1 of 1 HOUSE DOCKET, NO. 4204 FILED ON: 1/17/2025 HOUSE . . . . . . . . . . . . . . . No. 3554 The Commonwealth of Massachusetts _________________ PRESENTED BY: David M. Rogers and Christine P. Barber _________________ 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 achieving a green future with infrastructure and workforce investments. _______________ PETITION OF: NAME:DISTRICT/ADDRESS :DATE ADDED:David M. Rogers24th Middlesex1/17/2025Christine P. Barber34th Middlesex1/17/2025Manny Cruz7th Essex2/4/2025 1 of 29 HOUSE DOCKET, NO. 4204 FILED ON: 1/17/2025 HOUSE . . . . . . . . . . . . . . . No. 3554 By Representatives Rogers of Cambridge and Barber of Somerville, a petition (accompanied by bill, House, No. 3554) of David M. Rogers, Christine P. Barber and Manny Cruz relative to achieving a green future with infrastructure and workforce investments. Telecommunications, Utilities and Energy. [SIMILAR MATTER FILED IN PREVIOUS SESSION SEE HOUSE, NO. 3693 OF 2023-2024.] The Commonwealth of Massachusetts _______________ In the One Hundred and Ninety-Fourth General Court (2025-2026) _______________ An Act achieving a green future with infrastructure and workforce investments. 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. Section 3 of chapter 25A of the Massachusetts General Laws, as appearing 2in the 2022 Official Edition, is hereby amended by inserting the following definitions:- 3 “Environmental justice population,” a definition established in chapter 30. If none shall 4exist the secretary of the executive office of energy and environmental affairs in consultation 5with appropriate departments, shall establish such a definition with criteria that includes; median 6household income, and minority status. 7 “Environmental justice council,” an advisory committee of the same name, established in 8chapter 30. If no such body exists, one shall be established and consist of not less than 9, but not 9more than 15, members appointed by the governor, who shall designate a chair. 2 of 29 10 “Environmental justice principles”, principles that support protection from environmental 11pollution and the ability to live in and enjoy a clean and healthy environmental, regardless of 12race, color, income, class, handicap, gender identity, sexual orientation, national origin, ethnicity 13or ancestry, religious belief or English language proficiency, which includes: (i) the meaningful 14involvement of all people with respect to the development, implementation and enforcement of 15environmental laws, regulations and policies, including climate change policies; and (ii) the 16equitable distribution of energy and environmental benefits and environmental burdens. 17 “Revenue commissioner,” the commissioner of the department of revenue 18 “Secretary,” The secretary of the executive office of energy and environmental affairs. 19 “Quintile 1 household,” a household with an annual gross income below the quintile 1 20income limit, as defined in this section. 21 “Quintile 1 income limit,” an amount that is greater than the annual household gross 22incomes of no more or less than 20 per cent of households in the state, as determined and 23updated annually by the commissioner of revenue. 24 “Quintile 2 household,” a household with an annual gross income above the quintile 1 25income limit, but below the quintile 2 income limit, as defined in this section. 26 “Quintile 2 income limit,” an amount that is greater than the annual household gross 27incomes of no more or less than 40 per cent of households in the state, as determined and 28updated annually by the commissioner revenue. 29 SECTION 2. Chapter 25A of the General Laws, as so appearing, is hereby amended by 30inserting after section 13 the following section:- 3 of 29 31 25A:13A Green Infrastructure Fund 32 (a) There shall be established on the books of the commonwealth a separate fund to be 33known as the Green Infrastructure Fund, to be administered by the secretary. The secretary may 34assign responsibility for administering portions of the funds and plans to state agencies, regional 35authorities, municipal governments, or other public institutions outside its authority. None of the 36proceeds shall fund government operations of the commonwealth, other than to pay for 37reasonable administrative costs as provided under subsection (g) of this section. 38 (b) The secretary shall deposit into the fund all proceeds collected by any market-based 39mechanism under clause (ii) of subsection (a) of section 7 of chapter 21N that remain after initial 40distribution to the household green dividend fund, under section 13C of chapter 25A. The 41secretary shall deposit into the fund all proceeds collected by market-based mechanisms under 42clause (iii) and clause (iv) of subsection (a) of section 7 of chapter 21N that remain after initial 43distribution to the following funds, as applicable; (i) the household green dividend fund, 44established under section 13C of chapter 25A; (ii) the green workforce development and training 45fund, established under section 13B of chapter 25A; and (iii) the Massachusetts local climate 46crisis trust fund, established under chapter 25D. 47 (c) (1) The Green Infrastructure Fund shall support investments that facilitate, directly or 48indirectly, reductions of greenhouse gas emissions. Eligible projects shall include but not be 49limited to: (i) investments in public transit, low carbon buses and trucks, electric vehicles, 50electric vehicle charging infrastructure, and other modes of clean transportation; (ii) transit- 51oriented affordable housing; (iii) expansion of in-state renewable energy, battery storage, and 52community microgrids; (iv) energy efficiency, electrification, and renewable energy investments 4 of 29 53in housing, municipal infrastructure and public school buildings; (v) technology research, 54development, and commercialization program; and (vi) clean energy and climate change 55investments in rural communities. 56 (2) Other eligible projects may include those currently established and administered by a 57state agency, including, but not limited to: (i) the Mass Save program; (ii) grid-level power 58storage through the Massachusetts clean energy center’s advancing commonwealth energy 59storage program; (iii) battery storage through department of public utilities battery rebate 60program; (iv) support for the development of offshore wind workforces, local supply chains, 61adequate port infrastructure and advanced research and innovation; and (v) continued marketing 62development aimed at technology commercialization for building decarbonization. 