AN ACT RELATIVE TO GREEN COMMUNITIES.
Whereas, The deferred operation of this act would tend to defeat its purpose, which is to provide forthwith for renewable and alternative energy and energy efficiency in the commonwealth, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.
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 9A of chapter 7 of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by adding the following 4 paragraphs:-
When purchasing new motor vehicles, the commonwealth shall purchase hybrid or alternative fuel vehicles, as defined in section 1 of chapter 90, to the maximum extent feasible and consistent with the ability of such vehicles to perform their intended functions, at a rate of not less than 5 per cent annually for all new motor vehicle purchases so that, taking into account the existing number of such vehicles owned and operated by the commonwealth, not less than 50 per cent of the motor vehicles owned and operated by the commonwealth shall be hybrid or alternative fuel vehicles by the year 2018.
The division
of operational services shall forward to the department of energy resources all
requests for motor vehicle acquisitions by agencies of the
commonwealth. The department of energy resources shall thereafter
report to the division of operational services regarding the availability of a
hybrid or alternative fuel vehicle that shall achieve the intended use designated
by the requesting agency. The division of operational services, in
consultation with the departments of energy resources and environmental
protection, shall adopt a fuel efficiency standard for passenger vehicles owned
or operated by the commonwealth.
The division
of capital asset management and maintenance, in consultation with the department
of energy resources, shall develop a system of protocols for the acquisition of
alternative fuel vehicles and hybrids, including identifying the potential for
acquisition of heavy, medium and light-duty vehicles, based on the anticipated
mileage and usage of such vehicles, and the effectiveness of single-fuel or
dual-fuel alternative fuel vehicles for the particular purpose identified.
The division
of operational services, jointly with the department of energy resources, and
the executive office of energy and environmental affairs shall submit to the
secretary of administration and finance, the clerks of the senate and house of
representatives and the joint committee on state administration and regulatory
oversight an annual statement on or before July 1 each year detailing the
progress in meeting the requirements of this section. This report
shall include the percentage of fuel used for the alternative fuel vehicles
owned and operated by the commonwealth that qualifies as alternative fuel, as
defined in section 1 of chapter 90, and the amount and cost of non-alternative
fuel foregone as a consequence of the use of alternative fuel.
SECTION 2. Said chapter 7 is
hereby further amended by inserting after section 39C the following section:-
Section 39D. (a)
The commissioner shall require a state agency that initiates the construction
of a new facility owned or operated by the commonwealth or a renovation of an
existing facility owned or operated by the commonwealth when the renovation
costs exceed $25,000 and includes the replacement of systems, components or
other building elements which affect energy or water consumption to design and
construct or renovate the facility in a manner that minimizes the life-cycle
cost of the facility by utilizing energy efficiency, water conservation or
renewable energy technologies under the following criteria:
(1) the state agency shall utilize alternate technologies when
the life-cycle cost analysis conducted under subsection (b) shows that such
systems are economically feasible;
(2) each
new educational facility, including a municipal educational facility financed
through the school building assistance program, for which the projected demand
for hot water exceeds 1,000 gallons per day or which operates a heated swimming
pool, shall be constructed, whenever economically and physically feasible, with
a solar or other renewable energy system as the primary energy source for the
domestic hot water system or swimming pool of the facility;
(3) the
division of capital asset management and maintenance or the state agency shall,
in the design, construction, equipping and operation of such facilities,
coordinate these efforts with the department of energy resources in order to
maximize reliance on, and the benefits of, renewable energy research and
investment activities; and
(4) all higher education construction projects shall, at a
minimum incorporate the MA-CHPS Green Schools Guidelines standards or an
equivalent standard.
(b) The
division of capital asset management and maintenance or the state agency
initiating the construction or renovation of a facility as described in
subsection (a) shall conduct a life-cycle cost analysis of any such facility’s
proposed design that evaluates the short-term and long-term costs and the
technical feasibility of using alternate technologies to provide lighting,
heat, water heating, air conditioning, refrigeration, gas or electricity. In
calculating life-cycle costs, a state agency shall include the value of
avoiding carbon emissions, creating renewable energy certificates and other
environmental and associated benefits created from the utilization of alternate
technologies, as applicable. This value shall be equal to the bid
price of the published market value of any such benefit and shall increase or
decrease at a projected rate determined by the department of energy
resources. To calculate life-cycle costs, a state agency shall use a
discount rate equal to the rate that the commonwealth’s tax-exempt long-term
bonds are yielding at the time of said calculation and shall assume that the
cost of fossil fuels and electricity will increase at the rate of 3 per cent
per year above the estimated rate of inflation or at a rate determined by the
department of energy resources.
(c) Notwithstanding
sections 11C and 11I of chapter 25A or any regulations issued thereunder, the
division of capital asset management and maintenance may procure energy
management services jointly with a state agency or a building authority that is
procuring energy or related services. Said sections 11C and 11I shall apply to
the extent feasible as determined by the commissioner of energy resources.
(d) For
purposes of this section, the term “economically feasible” shall mean that the
cost of installing and operating an alternate technology is lower than the cost
of installing and operating the energy, energy-using technology or water-using
technology that would otherwise be installed, as determined by a life-cycle
cost analysis.
(e) The
division of capital asset management and maintenance or the state agency
initiating the construction or renovation of a facility subject to the
requirements of subsection (a) shall file with the department of energy
resources a report detailing the agency’s compliance with this section with
respect to each such facility.
(f) The
department of energy resources shall issue an annual report to the general
court detailing the compliance record of all state agencies with the
construction and renovation provisions of this section.
Section 35II. There shall be established and
set up on the books of the commonwealth a separate fund to be known as the RGGI
Auction Trust Fund. The fund shall consist of amounts credited to
the fund in accordance with section 22 of chapter 21A and expended exclusively
for the purposes of said section 22 of said chapter 21A. The fund
shall be administered by the commissioner of energy resources, subject to the
approval of the secretary of energy and environmental affairs. The
fund shall be an expendable trust fund and shall not be subject to
appropriation or allotment. The commissioner shall report monthly by
source all amounts credited to the fund and all expenditures by subsidiary made
from the fund on the
SECTION 4. Chapter 12 of the
General Laws is hereby amended by striking out section 11E, as appearing in the
2006 Official Edition, and inserting in place thereof the following section:-
Section 11E. (a) There shall be within the
office of the attorney general, an office of ratepayer advocacy. The attorney general, through the office of
ratepayer advocacy, may intervene, appear and participate in administrative,
regulatory, or judicial proceedings on behalf of any group of consumers in
connection with any matter involving rates, charges, prices and tariffs of an
electric company, gas company, generator, transmission company, telephone
company and telegraph company doing business in the commonwealth and subject to
the jurisdiction of the department of public utilities or the department of
telecommunications and cable. In
addition, the attorney general may intervene, appear and participate in federal
energy regulatory commission or other federal energy proceedings on behalf of
ratepayers in the commonwealth.
The office of
the ratepayer advocacy shall be under the direction of an assistant attorney
general appointed under section 2. The
assistant attorney general shall devote his full time and attention to the
duties of the office.
For the
purpose of such an intervention, appearance or participation, the attorney
general may expend such funds as may be appropriated. These expenditures shall
not exceed annually the amount assessed against such electric, gas, telephone
and telegraph company under section 3 of chapter 24A, notwithstanding
subsection (b). The attorney general
shall not expend any of such funds if the expenditure shall conflict with his
duties under section 3.
(b) In
the performance of his duties under this section, the attorney general may
retain an expert or a consultant to assist in proceedings before the department
of public utilities or the department of telecommunications and cable. If the
attorney general determines that the services of an expert or a consultant are
necessary in a proceeding, he shall file notice in the proceeding that includes
the type of expert or consultant sought and the anticipated cost. Upon
the filing of such notice, the department before which the proceeding is
commencing shall allow full parties to the proceeding the opportunity to
comment regarding the necessity or desirability of such services. Absent
a showing that the costs proposed are unnecessary for the attorney general to
represent ratepayer interests in the proceeding or that such costs are not
reasonable or proper, the use of the expert or consultant shall be
approved. Costs for an expert or a consultant shall not exceed $150,000
per proceeding unless approved by the department based upon exigent
circumstances, including the complexity of the proceeding. All
reasonable and proper expenses, as defined in this section, shall be borne by
the affected party in the proceeding and shall be paid by such party at such
times and in such manner as the attorney general directs. All reasonable and
proper costs and expenses, as defined in this section, shall be recognized by
the departments for all purposes as proper business expenses of the affected
party, recoverable through rates without further approval from the departments.
(c) The
attorney general may request, orally or in writing, that any company subject to
the jurisdiction of the department of public utilities or the department of
telecommunications and cable respond to not more than 15 information requests,
including subparts, per calendar month regarding any matter related to the
rates, charges, tariffs, books or service quality of the company, and the
company shall answer these information requests fully and completely in a
reasonably prompt manner, not to exceed 30 calendar days from the date of
issuance, regarding any issue that is within the jurisdiction of the
department. Department rules pertaining to the scope of questions and
objections to discovery shall apply to any such request and the department
shall have jurisdiction to rule on any objections or motions to compel.
If the company fails to answer the information requests in a reasonably prompt
manner, the attorney general may request enforcement of this subsection from
the department having jurisdiction over the company.
SECTION 5. Chapter 13 of the
General Laws is hereby amended by inserting after section 97 the following
section:-
Section 97A. The board of registration of
home inspectors, in consultation with the state board of building regulations
and standards, the executive office of energy and environmental affairs and the
energy efficiency advisory council, shall develop requirements and adopt
regulations to require documents to be provided to a buyer of a single-family
residential dwelling or a multiple-family residential dwelling with less than 5
dwelling units, or a condominium unit at the time of closing, outlining the
procedures and benefits of a home energy audit; provided however, that no
additional fees shall be imposed or collected in connection with the provision
of such documents.
SECTION 6. Section 7 of
chapter 21A of the General Laws, as so appearing, is hereby amended by striking
out, in the first sentence, the word “division” and inserting in place thereof
the following word:- department.
SECTION 7. Said chapter 21A
is hereby further amended by adding the following 2 sections:-
Section 21. The secretary, in conjunction
with the secretary of administration and finance, shall design and implement a
bidding process for the competitive procurement of electric generation on
behalf of any agency, executive office, department, board, commission, bureau,
division or authority of the commonwealth procuring electricity from a local
distribution company via basic service under section 1B of chapter 164. Any such competitive bid received shall
include payment options with rates that remain uniform for a minimum period of
1 year. In lieu of designing and implementing a competitive bidding process as
required by this section, the secretary may become a member of programs
organized and administered by the Health and Educational Facilities Authority
or its subsidiary organization for the purpose of such competitive group
purchasing of electricity.
Section 22. (a) As used in this section, the
following words shall have the following meanings, unless the context clearly
requires otherwise:
“Allowance”, an authorization to emit a fixed amount of carbon
dioxide.
“Cap and trade
program”, a policy approach for controlling emissions from a group of emitting
sources, such as electric generating stations, at a total cost that is expected
to be lower than if sources were regulated individually by setting an overall
cap or maximum amount of emissions from all regulated sources per compliance
period that will achieve the desired environmental effects; provided, however,
that a certain number of authorizations to emit in the form of emissions
allowances shall be created, issued and made available to persons, companies,
organizations or other entities through a sale by auction or direct allocation;
and provided further that the total number of allowances made available in a
compliance period shall not exceed the cap.
“Department”, department of environmental protection.
“RGGI” or
“Regional Greenhouse Gas Initiative”, the Memorandum of Understanding dated
(b) The
department, in consultation with the department of energy resources, shall
adopt rules and regulations establishing a carbon dioxide cap and trade program
to limit and reduce the total carbon dioxide emissions released by electric
generating stations that generate electric power. The rules and
regulations shall comply with RGGI and permit the holders of carbon dioxide
allowances to trade them in a regional market to be established through the
RGGI.
(c)(1) The
department shall provide, by regulation that all allowances issued under the
program shall be offered for sale by auction. The proceeds recovered from
the allowance auctions shall be deposited in the RGGI Auction Trust Fund
established in section 35II of chapter 10. The proceeds shall be used
without further appropriation for the following purposes only and shall be in a
proportion to be determined by the department of energy resources with the
approval of the secretary:
(i) to
reimburse a municipality in which the property tax receipts, including, for the
purposes of this clause, payments in lieu of taxes, are reduced as a result of
the mandates of RGGI or the regulation of carbon dioxide emissions from
electric generating stations; provided, however, that the amount of the payment
shall be the difference between the amount of the tax receipts in the current
tax year and the amount of the tax receipts in the year before implementation
of RGGI; provided further, that no reimbursement shall be made if, in a tax
year, the aggregate amount paid to a municipality by the owner of an electric
generating station including, but not limited to, payments in lieu of taxes and
property taxes, exceeds the aggregate amount paid to that municipality by that
owner in the year before implementation of RGGI; and provided further, that
payments from the fund shall be prioritized so that the first payments from the
fund shall be made to municipalities under this clause;
(ii) to fund the green communities program established in section 10 of chapter 25A;
(iii) to provide zero interest loans to municipalities, which are not green communities
under section 10 of chapter 25A for energy efficiency projects;
(iv) to promote energy efficiency, conservation and demand response; and
(v) to reimburse the commonwealth for costs associated with the
administration of the cap and trade program.
(2) Notwithstanding this section, the department
may set aside up to 1 per cent of the commonwealth’s annual allocation of
allowances to support the voluntary green power market which enables
electricity consumers to support the development of renewable resources.
(d) The
department of energy resources shall adopt regulations governing the auction of
allowances. The department of energy resources may hire an independent
contractor determined by the office to be qualified to conduct the auction in a
manner that ensures the efficiency of the auction, or may provide for
participation in a regional auction.
(e) The
responsibilities created by establishing a carbon dioxide cap and trade program
shall be in addition to any other responsibilities imposed by any other general
or special law or rule or regulation and shall not diminish or reduce any power
or authority of the department, including the authority to adopt standards and
regulations necessary for the commonwealth to join and fully participate in a
multistate program at any stage in the development and implementation of such a
program intended to control emissions of carbon dioxide or other substances
that are determined by the department to be damaging or altering the climate.
(f) Notwithstanding
any general or special law or rule or regulation to the contrary, the state
comptroller shall grant a permanent waiver or exemption from any applicable
charges or assessments made against the proceeds from the auction of allowances
under this section by the office of the comptroller under its authority under sections
5D of chapter 29.
(g) Notwithstanding
any general or special law or regulation to the contrary, any information
required by the department of energy resources or the department of any party
participating in the cap and trade program, with the exception of any emission,
offset and allowance tracking information required for compliance with the cap
and trade program, shall be maintained for the sole and confidential use of the
commonwealth, the department, the department of energy resources and their
agents. This information shall not be deemed to be a public record
as defined in clause Twenty-sixth of section 7 of chapter 4 and shall not be
subject to demand for production under section 10 of chapter 66. Aggregates
of such information may be prepared and such aggregates shall be public
records. All information collected under this section may be shared
with other states which afford such information similar protection from public
disclosure.
SECTION 8. Clause (ii) of
subsection (a) of section 3D of chapter 23A of the General Laws, as appearing
in the 2006 Official Edition, is hereby amended by striking out, in line 50,
the word “space.” and inserting in place thereof the following:- space;
(K) the area has been designated by the municipality as an area
with potential for the development of a Class I renewable energy generating
sources, as defined by section 11F of chapter 25A.
SECTION 9. Chapter 25 of the
General Laws is hereby amended by inserting after section 5D the following
section:-
Section 5E. The department may, from time to
time, audit all companies subject to its jurisdiction, except steam
distribution companies. Such audits may include, but shall not be
limited to, review of the following documents: (a) all financial statements,
the balance sheet, the income statement, the statement of cash flows, the
statement of retained earnings, the notes to the financial statements, and the
information in the annual return to the department; (b) all documents
concerning reconciling mechanisms related to rates, prices, charges, or costs
and savings related to a merger, acquisition or consolidation within 3 years
after the merger, acquisition or consolidation; and (c) documents concerning
service quality measure statistics and service quality performance at least
every 3 years or whenever service quality penalties equal to or exceed 50 per cent
of the maximum.
Upon written
complaint of the attorney general requesting an independent audit of a company
subject to the department’s jurisdiction, the department shall commence a
proceeding within 30 days of receipt of the complaint for the purpose of
ordering the requested audit in a reasonable time. The results of
any audit so ordered shall be filed promptly with the department and each audit
shall be paid for by the company that is the subject of the audit.
SECTION 10. Said chapter 25 is
hereby further amended by inserting after section 18 the following
section:-
Section 18A. The commission may make an
assessment against each steam distribution company under the jurisdictional
control of the department. Each steam distribution company shall annually
report by March 31 its intrastate operating revenues for the previous calendar
year to the department. The assessments shall be apportioned
according to each steam distribution company’s intrastate operating revenues,
to produce an annual amount not greater than $600,000, as shall be determined
and certified annually by the commission as sufficient to reimburse the
commonwealth for funds appropriated by the general court for the operation and
general administration of the department and for the cost of fringe benefits as
established by the commissioner of administration under section 5D of chapter
29, including group life and health insurance, retirement benefits, paid
vacations, holidays and sick leave.
Each company
shall pay the amount assessed against it within 30 days after receipt of the
notice of assessment from the department. Such assessments collected
by the department shall be credited to the General Fund. Any funds unexpended
in any fiscal year for the purposes for which such assessments were made shall
be credited against the assessment to be made in the following fiscal year and
the assessment in the following fiscal year shall be reduced by any such
unexpended amount.
