The General Laws are hereby amended by inserting after chapter 25C the following chapter:-

Chapter 25D

The Massachusetts Energy Efficiency Authority

Section 1. There is hereby created a body politic and corporate to be known as the Massachusetts Energy Efficiency Authority, hereinafter in this chapter referred to as the authority. The authority is hereby constituted a public instrumentality and the exercise by the authority of the powers conferred by this chapter shall be considered to be the performance of an essential government function.

The authority is hereby placed in the executive office of energy and environmental affairs, but shall not be subject to the supervision or control of said office or of any board, bureau, department or other center of the commonwealth, except as specifically provided in this chapter.

Section 2. The authority shall establish and administer the Green Jobs Massachusetts program, hereinafter in this chapter referred to as the program, established herein, to provide for the billing and collection of on-bill recovery charges for payment of obligations of its customers to the Massachusetts Green Jobs Loan Fund, established pursuant to section 3. The program shall provide financial assistance in the form of loans to eligible recipients for the performance of qualified energy efficiency services for eligible projects, subject to repayment in the form of on-bill recovery charges on the recipient’s utility bill.  To the maximum extent practicable, funding available from the authority shall be utilized to defray any costs associated with electronic data interchange improvements or other costs of initiating and implementing this program.  Billing and collection services shall commence as soon as practicable after establishment of the program.

The  authority  may  suspend  its offering of the on-bill recovery charge provided that the authority makes  a  finding  that  there  is  a significant  increase  in arrears or utility service disconnections that the authority determines is directly related to such charge, or a  finding of other good cause.

Section 3. (a) There is hereby established a fund to be known as the Massachusetts Green Jobs Loan Fund, hereinafter the fund.  The fund shall consist of:

(i)  all moneys  made available for the purpose of the fund pursuant to this section;

(ii) payments of principal and interest, including  any  late  payment charges, made pursuant to loan or financing agreements entered into with the authority or its designee pursuant to this section; and

(iii) any interest earned by the investment of moneys in the fund;

(b) The fund shall consist of 2 accounts:

(i) one account which shall be maintained for monies to be made available  to  provide loans to finance the cost of approved qualified energy efficiency services for residential structures and  multi-family  structures; and

(ii)  one account which shall be maintained for monies made available to provide loans to finance the cost of approved qualified energy  efficiency  services  for non-residential structures.

(c)The initial balance of the residential account established in clause (i) shall represent at least 50 per cent of the total balance of the 2 accounts. The authority shall not commingle the  monies  of  the fund  with any other monies of the authority or held by the authority, nor shall the  authority  commingle  the  monies  between accounts.  Payments of principal, interest and fees shall be deposited into the account created and maintained for the appropriate type of eligible project.

Section 4. In administering  the program, the authority shall:

(a) use monies made available for the fund  to  achieve the  purposes  of this chapter including but not limited to making loans available for eligible projects;

(b) enter into  contracts  with 1 or more program implementers to perform such functions as the authority deems appropriate;

(c) establish an on-bill recovery mechanism for repayment  of  loans for the performance of qualified energy efficiency services for eligible projects provided that such on-bill recovery mechanism shall provide for the utilization of any on-bill recovery programs established pursuant to this chapter;

(d) establish standards for customer participation  in  such  on-bill recovery  mechanism,  including  standards  for  reliable  utility  bill payment, current good standing on any  mortgage  obligations,  and  such additional  standards as the authority deems necessary; provided that in order to provide broad access to on-bill recovery, the authority  shall, to  the  fullest  extent  practicable,  consider alternative measures of creditworthiness that are prudent in order to include  participation  by customers  who  are less likely to have access to traditional sources of financing;

(e) to the extent feasible, make available on a pro rata basis,  based on  the number of electric customers within the utility service territory, to combination electric and  gas  corporations  that  offer  on-bill recovery, up to $500,000 to defray  costs  directly  associated  with  changing or upgrading billing systems to accommodate on-bill recovery charges;

(f) within 30 days of closing of a loan to a customer, pay a  fee of  $100 per  loan to the combination electric and gas corporation in whose service territory such customer is  located  to help defray the  costs  that  are directly associated with implementing the program;

(g)  within  30 days  of closing of a loan to a customer, pay a servicing fee of 1 per cent of the loan amount to the combination electric and gas corporation in whose service  territory  such  customer  is located  to  help  defray  the costs that are directly associated with the program; and

(h)  exercise  such  other  powers  as are necessary for the proper administration of the  program,  including  at  the  discretion  of  the authority,  entering into agreements with applicants and with such state or federal agencies as necessary to directly receive rebates and  grants available  for  eligible  projects  and apply such funds to repayment of applicant loan obligations.

