Amendment #150 to H4100

Establish Energy Policy and Electricity Cost Reduction Commission

Representatives Jones of North Reading, Peterson of Grafton, Hill of Ipswich, Poirier of North Attleborough, deMacedo of Plymouth, Adams of Andover, Barrows of Mansfield, Bastien of Gardner, Beaton of Shrewsbury, Boldyga of Southwick, D'Emilia of Bridgewater, Diehl of Whitman, Durant of Spencer, Fattman of Sutton, Ferguson of Holden, Frost of Auburn, Gifford of Wareham, Harrington of Groton, Humason of Westfield, Hunt of Sandwich, Kuros of Uxbridge, Levy of Marlborough, Lombardo of Billerica, Lyons of Andover, O'Connell of Taunton, Orrall of Lakeville, Ross of Attleboro, Smola of Palmer, Vieira of Falmouth, Webster of Pembroke, Winslow of Norfolk, Wong of Saugus and Howitt of Seekonk move to amend the bill by inserting, after section xx, the following four sections:-

“SECTION AA. Chapter 21A of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by inserting after section 23, the following new section:-

Section 24.  (a) There shall be within the office an energy policy and electricity cost reduction commission, which shall be an independent public entity not subject to the supervision and control of the office or any other executive office, department, commission, board, bureau, agency or political subdivision of the commonwealth. The commission shall promote public transparency regarding the effectiveness and economic cost of energy and electricity policies and programs implemented in the commonwealth. The commission shall be charged with researching and reviewing the economic and electricity cost implications of current and proposed energy and electricity policies in the commonwealth, as well as the impact these policies have on electricity reliability. The commission shall report to the legislature, as prescribed in this section, with comprehensive recommendations for reforms the commonwealth can implement to: (i) encourage business development and job creation; (ii) reduce the costs associated with energy programs funded, in whole or in part, by the commonwealth, particularly programs established pursuant to chapter 169 of the acts of 2008; (iii) reduce the cost of electricity for commercial, industrial, and residential customers; and (iv) increase electricity reliability.

(b) (1)The commission shall consist of 19 persons, as follows: the secretary of energy and environmental affairs and the secretary of housing and economic development, both of whom shall serve as the co-chairs; the attorney general; the inspector general; the commissioner of the department of energy resources or his designee; the chair of the department of public utilities or her designee; 1 person appointed by ISO-New England; 1 person appointed by associated industries of Massachusetts;  1 person appointed by the Massachusetts chapter of the national federation of independent business; 1 person appointed by the Massachusetts clean energy center; 4 persons who are experts in energy efficiency, 1 of whom shall be appointed by the speaker of the house, 1 of whom shall be appointed by the minority leader of the house, 1 of whom shall be appointed by the president of the senate, and 1 of whom shall be appointed by the minority leader of the senate; 5 persons appointed by the Governor, 1 of whom shall be a representative from organized labor, 1 of whom shall be a representative of a Massachusetts green business with 10 or fewer employees, 1 of whom shall be a representative of a Massachusetts green business with 10 or more employees, 1 of whom shall be a representative of an institution of higher education and who is also an expert in the structure of the regional wholesale electricity market, and 1 of whom shall be a representative of an institution of higher education and who is also an expert in energy efficiency.

(2) Members of the commission shall serve terms of 2 years and until their successors are appointed.

(3) Vacancies in the membership of the commission shall be filled by the original appointing authority for the balance of the unexpired term.

(4) The chairs of the commission may designate on an annual basis 1 or more commission members as vice-chairs of the commission.  The commission shall select any other officers it deems necessary.

(5) The members of the commission shall receive no compensation for their services, but shall be reimbursed for any usual and customary expenses incurred in the performance of their duties.

(6) The powers of the commission shall include, but not be limited to: (i) using voluntary and uncompensated services of private individuals, agencies and organizations as may from time to time be offered or needed; (ii) recommending policies and making recommendations to agencies and officers of the state and local subdivisions of government  to effectuate the changes outlined in section (a); (ii) enacting by-laws for the commission’s own governance; and (iv) holding regular public meetings, fact-finding hearings, and other public forums as the commission deems necessary.

(7) The commission may request from all state agencies such information and assistance as the commission may require.

(c) (1)  The commission shall issue an annual report which shall include, at minimum an analysis of the economic cost, electricity cost, and implication for electricity reliability of: (i) implementing administrative, regulatory, and legislative rulemaking as it pertains to electricity and the structure of the wholesale electricity market; and (ii) meeting legislative and administrative goals and requirements related to greenhouse gas reductions, energy efficiency, and renewable energy generation, particularly goals established pursuant to Chapter 169 of the Acts of 2008.

