Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H1014 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 1 of 1
22 HOUSE DOCKET, NO. 3369 FILED ON: 1/17/2025
33 HOUSE . . . . . . . . . . . . . . . No. 1014
44 The Commonwealth of Massachusetts
55 _________________
66 PRESENTED BY:
77 Steven Owens and Jack Patrick Lewis
88 _________________
99 To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
1010 Court assembled:
1111 The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
1212 An Act establishing a climate change superfund.
1313 _______________
1414 PETITION OF:
1515 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
1616 HOUSE DOCKET, NO. 3369 FILED ON: 1/17/2025
1717 HOUSE . . . . . . . . . . . . . . . No. 1014
1818 By Representatives Owens of Watertown and Lewis of Framingham, a petition (accompanied by
1919 bill, House, No. 1014) of Steven Owens, Danillo A. Sena and others for legislation to finance
2020 climate adaptation projects. Environment and Natural Resources.
2121 The Commonwealth of Massachusetts
2222 _______________
2323 In the One Hundred and Ninety-Fourth General Court
2424 (2025-2026)
2525 _______________
2626 An Act establishing a climate change superfund.
2727 Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
2828 of the same, as follows:
2929 1 SECTION 1. The General Laws are hereby amended by inserting after Chapter 21O the
3030 2following chapter:
3131 3 CHAPTER 21P
3232 4 CLIMATE CHANGE ADAPTATION COST RECOVERY ACT
3333 5 Section 1. Definitions.
3434 6 For purposes of this chapter, the following terms shall have the following meanings
3535 7unless the context clearly requires otherwise:
3636 8 "Applicable payment date", July first of the calendar year following the year in which this
3737 9chapter is enacted into law. 2 of 16
3838 10 "Climate change adaptation project", a project designed to avoid, moderate, repair or
3939 11adapt to negative impacts of climate change or to assist communities, households and businesses
4040 12in preparing for future climate change-driven disruptions. Such projects may include but are not
4141 13limited to upgrading storm water drainage systems; making defensive upgrades to roads, bridges,
4242 14subways, and transit systems; preparing for and recovering from hurricanes, drought, heat waves,
4343 15blizzards, severe storms, wildfires, flooding and other extreme weather events; implementing
4444 16nature-based solutions for coastal and flood protections and otherwise; undertaking preventive
4545 17health care programs and providing medical care to treat illness or injury caused or aggravated
4646 18by the effects of climate change; relocating, elevating, or retrofitting sewage treatment plants
4747 19vulnerable to flooding; installing energy efficient cooling systems and other weatherization and
4848 20energy efficiency upgrades and retrofits in public and private buildings, including schools and
4949 21public housing; upgrading parts of the electrical grid to increase stability and resilience,
5050 22including supporting the creation of self-sufficient clean energy microgrids; addressing urban
5151 23heat island effects through green spaces, urban forestry, and other interventions; and responding
5252 24to toxic algae blooms, loss of agricultural topsoil, and other climate-driven ecosystem threats to
5353 25forests, farms fisheries, and food systems.
5454 26 “Coal”, bituminous coal, anthracite coal, and lignite.
5555 27 "Controlled group", two or more entities treated as a single employer under section 52(a)
5656 28or (b) or section 414(m) or (o) of the internal revenue code. Subsections (a) and (b) of section 52,
5757 29section 1563 of the internal revenue code shall be applied without regard to subsection(b)(2)(c).
5858 30For purposes of this article, entities in a controlled group are treated as a single entity for
5959 31purposes of meeting the definition of responsible party and are jointly and severally liable for
6060 32payment of any cost recovery demand owed by any entity in the controlled group. 3 of 16
6161 33 "Cost recovery demand", a charge asserted against a responsible party for cost recovery
6262 34payments under the program for payment to the fund.
6363 35 "Covered entity", any individual, trustee, agent, partnership, association, corporation,
6464 36company, municipality, political subdivision, or other legal organization, including a foreign
6565 37nation, that holds or held an ownership interest in a fossil fuel business during the covered
6666 38period.
