Bill SD.2945

SENATE DOCKET, NO. 2945 FILED ON: 1/12/2022

SENATE . . . . . . . . . . . . . . No.

By Ms. Creem, a petition (accompanied by bill) (subject to Joint Rule 12) of Cynthia Stone Creem for legislation to incentivize the adoption of zero-emission vehicles and the early retirement of high-emission vehicles. 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 incentivizing the adoption of zero-emission vehicles and the early retirement of high-emission vehicles.

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 16 of chapter 25A of the General Laws, as appearing in the 2020 Official Edition, is hereby amended by inserting after the word “section”, in line 1, the following words:- and sections 18, 19, and 20.

SECTION 2. 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 3. Said chapter 25A is hereby further amended by adding the following 3 sections:-

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) For vehicles classified by the United States Department of Transportation as within the Class 1 weight class, a rebate for purchase under this section shall not be less than $2,500 per vehicle; provided, that a rebate or incentive under this section shall be offered in addition to rebates or incentives offered under section 19 of this chapter; and provided further, that no rebate shall be provided for vehicles with a sales price that exceeds $60,000.

(c) By no later than January 1, 2024, rebates or other financial incentives provided pursuant to subsection (b) shall be offered at the point of sale.

(c) The commissioner, in consultation with the department of revenue, 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, consumers in rural communities, 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 rebates or incentives issued.

(e) Plug-in hybrid electric vehicles with a battery range of at least 30 miles shall be considered zero-emission vehicles for the purposes of this section.

Section 19. (a) The commissioner shall, subject to appropriation, establish a program to provide rebates or other financial incentives to consumers from households earning less than 400 percent of the federal poverty level 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) For vehicles classified by the United States Department of Transportation as within the Class 1 weight class, a rebate for purchase under this section shall not be less than $5,000 per vehicle for consumers from households earning 250 percent of the federal poverty level or less, and not less than $500 for consumers from households earning more than 250 percent of the federal poverty level and less than 400 percent of the federal poverty level; provided, that a rebate under this section shall be offered in addition to rebates or incentives offered under section 18 of this chapter; and provided further, that no rebate shall be provided for vehicles with a sales price that exceeds $60,000.

(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, consumers in rural communities, 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.

(e) Plug-in hybrid electric vehicles with a battery range of at least 30 miles shall be considered zero-emission vehicles for the purposes of this section.

Section 20. (a) As used in this section the following terms shall, unless the context clearly requires otherwise, have the following meanings:

“Cash for combustors program” or “program”, the high-emission vehicle retirement program established in subsection (b).

“High-impact vehicle”, passenger vehicles and light- and medium-duty trucks with high levels of emissions, as determined by the commissioner in consultation with the Massachusetts clean energy technology center and the registrar of motor vehicles.

“Low income”, a household income of not more than 80 per cent of the commonwealth’s median income, adjusted for household size.

“Low-emission mobility option”, refers to (i) public transit; (ii) an electric or standard bicycle or other pedaled vehicle; (iii) or a car sharing organization, as defined in section 32J of chapter 90, with a fleet made up entirely of zero-emission vehicles.

“Moderate income”, a household income of not more than 120 per cent of the commonwealth’s median income, adjusted for household size.

“Sufficient remaining life”, a determination by the commissioner that the high-impact vehicle would be capable of continued use, evidenced by proof of current registration and emissions inspection, as defined in section 142M of chapter 111, or other criteria determined by the commissioner.

(b) The commissioner shall, subject to appropriation, establish a cash for combustors program designed to reduce emissions of greenhouse gases, improve air quality, and benefit low-income residents through the replacement of high-impact vehicles with zero-emission vehicles or low-emission mobility options. The program shall be administered by the commissioner. The commissioner shall set specific, measurable goals for the replacement of high-impact vehicles annually.

(c) The cash for combustors program shall facilitate the voluntary retirement of high-impact vehicles and the replacement of retired high-impact vehicles with zero-emission vehicles or low-emission mobility options. To be eligible for retirement through the program, a high-impact vehicle shall: (i) have been continuously registered in the commonwealth for 2 years prior to acceptance into the program or otherwise shown to have been driven primarily in the commonwealth for the prior 2 years and not have been registered in another state or country in the prior 2 years; (ii) have been continuously registered to one owner or to the current owner’s spouse, parents, children, brothers, or sisters for 2 year prior to acceptance into the program; and (iii) be determined to have sufficient remaining life. High-impact vehicles retired pursuant to the program shall be permanently removed from operation and dismantled.

(d) The cash for combustors program shall provide compensation of not less than $1,500 to low-income high-impact vehicle owners for each high-impact vehicle retired through the program. The program shall provide additional compensation of not less than $2,500 to low-income high-impact vehicle owners for a replacement zero-emission vehicle or a low-emission mobility option voucher.

(e) The cash for combustors program shall provide compensation of not less than $1,000 to high-impact vehicle owners who are not low-income for each high-impact vehicle retired through the program. The program shall provide additional compensation to high-impact vehicle owners who are not low-income for a replacement zero-emission vehicle or a low-emission mobility option voucher; provided that the amount of additional compensation provided to a high-impact vehicle owner who is not low-income shall not exceed the amount of additional compensation provided to a low-income high-impact vehicle owner.

(f) Receipt of compensation under subsections (d) or (e) for a replacement zero-emission vehicle shall not prevent a resident from receiving a rebate through another state program for the same replacement vehicle.

(g) The commissioner may limit eligibility for high-impact vehicle owners who are not low or moderate income to ensure the program adequately services persons of low or moderate income.

(h) Compensation for either retired or replacement high-impact vehicles may be increased as necessary to maximize the emission reduction and air quality benefits of the program while also ensuring participation by low- and moderate-income high-impact vehicle owners. Increases in compensation amounts may be based on factors including, but not limited to, the age and fuel efficiency of the retired high-impact vehicle, the emissions benefits of retiring high-impact vehicle, the emissions impact of any replacement motor vehicle, participation by low- and moderate-income high-impact vehicle owners, and the location of the high-impact vehicle in an area of the commonwealth with the poorest air quality.

(i) Not later than March 1 annually, the commissioner shall file a report on the cash for combustors program’s activity in the previous calendar year with the clerks of the house of representatives and the senate, the joint committee on transportation, the joint committee on environment, natural resources and agriculture and the house and senate committees on ways and means. The report shall include: (i) the number and amount incentives provided; (ii) the make, model and type of each retired high-impact vehicle and each replacement vehicle; (iii) the municipality in which each replacement vehicle is registered; and (iv) the estimated total greenhouse gas emissions reductions achieved from the retirement and replacement of high-impact vehicles; (iv) an accounting of funds allocated to the program and program expenditures by municipality; (v) areas of program success and proposed improvement, including whether waiting lists or backlogs exist and how incentive levels can be modified to maximize participation and emissions reductions. The commissioner shall make annual reports available on the department website.

(j) The commissioner, in consultation with the Massachusetts clean energy technology center registrar of motor vehicles, shall promulgate regulations to implement this section. At least once per calendar year, the commissioner shall provide outreach to underserved consumers, consumers in rural communities, 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.

SECTION 4. Subsection (e) of section 18 of said chapter 25A and subsection (e) of section 19 of said chapter 25A are hereby repealed.

SECTION 5. Section 4 of this act shall take effect on January 1, 2025.

Name:	District/Address:
Cynthia Stone Creem	First Middlesex and Norfolk