63 (d) (1) A committee known as the green infrastructure fund board shall be created, 64consisting of 18 members. The secretary shall serve as a member and the chair of the green 65infrastructure fund board, with 14 other members chosen by the governor representing: (i) the 66department of transportation; (ii) the department of environmental protection; (iii) the 67department of energy resources; (iv) the department of housing and community development; (v) 68the massachusetts clean energy center; (vi) the environmental justice council; (vii) organized 69labor; (viii) large commercial/industrial business; (ix) small business community; (x) low- 70income residents; (xi) clean energy industry; (xii) youth, with the member being 25 years of age 71or younger; and (xiii) two separate representatives from regional planning associations 72representing different regions of the state. 5 of 29 73 (2) The green infrastructure fund board shall also consist of 1 member of the public 74chosen by the speaker of the house of representatives, 1 member of the public chosen by the 75president of the state senate, and 1 member chosen by the state treasurer. 76 (e) No later than January 1st, 2024, and subsequently every 3 years, the secretary, in 77consultation with the green infrastructure fund board, shall develop and issue a 3 year plan for 78expenditure of the Green Infrastructure Fund funds, which shall be made available to the public 79within 7 days of completion. 80 (f) The secretary shall submit an annual report to the appropriate committees of the 81general court on the status of projects funded under this bill and their outcomes, which shall also 82be made available to the public within 7 days. Administering agencies and public institutions 83shall report to the secretary, and the secretary shall include in the report, a description of how the 84administering agencies have fulfilled legislative requirements under this section. 85 (g) The Green Infrastructure Fund shall be administered by the secretary using no more 86than 3½ per cent of Green Infrastructure Fund proceeds to cover administrative costs, including 87but not limited to, support from expert consultants, technical assistance to municipal 88governments and regional agencies, or program outreach. 89 (h) Priority disbursements shall be awarded to projects that concur with investment 90principles established by the green infrastructure fund board, in consultation with the public. 91 (i) Within a given calendar year, the secretary shall allocate a minimum of 60 per cent of 92invested monies to projects that are directly located within and provide meaningful benefits to 93environmental justice populations. 6 of 29 94 (j) All construction, reconstruction, alteration, installation, demolition, maintenance or 95repair paid through the Green Infrastructure Fund shall be subject to Massachusetts General Law 96Chapter 149 Sections 26 to 27F inclusive, Massachusetts General Law Chapter 149 Section 29, 97Massachusetts General Law Chapter 30 Section 39M, and Massachusetts General Law Chapter 9830 Sections 61 through 62L, inclusive. 99 (k) No later than January 1st, 2024, and subsequently every 3 years, the secretary, in 100consultation with the environmental justice council and the public, shall submit to the legislature 101and make public a report that includes: (i) measurable criteria that administering entities of 102monies disbursed from the Green Infrastructure Fund must report for some or all of a project to 103be considered directly located within, and providing direct and meaningful benefits to, 104environmental justice populations; (ii) procedures for administering entities of the monies 105disbursed from the Green Infrastructure Fund to follow in order to determine what portion of a 106project’s expenditures are directly located within, and providing direct and meaningful benefits 107to, environmental justice populations; and (iii) other requisite procedures for administering 108entities of the monies disbursed from the Green Infrastructure Fund to follow in order to adhere 109to environmental justice principles. 110 SECTION 3. The General Laws, as so appearing, is hereby amended by inserting after 111Chapter 25C the following chapter:- 112 Chapter 25D: LOCAL CLIMATE CRISIS INVESTMENTS ACT 113 Section 1. This chapter shall be known and may be cited as the Local Climate Crisis 114Investments Act. 7 of 29 115 Section 2. As used in this chapter, the following words shall, unless the context clearly 116indicates a different meaning, have the following meanings:— 117 “Executive office,” the executive office of energy and environmental affairs. 118 “Fund”, the Local Climate Crisis Fund established in this chapter. 119 “Trust fund”, the Massachusetts Local Climate Crisis Trust Fund established in this 120chapter. 121 “Jurisdiction”, a city, town, or municipality in the commonwealth. May also include a 122regional combination of adjacent or coordinated municipalities established under section 3 of this 123chapter, with the approval of the secretary. 124 ''Local green investment”, a project within the geographic boundaries of a town or city, 125approved by a majority vote of the local climate crisis council, that is eligible to be financially 126supported under section 11 of this chapter. 127 “Local climate crisis council”, the committee established by the legislative body of a city 128or town to make recommendations for local green investments, as provided in section 4 of this 129chapter. 130 “Local Climate Crisis Fund'', the municipal fund established under section 5 of this 131chapter. 132 ''Legislative body'', the agency of municipal government which is empowered to enact 133ordinances or by-laws, adopt an annual budget and other spending authorizations, loan orders, 134bond authorizations and other financial matters and whether styled as a city council, board of 135aldermen, town council, town meeting or by any other title. 8 of 29 136 “Secretary,” the secretary of the executive office of energy and environmental affairs. 137 “Massachusetts Local Climate Crisis Trust Fund”, a state fund established by section 7 138overseen by the secretary of the executive office of energy and environmental affairs. 139 “Regional climate crisis council,” the committee established by the legislative body of 140multiple cities or towns to make recommendations for local green investments, as provided in 141section 4 of this chapter. Also referred to as the regional council. 142 Section 3. Sections 3 to 6, inclusive, shall take effect in any city or town upon the 143approval by the legislative body as set forth in this chapter. Notwithstanding the provisions of 144any other general or special law to the contrary, the legislative body may vote to accept sections 1453 to 6, inclusive. The legislative body shall notify the secretary of its acceptance, and confirm its 146compliance with sections 3 to 6 annually. 