1 of 1 SENATE DOCKET, NO. 2468 FILED ON: 1/17/2025 SENATE . . . . . . . . . . . . . . No. 2282 The Commonwealth of Massachusetts _________________ PRESENTED BY: Dylan A. Fernandes _________________ 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 advancing the clean energy transition. _______________ PETITION OF: NAME:DISTRICT/ADDRESS :Dylan A. FernandesPlymouth and BarnstableSteven Owens29th Middlesex2/24/2025 1 of 15 SENATE DOCKET, NO. 2468 FILED ON: 1/17/2025 SENATE . . . . . . . . . . . . . . No. 2282 By Mr. Fernandes, a petition (accompanied by bill, Senate, No. 2282) of Dylan A. Fernandes and Steven Owens for legislation to create new divisions with the Division of Energy Resources to advance clean energy transition. Telecommunications, Utilities and Energy. The Commonwealth of Massachusetts _______________ In the One Hundred and Ninety-Fourth General Court (2025-2026) _______________ An Act advancing the clean energy transition. 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 2 of chapter 25A of the General Laws, as appearing in the 2022 2Official Edition, is hereby amended by striking the second paragraph and inserting in place 3thereof the following paragraph:- 4 There shall be within the department: (i) a division of energy efficiency, which shall 5work with the department of public utilities regarding energy efficiency programs; (ii) a division 6of renewable and alternative energy development, which shall oversee and coordinate activities 7that seek to maximize the installation of renewable and alternative energy generating sources that 8will provide benefits to ratepayers, advance the production and use of biofuels and other 9alternative fuels as the division may define by regulation and administer the renewable portfolio 10standard and the alternative portfolio standard; (iii) a division of green communities, which shall 11serve as the principal point of contact for local governments and other governmental bodies 12concerning all matters under the jurisdiction of the department of energy resources, excluding 2 of 15 13matters involving the siting and permitting of small clean energy infrastructure facilities; (iv) a 14division of clean energy siting and permitting, which shall establish standard conditions, criteria 15and requirements for the siting and permitting of small clean energy infrastructure facilities by 16local governments and provide technical support and assistance to local governments, small 17clean energy infrastructure facility project proponents and other stakeholders impacted by the 18siting and permitting of small clean energy infrastructure facilities at the local government level; 19and (v) a division of clean energy procurement, which shall develop resource solicitation plans, 20administer procurements for clean energy generation and energy services and negotiate and 21manage contracts with clean energy generation and energy service facilities as required by 22section 21. Each division shall be headed by a director appointed by the commissioner and who 23shall be a person of skill and experience in the field of energy efficiency, renewable energy or 24alternative energy, energy regulation or policy and land use and planning, respectively. The 25directors shall be the executive and administrative heads of their respective divisions and shall be 26responsible for administering and enforcing the law relative to their division and to each 27administrative unit thereof under the supervision, direction and control of the commissioner. The 28directors shall serve at the pleasure of the commissioner, shall receive such salary as may be 29determined by law and shall devote full time during regular business hours to the duties of the 30office. In the case of an absence or vacancy in the office of a director or, in the case of disability 31as determined by the commissioner, the commissioner may designate an acting director to serve 32as director until the vacancy is filled or the absence or disability ceases. The acting director shall 33have all the powers and duties of the director and shall have similar qualifications as the director. 34 SECTION 2. Section 6 of said chapter 25A is hereby amended by inserting after 35subsection (14) the following subsection: 3 of 15 36 (15) develop resource solicitation plans, conduct procurements pursuant to such plans as 37approved by the department of public utilities and negotiate and execute contracts with clean 38energy generation and energy services providers pursuant to section 21. 39 SECTION 3. Section 21 of said chapter 25A is hereby further amended by repealing 40subsections (k) through (o), inclusive. 41 SECTION 4. Said chapter 25A is hereby further amended by adding the following 42section:- 43 Section 22. (a) As used in this section, the following words shall have the following 44meanings unless the context clearly requires otherwise: 45 “Clean energy generation”, electrical energy output, or that portion of the electrical 46energy output, excluding any electrical energy utilized for parasitic load of a clean existing 47generation unit, that qualifies under clean energy standard regulations established pursuant to 48subsection (c) of section 3 of chapter 21N. 49 “Clean energy solicitation”, a competitive solicitation for clean energy associated 50environmental attributes or energy services completed by the department conducted pursuant to 51this section. 52 “Distribution company”, a distribution company as defined in section 1 of chapter 164. 