SECTION 11. Said chapter 25 is
hereby further amended by striking out sections 19 and 20, as appearing in the
2006 Official Edition, and inserting in place thereof the following 4
sections:-
Section 19. (a) The department shall require
a mandatory charge of 2.5 mills per kilowatt-hour for all consumers, except
those served by a municipal lighting plant, to fund energy efficiency programs
including, but not limited to, demand side management programs. The
programs shall be administered by the electric distribution companies and by
municipal aggregators with energy plans certified by the department under
subsection (b) of section 134 of chapter 164. In addition to the
aforementioned mandatory charge, such programs shall also be funded, without
further appropriation, by: (1) amounts generated by the distribution companies
and municipal aggregators under the Forward Capacity Market program
administered by
(b) The
department may approve and fund gas energy efficiency programs proposed by gas
distribution companies including, but not limited to, demand side management
programs. Energy efficiency activities eligible for funding under
this section shall include combined heat and power and geothermal heating and
cooling projects. Funding may be supplemented by funds authorized by
section 21. The programs shall be administered by the gas
distribution companies. In authorizing such programs, the department
shall ensure that they are delivered in a cost-effective manner capturing all
available efficiency opportunities, minimizing administrative costs to the
fullest extent practicable and utilizing competitive procurement processes to
the fullest extent practicable.
(c) Electric
and gas energy efficiency program funds shall be allocated to customer classes,
including the low-income residential subclass, in proportion to their
contributions to those funds; provided, however, that at least 10 per cent of
the amount expended for electric energy efficiency programs and at least 20 per
cent of the amount expended for gas energy efficiency programs shall be spent
on comprehensive low-income residential demand side management and education
programs. The low-income residential demand side management and
education programs shall be implemented through the low-income weatherization
and fuel assistance program network and shall be coordinated with all electric
and gas distribution companies in the commonwealth with the objective of
standardizing implementation. Such programs shall be screened only
through cost-effectiveness testing which compares the value of program benefits
to program costs to ensure that a program is designed to obtain energy savings
and system benefits with value greater than the costs of the program.
Section 20. (a) The department shall require
a mandatory charge of 0.5 mill per kilowatt-hour for
all electricity consumers, except those served by a municipal lighting plant
which does not supply generation service outside its own service territory or
does not open its service territory to competition at the retail level, to
support the development and promotion of renewable energy projects. All
revenues generated by the mandatory charge shall be deposited into the
Massachusetts Renewable Energy Trust Fund, established under section 4E of
chapter 40J.
(b) Notwithstanding
any general or special law to the contrary: (1) a municipal lighting plant
which does not supply generation service outside its own service territory or
does not open its service territory to competition may elect to assess and
remit a mandatory charge per kilowatt-hour upon its electricity consumers on
the same terms and conditions as apply to the charge imposed on consumers
residing in competitive distribution service territories under this section;
provided, however, that such an election by a municipal lighting plant shall be
irrevocable and such a municipal lighting plant shall not be deemed to be
supplying generation service outside its service territory or opening its
service territory to competition at the retail level for the purposes of the
first sentence of subsection (a); and (2) in administering the Massachusetts
Renewable Energy Trust Fund, the Massachusetts Technology Park Corporation,
doing business as the Massachusetts Technology Collaborative, or the governing
board, as applicable, shall not make any grant or loan or provide any subsidy
from the trust fund to any municipal lighting plant or consumer residing in the
distribution service territory of such municipal lighting plant unless: (A) a
mandatory charge per kilowatt-hour is assessed against all consumers residing in
the distribution service territory and remitted to the collaborative under the
first sentence of subsection (a) or clause (1); or (B) the board of directors
of the collaborative, as a condition precedent to any such grant, loan or
subsidy, shall have determined and incorporated into the minutes of its
proceedings findings that: (i) any such grant, loan or subsidy is intended for
the principal purpose of generating public benefits for those consumers who
reside in distribution service territories in which the mandatory charge is so
imposed and remitted and will generate only incidental private benefits to the
recipient or others residing in a distribution service territory in which the
mandatory charge is not so imposed and remitted; and (ii) the facts and
circumstances associated with the recipient or the residence of the recipient
provide unique or extraordinary opportunities to advance the public purposes of
the trust fund over those opportunities available through grants or subsidies
made to recipients residing in distribution service territories in which such a
mandatory charge is assessed and remitted.
Section 21. (a) To mitigate capacity and
energy costs for all customers, the department shall ensure that, subject to
subsection (c) of section 19, electric and natural gas resource needs shall
first be met through all available energy efficiency and demand reduction
resources that are cost effective or less expensive than supply. The cost
of supply shall be determined by the department with consideration of the
average cost of generation to all customer classes over the previous 24 months.
(b)(1) Every
3 years, on or before April 30, the electric distribution companies and
municipal aggregators with certified efficiency plans shall jointly prepare an
electric efficiency investment plan and the natural gas distribution companies
shall jointly prepare a natural gas efficiency investment plan. Each
plan shall provide for the acquisition of all available energy efficiency and
demand reduction resources that are cost effective or less expensive than
supply and shall be prepared in coordination with the energy efficiency
advisory council established by section 22. Each plan shall provide
for the acquisition, with the lowest reasonable customer contribution, of all
of the cost effective energy efficiency and demand reduction resources that are
available from municipalities and other governmental bodies.
(2) A
plan shall include: (i) an assessment of the estimated lifetime cost,
reliability and magnitude of all available energy efficiency and demand
reduction resources that are cost effective or less expensive than supply; (ii)
the amount of demand resources, including efficiency, conservation, demand
response and load management, that are proposed to be acquired under the plan
and the basis for this determination; (iii) the estimated energy cost savings
that the acquisition of such resources will provide to electricity and natural
gas consumers, including, but not limited to, reductions in capacity and energy
costs and increases in rate stability and affordability for low-income
customers; (iv) a description of programs, which may include, but which shall
not be limited to: (A) efficiency and load management programs; (B) demand
response programs; (C) programs for research, development and commercialization
of products or processes which are more energy-efficient than those generally
available; (D) programs for development of markets for such products and
processes, including recommendations for new appliance and product efficiency
standards; (E) programs providing support for energy use assessment, real time
monitoring systems, engineering studies and services related to new
construction or major building renovation, including integration of such
assessments, systems, studies and services with building energy codes programs
and processes, or those regarding the development of high performance or
sustainable buildings that exceed code; (F) programs for the design,
manufacture, commercialization and purchase of energy-efficient appliances and
heating, air conditioning and lighting devices; (G) programs for planning and
evaluation; (H) programs providing commercial, industrial and institutional
customers with greater flexibility and control over demand side investments
funded by the programs at their facilities; and (I) programs for public
education regarding energy efficiency and demand management; provided,
however, that not more than 1 per cent of the fund shall be expended for items
(C) and (D) collectively, without authorization from the advisory council; (v)
a proposed mechanism which provides performance incentives to the companies
based on their success in meeting or exceeding the goals in the plan; (vi) the
budget that is needed to support the programs; (vii) a fully reconciling
funding mechanism which may include, but which shall not be limited to, the
charge authorized by section 19; (viii) the estimated amount of reduction in
peak load that will be reduced from each option and any estimated economic
benefits for such projects, including job retention, job growth or economic
development; and (ix) data showing the percentage of all monies collected that
will be used for direct consumer benefit, such as incentives and technical
assistance to carry the plan. With the approval of the council, the
plan may also include a mechanism to prioritize projects that have substantial
benefits in reducing peak load, reducing the energy consumption or costs of
municipalities or other governmental bodies, or that have economic development,
job creation or job retention benefits.
(3) A
program included in the plan shall be screened through cost-effectiveness
testing which compares the value of program benefits to the program costs to
ensure that the program is designed to obtain energy savings and system
benefits with value greater than the costs of the program. Program cost
effectiveness shall be reviewed periodically by the department and by the energy
efficiency advisory council. If a program fails the
cost-effectiveness test as part of the review process, it shall either be
modified to meet the test or shall be terminated.
(c) Each
plan prepared under subsection (b) shall be submitted for approval and comment
by the energy efficiency advisory council every 3 years on or before April
30. The electric and natural gas distribution companies and
municipal aggregators shall provide any additional information requested by the
council that is relevant to the consideration of the plan. The
council shall review the plan and any additional information and shall submit
its approval or comments to the electric and natural gas distribution companies
and municipal aggregators not later than 3 months after submission of the
plan. The electric and natural gas distribution companies and municipal
aggregators may make any changes or revisions to reflect the input of the
council.
(d)(1) The
electric and natural gas distribution companies and municipal aggregators shall
submit their respective plans, together with the council’s approval or comments
and a statement of any unresolved issues, to the department every 3 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.
(2) Not
later than 90 days after submission of a plan, the department shall issue a
decision on the plan which ensures that the electric and natural gas
distribution companies have identified and shall capture all energy efficiency
and demand reduction resources that are cost effective or less expensive than
supply and shall approve, modify and approve, or reject and require the resubmission
of the plan accordingly. The department shall approve a fully
reconciling funding mechanism for the approved plan and, in the case of municipal
aggregators, a fully reconciling funding mechanism that requires coordination
between the distribution company and municipal
aggregator to ensure that program costs are collected, allocated and
distributed in a cost effective, fair and equitable manner. The
department shall determine the effectiveness of the plan on an annual basis.
(3) Each
electric and natural gas plan shall be in effect for 3 years.
(e) If
an electric or natural gas distribution company or municipal aggregator has not
reasonably complied with the plan, the department may open an
investigation. In any such investigation, the utility company or
aggregator shall have the burden of proof to show whether it had good cause for
failing to reasonably comply with the plan. If the utility company
or aggregator does not meet its burden, the department may levy a fine of not
more than the product of $0.05 per kilowatt-hour or $1 per therm times the
shortfall of kilowatt-hours saved or therms saved, as applicable, depending
upon the facts and circumstances and degree of fault, which shall be paid to
the Massachusetts Technology Park Corporation within 60 days after the end of
the year in which the department levies the fine. The fine shall not
impact ratepayers. The department of energy resources shall oversee the use of
the funds held by the Massachusetts Technology Park Corporation under this
subsection so as to maximize the amount of energy efficiency achieved.
Section 22. (a) The department shall appoint
and convene an energy efficiency advisory council which shall consist of 11
members, including 1 person representing each of the following:
(1) residential consumers, (2) the low-income weatherization and fuel
assistance program network, (3) the environmental community, (4) businesses, including
large C&I end-users, (5) the manufacturing industry, (6) energy efficiency
experts, (7) organized labor, (8) the department of environmental
protection, (9) the attorney general, (10) the executive office of housing and
economic development, and (11) the department of energy resources. Interested
parties shall apply to the department for designation as members. Members
shall serve for terms of 5 years and may be reappointed. The
commissioner of energy resources shall serve as chair of the council. A
member who is a representative of energy efficiency experts shall not have a
contractual relationship with an electric or natural gas distribution company
doing business in the commonwealth or any affiliate of such company, or any
municipal aggregator. There shall be 1 non-voting, ex-officio member
from each of the electric and natural gas distribution companies, 1 from each
of the approved municipal aggregators, 1 from the heating oil industry and 1
from energy efficiency businesses.
(b) The
council shall, as part of the approval process by the department, seek to
maximize net economic benefits through energy efficiency and load management
resources and to achieve energy, capacity, climate and environmental goals
through a sustained and integrated statewide energy efficiency
effort. The council shall review and approve demand resource program
plans and budgets, work with program administrators in preparing energy
resource assessments, determine the economic, system reliability, climate and
air quality benefits of efficiency and load management resources, conduct and
recommend relevant research, and recommend long term efficiency and load
management goals to maximize economic savings and achieve environmental
goals. Approval of efficiency and demand resource plans and budgets
shall require a two-thirds majority vote. The council shall, as part
of its review of plans, examine opportunities to offer joint programs providing
similar efficiency measures that save more than 1 fuel resource or to coordinate
programs targeted at saving more than one fuel resource. Any costs
for joint programs shall be allocated equitably among the efficiency programs.
(c) The
council may retain expert consultants; provided, however, that such consultants
shall not have any contractual relationship with an electric or natural gas
distribution company doing business in the commonwealth or any affiliate of
such company.
The council
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 natural
gas and electric efficiency funding authorized under section 19; provided,
however, that such allocation shall not exceed 1 per cent of such funding on an
annual basis. The consultants used under this section shall be
experts in energy efficiency and shall be independent.
(d) The
electric and natural gas distribution companies and municipal aggregators shall
provide quarterly reports to the council on the implementation of their
respective plans. The reports shall include a description of the
program administrator’s progress in implementing the plan, a summary of the
savings secured to date and such other information as the council shall determine. The
council 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, expenditures,
cost-effectiveness and savings and other benefits during the previous year.
SECTION 12. Chapter 25A of
the General Laws, as so appearing, is hereby amended by striking out sections 1
to 3, inclusive, as amended by section 28 of chapter 19 of the acts of 2007,
and inserting in place thereof the following 3 sections:-
Section 1. There shall be within the
executive office of energy and environmental affairs a department called the
department of energy resources, under the supervision of a commissioner of
energy resources, hereinafter the commissioner. The duties given to the commissioner in this chapter and in any other
general or special law shall be exercised and discharged subject to the
direction, control and supervision of the secretary of energy and environmental
affairs. The commissioner shall be appointed by the secretary of energy and
environmental affairs, with the approval of the governor, and may, with like
approval, be removed. The commissioner shall be a person of skill and
experience in the field of energy regulation or policy and shall serve a term
coterminous with that of the governor. The position of commissioner shall be
classified in accordance with section 45 of chapter 30 and the salary shall be
determined in accordance with section 46C of said chapter 30. The commissioner
shall devote full time during business hours to the duties of the office. In the case of an absence or vacancy in the
office of the commissioner, or in the case of disability as determined by the
secretary, the secretary may designate an acting commissioner to serve as
commissioner until the vacancy is filled or the absence or disability ceases.
The acting commissioner shall have all the powers and duties of the
commissioner and shall have similar qualifications as the commissioner.
Section 2. The commissioner shall be the
executive and administrative head of the department of energy resources and
shall be responsible for administering and enforcing the provisions of law
relative to the division and to each administrative unit thereof.
There shall be
within the department 3 divisions: (i) a division of energy efficiency, which
shall work with the department of public utilities regarding energy efficiency
programs; (ii) a division of renewable and alternative energy development,
which shall oversee and coordinate activities that seek to maximize the
installation of renewable and alternative energy generating sources that will
provide benefits to ratepayers, advance the production and use of biofuels and
other alternative fuels as the division may define by regulation, and
administer the renewable portfolio standard and the alternative portfolio standard;
and (iii) a division of green communities, which shall serve as the principal
point of contact for municipalities and other governmental bodies concerning
all matters under the jurisdiction of the department of energy resources. Each division shall be headed by a director
who shall be appointed by the commissioner and who shall be a person of skill
and experience in the field of energy efficiency, renewable energy or
alternative energy, and energy regulation or policy, respectively. The directors shall be the executive and
administrative heads of their respective divisions and shall be responsible for
administering and enforcing the law relative to such division and to each
administrative unit thereof under the supervision, direction and control of the
commissioner. The directors shall serve
at the pleasure of the commissioner, shall receive such salary as may be
determined by law and shall devote full time during business hours to the
duties of the office. In the case of an
absence or vacancy in the office of the director, or in the case of disability
as determined by the commissioner, the commissioner may designate an active
director to serve as director until the vacancy is filled or the absence or
disability ceases. The acting director
shall have all the powers and duties of the director and shall have similar
qualifications as the director.
The
commissioner may, from time to time, subject to appropriation, establish within
the department such administrative units as may be necessary for the efficient
and economical administration of the department and, when necessary for such
purpose, may abolish any such administrative unit, or may merge any 2 or more
of them, as the commissioner deems advisable. The commissioner shall prepare
and keep current a statement of the organization of the department, of the
assignment of its functions to its various administrative units, offices and
employees, and of the places at which and the methods whereby the public may
receive information or make requests. Such statement shall be known as the
department’s description of organization. A current copy of the description of
organization shall be kept on file in the office of the secretary of state and
in the office of the secretary of administration.
Section 3. For the purposes of this chapter
the following words shall have the following meanings:-
“Alternative
energy development”, shall include but not be limited to solar energy, wood,
alcohol, hydroelectric, biomass energy systems, renewable non-depletable and recyclable
energy sources.
“Alternative
energy property”, any property powered in whole or in part by the sun, wind,
water, biomass, alcohol, wood, or any renewable, non-depletable or recyclable
fuel, and property related to the exploration, development, processing,
transportation and distribution of the aforementioned energy resources.
“Building authority”, the
“Commissioner”, the commissioner of energy resources.
“Department”, the department of energy resources.
“Eligible”,
able to meet all requirements for offerors or bidders set forth in section 11C
or 11I and section 44D of chapter 149 and not barred from bidding under section
44C of said chapter 149 or any other applicable law, and who shall certify that
he is able to furnish labor that can work in harmony with all other elements of
labor employed or to be employed on the work.
“End-user”, any
individual, corporation, firm or subsidiary of any firm that is an ultimate
consumer of petroleum products and which, as part of its normal business
practices, purchases or obtains petroleum products from a wholesaler or
reseller and receives delivery of that product.
“Energy
audit”, a determination of the energy consumption characteristics of a building
or facility which: (a) identifies the type, size and rate of energy consumption
of such building or facility and the major energy using systems of such
building or facility; (b) determines appropriate energy conservation
maintenance and operating procedures; and (c) indicates the need, if any, for
the acquisition and installation of energy conservation measures or alternative
energy property.
“Energy conservation”,
shall include but not be limited to the modification of or change in the
operation of real or personal property in a manner likely to improve the
efficiency of energy use, and shall include energy conservation measures and
any process to audit or identify and specify energy and cost savings.
