SECTION 1. Chapter 21N is hereby amended by inserting at the following new section:-

SECTION 12. (a) The executive office of energy and environmental affairs shall develop policies, programs, grants, loans and incentives to meet the statewide natural and working lands goal as identified in the plan, including, but not limited to, a communities for a sustainable climate program. The executive office of energy and environmental affairs shall apply and disburse monies and revenues as provided in this section.

(b) The secretary shall establish a communities for a sustainable climate program. The purpose of the program shall be to provide technical and financial assistance, including incentives, grants and loans, to municipalities that qualify as sustainable communities under this section. These incentives, grants and loans shall be used to finance all or a portion of the costs of designing, constructing and implementing actions and strategies to reduce greenhouse gas emissions and increase carbon sequestration on natural and working lands.

(c) To qualify as a community for a sustainable climate, a municipality or other local governmental body shall comply with eligibility requirements developed by the secretary or his designee. Eligibility requirements are intended to incentivize communities to adopt policies and practices that protect, enhance, and restore carbon stocks on natural and working lands beyond business as usual. The secretary shall set eligibility requirements from among, but not limited to, the following: (1) adopt a municipal tree retention and replacement by-law or ordinance; (2) adopt natural resource protection zoning, as defined by the secretary; (3) collect a reasonable fee to be used exclusively for measures to remedy and offset the generation of greenhouse gases caused by activities that convert forest, wetlands, and agricultural lands for development at a size and scale determined by the secretary; (4) adopt a municipal transfer of development rights by-law or ordinance; and (5) adopt and implement a municipal procurement policy for municipal purchasing and substituting wood products for municipal operations and assets, where feasible, including but not limited to, concrete and steel in buildings. The secretary may waive specified requirements based on a written finding that, due to unusual circumstances, a municipality cannot reasonably meet the requirements and that the municipality has committed to alternative measures that advance the purposes of the communities for a sustainable climate program as effectively as adherence to the requirements. The Secretary may adopt alternative eligibility requirements that provide opportunities to achieve the goals of the program.

(d) The secretary may develop policies to provide for consistency and predictability and to help offset the impacts of municipal ordinances and by-laws upon the private sector under the communities for a sustainable climate program that may be adopted by participating communities, including, but not limited to, grants, loans, incentives and tax credits and expedited permitting for practices and strategies consistent with the goals to reduce greenhouse gas emissions and increase carbon sequestration on natural and working lands.

(e) Funding for the communities for a sustainable climate program in any single fiscal year shall be available, without the need for further appropriation, from sources including, but not limited to: (1) the global warming solutions trust fund established in section 35GGG of chapter 10 of the general laws; and (2) land management and restoration grant, loan and incentive programs administered by the executive office of energy and environmental affairs.