53 “Energy services”, operation of infrastructure that increases the deliverability or 54reliability of clean energy generation or reduces the cost of clean energy generation, including, 55but not limited to, transmission, energy storage and demand response technologies. 4 of 15 56 “Environmental attributes”, all present and future attributes under any and all 57international, federal, regional, state or other law or market, including, but not limited to, all 58credits or certificates that are associated, either now or by future action, with unit specific clean 59energy generation, including, but not limited to, those provided for in regulations promulgated 60pursuant to subsection (c) of section 3 of chapter 21N and sections 11F and 17. 61 “Long-term contract” a contract for a period of not more than 20 years. 62 (b) Notwithstanding any general or special law to the contrary, in order to maximize the 63commonwealth’s ability to achieve compliance with limits and sublimits established pursuant to 64sections 3 and 3A of chapter 21N, the department shall investigate the necessity, benefits and 65risks of solicitations for environmental attributes or energy services, competitively solicit for 66environmental attributes or energy services established pursuant to said sections 3 and 3A of said 67chapter 21N and may negotiate and enter into long-term contracts for such environmental 68attributes or energy services. 69 (c) Not less than every 3 years, the department shall publish a resource solicitation plan, 70which shall include, but not be limited to: (i) a description of the clean energy generation needs 71sufficient to maximize the commonwealth’s ability to achieve compliance with limits and 72sublimits established pursuant to sections 3 and 3A of chapter 21N, including resource 73generation type, nameplate capacity amounts and commercial operation dates for new resources; 74(ii) a schedule recommendation for clean energy solicitations that the department will conduct 75within the next 3 years; (iii) economic development objectives and requirements for the clean 76energy solicitations; (iv) a mechanism for the distribution companies to recover the costs 77associated with long-term contracts for clean energy associated environmental attributes or 5 of 15 78energy services entered into by the department under this section, including any administrative 79costs to support the department’s requirements under this section; and (v) a review of the 80previous clean energy solicitations, if applicable. The department shall consult with the 81department of public utilities and attorney general’s office in the development of this resource 82plan in advance of publishing it. Any ex parte rules established by the department of public 83utilities shall not apply to this consultation process. 84 (d) The department shall file the resource solicitation plan and its recommendations with 85the department of public utilities. The department of public utilities shall review the resource 86solicitation plan and recommendations to determine whether the resource solicitation plan is a 87reasonable, appropriate and cost-effective mechanism to achieve the goals of this section. The 88department of public utilities shall approve, approve with modifications or reject the plan within 897 months of submission. Upon approval of the resource solicitation plan, the department of 90public utilities shall require the distribution companies to jointly propose tariffs consistent with 91the approved resource solicitation plan to recover costs associated with all contracts pursuant to 92this section not later than 3 months following the approval; provided, however, that the 93distribution companies shall not receive any remuneration, benefit or fee to compensate for costs 94associated with such contracts. The tariffs shall apportion costs associated with the contracts to 95be recovered from ratepayers among the distribution companies. 96 (e) The method for the clean energy solicitations shall be proposed by the department and 97shall utilize a competitive bidding process. The department shall consult with the attorney 98general regarding the choice of solicitation methods. The department may coordinate any 99solicitation under this section with other states, municipal light plants or other governmental and 100non-governmental organizations; provided, however, that the department shall describe any 6 of 15 101impacts coordination may have on the solicitation, including any impacts to nameplate capacity 102amounts or quantities of clean energy generation attributes sought in its solicitation. After notice 103and the opportunity for public comment, the department shall proceed with the clean energy 104solicitation. The department may competitively solicit proposals for long-term contracts for: (i) 105environmental attributes from clean energy generation; or (ii) energy services contracts. The 106department may consult with other states, federal agencies and regional organizations, including, 107but not limited to, ISO New England Inc. or its successor; provided, however, that reasonable 108proposals have been received, the department shall make or cause to be made filings as necessary 109through the appropriate jurisdictional mechanism and enter into long-term contracts that are 110consistent with the roadmap plans published pursuant to chapter 21N. 111 (f) The department shall propose draft contracts and take all reasonable actions to 112structure the contracts, pricing or administration of the products purchased under this section to 113contribute towards achieving compliance with limits and sublimits established pursuant to 114sections 3 and 3A of chapter 21N in a cost-effective manner that minimizes rate-payer impacts. 