Bill S.2229

SENATE DOCKET, NO. 2480 FILED ON: 2/19/2021

SENATE . . . . . . . . . . . . . . No. 2229

By Mr. Pacheco, a petition (accompanied by bill, Senate, No. 2229) of Marc R. Pacheco for legislation to create a 21st Century clean energy economy. Telecommunications, Utilities and Energy.

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 creating a 21st Century clean energy economy.

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. Section 3 of chapter 21N, as so appearing, is hereby amended by striking out subsection (h) and inserting in place thereof the following:- (h) The interim 2030 statewide greenhouse gas emissions limit shall be at least 50 per cent below the 1990 level, and the interim 2040 statewide greenhouse gas emissions limit shall be at least 75 per cent below the 1990 level.

SECTION 2. Said section 3 of chapter 21N, as so appearing, is hereby amended by striking out, in subsection (b), clauses (v) and (vi) and inserting in place thereof the following:- (v) a 2045 statewide greenhouse gas emissions limit that achieves at least net zero statewide greenhouse gas emissions;

SECTION 3. Section 11F of Chapter 25A, as appearing in the 2018 Official Edition, is hereby amended by striking out the subsection (a) and inserting in place thereof the following:-

(a) The department shall establish a renewable energy portfolio standard for all retail electricity suppliers selling electricity to end-use customers in the commonwealth. By December 31, 1999, the department shall determine the actual percentage of kilowatt-hours sales to end-use customers in the commonwealth which is derived from existing renewable energy generating sources. Every retail supplier shall provide a minimum percentage of kilowatt-hours sales to end-use customers in the commonwealth from Class I renewable energy generating sources, according to the following schedule: (1) an additional 1 per cent of sales by December 31, 2003, or 1 calendar year from the final day of the first month in which the average cost of any renewable technology is found to be within 10 per cent of the overall average spot-market price per kilowatt-hour for electricity in the commonwealth, whichever is sooner; (2) an additional one-half of 1 per cent of sales each year thereafter until December 31, 2009; (3) an additional 1 per cent of sales each year thereafter until December 31, 2021; and (4) an additional 3 per cent of sales every year thereafter. Any electric load served under a retail electricity supply contract executed or extended not later than December 31, 2018, shall be exempt from any incremental compliance obligation under this section that occurs as a result of an increase or a new requirement imposed on or after January 1, 2021 on the minimum percentage of kilowatt-hour sales to end-use customers that must be derived from Class I RPS eligible resources. For the purpose of this subsection, a new renewable energy generating source is one that begins commercial operation after December 31, 1997, or that represents an increase in generating capacity after December 31, 1997, at an existing facility. Commencing on January 1, 2009, such minimum percentage requirement shall be known as the ''Class I'' renewable energy generating source requirement.

SECTION 4. Chapter 21N is hereby further amended by inserting after section 7 the following 2 sections:-

Section 7A. The secretary shall promulgate regulations establishing market-based compliance mechanisms for: (i) the transportation sector; provided, however, that the regulations shall, at a minimum, be designed to reduce passenger vehicle and light duty truck emissions; (ii) the commercial, industrial and institutional sectors, including but not limited to buildings and industrial, manufacturing and other business processes; and (iii) the residential building sector.

The market-based compliance mechanisms established pursuant to this section shall: (i) maximize the ability of the commonwealth to achieve the greenhouse gas emissions limits established pursuant to this chapter;(ii) be designed to minimize disproportionate impacts on low-income households; (iii) be designed to identify, with special attention to manufacturing, economic sectors, economic subsectors or individual employers at risk of serious negative impacts due to the market-based compliance mechanisms established pursuant to this section; and (iv) be designed to mitigate impacts identified in clause (iii). The market-based compliance mechanisms may be established by joining any existing market-based compliance mechanisms. The secretary shall evaluate and adjust, if necessary, all market-based compliance mechanisms adopted pursuant to this section at least once every 30 months to meet the requirements of this section and to achieve greenhouse gas emissions limits. The regulations may be promulgated as part of a coordinated regional effort with other states or Canadian Provinces to implement, expand or join any other market-based compliance mechanisms. The department shall ensure it has adequate resources to implement the requirements of this chapter.

Section 7B. Not later than September 30, 2025 and every 5 years thereafter, the secretary or a designee shall publish a comprehensive energy plan that shall include and be based upon reasonable projections of the commonwealth’s energy demands for electricity, transportation and thermal conditioning and shall also include strategies for meeting those demands in a regional context, prioritizing meeting energy demand through conservation, energy efficiency and other demand-reduction resources in a manner that contributes to the commonwealth meeting the limits for 2030 and 2040 pursuant to subsection (b) of section 3.

SECTION 5. Notwithstanding any general or special law to the contrary, the department of energy resources shall require 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, if it finds it is necessary to meet the statewide greenhouse gas emissions limits established in chapter 21N of the General Laws. The department shall require at least 10,600 megawatts of offshore wind capacity procurement by 2035. Any selected projects must use practices to avoid, minimize, and mitigate impact to wildlife, natural resources, ecosystems, and traditional or existing water-dependent uses.

SECTION 6. The Department of Environmental protection shall adopt and implement the California Advanced Clean Cars II Standard and ensure that all light duty vehicles sold in the Commonwealth be zero emission vehicles by 2035.

