SENATE DOCKET, NO. 2276        FILED ON: 2/19/2021

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2158

The Commonwealth of Massachusetts

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PRESENTED BY:

Julian Cyr

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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 create offshore clean energy and new renewable jobs.

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PETITION OF:

SENATE DOCKET, NO. 2276        FILED ON: 2/19/2021

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2158

The Commonwealth of Massachusetts

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In the One Hundred and Ninety-Second General Court
(2021-2022)

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An Act to create offshore clean energy and new renewable jobs.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1. Notwithstanding any general or special law to the contrary, the department of energy resources shall use the executive office of energy and environmental affairs roadmap study or investigate the necessity, benefits, and costs of requiring distribution companies, as defined in section 1 of chapter 164 of the General Laws, to jointly and competitively conduct additional offshore wind generation solicitations and procurements of at least 2,800 megawatts of aggregate nameplate capacity,  in addition to the solicitations and procurements required by section 83C of chapter 169 of the acts of 2008, inserted by chapter 188 of the acts of 2016, and section 21 of chapter 227 of the acts 2018, provided any additional solicitations conducted pursuant to this section shall be subject to the required solicitation and procurement process of said section 83C of chapter 169 of the Acts of 2008, as amended by said chapter 188 of the Acts of 2016, section 21 of chapter 227 of the Acts of 2018.

SECTION 2. Said subsection b in section 83C is hereby further amended by striking out the following:- “; provided, however, that the department of public utilities shall not approve a long-term contract that results from a subsequent solicitation and procurement period if the levelized price per megawatt hour, plus associated transmission costs, is greater than or equal to the levelized price per megawatt hour plus transmission costs that resulted from the previous procurement”

SECTION 3. Said subsection b in section 83C is hereby further amended by striking out the following: “(3) provide for an annual remuneration for the contracting distribution company up to 2.75 per cent of the annual payments under the contract to compensate the company for accepting the financial obligation of the long-term contract, such provision to be acted upon by the department of public utilities at the time of contract approval;”

SECTION 4. In responding to any solicitations issued pursuant to this section, proposals for long-term contracts shall include an environmental and fisheries mitigation plan for the construction and operation of such offshore wind facilities, provided such plan shall include, but not be limited to, an explicit description of the best management practices and any on- or off-site mitigation the applicant will employ, informed by the latest science at the time the proposal is made, that will avoid, minimize and mitigate any impacts to: wildlife, including but not limited to threatened or endangered species such as north atlantic right whales; coastal and marine habitats; natural resources; ecosystems; and traditional or existing water-dependent uses, including, but not limited to, commercial and recreational fishing. The plan should also include pre- and post-construction monitoring to understand the effects of facilities on marine and avian species. 

The department of energy resources shall establish an environmental working group and a fisheries working group comprised of key experts and stakeholders to provide input on best practices for avoiding, minimizing and mitigating any impacts to: wildlife, including but not limited to threatened or endangered species such as north atlantic right whales; coastal and marine habitats; natural resources; ecosystems; and traditional or existing water-dependent uses, including, but not limited to, commercial and recreational fishing, during the construction and operation of facilities eligible pursuant to this section. The working groups shall conduct ongoing review of implemented monitoring and mitigation programs and provide feedback and recommendations on an as-needed basis, to be considered by the department. Pre-construction engagement of these working groups will correspond with project development, solicitation, and permitting, and the federal consistency process. 

Proposals must include a commitment to, if selected and approved, provide financial and technical assistance to support robust monitoring of wildlife and habitat through a minimum $10,000 per megawatt contribution to regional research on the impacts of offshore wind on wildlife and habitat to inform strategies to avoid and mitigate any impacts to the marine environment. The department of Energy Resources, in consultation with the environmental and fisheries working groups, shall determine how the funds will be used to advance the responsible development of the offshore wind energy industry, not necessarily the proposed project.