115 (g) Long-term contracts executed pursuant to this section shall be subject to the approval 116of the department of public utilities. The department of public utilities shall consider the 117potential costs and benefits of the proposed long-term contract and shall approve a long-term 118contract if the department finds that the contract is cost-effective and consistent with the 119roadmap plans published pursuant to chapter 21N, taking into account the factors outlined in this 120section, consistency with the approved resource solicitation plan and the department’s 121recommendations. The department of public utilities shall complete its review of long-term 122contracts submitted for its approval not later than 90 days after the contracts are filed by the 123department of energy resources. 7 of 15 124 (h) The department may retire any environmental attributes purchased pursuant to 125approved long-term contracts under this section on behalf of the commonwealth to be used 126toward satisfying compliance with the limits and sublimits established pursuant to sections 3 and 1273A of chapter 21N and any regulations or programs established pursuant to sections 3 and 6 of 128said chapter 21N or sections 11F and 17. If any retired environmental attributes are eligible 129under a clean, renewable, clean peak or other energy portfolio standard established by the 130department or the department of environmental protection, the portfolio standard minimum 131obligations of suppliers subject to such standards may be reduced in proportion to any eligible 132environmental attributes retired pursuant to this section, subject to the discretion of the 133department and the department of environmental protection. 134 (i) There shall be a separate, non-budgeted special revenue fund known as the central 135procurement fund, which shall be administered by the department, without further appropriation, 136for funding long-term contracts consistent with this section. The fund shall be credited with: (i) 137funds or revenue collected by distribution companies pursuant to a tariff approved by the 138department of public utilities in furtherance of the objectives and requirements of this section; 139(ii) revenue from appropriations or other money authorized by the general court and specifically 140designated to be credited to the fund; (iii) interest earned on such funds or revenues; (iv) bid fees 141collected by the department from participants in clean energy solicitations conducted pursuant to 142this section; (v) other revenue from public and private sources, including gifts, grants and 143donations; and (vi) any funds provided from other sources. All amounts credited to the fund shall 144be used solely for activities and expenditures consistent with the public purposes of this section, 145including the ordinary and necessary administrative and personnel expenses of the department 146related to the administration and operation of the fund and performance of the duties established 8 of 15 147by this section. Revenues deposited in the fund that are unexpended at the end of a fiscal year 148shall not revert to the General Fund and shall be available for expenditure in the following fiscal 149year. No expenditure made from the fund shall cause the fund to be in deficit at any point. 150 (j) A request for proposal or solicitation under this section shall include: 151 (i) documentation reflecting the applicant’s demonstrated commitment to workforce or 152economic development within the commonwealth; 153 (ii) a statement of intent concerning efforts that the applicant and its contractors and 154subcontractors will make to promote workforce or economic development through the project; 155 (iii) documentation reflecting the applicant’s demonstrated commitment to expand 156workforce diversity, equity and inclusion in its past projects within the commonwealth; 157 (iv) documentation as to whether the applicant and its contractors and subcontractors 158participate in a state or federally certified apprenticeship program and the number of apprentices 159the apprenticeship program has trained to completion for each of the last 5 years; 160 (v) a statement of intent concerning how or if the applicant and its contractors and 161subcontractors intend to utilize apprentices on the project; 162 (vi) documentation relative to the applicant and its contractors and subcontractors 163regarding their history of compliance with chapters 149, 151, 151A, 151B and 152, 29 U.S.C. § 164201, et seq. and applicable federal antidiscrimination laws; 165 (vii) documentation that the applicant and its contractors and subcontractors are currently, 166and will remain, in compliance with chapters 149, 151, 151A, 151B, and 152, 29 U.S.C. § 201, 167et seq. and applicable federal anti-discrimination laws for the duration of the project; 9 of 15 168 (viii) documentation of the applicant’s history with picketing, work stoppages, boycotts 169or other economic actions against the applicant and a description or plan on how the applicant 170intends to prevent or address such actions; and 171 (ix) documentation relative to whether the applicant and its contractors have been found 172in violation of state or federal safety regulations in the previous 10 years. 