147 Section 4. (a) A city or town that accepts sections 3 to 6, inclusive, shall establish by 148ordinance or by-law a local climate crisis council. The council shall consist of not less than five 149nor more than eleven members. The ordinance or by-law shall determine the composition of the 150council, the length of its term and the method of selecting its members, whether by election or 151appointment or by a combination thereof. In establishing ordinance or by-law, a city or town 152may consider allowing the council to recommend a municipal bond issuance, notwithstanding 153the provisions of any other general or special law to the contrary. A city or town should consider 154combining the duties and responsibilities of the council with any existing municipal committee, 155if it meets the requirements laid out in this chapter. 156 (b) Multiple adjacent cities or towns, with approval from each city or town’s legislative 157body and the secretary, may designate themselves a jurisdiction for the purposes of this chapter. 9 of 29 158Such a jurisdiction shall designate one regional climate crisis council to represent the cities or 159towns within said region, and shall combine the designated funds from multiple cities or towns 160into one Local Climate Crisis Fund administered by the secretary, operating under similar 161guidelines set forth in section 5 of this chapter. A regional council and its member municipalities 162are subject to sections 3 to 6, inclusive, unless otherwise determined by the secretary in order to 163allow for the proper and efficient administration of this chapter on a regional basis. 164 (c) In selection of members of the council, due consideration shall be made in achieving 165proportional representation on the basis of the socioeconomic, racial, age, and gender 166demographics within the city or town, as determined by the most recent decennial census 167conducted by the United States Census Bureau. At least 1 member of the council shall be a 168resident under the age of 22 years of age. Should the council represent a jurisdiction containing 169one or more environmental justice populations, then the council shall include, at a minimum, a 170proportion of members representing environmental justice populations in the jurisdiction equal to 171within 15 per cent of the greater of: (i) the proportion of the jurisdiction’s population who live in 172an environmental justice population; or (ii) the proportion of the jurisdiction’s Local Climate 173Crisis Fund allocated for environmental justice populations, as determined under section 8. 174 (d) The council shall make recommendations to the legislative body for use of funds 175designated part of the Local Climate Crisis Fund for the city or town, under section 6 of this 176chapter. 177 (e) The council, incorporating applicable guidance from the secretary, shall ensure that 178decisions made regarding local green investments be done following public input that shall 179include, but is not limited to, hearings, and some combination of forums, surveys, or social 10 of 29 180media. The council shall meet no less than 4 times a year. The council shall consult with relevant 181municipal officials working in planning, conservation, schools, or sustainability in making 182spending recommendations. Due consideration shall be given to funding proposals benefiting 183environmental justice populations. 184 (f) The council may include in its recommendation to the legislative body a request to set 185aside for later spending funds for specific purposes that are consistent with the definition of a 186local green investment but for which sufficient revenues are not then available in the Local 187Climate Crisis Fund to accomplish that specific purpose or to set aside for later spending funds 188for general purposes that are consistent with the local green investment goals of the council. In 189making recommendations, the council shall consider: (i) combining funds with other sources of 190revenue; (ii) coordinating with other municipalities in purchasing, or in making other 191investments whose impacts may benefit multiple cities or towns; (iii) matching local green 192investment funds with other state or federal grants; or (iv) using funds originating from a city or 193town capital budget, including municipal bonding. The legislative body shall not spend funds 194from the Local Climate Crisis Fund without approval by the council. 195 (g) The council shall not meet or conduct business without the presence of a quorum. A 196majority of the members of the local climate crisis council shall constitute a quorum. The council 197shall approve its actions by majority vote. Recommendations to the legislative body shall include 198their anticipated costs. 199 (h) After receiving recommendations from the local climate crisis council, the legislative 200body shall take such action and approve such appropriations from the Local Climate Crisis Fund 201as set forth in section 5, and such additional non-Local Climate Crisis Fund appropriations as it 11 of 29 202considers appropriate to carry out the recommendations of the council. In the case of a city, the 203ordinance shall provide for the mechanisms under which the legislative body may approve or 204veto appropriations made under this chapter, under the city charter. 205 (i) The local community climate council shall report by source to the executive office, on 206an annual basis, all amounts credited to, and all expenditures from, the Local Climate Crisis 207Fund. The executive office shall establish standard criteria and format for the annual report. 208 Section 5. (a) Notwithstanding the provisions of section 53 of chapter 44 or any other 209general or special law to the contrary, a city or town that accepts sections 3 to 6, inclusive, shall 210establish a separate account to be known as the Local Climate Crisis Fund of which the 211municipal treasurer shall be the custodian. The authority to approve expenditures from the fund 212shall be limited to the legislative body and the municipal treasurer shall pay such expenses under 213chapter 41. Unused funds shall remain in the Local Climate Crisis Fund, and shall not 214automatically revert to the general fund of the city or town at the end of each fiscal year. 215 (b) The following monies shall be deposited in the fund: (i) all funds received from the 216commonwealth or any other source for such purposes; and (ii) additional funds appropriated or 217dedicated from allowable municipal sources referenced under subsection (f) of section 4. The 218treasurer may deposit or invest the proceeds of the fund in savings banks, trust companies 219incorporated under the laws of the commonwealth, banking companies incorporated under the 220laws of the commonwealth which are members of the Federal Deposit Insurance Corporation or 221national banks, or may invest the proceeds in paid up shares and accounts of and in co-operative 222banks or in shares of savings and loan associations or in shares of federal savings and loan 223associations doing business in the commonwealth or in the manner authorized by section 54 of 12 of 29 224chapter 44 of the General Laws, and any income therefrom shall be credited to the fund. The 225expenditure of revenues from the fund shall be limited to implementing the recommendations of 226the local climate crisis council and providing administrative and operating expenses to the 227council. 