SECTION 7. Section 16 of chapter 25A of the General Laws, as appearing in the 2018 official Edition, is hereby amended by inserting after the word “section”, in line 1, the following words:- and section 18.

SECTION 8. Subsection (a) of said section 16 of said chapter 25A, as so appearing, is hereby amended by adding the following definition:-

“Zero-emission vehicle”, a motor vehicle that produces no engine exhaust carbon emissions.

SECTION 9. Said chapter 25A is hereby further amended by adding the following section:-

Section 18. (a) The commissioner shall, subject to appropriation, establish a program to provide rebates or other financial incentives to consumers who purchase or lease and register and insure in the commonwealth a zero-emission vehicle. Vehicles qualifying for rebates under this section shall: (i) be manufactured primarily for use on public streets, roads and highways; (ii) have an engine that is not modified from the original manufacturer's specifications; and (iii) have been acquired for use or lease by the consumer and not for resale.

(b) A rebate under this section shall not be less than $1,500 per vehicle; provided, however, that no rebate shall be available for a vehicle with a sales price that exceeds $50,000.

(c) The commissioner may promulgate regulations to administer the program established under this section. At least once per calendar year, the commissioner shall provide outreach to underserved consumers and consumers in communities with a high percentage of low-income households with information about the zero-emission vehicle incentive program established under this section.

(d) The commissioner shall publish and regularly update data regarding program usage including, but not limited to: (i) the number and amount of rebates or incentives provided each month; (ii) the make, model and type of vehicle for which the rebate or incentive was issued; (iii) the zip code in which the vehicle is registered; and (iv) the estimated total greenhouse gas emissions reductions achieved from the rebate or incentive issued.

SECTION 10. Section 7A of chapter 90 of the General Laws, as appearing in the 2018 Official Edition, is hereby amended by inserting after the fifth paragraph the following paragraph:-

Not later than January 1, 2022, and annually thereafter, the registry shall issue to a municipality, upon request, the following aggregate data for the previous 12 months: (i) the number of vehicles registered in said municipality, including the total numbers of gas-powered vehicles, hybrid vehicles and zero-emission vehicles; and (ii) the average number of miles driven by such gas-powered, hybrid and zero-emission vehicles, respectively. The data shall be protective of privacy information.

SECTION 11. Section 94 of chapter 143 of the General Laws, as so appearing, is hereby amended by adding the following 2 subsections:-

(s) In consultation with the department of energy resources, to adopt and fully integrate into the state building code requirements that new construction of commercial and residential buildings with not less than 10 parking spaces, as well as major reconstruction, renovation and repair of such buildings, include building electrical service and conduit systems sufficient to support the minimum number of zero-emission vehicle parking spaces; provided, however, that the minimum number of zero-emission vehicle parking spaces shall be at least 1 parking space or not less than 5 per cent of the total number of parking spaces, whichever is greater. For the purposes of this section, “zero-emission vehicle” shall mean a motor vehicle that produces no engine exhaust emissions.

(t) In consultation with the department of energy resources, to adopt and fully integrate into the state building code requirements that new construction of parking facilities with not less than 10 parking spaces, as well as major reconstruction, renovation and repair of such facilities, include building electrical service and conduit systems sufficient to support the minimum number of zero-emission vehicle parking spaces; provided, however, that the minimum number of zero-emission vehicle parking spaces shall be at least 1 parking space or not less than 5 per cent of the total number of parking spaces, whichever is greater.

SECTION 12. Section 3 of chapter 448 of the acts of 2016 is hereby amended by striking out, in lines 3 and 4, the words “may include requirements for electric vehicle charging for residential and appropriate commercial” and inserting in place thereof the following words:- shall include requirements for electric vehicle charging for appropriate residential and commercial.

SECTION 13. Said chapter 448 is hereby further amended by inserting after section 6 the following 2 sections:-

Section 6A. (a) The department of energy resources, in consultation with the Massachusetts Department of Transportation and the executive office for administration and finance, shall create and maintain an inventory of motor vehicles owned or leased by the commonwealth. The inventory shall include a critical replacement list consisting of non-zero emission vehicles that, if the non-zero emission vehicle needed to be replaced, replacement with a zero-emission vehicle is operationally feasible and results in a positive lifecycle cost benefit.The critical replacement list shall include, but not be limited to, vehicles that are approaching the end of their useful lives or are otherwise reasonable candidates for replacement and whose replacement presents a high or medium priority opportunity for near-term electrification as indicated in the study completed pursuant to section 6 and published on December 22, 2017 or any successive analysis or study required by law or commissioned by the department of energy resources or Massachusetts Department of Transportation. Not less than every 3 years, the department of energy resources, in consultation with the Massachusetts Department of Transportation, shall revise and update the analysis of opportunities for near-term electrification of vehicles owned, purchased or leased by the commonwealth. For the purposes of this section, “commonwealth” shall include, but not be limited to, the Massachusetts Bay Transportation Authority, Massachusetts Port Authority and Massachusetts Water Resources Authority, but shall not include municipalities, regional school districts and regional transit authorities authorized pursuant to chapter 161B of the General Laws. Nothing in this section shall prevent or limit the commonwealth from purchasing a zero-emission vehicle for a vehicle or purpose not identified on the critical replacement list.

