69extraction of fossil fuels.
70 "Fund", the climate change adaptation superfund.
71 "Greenhouse gas", any chemical or physical substance that is emitted into the air and that
72the department may reasonably anticipate will cause or contribute to climate change including,
73but not limited to, carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons
74and sulfur hexafluoride. 5 of 16
75 “Nature-based solutions”, projects that utilize or mimic nature or natural processes and
76functions and that may also offer environmental, economic, and social benefits, while increasing
77resilience. Nature-based solutions include both green and natural infrastructure.
78 "Notice of cost recovery demand", the written communication from the department
79informing a responsible party of the amount of the cost recovery demand payable to the fund.
80 "Petroleum products", a product that is obtained from distilling and processing crude oil
81and that is capable of being used as a fuel for the propulsion of a motor vehicle, boat or aircraft.
82The term does not include naphtha-type jet fuel, kerosene-type jet fuel, a petroleum product
83destined for use in chemical manufacturing or feedstock of that manufacturing or fuel oil used
84for heating purposes.
85 "Program", the climate change adaptation cost recovery program.
86 "Qualifying expenditure", an authorized payment from the fund in support of a climate
87change adaptation project, including its operation and maintenance, as defined by the
88department.
89 "Responsible party", any covered entity or a successor in interest to such covered entity
90described herein, that (1) is determined by the department to have engaged in the trade or
91business of extracting fossil fuel during any part of the covered period, in quantities to which
92more than one billion metric tons of covered greenhouse gas emissions are attributable and (2) is
93subject to the jurisdiction of the commonwealth for purposes of cost recovery demands because,
94during any part of the covered period, it (i) did business in Massachusetts, (ii) was registered to
95do business in Massachusetts, (iii) was appointed an agent of the state, or (iv) otherwise had 6 of 16
96sufficient contacts with Massachusetts to give Massachusetts jurisdiction over the responsible
97party consistent with the nexus requirements of the United States Constitution.
98 “Secretary”, the Secretary of the Executive Office of Energy and Environmental Affairs.
99 Section 2. The Climate Change Adaptation Cost Recovery Program.
100 (a) There is hereby established a climate change adaptation cost recovery program
101administered by the department.
102 (b) The purposes of the program shall be the following:
103 (1) To secure compensatory payments from responsible parties, based on a standard of
104strict liability, to provide a source of revenue for climate change adaptation projects within the
105state;
106 (2) To determine proportional liability of responsible parties;
107 (3) To impose cost recovery demands on responsible parties and issue notices of cost
108recovery demands;
109 (4) To accept and collect payment from responsible parties;
110 (5) To identify climate change adaptation projects;
111 (6) To allocate funds to climate change adaptation projects; and
112 (7) To allocate funds in such a way as to achieve a goal that at least forty per cent of the
113qualified expenditures from the program shall go to climate change adaptation projects that
114directly benefit environmental justice populations. 7 of 16
115 (c) Within one year of the effective date of this Act, the department shall finalize a
116climate cost study, after first providing public notice and opportunity for public comment on a
117draft of such study.
118 (1) That climate cost study shall provide a reasonable estimate of the total costs to the
119commonwealth and its residents of the emission of greenhouse gases. That total cost estimate
120shall consider the various kinds of cost-driving effects of covered greenhouse gas emissions,
121including effects on public health, natural resources, biodiversity, agriculture, economic
122development, flood preparedness and safety, housing, and any other effect that the department
123determines is relevant to making such a total cost determination.
124 (2) The climate cost study shall also provide a reasonable estimate of the costs that have
125been incurred and are expected to be incurred by the commonwealth through December 31, 2045
126to avoid, moderate, repair, or adapt to negative impacts of climate change, including potential
127qualifying expenditures under this chapter, as reasonable responses to the emission of
128greenhouse gases.
129 (3) The climate cost study shall estimate how much of the above total costs at (c)(1) and
130(c)(2) are attributable to the emission of greenhouse gases arising from the extraction of fossil
131fuels during the covered period. That estimation shall include consideration of the relative
132impact on climate change of covered fossil fuel emissions versus other sources of emissions of
133greenhouse gases, including non-anthropogenic sources.
134 (4) The climate cost study shall then multiply by eighty per cent the total cost number
135determined through (c)(3) above. 8 of 16
136 (5) The department shall periodically update the climate cost study not less frequently
137than every two years, through January 1, 2046.
138 (d) A responsible party shall be strictly liable, without regard to fault, for a share of the
139total costs determined by the most recent version of the climate cost study.
140 (1) Within 90 days of the effective date of this Act, the department shall determine and
141publish a list of responsible parties on its internet website. The agency may update the list from
142time to time, as appropriate.
143 (2) Within 60 days of the completion of the initial climate cost study, the agency shall
144determine and assess a cost recovery demand for each responsible party.
145 (3) Within 60 days of an update of the climate cost study, the agency shall update and
146adjust, as necessary, a cost recovery demand made pursuant to subdivision (d)(2). If an update to
147the climate cost study results in an adjustment of a responsible party’s cost recovery demand, the
148department shall issue a revised written notice of cost recovery demand notifying the responsible
149party of the adjusted payment.