6767 39 "Covered emissions", with respect to any covered entity, the total quantity of greenhouse
6868 40gasses released into the atmosphere, expressed in metric tons of carbon dioxide equivalent,
6969 41resulting from the use of fossil fuels extracted by such covered entity during the covered period.
7070 42 "Covered period", the period that began January first, 1995 and ended on December
7171 43thirty-first, 2024.
7272 44 "Crude oil", oil or petroleum of any kind and in any form, including bitumen, oil sands,
7373 45heavy oil, conventional and unconventional oil, shale oil, natural gas liquids, and condensates.
7474 46 “Department”, the Executive Office of Energy and Environmental Affairs or such
7575 47subsidiary department as may be identified by the Secretary.
7676 48 "Environmental justice population'', a neighborhood that meets 1 or more of the
7777 49following criteria: (i) the annual median household income is not more than 65 per cent of the
7878 50statewide annual median household income; (ii) minorities comprise 40 per cent or more of the
7979 51population; (iii) 25 per cent or more of households lack English language proficiency; or (iv)
8080 52minorities comprise 25 per cent or more of the population and the annual median household
8181 53income of the municipality in which the neighborhood is located does not exceed 150 per cent of 4 of 16
8282 54the statewide annual median household income; provided, however, that for a neighborhood that
8383 55does not meet said criteria, but a geographic portion of that neighborhood meets at least 1
8484 56criterion, the secretary may designate that geographic portion as an environmental justice
8585 57population upon the petition of at least 10 residents of the geographic portion of that
8686 58neighborhood meeting any such criteria; provided further, that the secretary may determine that a
8787 59neighborhood, including any geographic portion thereof, shall not be designated an
8888 60environmental justice population upon finding that: (A) the annual median household income of
8989 61that neighborhood is greater than 125 per cent of the statewide median household income; (B) a
9090 62majority of persons age 25 and older in that neighborhood have a college education; (C) the
9191 63neighborhood does not bear an unfair burden of environmental pollution; and (D) the
9292 64neighborhood has more than limited access to natural resources, including open spaces and water
9393 65resources, playgrounds and other constructed outdoor recreational facilities and venues.
9494 66 "Fossil fuel", coal, crude oil, natural gas, and any other energy source formed from the
9595 67remains of ancient plants, animals, and/or microorganisms.
9696 68 "Fossil fuel business", a business engaging in the excavation, pumping, or other
9797 69extraction of fossil fuels.
9898 70 "Fund", the climate change adaptation superfund.
9999 71 "Greenhouse gas", any chemical or physical substance that is emitted into the air and that
100100 72the department may reasonably anticipate will cause or contribute to climate change including,
101101 73but not limited to, carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons
102102 74and sulfur hexafluoride. 5 of 16
103103 75 “Nature-based solutions”, projects that utilize or mimic nature or natural processes and
104104 76functions and that may also offer environmental, economic, and social benefits, while increasing
105105 77resilience. Nature-based solutions include both green and natural infrastructure.
106106 78 "Notice of cost recovery demand", the written communication from the department
107107 79informing a responsible party of the amount of the cost recovery demand payable to the fund.
108108 80 "Petroleum products", a product that is obtained from distilling and processing crude oil
109109 81and that is capable of being used as a fuel for the propulsion of a motor vehicle, boat or aircraft.
110110 82The term does not include naphtha-type jet fuel, kerosene-type jet fuel, a petroleum product
111111 83destined for use in chemical manufacturing or feedstock of that manufacturing or fuel oil used
112112 84for heating purposes.
113113 85 "Program", the climate change adaptation cost recovery program.
114114 86 "Qualifying expenditure", an authorized payment from the fund in support of a climate
115115 87change adaptation project, including its operation and maintenance, as defined by the
116116 88department.