(b) Not later than January 1, 2024, each purchase or lease by the commonwealth of a motor vehicle identified on the critical replacement list under subsection (a) by the commonwealth, including, but not limited to, the Massachusetts Port Authority and Massachusetts Water Resources Authority, but not including the Massachusetts Bay Transportation Authority, municipalities, regional school districts and regional transit authorities authorized pursuant to chapter 161B of the General Laws, shall be a zero-emission vehicle. The commonwealth shall prioritize the deployment of zero-emission vehicles in underserved communities and communities with a high percentage of low-income households.

(c) Beginning January 1, 2030, each purchase or lease of a passenger bus by the Massachusetts Bay Transportation Authority shall be a zero-emission vehicle; provided, however, that the Massachusetts Bay Transportation Authority shall seek to replace non-zero emission passenger buses with zero-emission passenger buses before January 1, 2030.

(d) The Massachusetts Bay Transportation Authority shall operate exclusively zero emission passenger buses not later than December 31, 2040; provided, however, that a non-zero emission passenger bus purchased before January 1, 2030 may be operated after December 31, 2040 if its operation is strictly necessary to maintain service levels and prompt plans are in place to replace the bus with a zero-emission passenger bus.

(e) The secretary of transportation and the Massachusetts Bay Transportation Authority, in consultation with the executive office of energy and environmental affairs, shall develop and complete a plan to operate exclusively zero-emission passenger buses not later than December 31, 2040. With respect to early implementation, the plan shall mandate that a majority of buses purchased or leased serve routes serving low-income households and households in underserved communities. Not later than December 31, 2021, the plan shall be filed with the clerks of the senate and house of representatives and the joint committee on transportation and be made publicly available on the Massachusetts Department of Transportation’s website.

Every 5 years until the Massachusetts Bay Transportation Authority operates exclusively zero-emission passenger buses, the secretary shall submit to the clerks of the senate and house of representatives and the joint committee on transportation and post on the Massachusetts Department of Transportation’s website updated progress reports on the implementation of this subsection, including, but not limited to, the number of zero-emission passenger buses operated, the number of non-zero emission passenger buses operated, the number of zero-emission passenger buses operated on routes serving low-income households and households in underserved communities, the number of non-zero emission passenger buses operated on routes serving low-income households and households in underserved communities, barriers to increased numbers of zero-emission passenger buses, if any, and recommended legislative or regulatory action needed to address barriers or otherwise promote compliance with this section and the cost of simultaneously operating zero-emission passenger buses, including, but not limited to, staffing, training, maintenance and other mechanical equipment, facilities, financing and premiums attributable to the purchase of zero-emission passenger buses. For the purposes of this section, “zero-emission vehicle” shall mean a motor vehicle that produces no engine exhaust emissions. For the purposes of this subsection, “low-income” shall have the same meaning as defined under section 1 of chapter 40T of the General Laws.

(f) Not later than March 1, 2021, the Massachusetts Department of Transportation, in consultation with the department of energy resources, shall develop recommendations for the siting of zero-emission vehicle charging facilities to serve state-owned or leased zero-emission vehicles and zero-emission passenger buses across the commonwealth. The recommendations shall consider locations across the commonwealth, including within municipal light plant territories, and shall consider the benefit and potential cost savings to ratepayers for potential locations.

Section 6B. The department of energy resources, in consultation with the Massachusetts Department of Transportation, shall conduct, publish and periodically update a study of the opportunities for near-term electrification of vehicles owned or leased by municipalities, regional school districts and regional transit authorities authorized pursuant to chapter 161B of the General Laws. The study shall include, but not be limited to: (i) an analysis of the cost of vehicle electrification, associated equipment and supplies and possible methods of meeting such costs, including, but not limited to, state financial support, federal financial support and procurements by regional planning agencies and other entities made up of local and regional governments; (ii) recommendations for the allowance within the fleets of non-electric emergency vehicles; and (iii) opportunities to pair electrification with renewable energy resources, energy storage or demand response technology and policy. The department of energy resources shall publish the study on its website not later than 18 months after the effective date of this section and shall thereafter publish revisions of the study on its website not less than every 3 years. The study and subsequent revisions shall be submitted to the clerks of the senate and house of representatives, the joint committee on transportation and the joint committee on telecommunications, utilities and energy and posted on the department of energy resource’s website.

SECTION 14. Notwithstanding any general or special law to the contrary, not later than 1 year after the effective date of this act, the department of energy resources shall publish a guide to assist cities and towns in developing processes and policies to expand electric vehicle parking in municipally-owned parking spaces and lots including, but not limited to, an analysis or guide to pricing incentives for parking for zero-emission vehicles and reserved parking for zero emission vehicles. The guide shall include a review of similar programs established in other states. For the purposes of this section, “zero-emission vehicle” shall mean a motor vehicle that produces no engine exhaust emissions.

SECTION 15. The Massachusetts Bay Transportation Authority, in consultation with the executive office of energy and environmental affairs, shall develop a plan to reduce the carbon emissions of its commuter rail and light rail operations, including a numerical value of the plan’s contribution to meeting statewide greenhouse gas emissions limits and sublimits set by statute or regulation. The plan shall include: (i) an analysis of the cost and benefits of meeting the statewide greenhouse gas emissions limits and sublimits; (ii) energy conservation methodologies, including, but not limited to, regenerative braking, flywheel, battery or capacitor storage and the use of alternative methods for generating electricity; (iii) evaluation of increased electricity demands resulting from steps taken by the authority to reduce greenhouse gas emissions; (iv) feasibility studies, where necessary; and (v) a recommended schedule for implementation.