150 (e) The department shall determine the amount of the cost recovery demand for each
151responsible party by doing all of the following:
152 (1) Determine the total amount of covered emissions, based on (A) publicly available
153data on the operations and production of the fossil fuel industry and (B) a scientifically peer-
154reviewed methodology for determining emissions factors for greenhouse gas inventories.
155 (2) Determine the total amount of covered emissions attributable to each responsible
156party, using the same data and methodology used for (e)(1). 9 of 16
157 (3) Subtract one billion metric tons from each quantity determined through (e)(2) above;
158that amount shall be known as the responsible party’s adjusted emissions amount.
159 (4) Calculate the total of all adjusted emissions amounts determined at (e)(3).
160 (5) Calculate the ratio of each responsible party’s adjusted emissions amount to the total
161of all adjusted emissions amounts determined at (e)(4), to determine each responsible party’s
162liability percentage.
163 (6) Calculate the ratio of the total amount calculated at (e)(4) to the total amount
164determined at (e)(1).
165 (7) Multiply that ratio by the dollar number determined at (c)(4), to determine the total
166recoverable amount.
167 (8) Multiply the total recoverable amount calculated at (e)(7) by each responsible party’s
168liability percentage determined at (e)(5), to determine the amount of the cost recovery demand to
169be issued to each responsible party.
170 (f) Where a responsible party owns a minority interest in another covered entity of ten per
171cent or more, the calculation of the responsible party's applicable share of greenhouse gas
172emissions taken into account under this section shall include the applicable share of greenhouse
173gas emissions taken into account under this section by the covered entity in which the
174responsible party holds a minority interest, multiplied by the percentage of the minority interest
175held. 10 of 16
176 (g) For purposes of this article, entities in a controlled group are treated as a single entity
177for purposes of meeting the definition of responsible party and are jointly and severally liable for
178payment of any cost recovery demand owed by any entity in the controlled group.
179 (h) The department shall issue a written notice of cost recovery demand notifying each
180responsible party of its cost recovery demand.
181 (i) Payment of a cost recovery demand shall be made in full on the applicable payment
182date unless a responsible party elects to pay in installments pursuant to subsection (j) of this
183subdivision.
184 (j) A responsible party may elect to pay the cost recovery demand amount in twenty-four
185annual installments, ten per cent of the total due in the first installment and the balance to be paid
186in equal installments over the remaining years. If an election is made under this paragraph, the
187first installment shall be paid on the applicable payment date and each subsequent installment
188shall be paid on the same date as the applicable payment date in each succeeding year.
189 (k) A responsible party aggrieved by a final decision of the department under this act may
190seek relief consistent with chapter 30A.
191 (l) If there is any addition to the original amount of the cost recovery demand for failure
192to timely pay any installment required under this subdivision, a liquidation or sale of
193substantially all the assets of the responsible party, including in a proceeding under u.s. code:
194title 11 or similar case, a cessation of business by the responsible party, or any similar
195circumstance, then the unpaid balance of all remaining installments shall be due on the date of
196such event, or in the case of a proceeding under u.s. code: title 11 or similar case, on the day
197before the petition is filed. The preceding sentence shall not apply to the sale of substantially all 11 of 16
198of the assets of a responsible party to a buyer if such buyer enters into an agreement with the
199department under which such buyer is liable for the remaining installments due under this
200subdivision in the same manner as if such buyer were the responsible party.
201 (m) Within one year of the effective date of this article, the department shall promulgate
202such regulations as are necessary to carry out this article, including but not limited to procedures
203for:
204 (1) Determining responsible parties and their applicable share of covered greenhouse gas
205emissions consistent with the provisions of this article;
206 (2) Registering entities that are responsible parties under the program;
207 (3) Issuing notices of cost recovery demand to responsible parties informing them of the
208cost recovery demand amount; how and where cost recovery demands can be paid; the potential
209consequences of nonpayment and late payment; and information regarding their rights to contest
210an assessment;
211 (4) Accepting payments from, pursuing collection efforts against, and negotiating
212settlements with responsible parties; and
213 (5) Identifying and selecting climate change adaptation projects eligible to receive
214qualifying expenditures, including legislative budget appropriations, issuance of requests for
215proposals from localities and not-for-profit and community organizations, grants to private
216individuals, or other methods as determined by the department, and for allocating moneys from
217the fund for qualifying expenditures. When considering projects intended to stabilize tidal
218shorelines, the department shall encourage using nature-based solutions. Total qualifying 12 of 16
219expenditures shall be allocated in such a way as to ensure at least forty per cent of the qualified
220expenditures from the program shall go to climate change adaptation projects that benefit
221environmental justice populations.
222 (n) Within two years of the effective date of this article, the department shall complete a
223statewide climate change adaptation master plan for the purpose of guiding the dispersal of funds
224in a timely, efficient, and equitable manner to all regions of the state in accordance with the
225provisions of this chapter. In completing such plan, the department shall:
226 (1) Collaborate with the secretary of state, department of housing and community
227development, the department of agriculture, the department of energy resources, the department
228of public utilities, and the Office of Environmental Justice and Equity.