(2) In so doing, the commission shall at minimum research, evaluate, consider and report on: (i) the accuracy of metrics used to assess the success of ratepayer and taxpayer funded, in whole or in part, programs established pursuant to Chapter 169 of the Acts of 2008; (ii) the accuracy of metrics used to assess the cost effectiveness of ratepayer and taxpayer funded, in whole or in part, programs established pursuant to Chapter 169 of the Acts of 2008; (iii) the cost impact of the mandatory renewable energy charge and the energy efficiency charge, established pursuant to Section 19 and 20 of Chapter 25 of the General Laws, on commercial, industrial, and residential electric service customers; (iv) the effectiveness and necessity of incentives awarded to electric distribution and gas distribution companies pursuant to Chapter 169 of the Acts of 2008; (v) the economic impact of residential, commercial and industrial construction requirements for green communities, established pursuant to section 10 of chapter 25A, on municipalities that qualify as a green community; (vi) the electricity cost implications and associated economic impact of scheduled and projected investments in smart meter technology and transmission infrastructure; (vii) the electricity cost implications and associated economic impact of scheduled increases in demand resources, aggregate net metering capacity, and renewable energy capacity, specifically scheduled and projected installations of wind and solar capacity; (viii) the structure of the regional wholesale electricity market and its impact on retail electricity costs; and (iix) the overall impact of the Commonwealth’s energy and electricity policies on economic growth in the Commonwealth, specifically net job creation and business development, establishment, and retention.

(d) (1) The commission shall consult with electric distribution companies, natural gas distribution companies, green businesses residing in the Commonwealth, and other interested parties, providing at least one opportunity for public comment, as well as the public review of the commission’s annual draft report prior to filing the report with the legislature.

(2) The commission shall convene its first meeting within 45 days of the passage of this Act and shall file its first report, along with any recommendations for legislative or regulatory reforms deemed necessary to effectuate the changes outlined in subsection (a), with the clerk of the house and the clerk of the senate, and with the house and senate chairs of the joint committee on telecommunications, utilities and energy, within 180 days of the commission’s first meeting.  All subsequent annual reports shall be filed by the commission no later than December 31 of each year.

(e) Joint committees of the general court and the house and senate committees on ways and means, when reporting favorably on bills referred to them that will amend or modify the commonwealth’s energy and electricity policies, shall include a review and evaluation conducted by the commission pursuant to this section.

(f) (1) Upon request of a joint standing committee of the general court having jurisdiction or the committee on ways and means of either branch, the commission on energy policy and electricity cost reduction shall conduct a review and evaluation of proposed amendments or modifications to the commonwealth’s energy and electricity policies, in consultation with relevant state agencies, and shall report back to the joint standing committee or committee on ways and means within 90 days of the request.

(2) The commission’s review and report on proposed changes shall include a detailed evaluation and explanation of the potential environmental and economic impacts of said changes on residents and businesses in the commonwealth, as well as the impact of said changes on electricity reliability. In so doing, the report shall address, at minimum the impact of proposed changes on: (i) business development and retention in the commonwealth; (ii) net job creation; (iii) the costs associated with energy programs funded, in whole or in part, by the commonwealth, particularly programs established pursuant to chapter 169 of the acts of 2008; (iv) the cost of electricity for commercial, industrial, and residential customers; and (v) electricity reliability.

(3) No change in energy or electricity policy shall be implemented until such a review has been undertaken and a report filed with the legislature pursuant to this section.

(4) The party or organization on whose behalf the bill is filed shall provide the commission on energy policy and electricity cost containment with any economic cost, electricity cost, electricity reliability, or environmental impact data that they have. All interested parties supporting or opposing the bill shall provide the commission on energy policy and electricity cost containment with any information relevant to the commission’s review.

SECTION BB. Notwithstanding any general or special law to the contrary the division of energy resources shall, not less than once every 5 years, complete a review of all renewable energy portfolio standards and issue a report detailing how those standards are impacting economic growth in the Commonwealth, specifically net job creation and business development, establishment, and retention.  Said report shall be filed with the clerk of the house and clerk of the senate, and with the house and senate chairs of the joint committee on telecommunications, utilities and energy.

SECTION CC. Section 24 of Chapter 21A is hereby repealed.

SECTION DD. Section BB and CC of this act shall be effective on December 31, 2023.”.