The authority shall post its plan on the authority’s website not later than 6 months from the effective date of this act.

SECTION 15. For the purposes of this section, an “independent retirement system” shall mean any Massachusetts public pension system under the oversight, monitoring, and regulation of the public employee retirement administration commission, except the state employees retirement system, the state teachers’ retirement system, and the State-Boston retirement system in so far as the assets attributable to teachers who are members of that system; and a “fossil fuel company” shall mean a company identified by a Global Industry Classification Standard code in one of the following sectors: (1) coal and consumable fuels; (2) integrated oil and gas; or (3) oil and gas exploration and production.

Notwithstanding any general or special law to the contrary, any independent retirement system may, in accordance with the procurement process under section 23B of chapter 32 of the General Laws, divest in whole or in part from any investment in fossil fuel companies, the asset of which remain under the direct control and management of the independent retirement system, and are not separately managed or invested by the Pension Reserves Investment Management Board. In accordance with this section, the board of an independent retirement system may, after following the procurement process under said section 23B of said chapter 32, invest in index funds or other investment vehicles that may not include fossil fuel companies.

SECTION 16. Notwithstanding any general or special law to the contrary, with respect to actions taken in compliance with this act, the public fund shall be exempt from any conflicting statutory or common law obligations, including any such obligations with respect to choice of asset managers, investment funds or investments for the public fund’s securities portfolios and all good faith determinations regarding companies as required by this act

SECTION 17. Sections 128 and 129 shall take effect upon passage.

SECTION 18. (a) It shall be the goal of the commonwealth to meet 100 per cent of Massachusetts’ energy needs with renewable energy by 2035, including the energy consumed for electricity, heating and cooling, transportation, agricultural uses, industrial uses, and all other uses by all residents, institutions, businesses, state and municipal agencies, and other entities operating within its borders.

(b) It shall be the goal of the commonwealth to obtain 100 per cent of the electricity consumed by all residents, institutions, businesses, state and municipal agencies, and other entities operating within its borders from renewable energy sources by 2035.

(c) In meeting these goals, the commonwealth and its agencies shall prioritize (1) models for local and community ownership of renewable energy generation, (2) sources of renewable energy that are located in Massachusetts or elsewhere in New England, (3) sources of renewable energy that represent additional renewable generation capacity added to the grid, (4) non emitting sources of renewable energy, (5) reducing energy consumption through efficiency measures to the greatest extent practicable. In all of its plans to achieve 100 percent renewable energy, the commonwealth and its agencies shall prioritize bringing direct health and financial benefits to environmental justice communities.

SECTION 19. (a) In order to integrate the goal of 100 per cent renewable energy throughout state government operations, the secretary shall establish an administrative council for the clean energy transition not later than 90 days from the passage of this act.

(b) The council shall be chaired by the secretary or the secretary’s designee; and shall include a representative from the department of environmental protection, the department of energy resources, the department of public utilities, the Massachusetts Clean Energy Center, the office of the governor, and the executive offices of administration and finance, education, health and human services, housing and economic development, labor and workforce development, public safety and security, and transportation and public works. The council shall also include a representative designated by the attorney general, the treasurer and receiver general, the secretary of the commonwealth, the state auditor, and the President of the University of Massachusetts. The council shall also include a member designated by the secretary of education to represent the community college system and a member designated by the secretary of education to represent the the state university system. The governor may appoint additional representatives from state agencies or quasi-public agencies to the council.

(c) The council shall identify all existing laws, regulations, and programs of the Commonwealth with an impact on energy production and consumption, and evaluate them based on (1) their potential to accelerate or hinder the state’s transition to 100 per cent renewable energy and (2) their ability to maximize the environmental and economic benefits of the transition for Massachusetts residents and businesses, particularly but not exclusively for environmental justice communities and communities that have been impacted by energy-related pollution.

(d) Each executive department and quasi-public agency shall conduct a review of the laws, regulations, and programs in its jurisdiction, and submit a report to the council describing how these laws, regulations, and programs can be modified in order to accelerate the transition to 100 per cent renewable energy. Each executive department and quasi-public agency shall further consider how modifying its programs to accelerate the transition to 100 per cent renewable energy can help achieve the department or agency’s other objectives.

(e) The secretary shall publish the council’s findings under subsections (c) and (d) of this section within 6 months of the formation of the council. The secretary and the council shall review and update these findings every 3 years from the date of initial publication.

(f) Within one year from the passage of this act, the council shall determine a date by which the operations of state government will be powered with 100 percent renewable energy, provided that the date is not later than January 1, 2035. Within eighteen months of the passage of this act, each executive department and quasi-public agency shall present a plan to achieve this goal for the facilities and activities in its jurisdiction. Each executive department and quasi public agency shall report on its progress to the council and update its plan annually.

(g) The council shall meet at least once per quarter to review progress in modifying laws, regulations, and programs to accelerate the transition to 100 per cent renewable energy. These meetings shall be open to members of the public and shall provide opportunities for public comment. At least one of these meetings shall be held in an environmental justice community each year.