117117 89 "Responsible party", any covered entity or a successor in interest to such covered entity
118118 90described herein, that (1) is determined by the department to have engaged in the trade or
119119 91business of extracting fossil fuel during any part of the covered period, in quantities to which
120120 92more than one billion metric tons of covered greenhouse gas emissions are attributable and (2) is
121121 93subject to the jurisdiction of the commonwealth for purposes of cost recovery demands because,
122122 94during any part of the covered period, it (i) did business in Massachusetts, (ii) was registered to
123123 95do business in Massachusetts, (iii) was appointed an agent of the state, or (iv) otherwise had 6 of 16
124124 96sufficient contacts with Massachusetts to give Massachusetts jurisdiction over the responsible
125125 97party consistent with the nexus requirements of the United States Constitution.
126126 98 “Secretary”, the Secretary of the Executive Office of Energy and Environmental Affairs.
127127 99 Section 2. The Climate Change Adaptation Cost Recovery Program.
128128 100 (a) There is hereby established a climate change adaptation cost recovery program
129129 101administered by the department.
130130 102 (b) The purposes of the program shall be the following:
131131 103 (1) To secure compensatory payments from responsible parties, based on a standard of
132132 104strict liability, to provide a source of revenue for climate change adaptation projects within the
133133 105state;
134134 106 (2) To determine proportional liability of responsible parties;
135135 107 (3) To impose cost recovery demands on responsible parties and issue notices of cost
136136 108recovery demands;
137137 109 (4) To accept and collect payment from responsible parties;
138138 110 (5) To identify climate change adaptation projects;
139139 111 (6) To allocate funds to climate change adaptation projects; and
140140 112 (7) To allocate funds in such a way as to achieve a goal that at least forty per cent of the
141141 113qualified expenditures from the program shall go to climate change adaptation projects that
142142 114directly benefit environmental justice populations. 7 of 16
143143 115 (c) Within one year of the effective date of this Act, the department shall finalize a
144144 116climate cost study, after first providing public notice and opportunity for public comment on a
145145 117draft of such study.
146146 118 (1) That climate cost study shall provide a reasonable estimate of the total costs to the
147147 119commonwealth and its residents of the emission of greenhouse gases. That total cost estimate
148148 120shall consider the various kinds of cost-driving effects of covered greenhouse gas emissions,
149149 121including effects on public health, natural resources, biodiversity, agriculture, economic
150150 122development, flood preparedness and safety, housing, and any other effect that the department
151151 123determines is relevant to making such a total cost determination.
152152 124 (2) The climate cost study shall also provide a reasonable estimate of the costs that have
153153 125been incurred and are expected to be incurred by the commonwealth through December 31, 2045
154154 126to avoid, moderate, repair, or adapt to negative impacts of climate change, including potential
155155 127qualifying expenditures under this chapter, as reasonable responses to the emission of
156156 128greenhouse gases.
157157 129 (3) The climate cost study shall estimate how much of the above total costs at (c)(1) and
158158 130(c)(2) are attributable to the emission of greenhouse gases arising from the extraction of fossil
159159 131fuels during the covered period. That estimation shall include consideration of the relative
160160 132impact on climate change of covered fossil fuel emissions versus other sources of emissions of
161161 133greenhouse gases, including non-anthropogenic sources.
162162 134 (4) The climate cost study shall then multiply by eighty per cent the total cost number
163163 135determined through (c)(3) above. 8 of 16
164164 136 (5) The department shall periodically update the climate cost study not less frequently
165165 137than every two years, through January 1, 2046.
166166 138 (d) A responsible party shall be strictly liable, without regard to fault, for a share of the
167167 139total costs determined by the most recent version of the climate cost study.
168168 140 (1) Within 90 days of the effective date of this Act, the department shall determine and
169169 141publish a list of responsible parties on its internet website. The agency may update the list from
170170 142time to time, as appropriate.
171171 143 (2) Within 60 days of the completion of the initial climate cost study, the agency shall
172172 144determine and assess a cost recovery demand for each responsible party.
