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SENATE DOCKET, NO. 1924 FILED ON: 1/17/2025
SENATE . . . . . . . . . . . . . . No. 2249
The Commonwealth of Massachusetts
_________________
PRESENTED BY:
Cynthia Stone Creem
_________________
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 relative to a tactical transition to affordable, clean thermal energy.
_______________
PETITION OF:
NAME:DISTRICT/ADDRESS :Cynthia Stone CreemNorfolk and MiddlesexSteven Owens29th Middlesex1/24/2025 1 of 13
SENATE DOCKET, NO. 1924 FILED ON: 1/17/2025
SENATE . . . . . . . . . . . . . . No. 2249
By Ms. Creem, a petition (accompanied by bill, Senate, No. 2249) of Cynthia Stone Creem and
Steven Owens for legislation relative to the future of heat in the Commonwealth.
Telecommunications, Utilities and Energy.
[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE SENATE, NO. 2105 OF 2023-2024.]
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Fourth General Court
(2025-2026)
_______________
An Act relative to a tactical transition to affordable, clean thermal energy.
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 9 of chapter 25 of the General Laws, as so appearing, is hereby
2amended by inserting after the word “gas” the following words:-
3 “, utility-scale non-emitting thermal energy”
4 SECTION 2. Section 1 of chapter 164 of the General Laws, as so appearing, is hereby
5amended by inserting after the definition of “Mitigation” the following definition:-
6 “Non-gas pipe alternative,” a retirement of a gas pipeline, an advanced leak repair of gas
7infrastructure, or an installation of non-emitting thermal infrastructure, including, but not limited
8to, electrification of space heating, that: (i) delays, reduces or avoids the need to construct, 2 of 13
9expand or replace gas infrastructure; and (ii) reduces greenhouse gas emissions as required by
10chapter 21N.
11 SECTION 3. Section 94 of said chapter 164 is hereby amended by inserting at the end of
12the first paragraph the following:-
13 “The department shall not permit a gas company to recover through rates, prices or
14charges the costs of construction, expansion or replacement of gas distribution infrastructure
15unless the gas company demonstrates to the department through its own analysis and through the
16analysis of requests for proposals solicited through a competitive process from independent
17entities that all applicable non-gas pipe alternatives were considered and found to be non-viable
18or cost prohibitive.”
19 SECTION 4. Said section 94 of said chapter 164 is hereby further amended by striking
20out, each time they appear, the words “gas or electricity” and inserting in place thereof, in each
21instance, the following:-
22 “gas, utility-scale non-emitting thermal energy or electricity”
23 SECTION 5. Said section 94 of said chapter 164 is hereby further amended by striking
24out, each time they appear, the words “gas or electric service” and inserting in place thereof, in
25each instance, the following:-
26 “gas service, utility-scale non-emitting thermal energy service or electric service”
27 SECTION 6. Section 106 of said chapter 164 is hereby amended by inserting after the
28word “chapter” the following:- 3 of 13
29 “; provided, that the department shall restrict the injection of any amount of a substitute
30fuel from any source into a gas distribution system that delivers thermal energy to a building
31unless it determines that such substitute fuel: (i) is non-greenhouse gas emitting in its lifecycle;
32(ii) does not pose a safety hazard to persons or property; and (iii) has reliable sources of supply
33that ensure affordability for customers; and provided further, that the department shall prohibit
34the injection of any amount of hydrogen into a gas distribution system that delivers thermal
35energy to a residential, municipal, commercial or other building, except that the department may
36permit the injection of hydrogen produced from a renewable energy generating source, as
37defined in section 11F of chapter 25A, into a gas distribution system that delivers thermal energy
38for an industrial process that is difficult to decarbonize.”
39 SECTION 7. Section 141 of said chapter 164 is hereby amended by inserting at the end
40thereof the following:-
41 (b) In a rate design or other plan for a utility-scale non-emitting thermal energy system
42filed pursuant to this chapter, the department shall approve a merger of the rate base of such
43system with the rate base of gas infrastructure and shall permit cross-subsidization between gas
44ratepayers and utility-scale non-emitting thermal energy system ratepayers.
45 (c) The department shall not approve a rate design that allows gas companies to recover
46the costs of line or main extensions to connect new customers to the gas distribution system. A
47customer requesting new gas service must pay the full capital cost of any such line or main
48extension.
49 SECTION 8. Section 145 of said chapter 164 is hereby amended by inserting at the end
50of subsection (f) the following sentence:- 4 of 13
51 “The percentage of a gas company’s revenue requirement eligible for recovery that a gas
52company spends on projects to replace gas infrastructure shall decrease each year by an amount
53determined by the department until, not later than 2035, 100 percent of the revenue requirement
54eligible for recovery by a gas company is spent on repair or retirement of gas infrastructure and
55on installation of utility-scale non-emitting thermal energy projects and 0 percent of the revenue
56requirement of such company is spent of the replacement of gas infrastructure.”