173 The department may require a wage bond or other comparable form of insurance in an 174amount to be set by the department to ensure compliance with law, certifications or department 175obligations. 176 (k) A proposal or solicitation issued by the department shall notify applicants that 177applicants shall be disqualified from the project if the applicant has been debarred by the federal 178government or commonwealth for the entire term of the debarment. 179 (l) An applicant shall, in a timely manner, provide documentation and certifications as 180required by law or otherwise directed by the department. Incomplete or inaccurate information 181may be grounds for disqualification, dismissal or other action deemed appropriate by the 182department. 183 (m) Applicants that demonstrate compliance with sections 26 to 27F, inclusive, of chapter 184149 and the use of state or federally certified apprenticeship programs, shall receive added 185weight in clean energy solicitations under subsection (e). 186 SECTION 5. Said Chapter 25A is hereby amended by inserting after Section 17 a new 187section as follows: 10 of 15 188 Section 17A: (a) The department of energy resources may develop a statewide energy 189storage incentive program to encourage the continued development of energy storage resources 190connected to the electric distribution system throughout the commonwealth. The department 191shall, after notice and the opportunity for public comment, promulgate rules and regulations 192implementing an energy storage incentive program which: (i) promotes the orderly transition to a 193stable and self-sustaining energy storage market at a reasonable cost to ratepayers; (ii) considers 194underlying system costs, including but not limited to storage costs, balance of system costs, 195installation costs and soft costs; (iii) takes into account any federal or state incentives; (iv) 196minimizes direct and indirect program costs and barriers; (v) considers environmental benefits, 197energy demand reduction, distribution system benefits and other avoided costs provided by 198energy storage resources; (vi) encourages energy storage resource deployment where it can 199provide benefits to the distribution system; (vii) ensures that the costs of the program are shared 200collectively among all ratepayers of the distribution companies; and (viii) promotes stakeholder 201confidence through long-term incentive revenue certainty and market stability. 202 (b) Attributes, as defined by the department of energy resources, of the energy storage 203resources receiving incentives pursuant to this section shall be eligible for use by retail electric 204suppliers pursuant to their obligations pursuant to said section 17 of said chapter 25A. 205 (c) The department may hire additional staff to implement said energy storage incentive 206program. These positions may be funded from one or more sources including but not limited to 207the following: (i) appropriation, (ii) grants, or (iii) receipts of alternative compliance payments 208made pursuant to section 17 of chapter 25A of the general laws. 11 of 15 209 SECTION 6. Chapter 25A of the General Laws, as appearing in the 2022 Official 210Edition, is hereby amended by adding the following section: 211 Section 23. The department shall utilize programs established pursuant to section 11 of 212Chapter 75 of the Acts of 2016 and authority granted under Section 4 of this Act to achieve a 213minimum goal of 10 gigawatts (GW) of solar measured in alternating current (AC) deployed in 214the commonwealth by 2035. The secretary shall ensure that annual solar deployment in the 215commonwealth increases at a pace sufficient to meet the 2050 statewide emissions limit of net 216zero greenhouse gas emissions established by the secretary on December 21, 2022. 217 SECTION 7: Section 92B of Chapter 164 of the General Laws is hereby amended by 218inserting the following subsection after subsection (e): 219 (f) Any submission to the department of a capital investment project proposal under the 220provisional program, as established by the department in 2021 and extended by the department in 221its electric sector modernization plan approval in 2024, shall be approved, denied, or approved 222with modifications by the department within 120 days of its submission. 223 SECTION 8. Chapter 164 of the General Laws is hereby amended by inserting after 224section 92C the following section: 225 Section 92D. (a) The department shall establish an office of a distributed generation and 226clean energy ombudsperson to, at a minimum, facilitate the efficient interconnection of 227distributed generation and implementation of proactive long-term system planning and cost 228allocation for interconnection of distributed generation. The office of the ombudsperson shall be 229staffed by a distributed generation and clean energy ombudsperson, a deputy ombudsperson, and 230two or more individuals, one of whom shall be an expert in the standards for interconnection of 12 of 15 231distributed generation tariff and related department precedent and one of whom shall be an 232expert in technical solutions and standards for interconnecting distributed generation customers. 