173173 145 (3) Within 60 days of an update of the climate cost study, the agency shall update and
174174 146adjust, as necessary, a cost recovery demand made pursuant to subdivision (d)(2). If an update to
175175 147the climate cost study results in an adjustment of a responsible party’s cost recovery demand, the
176176 148department shall issue a revised written notice of cost recovery demand notifying the responsible
177177 149party of the adjusted payment.
178178 150 (e) The department shall determine the amount of the cost recovery demand for each
179179 151responsible party by doing all of the following:
180180 152 (1) Determine the total amount of covered emissions, based on (A) publicly available
181181 153data on the operations and production of the fossil fuel industry and (B) a scientifically peer-
182182 154reviewed methodology for determining emissions factors for greenhouse gas inventories.
183183 155 (2) Determine the total amount of covered emissions attributable to each responsible
184184 156party, using the same data and methodology used for (e)(1). 9 of 16
185185 157 (3) Subtract one billion metric tons from each quantity determined through (e)(2) above;
186186 158that amount shall be known as the responsible party’s adjusted emissions amount.
187187 159 (4) Calculate the total of all adjusted emissions amounts determined at (e)(3).
188188 160 (5) Calculate the ratio of each responsible party’s adjusted emissions amount to the total
189189 161of all adjusted emissions amounts determined at (e)(4), to determine each responsible party’s
190190 162liability percentage.
191191 163 (6) Calculate the ratio of the total amount calculated at (e)(4) to the total amount
192192 164determined at (e)(1).
193193 165 (7) Multiply that ratio by the dollar number determined at (c)(4), to determine the total
194194 166recoverable amount.
195195 167 (8) Multiply the total recoverable amount calculated at (e)(7) by each responsible party’s
196196 168liability percentage determined at (e)(5), to determine the amount of the cost recovery demand to
197197 169be issued to each responsible party.
198198 170 (f) Where a responsible party owns a minority interest in another covered entity of ten per
199199 171cent or more, the calculation of the responsible party's applicable share of greenhouse gas
200200 172emissions taken into account under this section shall include the applicable share of greenhouse
201201 173gas emissions taken into account under this section by the covered entity in which the
202202 174responsible party holds a minority interest, multiplied by the percentage of the minority interest
203203 175held. 10 of 16
204204 176 (g) For purposes of this article, entities in a controlled group are treated as a single entity
205205 177for purposes of meeting the definition of responsible party and are jointly and severally liable for
206206 178payment of any cost recovery demand owed by any entity in the controlled group.
207207 179 (h) The department shall issue a written notice of cost recovery demand notifying each
208208 180responsible party of its cost recovery demand.
209209 181 (i) Payment of a cost recovery demand shall be made in full on the applicable payment
210210 182date unless a responsible party elects to pay in installments pursuant to subsection (j) of this
211211 183subdivision.
212212 184 (j) A responsible party may elect to pay the cost recovery demand amount in twenty-four
213213 185annual installments, ten per cent of the total due in the first installment and the balance to be paid
214214 186in equal installments over the remaining years. If an election is made under this paragraph, the
215215 187first installment shall be paid on the applicable payment date and each subsequent installment
216216 188shall be paid on the same date as the applicable payment date in each succeeding year.
217217 189 (k) A responsible party aggrieved by a final decision of the department under this act may
218218 190seek relief consistent with chapter 30A.
219219 191 (l) If there is any addition to the original amount of the cost recovery demand for failure
220220 192to timely pay any installment required under this subdivision, a liquidation or sale of
221221 193substantially all the assets of the responsible party, including in a proceeding under u.s. code:
222222 194title 11 or similar case, a cessation of business by the responsible party, or any similar
223223 195circumstance, then the unpaid balance of all remaining installments shall be due on the date of
224224 196such event, or in the case of a proceeding under u.s. code: title 11 or similar case, on the day
225225 197before the petition is filed. The preceding sentence shall not apply to the sale of substantially all 11 of 16
226226 198of the assets of a responsible party to a buyer if such buyer enters into an agreement with the
227227 199department under which such buyer is liable for the remaining installments due under this
228228 200subdivision in the same manner as if such buyer were the responsible party.