SECTION 20. Subject to appropriation, there shall be established at the Massachusetts Clean Energy Technology Center a program for clean energy finance. MassCEC shall conduct a study of clean energy project finance gaps, including but not limited to project capital, project credit support/enhancement, project finance insurance and project pipeline development. The study shall include developing recommendations as to potential sources of additional funding to support initiatives aimed at closing the financing gaps addressed in the study. Pursuant to the findings of this study and subject to funding availability, MassCEC may establish a “Green Bank” or similar entity or program to provide the investment capital necessary to accelerate the deployment of a range of clean energy technologies in the buildings, transportation, industrial and other sectors may be necessary to achieve the pace of decarbonization necessary to meet the Commonwealth's net zero emissions goal.

SECTION 21: Chapter 164 of the General Laws is hereby amended by inserting after section 145, as appearing in the 2018 Official Edition, the following section:

Section 146:

(a) As used in this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:

(1) “Local energy resources,” distributed renewable generation facilities, energy efficiency, energy storage, electric vehicles, and demand response and load management technologies.

(2) ”Distributed renewable generation facility,” a facility producing electrical energy from any source that qualifies as a renewable energy generating source under section 11F of chapter 25A and is interconnected to a distribution company.

(3) “Board,” the Grid Modernization Consumer Board.

(b) The Department shall issue an order concluding the current Grid Modernization Proceedings (D.P.U. 15-120, 15-121 and 15-122) by December 31, 2022.

(c) The Department shall commence a proceeding by no later than January 31, 2023 that establishes procedures for each distribution company of the commonwealth to create and file with the Department by October 31, 2024 its subsequent Grid Modernization Plan, as described in further detail in subsection (d).

(1) This proceeding shall also establish specific metrics and related performance incentives to evaluate the progress of the distribution companies toward establishing a grid planning system to utilize and integrate local energy resources to meet customers’ energy needs. Said metrics may include, but are not limited to: reducing the impact of outages, optimizing demand, integrating local energy resources, improving workforce and asset management, and electrification that results in lower greenhouse gas emissions and energy costs savings, after accounting for fuel switching;

(2) This proceeding shall also create protections for low-income consumers including, but not limited to, remote shutoff protection and exemption from special cost recovery mechanisms.

(d) Every 5 years, on or before April 1, each electric distribution company shall prepare a Grid Modernization Plan. Each plan shall comply with the requirements set forth by the Department in the proceeding described in subsection (c), or as modified by the Department, and shall be prepared in coordination with the Grid Modernization Consumer Board established by subsection (g). Each plan shall:

(1) Evaluate locational benefits and costs of local energy resources currently located on the system, and identify optimal locations for local energy resources over the next 10 years. This evaluation shall be based on reductions or increases in local generation capacity and demand, avoided or increased investments in transmission and distribution infrastructure, safety benefits, reliability benefits, and any other savings the local energy resources provide to the electric grid or avoided costs to ratepayers;

(2) Provide information about the interconnection of distributed renewable generation facilities in publicly accessible hosting capacity maps that are updated on a continual basis;

(3) Propose or identify locational based incentives and other mechanisms for the deployment of cost-effective local energy resources that satisfy planning objectives;

(4) Propose cost-effective methods of effectively coordinating existing programs, incentives, and tariffs to maximize the locational benefits and minimize the incremental costs of local energy resources;

(5) Identify any additional spending by the distribution company necessary to integrate cost-effective local energy resources into distribution planning consistent with the goal of yielding net benefits to ratepayers;

(6) Identify any additional barriers to the deployment of local energy resources;

(e) Any distribution infrastructure necessary to accomplish the Grid Modernization Plan is eligible for pre-authorization by the Department, through a review of the company’s proposed investments and cost estimates, as supported by the business case.

(f) Each Grid Modernization Plan prepared under subsection (d) shall be submitted for approval and comment by the Grid Modernization Consumer Board every 5 years, on or before April 1.

(1) The electric distribution companies shall provide any additional information requested by the Board that is relevant to the consideration of the Plan. The Board shall review the plan and any additional information and submit its approval or comments to the electric distribution companies not later than 3 months after the submission of the plan. The electric distribution companies may make any changes or revisions to reflect the input of the Board.

(2) The electric distribution companies shall submit their plans, together with the Board’s approval or comments and a statement of any unresolved issues, to the Department every 5 years, on or before October 31. The Department shall consider the plans and shall provide an opportunity for interested parties to be heard in a public hearing.

(3) Not later than 180 days after submission of a plan, the Department shall issue a decision on the plan which ensures that the electric distribution companies have satisfied the criteria set forth by the Department and shall approve, modify and approve, or reject and require the resubmission of the plan accordingly.

(4) Each Grid Modernization Plan shall be in effect for 5 years.

(g) There shall be a Grid Modernization Consumer Board to consist of the commissioner of the department of energy resources, who shall serve as chair, and 7members including the attorney general, or his designee, the commissioner of the department of environmental protection, or his designee, and additional members appointed by the Department: 1 shall be a representative of residential consumers, 1 shall be a representative of low-income consumers, 1 shall be a representative of the environmental community, 1 shall be a representative of the clean energy technology industry, and 1 shall be a representative of businesses, including large C& I end users. Interested parties shall apply to the Department for designation. Members shall serve for terms of 6 years and may be reappointed. There shall be 1 non-voting ex-officio member from each of the electric distribution companies.

(1) The Board shall, as part of the approval process by the Department outlined in subsection (f), seek to maximize net economic benefits through use of distributed energy resources and achieve transmission, reliability, climate and environmental goals. The Board shall review and approve Grid Modernization Plans and budgets, and work with electric distribution companies in preparing resource assessments. Approval of Grid Modernization Plans and budgets shall require a two-thirds majority vote.