“Energy
conservation measures”, measures involving modifications of maintenance and
operating procedures of a building or facility and installations therein, which
are designed to reduce energy consumption in such building or facility, or the
installation or modification of an installation in a building or facility which
is primarily intended to reduce energy consumption.
“Energy
conservation projects”, projects to promote energy conservation, including but
not limited to energy conserving modification to windows and doors; caulking
and weatherstripping; insulation, automatic energy control systems; hot water
systems; equipment required to operate variable steam, hydraulic and
ventilating systems; plant and distribution system modifications, including
replacement of burners, furnaces or boilers; devices for modifying fuel
openings; electrical or mechanical furnace ignition systems; utility plant
system conversions; replacement or modification of lighting fixtures; energy
recovery systems; on-site electrical generation equipment using new renewable
generating sources as defined in section 11F; and cogeneration systems.
“Energy
management services”, a program of services, including energy audits, energy
conservation measures, energy conservation projects or a combination thereof,
and building maintenance and financing services, primarily intended to reduce
the cost of energy and water in operating buildings, which may be paid for, in
whole or in part, by cost savings attributable to a reduction in energy and
water consumption which result from such services.
“Energy
savings”, a measured reduction in fuel, energy, operating or maintenance costs
resulting from the implementation of energy conservation measures or projects;
provided, however, that any payback analysis to evaluate the energy savings of
a geothermal energy system to provide heating, cooling or water heating over
its expected lifespan shall include gas and electric consumption savings,
maintenance savings and shall use an average escalation rate based on the most
recent information for gas and electric rates compiled by the Energy
Information Administration of the United States Department of Energy.
“Local
governmental body”, a city, town, district, regional school district or county,
or an agency or authority thereof, including a housing authority, board,
commission, department or instrumentality of a city, town district, regional
school district or county, and any other agency which is not a state agency or
building authority; or a combination of 2 or more such cities, towns,
districts, regional school districts or counties, or agencies or authorities
thereof.
“Marine or
hydrokinetic energy”, electrical energy from: (a) waves, tides and currents in
oceans, estuaries and tidal areas; (b) free-flowing water in rivers, lakes and
streams; (c) free-flowing water in man-made channels; or (d) differentials in
ocean temperature, called ocean thermal energy conversion.
“Minor
informalities”, minor deviations, insignificant mistakes and matters of form
rather than substance of the proposal or contract document which may be waived
or corrected without prejudice to other offerors, potential offerors or the
public agency.
“Non-renewable
energy supply and resource development”, shall include but not be limited to
gasoline, natural gas, coal, nuclear energy, offshore and onshore petroleum,
and facilities related to the exploration, development, processing,
transportation and distribution of such resources and programs established for
the allocation of supplies of such resources and the development of supply
shortage contingency plans.
“Person”, any natural person, business, partnership, corporation,
union, committee, club, or other organization, entity or group of individuals.
“Petroleum
products”, propane, gasoline, unleaded gasoline, kerosene, #2 heating oil,
diesel fuel, kerosene base jet fuel, and #4, 5, and 6 residual oil for utility
and non-utility uses, and all petroleum derivatives, whether in bond or not,
which are commonly burned to produce heat, power, electricity or motion or
which are commonly processed to produce synthetic gas for burning.
“Qualified provider”, responsible
and eligible person able to meet all requirements set forth in section 11C or
11I, and not barred from bidding under section 44C of chapter 149 or any other
applicable law and experienced in the design, implementation and installation
of energy savings measures.
“Reseller”,
any person, corporation, firm or subsidiary of any firm that carries on the
trade or business of purchasing petroleum products and reselling them without
substantially changing their form or any wholesaler or retail seller of
electricity or natural gas.
“Responsible”,
demonstrably possessing the skill, ability and integrity necessary to
faithfully perform the work required by a particular contract, based upon a
determination of competent workmanship and financial soundness in accordance
with section 11C or 11I and section 44D of chapter 149.
“Responsive offeror”, a person who has submitted a proposal which
conforms in all respects to the requests for proposals.
“State agency”, any agency, authority, board, bureau, commission,
committee, council, department, division, institution, officer or other agency
of the commonwealth, including quasi-public agencies.
“Wholesaler”,
any person, corporation, firm or any part or subsidiary of any firm which
supplies, sells, transfers or otherwise furnishes
petroleum products to resellers or end-users.
SECTION 13. Section 5 of said
chapter 25A, as appearing in the 2006 Official Edition, is hereby amended by
striking out the first sentence and inserting in place thereof the following
sentence:- The commissioner shall file an annual report with the clerks of the
senate and the house of representatives, the joint committee on
telecommunications, utilities and energy and the senate and house committees on
ways and means: (a) listing the number of employees of the department of energy
resources, the salaries and titles of each employee, the source of funding for
the salaries of said employees and the projected date when federal funds for
such positions are expected to terminate; (b) listing and describing grant
programs of the department funded by the federal government, including the
amount of funding by grant; (c) listing and describing other programs of the
department, including the amount and source of funding by program; and (d)
describing the energy audit, energy conservation and alternative energy bond
programs by categories of projects, prospective grantees under each category,
if known, and amounts to be spent by category and grantee.
SECTION 14. Section 6 of said
chapter 25A, as so appearing, is hereby amended by striking out, in line 1, the
words “division of energy resources” and inserting in place thereof the
following word:- department.
SECTION 15. Said section 6 of
said chapter 25A, as so appearing, is hereby further amended by striking out,
in line 38, the words “telecommunications and energy” and inserting in place
thereof the following words:- public utilities.
SECTION 16. Section 7 of said
chapter 25A, as so appearing, is hereby amended by striking out, in lines 1, in
lines 21 and 22, and in line 29, the words “division of energy resources” and
inserting in place thereof, in each instance, the following word:- department.
SECTION 17. Said section 7 of
said chapter 25A, as so appearing, is hereby further amended by striking out,
in lines 8, 22, 30, 32, 39, 49 and 50
the word “division” each time it appears, and inserting in place thereof the
following word:- department.
SECTION 18. Said section 7 of
said chapter 25A, as so appearing, is hereby further amended by striking out,
in line 40, the words “telecommunications and energy” and inserting in place
thereof the following words:- public utilities.
SECTION 19. Section 8 of said
chapter 25A, as so appearing, is hereby amended by striking out, in line 12,
the words “division of energy resources” and inserting in place thereof the
following word:- department.
SECTION 20. Section 9 of said
chapter 25A, as so appearing, is hereby amended by striking out, in line 2, the
words “of energy resources”.
SECTION 21. Said section 9 of
said chapter 25A, as so appearing, is hereby amended by striking out, in lines
9 and 10, the words “division of energy resources” and inserting in place
thereof the following word:- department.
SECTION 22. Said chapter 25A
is hereby amended by striking out section 10, as so appearing, and inserting in
place thereof the following 2 sections:-
Section 10. (a) The division of green
communities shall assist the commonwealth’s municipalities and other local
governmental bodies to: reduce energy consumption and costs, reduce pollution,
facilitate the development of renewable and alternative energy resources, and
create local jobs related to the building of renewable and alternative energy
facilities and the installation of energy-efficient equipment. The
director of the division shall be responsible for the administration and
oversight of the green communities program and shall apply and disburse monies
and revenues as provided in this section.
(b) The
division shall establish a green communities program. The purpose of
the program shall be to provide technical and financial assistance, in the form
of grants and loans, to municipalities and other local governmental bodies that
qualify as green communities under this section. These loans and
grants shall be used to finance all or a portion of the costs of studying,
designing, constructing and implementing energy efficiency activities,
including but not limited to, energy conservation measures and projects;
procurement of energy management services; installation of energy management
systems; adoption of demand side reduction initiatives; and the adoption of
energy efficiency policies. They shall also be used to finance the
siting and construction of renewable and alternative energy projects on
municipally-owned land.
(c) To
qualify as a green community, a municipality or other local governmental body
shall: (1) file an application with the division in a form and manner to be
prescribed by the division; (2) provide for the as-of-right siting of renewable
or alternative energy generating facilities, renewable or alternative energy
research and development facilities, or renewable or alternative energy
manufacturing facilities in designated locations; (3) adopt an expedited
application and permitting process under which these energy facilities may be
sited within the municipality and which shall not exceed 1 year from the date
of initial application to the date of final approval; (4) establish an
energy use baseline inventory for municipal buildings, vehicles and street and
traffic lighting, and put in place a comprehensive program designed to reduce
this baseline by 20 per cent within 5 years of initial participation in the
program; (5) purchase only fuel-efficient vehicles for municipal use whenever
such vehicles are commercially available and practicable; and (6) require all
new residential construction over 3,000 square feet and all new commercial and
industrial real estate construction to minimize, to the extent feasible, the
life-cycle cost of the facility by utilizing energy efficiency, water
conservation and other renewable or alternative energy
technologies. The secretary may waive these
requirements based on a written finding that due to unusual circumstances, a
municipality cannot reasonably meet all of the requirements and the
municipality has committed to alternative measures that advance the
purposes of the green communities program as effectively as adherence to the
requirements.
(d) Funding
for the green communities program in any single fiscal year shall be available,
without the need for further appropriation, in a total amount of not more than
$10 million from: (1) monies generated by all cap and trade
pollution control programs, including, but not limited to, the cap and trade
program established under the NOx Allowance Trading Program and the carbon
dioxide allowance trading mechanism established under the Regional Greenhouse
Gas Initiative, as defined in subsection (a) of section 22 of chapter 164; (2)
such amounts as may be directed to municipalities or other governmental bodies
under section 19 of chapter 25; (3) amounts from alternative compliance
payments established and administered under 225 CMR 14.00 adopted under
section 11F; and (4) other funds as the governing board of the Massachusetts
Renewable Energy Trust Fund established under section 4E of chapter 40J, may
provide.
(e) The
division shall adopt rules, regulations and guidelines for the administration
and enforcement of this section, including, but not limited to, establishing
applicant criteria, funding priority, application forms and procedures, and
energy efficiency product requirements. The division shall also
adopt regulations providing for a separate green communities program for those
communities served by municipal lighting plants that have chosen to adopt the
renewable energy charge under section 20 of chapter 25.
(f) The
division shall annually, not later than April 1, submit a report to the clerks
of the senate and the house of representatives, the joint committee on
telecommunications, utilities and energy, the joint committee on state
administration and regulatory oversight, and the senate and house committees on
ways and means detailing the expenditures and results relative to the green
communities program.
Section 10A. The division shall design and
implement a competitive bidding procedure for the procurement of electric
generation from renewable and alternative generating facilities on behalf of
municipalities certified as green communities under section 10. Any
competitive bids received shall include payment options with rates that remain
uniform for a minimum of 5 years. In lieu of designing and implementing a
competitive bidding process as required by this section, the director may
become a member of programs organized and administered by the Health and
Educational Facilities Authority or its subsidiary organization for the purpose
of such competitive group purchasing of electricity.
SECTION 23. Said chapter 25A
is hereby further amended by striking out section 11C, as so appearing, and
inserting in place thereof the following section:-
Section 11C. (a)
A state agency or building authority may, in the manner provided by this
section, contract for the procurement of energy management services. Such
contracts may include terms of not more than 20 years. The state
agency or building authority shall solicit competitive sealed proposals through
a request for proposals. At least 1 week prior to soliciting
proposals for a contract under this section, the agency or authority shall
notify the commissioner in writing, in such form and including such information
as the commissioner shall prescribe by regulation, of the intent to solicit
proposals. Such notification shall, at a minimum, include a complete
copy of the request for proposals. An acknowledgment of receipt, in such form
and including such information as the commissioner shall prescribe by
regulation, shall be issued to the state agency or building authority upon
successful compliance with the requirements of this paragraph.
Requests for
proposals for an energy management services contract to be entered into on
behalf of a state agency or a building authority, except a quasi-public agency,
shall be developed jointly by the division of capital asset management and maintenance
and the using agency. Such proposals shall only be solicited by the
division of capital asset management and maintenance after the commissioner of
the division has given prior written approval, and no contract for energy
management services shall be valid unless approved and signed by that
commissioner. A quasi-public agency may develop a request for
proposal and enter into a contract for energy management services
independently. The commissioner of capital asset management and
maintenance may delegate to state agencies and building authorities the
authority to enter into such contracts with an estimated construction cost of
less than $1 million. The delegation shall be in writing from the
commissioner to the using agency or building authority.
The request
for proposals published by a state agency or building authority shall include:
(1) the time and date for receipt of proposals and the address of the office to
which the proposals shall be delivered; (2) a description of the services to be
procured, including specific requirements and all evaluation criteria that will
be utilized by the state agency or building authority; and (3) proposed
contract terms and conditions and an identification of such terms and
conditions which shall be deemed mandatory and non-negotiable. The
request for proposals may incorporate documents by reference, provided that the
request for proposals specifies where prospective offerors may obtain the
documents. The state agency or building authority shall make copies
of the request for proposals available to all persons on an equal
basis. Public notice of the request for proposals shall conform to
the procedures set forth in subsection (1) of section 44J of chapter
149. Proposals shall be opened publicly, in the presence of 2 or
more witnesses, at the time specified in the request for proposals, and shall
be available for public inspection.
Sections 44A,
44B and 44E through 44H, inclusive, of chapter 149 shall not apply to contracts
procured under this section. Section 44D of chapter 149 shall apply
as appropriate to proposals submitted for contracts under this section, and
every such proposal shall be accompanied by: (1) a copy of a certificate of
eligibility issued by the commissioner of the division of capital asset management
and maintenance; and (2) an update statement. The offeror’s qualifications shall be evaluated by the division
of capital asset management and maintenance in a manner designated by the
commissioner of that division. If the state agency or building authority
determines that any offeror is not responsible or eligible, the agency or
authority shall reject the offeror, and shall give written notice of such
action to the division of capital asset management and maintenance.
State agencies
and building authorities shall award contracts under this section to the lowest
offeror demonstrably possessing the skill, ability and integrity necessary to
perform faithfully energy management services.
Payments under
a contract for energy management services may be based in whole or in part on
any cost savings attributable to a reduction in energy and water consumption
due to the contractor's performance or revenues gained due to the contractor's
services which are aimed at energy and water cost savings.
(b) A
local governmental body may, in the manner provided in this subsection,
contract for the procurement of energy management services. Unless no other manner of description
suffices, and the local governmental body so determines in writing, setting
forth the basis for the determination, all requirements shall be written in a
manner which describes the requirements to be met without having the effect of
exclusively requiring a proprietary supply or service, or a procurement from a
sole source.
Subject to a
local governmental body's authority to reject, in whole or in part, any and all
proposals, as provided in this section, a local governmental body shall
unconditionally accept a proposal without alteration or correction, except as
provided in this paragraph. An offeror
may correct, modify or withdraw a proposal by written notice received in the
office designated in the request for proposals prior to the time and date set
for opening the proposals. After proposal opening, an offeror may
not change any provisions of the proposal in a manner prejudicial to the
interests of the local governmental body or fair competition. The
local governmental body shall waive minor informalities or allow the offeror to
correct them. If a mistake and the
intended meaning of the proposal are clearly evident on the face of the
proposal document, the local governmental body shall correct the mistake to
reflect the intended meaning and so notify the offeror in writing, and the
offeror may not withdraw the proposal. An offeror may withdraw a proposal if a mistake is clearly evident on the face of the
proposal but the intended meaning is not similarly evident.
The local
governmental body shall evaluate each proposal and award each contract based
solely on the criteria set forth in the request for proposals. Such criteria shall include, but not be
limited to, all standards by which the local governmental body shall evaluate
responsiveness, responsibility, qualifications of the offeror, technical merit
and cost to the local governmental body. The request for proposals shall specify the method for comparing
proposals to determine the proposal offering the lowest overall cost to the
local governmental body, taking into consideration comprehensiveness of
services, energy or water cost savings, costs to be paid by the local
governmental body, and revenues to be paid to the local governmental body. If
the local governmental body awards the contract to an offeror who did not
submit the proposal offering the lowest overall cost, the governmental body shall
explain the reason for the award in writing.
The
evaluations shall specify revisions, if needed, to each proposal which should
be obtained by negotiation before the contract shall be awarded to the offeror
of the proposal. The local governmental body may condition an award
on successful negotiation of the revisions specified in the evaluation and
shall explain in writing the reasons for omitting any such revision from a plan
incorporated by reference in the contract.
(c) The state agency, building authority or local governmental body may cancel a request for proposals or may reject in whole or in part any and
all proposals when the state agency, building authority or local governmental
body determines that cancellation or rejection serves the best interests of the
state agency, building authority or local governmental body. The state agency,
building authority or local governmental body shall state in writing the reason
for a cancellation or rejection. The state agency, building
authority or local governmental body shall promptly publish in the central
register notice of the offeror awarded the contract. The state
agency, building authority or local governmental body shall, within 30 days,
file a copy of the contract with the commissioner.
The commissioner,
in consultation with the commissioner of capital asset management and
maintenance, shall adopt regulations for the procurement of energy management
services under this section for local government bodies. The commissioner of capital asset management
and maintenance shall adopt regulations for services to be procured for state
agencies and building authorities, and shall adopt regulations, in consultation
with the director of housing and community development, for the operations of
housing authorities. Such regulations may limit the scope of services procured
and the duration of contracts, and shall include any requirements that the
commissioner or the commissioner of capital asset management and maintenance
deems necessary to promote prudent management of such contracts at the
appropriate facilities. Such regulations shall require the
submission, at least annually, of such information as the commissioner or the
commissioner of capital asset management and maintenance may deem necessary to
monitor the costs and benefits of contracts for energy management services.