228 Section 6. (a) Funds made available by the Local Climate Crisis Fund for a city or town 229shall be made available exclusively for a purpose of funding all or part of a local green 230investment, as defined by the secretary, through a process outlined in section 11 of this chapter. 231Whenever possible, funds shall prioritize investments in the area within a city or town designated 232as an environmental justice population, if such a community exists. 233 (b) At the discretion of the secretary, and upon determination of a violation of this 234section, funds not used for the purpose of local green investments shall be returned to the 235Massachusetts Local Climate Crisis Trust Fund or future disbursements from the trust fund to the 236city or town may be reduced by an amount considered appropriate by the secretary. 237 Section 7. (a) There shall be established and set up on the books of the commonwealth a 238separate fund, to be known as the Massachusetts Local Climate Crisis Trust Fund, for the benefit 239of cities and towns that have accepted sections 3 to 6, inclusive. The secretary shall deposit into 240the trust fund 30 per cent of all proceeds collected by market-based mechanisms under clause 241(iii) and clause (iv) of subsection (a) of section 7 of chapter 21N, as well as any other funding 242sources including, but not limited to, state government bonding. The trust fund shall be governed 243according to section 9 of this chapter. 244 (b) The state treasurer shall deposit the Massachusetts Local Climate Trust Fund under 245the provisions of section 8 in such manner as will secure the highest interest rate available 13 of 29 246consistent with the safety of the trust fund and with the requirement that all amounts on deposit 247be available for withdrawal without penalty for such withdrawal at any time. All interest accrued 248and earnings shall be deposited into the trust fund. The trust fund shall be expended solely for the 249administration and implementation of this chapter. Any unexpended balances shall be 250redeposited for future use consistent with the provisions of this chapter. 251 (c) The state treasurer shall make all disbursements and expenditures from the 252Massachusetts Local Climate Trust Fund without further appropriation, as directed by the 253secretary under section 8. The secretary shall report by source all amounts credited to the trust 254fund and all expenditures from the trust fund. The secretary shall assign personnel of the 255department as it may need to administer and manage the trust fund disbursements and any 256expense incurred by the department shall be considered an operating and administrative expense 257of the program. The operating and administrative expenses shall not exceed 5 per cent of the 258annual total revenue received under the provisions of subsection (a) of this section. 259 Section 8. (a) The secretary shall annually on or before November 15th disburse monies 260from the trust fund established in section 7 to a jurisdiction that has: (i) accepted sections 3 to 6, 261inclusive; (ii) notified the secretary of its acceptance; and (iii) whose acceptance has been 262considered sufficient to meet the obligations set forth in sections 3 to 6. The jurisdiction shall 263notify the secretary of the date and all terms on which the legislative body accepted said sections 2643 to 6, inclusive, no later than October 1st to ensure eligibility for funding in the coming year. 265 (b) The secretary shall disburse 60 per cent of the amount available in the trust fund, after 266any disbursements for operating and administrative expenses under subsection (c) of section 7 or 267programmatic expenses under section 10, in a first round distribution known as the standard 14 of 29 268distribution. The secretary shall determine the standard distribution in several steps. The first 269step shall be to divide this amount by the total population of all cities and towns, as determined 270by the most recent decennial census conducted by the United States Census Bureau, who have 271notified the secretary of acceptance and whose acceptance has been considered sufficient. The 272second step shall be to distribute to each city or town accepting the sections 3 to 6, inclusive, an 273amount equal to the population of the city or town multiplied by the amount calculated under 274step one. 275 (c) The secretary shall further divide the remaining 40 per cent of the trust fund in a 276second round distribution, known as the environmental justice distribution. The secretary shall 277determine the environmental justice distribution in several steps. The first step shall be to divide 278the remaining 40 per cent of monies available in the trust fund by the total number of residents in 279Massachusetts who reside in a census block group that is both (i) defined as an environmental 280justice population, under General Law, and (ii) within a jurisdiction whose legislative body has 281accepted sections 3 to 6, inclusive and whose acceptance has been considered sufficient by the 282secretary. The second step shall be to distribute to each city or town an amount equal to the 283amount calculated under step one of this paragraph multiplied by the total population of the city 284or town that resides in a census block group defined as an environmental justice population. 285 (d) The secretary shall determine each participant's total state grant by adding the amount 286received in the first round distribution with the amounts received in any later round of 287distributions. 