229229 201 (m) Within one year of the effective date of this article, the department shall promulgate
230230 202such regulations as are necessary to carry out this article, including but not limited to procedures
231231 203for:
232232 204 (1) Determining responsible parties and their applicable share of covered greenhouse gas
233233 205emissions consistent with the provisions of this article;
234234 206 (2) Registering entities that are responsible parties under the program;
235235 207 (3) Issuing notices of cost recovery demand to responsible parties informing them of the
236236 208cost recovery demand amount; how and where cost recovery demands can be paid; the potential
237237 209consequences of nonpayment and late payment; and information regarding their rights to contest
238238 210an assessment;
239239 211 (4) Accepting payments from, pursuing collection efforts against, and negotiating
240240 212settlements with responsible parties; and
241241 213 (5) Identifying and selecting climate change adaptation projects eligible to receive
242242 214qualifying expenditures, including legislative budget appropriations, issuance of requests for
243243 215proposals from localities and not-for-profit and community organizations, grants to private
244244 216individuals, or other methods as determined by the department, and for allocating moneys from
245245 217the fund for qualifying expenditures. When considering projects intended to stabilize tidal
246246 218shorelines, the department shall encourage using nature-based solutions. Total qualifying 12 of 16
247247 219expenditures shall be allocated in such a way as to ensure at least forty per cent of the qualified
248248 220expenditures from the program shall go to climate change adaptation projects that benefit
249249 221environmental justice populations.
250250 222 (n) Within two years of the effective date of this article, the department shall complete a
251251 223statewide climate change adaptation master plan for the purpose of guiding the dispersal of funds
252252 224in a timely, efficient, and equitable manner to all regions of the state in accordance with the
253253 225provisions of this chapter. In completing such plan, the department shall:
254254 226 (1) Collaborate with the secretary of state, department of housing and community
255255 227development, the department of agriculture, the department of energy resources, the department
256256 228of public utilities, and the Office of Environmental Justice and Equity.
257257 229 (2) Assess the adaptation needs and vulnerabilities of various areas vital to the state’s
258258 230economy, normal functioning, and the health and well-being of residents, including but not
259259 231limited to: agriculture, biodiversity, ecosystem services, education, finance, healthcare,
260260 232manufacturing, housing and real estate, retail, tourism (including state and municipal parks),
261261 233transportation, and municipal and local government.
262262 234 (3) Identify major potential, proposed, and ongoing climate change adaptation projects
263263 235throughout the state;
264264 236 (4) Identify opportunities for alignment with existing federal, state, and local funding
265265 237streams; 13 of 16
266266 238 (5) Consult with stakeholders, including local governments, businesses, environmental
267267 239advocates, relevant subject area experts, and representatives of environmental justice
268268 240communities and of relevant labor organizations;
269269 241 (6) Provide opportunities for public engagement in all regions of the state.
270270 242 (o) The department and the attorney general are hereby authorized to enforce the
271271 243provisions of this article and to assess penalties for late payment of the cost recovery demands or
272272 244the initial assessment. The late penalty shall accrue daily, assessed at the rate of 10 per cent per
273273 245annum on the amount remaining due.
274274 246 (p) Moneys received from cost recovery demands shall be deposited in the climate
275275 247change adaptation superfund.
276276 248 (q) Projects funded pursuant to this article shall require compliance with prevailing wage
277277 249requirements pursuant to chapter 149.
278278 250 (r) Any state entity or municipality receiving at least twenty-five million dollars
279279 251($25,000,000) from funds allocated pursuant to this article for a project costing greater than fifty
280280 252million dollars ($50,000,000) may require use of apprenticeship agreements.
