1 of 1 SENATE DOCKET, NO. 784 FILED ON: 1/14/2025 SENATE . . . . . . . . . . . . . . No. 675 The Commonwealth of Massachusetts _________________ PRESENTED BY: John C. Velis _________________ 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 to assist municipal and district ratepayers. _______________ PETITION OF: NAME:DISTRICT/ADDRESS :John C. VelisHampden and Hampshire 1 of 4 SENATE DOCKET, NO. 784 FILED ON: 1/14/2025 SENATE . . . . . . . . . . . . . . No. 675 By Mr. Velis, a petition (accompanied by bill, Senate, No. 675) of John C. Velis for legislation relative to the costs imposed upon the municipal and district ratepayers due to public drinking water, wastewater and stormwater systems capital upgrades. Environment and Natural Resources. [SIMILAR MATTER FILED IN PREVIOUS SESSION SEE SENATE, NO. 589 OF 2023-2024.] The Commonwealth of Massachusetts _______________ In the One Hundred and Ninety-Fourth General Court (2025-2026) _______________ An Act to assist municipal and district ratepayers. 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. Whereas, public drinking water, wastewater and stormwater systems are in 2need of major capital upgrades in order to continue to protect public health, safety and the 3environment; and 4 Whereas, the costs for these infrastructure upgrades are significant and increasing each 5year; and 6 Whereas, local ratepayers must pay for most of these upgrades as the Federal and State 7governments have reduced their level of funding assistance to cities, towns and districts; and 2 of 4 8 Whereas, many of the costs for water infrastructure improvements are due to regulatory 9demands by Federal and State environmental agencies; and 10 Whereas, Federal and State regulatory demands on cities, towns and districts do not 11consider compliance costs or assess the value of the benefits derived; and 12 Whereas, it is in the public interest to spend local funds wisely and to insure the 13maximum benefits are derived for each dollar expended. 14 Notwithstanding the provisions of section 27C of chapter 29 of the General Laws, as 15most recently amended by section 24 of chapter 71 of the acts of 1993, or any other general or 16special law to the contrary, any proposal initiated by the executive office of energy and 17environmental affairs and its agencies in the form of a rule, regulation or so-called guidance 18document or policy resulting in the imposition of additional cost to a city or town shall be termed 19a “local mandate”. Local mandates shall include but not be limited to any executive office of 20energy and environmental affairs initiated rule, regulation or so-called guidance document or 21policy that: (1.) requires any city or town to undertake any service or direct or indirect cost 22obligation, or to establish, expand or modify any existing activity in such a way that results in the 23expenditure of funds or resources, or results in the diversion of funds or resources from any 24existing activity. For the purposes of this section, the term “existing activity” shall include any 25program or service lawfully undertaken by any city or town under the authority of any law, 26special law, administrative rule or regulation or city or town charter, or; (2.) relieves the state or 27a county from providing a service or program so that any city or town instead incurs the direct or 28indirect cost of such service or program. 3 of 4 29 SECTION 2. No proposal initiated by the executive office of energy and environmental 30affairs in the form of a rule or regulation, or any so-called guidance document or policy, shall 31become effective until a regulatory impact statement has been completed, made public during the 32hearing process described in chapter 30A of the General Laws and filed with the secretary of 33state. The regulatory impact statement shall: (a) identify the problem, issue or deficiency 34addressed by the proposal; (b) identify the methodology or approach, including identification of 35expert information and analysis used to address the problem, issue or deficiency; (c) identify 36stakeholders who will be affected and to what extent by the proposal; (d) identify when such 37proposal will become effective, when such proposal will be changed, if known, and how and 38when the proposal will be reviewed in the future, if at all; (e) identify and describe the immediate 39and long term financial impacts of the proposal on all stakeholders, including the agency or 40entity issuing the proposal, any affected private party or entity, the state, the cities and towns, 41and the general public. Such financial impact statement shall consider administrative costs, 42permitting costs, enforcement costs, capital costs, internal compliance costs, and indirect costs, if 43any; (f) identify the fiscal effect on the public and private sectors for the first and second year of 44the proposal's existence, and provide a projection of fiscal impact over the first five years of the 45proposal's existence or, in the case of proposals affecting permits issued by the executive office 46of energy and environmental affairs, the term of the permit; and (g) identify and describe, 47specifically, the benefits of the proposal including, where possible, the financial value of these 48benefits. The secretary of administration and finance shall adopt regulations to further define and 49implement the use of regulatory impact statements in said executive offices' and agency's 50rulemaking. 4 of 4 51 SECTION 3. The executive office of energy and environmental affairs shall maintain a 52notification list of stakeholders in their proposals and who may request preliminary notification 53of such proposals, such request renewed annually by persons or groups in December. No later 54than thirty days prior to the notice of hearing described above the agency shall send a 55preliminary notification of the proposal to each stakeholder who has requested preliminary 56notification of the proposal and to the Joint Legislative Committee on Natural Resources, the 57Joint Legislative Committee on Local Affairs, the House and Senate Committees on Ways & 58Means, the Office of the State Auditor and the Massachusetts Municipal Association. 59 The preliminary notification of the proposal shall (a) identify the proposal to be noticed 60for hearing and the scope of the proposal, (b) provide the statutory authority for such proposal, 61and (c) identify the person within said executive office or agency responsible for the proposal 62and who can be contacted for more information. 63 SECTION 4. No proposal initiated by the executive office of energy and environmental 64affairs in the form of a rule, regulation, so-called guidance document or policy shall become 65effective until said executive office and agency have complied with the provisions of 66Massachusetts Administrative Procedures Act established under the provisions of Chapter 30A 67of the General Laws. Any entity claiming to be aggrieved by lack of compliance with said 68chapter by said executive office or agency shall be permitted to file a petition for relief with the 69superior court.