1 of 1 SENATE DOCKET, NO. 1188 FILED ON: 1/15/2025 SENATE . . . . . . . . . . . . . . No. 2294 The Commonwealth of Massachusetts _________________ PRESENTED BY: Jason M. Lewis _________________ To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General Court assembled: The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: An Act relative to building energy and decarbonization. _______________ PETITION OF: NAME:DISTRICT/ADDRESS :Jason M. LewisFifth MiddlesexManny Cruz7th Essex2/12/2025 1 of 10 SENATE DOCKET, NO. 1188 FILED ON: 1/15/2025 SENATE . . . . . . . . . . . . . . No. 2294 By Mr. Lewis, a petition (accompanied by bill, Senate, No. 2294) of Jason M. Lewis and Manny Cruz for legislation relative to building energy and decarbonization. Telecommunications, Utilities and Energy. [SIMILAR MATTER FILED IN PREVIOUS SESSION SEE SENATE, NO. 2144 OF 2023-2024.] The Commonwealth of Massachusetts _______________ In the One Hundred and Ninety-Fourth General Court (2025-2026) _______________ An Act relative to building energy and decarbonization. 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. Said section 10 of said chapter 25A is hereby further amended by inserting 2after subsection (c) the following new subsection:- 3 (c ½ ) To qualify as a green plus community, a municipality or other governmental body 4shall: (1) file an application with the division in a form and manner to be prescribed by the 5division; (2) establish a greenhouse gas emissions baseline inventory for residential, commercial 6and industrial buildings sited within the municipality, which may also include transportation, 7waste, and other sources of emissions within the municipality; (3) put in place a comprehensive 8plan whose implementation begins within 1 year from the date of initial participation in the 9program, designed to reduce the greenhouse gas emissions baseline inventory by a percentage 10approved by the division that is not less than 20 per cent within 5 years of initial participation in 2 of 10 11the program; (4) adopt the municipal opt-in specialized stretch energy code established in 12subsection 14 of Section 6 of chapter 25A; and (5) fulfill qualifications subsection 2 through 6 13inclusive of the green community program as described in section (c) or be served by a 14municipal lighting plant. 15 Preference shall be given to those municipalities that include additional sources of 16emissions within their greenhouse gas emissions baseline inventory. Not later than one year after 17the adoption of this section, the division shall adopt a tracking system for community-wide 18greenhouse gas emissions, to include but not be limited to the building, transportation, energy, 19land use, and waste sectors, that can be used by municipalities. The secretary may adapt these 20requirements based on a written finding that due to unusual circumstances, a municipality cannot 21reasonably meet all of the requirements and the municipality has committed to alternative 22measures that advance the purposes of the green plus communities program as effectively as 23adherence to the requirements. 24 SECTION 2. Said section 10 of said chapter 25A is hereby further amended in subsection 25(d) by striking the figure “20,000,000” and inserting in place thereof the following:- 26 “40,000,000 with not less than $10,000,000 going to green plus communities”. 27 SECTION 3. Section 20 of said chapter 25A is hereby amended by adding after “ 28''Building'', a building or multiple buildings on a parcel, or any grouping of buildings designated 29by the department as an appropriate reporting unit for the purposes of this section.” the 30following:- 3 of 10 31 “building emissions”, greenhouse gas emissions as expressed in metric tons of carbon 32dioxide equivalent emitted as a result of operating a covered building and calculated in 33accordance with rules promulgated by the department. 34 “building emissions intensity”, for a covered building, the number obtained by dividing 35the building emissions by the gross floor area for such building, expressed in metric tons of 36carbon dioxide equivalent per square foot per year. 37 SECTION 4. Said section 20 of chapter 25A is hereby amended by adding after section 38(e) the following sections:- 39 (e ¼) The department shall promulgate regulations establishing annual carbon intensity 40limits on building emissions or a building energy performance standard or a combination thereof 41for large buildings in alignment with emissions limits and sublimits established in Chapter 21N. 42The regulations may allow for differences based on building use including commercial and 43industrial properties, residential buildings and other specialized typologies and may exclude 44electric vehicle charging. The building performance limits shall be set for periods of not more 45than five years and emissions limits shall decrease over time at a pace to at least align with 46emissions limits and sublimits established in Chapter 21N. 47 (e ½) The department shall promulgate regulations for alternative methods of compliance 48with building emissions intensity limits, energy use performance standards or a combination 49thereof as established by the department including but not limited to adjustments for the use of 50on-site renewable energy generation, adjustments for special categories of buildings or for 51special use, accommodations or support for buildings housing low- or moderate-income 52occupants, and alternative compliance payments. Alternative compliance payments shall be 4 of 10 53established such that low- and moderate-income households and small businesses are charged 54reduced amounts proportionate with their ability to pay. The division shall also establish fines for 55noncompliance which shall be higher than alternative compliance payments. Both alternative 56compliance payments and fines shall be deposited into the building energy retrofit program trust 57fund established in section 21 of this chapter. 