57 SECTION 9. Said chapter 164, as amended by chapter 239 of the acts of 2024, is hereby
58amended by inserting at the end thereof the following five sections:-
59 Section 152. (a) As used in this section, the following words shall have the following
60meanings unless the context clearly requires otherwise:-
61 “Avoided costs”, for a set of buildings that is or will be connected to a utility-scale non-
62emitting thermal energy system, an estimate of the costs that an electric distribution company
63would have incurred to instead fully electrify the set of buildings’ energy needs by the current
64baseline means other than a utility-scale non-emitting thermal energy system.
65 (b) (1) A gas company and an electric distribution company that share service territory
66shall, not later than October 31 of each year, jointly file with the department a joint tactical
67thermal transition plan to: (i) reduce greenhouse gas emissions in their shared territory in
68compliance with the emissions limits and sublimits established in chapter 21N; (ii) promote
69affordability, including through the maximization of avoided costs and the avoidance of stranded
70assets; and (iii) promote the additional priorities of the department enumerated in section 1A of
71chapter 25. 5 of 13
72 (2) A tactical thermal transition plan shall cover the projected work to be performed by
73street segment over the next 5 years, including, but not limited to: (i) the gas infrastructure to be
74retired and replaced with utility-scale non-emitting thermal energy systems and the avoided costs
75resulting from each such installations of a utility-scale non-emitting thermal energy system; (ii)
76the gas infrastructure to be retired and replaced by other forms of non-emitting thermal energy,
77and the cost, for each street segment, to upgrade the electric system to meet the increased need
78for electricity to serve energy uses formerly served by gas; and (iii) the gas infrastructure to be
79upgraded or replaced with new gas infrastructure, including, but not limited to, aging or leak-
80prone gas infrastructure and projects addressing gas constraints, and the associated costs for each
81street segment. Such a plan shall also include: (i) for each subsequent 5-year period until 2050,
82the projected number of miles of gas pipe to be retired or replaced and the projected reduction in
83greenhouse gas emissions achieved during each 5-year period until 2050; (ii) a plan for the hire,
84retention, and training of an operations and maintenance workforce, in each relevant job
85classification and department, that is sufficient to fulfill the gas company’s obligation to provide
86safe and reliable gas or utility-scale non-emitting thermal energy service through 2050.
87 (3) In developing a tactical thermal transition plan, a gas company and an electric
88distribution company shall solicit recommendations, such as planning scenarios and modeling,
89from the Thermal Transition Advisory Council established in section 153, respond to
90information and document requests from such council and conduct technical conferences and a
91minimum of 2 stakeholder meetings to inform the public, appropriate state and federal agencies
92and companies engaged in the development and installation of energy efficiency measures,
93utility-scale non-emitting thermal energy systems, and other building electrification systems. 6 of 13
94 (c) A gas company and an electric distribution company that share territory shall submit
95their joint tactical thermal transition plan to the Thermal Transition Advisory Council not later
96than 150 days before such gas company and electric distribution company file such plan with the
97department; and provided further, that the Thermal Transition Advisory Council shall return such
98plan to such gas company and electric distribution company with recommendations not later than
9970 days before the companies file such plan with the department.
100 A gas company and an electric distribution company that share territory shall submit their
101joint tactical thermal transition plan, together with a demonstration of the Thermal Transition
102Advisory Council’s review and recommendations, including, but not limited to, a list of each
103individual recommendation, the status of each recommendation, and an explanation of whether
104and why each recommendation was adopted, adopted as modified, or rejected, along with a
105statement of any unresolved issues, to the department in accordance with a schedule determined
106by the department. The department shall promptly consider such plan and shall provide an
107opportunity for interested parties to be heard in a public hearing. The department shall approve,
108approve with modifications, or reject such plan within 60 days of submittal. In order to be
109approved, a plan shall provide net benefits for customers and meet the criteria enumerated in
110subsection (b).