(2) The Board may retain expert consultants, provided, however that such consultants shall not have any contractual relationship with an electric distribution company doing business in the commonwealth or any affiliate of such company. The Board shall annually submit to the Department a proposal regarding the level of funding required for the retention of expert consultants and reasonable administrative costs. The proposal shall be approved by the Department either as submitted or as modified by the Department. The Department shall allocate funds sufficient for these purposes from the Grid Modernization Plan budgets.

(3) The electric distribution companies shall provide quarterly reports to the Board on the implementation of their respective plans. The reports shall include a description of progress in implementing the plan, an evaluation of the metrics identified by the Department in the proceeding described in subsection (c), and such other information or data as the Board shall determine. The Board shall provide an annual report to the department and the joint committee on telecommunications, utilities and energy on the implementation of the plan which includes descriptions of the programs, investments, cost-effectiveness, and savings and benefits during the previous year.

SECTION 22: Section 69G of chapter 164, as appearing in the 2018 Official Edition, is hereby amended by inserting the following definition after “department”:

“Distributed Renewable Generation Facility”, a facility producing electrical energy from any source that qualifies as a renewable energy generating source under section 11F of chapter 25A and is interconnected to a distribution company.

Said section 69G of said chapter 164 is also amended by adding the following definition after “generating facility”:

“Infrastructure Resource Facility”, an electric transmission line, an electric distribution line, or an ancillary structure which is an integral part of the operation of a transmission or distribution line, that meets the following criteria: a) is estimated to cost more than $1 million; b) is needed due to asset condition or load-growth; c) has a date of need at least 36 months in the future; d) has a need that can be addressed by load reductions of less than 20 percent of the relevant peak load in the area of the defined need; and e) such other criteria as the Board may determine. A line that is constructed, owned, and operated by a generator of electricity solely for the purpose of electrically and physically interconnecting the generator to the transmission system of a transmission and distribution utility shall not be considered an Infrastructure Resource Facility.

Said section of said chapter is also amended by adding the following definition after “liquefied natural gas”:

“Local Energy Resource Alternative”, the following methods used either individually or combined to meet or defer in whole or in severable part the need for a proposed Infrastructure Resource Facility: energy efficiency and conservation, energy storage system, electric vehicles, load management technologies, demand response, distributed renewable generation facilities, and other relevant technologies determined by the Board.

SECTION 23: Chapter 164 of the General Laws is hereby amended by inserting after section 69J, as appearing in the 2018 Official Edition, the following section:

Section 69J 1/6:

(a) No applicant shall commence construction of an Infrastructure Resource Facility at a site unless a Determination of Wires has been approved by the board. In addition, no state agency shall issue a construction permit for any Infrastructure Resource Facility unless the Determination of Wires has been approved by the board and the facility conforms with such determination. Applications for Determination of Wires must be filed with the board no later than four years prior to date of in-service need.

(b) A petition for a Determination of Wires shall include, in such form and detail as the

board shall from time to time prescribe, the following information: (1) a description of the Infrastructure Resource Facility, site and surrounding areas; (2) an analysis of the need for the facility over its planned service life, both within and outside the commonwealth, including date of need for the facility; (3) a description of the alternatives to the facility, such as other methods of transmitting or storing energy, other site locations, other sources of electrical power or gas, a reduction of requirements through load management, or local energy resource alternatives; and (4) the results of an investigation by an independent 3rd party, which may be the Board or a contractor selected by the Board, of local energy resource alternatives that may, alone or collectively, address or defer part or all of the need identified in the application for the Infrastructure Resource Facility. The investigation must set forth the total projected costs and economic benefits to ratepayers of the Infrastructure Resource Facility, as well as of the local energy resource alternative(s), over the effective life of the proposed Infrastructure Resource Facility.

(c) Prior to issuing a Determination of Wires, the Board must consider whether it is possible for any Local Energy Resource Alternative(s), alone or in combination, to meet or defer some or all of the identified need. In its consideration, the Board shall compare the Infrastructure Resource Facility to Local Energy Resource Alternatives based on uniform, standard criteria, including benefit-cost analysis. In its Determination, the Board must make specific findings regarding: i) the portions of the identified need, if any, that cannot be addressed or deferred by Local Energy Resource Alternative(s), due to engineering or public safety reasons; ii) the portions of the identified need, if any, for which the Board determines Local Energy Resource Alternative(s), alone or in combination, may meet or defer the need more cost-effectively, as defined in subsection f, than the Infrastructure Resource Facility, and the duration of such deferral; and iii) additional portions of identified need, if any. Notice of issuance of a Determination of Wires must be provided to the town or city administrator of each municipality in which the related Infrastructure Resource Facility or Local Energy Resource Alternative(s) is located.

(d) Upon issuance of a Determination of Wires that contains a finding that one or more Local Energy Resource Alternative(s) may satisfy or defer a portion of the identified need more cost-effectively, as defined in subsection f, than the Infrastructure Resource Facility, the applicant must engage in a transparent, open solicitation for resources that can meet or defer that portion of the need, as well as any additional portions of identified need. Any requests for proposals shall be reviewed by the Department in consultation with DOER, the Energy Efficiency Advisory Council, and the Grid Modernization Consumer Board. The applicant’s selection of resources for contracting shall be carried out in consultation with DOER, and any contracts shall be reviewed and approved by the Department.