58 (e ¾) Except as otherwise provided in this statute or otherwise provided by regulation, 59after a building is deemed a large building, it shall not exceed the annual building performance 60limits for such building as determined by the department. 61 SECTION 5. Said section 20 of chapter 25A is hereby amended by adding at the end of 62section (g) the following:- 63 “Said materials shall be available in English and in other languages commonly spoken in 64the Commonwealth. Such outreach shall include a list of city, state, federal, private and utility 65incentive programs related to building energy reduction, renewable energy, or building retrofits 66for which buildings reasonably could be eligible.” 67 SECTION 6. Said section 20 of chapter 25A is hereby amended by adding at the end of 68section (i) the following:- 69 “The department shall establish standards for collecting data on large buildings from 70approved municipal programs and shall not require owners of buildings in those municipalities to 71separately report their data to the department. The department shall adopt regulations that allow 72municipalities to adopt their own large building reporting requirements and their own building 73emissions or a building energy performance standard that exceed those reporting requirements 74established pursuant to this section.” 5 of 10 75 SECTION 7. Said chapter 25A is hereby amended by adding after Section 20 the 76following:-- 77 Section 21. (a) There shall be a grant and loan program within the department known as 78the Building Energy and Emissions Retrofit Funding Program, hereafter referred to as the 79program, for the purpose of encouraging and supporting building owners to invest in deep energy 80retrofits and whole-building energy performance upgrades to their properties that reduce 81greenhouse gas emissions, create healthier homes and buildings, and are in alignment with 82achieving the GWSA limits and sublimits established under Chapter 21N. Eligible projects for 83funding shall include pre-weatherization barrier mitigation, pre-electrification barrier mitigation, 84and renewable energy systems, if part of a more comprehensive deep energy retrofit or whole- 85building energy performance upgrade. Conversions from one fossil fuel system to another or 86additions of fossil fuel systems or infrastructure shall not be funded by these programs. 87 The department shall develop the program in consultation with the net zero energy 88building advisory council established in section 23 of this chapter, the executive office of 89housing and livable communities, the department of public utilities, the department of 90environmental protection, the energy efficiency advisory council, the department of public 91health, and the Massachusetts clean energy center. Nothing in this section guarantees an 92individual or corporation a right to the benefits provided in this section. 93 (b) The department shall design and implement the program, which shall include a 94certification process to certify qualified expenses for a grant or loan under this section. 95Applications for the program shall be reviewed and grants or loans shall be awarded on no less 96than an annual basis. 6 of 10 97 (c) The department shall, (i) promote awareness of the program, including through 98coordination with relevant trade groups, community-based organizations, nonprofits, 99municipalities, regional planning agencies, and by integration in economic development 100marketing campaigns; and (ii) adopt measurable goals, performance measures, and an audit 101strategy to assess the utilization and performance of the program. 102 (d) The department shall fund (i) property that is located in an environmental justice 103community as defined in section 62 of chapter 30; (ii) property that is low- or moderate-income 104or rental housing; (iii) property owned by municipalities; and (iv) projects that address 105environmental burdens from air and/or water pollution. 106 (e) The incentives shall be funded, at least in part, by the building energy retrofit program 107trust fund established in section 22 of chapter 25A. To the extent possible, the program shall seek 108to leverage existing state and federal programs including. but not limited to, Massachusetts 109School Building Authority and the Massachusetts public library construction program. 110 (f) The department shall promulgate rules, regulations and guidelines for the 111administration and oversight of this chapter which shall include definitions of deep energy 112retrofit, pre-weatherization barriers, and pre-electrification barriers and may allow for 113municipalities to establish or continue their own municipal program so long as it meets or 114exceeds the greenhouse gas emissions reductions of the Building Energy Retrofit Funding 115Program. The department shall commence awarding funds no later than January 1, 2027. 116 Section 22. (a) The commissioner shall create and administer the building energy retrofit 117program trust fund into which shall be deposited: (i) any revenues or other financing sources 118directed to the fund by appropriation; (ii) bond revenues authorized by the general court and 7 of 10 119designated to be credited to the fund; (iii) any income derived from the investment credited to the 120fund; (iv) funds from public or private sources including, but not limited to, gifts, federal or 121private grants, donations, rebates and settlements received by the commonwealth that are 122designated to be credited to the fund; and (v) all other amounts credited or transferred into the 123fund from any other source. 