Section 5. (a) The  authority shall,  within  45  days  of  the  effective  date of this section, commence a proceeding to investigate the implementation by each combination electric and  gas  corporation  having  annual  revenues  in excess  of $200,000,000 dollars  of  a billing and collection service for on-bill recovery charges in payment of  obligations  of  its customers  to  the fund established pursuant to section 3  and,  within  150 days of the effective date of this section, the authority shall make a determination establishing the billing and collection procedures for such on-bill recovery charges. The  authority shall  require  such electric  and  gas corporations to offer billing and collection services for green jobs  on-bill  recovery  charges  for  eligible customers  within  300  days  of  the  effective date of this section. To the extent practicable, such electric and  gas  corporations shall  utilize  existing  electronic  data interchange infrastructure or other existing billing infrastructure to  implement  their  billing  and collection  responsibilities under this section, and shall utilize funding available from the authority  to  defray  any  costs associated with electronic data interchange  improvements  or other costs of initiating and implementing this program.

(b) To ensure proper program design and implementation, each  electric and  gas  corporation  shall initially limit the number of customers who pay an on-bill recovery  charge  at  any  given time  to no more than one half of 1 percent of its total customers, on a first come, first served basis. Prior to reaching such limit, the authority shall review said limit, and shall increase  said limit provided that the authority finds that the program has not caused significant harm to the electric or gas company or its ratepayers.

(c)  The authority may suspend such an electric and gas corporation's offering of the on-bill recovery charge provided  that  the  authority, after  conducting  a hearing, makes a finding that there is a significant increase in arrears  or utility service disconnections that the authority determines is directly  related  to  the on-bill recovery charge, or a finding of other good cause.

(d) The on-bill recovery charge shall be collected on  the  bill  from the  customer's  electric  corporation unless the qualified energy efficiency services at that customer's premises  result  in  more  projected energy  savings  on  the  customer's gas bill than the electric bill, in which case such charge shall be collected on the customer's  gas  corporation bill.

(e)  The  authority  shall determine an appropriate percentage, up to 15 per cent, of the energy savings from qualified energy  efficiency services,  financed  with  a  loan  pursuant to section seven that is subject to  an  on-bill recovery  charge,  to  be  credited  to the combination electric and gas corporation that is issuing the bill for such charge,  for  purposes  of meeting  such  corporation's  targets  under  energy efficiency programs established by the authority.

Section 6. Schedules for the collection and billing of on-bill recovery charges shall provide:

(a) that billing and collection services shall  be  available  to  all customers  who  have met the standards established by the authority  for  participation  in  the on-bill  recovery  mechanism under the program and have executed an agreement for the performance of  qualified  energy efficiency  services  under  such  program;  provided, however, that for residential properties any such customer must hold primary ownership  or represent  the  primary owner or owners of the premises and hold primary meter account responsibility or represent the primary holder or  holders of  meter  account  responsibility  for all meters to which such on-bill recovery charges will apply;

(b) that the responsibilities of such electric and gas corporation are limited to providing billing and collection services for on-bill  recovery charges as directed by the authority;

(c)  that  the  rights  and  responsibilities of residential customers paying on-bill recovery charges shall be governed by the  provisions  of section 11;

(d)  unless  fully  satisfied  prior to sale or transfer, that (i) the on-bill recovery charges for any services  provided  at  the  customer's  premises  shall  survive  changes in ownership, tenancy or meter account responsibility, and (ii) that arrears in on-bill recovery charges at the time of account closure or meter transfer shall remain the  responsibility  of the incurring customer, unless expressly assumed by a subsequent purchaser of the property subject to such charges;

(e) not less than 45 days after closure of an account that  is subject  to  an  on-bill recovery charge, and provided that the customer does not re-establish service with such electric and gas corporation, it shall be the responsibility of the authority  and  not  the  electric  and  gas corporation to collect any arrears that are due and owing;

(f) a customer remitting less than the total amount due  for  electric or gas services and on-bill recovery charges shall have such partial payment  first  applied  as payment for electric or gas services and any remaining amount will be applied to the on-bill recovery charge;

(g) billing and collection services shall be available without  regard to whether the energy or fuel delivered by the utility is the customer's primary energy source;

(h) unless  otherwise  precluded  by  law, participation in the program shall not affect  a  customer's  eligibility for any rebate or incentive offered by a utility; and

(i)  any other  provisions  necessary  to provide for the billing and collection of on-bill recovery charges.

The authority shall not approve any application for the conversion to submetering of any master meter  which  is  subject  to  any  on-bill recovery charges.

Section 7. (a) The authority shall provide financial assistance in the form of loans for the performance of qualified energy efficiency services for eligible projects on terms and conditions established by the authority.