288 (e) After distributing the Massachusetts local climate crisis trust fund under this section, 289the secretary shall keep any remaining funds in the trust for distribution in the following year. 15 of 29 290 (f) For the purpose of establishing the representation of environmental justice populations 291on local climate crisis councils under section 4, a percentage of each jurisdiction’s Local Climate 292Crisis Fund is considered allocated for environmental justice populations. This percentage is 293calculated as follows; (i) the annual monies allocated to the jurisdiction’s Local Climate Crisis 294Fund as a standard distribution, under subsection (b) or this section, is multiplied by the 295percentage of the jurisdiction’s population that resides within an environmental justice 296population; (ii) the amount calculated under clause (i) of this subsection is added to the annual 297monies allocated to the jurisdiction as an environmental justice distribution, under subsection (c) 298of this section; and (iii) the percentage of the jurisdiction’s Local Climate Crisis Fund allocated 299for environmental justice populations is calculated as the sum derived from clause (ii) of this 300subsection, divided by the total annual monies allocated to that jurisdiction’s Local Climate 301Crisis Fund under section 8. 302 Section 9. The Massachusetts Local Climate Crisis Trust Fund established under section 3037 of this chapter shall be administered by the secretary and the executive office in accordance 304with sections 7 and 8 of this chapter. 305 Section 10. (a) The secretary shall assign personnel of the executive office as it may need 306to administer and manage program implementation. The programmatic, operating and 307administrative expenses shall not exceed 500,000 dollars, and shall be received under the 308provisions of said section 8, or otherwise appropriated, and be under the direction of the 309secretary under this chapter. 16 of 29 310 (b) The executive office shall provide technical assistance and guidance to cities and 311towns with the goal of assisting them in selecting local green investments that reflect the 312preference of the community, meet state climate change goals, and maximize local job creation. 313 (c) To the end specified in subsection (b) of this section, the council may do all of the 314following: (i) establish training and best practice guidelines for seeking public input on local 315green investments; (ii) sponsor conferences, symposia, or other public forums with the goal of 316seeking a broad range of public advice regarding local and regional resource planning, 317sustainable development, and strategies to reduce greenhouse gas emissions and mitigate against 318the impacts of climate change; (iii) provide technical guidance specific to investment options for 319gateway cities, rural communities, or all municipalities, including those with an environmental 320justice population; and (iv) create a list of project types and existing state programs that would 321meet the definition of a local green investment for a given calendar year. 322 (d) The secretary shall prioritize jurisdictions that contain environmental justice 323populations and rural communities when providing outreach, technical assistance, and 324implementation under this section. 325 Section 11. (a) The secretary shall determine the definition of a local green investment 326for the purpose of this chapter. The definition shall balance the following criteria: (i) be 327sufficiently broad so to allow a participating city or town the flexibility in determining a project 328considered necessary to achieving local climate or environmental goals; (ii) where possible, shall 329be consistent with the stated greenhouse gas emissions limits of the commonwealth of 330Massachusetts; (iii) shall be defined to allow funding for projects relating to climate mitigation, 17 of 29 331as well as climate adaptation and climate resilience; and (iv) shall include a requirement of 332public input into the making of a spending recommendation from a local climate crisis council. 333 (b) The definition shall be published no later than December 1st of the year prior to its 334effective date, and shall come with a non-exhaustive list of project types and existing state 335programs that meet the definition for the upcoming calendar year. The secretary shall amend the 336definition every 2 to 5 years. 337 SECTION 4. Chapter 25A of the General Laws, as so appearing, is hereby amended by 338inserting after section 13 the following section:- 339 25A:13B Green Workforce Commission 340 (a) There shall be established on the books of the commonwealth a separate fund to be 341known as the Next Generation Green Workforce Fund. The secretary shall deposit a number 342equal to or greater than 1 per cent but equal to or less than 3 per cent of proceeds collected by 343market-based mechanisms under clause (iii) and clause (iv) of subsection (a) of section 7 of 344chapter 21N. 345 (b) Governance: The green workforce commission shall be created, consisting of a total 346of 9 members: 2 members who shall be chosen by the governor, including at least one member 347representing an environmental justice population, 1 member of the public chosen by the speaker 348of the house of representatives, and 1 member of the public chosen by the president of the state 349senate. Further, 5 members shall be appointed by the president of the Massachusetts AFL-CIO, 350including 4 who meet the following criteria: 1 of whom shall have expertise in the building and 351construction trades; 1 of whom shall have expertise in the utility sector; 1 of whom shall 352represent workers in sectors that may be displaced through advancements in green technologies 18 of 29 353and emissions reduction; and 1 of whom shall represent workers in the public or private services 354sector. A representative from the Massachusetts clean energy center and any other relevant 355agency may serve as a non-voting advisory member of the commission. Members shall make all 356decisions regarding use and maintenance of the Next Generation Green Workforce Fund. 357 (c) The Next Generation Green Workforce Fund shall ensure that workers displaced due 358to emission reductions and advancements in green technology have immediate access to training 359and employment opportunities in green technology and next generation utilities or related fields. 360Whenever possible, the green workforce commission shall focus on providing employment that 361provides comparable working conditions, benefits, living wages, union representation, or job 362protections. Funds shall be used to establish education, training, and support for displaced 363workers and those seeking to enter the green economy, including, but limited to, consideration 364of: (i) education in affected sectors with benefits, wages, and working conditions similar in type, 365amount, and duration to previous employment; (ii) the education of dislocated workers, in 366collaboration with employers of dislocated workers and the relevant labor unions; (iii) the 367establishment and structure of a set-aside fund to assist displaced workers, as outlined in 368subsection (f) of this section, including a workforce transition plan for facility closures and loss 369of employment; and (iv) the expansion of existing programs and development of new programs 370to provide educational and training programs for residents of Massachusetts in clean energy and 371the green economy, including serves aimed at benefiting formerly and currently incarcerated 372individuals. 