SECTION 5. Notwithstanding any general or special law to the contrary, the department of energy resources shall require offshore wind bids to allocate at least 1% of the cost of the project to a fund in support of Massachusetts-based offshore wind power research and workforce development provided further, that this fund shall be administered by the massachusetts clean energy center, provided further, that a portion of this fund shall be used to cover reasonable administrative costs of the massachusetts clean energy center. 

SECTION 6. (a) Any offshore wind generation solicitations or procurements required under section 1 shall be performed and procured under sections 26 through 27F of chapter 149 inclusive and section 39M of chapter 30, and shall include the following certification and disclosure requirements:   

(1) A requirement for documentation reflecting the applicant’s demonstrated commitment to workforce development within the commonwealth;  

(2) A requirement that the applicant will provide a statement of intent concerning efforts that it and its contractors and sub-contractors will take to promote workforce development on the project if successful; 

(3)   A requirement for documentation reflecting the applicant’s demonstrated commitment to economic development within the commonwealth; 

(4) A requirement that the applicant provide a statement of intent concerning efforts that it and its contractors and sub-contractors on this project will take to promote economic development on the project if successful; 

(5)   A requirement for documentation reflecting the applicant’s demonstrated commitment to expand workforce diversity, equity, and inclusion in its past projects within the commonwealth;  

(6) A requirement that the Applicant disclose whether it and each of its contractors and sub-contractors on this project, have previously contracted with a labor organization, as defined by massachusetts general laws, c. 150A and/or the National Labor Relations Act, section 2, in the commonwealth or elsewhere.   

(7) A requirement that the applicant specify whether it and each of its contractors and sub-contractors on this project participates in a state or federally certified apprenticeship program and the number of apprentices the apprenticeship program has trained to completion for each of the last five years.  

(8)  A requirement that the applicant provide a statement of intent concerning the extent to which the applicant, its contractors and sub-contractors on this project, intend to utilize apprentices on the project if successful. 

(9) Certification that the applicant and its contractors and sub-contractors on this project, have complied with massachusetts general laws Chapters 149, 151, 151A, 151B, and 152 and/or 29 U.S.C. § 201, et seq. and federal anti-discrimination laws for the last three calendar years.   

(10)  Certification that the applicant and its contractors and sub-contractors on this project are currently, and will remain, in compliance with Massachusetts General Laws Chapters 149, 151, 151A, 151B, and 152 and/or 29 U.S.C. § 201, et seq. and Federal anti-discrimination laws for the duration of the project.  

(11) To the extent the Applicant, or one of its contractors or sub-contractors on the project cannot meet the certification requirements provided for in paragraphs 10 and 11, the applicant must submit proof of a wage bond or other comparable form of insurance in an amount equal to the aggregate of one year’s gross wages for all workers projected to be employed by the applicant, contractor, or sub-contractor for which certification is unavailable, to be maintained for the life of the project.  

(12) Whether the applicant has included detailed plans for assuring labor harmony during all phases of the construction, reconstruction, renovation, development and operation of the project.

(b) Every solicitation or procurement issued by the commonwealth under section 1 shall notify applicants that they will be disqualified from this project if they have been debarred by the federal government or commonwealth for the entire term of the debarment.  

(c) All Applicants shall provide the above documentation and certifications as part of their initial application. Failure to provide the same shall disqualify the applicant from receiving funding for the project on which funding has been requested.  

(d) A successful applicant’s failure to provide complete, accurate certifications and documentation under subsection (a) of this Section shall result in suspension from the project for a period of 30 days, to provide an opportunity for the applicant to address application deficiencies to the satisfaction of the commonwealth.  Failure to cure deficiencies, thereafter, shall result in termination.  A successful applicant’s willful failure to provide accurate certifications and documentation shall result in permanent termination from the project and the return of all funds awarded therefor within 30 days.   

(e) For the term of the project, the applicant, its contractors, and sub-contractors shall furnish their monthly certified payrolls in an electronic format for all employees on the project, as defined by c. 149 s. 148B. 

(f) The attorney general shall enforce the provisions contained herein and may enact regulations consistent therewith.       