(d) The
commissioner shall enforce the requirements of this section and regulations
adopted hereunder as they relate to local governmental bodies and shall have
all the necessary powers to require compliance. The commissioner of
capital asset management and maintenance shall enforce all such regulations as
they relate to state agencies and building authorities, except quasi-public
agencies. An order of the commissioner under this subsection shall
be effective and may be enforced according to its terms, and enforcement
thereof shall not be suspended or stayed by the entry of an appeal therefrom. The superior court for
SECTION 24. Section 11D of
said chapter 25A, as so appearing, is hereby amended by striking out, in lines
25, 39, 44 and 45, 52, 56, 60 and 62, the word “division” and inserting in
place thereof, in each instance, the following word:- department.
SECTION 25. Said section 11D
of said chapter 25A, as so appearing, is hereby further amended by striking
out, in lines 30, 39 and 47, the words “telecommunications and energy” and
inserting in place thereof the following words:- public utilities.
SECTION 26. Said section 11D
of said chapter 25A, as so appearing, is hereby further amended by inserting
after the word “department”, in lines 34 and 51, the following words:- of
public utilities.
SECTION 27. Said section 11D
of said chapter 25A, as so appearing, is hereby further amended by striking
out, in line 56, the words “government regulations”, and inserting in place
thereof the following words:- telecommunications, utilities and energy.
SECTION 28. Section 11E of
said chapter 25A, as so appearing, is hereby amended by striking out, in line
1, the words “division of energy resources” and inserting in place thereof the
following word:- department.
SECTION 29. Said section 11E
of said chapter 25A, as so appearing, is hereby further amended by striking
out, in lines 3 and 4, and in lines 7, 9, 13, 16, 20, 23 and 45, the word
“division” and inserting in place thereof, in each instance, the following
word:- department.
SECTION 30. Said section 11E
of said chapter 25A, as so appearing, is hereby further amended by striking
out, in lines 7, 10 and 43, the words “telecommunications and energy” and
inserting in place thereof, in each instance, the following words:- public
utilities.
SECTION 31. Said section 11E
of said chapter 25A, as so appearing, is hereby further amended by striking
out, in line 46, the words “committees on government regulations and energy,
respectively,” and inserting in place thereof the following words:- committee
on telecommunications, utilities and energy.
SECTION 32. Said chapter 25A
is hereby further amended by striking out section 11F, as so appearing, and
inserting in place thereof the following 2 sections:-
Section 11F. (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
(b) For
the purposes of this subsection, a renewable energy generating source is one
which generates electricity using any of the following: (1) solar photovoltaic
or solar thermal electric energy; (2) wind energy; (3) ocean thermal, wave or
tidal energy; (4) fuel cells utilizing renewable fuels; (5) landfill gas; (6)
waste-to-energy which is a component of conventional municipal solid waste
plant technology in commercial use; (7) naturally flowing water and hydroelectric;
(8) low emission advanced biomass power conversion technologies using fuels
such as wood, by-products or waste from agricultural crops, food or
animals, energy crops, biogas, liquid biofuel including but not limited to
biodiesel, organic refuse-derived fuel, or algae; or (9) geothermal energy;
provided, however, that the calculation of a percentage of kilowatt-hours sales
to end-use customers in the commonwealth from new renewable generating sources
shall exclude clauses (6) and (7). The department may also consider any
previously operational biomass facility retrofitted with advanced conversion
technologies as a renewable energy generating source. A renewable energy
generating source may be located behind the customer meter within the
(c) New
renewable energy generating sources meeting the requirements of this subsection
shall be known as Class I renewable energy generating sources. For the purposes
of this subsection, a Class I renewable energy generating source is one that
began commercial operation after December 31, 1997, or represents the net
increase from incremental new generating capacity after December 31, 1997 at an
existing facility, where the facility generates electricity using any of the
following: (1) solar photovoltaic or solar thermal electric energy; (2)
wind energy; (3) ocean thermal, wave or tidal energy; (4) fuel cells utilizing
renewable fuels; (5) landfill gas; (6) energy generated by new hydroelectric
facilities, or incremental new energy from increased capacity or efficiency
improvements at existing hydroelectric facilities; provided, however, that (i)
each such new facility or increased capacity or efficiency at each such
existing facility must meet appropriate and site-specific standards that address
adequate and healthy river flows, water quality standards, fish passage and
protection measures and mitigation and enhancement opportunities in the
impacted watershed as determined by the department in consultation with
relevant state and federal agencies having oversight and jurisdiction over
hydropower facilities; (ii) only energy from new facilities having a capacity
up to 25 megawatts or attributable to improvements that incrementally increase
capacity or efficiency by up to 25 megawatts at an existing hydroelectric
facility shall qualify; and (iii) no such facility shall involve pumped storage
of water or construction of any new dam or water diversion structure
constructed later than January 1, 1998; (7) low emission advanced biomass power
conversion technologies using fuels such as wood, by-products or waste from
agricultural crops, food or animals, energy crops, biogas, liquid biofuel
including but not limited to biodiesel, organic refuse-derived fuel, or
algae; (8) marine or hydrokinetic energy as defined in section 3; or (9)
geothermal energy. A Class I renewable generating source may be located
behind the customer meter within the
(d) Every
retail electric supplier providing service under contracts executed or extended
on or after
(e) Every
retail supplier shall annually provide to end-use customers in the commonwealth
generation attributes from Class II energy facilities in an amount approved by
the department; provided, however, that the department shall specify that a
certain percentage of these requirements shall be met through energy generated
from a specific technology or fuel type in subsection (d). Such minimum
percentage requirement for kilowatt-hour sales from Class II energy generating
sources may be adjusted by the department as necessary to promote the continued
operation of existing energy generating resources that meet the requirements of
said subsection (d), and may be met through kilowatt-hour sales to end-use
customers from any energy generating source meeting the requirements of said
subsection (d).
(f) After
conducting administrative proceedings, the department may add technologies or
technology categories to any list; provided, however, that the following
technologies shall not be considered renewable energy supplies: coal, oil,
natural gas and nuclear power. The department shall establish and maintain
regulations allowing for a retail supplier to discharge its obligations under
this section by making an alternative compliance payment in an amount
established by the department for Class I and Class II renewable energy
generating sources. The department shall establish and maintain
regulations outlining procedures by which each retail supplier shall annually
submit for the department’s review a filing illustrating the retail supplier’s
compliance with the requirements of this section.
(g) In
satisfying its annual obligations under subsection (a), each retail supplier
shall provide a portion of the required minimum percentage of kilowatt-hours sales
from new on-site renewable energy generating sources located in the
commonwealth and having a power production capacity of not more than 2
megawatts which began commercial operation after
(h) The
department shall adopt regulations allowing for a retail supplier to discharge
its obligations under subsection (g) by making an alternative compliance
payment in an amount established by the department; provided, however, that the
department shall set on-site generation alternative compliance payment rates at
levels that shall stimulate the development of new on-site renewable energy
generating sources.
(i) A
municipal lighting plant shall be exempt from the obligations under this
section so long as and insofar as it is exempt from the requirements to allow
competitive choice of generation supply under section 47A of chapter 164.
Section 11F1/2. (a) The department shall
establish an alternative energy portfolio standard for all retail electricity
suppliers selling electricity to end-use customers in the commonwealth. Every
retail electric supplier providing service under contracts executed or extended
on or after
(b) The
department, in consultation with the department of environmental protection,
shall set: (1) emission performance standards, including standards for carbon
dioxide emissions, permanent sequestration definitions and standards, and fuel
conversion efficiency standards for all technologies included in this section
such that in the case of gasification, the total overall fuel conversion
efficiency from feedstock to final combustible fuel shall not be less than 70
per cent, consistent with the commonwealth’s environmental goals, including,
but not limited to, the reduction of greenhouse gas emissions; and (2) a net
carbon dioxide emissions rate not to exceed the average emissions rate of
existing natural gas plants in the commonwealth, which shall include all
emissions related to combustion, gasification, fuel processing and
sequestration, whether or not such activities occur at the alternative
generating source or at another location, and in the case of combined heat and
power shall also include thermal delivery. At least once every 2 years
the department shall review and update all standards for new alternative energy
generating sources to strengthen them, as appropriate, as technology
improvements occur.
(c) The
department shall adopt regulations allowing for a retail supplier to discharge
its obligations under this section by making an alternative compliance payment
in an amount established by the department. Such regulations shall
outline procedures by which each retail supplier shall annually submit for the
department’s review a filing illustrating the retail supplier’s compliance with
the requirements of this section.
(d) A
municipal lighting plant shall be exempt from the obligations under this
section so long as and insofar as it is exempt from the requirements to allow
competitive choice of generation supply under section 47A of chapter 164.
SECTION 33. Section 11G of
said chapter 25A, as so appearing, is hereby amended by striking out, in lines
1, 3 and 11, the word “division” and inserting in place thereof, in each
instance, the following word:- department.
SECTION 34. Said section 11G
of said chapter 25A, as so appearing, is hereby further amended by inserting
after the word “department”, in lines 13 and 14, the following words:- of
public utilities.
SECTION 35. Said section 11G
of said chapter 25A, as so appearing, is hereby further amended by striking out
the last 2 sentences and inserting in place thereof the following sentence:- The department shall adopt rules and regulations
necessary to implement this section.
SECTION 36. Section 11H of said
chapter 25A, as so appearing, is hereby amended by striking out, in lines 1, 6,
12 and 31, the word “division” and inserting in place thereof, in each
instance, the following word:- department.
SECTION 37. Said chapter 25A
is hereby amended by striking out section 11I and inserting in place thereof
the following section:-
Section 11I. (a) A state agency,
local governmental body or building authority may use this section in the
procurement of energy management services as an alternative to the procedures
in section 11C. Nothing in this section
shall preclude any such agency, body or authority from proceeding under section
11C.
(b) An agency, local
governmental body or building authority may enter into an energy management
services contract in order to achieve energy savings at facilities in
accordance with this section. All energy
savings measures under the contract shall comply with current local, state and
federal construction and environmental codes and regulations.
(c) Before entering
into an energy management services contract, a state agency, local governmental
body or building authority shall issue a request for qualifications. Public
notice of the request for qualifications shall conform to the procedures set
forth in subsection (1) of section 44J of chapter 149. At least 1 week before soliciting a request
for qualifications for an energy management services contract, an agency, body
or authority body shall notify the commissioner in writing, in a form and
including information as the commissioner of capital asset management and
maintenance shall prescribe by regulation, of the entity’s intent to solicit
qualifications. The notification, at a
minimum, shall include a copy of the request for qualifications. An acknowledgment of receipt, in a form and
including information as the commissioner of capital asset management and
maintenance shall prescribe by regulation, shall be issued by the commissioner
to the agency, body or authority upon compliance with the requirements of this
subsection.
The request for qualifications
published by a state agency, local governmental body or building authority
shall include the following: (1) the name and address of the agency, body or
authority; (2) The name, address, title and phone number of a contact person;
(3) the date, time and place where qualifications shall be received; (4) a
description of the services to be procured, including a facility profile with a
detailed description of each building involved and accurate energy consumption
data for the most recent 2-year period, stated objectives for the program, a
list of building improvements to be considered or required and a statement as
to whether the proposed improvements will generate sufficient energy savings to
fund the full cost of the program; (5) the evaluation criteria for assessing
the qualifications; (6) a statement that the agency, body or authority may
cancel the request for qualifications, or may reject in whole or in part any
and all energy savings measures, when it determines that cancellation or
rejection serves the best interests of the public; and (7) any other
stipulations and clarifications the agency, body or authority may require,
which shall be clearly identified in the request for qualifications.
Qualifications shall be opened
publicly, in the presence of 2 or more witnesses, at the time specified in the
request for qualifications, and shall be available for public inspection. The
provisions of sections 44A, 44B and 44E to 44H, inclusive, of chapter 149 shall
not apply to contracts procured under this section. Section 44D of said chapter 149 shall apply
as appropriate to qualifications submitted for contracts under this section,
and every such qualification shall be accompanied by (1) a copy of a
certificate of eligibility issued by the commissioner of capital asset
management and maintenance, and (2) by an update statement.
The state agency, local
governmental body or building authority shall evaluate the qualified providers
to determine which best meets the needs of the public agency by reviewing the
following:
(1) references of other energy savings contracts performed by the qualified providers;
(2) the certificate of eligibility and update statement provided by the qualified
providers;
(3) quality of the products proposed;
(4) methodology of determining energy savings;
(5) general reputation and performance capabilities of the qualified providers;
(6) substantial conformity with the specifications and other conditions set forth in the
request for qualifications;
(7) time specified in the qualifications for the performance of the contract; and
(8) any other factors the agency, body, or authority considers reasonable and
appropriate, which factors shall be made a matter of record.
Respondents shall be evaluated
only on the criteria set forth in the request for qualifications.
The state agency, local
governmental body or building authority shall conduct discussions with, and may
require public presentations by, each person who submitted qualifications in
response to the request for qualifications regarding his qualifications,
approach to the project and ability to furnish the required services. The
agency, body or authority shall select in order of preference 3 such persons,
unless fewer persons respond, it considers to be the most highly qualified to
perform the required services. The agency, body or authority may request,
accept and consider proposals for the compensation to be paid under the
contract only during competitive negotiations conducted under subsection (e).
(d) The state agency,
local governmental body or building authority may cancel a request for
qualifications, or may reject in whole or in part any and all proposals when it
determines that cancellation or rejection serves its best interests. The
agency, body or authority shall state in writing the reason for a cancellation
or rejection.
(e) The state agency,
local governmental body or building authority shall negotiate a contract with
the most qualified person at compensation which it determines is fair,
competitive and reasonable. If the agency, body or authority is unable to
negotiate a satisfactory contract with the person considered to be the most
qualified at a price the agency, body or authority determines to be fair,
competitive and reasonable, negotiations with that person shall be formally
terminated. The agency, body or authority shall then undertake negotiations
with the second most qualified person. Failing accord with the second most
qualified person, the agency, body or authority shall terminate those
negotiations and then undertake negotiations with the third most qualified
person. Should the agency, body or authority be unable to negotiate a
satisfactory contract with any of the selected persons, it may select
additional qualified providers who responded to the request for qualifications,
in the order of their competence and qualification, and continue negotiations
in accordance with this subsection until either an agreement is reached or the
agency, body or authority cancels the request for qualifications.
(f) The decision of the
state agency, local governmental body or building authority regarding the
selection of a qualified provider shall be final and not subject to appeal
except on the grounds of fraud or collusion.
(g) The state agency,
local governmental body or building authority shall provide public notice of
the meeting at which it proposes to award the energy management services
contract, of the name of the parties to the proposed contract and of the
purpose of the contract. The public notice shall be made at least 10 days
before the meeting. The agency, body or
authority shall promptly publish in the central register notice of the award
and shall notify the commissioner of the award and provide to him a copy of the
energy management services contract.
(h) The energy
management services contract shall include a written guarantee of the qualified
provider that either the amount of energy savings guaranteed shall be achieved
or the qualified provider shall reimburse the state agency, local governmental
body or building authority for the shortfall amount. Methods for measurement and verification of
energy savings shall conform to the most recent standards established by the
Federal Energy Management Program of the United States Department of
Energy.
(i) The commissioner,
in consultation with the commissioner of capital asset management and
maintenance, shall adopt regulations for the procurement of energy management
services under this section for local government bodies. The commissioner shall enforce the
requirements of this section and regulations adopted as they relate to local
governmental bodies and shall have all the necessary powers to require
compliance. The commissioner of capital asset management and maintenance shall
adopt regulations for services to be procured for state agencies and building
authorities. The commissioner of capital
asset management and maintenance shall enforce the regulations as they relate
to state agencies and building authorities. An order of the commissioner under
this subsection shall be effective and may be enforced according to its terms,
and enforcement shall not be suspended or stayed by the entry of an appeal. The
superior court for
(j) Payments under a
contract for energy management services may be based in whole or in part on any
cost savings attributable to a reduction in energy and water consumption due to
the contractor’s performance or revenues gained due to the contractor’s
services which are aimed at energy and water cost savings.
(k) Unless no other
manner of description suffices, and the state agency, local governmental body
or building authority so determines in writing, setting forth the basis for the
determination, all requirements shall be written in a manner which describes
the requirements to be met without having the effect of exclusively requiring a
proprietary supply or service, or a procurement from a sole source.
(l) Before entering
into a energy management services contract, the state agency, local
governmental body or building authority shall require the qualified provider to
file with the agency, body or authority a payment or a performance bond
relating to the installation of energy savings measures in an amount equal to
100 per cent of the estimated contract value from a surety company licensed to
do business in the commonwealth and whose name appears on United States
Treasury Department Circular 570.
(m) An
energy management services contract may extend beyond the fiscal year in which
it became effective.
SECTION 38. Section 12 of said
chapter 25A, as so appearing, is hereby amended by striking out, in line 15,
the word “energy” and inserting in place thereof the following words:- telecommunications, utilities and energy.
SECTION 39. Said section 12 of
said chapter 25A, as so appearing, is hereby further amended by striking out,
in line 21, the words “said chairmen” and inserting in place thereof the
following word:- committee.
SECTION 40. Section 13 of said
chapter 25A, as so appearing, is hereby amended by striking out, in line 2 and
in lines 16 and 17, the word “division” and inserting in place thereof, in each
instance, the following word:- department.
SECTION 41. Said section 13 of
said chapter 25A, as so appearing, is hereby further amended by striking out,
in line 16, the words “division of energy resources” and inserting in place
thereof the following word:- department.
SECTION 42. Said section 13 of
said chapter 25A, as so appearing, is hereby further amended by striking out,
in line 10, the word “Division”, and inserting in place thereof the following
word:- Department.
SECTION 43. Said section 13 of
said chapter 25A, as so appearing, is hereby further amended by striking out,
in line 15, the words “subject to” and inserting in place thereof the following
words:- without further.