373 (d) The commission shall appoint an executive director by a majority vote. The executive 374director shall supervise the administrative affairs and general management and operations of the 375commission and also serve as secretary of the commission, ex officio. The executive director 19 of 29 376shall receive a salary commensurate with the duties of the office. The executive director may, 377with the approval of the commission, appoint other officers and employees of the commission 378necessary to the functioning of the commission. The total annual cost of all salaries, benefits, 379operating and administrative expenses paid by commission out of the Next Generation Green 380Workforce Fund shall not exceed 500,000 dollars. 381 (e) The green workforce commission shall identify those workers currently working in 382the energy and related construction and utility sectors, their current wage and benefits packages, 383and their current training requirements and regularly maintain, update, and make publicly 384available those standards. 385 (f) A portion of the Next Generation Green Workforce Fund, not below 20 per cent 386annually, shall be allocated to the Rapid Response Set-Aside Fund, that is part of the Next 387Generation Green Workforce Fund. The Rapid Response Set-Aside Fund shall be administered 388under the direction and discretion of the green workforce commission, and solely for the purpose 389of providing assistance to workers and communities experiencing displacement, loss of tax 390revenue, or other forms of economic loss due to the shrinkage of fossil fuel industries and related 391industries. Unused monies designated in a given year to the Rapid Response Set-Aside Fund 392shall be saved for use in future years. 393 (g) The governor and general court may recommend, under Article LXIII of the 394Amendments to the Constitution, additional monies to be appropriated to the Next Generation 395Green Workforce Fund to fulfil duties specified in this section. 396 SECTION 5. Chapter 25A of the General Laws, as so appearing, is hereby amended by 397inserting after section 13 the following section: 20 of 29 398 25A:13C Household Green Dividend Fund 399 (a) (1) There shall be established on the books of the commonwealth a separate fund to be 400known as the Household Green Dividend Fund. None of the proceeds shall fund government 401operations of the commonwealth, other than to pay for reasonable administrative costs, provided 402they do not exceed 5 per cent of total revenue collected by market-based mechanisms under 403clause (ii) through clause (iv) of subsection (a) of section 7 of chapter 21N, inclusive. 404 (2) The secretary shall deposit, on an annual basis, no more than 50 per cent of total 405revenue collected by market-based mechanisms under clause (ii) and clause (iii) of subsection (a) 406of section 7 of chapter 21N into the Household Green Dividend Fund. This amount must be 407sufficient for the revenue commissioner to fulfill all requirements of the Household Green 408Dividend Fund under this section, with any request of an annual amount over 50 per cent made 409under paragraph (4) of this subsection. 410 (3) The revenue commissioner shall disburse Household Green Dividend Fund proceeds 411directly to households, such that: (i) on an annual basis, no less than 95 per cent of quintile 1 412households shall receive payments greater than their expected increase in energy-related costs 413from market-based mechanisms established under clause (iii) of subsection (a) of section 7 of 414chapter 21N; (ii) on an annual basis, quintile 2 households shall, on average, receive payments 415equal to or greater than the expected increase in energy-related costs from market-based 416mechanisms established under clause (iii) of subsection (a) of section 7 of chapter 21N; and (iii) 417on an annual basis, quintile 1 households and quintile 2 households shall receive sufficient 418payments so as to mitigate, or avoid altogether, any disproportionate and unreasonable financial 21 of 29 419burden that would otherwise be imposed by market-based mechanisms established under clause 420(ii) of subsection (a) of section 7 of chapter 21N. 421 (4) The secretary may deposit greater than 50 per cent of total revenue collected by 422market-based mechanisms under clause (ii) and clause (iii) of subsection (a) of section 7 of 423chapter 21N into the Household Green Dividend Fund, provided that; (i) the governor, in 424consultation with the secretary, submits a formal request to the legislature that states the alternate 425amount to deposit into the Household Green Dividend Fund; and (ii) the legislature formally 426approves the amount requested by a majority vote of the members of the senate and house of 427representatives of the general court. 428 (5) In providing payments, the revenue commissioner shall coordinate with officials of 429the executive office of energy and environmental affairs, the executive office of health and 430human services, the executive office of housing and economic development and other agencies 431in making all reasonable efforts to identify the names and location of residency of all residents, 432with special attention to the names and locations of low-income, homeless, and undocumented 433residents so that they can receive payments expeditiously. 434 (b) Within 90 days of the conclusion of each calendar year, the secretary, in consultation 435with the revenue commissioner, shall submit a report that confirms the required outcomes 436established under subsection (a) of this section have been met for that calendar year. 437 (c) (1) the revenue commissioner shall do at least one of the following: (i) provide 438payments to individuals in quintile 1 households and quintile 2 households in advance of the 439annual heating season; (ii) distribute part or all of the annual expected value of the payments to 440quintile 1 households and quintile 2 households prior to collecting greenhouse gas charges in 22 of 29 441year one, using bond funding authorized under subsection (a) of section 13D of chapter 25A; or 442(iii) otherwise set schedules and methods for distribution of payments that ensure quintile 1 443households and quintile 2 households obtain payments corresponding to the time schedule in 444which they can be expected to be paying for most charges established under section 7 of chapter 44521N. 446 (2) Notwithstanding any general or special law to the contrary, payments distributed 447under this section shall not be counted as income for the purposes of state tax liability or 448determining eligibility for state programs with income limitations. To the degree possible, said 449payments shall not count as income for the purposes of federal tax liability or income limitations 450for federal programs. 