229 (2) Assess the adaptation needs and vulnerabilities of various areas vital to the state’s
230economy, normal functioning, and the health and well-being of residents, including but not
231limited to: agriculture, biodiversity, ecosystem services, education, finance, healthcare,
232manufacturing, housing and real estate, retail, tourism (including state and municipal parks),
233transportation, and municipal and local government.
234 (3) Identify major potential, proposed, and ongoing climate change adaptation projects
235throughout the state;
236 (4) Identify opportunities for alignment with existing federal, state, and local funding
237streams; 13 of 16
238 (5) Consult with stakeholders, including local governments, businesses, environmental
239advocates, relevant subject area experts, and representatives of environmental justice
240communities and of relevant labor organizations;
241 (6) Provide opportunities for public engagement in all regions of the state.
242 (o) The department and the attorney general are hereby authorized to enforce the
243provisions of this article and to assess penalties for late payment of the cost recovery demands or
244the initial assessment. The late penalty shall accrue daily, assessed at the rate of 10 per cent per
245annum on the amount remaining due.
246 (p) Moneys received from cost recovery demands shall be deposited in the climate
247change adaptation superfund.
248 (q) Projects funded pursuant to this article shall require compliance with prevailing wage
249requirements pursuant to chapter 149.
250 (r) Any state entity or municipality receiving at least twenty-five million dollars
251($25,000,000) from funds allocated pursuant to this article for a project costing greater than fifty
252million dollars ($50,000,000) may require use of apprenticeship agreements.
253 (s) Any state entity or municipality receiving at least twenty-five million dollars
254($25,000,000) from funds allocated pursuant to this article for a project which involves the
255construction, reconstruction, alteration, maintenance, moving, demolition, excavation,
256development or other improvement of any building, structure or land, shall be subject to chapter
257149.. 14 of 16
258 (t)(1) Any municipality or state entity, or a third party acting on behalf and for the benefit
259of the municipality or state entity, in each contract for construction, reconstruction, alteration,
260repair, improvement or maintenance of a project receiving funds under this article that is a public
261work, shall ensure that such contract contains a provision that the structural iron and structural
262steel used or supplied in the performance of the contract or any subcontract thereto and that is
263permanently incorporated into the public work, shall be produced or made in whole or
264substantial part in the United States, its territories or possessions. In the case of a structural iron
265or structural steel product, all manufacturing must take place in the United States, from the initial
266melting stage through the application of coatings, except metallurgical processes involving the
267refinement of steel additives. For the purposes of this subdivision, "permanently incorporated"
268shall mean an iron or steel product that is required to remain in place at the end of the project
269contract, in a fixed location, affixed to the public work to which it was incorporated. Iron and
270steel products that are capable of being moved from one location to another are not permanently
271incorporated into a public work.
272 (2) The provisions of the first paragraph of this subdivision shall not apply if the head of
273the department, agency, or municipal entity constructing the public work, in his or her sole
274discretion, determines that the provisions would not be in the public interest, would result in
275unreasonable costs, or that obtaining such steel or iron in the United States would increase the
276cost of the contract by an unreasonable amount, or such iron or steel, including without
277limitation structural iron and structural steel, cannot be produced or made in the United States in
278sufficient and reasonably available quantities and of satisfactory quality. 15 of 16
279 (u)(1) The department shall conduct an independent evaluation of the climate change
280adaptation cost recovery program. The purpose of this evaluation is to determine the
281effectiveness of and recommend improvements to the program in achieving its purposes.
282 (2) Such evaluation shall be provided to the governor, the temporary president of the
283senate and the speaker of the assembly on or before January first of the second calendar year
284following the year in which this article is enacted into law, and annually on or before September
285thirtieth thereafter.
286 Section 3. Climate Change Adaptation Fund.
287 (a) There is hereby established within the department a special revolving fund to be
288known as the "climate change adaptation fund" for the purpose of receiving moneys through cost
289recovery demands and issuing funds for qualifying expenditures pursuant to the climate change
290adaptation cost recovery program.
291 (b) No monies shall be expended from the fund for any project except qualifying
292expenditures pursuant to the program, including their operation and maintenance, as well as
293reasonable costs incurred by the department for administering the program, including .
294 Section 4. Applicability of Chapter
295 (a) Nothing in this act shall be deemed to preclude the pursuit of a civil action or other
296remedy by any person. The remedies provided in this act are in addition to those provided by
297existing statutory or common law.
298 (b) This act does not preempt, supersede, or displace any state law or local ordinance,
299regulation, policy, or program that does any of the following: (i) limit, set, or enforce standards 16 of 16
300for emissions of greenhouse gases; (ii) monitor, report, or keep records of emissions of
301greenhouse gases; (iii) collect revenue through fees or levy taxes; or (iv) conduct or support
302investigations.
303 (c) If any word, phrase, clause, sentence, paragraph, section, or part of this act shall be
304adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect,
305impair, or invalidate the remainder thereof, but shall be confined in its operation to the word,
306phrase, clause, sentence, paragraph, section, or part thereof directly involved in the controversy
307in which such judgment shall have been rendered.