111 (d) The department shall establish and require performance-based rates related to the
112implementation of the tactical thermal transition plans described in subsections (b). Such
113performance-based rates shall prioritize the goals of: (i) reducing greenhouse gas emissions in
114compliance with the limits and sublimits established in chapter 21N; (ii) promoting affordability,
115including through the maximization of avoided costs and the avoidance of stranded assets; and 7 of 13
116(iii) promoting the additional priorities of the department enumerated in section 1A of chapter
11725. In administering such performance-based rates, the department may deny cost recovery.
118 (e) Upon approval by the department of the installation of a utility-scale non-emitting
119thermal energy system by a gas company, the electric distribution company serving the territory
120in which the system will be installed shall determine the avoided costs. The electric distribution
121company shall recover from its ratepayers a portion, determined by the department, of the
122avoided costs and shall transfer not less than 70 percent of such recovered avoided costs to the
123relevant program administrator of the energy efficiency program established pursuant to section
12421 of chapter 25; provided, that the program administrator shall expend such funds on building
125retrofits and appliance replacements for customers that are connected to such utility-scale non-
126emitting thermal energy system; and provided further, that in expending such funds, the program
127administrator shall give priority to low- and moderate-income customers.
128 (g) To avoid duplicative infrastructure and stranded assets and to maintain affordability,
129if a gas company offers utility-scale non-emitting thermal energy to all customers on a street
130segment, the gas company shall be considered to have met the essential thermal energy service
131needs of all customers on such street segment.
132 (h) In any plan or other filing by a gas company that includes the installation of a utility-
133scale non-emitting thermal energy system or any other type of non-gas pipe alternative, the gas
134company shall include a plan to provide training and continued employment at pre-existing
135wages and benefits to workers employed by such gas company whose jobs would otherwise be
136affected by a transition from gas infrastructure to utility-scale non-emitting thermal energy
137infrastructure or other non-gas pipe alternatives. 8 of 13
138 (i) The department shall promulgate such regulations as are necessary to implement this
139section.
140 Section 153. (a) There shall be a Thermal Transition Advisory Council to consist of the
141executive director of the office of energy transformation, or a designee, who shall serve as chair;
142the commissioner of energy resources, or a designee; the attorney general, or a designee; the
143executive director of the Massachusetts clean energy technology center, or a designee; 12
144members to be appointed by the governor, 1 of whom shall be a representative of middle-income
145and low-income residential consumers, 1 of whom shall be a representative from a local agency
146administering the low-income weatherization assistance program, 1 of whom shall be a
147representative of the environmental advocacy community, 1 of whom shall be a representative of
148the thermal transition advocacy community, 1 of whom shall be a representative of an
149environmental justice community organization, 1 of whom shall be a representative of the energy
150efficiency industry, 1 of whom shall be a representative of the utility-scale non-emitting thermal
151energy industry, 1 of whom shall be a representative of the building electrification industry, 1 of
152whom shall be a representative of the thermal energy workforce, 1 of whom shall be a
153representative of the gas workforce, 1 of whom shall be a representative of municipal or regional
154interests, 1 of whom shall have technical and engineering expertise in utility-scale non-emitting
155thermal energy systems, 1 of whom shall be a representative of businesses, including large
156commercial and industrial end-use customers, and 1 member from each gas company and electric
157distribution company operating in the commonwealth, who shall serve as non-voting members.
158Members shall serve for terms of 5 years and may be reappointed.
159 (b) The council shall review and provide recommendations on tactical thermal transition
160plans developed pursuant to section 152. The council shall encourage least-cost investments in 9 of 13
161the transition of gas distribution customers to sources of non-emitting thermal energy, with the
162goals of: (i) reducing greenhouse gas emissions in compliance with the limits and sublimits
163established in chapter 21N; (ii) promoting affordability, including through the maximization of
164avoided costs and the avoidance of stranded assets; and (iii) promoting the additional priorities of
165the department enumerated in section 1A of chapter 25.
166 (c) The council shall annually submit to the department a proposal regarding the level of
167funding required for the retention of expert consultants and reasonable administrative costs. The
168department shall approve such proposals either as submitted or as modified by the department.
169The department shall allocate funds sufficient for these purposes from the natural gas and electric
170energy efficiency funding authorized under section 19 of chapter 25; provided, however, that
171such allocation shall not exceed 1 per cent of such funding on an annual basis. The consultants
172retained under this section shall be experts in energy efficiency, utility-scale non-emitting
173thermal energy, building electrification, or energy finance, and shall be independent.
174 Section 154. (a) A city or town may, by vote of a majority of the city council or by vote
175of a majority of the select board, establish a clean energy utility: (i) that owns and installs, within
176the city or town, solar energy systems that qualify as class I net metering facilities, as defined in
177section 138, and energy storage system with nameplate capacities that are equal to or less than 25
178kilowatts, on private property with the permission of the private property owner, and that sells
179the electricity produced or stored by such systems to customers located on the same property as
180such systems; and (ii) that owns and installs, within the city or town, utility-scale non-emitting
181thermal energy systems, on public property or on private property with the permission of the
182private property owner, and sells the thermal energy produced by such systems to customers
183directly connected to such systems. 10 of 13
184 (b) The department, in consultation with the department of energy resources, shall require
185an electric distribution company to implement consolidated billing on solar energy systems and
186battery storage facilities installed pursuant to subsection (a). In implementing consolidated
187billing, an electric distribution company shall apply the net value of the bill credit directly to the
188account of a customer and shall remit directly to the city or town such portion of the payment
189allocated to such city or town. The net value of the bill credits an electric distribution company
190applies to an account of a customer may be calculated in a manner determined by the
191department.