(b)  Loans made by the authority pursuant to this section shall be subject to the following limitations:

(i) eligible projects shall meet cost effectiveness  standards  developed by the authority;

(ii)  loans  shall  not exceed $13,000 per applicant for approved qualified energy efficiency services for residential structures, and $26,000 per applicant for approved qualified  energy  efficiency  services   for   non-residential   structures, provided,  however,  that  the  authority may permit a loan in excess of such amounts if the total cost of energy efficiency measures financed by such loan will achieve a payback period of 15 years or less, but in no event shall any such loan exceed  $25,000 dollars per applicant  for  residential  structures  and  $50,000 per applicant for non-residential structures; and  for  multi-family  structures  loans  shall be in amounts determined by the authority, provided, however, that the authority shall assure that a  significant  number  of residential structures are included in the program;

(iii)  no fees or penalties shall be charged or collected for prepayment of any such loan; and

(iv) loans shall be at interest rates determined by the  authority  to be no higher than necessary to make the provision of the qualified energy efficiency services feasible.

In determining whether to make a loan, and the amount of any loan that is made, the authority is authorized to consider whether the applicant or borrower has received, or is eligible to receive, financial assistance and other incentives from any other source for the qualified energy efficiency services which would be the subject of the loan.  In determining whether a loan will achieve a payback period of 15 years or less pursuant to clause (ii), the authority may consider the amount of the loan to be reduced by  the  amount  of  any rebates  for qualified energy efficiency services received by the applicant or by the authority on behalf of an applicant.

(c) Applications for financial assistance pursuant  to  this  section shall  be reviewed and evaluated by the authority or its designee pursuant to eligibility and qualification requirements  and  criteria  established by the authority. The authority shall establish standards for (i) qualified energy efficiency services, and (ii) measurement and verification of energy savings.

(d)  The  amount  of  a  fee  paid  for an energy audit may be added  to  the amount  of a loan that is made under this section to finance the cost of an eligible project conducted in response to such energy audit. In such a case, the amount  of the fee may be reimbursed from the fund to the borrower.

(e) In establishing an on-bill recovery mechanism:

(i) the cost-effectiveness of an eligible project shall  be  evaluated solely  on  the basis of the costs and projected savings to the applying customer, using standard engineering assessments and prior billing  data and  usage  patterns;  provided  however that based upon the most recent customer data available, on an annualized  basis,  the  monthly  on-bill repayment  amount for a package of measures shall not exceed one-twelfth of the savings projected to result from the installation of the measures provided further that nothing herein shall be construed to  prohibit  or prevent  customers whose primary heating energy source is from deliverable fuels from participating in the program;

(ii) the authority shall establish a process for  receipt  and  resolution of customer complaints concerning on-bill recovery charges and for addressing delays and defaults in customer payments; and

(iii) the authority may limit the availability of lighting measures or household appliances that are not permanently affixed to real property.

(f)  Prior  to  or  at  the closing of each loan made pursuant to this section, the authority shall cause a  notice  to  be  provided  to  each customer receiving such loan stating, in clear and conspicuous terms:

(i)  the  financial  and legal obligations and risks of accepting such loan responsibilities, including the obligation to provide or consent to the customer's utility providing the authority information on the sources and quantities of energy used in  the  customer's  premises  and  any improvements  or  modifications  to the premises, use of the premises or energy consuming appliances or equipment of any type  that  may  significantly affect energy usage;

(ii)  that the on-bill recovery charge will be billed by such customer utility company and that failure to pay such on-bill recovery charge may result in the customer having his or her electricity or  gas  terminated  for  non-payment,  provided that such utility company follows the requirements  of the relevant law and regulations with  respect  to residential customers;

(iii) that  incurring  such  loan  to  undertake  energy-efficiency projects may not result in lower monthly energy costs over  time,  based on additional factors that contribute to monthly energy costs;

(iv)  that the program is operated by the authority and it is the sole responsibility  of  the  authority  to  handle  consumer  inquiries  and complaints  related  to  the  operation  and lending associated with the program, provided further that the authority shall provide  a  mechanism to receive such consumer inquiries and complaints.

(g) Any person entering into a loan agreement pursuant to this section shall have the right to cancel any such loan agreement until midnight of the fifth business day following the day on which such person signs such agreement provided the loan proceeds have not yet been disbursed.

Section 8. (a)The authority shall evaluate the cost-effectiveness of the on-bill recovery mechanism on an on-going basis. In conducting such evaluation, the authority shall request each customer to provide:

(i)  information on energy usage and permission to collect information on energy usage from utilities and other retail vendors,  including but  not  limited  to  information required to be furnished to consumers under article seventeen of the energy law;

(ii) information on other sources of energy  used  in  the  customer's premises; and

(iii) information on any improvements or modifications to the premises that may significantly affect energy usage.