124 (b) There shall be established upon the books of the commonwealth a separate fund to be 125known as the Building Energy Retrofit Trust Fund. There shall be credited to said fund all 126amounts received through (i) any revenues or other financing sources directed to the fund by 127appropriation; (ii) bond revenues authorized by the general court and designated to be credited to 128the fund; (iii) any income derived from the investment credited to the fund; (iv) funds from 129public or private sources including, but not limited to, gifts, federal or private grants, donations, 130rebates and settlements received by the commonwealth that are designated to be credited to the 131fund; and (v) all other amounts credited or transferred into the fund from any other source. All 132amounts credited to the fund shall be held in trust and shall be available for expenditure, without 133further appropriation, by the department for activities of the department related to section 18 and 134section 19 of this chapter. Any unexpended balance in the fund at the close of a fiscal year shall 135remain in the fund and shall be available for expenditure in the following fiscal year; provided 136however, that the fund shall not be in deficit at the end of any state fiscal year. 137 (c) The operating and administrative expenses shall not exceed 5 per cent of the annual 138total revenue expended from the fund. 139 (d) Annually, not later than December 1 of each year, the commissioner shall report on 140the activities of the fund to the clerks of the house of representatives, the senate and to the house 8 of 10 141and senate committees on ways and means, and the net zero energy building advisory council 142established in section 23 of this chapter. The report shall include an accounting of expenditures 143made from the fund with a description of the purpose of each expenditure, an accounting of 144amounts credited to the fund and any unexpended balance remaining in the fund. 145 Section 23. (a) The commissioner shall establish a net zero energy building advisory 146council which shall review and provide feedback on the implementation of sections 20, 21 and 14722 of this chapter with a focus on supporting development of net zero buildings in the 148commonwealth in alignment with the targets established in chapter 21N. The council shall be 149chaired by the commissioner or a designee and members shall include, but are not limited to: (i) 150The attorney general, or a designee; (ii) at least two residents of environmental justice 151communities as defined in section 62 of chapter 30; (iii) at least two certified minority-owned or 152women-owned small business enterprises that perform clean energy services; (iv) one 153representative of the public institutions of higher education included in section 5 of chapter 15A; 154(v) one representative of the MassHire state workforce board; (vi) one representative of the 155energy efficiency advisory council established in section 22 of chapter 25 who does not represent 156a state agency or utility that is otherwise seated on the council; (vii) one representative of a 157building trade association; (viii) one representative of the labor community; (ix) one residential 158architect; (x) one commercial architect; (xi) one building engineer; (xii) one non-profit that 159specializes in clean energy efficiency research; (xiii) one representative of the low-income 160energy affordability network; (xiv) two representatives of commonwealth cities and towns, one 161rural and one suburban; (xv) one representative of a regional planning agency; and (xvi) one 162expert in land use. 9 of 10 163 Non-voting members shall include the secretary of housing and community development 164or their designee; the commissioner of the department of public health or their designee the 165commissioner of the department of environmental protection or their designee; the CEO of 166Massachusetts Clean Energy Center or their designee; a representative of an investor-owned 167utility, and a representative of a municipal lighting plant or municipal light plant industry 168association. 169 Interested parties shall apply to the commissioner for designation as members. There 170shall be members from each county of the commonwealth represented on the council. In their 171initial appointments, the commissioner shall designate one third of members to serve for one 172year, one third to serve for a term of two years and the remaining third to serve for a term of 173three years and their successors shall serve for terms of three years. 174 The advisory board may convene working groups. Such working groups may include 175individuals external to the advisory board. The commissioner shall invite the appropriate federal, 176state and local agencies and authorities to participate. 177 (b) The advisory council shall meet at least 4 times a year and shall hold at least 2 public 178hearings each year. The council shall review and monitor the recommendations for expenditure 179of grants and programs in the secretariat. In the event the council or members of the council 180disapproves of any such recommendation it may file a report noting its objection with the 181governor, the house and senate committees on ways and means and the joint committee on 182environment, natural resources and agriculture. 183 (c) Not later than December 1 of each year, the Department shall report on the activities 184of the council to the clerks of the house of representatives and the senate, to the house and senate 10 of 10 185committees on ways and means and to the chairs of the joint committee on telecommunications, 186utilities and energy. 187 SECTION 8. Section 23 of Chapter 25A is repealed. 188 SECTION 9. Section 8 of this act shall take effect on January 1, 2030.