(e) If during the review of contracts by the Department, it is determined that an Infrastructure Resource Facility will meet the identified need more cost-effectively, as defined in subsection f, than the Local Energy Resource Alternative(s), such finding shall serve as prima facie evidence of the Infrastructure Resource Facility being the “lowest possible cost” for the Board’s determination under Section 69J.

(f) Within three months of enactment of this section, the Department of Energy Resources shall develop, in consultation with the Energy Efficiency Advisory Council, a framework for benefit-cost analysis to be applied to evaluations of Infrastructure Resource Facilities and Local Energy Resource Alternatives, as a determinant of cost-effectiveness. The Total Resource Cost test utilized in the Energy Efficiency programs shall be appropriately modified to account for the value of reliability and other site-specific costs, benefits and risks appropriate to consideration of Local Energy Resource Alternatives. Categories of costs and benefits may include: ratepayer benefits; reasonably foreseeable environmental and public health compliance costs; line losses; local reliability; market price suppression effects for energy and capacity; fuel price risks; avoided transmission and distribution investments; electric generation supply costs and reductions; capacity market costs and reductions; ancillary services costs and reductions; transmission costs and reductions; distribution system costs and reductions; outage costs and reductions for electric customers; renewable energy certificate costs; fuel costs; demand-reduction induced price effects; and other costs and benefits of switching to electricity-based end uses. No later than six months after enactment of this section, such framework shall be considered by the Board in creating regulations regarding the Board’s process and criteria for determining cost-effectiveness and issuing a Determination of Wires.

(g) Within ten months of enactment of this section, the Department shall issue criteria outlining acceptable methods for securing contracts for Local Energy Resource Alternatives. The Department may consider whether utility performance incentives are appropriate. Any such incentives must be included in the cost effectiveness analysis set forth in subsection f.

(h) If the Board determines that one or more local energy resources alternative(s) can sufficiently address or defer the identified need at greater overall economic benefit to ratepayers across the region than the Infrastructure Resource Facility, but at a higher cost to ratepayers in

the Commonwealth, the Board shall make reasonable efforts to achieve within 180 days an agreement among the states within the ISO-NE region to allocate the cost of the local energy resource alternative(s) among the ratepayers of the region using the allocation method used for regional transmission lines or a different allocation method that results in lower costs than the proposed Infrastructure Resource Facility to the ratepayers of the Commonwealth.

SECTION 24: Section 69J of chapter 164 of the General Laws, as appearing in the 2018 Official Edition, is hereby amended by striking the third paragraph and inserting in its place thereof the following paragraph:

A petition to construct a facility shall include, in such form and detail as the board shall from time to time prescribe, the following information: (1) a description of the facility, site and surrounding areas; (2) an analysis of the need for the facility, either within or outside, or both within and outside the commonwealth; (3) a description of the alternatives to the facility, such as other methods of transmitting or storing energy, other site locations, other sources of electrical power or gas, or a reduction of requirements through load management; (4) any applicable Determination of Wires; and (5) a description of the environmental impacts of the facility, including impacts on greenhouse gas emissions. The board shall be empowered to issue and revise filing guidelines after public notice and a period for comment. A minimum of data shall be required by these guidelines from the applicant for review concerning land use impact, water resource impact, air quality impact, solid waste impact, radiation impact and noise impact.

SECTION 25. Within one year of the effective date of this act, the Executive Office of Energy and Environmental Affairs shall promulgate regulations to develop and implement a low carbon fuel standard. Said clean fuel standard shall aim to reduce the carbon intensity of transportation fuels, while accounting for the full lifecycle greenhouse gas emissions of all fuels.

SECTION 26. Chapter 25A of the General Laws is hereby amended by adding the following section:-

Section 17. (a) The department shall establish an energy storage system target for the deployment of energy storage systems by distribution company customers, distribution companies and municipal lighting plants to achieve a statewide energy storage deployment target of 2,000 megawatts by January 1, 2030 and a subsequent statewide energy storage deployment target to be achieved by January 1, 2035. The department shall set annual statewide deployment targets to be achieved in each distribution company’s and municipal lighting plant’s service territory in order to reach the energy storage system targets required under this section.

(b) To achieve the annual targets established in subsection (a), the department may consider a variety of deployment mechanisms and may require policies to encourage the cost-

effective deployment of energy storage systems including, but not limited to: (i) distribution company or municipal lighting plant programs to encourage private deployment of energy storage systems by their customers; (ii) procurement of cost-effective energy storage systems to be owned and operated by a distribution company; provided, however, that any such procurement shall finance the deployment of energy storage systems for the purpose of: (1) a nonwires alternative to investment in distribution; (2) deferring investment in distribution infrastructure that would otherwise be needed to address actual or forecasted overloads on distribution circuits or at substations; or (3) improving the capability of the distribution system to recover from adverse events that otherwise could result in long-term outages in critical areas of the distribution system; (iii) the use of alternative compliance payments collected pursuant to subsection (e)to fund a grant program for private development; and (iv) the use of energy storage to replace fossil generation and the use of energy efficiency funds under section 19 of chapter 25 if the department determines that customer-owned energy storage provides sustainable peak load reductions on either the electric or gas distribution systems and is otherwise consistent with section 11G of this chapter.