(b)  At a minimum the authority shall collect and maintain information for dates prior  to  the  performance  of  qualified  energy  efficiency services,  to  establish a baseline, and for dates covering a subsequent time period to measure the effectiveness of  such  measures.  Such  data shall be correlated with information from the energy audit and any other relevant information, including information on local weather conditions, and  shall  be  used  to  evaluate  the  on-bill recovery program and to improve the accuracy of projections of cost-effectiveness on an on-going basis. An analysis of such data shall be included in the annual report prepared pursuant to section 10.

(c)  All  information collected by the authority shall be confidential and shall be used exclusively for the purposes of this section.

Section 9. (a) The authority shall secure every  loan issued for such services that are to be repaid through an on-bill recovery mechanism with a mortgage upon the real property that is improved by such  services.  Such mortgage shall be recorded.

(b)  All terms and provisions of a green-jobs mortgage pursuant to this  section  shall be subject and subordinate to the lien of any mortgage or mortgages on such property.   When a subsequent purchaser of  the  property is granted a mortgage, the green-jobs mortgage shall be subordinate to the terms of that mortgage.

(c)  The mortgagee  shall  not retain any right to enforce payment or foreclose upon the property.

Section 10. The  rights  and responsibilities of residential customers participating in the program pursuant  to this chapter shall be substantially comparable to those  of electric and gas customers not participating in on-bill recovery, and charges for on-bill recovery shall be treated  as  charges  for utility service for the purpose of this article, provided that:

(a) all  determinations and safeguards related to the termination and reconnection of service shall apply to on-bill recovery  charges  billed by a utility pursuant to such section;

(b)  in  the event that the responsibility for making utility payments has been assumed by occupants of a multi- family dwelling  or by occupants of  a  two-family  dwelling, such occupants shall not be billed for  any  arrears  of  on-bill  recovery  charges  or  any prospective  on-bill  recovery charges, which shall remain the responsibility of the incurring customer;

(c) deferred payment agreements shall  be available to customers participating in on-bill recovery on the same terms as other customers,  and  the  utility  shall retain  the  same  discretion to defer termination of service as for any other delinquent customer;

(d) where a customer has a budget billing plan or  levelized  payment plan, the utility shall recalculate  the  payments  under  such  plan  to  reflect the projected effects of installing energy efficiency measures as soon as  practicable after  receipt  of  information on the energy audit and qualified energy efficiency services selected;

(e)  late  payment charges on unpaid on-bill recovery charges shall be determined as provided in this section, or as otherwise consented to  by the  customer  in  the  agreement  for green job  on-bill recovery and any such charges shall be remitted to the authority;

(f)  when a complaint is related solely to work performed under  the green  jobs program  or  to  the appropriate amount of on-bill recovery charges, the utility shall only be required  to  inform the  customer of the complaint handling procedures of the authority, which shall retain  responsibility  for  handling  such complaints, and such complaints shall not be deemed to be complaints about utility service in  any  other  authority action or proceeding; and

(g)  billing  information required to be provided  by the utility company to the consumer shall include information  on  on-bill  recovery charges, including the basis for such charges, and any information or inserts provided by the authority to the utility company related thereto. In addition, at least annually  the  authority shall provide the utility with information for inclusion or insertion in the customer's bill that sets forth the amount  and duration  of  remaining  on-bill  recovery  charges  and the authority's contact information and procedures  for  resolving  customer  complaints with such charges.

Section 11. The authority shall annually submit to the commissioner of energy and environmental affairs a report on the status of the authority's activities and outcomes related  to this chapter, which shall include, but not be limited to:

(a) the number of persons who have applied for and received  financial assistance through the fund;

(b) the fund account balances;

(c) the number of loans in default;

(d) the authority's activities and outcomes related to establishing an on-bill  recovery  mechanism,  including  the number of persons who have applied for and who have received  financial  assistance  that  utilizes on-bill  recovery  and  the  results of the evaluation of cost effectiveness pursuant to section 8;

(e)    the  amount expended by the authority in support of the program and the purposes for which such funds have been expended;

(f) the number of customers participating in the  program,  separately stating  the number of residential and non-residential customers and the amounts financed;

(g) the number of program participants who are  in  arrears  in  their utility accounts for electric and/or gas service;

(h) the  number of program participants who are in arrears in their on-bill recovery charge payments;

(i)  the number of program participants whose utility service has been terminated for non-payment;

(j) a description of the geographic distribution of loans made;

(k)  an estimate of the energy savings resulting from this program;

(l)  an estimate of the average project cost; and

(m)  in consultation with the commissioner of labor and workforce development, an estimate of  the number of jobs created under the program.