451 SECTION 6. (a) Chapter 21N is hereby further amended by striking out section 7, as so 452appearing, and inserting in place thereof the following section: 453 Section 7. (a) The secretary shall promulgate regulations establishing market-based 454compliance mechanisms for the: (i) electricity sector, (ii) transportation sector, (iii) residential, 455commercial, and institutional heating sectors, and (iv) industrial sector; provided, however, that 456the regulations shall, at a minimum, address fuel combustion and significant other sources of 457greenhouse gas emissions associated with industrial processes. The secretary may promulgate 458regulations establishing said market-based compliance mechanisms across multiple sectors 459concurrently. 460 (b) Market-based compliance mechanisms established under this section shall be 461designed to: (i) maximize the ability of the commonwealth to achieve the statewide greenhouse 462gas emissions limits established under this chapter; (ii) ensure that the commonwealth achieves 23 of 29 463the required emissions reductions equitably and in a manner that protects and, where feasible, 464improves the condition of low-income and moderate-income persons and residents of 465environmental justice populations; (iii) measurably reduces the emissions of toxic air 466contaminants, black carbon, and criteria air pollutants, including, but not limited to, emissions of 467nitrogen oxides, sulfur dioxide, and mercury; (iv) identify manufacturing sectors, economic 468sectors, and other economic subsectors at risk of adverse impacts due to such mechanisms and 469mitigate said impacts to the extent possible; (v) address the distinguishing characteristics and 470vulnerabilities of rural, suburban and urban households; and (vi) maximize additional 471environmental and economic benefits for the commonwealth, as appropriate. 472 (c) The executive office and the department may work with the participating regional 473greenhouse gas initiative states, other interested states and Canadian provinces to develop a plan 474to expand market-based compliance mechanisms such as the regional greenhouse gas initiative to 475other sources and sectors necessary or desirable to facilitate the achievement of the statewide 476greenhouse gas emissions limits. 477 (d) The secretary may adopt regulations governing the use of market-based compliance 478mechanisms by regulated entities subject to the statewide greenhouse gas emissions limits and 479mandatory report requirements to achieve compliance with such limits. 480 (e) The executive office shall monitor compliance with and enforce any rule, regulation, 481order, emissions limit, emissions reduction measure or market-based compliance mechanism 482adopted by the secretary or department under this chapter. The department may impose a civil 483administrative penalty under section 16 of chapter 21A for a violation of any rule, regulation, 24 of 29 484order, emissions limit, emissions reduction measure or other measure adopted by the secretary 485under this chapter. 486 (f) The secretary shall study the feasibility of imposing and collecting additional 487greenhouse gas emission charges on emissions attributable to biomass. The report shall include: 488(i) an analysis of the feasibility of calculating a reasonably accurate current statistical baseline, 489specific to the commonwealth, of such emissions; and (ii) a recommendation on the best means 490for implementing emissions charges on biomass. Within 9 months of the effective date of this 491act, the secretary shall submit the report to the public, as well as the house and senate committees 492on ways and means, the joint committee on telecommunications, utilities, and energy, and the 493house and senate committees on global warming and climate change. 494 (g) The department may, in consultation with the secretary, impose an additional 495schedule of fees on regulated sources of greenhouse gas emissions sufficient to recover, for each 496fiscal year, the administrative and implementation costs of chapter 21N. Revenues collected 497under this section shall be deposited in a Global Warming Solutions Act Implementation Fund 498for use, as directed by the legislature or the secretary, solely for the purpose of carrying out 499chapters 21N. 500 SECTION 7. Chapter 25A of the General Laws, as so appearing, is hereby amended by 501inserting after section 13 the following section: 502 25A:13D Green Investment & Infrastructure Bonding Program 503 (a) (1) To meet any immediate expenditures necessary in carrying out sections 13A 504through 13C of chapter 25A, inclusive, or chapter 25D, the state treasurer, upon the request of 505the governor and no later than January 1st 2024, may issue and sell bonds of the commonwealth 25 of 29 506as hereinafter provided in this subsection. The amount of the bonds is to be specified but not 507exceeding in the aggregate 500,000,000 dollars within a given fiscal year. 508 (2) Any such bonds used for purposes outlined in section 13A of chapter 25A shall be 509special obligations of the commonwealth first from monies credited to the Green Infrastructure 510Fund established said section 13A of chapter 25A; provided, however, that notwithstanding any 511general or special law to the contrary, including without limitation section 60A, such bonds shall 512also become general obligations of the commonwealth if the funds from the Green Infrastructure 513Fund established in said section 13A are insufficient to cover bond repayment. 514 (3) Any such bonds used for purposes outlined in section 13B or 13C of chapter 25A or 515chapter 25D shall be considered general obligations of the commonwealth. 