SECTION 7. Subsection D in said section 83C is hereby further amended by inserting after the words “without adding cost to the project” the following words:- Where feasible, the department of energy resources shall give preference to proposals submitted by offshore wind companies that include commitments to enter into long-term contracts with businesses, nonprofit organizations, municipalities, or other government entities directly to purchase offshore wind energy, in addition to the long-term contracts entered into by distribution companies under this section.

SECTION 8. Section 21 of chapter 227 of the Acts of 2018 shall be amended by adding the following subsections at the end thereof:

(c) In evaluating a proposal received in response to a solicitation for offshore wind generation or transmission resources pursuant to this act or section 83C of chapter 188 of the Acts of 2016, or any subsequent legislation providing for the procurement of offshore wind generation or transmission resources, the department of public utilities shall consider, in addition to any other criteria described in said sections, whether the proposal identifies, and the respondent and its subcontractors are likely to meet, specific goals, expressed as an overall program goal applicable to the total dollar amount of contracts, for : 

(i) the utilization of minority business enterprises, as that term is defined in section 7 chapter 58 as:  

(a) contractors in the design of the offshore wind energy generation and transmission resources;  

(b) contractors in the construction of the offshore wind energy generation and transmission resources; and

(c) vendors in the provision of goods and services procured by the offshore wind developer; and  

(d) the hiring of members of socially or economically disadvantaged communities as employees in the design, construction, and production of offshore wind generation and transmission resources.   

(d)  Each proposal submitted in response to a solicitation as described in section 21 of the 227 of the Acts of 2018s Act shall include evidence that the developer has made serious good faith effort to solicit and interview a reasonable number of minority investors, including a statement that lists the names and addresses of all minority investors interviewed and whether or not any of those investors have purchased an equity share in the entity submitting an application.   

(e)  Each proposal submitted in response to a solicitation as described in section 1 of this act shall include evidence that the developer has made serious good faith effort to solicit and interview a reasonable number of minority investors, including a statement that lists the names and addresses of all minority investors interviewed and whether or not any of those investors have purchased an equity share in the entity submitting an application.   

(i) The department of energy resources shall consult with the supplier diversity office in drafting those sections of a solicitation that advance the purpose of this Act.  

(ii) The supplier diversity office may participate in the department of public utilities hearing processes related to the procurement of offshore wind generation and transmission resources.  

(iii) The supplier diversity office shall prepare guidance to developers regarding best practices to advance the purposes of this Act.  

(iv) The department of energy resources and the supplier diversity office shall consult with the massachusetts clean energy center and the massachusetts environmental justice advisory committee in drafting those sections of a solicitation or regulations that advance the purpose of this act. 

(f) The department of energy resources shall promulgate regulations to implement the purposes of this act within 120 days of its passage, including, without limitation, procedures for monitoring, measuring, and enforcing ongoing compliance with goals set by respondents in accordance with section 1 of this Act.  Such regulations shall, without limitation, (f) The department of energy resources shall promulgate regulations to implement the purposes of this act within 120 days of its passage, including, without limitation, procedures for monitoring, measuring, and enforcing ongoing compliance with goals set by respondents in accordance with this act.  Such regulations shall, without limitation,

(i) require respondents to solicitations covered by this act to make quarterly reports to the department of energy resources and the department of public utilities describing the number of contracts, total dollar amounts contracted with and actually paid to minority business enterprises, women business enterprises and veteran business enterprises for design and construction of the proposed offshore wind generation or transmission resources, and the total number and value of all subcontracts awarded to a minority, women and veteran owned business, and a comparison of these reports with the goals established by the respondent in accordance with section 1 of this cct;

(ii) describe a process by which the department of energy resources will publicly review and post such reports, and require respondents to submit information to the department regarding any failure to meet the goals set by the respondent, identify any good faith efforts that have been undertaken to achieve those goals and provide a plan to bring the dollar amount contracted and spent into compliance with the goals.