SECTION 44. Said chapter 25A
is hereby further amended by adding the following 2 sections:-
Section 14. (a) A state agency, building
authority or local governmental body may contract for energy conservation
projects that have a total project cost of $100,000 or less, directly and
without further solicitation, with electric and gas utilities, their
subcontractors and other providers of such energy conservation projects authorized
under sections 19 and 21 of chapter 25 and section 11G.
(b) For
purposes of this section, "total project cost" shall mean all
construction costs of an energy conservation project, whether borne by the
utility, agency, authority or body including, without limitation, the costs
associated with equipment purchase and installation of such equipment.
Ancillary services provided at no cost by utilities, such as auditing and
design, shall not be considered part of project cost.
(c) A
state agency, building authority or local governmental body may pay for such
energy conservation projects through additions to their monthly utility bills.
(d) Sections
44A to 44M, inclusive, of chapter 149 and section 39M of chapter 30 shall not
apply to contracts entered into under this section.
Section 15. (a) For solar photovoltaic
projects with a total project cost that is less than $100,000, a state agency,
building authority or local governmental body may acquire photovoltaic panels
and associated equipment for onsite use of the energy generated by these panels
from contracts procured by the operational services division under section 22
of chapter 7 and sections 51 and 52 of chapter 30.
(b) For
purposes of this section, "total project cost" shall mean all
construction costs of a photovoltaic project, whether borne by the utility,
agency, authority or body or other sources, including, without limitation, the
costs associated with equipment purchase and installation of such equipment.
Ancillary services provided at no cost, such as auditing and design, shall not
be considered part of project cost.
(c) Sections
44A to 44M, inclusive, of chapter 149 and section 39M of chapter 30 shall not
apply to contracts entered into under this section.
SECTION 45. Section 2 of chapter 25B of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by striking out, in line 11, the words “of the division”
SECTION 46. Section 1 of
chapter 30B of the General Laws, as so appearing, is hereby amended by striking
out, in line 96, the words “telecommunications and energy” and inserting in
place thereof the following words:- public utilities.
SECTION 47. Said section 1 of
said chapter 30B of the General Laws, as so appearing, is hereby further
amended by striking out, in line 97, the word “division” and inserting in place
thereof the following word:- department.
SECTION 48. Section 3 of
chapter 40J of the General Laws, as so appearing, is hereby amended by
inserting after the word “designee”, in line 14, the following words:- , the
secretary of energy and environmental affairs or a designee,.
SECTION 49. Said chapter 40J
is hereby amended by striking out section 4E, as so appearing, and inserting in
place thereof the following section:-
Section 4E. (a)(1) There is hereby
established and set up on the books of the corporation a separate trust fund to
be known as the Massachusetts Renewable Energy Trust Fund, hereinafter referred
to as the fund. The corporation shall hold the fund in an account or accounts
separate from other funds. There shall be credited to the fund all amounts
collected under section 20 of chapter 25 and any income derived from the
investment of amounts credited to the fund. All amounts credited to the fund shall be held in trust and used solely
for activities and expenditures consistent with the public purpose of the fund
as set forth in subsection (b) of this section, including the ordinary and
necessary expenses of administration and operation associated with the
fund. Unless otherwise specified, all monies of the corporation,
from whatever source derived, shall be paid to the treasurer of the corporation. Said
monies shall be deposited in the first instance by the treasurer in national
banks, trust companies or banking companies in compliance with section 34 of
chapter 29. Funds in such accounts shall be paid out on the warrant
or other order of the treasurer of the corporation or other person as the board
may authorize to execute warrants.
(a)(2) A governing board of not less than 9 individuals with
an interest in matters relating to the general purpose of the fund shall assist
the corporation in matters related to the fund and in the implementation of
this section. The governing board shall include: the commissioner of
energy resources, who shall serve as chair; the secretary of energy and
environmental affairs or a designee, the secretary of housing and economic
development or a designee; the secretary of administration and finance or a
designee; 1 member of the board to be appointed by the chair of the board; and
4 members to be appointed by the governor, who shall have knowledge and
experience in the following areas: electricity distribution, generation, supply
or power marketing; the concerns of commercial and industrial ratepayers; the
concerns of residential ratepayers, including low-income ratepayers; economics,
financial or investment consulting relative to the fund; regional environmental
concerns; academic issues related to power generation, distribution or the
development or commercialization of renewable energy sources; institutions of
higher education; municipal or regional aggregation matters; and renewable and
alternative energy and energy efficiency issues. The members of the
governing board shall be deemed to be directors for the purposes of the fourth
paragraph of section 3. Each appointed member of the governing board
shall serve for a term of 3 years and thereafter until such member’s successor
is appointed, and shall be eligible for reappointment. A person
appointed to fill a vacancy on the governing board shall be appointed in a like
manner as the vacating member shall have been appointed and shall be eligible
for reappointment. A member of the governing board appointed by the governor
may be removed by the governor for cause. The members of the
governing board shall serve without compensation, but each member shall be
entitled to reimbursement for actual and necessary expenses incurred in the performance
of official duties. The governing board may meet as often as the
members shall decide; provided, however, that it shall meet at least
quarterly. The governing board may, by majority vote, delegate any
amount of its authority to an executive committee comprised of members of the
governing board, the board or the staff of the corporation. Any such delegation of authority may be
revoked at any time by majority vote of the governing board.
The governing board shall adopt and submit to the board for approval
detailed 5-year strategic plans and annual operational plans for the
application of the fund in support of the design, implementation, evaluation
and assessment of renewable energy programs for the commonwealth that ensure
that the fund shall be employed to provide financial and non-financial
resources to overcome barriers facing renewable energy enterprises,
institutions and projects in a prudent manner consistent with the public
purposes and interests set forth in this section. The strategic plan
shall include consideration of, and be consistent with, plans, regulations and
policies issued by the executive office of energy and environmental affairs
and, to the extent practicable, shall consist of at least 4 components: (i)
product and market development to establish a foundation for growth and
expansion of the commonwealth’s renewable energy enterprises, institutions and
projects, including pilot and demonstration projects, production incentives,
and other activities designed to increase the use and affordability of
renewable energy in the commonwealth; (ii) training and public information to
allow for the development and dissemination of complete, objective and timely
information, analysis and policy recommendations related to the advancement of
the public purposes and interests of the renewable energy fund; (iii)
investment to support the growth and expansion of renewable energy enterprises,
institutions and projects; and (iv) research and development within the
commonwealth and the New England region related to renewable energy
matters. The strategic plans and annual operational plans shall also
allocate a portion of the fund to the green communities program to provide
technical assistance to municipalities certified as green communities under
section 10 of chapter 25A. The strategic plans and annual
operational plans shall provide detailed budget and staffing levels and specify
the expenditure of such monies from the fund to each of these component
activities; provided, however, that monies so expended shall be used to develop
such renewable energy projects with priority given to projects, institutions,
and enterprises, first, within the commonwealth; next, to such activities
within New York and the New England region which serve the regional power grid;
and finally, all other such activities regardless of location. In
developing the strategic plans and yearly operational plans, the governing
board shall consult with and utilize the services of the department of public
utilities and the department of energy resources for such technical assistance
as the governing board deems necessary or appropriate to the effective
discharge of the governing board’s responsibilities and duties relative to the
fund.
The 5-year strategic plans and annual operational plans shall be deemed
approved unless they are rejected by a majority vote of the board within 60
days of the plan’s referral to the board. If the board rejects any
submitted plan, the board shall, within 10 days of such action, provide the
governing board with a written explanation of the denial, including any
proposed recommendations to the submitted plan. Upon approval by the
board of any plan, the board shall delegate authority to the governing board to
implement the plan. The delegated authority shall include, but not
be limited to, the approval and implementation of budget and staffing
projections set forth in the plan, the hiring of an executive director to
administer the fund at the direction of the governing board, and the hiring of
outside consultants or other professionals to assist in the implementation of
the plan. The governing board shall present any subsequent strategic
plans and annual operational plans, or substantial modifications of any
approved plan, to the board for approval. The board shall not be
liable for any claims arising out of or related to the implementation of any
approved plan, or any other decisions of the governing board relating to
administration of the fund.
(b) The board shall draw upon monies in the fund for the
public purpose of generating the maximum economic and environmental benefits
over time from renewable energy to the ratepayers of the commonwealth through a
series of initiatives which exploit the advantages of renewable energy in a
more competitive energy marketplace by promoting the increased availability,
use and affordability of renewable energy, by making operational improvements
to existing renewable energy projects and facilities which, in the
determination of the governing board, would yield more significant results in
the development of renewable energy if said funds were made available for the
creation of new renewable energy facilities, and by fostering the formation,
growth, expansion and retention within the commonwealth of preeminent clusters
of renewable energy and related enterprises, institutions and projects, which
serve the citizens of the commonwealth consistent with a strategic plan or
annual operational plan.
(c) Public interests to be advanced through the governing
board’s actions shall include, but not be limited to, the following: (i) the
development and increased use and affordability of renewable energy resources
in the commonwealth and the New England region; (ii) the protection of the
environment and the health of the citizens of the commonwealth through the prevention,
mitigation and alleviation of the adverse pollution effects associated with
certain electricity generation facilities; (iii) the maximization of benefits
to consumers of the commonwealth resulting from increased fuel and supply
diversity; (iv) the creation of additional employment opportunities in the
commonwealth through the development of renewable technologies; (v) the
stimulation of increased public and private sector investment in, and
competitive advantage for, renewable energy and related enterprises,
institutions and projects in the commonwealth and the New England region; and
(vi) the stimulation of entrepreneurial activities in these and related
enterprises, institutions and projects.
(d) In furtherance of any strategic and operational plans, and
other public purposes and interests, the board may expend monies from the fund
to make grants, contracts, loans, equity investments, energy production
credits, bill credits, or rebates to customers; to provide financial or debt
service obligation assistance; or to take any other actions, in such forms,
under such terms and conditions and under such selection procedures as the
board deems appropriate and otherwise in a manner consistent with good business
practices; provided, however, that the board shall generally employ a
preference for competitive procurements; provided further, that the board shall
endeavor to leverage the full range of the resources, expertise and
participation of other state and federal agencies and instrumentalities in the
design and implementation of programs under this section; and provided further,
that the board has determined and incorporated into the minutes of its
proceedings a finding that such actions are calculated to advance the public
purpose and public interests set forth in this section, including, but not
limited to, the following: (i) the growth of the renewable energy-provider
industry; (ii) the use of renewable energy by electricity customers in the
commonwealth; (iii) public education and training regarding renewable energy;
(iv) product and market development; (v) pilot and demonstration projects and
other activities designed to increase the use and affordability of renewable
energy resources by and for consumers in the commonwealth; (vi) the provision
of financing in support of the development and application of related
technologies at all levels, including, but not limited to, basic and applied
research and commercialization activities; (vii) the design and making of
improvements to existing renewable energy projects and facilities as defined
herein which were in operation as of
(e) Subject to the approval of the board, and not inconsistent
with any strategic or annual operational plans, investment activity of monies
from the fund may consist of the following: (i) an equity fund, to provide risk
capital to renewable energy enterprises, institutions and projects; (ii) a debt
fund, to provide loans to energy enterprises, institutions, projects,
intermediaries and end-users; and (iii) a market growth assistance fund, to be
used to attract private capital to the equity and debt funds. To
implement these investment activities, the corporation may retain, through a
bid process, public or private sector investment fund managers, who shall have
prior knowledge and experience in fund management and possess related skills in
renewable energy and related technologies development, to direct the investment
activity described in this section and to seek other fund co-sponsors to
contribute public and private capital from the commonwealth and other states;
provided, however, that such capital shall be appropriately
segregated. The managers, subject to the approval of the board, may
retain necessary services and consultants to carry out the purposes of the
fund. The managers shall develop a business plan to guide investment
decisions, which shall be approved by the board before any expenditures from the trust fund and which shall be consistent with the provisions of the
plan for the fund as adopted by the board.
(f) For the purposes of expenditures from the fund, renewable
energy technologies eligible for assistance shall mean technologies eligible as
Class I or Class II renewable energy generating sources under section 11F of
chapter 25A, micro-combined heat and power units less than 60 kilowatts, solar
hot water, geothermal heating and cooling projects, biomass thermal and storage
and conversion technologies connected to qualifying generation projects;
provided, however, that the board may make grants from the fund, not to exceed
a total of $4 million annually, in support of Massachusetts-based public and
private enterprises developing new technologies to significantly increase the efficiency
of the internal combustion engine. The board shall make grants,
loans or other support from the fund, not to exceed $3 million annually for
hydroelectric facilities, other than pumped storage facilities in the
commonwealth, constructed before
(g) The use by the corporation and governing board of monies
to implement this section shall be deemed to be an essential governmental
function. Notwithstanding any general or special law to the contrary, clause
(a) of section 4A shall apply to expenditures made from the fund; provided,
however, that no such expenditure shall be deemed to involve a capital facility
project; provided further, that no lease or license executed in furtherance of
the public purpose and interests of the fund shall exceed 30 years in duration,
and the duration and terms shall be developed in a manner consistent with good
business practices; and provided further, that the corporation or governing
board shall take no action which contravenes the commonwealth’s reversionary
interest in any of its real property. The corporation, any
purchasing cooperative established thereby and all members of any such
purchasing cooperative may participate in any energy-related purchasing,
aggregating or similar program established and operated by the Health and
Educational Facilities Authority and such participation shall be deemed to be
in furtherance of an essential governmental function.
(h) Clause (k) of section 4 shall not apply to disbursements
from the trust fund.
(j) The books and records of the corporation and governing
board relative to expenditures and investments of monies from the fund shall be
subject to a biennial audit by the auditor of the commonwealth.
(k) Not later than August 15th of each year, the board, in
conjunction with the governing board, shall annually submit to the governor,
the joint committee on telecommunications, utilities and energy, and the senate
and house committees on ways and means a report detailing the expenditure and
investment of monies from the fund over the previous fiscal year, the ability
of the fund to meet the requirements in this section, and any recommendations
for improving the ability of the governing board, the board, the corporation
and the fund to meet such requirements.
(l) Notwithstanding
any general or special law to the contrary, including without limitation any
laws related to the procurement of electricity, the board shall, upon the
written request of the governor, transfer moneys in the fund, in an amount not
exceeding $17 million in the aggregate, to the commonwealth for deposit in the
General Fund. As a condition subsequent to any such transfer, the
commonwealth, acting by and through the department of energy resources or a
successor agency, shall enter into an agreement with the corporation under
which the commonwealth, at the direction of the corporation, shall enter into
contracts, for terms not to exceed 20 years, with owners of facilities that
generate electricity using renewable energy technologies, wholesale power
marketers or other market intermediaries selling such electricity, for the
purchase by the commonwealth, for its own use or for the use of any municipal
electric department, public instrumentality or other governmental or
nongovernmental entity in the commonwealth, of electricity produced by
renewable energy technologies. The corporation shall determine the
particular types of technologies which shall be the subject of any such
contract based on such criteria as it shall deem advisable, including without
limitation retail consumer choices of such renewable energy
technologies. The aggregate dollar amount of the green power premium
associated with electricity purchases to be made by the commonwealth for its
own use under such contracts shall have a present value, determined according
to such discount rate as shall be mutually agreeable to the corporation and the
commonwealth, of such amount as shall be transferred under the first sentence
of this paragraph. The green power premium shall be determined by
subtracting from the total amount of the purchase price the undifferentiated
commodity price for electricity under then-current commonwealth
contracts. The maximum payment in any 1 fiscal year under all such
contracts shall not exceed $5 million. The commonwealth shall be
indemnified under such contracts by the owners or power marketers on such terms
as the corporation shall deem commercially reasonable. The amounts
collected under section 20 of chapter 25 shall be impressed with a trust for
the benefit of the fund. To facilitate the purchase by the
corporation of electricity produced by renewable energy technologies or of
certificates produced under the renewable energy portfolio standard regulations
of the department of energy resources representing the generation attributes of
electrical energy produced by renewable energy technologies, and in
consideration of the sale of such electricity or certificates, the commonwealth
shall covenant with the sellers of such electricity or certificates that the
amounts collected under said section 20 shall not be diverted from the fund and
that the rates of the mandatory charges under said section 20 shall not be
reduced during the term, which shall not exceed 20 years, of any contract
entered into by the corporation for the purchase of such electricity or
certificates below a level which shall enable the corporation to fulfill the
terms of such contracts. In furtherance of the public purposes of
the fund, income derived from the investment of amounts collected under said
section 20 shall be expended by the corporation as provided in subsection (a)
and, in the discretion of the corporation, in furtherance of the public
purposes of the corporation and for such costs of departments and agencies that
support or are otherwise consistent with the purposes of the fund.
SECTION 50. Section 7 of
chapter 44 of the General Laws, as so appearing, is hereby amended by striking
out clause (3B) and inserting in place thereof the following clause:-
(3B) For
energy conservation, alternative energy or renewable energy improvements to
public buildings or facilities owned or leased by the city or town, or on
property owned or leased by the city or town, 20 years.
SECTION 51. Section 1 of
chapter 90 of the General Laws, as amended by section 1 of chapter 79 of the
acts of 2008, is hereby further amended by inserting before the definition of
“Ambulance” the following 2 definitions:-
“Alternative
fuel”, an energy source used to power a vehicle that does not meet the
definition of fuel in section 1 of chapter 64A and is not diesel motor fuel.
“Alternative
fuel vehicle”, a vehicle powered by alternative fuel with the following
attributes:
(a) the capability of operating only on alternative fuel;
(b) its original use was commenced with the taxpayer;
(c) acquired by the taxpayer for use or lease, but not for
resale;
(d) is designed to use and uses alternative fuel for a
significant portion of the total fuel used for propulsion energy for the
vehicle; and
(e) when
operating on petroleum fuel, the vehicle model's miles per gallon rating from
the United States Environmental Protection Agency exceeds the agency's
corporate average fuel economy requirement for the class of vehicles, whether
cars or light trucks, in which the vehicle model is classified. The
model specification shall include characteristics that affect fuel economy and
for which the United States Environmental Protection Agency issues distinct
miles per gallon ratings, such as transmission type and engine size.