(c) A distribution company shall not own or operate energy storage systems equal to more than 20 per cent of the annual target established by the department for the distribution company’s service territory established in subsection (a) for the purpose of achieving the annual targets; provided, however, that the department shall ensure that no distribution company shall prevent or interfere with a customer or developer’s ability to enter into agreements to own or operate behind the meter energy storage systems.

(d) Each distribution company and municipal lighting plant shall annually make a map available that identifies areas of critical need for energy storage systems within their service territory. Each distribution company and municipal light plant shall identify on the map areas of actual or forecasted overloads on distribution circuits or at substations. The map shall aggregate system detail as necessary for distribution system security.

(e) The department shall promulgate regulations to: (i) establish a carve-out of the alternative energy portfolio standard obligation under section 11F1/2 for energy storage systems as defined in section 1 of chapter 164; and (ii) allow each distribution company and municipal lighting plant to discharge its obligations under this section by either procuring attributes from energy storage systems that qualify under the carve-out established pursuant to this section or by making an alternative compliance payment in an amount to be established by the department. The regulations shall require distribution companies and municipal lighting plants to annually submit to the department a report that shows it is in compliance with this section.

(f) Annually, not later than December 1, the department shall make available on its website a report on the energy storage system target program.

(g) The department shall promulgate regulations to implement this section.

SECTION 27. Section 139 of chapter 164 is hereby amended by striking out subsection (f) and inserting in place thereof the following subsection:- (f) No aggregate net metering cap shall apply to solar net metering facilities with the exception that the maximum amount of generating capacity eligible for net metering by a municipality or other governmental entity shall be 10 megawatts.

SECTION 28. Subsection (a) of section 10 of chapter 21N of the General Laws, as so appearing, is hereby amended by inserting at the end thereof the following words:- Upon the adoption of the state plan, all certificates, licenses, permits, authorizations, grants, financial obligations, projects, actions and approvals for any proposed projects, uses or activities in and by a state agency or state authority shall be consistent, to the maximum extent practicable, with the plan.

SECTION 29. Section 26A of chapter 21 of the General Laws, as appearing in the 2018 Official Edition, is hereby amended by inserting after the word “effluent”, in line 67, the following words:- hydraulic fracturing fluid.

SECTION 30. Section 27 of said chapter 21, as so appearing, is hereby amended by adding the following clause:-

(14) Enforce restrictions on drilling, waste treatment and disposal and mining activities which have been enacted to protect the water quality and the natural resources of the commonwealth.

SECTION 31. Section 42 of said chapter 21, as so appearing, is hereby amended by inserting after the word “commonwealth”, in line 3, the following words:- ,or into an injection well or into a treatment works in the commonwealth.

SECTION 32. (a) As used in this section, the following words shall have the following meanings unless the context clearly requires otherwise:-

“Fluid”, any material or substance which flows or moves whether in semi-solid, liquid, sludge, gas or any other form or state.

“Gas”, all natural gas, whether hydrocarbon or nonhydrocarbon, including hydrogen sulfide, helium, carbon dioxide, nitrogen, hydrogen, casinghead gas and all other fluid hydrocarbons not defined as oil.

“Hydraulic fracturing”, the process of pumping a fluid into or under the surface of the ground in order to create fractures in rock to produce or recover oil or gas.

“Oil”, crude petroleum, oil and all hydrocarbons, regardless of specific gravity, that are in the liquid phase in the reservoir and are produced at the wellhead in liquid form.

“Oil and gas”, oil and gas collectively, or either oil or gas, as the context may require to give effect to the purposes of this chapter.

(b) a person shall not engage in hydraulic fracturing in the Commonwealth.

(c) a person shall not collect, store, treat or dispose of wastewater hydraulic fracturing fluid, wastewater solids, drill cuttings or other byproducts from hydraulic fracturing in the Commonwealth.

SECTION 33. The Department of Environmental Protection shall promulgate regulations requiring producers, importers, and wholesale distributors that sell, supply, or offer for sale transportation fuels in Massachusetts to report all Massachusetts transportation fuel sales, and the source of any fuel sold, to the Department of Environmental Protection. The regulations shall require the Department of Environmental Protection to compute and track the individual and collective lifecycle greenhouse gas emissions of all fuels, as well as the carbon intensity of each fuel, that are reported by regulated entities on an annual basis.

SECTION 34. All sales, lifecycle greenhouse gas emissions, and carbon intensity data collected or computed by the Department of Environmental Protection pursuant to the regulations required by Section 1 shall be published by the Department in an annual report that is available to the public.

SECTION 35. The regulations required by Section 1 shall be promulgated within 180 days of passage of this Act, and must take effect within 180 days of promulgation.

SECTION 36. Notwithstanding any general or special law to the contrary, the department of energy resources may require distribution companies, as defined in section 1 of chapter 164 of the General Laws, to jointly and competitively conduct additional clean energy generation resources, as defined in section 83B of chapter 169 of the acts of 2008, solicitations and procurements, if it finds it is necessary to meet the statewide greenhouse gas emissions limits established in Chapter 21N of the General Laws. Any selected projects must use practices to avoid, minimize, and mitigate impact to wildlife, natural resources, ecosystems, and traditional or existing water-dependent uses.

Name:	District/Address:
Marc R. Pacheco	First Plymouth and Bristol
Antonio F. D. Cabral	13th Bristol	5/13/2021