281281 253 (s) Any state entity or municipality receiving at least twenty-five million dollars
282282 254($25,000,000) from funds allocated pursuant to this article for a project which involves the
283283 255construction, reconstruction, alteration, maintenance, moving, demolition, excavation,
284284 256development or other improvement of any building, structure or land, shall be subject to chapter
285285 257149.. 14 of 16
286286 258 (t)(1) Any municipality or state entity, or a third party acting on behalf and for the benefit
287287 259of the municipality or state entity, in each contract for construction, reconstruction, alteration,
288288 260repair, improvement or maintenance of a project receiving funds under this article that is a public
289289 261work, shall ensure that such contract contains a provision that the structural iron and structural
290290 262steel used or supplied in the performance of the contract or any subcontract thereto and that is
291291 263permanently incorporated into the public work, shall be produced or made in whole or
292292 264substantial part in the United States, its territories or possessions. In the case of a structural iron
293293 265or structural steel product, all manufacturing must take place in the United States, from the initial
294294 266melting stage through the application of coatings, except metallurgical processes involving the
295295 267refinement of steel additives. For the purposes of this subdivision, "permanently incorporated"
296296 268shall mean an iron or steel product that is required to remain in place at the end of the project
297297 269contract, in a fixed location, affixed to the public work to which it was incorporated. Iron and
298298 270steel products that are capable of being moved from one location to another are not permanently
299299 271incorporated into a public work.
300300 272 (2) The provisions of the first paragraph of this subdivision shall not apply if the head of
301301 273the department, agency, or municipal entity constructing the public work, in his or her sole
302302 274discretion, determines that the provisions would not be in the public interest, would result in
303303 275unreasonable costs, or that obtaining such steel or iron in the United States would increase the
304304 276cost of the contract by an unreasonable amount, or such iron or steel, including without
305305 277limitation structural iron and structural steel, cannot be produced or made in the United States in
306306 278sufficient and reasonably available quantities and of satisfactory quality. 15 of 16
307307 279 (u)(1) The department shall conduct an independent evaluation of the climate change
308308 280adaptation cost recovery program. The purpose of this evaluation is to determine the
309309 281effectiveness of and recommend improvements to the program in achieving its purposes.
310310 282 (2) Such evaluation shall be provided to the governor, the temporary president of the
311311 283senate and the speaker of the assembly on or before January first of the second calendar year
312312 284following the year in which this article is enacted into law, and annually on or before September
313313 285thirtieth thereafter.
314314 286 Section 3. Climate Change Adaptation Fund.
315315 287 (a) There is hereby established within the department a special revolving fund to be
316316 288known as the "climate change adaptation fund" for the purpose of receiving moneys through cost
317317 289recovery demands and issuing funds for qualifying expenditures pursuant to the climate change
318318 290adaptation cost recovery program.
319319 291 (b) No monies shall be expended from the fund for any project except qualifying
320320 292expenditures pursuant to the program, including their operation and maintenance, as well as
321321 293reasonable costs incurred by the department for administering the program, including .
322322 294 Section 4. Applicability of Chapter
323323 295 (a) Nothing in this act shall be deemed to preclude the pursuit of a civil action or other
324324 296remedy by any person. The remedies provided in this act are in addition to those provided by
325325 297existing statutory or common law.
326326 298 (b) This act does not preempt, supersede, or displace any state law or local ordinance,
327327 299regulation, policy, or program that does any of the following: (i) limit, set, or enforce standards 16 of 16
328328 300for emissions of greenhouse gases; (ii) monitor, report, or keep records of emissions of
329329 301greenhouse gases; (iii) collect revenue through fees or levy taxes; or (iv) conduct or support
330330 302investigations.
331331 303 (c) If any word, phrase, clause, sentence, paragraph, section, or part of this act shall be
332332 304adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect,
333333 305impair, or invalidate the remainder thereof, but shall be confined in its operation to the word,
334334 306phrase, clause, sentence, paragraph, section, or part thereof directly involved in the controversy
335335 307in which such judgment shall have been rendered.