192 (c) The department shall promulgate such regulations as are necessary to implement this
193section.
194 Section 155. To promote and facilitate the safe, efficient and affordable development of
195utility-scale non-emitting thermal energy systems throughout the commonwealth and to ensure
196that thermal energy is managed for the public trust, the department shall promulgate regulations
197governing the installation, construction, operation and maintenance of utility-scale non-emitting
198thermal energy systems, except those that are installed and operated wholly on private property.
199 Section 156. (a) As used in this section, the following words shall have the following
200meanings unless the context clearly requires otherwise:-
201 “Electrification project”, a method of providing a set of gas customers with suitable non-
202emitting thermal energy that does not involve utility-scale infrastructure. Such a method may
203include, but shall not be limited to, the replacement of gas appliances with electric appliances,
204energy efficiency measures, and demand flexibility measures to alter energy consumption. 11 of 13
205 (b) (1) On or before January 1, 2027, the department shall designate priority
206neighborhood electrification zones. In designating the such zones, the department shall consider
207factors that include, but are not limited to, the following: (i) the tactical thermal transition plans
208approved pursuant to section 152; (ii) the availability of supportive municipal government or
209community partners; (iii) the concentration of low- and moderate-income customers; and (iv) the
210concentration of projects to replace gas distribution pipes pursuant to section 145.
211 (2) The department shall coordinate with relevant agencies to identify non-ratepayer
212funding, such as state and federal funds, that may be used to implement electrification projects in
213priority neighborhood electrification zones.
214 (3) The department may direct a gas company and an electric distribution company, if
215appropriate, to obtain resources for an electrification project from other available programs,
216including, but not limited to, energy efficiency, low-income weatherization, gas system
217enhancement, and distributed generation.
218 (4) The department may update the priority neighborhood electrification zones as
219necessary.
220 (c) (1) On or before January 1, 2027, in a new or existing proceeding, the department, in
221consultation with gas companies and electric distribution companies, shall establish a program to
222facilitate the cost-effective decarbonization of priority neighborhood electrification zones
223through electrification projects.
224 (2) In administering such projects, the department shall establish all of the following: (i) a
225process for a gas company to determine and submit electrification projects for approval by the
226department; (ii) criteria and methodology for determining the cost-effectiveness of electrification 12 of 13
227projects as compared to replacement, repair, or continued operation of the affected asset of the
228gas system; provided, that nonenergy benefits may be considered; and provided further, that the
229cost incurred by a gas company for the electrification project shall be less than the cost that
230would have been incurred had a gas pipe been replaced; (iii) requirements and programs to
231ensure that a substitute for gas service for low-income customers is affordable, adequate,
232efficient, and just and reasonable; (iv) a preference for projects that provide prevailing wages; (v)
233a requirement that a gas company recover costs related to a project that are deemed just and
234reasonable and a requirement that prohibits a gas company from recovering behind-the-meter
235costs associated with a project as capital costs that are afforded a rate of return; and (vi) the
236appropriate rate of return and recovery period that a gas company is eligible to receive for its
237costs to implement an electrification project; provided, that a gas company shall not receive
238ratepayer funding for the costs of an electrification project that are covered by incentives under
239federal, state, or local laws.
240 (3) To avoid duplicative infrastructure and stranded assets and to maintain affordability,
241if a gas company implements an electrification project pursuant to subsection (c) and offers
242suitable substitute energy service to all customers in the priority neighborhood electrification
243zone, the gas company shall be considered to have met the essential thermal energy service needs
244of all customers within such priority neighborhood electrification zone.
245 (d) (1) Beginning on January 1, 2030, the department, in a new or existing proceeding,
246shall review the efficacy of the electrification projects established pursuant to subsection (c) in
247providing benefits to customers of a gas company and in assisting the commonwealth in
248achieving compliance with the statewide greenhouse gas emission limits and sublimits 13 of 13
249established under chapter 21N. On or before March 1, 2031, the department shall submit to the
250relevant committees of the general court a report on the review.
251 (2) On or before March 1, 2027, and on or before March 1 of each year thereafter, the
252department shall submit a progress report to the relevant committees of the general court
253summarizing the findings of the electrification projects, including the locations of the projects,
254the number of customers affected, the costs of the projects, the funding used to pay for the
255projects, any assistance provided to customers, and any outcomes, challenges, and
256recommendations.