516 (4) Bonds established by this subsection may be issued in such manner and on such terms 517and conditions as the state treasurer may determine under this paragraph and, to the extent not 518inconsistent with this paragraph, the General Laws for the issuance of bonds of the 519commonwealth. Bonds may be secured by a trust agreement entered into by the state treasurer, 520with the concurrence of the secretary of administration and finance and the secretary of energy 521and environmental affairs, on behalf of the commonwealth, which trust agreement may pledge or 522assign all or any part of monies credited to the Green Infrastructure Fund and rights to receive 523the same, whether existing or coming into existence and whether held or thereafter acquired, and 524the proceeds thereof. The state treasurer may, with the concurrence of the secretary of 525administration and finance and the secretary of energy and environmental affairs, enter into 526additional security, insurance or other forms of credit enhancement which may be secured on a 527parity or subordinate basis with the bonds. A pledge in any such trust agreement or credit 26 of 29 528enhancement agreement shall be valid and binding from the time such pledge shall be made 529without any physical delivery or further act, and the lien of such pledge shall be valid and 530binding against all parties having claims of any kind in tort, contract or otherwise, whether such 531parties have notice thereof or not. Any such pledge shall be perfected by filing of the trust 532agreement or credit enhancement agreement in the records of the state treasurer and no filing 533need be made under chapter 106. Any such trust agreement or credit enhancement agreement 534may establish provisions defining defaults and establishing remedies and other matters relating to 535the rights and security of the holders of the bonds or other secured parties as determined by the 536state treasurer, including provisions relating to the establishment of reserves, the issuance of 537additional or refunding bonds, whether or not secured on a parity basis, the application of 538receipts, monies or funds pledged under such agreement, the regulation of the custody, 539investment and application of monies and such other matters considered necessary or desirable 540by the state treasurer for the security of such bonds. Any such bonds shall be considered to be 541investment securities under chapter 106, securities in which any public officer, fiduciary, 542insurance company, financial institution or investment company may properly invest funds and 543securities which may be deposited with any public custodian for any purpose for which the 544deposit of bonds is authorized by law. Any such bonds, the transfer of such bonds and the 545income from such bonds, including profit on the sale of such bonds, shall at all times be exempt 546from taxation by and within the commonwealth. The provisions of this section relating to bonds 547shall also be applicable to the issuance of notes insofar as such provisions may be appropriate for 548such notes. 549 (5) In order to increase the marketability of any such bonds or notes issued by the 550commonwealth and in consideration of the acceptance of payment for any such bonds or notes, 27 of 29 551the commonwealth covenants with the purchasers and all subsequent holders and transferees of 552any such bonds or notes that while any such bond or note shall remain outstanding, and so long 553as the principal of or interest on any such bond or note shall remain unpaid: (i) no pledged funds 554shall be diverted from the Green Infrastructure Fund; (ii) in any fiscal year of the commonwealth 555and until an appropriation has been made which is sufficient to pay the principal, including 556sinking fund payments, of and interest on all such bonds and notes of the commonwealth and to 557provide for or maintain any reserves, additional security, insurance or other forms of credit 558enhancement required or provided for in any trust agreement securing any such bonds or notes, 559no pledged funds shall be applied to any other use; and (iii) so long as such revenues are 560necessary, as determined by the state treasurer under any applicable trust agreement or credit 561enhancement agreement, for the purposes for which they have been pledged, and 562notwithstanding any general or special law to the contrary, the rates of the fees collected under 563sections 33 and 34 of chapter 90 and of the excises imposed in chapters 64A, 64E and 64F shall 564not be reduced below the amount in effect at the time of issuance of any such bond or note. 565 (b) (1) All special or general obligation revenue bonds issued under subsection (a) shall 566be designated on their face, Massachusetts Green Recovery Bond, and shall be issued for a 567maximum term of years, not exceeding 30 years, upon the recommendation of the governor; 568provided, however, that all such bonds shall be payable not later than June 30, 2062. 569 (2) All interest and payments on account of special obligations established under 570authority of subsection (a) shall be payable first from the Green Infrastructure Fund under 571section 13A of chapter 25A, and thereafter as a general obligation of the commonwealth. Such 572bonds shall not be included in the computation of outstanding bonds for purposes of the limit 573imposed by the second paragraph of section 60A of said chapter 29 and the debt service with 28 of 29 574respect to such bonds shall not be included in the computation of the limit imposed by section 57560B of said chapter 29. 576 (3) In deciding whether to request the issuance of particular bonds as special obligations, 577the governor shall take into account: (i) generally prevailing financial market conditions; (ii) the 578impact of each approach on the overall capital financing plans and needs of the commonwealth; 579(iii) any ratings assigned to outstanding bonds of the commonwealth and any ratings expected to 580be assigned by any nationally-recognized credit rating agency to the bonds proposed to be 581issued; and (iv) any applicable provisions of a trust agreement or credit enhancement agreement 582entered into under said section 2O of said chapter 29. 583 (d) (1) To meet additional expenditures necessary in carrying out section 13A of chapter 58425A or chapter 25D, the state treasurer, either upon request of the governor or either house of the 585general court, and upon a vote of the yeas and nays of a majority of each house of the the general 586court present and voting on such authorization, shall issue and sell bonds of the commonwealth 587in an amount to be specified but not exceeding in the aggregate 500,000,000 dollars within a 588given fiscal year. 589 (2) All bonds issued by the commonwealth under this subsection shall be designated on 590their face, Massachusetts Green Investment Bond, and shall be issued for a maximum term of 591years, not exceeding 30 years, as the governor may recommend to the general court under 592section 3 of Article LXII of the Amendments to the Constitution. 593 (3) All such bonds shall be payable not later than June 30, 2080. Bonds and interest 594thereon issued under this section shall be general obligations of the commonwealth. All requests 595made under this subsection shall be made prior to August 1, 2050. 29 of 29 596 SECTION 8. (a) The regulations required under clause (ii) and clause (iii) of subsection 597(a) of section 7 of chapter 21N of the General Laws shall be promulgated and in effect not later 598than July 1, 2025. 599 (b) The regulations required under clause (iv) of subsection (a) of section 7 of chapter 60021N of the General Laws shall be promulgated and in effect not later than July 1, 2027.