SECTION 52. Said section 1 of
said chapter 90, as so appearing, is hereby further amended by inserting after
the definition of “House trailer” the following definition:-
“Hybrid
vehicle”, a vehicle (a) which draws propulsion energy from onboard sources of
stored energy which are both: (1) an internal combustion or heat engine using
combustible fuel; and (2) a rechargeable energy storage system; or (b) which,
in the case of a passenger vehicle, medium duty passenger vehicle or light
truck: (1) for model year 2002 and later model year vehicles, has received a
certificate of conformity under the Clean Air Act and meets or exceeds the
equivalent qualifying California low emission vehicle standard adopted under
section 243(e)(2) of said Clean Air Act for that make and model year; (2) for
model year 2004 and later model vehicles, has received a certificate that the
vehicle meets or exceeds the Tier II Bin 5 emission level established in
regulations prescribed by the Administrator of the United States Environmental
Protection Agency under section 202(i) of said Clean Air Act for that make and
model year vehicle; and (3) achieves an increase of 10 per cent fuel efficiency
as compared to the average vehicle of its class as defined by the United States
Environmental Protection Agency.
SECTION 53. Subclause (3) of
clause (b) of the definition of “hybrid vehicle” in said section 1 of said
chapter 90, as appearing in section 52, is hereby amended by striking out the
figure “10” and inserting in place thereof the following figure:- 25.
SECTION 54. Section 3 of
chapter 143 of the General Laws, as so appearing, is hereby amended by
inserting after the word “structure”, in line 55, the following words:- , and
the energy requirements imposed by clause (p) of section 94.
SECTION 55. Said section 94 of
said chapter 143, as amended by section 1 of chapter 78 of the acts of 2008, is
hereby further amended by adding the following 4 clauses:-
(o) To
adopt and fully integrate the latest International Energy Conservation Code as
part of the state building code, together with any more stringent
energy-efficiency provisions that the board, in consultation with the
department of energy resources, concludes are warranted. The energy
provisions of the state building code shall be updated within 1 year of any
revision to the International Energy Conservation Code.
(p) In
consultation with the department of energy resources, to develop requirements
and promulgate regulations as part of the state building code for the training
and certification of city and town inspectors of buildings, building
commissioners and local inspectors regarding the energy provisions of the state
building code, and to require that all new construction and any major reconstruction,
alteration or repair of residential and non-residential buildings pass
inspection by inspectors who have been trained and certified, demonstrating
full compliance with the energy provisions of the state building code.
(q) In
consultation with the department of energy resources, to develop requirements
and promulgate regulations as part of the state building code, in addition to
the requirements of the latest International Energy Conservation Code,
requiring a process to ensure that all new non-residential buildings larger
than 10,000 square feet and any major reconstruction, alteration or repair of
all such buildings perform as designed with respect to energy
consumption by undergoing building commissioning or acceptance testing. Such
commissioning must be completed before the issuance of a certificate of
occupancy.
(r) In
consultation with the department of energy resources, professional
organizations and other stakeholders, to prepare a report evaluating the
advisability of a requirement of periodic commissioning for large
non-residential buildings and, if such a requirement is deemed advisable,
evaluating possible approaches to periodic commissioning.
SECTION 56. Chapter 159 of the
General Laws is hereby amended by striking out section 10, as amended by
section 30 of chapter 19 of the acts of 2007, and inserting in place thereof
the following section:-
Section 10. The department of
telecommunications and cable shall enforce this chapter to the extent that it
relates to telecommunications. The department of public utilities shall
enforce all other provisions.
SECTION 57. Chapter 164 of the
General Laws is hereby amended by striking out section 1, as amended by section
36 of said chapter 19, and inserting in place thereof the following section:-
Section 1. In this chapter, unless the
context otherwise requires, the following words shall have the following
meanings:
“Aggregator”,
an entity which groups together electricity customers for retail sale purposes,
except for public entities, quasi-public entities or authorities, or subsidiary
organizations thereof, established under the laws of the commonwealth.
“Alternative
energy development”, shall include, but shall not be limited to, solar energy,
wind, wood, alcohol, hydroelectric, biomass energy systems, renewable
non-depletable and recyclable energy sources.
“Alternative
energy producer”, a person, firm, partnership, association, public or private
corporation, or an agency, department, board, commission or authority of the
commonwealth or of a subdivision of the commonwealth, that owns or operates a
cogeneration facility or small power production facility as defined in this
section, and does not engage in the retail sale of electricity other than sales
to customers that are within the confines of an industrial park, which existed
before
“Alternative
energy property”, any property powered in whole or in part by the sun, wind,
water, biomass, alcohol, wood, or any renewable, non-depletable or recyclable
fuel, and property related to the exploration, development, processing,
transportation and distribution of the aforementioned energy resources.
“Ancillary
services”, those functions which support generation, transmission, and
distribution, and which shall include the following services: (1) reactive
power or voltage control; (2) loss compensation; (3) scheduling and dispatch;
(4) load following; (5) system protection service; and (6) energy imbalance
service.
“Articles of
organization”, (i) the articles of organization of a corporation which were
filed after
(1) a certificate of a vote establishing a series filed under
section 26 of chapter 156B;
(2) articles of amendment filed under section 8B;
(3)
restated articles of organization filed under section 8C;
(4) certificates of confirmation of proceedings filed under
section 8D;
(5) articles of consolidation or merger filed under section
102A;
(6) articles of dissolution filed under section 100 of chapter
156B;
(7) a certificate as to the revival of a corporation filed under
section 108 of chapter 156B.
“Basic
service”, the electricity services provided to a retail customer upon either:
(i) the inability of a customer to receive competitive supply from a supplier
under subsection (d) of section 1B; (ii) the failure of the retail customer to
elect competitive supply from a supplier under said subsection (d) of said
section 1B; or (iii) upon the expiration of and the retail customer’s failure
to renew a competitive supply contract under said subsection (d) of said
section 1B or other means.
“Cogeneration
facility”, any electrical generating unit having a power production capacity
which, together with any other facilities located at the same site, is not
greater than 30 megawatts and which produces electric energy and steam or other
form of useful energy utilized for industrial, commercial, heating or cooling
purposes, and employs a fuel other than oil as its primary energy source,
except that oil may be used: (1) in combination with coal, in a mixture not
exceeding 70 per cent oil; or (2) during any modifications to any existing
electrical generating facility undertaken for the purpose of enabling such
facility to employ, except during any periods of maintenance or repair, a fuel
other than oil as its primary energy source; provided, however, that
cogeneration facility shall also include any electric generating unit having a
power production capacity which, together with any other facilities located at
the same site, is not greater than 30 megawatts and which produces electric
energy and steam or other form of useful energy utilized for industrial,
commercial, heating or cooling purposes that is within the confines of an
industrial park, which existed before
“Contract
termination fee”, the fees owed by the distribution company to its wholesale
power supplier, as determined and approved by the department of public
utilities.
“Corporation”, a corporation to which this chapter applies, as set
forth in section 3.
“Default
Service”, the electricity services provided to a retail customer upon: (i) the
failure of a distribution company or supplier to provide such electricity
services as required by law or as contracted for under the standard service
offer; (ii) the completion of the term of the standard service offer; or (iii)
the inability of a customer to receive standard service transition rates during
the term of the standard service offer under section 1B.
“Department”, the department of public utilities.
“Distributed
generation”, a generation facility or renewable energy facility connected
directly to distribution facilities or to retail customer facilities which
alleviate or avoid transmission or distribution constraints or the installation
of new transmission facilities or distribution facilities.
“Distribution”, the delivery of electricity over lines which
operate at a voltage level typically equal to or greater than 110 volts and
less than 69,000 volts to an end-use customer within the commonwealth. The distribution of electricity shall be subject to the jurisdiction of the
department of public utilities.
“Distribution
company”, a company engaging in the distribution of electricity or owning,
operating or controlling distribution facilities; provided, however, that a
distribution company shall not include any entity which owns or operates plant
or equipment used to produce electricity, steam and chilled water, or an
affiliate engaged solely in the provision of such electricity, steam and
chilled water, where the electricity produced by such entity or its affiliate
is primarily for the benefit of hospitals and non-profit educational
institutions, and where such plant or equipment was in operation before
“Distribution
facility”, a plant or equipment used for the distribution of electricity and
which is not a transmission facility, a cogeneration facility or a small power
production facility.
“Distribution service”, the delivery of electricity to the customer
by the electric distribution company from points on the transmission system or
from a generating plant at distribution voltage.
“Electric
company”, a corporation organized under the laws of the commonwealth for the
purpose of making by means of water power, steam power or otherwise and for
selling, transmitting, distributing,
transmitting and selling, or distributing and selling, electricity within the
commonwealth, or authorized by special act so to do, even though subsequently
authorized to make or sell gas; provided, however, that electric company shall
not mean an alternative energy producer; provided further, that a distribution
company shall not include an entity which owns or operates a plant or equipment
used to produce electricity, steam and chilled water, or an affiliate engaged
solely in the provision of such electricity, steam and chilled water, where the
electricity produced by such entity or its affiliate is primarily for the
benefit of hospitals and nonprofit educational institutions, and where such
plant or equipment was in operation before
“Electric service”, the provision of generation, transmission,
distribution or ancillary services.
“End user”,
any individual, corporation, firm or subsidiary of a firm that is an ultimate
consumer of petroleum products and which, as part of its normal business
practices, purchases or obtains petroleum products from a wholesaler or
reseller and receives delivery of that product.
“Energy
audit”, a determination of the energy consumption characteristics of a building
or facility which identifies the type, size and rate of energy consumption of
such building or facility and the major energy using systems of such building
or facility; determines appropriate energy conservation maintenance and
operating procedures; and indicates the need, if any, for the acquisition and
installation of energy conservation measures or alternative energy property.
“Energy
conservation”, shall include, but shall not be limited to, the modification of
or change in the operation of real or personal property in a manner likely to
improve the efficiency of energy use, energy conservation measures and any
process to audit or identify and specify energy and cost savings.
“Energy
conservation measures”, measures involving modifications of maintenance and
operating procedures of a building or facility and installations therein, which
are designed to reduce energy consumption in such building or facility, or the
installation or modification of an installation in a building or facility which
is primarily intended to reduce energy consumption.
“Energy
conservation projects”, projects to promote energy conservation, including but
not limited to, energy conserving modification to windows and doors; caulking
and weatherstripping; combined heat and power facilities; insulation; automatic
energy control systems; hot water systems; equipment required to operate
variable steam, hydraulic and ventilating systems; plant and distribution
system modifications including replacement of burners, furnaces or boilers;
devices for modifying fuel openings; electrical or mechanical furnace ignition
systems; utility plant system conversions; replacement or modification of
lighting fixtures; energy recovery systems; and cogeneration systems.
“Energy
efficiency”, the implementation of an action, policy or measure which entails
the application of the least amount of energy required to produce a desired or
given output.
“Energy
management services”, a program of services, including energy audits, energy
conservation measures, energy conservation projects or a combination thereof,
and building maintenance and financing services, primarily intended to reduce
the cost of energy and water in operating buildings, which may be paid for in
whole or in part, by cost savings attributable to a reduction in energy and
water consumption which result from such services.
“FERC”, the federal energy regulatory commission.
“Gas company”, a corporation organized for the purpose of making
and selling or distributing and selling, gas within the commonwealth, even
though subsequently authorized to make or sell electricity; provided, however,
that gas company shall not mean an alternative energy producer.
“Generation”,
the act or process of transforming other forms of energy into electric energy
or the amount of electric energy so produced.
“Generation company”, a company engaged in the business of producing,
manufacturing or generating electricity or related services or products,
including but not limited to, renewable energy generation attributes for retail
sale to the public.
“Generation
facility”, a plant or equipment used to produce, manufacture or otherwise
generate electricity and which is not a transmission facility.
“Generation service”, the provision of generation and related
services to a customer.
“Green
building”, a building, including but not limited to, homes, offices, schools,
and hospitals constructed or renovated to incorporate design techniques,
technologies, and materials that lessen its dependence on fossil fuels and
minimize its overall negative environmental impact.
“Horizontal
market power”, a situation in which 1 or a few market participants combined have undue concentration in the ownership of facilities at
the same level in the chain of production resulting in the ability to influence
price to his or their own benefit.
“
“Mitigation”,
all actions or occurrences which reduce the amount of money that a distribution
company seeks to collect through the transition charge, including those amounts
resulting from both matters within the company's control and from matters not
wholly within the company's control; provided, however, that mitigation shall,
in accordance with section 1G, include, but not be limited to, the following: (1)
sales of capacity, energy, ancillary services, reserves, and emission
allowances from generating facilities that are wholly or partly owned by the
company; (2) sales of capacity, energy, ancillary services, reserves and
emission allowances from generating facilities with which the company has a
power purchase agreement; (3) adjustments to the company's minimum obligations
under purchase power agreements that decrease such obligations, such as those
that may be obtained through contract buy-out or renegotiation; (4) residual
value; (5) sales and voluntary write downs of company generation-related
assets; (6) any market value in excess of net book value associated with the
sale, lease, transfer or other use of the assets of the company unrelated to
the provision of transmission service or distribution service at regulated
prices, including, but not limited to, rights-of-way, property and intangible
assets when the costs associated with the acquisition of those assets have been
reflected in the company’s rates for regulated service; provided, however, that
the department of public utilities shall determine the market values based on
the highest prices that such assets could reasonably realize after an open and
competitive sale; and (7) any allowed refinancing of stranded assets or other
debt obligations as provided by law.
“Non-renewable
energy supply and resource development”, shall include, but shall not be
limited to, gasoline, natural gas, coal, nuclear energy, offshore and onshore
petroleum and facilities related to the exploration, development, processing,
transportation and distribution of such resources and programs established for
the allocation of supplies of such resources and the development of supply
shortage contingency plans.
“Petroleum
products”, propane, gasoline, unleaded gasoline, kerosene, #2 heating oil,
diesel fuel, kerosene base jet fuel, and #4, 5 and 6 residual oil for utility
and non-utility uses, and all petroleum derivatives, whether in bond or not,
which are commonly burned to produce heat, power, electricity or motion or
which are commonly processed to produce synthetic gas for burning.
“Primary
energy source”, fuels used, except during periods of maintenance or repair, for
the generation of electric energy; provided, however, that primary energy
source shall not include the minimum amounts of fuel required for ignition,
start-up, testing, flame stabilization, and control uses, and minimum amounts
of fuel required to alleviate or prevent unanticipated equipment outages and
emergencies declared by the governor, directly affecting the public health,
safety and welfare which would result from electric power outages.
“Renewable
energy”, (i) resources whose common characteristic is that they are
nondepletable or are naturally replenishable but flow-limited; or (ii) existing
or emerging non-fossil fuel energy sources or technologies, which have
significant potential for commercialization in New England and New York, and
shall include the following: solar photovoltaic or solar thermal electric
energy; wind energy; ocean thermal, wave, or tidal energy; geothermal; fuel
cells; landfill gas; waste-to-energy which is a component of conventional
municipal solid waste plant technology in commercial use; naturally flowing
water and hydroelectric; and low emission advanced biomass power conversion
technologies using such fuels such as wood, by-products or waste from
agricultural crops, food or animals, energy crops, biogas, liquid biofuel
including but not limited to biodiesel, organic refuse-derived fuel, or algae;
provided, however, that renewable energy supplies shall not include coal, oil,
natural gas except when used in fuel cells, and nuclear power.
“Reseller”, a
person, corporation, firm or subsidiary of any firm that carries on the trade
or business of purchasing petroleum products and reselling them without
substantially changing their form, or any wholesaler or retail seller of
electricity or natural gas.
“Residual value”, the value of electric company assets, not
including the income which may be obtained through generation facility
operation.
“Retail access”, the use of transmission and distribution
facilities owned by a transmission company or a distribution company to
transmit or distribute electricity from a generation company, supplier or
aggregator to retail customers.
“Retail customer”, a customer who purchases electricity for its own
consumption.
“Securitization”,
the use of rate reduction bonds to refinance debt and equity associated with
transition costs under section 1H.
“Service territory”, the geographic area in which a distribution
company provided distribution service on
“Small power
production facility”, a facility which is any electrical generating unit which
produces electric energy solely by the use, as a primary energy source, of
biomass, waste, wind, water, wood, geothermal, solar energy or any combination
thereof, or produces gas if it is produced from coal, biomass, solid waste or
wood, and has a power production capacity which, together with any other facilities
located at the same site, is not greater than 30 megawatts.
“Steam
distribution company”, a person, firm, partnership, association
or private corporation organized or operating under the laws of the
commonwealth with the primary purpose of operating a plant, equipment or
facilities for the manufacture, production, transmission, furnishing or
distribution of steam to or for the public for compensation within the
commonwealth; provided, however, that steam distribution company shall not
include: (i) an entity producing or distributing steam exclusively on private
property and solely for use by the entity or the entity's tenant, and not for
distribution or sale; or (ii) a company that produces and sells steam as a
by-product of the production of electricity for sale in the wholesale
electricity markets and does not own or operate pipelines off site of the
generating facility for the distribution of steam.
“Supplier”, a supplier of generation service to retail customers,
including power marketers, brokers and marketing affiliates of distribution
companies, except that no electric company shall be considered a supplier.
“Supplying
electricity in bulk”, engaging in the business of making and selling or
distributing and selling electricity to electric companies, railroads, street
railways or electric railroads, or to municipalities for municipal use or
re-sale to their inhabitants, or to persons, associations or corporations under
limitations imposed by special law or under section 90 or corresponding
provisions of earlier laws.