233The department shall develop a table of civil penalties that the ombudsperson may recommend 234that the department impose upon a finding that a distribution company has intentionally or 235negligently violated a rule, regulation or tariff provision, or that the company has exhibited a 236pattern or history of violating such rule, regulation or tariff provisions. In considering penalties 237under this section, the ombudsperson and the department shall consider the severity of the 238violation, the financial impact upon the distribution customer or customers, the distribution 239company’s history of violations, the sufficiency of the distribution company’s customer service 240relevant to the dispute, and other relevant factors at the discretion of the ombudsperson. The 241department may direct that all or a portion of a penalty take the form of restitution to be paid to 242an affected distribution customer. 243 (b) Distributed generation interconnection working groups, for the purpose of considering 244improvements to interconnection tariffs and interconnection technical standards and processes, 245are essential to meeting the Commonwealth’s clean energy goals. To facilitate effective 246utilization of distributed generation interconnection working groups, the office of the 247ombudsperson shall develop a detailed process for stakeholder working groups in the 248Commonwealth dedicated to the interconnection of distributed generation to submit to the 249department and have considered consensus and non-consensus findings. This process shall 250include an expedited track for consensus findings. The department or the office of the 251ombudsperson shall act on each submission within six months. 252 (c) The department shall direct the distribution companies to contract with a third-party to 253assist in administrative facilitation of stakeholder working groups in the Commonwealth 13 of 15 254dedicated to the interconnection of distributed generation. The hiring process shall be conducted 255by the Chairs and Vice Chairs of the working groups. The facilitator shall assist the working 256groups with agendas, meeting minutes, website maintenance, establishing and revising operating 257procedures and bylaws, coordinating written information exchanges and developing summary 258informational packages for submission to the department. The contract with the third-party 259facilitator must clearly indicate that the relationship of the facilitator with the working groups 260shall be managed by the Chairs and Vice Chairs of the working groups. 261 (d) The department shall provide a process for working groups in the Commonwealth 262dedicated to the interconnection of distributed generation to fund the engagement of consultants 263for support discussion of substantive topics. 264 (e) To support interconnection of distributed energy resources by diminishing the risk to 265interconnecting customers of multi-year interest carrying costs associated with interconnection 266deposits and in furtherance of the Commonwealth’s clean energy mandates, effective 267immediately, the electric distribution companies shall accept a surety bond or letter of credit in 268lieu of cash, at the discretion of the interconnecting customer, for common system modification 269payments required under an interconnection service agreement to commence construction of 270required electric power system upgrades. 271 (f) Flexible interconnection is a process by which an electric distribution company 272provides an alternative interconnection solution to a distributed generation facility allowing for 273interconnection based on an agreed upon curtailment schedule. In recognition that flexible 274interconnection is likely to provide opportunity for reduced interconnection costs, expedited 275interconnection process, and increased network utilization, the department shall direct the 14 of 15 276electric distribution companies to develop a proposal for a flexible interconnection program to be 277established in the Commonwealth. The electric distribution companies shall file a proposed 278model tariff provision or tariff revision with the department to implement a uniform program for 279flexible interconnection within six months of the effective date of this act. The department shall 280conduct a proceeding to investigate the flexible interconnection proposal, and within one year of 281the effective date of this act issue an order establishing a uniform flexible interconnection 282program. 283 (g) The electric distribution companies shall take the following procedural steps prior to 284filing a flexible interconnection program proposal with the department: 285 i. Convene a flexible interconnection stakeholder working group facilitated by one 286distributed generation industry member and one electric distribution company member and 287including (a) two representatives from each electric distribution company, (b) one or more 288representatives from each of the department of energy resources and the office of the attorney 289general, and (c) six representatives from the distributed generation industry. 290 ii. Attend and participate in bimonthly working group meetings. 291 iii. Present a draft joint model tariff provision or tariff revisions to the working group 292within three months of the effective date of this act. 293 iv. Accept written and oral comments on that draft and allow stakeholders to submit 294alternative language or proposed modifications. 295 v. Develop consensus language among that group, to the extent possible. 15 of 15 296 vi. Include in their filing with the Department any alternative proposal which is supported 297by six or more group members along with a summary and explanation of that proposal prepared 298by supportive group members.