“Transition
charge”, the charge that provides the mechanism for recovery of an electric
company's transition costs.
“Transition
costs”, the embedded costs as determined under section 1H which remain after
accounting for maximum possible mitigation, subject to determination by the
department of public utilities.
“Transmission”, the delivery of power over lines that operate at a
voltage level typically equal to or greater than 69,000 volts from generating
facilities across interconnected high voltage lines to where it enters a
distribution system.
“Transmission
company”, a company engaging in the transmission of electricity or owning,
operating or controlling transmission facilities; provided, however, that a
transmission company shall provide transmission service to all generation
companies, municipal lighting plants, suppliers and load aggregators in the
commonwealth, whether affiliated or not, on comparable, nondiscriminatory
prices and terms, under federal law and regulation.
“Transmission facility”,
plant or equipment used for the transmission of electricity, as determined by
the FERC under federal law and regulation.
“Transmission service”, the delivery of electricity to a retail
customer, supplier, distribution company or wholesale customer by a
transmission company.
“Unbundled
rates”, rates designed to separate the costs of providing generation, the costs
of transmission and distribution services, and transition and general access
charges.
“Vertical
market power”, a situation in which 1 or a few market participants, having
joint ownership of facilities at differing levels of the chain of production,
such as generation, transmission and distribution, possess the ability to use
such joint ownership to influence price to his or their own benefit.
“Wholesaler”,
a person, corporation, firm or any part or subsidiary of any firm which
supplies, sells, transfers or otherwise furnishes
petroleum products to resellers or end-users.
“Wholesale generation company”, a company engaged in the business of producing,
manufacturing or generating electricity for sale at wholesale only.
SECTION 58. Said section 1A of
said chapter 164, as appearing in the 2006 Official Edition, is hereby amended
by adding the following subsection:-
(f) Neither
this section nor sections 1B to 1H, inclusive, shall preclude an electric
company or a distribution company from constructing, owning and operating
generation facilities that produce solar energy; provided, however, that such
company shall not own or operate more than 25 megawatts of such facilities
before
SECTION 59. Subsection (f) of
section 1A of chapter 164 of the General Laws is hereby repealed.
SECTION 60. Section 1D of said
chapter 164, as so appearing, is hereby amended by adding the following 3
paragraphs:-
Residential or
small commercial customers: (a) initiating new utility service; (b) reinstating
service following a change of residence or business location; (c) making an
inquiry regarding their rates; or (d) seeking information regarding energy
efficiency shall be offered the option to learn about their ability to enroll
with a participating non-utility competitive supplier of energy.
Customers expressing an interest in learning about their electric supply
options shall be informed of offers available by participating non-utility
competitive suppliers. The electric distribution company shall describe
then available offers available through a method approved by the department.
Participating
non-utility competitive suppliers of energy may list qualifying electric offers
to provide electric generation service to residential and small commercial customers
in each customer’s utility bill. The department shall determine the manner such
information is presented in customers’ utility bills.
For electric
suppliers who have chosen the complete billing method, the electric
distribution company shall make timely payments to such suppliers in accordance
with this paragraph. The distribution company shall: (a) bill all of the
electric supplier’s customers in a service class according to complete billing;
(b) pay such suppliers the full amounts due from customers for generation
services in a time period consistent with the average payment period of the
participating class of customer, less a percentage of such amounts that
reflects the average of the uncollectible bills for the participating customer
classes of the electric distribution company and other reasonable development,
operating or carrying costs incurred, as approved by the department.
SECTION
61.
Subsection (c) of
section 1E of said chapter 164, as so appearing, is hereby amended by striking
out, in line 34, the figure “2” and inserting in place thereof the following
figure:- 2.5.
SECTION 62. Section 1F of said
chapter 164, as so appearing, is hereby amended by striking out, in line 90,
the word “division” and inserting in place thereof the following word:-
department.
SECTION 63. Subparagraph (i)
of paragraph (4) of section 1F of said chapter 164, as so appearing, is hereby
amended by striking out the second paragraph.
SECTION 64. Said paragraph (4)
of said section 1F of said chapter 164, as so appearing, is hereby further
amended by striking out subparagraphs (ii) and (iii) and inserting in place
thereof the following subparagraph:-
(ii) A
residential customer eligible for low-income discount rates shall receive the
service on demand. Each distribution company shall periodically notify all
customers of the availability and method of obtaining low-income discount
rates. An existing residential customer eligible for a low-income discount on
the date of the start of retail access who orders service for the first time
from a distribution company shall be offered basic service by that distribution
company.
SECTION 65. Section 1G of said
chapter 164, as so appearing, is hereby amended by striking out, in lines 366
and 367, the words “government regulations” and inserting in place thereof the
following words:- telecommunications, utilities and energy.
SECTION 66. Section 47C of
said chapter 164, as so appearing, is hereby amended by adding the following
subsection:-
(l) The
activities of a municipal lighting plant cooperative shall not be imputed to
its individual members and the provision of energy brokering and other
energy-related services by a municipal lighting plant cooperative to retail
customers without any accompanying sale of electricity to such retail customers
shall not constitute the supply of generation services by its members for the
purposes of subsection (b) of section 47A.
SECTION 67. Section 76D of
said chapter 164, as so appearing, is hereby amended by inserting after the
word “companies”, in lines 1 and 2, in line 14, the third time it appears, and
in line 20, the second time it appears, the following words:- , steam
distribution companies.
SECTION 68. Said section 76D
of said chapter 164, as so appearing, is hereby amended by inserting after the
word “company”, in line 9, the following words:- , steam distribution
company.
SECTION 69. Said chapter 164
is hereby further amended by striking out section 96, as so appearing, and
inserting in place thereof the following section:-
Section 96. Companies, except steam
distribution companies, subject to this chapter and their holding companies
may, notwithstanding any other provisions of this chapter or of any general or
special law, consolidate or merge with one another, or may sell and convey
their properties to another of such companies or to a wholesale generation
company and such other company may purchase such properties if such purchase,
sale, consolidation or merger, and the terms thereof, have been approved, at
meetings called therefor, by vote of the holders of at least two-thirds of each
class of stock outstanding and entitled to vote on the question of each of the
contracting companies, and that the department, after notice and a public
hearing, has determined that such purchase and sale or consolidation or merger,
and the terms thereof, are consistent with the public interest; provided,
however, that in making such a determination the department shall at a minimum
consider: proposed rate changes, if any; the long term strategies that will
assure a reliable, cost effective energy delivery system; any anticipated
interruptions in service; or other factors which may negatively impact customer
service; and provided further, that the purchase or sale of properties by, or
the consolidation or merger of, wholesale generation companies shall not
require departmental approval.
SECTION 70. Section 116 of
said chapter 164, as so appearing, is hereby amended by inserting after the
word “secretary”, in line 2, the following words:- or municipal lighting plant
manager.
SECTION 71. Said section 116
of said chapter 164, as so appearing, is hereby further amended by inserting
after the word “removal,”, in lines 11 and 12, the
following words:- the gas or electric company employing.
SECTION 72. Said section 116
of said chapter 164, as so appearing, is hereby further amended by striking
out, in line 16, the word “such” and inserting in place thereof the
following words:- a duly authorized.
SECTION 73. Said section 116
of said chapter 164, as so appearing, is hereby further amended by adding the
following sentence:- A gas or electric company
may direct a duly authorized employee to restore meters, pipes, wires,
fittings, works or service, consistent with the local bargaining agreement
entered into by the company and the local bargaining unit to which the employee
belongs.
SECTION 74. Section 134 of
said chapter 164, as so appearing, is hereby amended by striking out, in lines
31, 51 and 75, the word “division” and inserting in place thereof, in each
instance, the following word:- department.
SECTION 75. The fourth
paragraph of section 134 of said chapter 164, as so appearing, is hereby
amended by striking out the last sentence.
SECTION 76. Said section 134
of said chapter 164, as so appearing, is hereby further amended by striking
out, in lines 56 and 64, the words “standard offer” and inserting in place thereof,
in each instance, the following word:- basic.
SECTION 77. Said section 134
of said chapter 164, as so appearing, is hereby further amended by striking
out, in line 74, the words “standard offer” and inserting in place thereof the
following words:- basic service.
SECTION 78. Said chapter 164
is hereby further amended by adding the following 6 sections:-
Section 138. As used in this section and
sections 139 and 140, the following words shall, unless the context otherwise
requires, have the following meanings:-
“Agricultural
net metering facility”, a renewable energy generating facility operated as part
of an agricultural business that generates electricity that does not have a
generation capacity of more than 2 megawatts and is located on land owned or
controlled by the agricultural business and is used to provide energy to
metered accounts of the business.
“Agriculture”,
the same meaning as provided in section 1A of chapter 128; provided, however,
that when necessary, the commissioner of agricultural resources shall determine
if a business is an agricultural business.
“Class I net
metering credit”, a credit equal to the excess kilowatt-hours by time of use
billing period, if applicable, multiplied by the sum of the distribution
company’s: (i) default service kilowatt-hour charge in the
“Class I net
metering facility”, a plant or equipment that is used to produce, manufacture
or otherwise generate electricity and that is not a transmission facility and
that has a design capacity of 60 kilowatts or less.
“Class II net
metering credit”, a credit equal to the excess kilowatt-hours by time of use
billing period, if applicable, multiplied by the sum of the distribution
company’s: (i) default service kilowatt-hour charge in the
“Class II net
metering facility”, an agricultural net metering facility, solar net metering
facility, or wind net metering facility with a generating capacity of more than
60 kilowatts but less than or equal to 1 megawatt; provided, however, that a
Class II net metering facility owned or operated by a customer which is a
municipality or other governmental entity may have a generating capacity of
more than 60 kilowatts but less than or equal to 1 megawatt per unit.
“Class
“Class
“Customer”, a customer of a distribution company that is entitled
to the net metering credits, including net metering facilities.
“Neighborhood”,
a geographic area including and limited to a unique community of interests that
is recognized as such by residents of such area and which, in addition to
residential and undeveloped properties, may encompass commercial properties.
“Neighborhood
net metering credit”, a credit equal to the excess kilowatt-hours by time of
use billing period, if applicable, multiplied by the sum of the distribution
company’s: (i) default service kilowatt-hour charge in the
“Neighborhood
net metering facility”, a Class I, II or
“Net metering”,
the process of measuring the difference between electricity delivered by a
distribution company and electricity generated by a Class I, Class II, Class
“Renewable
energy”, energy generated from any source that qualifies as a Class I or Class
II renewable energy generating source under section 11F of chapter 25A;
provided, however, that after conducting administrative proceedings, the
department of energy resources, in consultation with the department of
agriculture, may add technologies or technology categories.
“Solar net metering facility”, a facility for the production of
electrical energy that uses sunlight to generate electricity and is
interconnected to a distribution company.
“Wind net
metering facility”, a facility for the production of electrical energy that
uses wind to generate electricity and is
interconnected to a distribution company.
Section 139. (a) A distribution
company customer that uses electricity generated by a Class I or Class II net
metering facility may elect net metering as follows:
(1) If
the electricity generated by the Class I or Class II net metering facility
during a billing period exceeds the customer’s kilowatt-hour usage during the
billing period, the customer shall be billed for 0 kilowatt-hour usage and the
excess Class I or Class II net metering credits shall be credited to the
customer’s account. Credits may be carried forward from month to
month. A Class I or Class II wind or solar net metering facility may
designate customers of the same distribution company to which the Class I or
Class II wind or solar net metering facility is interconnected and that are
located in the same
(2) If
the customer’s kilowatt-hour usage exceeds the electricity generated by the
Class I or Class II net metering facility during the billing period, the
customer shall be responsible for the balance at the distribution company’s applicable
rate.
(b) A
distribution company customer that uses electricity generated by a Class
(1) If
the electricity generated by the Class
(2) If
the customer’s kilowatt-hour usage exceeds the electricity generated by the
Class
(c) The
distribution portion of any Class I, Class II or Class
(d) The
distribution company shall impose tariffs, as may be approved from time to time
by the department, regarding necessary interconnection studies and the type,
costs and timeframe for installing metering and distribution system upgrades to
accommodate these installations. Such tariffs shall require that
all facilities maintain adequate insurance. Distribution companies shall be
prohibited from imposing special fees on Class I
net metering facilities, such as backup charges and demand charges,
or additional controls or liability insurance, as long as the facility
meets the other requirements of the interconnection tariff and all relevant
safety and power quality standards.
Before
providing net metering service under this section, a Class II or
(e) A
Class I, II or
(f) The
aggregate capacity of net metering shall not exceed 1 per cent of the
distribution company’s peak load. For the purpose of calculating the
aggregate capacity, the capacity of a solar net metering facility shall be 80
per cent of the facility’s direct current rating at standard test conditions
and the capacity of a wind net metering facility shall be the nameplate rating.
(g) The
department shall adopt rules and regulations necessary to carry out this
section.
Section 140. A neighborhood net metering
facility shall elect net metering as follows:
(a) If
the electricity generated by the neighborhood net metering facility during a
billing period exceeds its kilowatt-hour usage during the billing period, the
neighborhood net metering facility shall be billed for 0 kilowatt-hour usage
and the excess neighborhood net metering credits shall be credited to those
customers identified by the neighborhood net metering facility as being served
by the same company to which the neighborhood net metering facility is
interconnected, residing in the same neighborhood in which the neighborhood net
metering facility is located and having an ownership interest in the
neighborhood net metering facility. The amount of the excess neighborhood
net metering credits to be attributed to each such customer shall be determined
by the allocation provided by the neighborhood net metering facility.
Credits may be carried forward by such customers from month to month.
Written notice of the identity of the customers so designated and the
allocation of the credits to be attributed to such customers shall be in such
form as the distribution company shall reasonably require.
(b) The
department shall adopt rules and regulations necessary to carry out this
section, including, but not limited to, further defining the term
“neighborhood” and limiting the number of customers that may be designated by
neighborhood net metering facilities to receive neighborhood net metering
credits.
Section 141. In all decisions or actions
regarding rate designs, the department shall consider the impacts of such
actions, including the impact of new financial incentives on the successful
development of energy efficiency and on-site generation. Where the scale
of on-site generation would have an impact on affordability for low-income
customers, a fully compensating adjustment shall be made to the low-income rate
discount.
Section 142. The department shall continue
to remove any impediments to the development of efficient, low-emissions
distributed generation, including combined heat and power, taking into account
the need to appropriately allocate any associated costs in a fair and equitable
manner. For the purposes of this section, “efficient, low-emissions”
shall mean an efficiency of 60 per cent or greater on an annual basis and
emissions lower than required by the department of environmental protection.
Section 143. (a) For the purposes of
this section, the term “small municipal renewable energy generating facility”
shall mean a generating unit that is designed for, or capable of, operating at
a gross capacity of less than 10 megawatts and that qualifies as a Class I
renewable energy generating source under section 11F of chapter 25A.
(b) Notwithstanding
any general or special law to the contrary, a municipality may design, install,
own and operate small municipal renewable energy generating facilities, sell
any electricity generated from such facilities and sell any other marketable
products resulting from its generation of renewable energy at such facilities,
including electronic certificates created to represent the generation
attributes, as defined in 225 CMR 14.02, of each megawatt hour of energy
generated by the renewable energy facilities; provided, however, that no later
than 15 days after the initiation of a procurement of services, equipment or
materials related to a small municipal renewable energy generating facility and
again no later than 15 days after the date that such small municipal renewable
energy generating facility first produces electrical energy, said municipality
shall submit a report to the department of public utilities and the department
of energy resources detailing the costs of the small municipal renewable energy
generating facility and a plan and forecast for the disposition of the
facility’s products. The department of energy resources shall annually
issue a report containing information on small municipal renewable energy
generating facilities, including the number, capacity, production and
performance of such facilities and recommendations, if any, for additional
legislative action to increase the benefits available to municipalities through
ownership of renewable energy generating facilities. The department of
energy resources shall submit such report, including drafts of legislation to
implement recommendations within such report, to the joint committee on
telecommunications, utilities and energy and the senate and house committees on
ways and means not later than April 30 of each year.
(c) A
municipality may issue from time to time bonds or notes in order to finance all
or a portion of the costs of small municipal renewable energy generating
facility projects authorized under this section. Notwithstanding any
provision of chapter 44 to the contrary, the maturities of any such bonds
issued by a municipality hereunder either shall be arranged so that for each
issue the annual combined payments of principal and interest payable in each
year, commencing with the first year in which a principal payment is required, shall
be as nearly equal as practicable in the opinion of the municipal treasurer or
shall be arranged in accordance with a schedule providing for a more rapid
amortization of principal. The first payment of principal of each issue
of bonds or of any temporary notes issued in anticipation of the bonds shall be
not later than 5 years after the anticipated date of commencement of the
regular operation of the small municipal renewable energy generating facilities
financed thereby, as determined by the municipal treasurer, and the last
payment of principal of the bonds shall be not later than 25 years from the
date of the bonds. Indebtedness incurred under this section shall not be
included in determining the limit of indebtedness of a municipality under section
10 of said chapter 44 but, except as otherwise provided in this subsection,
shall be subject to the provisions of said chapter 44.
(d) A
municipality shall procure any services required for the design, installation,
improvement, repair and operation of small municipal
renewable energy generating facilities authorized under this section, and
acquire any equipment necessary in connection therewith, in accordance
with the procurement requirements of chapter 30B as applicable. A municipality may procure any such services
and equipment together as 1 procurement or as separate
procurements thereunder.
(e) A
municipality may establish an enterprise fund under section 53F1/2 of chapter
44 for the receipt of all revenues from the operation of small municipal renewable
energy generating facilities authorized under this section to operate and all
moneys received for the benefit of such small municipal renewable energy
generating facilities, other than the proceeds of bonds or notes issued
therefor. Such receipts shall be used to pay the costs of operation and
maintenance of the small municipal renewable energy generating facilities, to
pay the costs of future improvements and repairs thereto and to pay the
principals and interest on any bonds or notes issued therefor.
SECTION 79. The General Laws
are hereby further amended by inserting after chapter 164A the following
chapter:-
CHAPTER 164B.
REGULATION OF STEAM DISTRIBUTION COMPANIES.
Section 1. For purposes of this chapter, the
term “department” shall refer to the department of public utilities. The
department shall have supervision of facilities operated by steam distribution
companies for the sole purpose of ensuring public safety and shall establish
reasonable rules and regulations pertaining to the construction and operation
of steam distribution facilities and equipment used in manufacturing and
transporting steam. The department shall keep itself informed as to the
methods, practices, and condition of all facilities and equipment associated
with the distribution of steam, including ducts and conduits, and shall make
such examinations and investigations of the steam distribution system as
necessary, including the adequacy of operation, maintenance and capital
improvements to insure safe operation of facilities operated by a steam
distribution company.
Section 2. Each steam distribution company
shall file a certified copy of its certificate of incorporation and bylaws with
the department. By March first of each year each company shall file a report on
safety related matters as the department may specify, including but not limited
to number, duration and causes of all steam leakage incidents, distribution
system accidents and service outages, time elapsed between the incident and the
return to service following a repair. The department may levy fines against a
steam distribution company for failure to comply with regulations promulgated
by the department. In determining the appropriateness of any fine, the
department shall consider the seriousness of the violation and the good faith
compliance efforts of the steam distribution company.
Section 3. The department shall provide
written notice to the attorney general of any violation of this chapter. The
department’s authority shall not diminish the authority of any municipality to
regulate steam distribution, nor shall it diminish the authority of the
department of public safety under chapter 146.
Section 4. Any entity operating a steam
distribution system that does not meet the definition of a steam distribution
company set forth in section 1 of chapter 164 shall be exempt from the
requirements of this chapter and section 18A of chapter 25 if the entity files
a detailed inspection and maintenance plan with the department every 2 years.
SECTION 80. Section 17B of
chapter 271 of the General Laws, as appearing in the 2006 Official Edition, is
hereby amended by striking out, in lines 4 and 5, the words “energy, as defined
in paragraph (d) of section twelve of chapter one hundred and fifty-nine” and
inserting in place thereof the following words:- cable or the department
of public utilities.
SECTION 81. Section 22 of
chapter 140 of the acts of 2005 is hereby amended by striking out the words
“11C of chapter 25” and inserting in place thereof the following words:- 11I of chapter 25A.
SECTION 82. Section 23 of said
chapter 140 is hereby amended by striking out the words “11C of chapter 25” and
inserting in place thereof the following words:- 11I
of chapter 25A.
SECTION 83. Commencing on
For purposes
of this section, a long-term contract is defined as a contract with a term of
10 to 15 years. In developing the provisions of proposed long term
contracts, the distribution company shall consider multiple contracting
methods, including long-term contracts for renewable energy certificates,
hereinafter referred to as RECs, for energy, and for a combination of both RECs
and energy. The electric distribution company shall select a reasonable
method of soliciting proposals from renewable energy developers, which may
include public solicitations, individual negotiations or other methods. The
distribution company may decline to consider contract proposals having terms
and conditions that it determines would require the contract obligation to
place an unreasonable burden on the distribution company’s balance sheet.
The distribution company shall consult with the department of energy resources
regarding its choice of contracting methods and solicitation methods. All
proposed contracts shall be subject to the review and approval of the
department of public utilities.
The department
of public utilities and the department of energy resources each shall adopt
regulations consistent with this section. The regulations shall: (a)
allow renewable energy developers to submit proposals for long-term contracts
conforming to the contracting methods specified in the second paragraph; (b)
require that contracts executed by the distribution company under such
proposals are filed with, and approved by, the department of public utilities
before they become effective; (c) provide for an annual remuneration for the
contracting distribution company equal to 4 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; and (d)
require that the renewable energy generating source to be used by a developer
under the proposal meet the following criteria: (1) have a commercial operation
date, as verified by the department of energy resources, on or after January 1,
2008; (2) be qualified by the department of energy resources as eligible to
participate in the RPS program, under said section 11F of chapter 25A, and to
sell RECs under the program; and (3) be determined by the department of public
utilities to: (i) provide enhanced electricity reliability within the
commonwealth; (ii) contribute to moderating system peak load requirements;
(iii) be cost effective to Massachusetts electric ratepayers over the term of
the contract; and (iv) where feasible, create additional employment in the
commonwealth. As part of its approval process, the department of public
utilities shall consider the attorney general’s recommendations, which shall be
submitted to the department of public utilities within 45 days following the
filing of such contracts with the department of public utilities. The
department of public utilities shall take into consideration both the potential
costs and benefits of such contracts, and shall approve a contract only upon a
finding that it is a cost effective mechanism for procuring renewable energy on
a long-term basis.
Distribution
companies shall not be obligated to enter into long-term contracts under this
section that would, in the aggregate, exceed 3 per cent of the total energy
demand from all distribution customers in the service territory of the
distribution company. As long as the electric distribution company
has entered into long term contracts in compliance with this section, it shall
not be required by regulation or order to enter into contracts with terms of
more than 3 years in meeting its applicable annual RPS requirements set forth
in said section 11F of said chapter 25A, unless the department of public
utilities finds that such contracts are in the best interest of customers;
provided, however, that the electric distribution company may execute such
contracts voluntarily, subject to the department of public utilities’ approval.
An electric
distribution company may elect to use any energy purchased under such contracts
for resale to its customers, and may elect to retain RECs for the purpose of
meeting the applicable annual RPS requirements set forth in said section 11F of
said chapter 25A. If the energy and RECs are not so used, such companies
shall sell such purchased energy into the wholesale spot market and shall sell
such purchased RECs through a competitive bid process. Notwithstanding
the foregoing, the department of energy resources shall conduct periodic
reviews to determine the impact on the energy and REC markets of the
disposition of energy and RECs hereunder, and may issue reports recommending
legislative changes if it determines that actions are being taken that will
adversely affect the energy and REC markets.
If the
distribution company sells the purchased energy into the wholesale spot market
and auctions the RECs as described in the fifth paragraph, the
distribution company shall net the cost of payments made to projects under the
long-term contracts against the proceeds obtained from the sale of energy and
RECs, and the difference shall be credited or charged to all distribution
customers through a uniform fully reconciling annual factor in distribution
rates, subject to review and approval of the department of public
utilities. The reconciliation process shall be designed so that the
distribution company recovers all costs incurred under such contracts.
If the RPS
requirements of said section 11F of said chapter 25A should ever terminate, the
obligation to continue periodic solicitations to enter into long term contracts
shall cease, but contracts already executed and approved by the department of
public utilities shall remain in full force and effect.
On or before
The provisions
of this section shall not limit consideration of other contracts for RECs or
power submitted by a distribution company for review and approval by the
department of public utilities.
If any
provision of this section is subject to a judicial challenge, the department of
public utilities may suspend the applicability of the challenged provision
during the pendency of the judicial action until final resolution of the
challenge and any appeals, and shall issue such orders and take such other
actions as are necessary to ensure that the provisions that are not challenged
are implemented expeditiously to achieve the public purposes of this provision.
SECTION 84. The secretary of
energy and environmental affairs shall, in conjunction with the department of
public utilities, implement an “energy pay and save”, hereinafter referred to
as EPS, pilot program, allowing electric utility customers to purchase and
install energy efficient or renewable energy products in their residences or
commercial facilities by paying the cost of the system over time through an
additional charge on the customer's electricity bill. The cost of the products
purchased under the pilot program shall be added to the electric utility
customer’s utility bills in a form approved by the department, as a monthly EPS
tariff, and shall be paid until the cost of purchase and installation of the
products is paid off. The payment structure shall be implemented so that the
charge on the electric utility customer’s utility bill shall be less than that
customer’s energy savings over the course of each given year. Non-payment by
the owner of the EPS tariff shall result in disconnection and a utility shall
be entitled to recover the debt.
The pilot
program shall be established with a minimum of 50 participants and a maximum of
200 participants. The maximum project size for the program shall be $1,000 for
commercial utility customers and $500 for residential utility customers.
Portable electrical cost measures shall not be funded. Quick pay options shall
be investigated, allowing customers to have the option to pay off the entire
balance of the amount financed on the first billing cycle. The program shall be
funded from such sources as determined by the secretary of energy and
environmental affairs and such funds shall be used to offset the cost of the
program for the utilities, and as such payments for the purchases are paid to
said utilities.
The pilot
program shall be implemented on or before
SECTION 85. On or before
SECTION 86. The department of
public utilities shall direct all distribution companies, as defined in section
1F of chapter 164 of the General Laws, to submit a plan within 60 days of the
effective date of this act providing for retail access to competitive sellers
of renewable energy generation attributes, whether or not bundled with
electricity. The department shall approve or modify such plan after
an opportunity for notice and comment by all interested persons and shall
ensure that such plan does not provide distribution companies with a market advantage
over competitive suppliers of renewable energy generation attributes; provided,
however, that if a distribution company provides retail access to competitive
sellers of renewable energy generation attributes before the effective date of
this act, it shall not be required to file a plan under this section.
SECTION 87. There is hereby
established a special commission to consist of 3 members of the senate, 1 of whom shall be the senate chair for the
joint committee on telecommunications, utilities and energy who shall serve as
co-chair, and 1 of whom shall be appointed by the senate minority leader; 3
members of the house of representatives, 1 of whom shall be the house chair for
the joint committee on telecommunications, utilities and energy who shall serve
as co-chair, and 1 of whom shall be appointed by the house minority leader; the
commissioner of energy resources or a designee; the secretary of energy and
environmental affairs or a designee; and 3 persons to be appointed by the
governor, 1 of whom shall be a representative of the waste-to-energy industry,
and 1 of whom shall be a representative of a consumer advocacy organization,
for the purpose of making an investigation and study relative to the burning of
construction and demolition waste as it relates to the renewable energy
portfolio standard program established by section 11F of chapter 25A of the
General Laws. The commission shall
report the results of its investigation and study and its recommendations, if
any, together with drafts of legislation necessary to carry its recommendations
into effect by filing the same with the clerks of the senate and the house of representatives on or before
SECTION 88. There shall be a
green building plan commission to examine the environmental and economic impact
of establishing a green building plan for the commonwealth. The members
of the commission shall be as follows: the commissioner of energy
resources or a designee; the director of housing and community development or a
designee; the secretary of environmental affairs or a designee; the secretary
of administration and finance or a designee; 2 members of the senate, 1 of whom
shall be appointed by the senate minority leader; 2 members of the house of
representatives, 1 of whom shall be appointed by the house minority leader; the
lieutenant governor or a designee, who shall be the chair of the commission; 1
person to be appointed by the Worcester Polytechnic Institute; 1 person to be
appointed by the chancellor of the University of Massachusetts at Lowell; 1
person to be appointed by the president of the Massachusetts Institute of
Technology; the director of the Massachusetts Technology Collaborative or a
designee; 1 person to be appointed by the commissioner of the revenue; 1 person
appointed by the Massachusetts Municipal Association; and a representative of
the Boston Society of Architects. The chair shall have no vote except in
the event of a tie vote. The commission shall file a report of its
findings with the clerks of the senate and house of
representatives not later than
SECTION 89. There shall be a
commission which shall study the siting of energy facilities in the
commonwealth. The study shall include,
but not be limited to, the following: (a) the development of a procedure for
coordinating and consolidating applications to construct generating facilities
between and among the energy facilities siting board, the department of
environmental protection and other appropriate agencies, to enable one-stop
shopping for necessary permits or certificates or other appropriate
streamlining of the permitting system; (b) the expansion of such coordinated
procedures to other energy facilities, if appropriate; (c) possible changes to
the energy facilities siting board's procedures for reviewing electric and gas
transmission lines in light of recent and proposed changes in the structure and
regulation of the electric and gas industries, including regional approaches to
the siting of such facilities; (d) clarification of the energy facilities
siting board’s jurisdiction over the re-powering of existing generating
facilities at existing sites and the appropriate standards for reviewing such
re-powerings; (e) the development of coordinated procedures to examine the
reuse of existing industrial sites for the development of generating
facilities; (f) the issue of application fees paid by developers to the energy
facilities siting board and the correlation of such fees to the board's
procedures, as statutorily revised under this act, in reviewing such
applications; provided, however, that the study shall include, but not be
limited to, recommendations, if any, on reducing the application fee paid by
developers to the board in light of the board's statutorily revised standards
of review of such applications under this act; (g) the establishment of a site
characterization and suitability commission within the department of
environmental protection, which would promulgate criteria to be applied to
sites included in an application before the energy facilities siting board and
rule on suitability of a proposed site as before the application is approved;
and (h) the possibility of requiring applicants to provide either (1) evidence
that the proposed facility would employ the best available and most efficient
technology to control and reduce water withdrawals, or (2) a description of the
environmental impacts, costs and reliability of the water withdrawal method
chosen and an explanation of why the proposed technology was chosen; (i)
whether current laws and regulations do not adequately facilitate the siting of
renewable and alternative energy facilities, or whether they make it more
difficult to site renewable energy facilities than fossil-fueled energy
facilities, and, if either is the case, to make recommendations for changes to
such laws and regulations; and (j) whether renewable and alternative energy
generating facilities other than a waste-to-energy facility should be allowed
as of right on property zoned for industrial use.
The commission
shall consist of the secretary of energy and environmental affairs or a
designee, who shall be the chair of the commission; the secretary of
housing and economic development or a designee; the commissioner of energy
resources or a designee; the commissioner of environmental protection or a
designee; the commissioner of conservation and recreation or a designee; the
director of coastal zone management or a designee; the director of the
department of fish and game or a designee; 1 member of the energy facilities
siting board; 3 members of the house of representatives, 1 of whom shall be
appointed by the house minority leader; 3 members of the senate, 1 of whom
shall be appointed by the senate minority leader; 1 representative of the gas
industry; and 2 representatives of ratepayers, 1 of whom shall be appointed by
the speaker of the house and 1 of whom shall be appointed by the senate
president; and the following members who shall be appointed by the chair of the
commission: 1 municipal official to be nominated by the Massachusetts
Municipal Association; 2 representatives of environmental organizations, 1 of
which shall be a land and water conservation organization; 2 representatives of
the alternative and renewable energy industry; 1 representative of the
electric industry; and 2 representatives to be nominated by the
SECTION 90. The department of
energy resources shall establish a pilot program to assist consumers with the
purchase of energy efficient items for residential home modifications,
hereinafter referred to as the HEAT Loan Program. For the purposes of
this program, energy efficient items shall include home insulation, new window
installation, advanced programmable thermostats, micro-combined heat and power
systems, fuel efficient furnaces, boilers, oil, gas, propane, or electric
heating systems; solar, domestic or fuel efficient hot water systems; materials
for insulation or sealing of a duct, attic, basement, rim joint or wall; pipe
insulation for heating systems; or other retail items for use in a residential
dwelling that increase the energy efficiency of the dwelling. In establishing
the program, the department shall develop a list of qualified state or
federally chartered banking institutions or credit unions that do business in
the commonwealth and that are governed by chapter 167 or 171 of the General
Laws as participatory lending institutions. For the purposes of this section, a
qualified lending institution shall include a lending institution that is
certified by the executive office of energy and environmental affairs and which
shall offer zero and low interest loans for the purpose of enhancing the energy
efficiency of a residential dwelling. The program shall be funded from that
portion of the mandatory charge that is authorized by section 19 of chapter 25
of the General Laws and allocated to residential customers. Not less than $5 million shall be made available
to assist participating financial institutions in offering these loan products
by or through interest rate write downs or other credit enhancement features.
Loans offered under the program shall be offered to residential homeowners in
the commonwealth solely for the purposes stated in this section.
The department
shall make such loans available for purchases made on or after
SECTION 91. On or before
SECTION 92. The department of
public utilities shall hold a public hearing and issue a report, not later than
The department
of public utilities shall hold a public hearing and issue a report, not later
than
SECTION 93. Notwithstanding
any general or special law to the contrary, the department of energy resources
shall make available monies from amounts collected through Alternative
Compliance Payments established and administered under 225 CMR 14.00 adopted
under section 11F of chapter 25A of the General Laws, in the form of
grants or other financial incentives for the following: (a) the green
communities program established under section 10 of said chapter 25A; (b) state
or community colleges in the commonwealth engaged in developing renewable
energy generation projects, energy generation demonstration and educational
programs, or applied engineering teaching tools pertaining to energy
generation; (c) commonwealth-based companies engaged in developing flywheel
energy storage technologies; and (d) funding capital investments in new and
existing generation units for the use of department of environmental protection
approved beneficial use determination paper derived fuels manufactured by
Massachusetts corporations.
SECTION 94. The department of
public utilities, in consultation with the department of energy resources,
shall review and assess the effects of allowing electric and distribution
companies to construct, own or operate solar generation facilities under subsection
(f) of section 1A of chapter 164 of the General Laws. This report shall
be completed and filed with the joint committee on telecommunications,
utilities and energy, and the house and senate committees on ways and means,
and the clerks of the senate and house of representatives not later than
SECTION 95. The merger or
consolidation of holding companies under section 96 of chapter 164 of the
General Laws that has been filed and approved by the Federal Energy Regulatory
Commission before the effective date of this act shall not be subject to the
requirements of said section 96 of said chapter 164.
SECTION 96. The department of
energy resources, in consultation with the division of capital asset management
and maintenance, shall establish, not later than
SECTION 97. On or before
SECTION 98. Not later than
SECTION 99. The Massachusetts
Turnpike Authority shall develop a plan, in consultation with the executive
office of transportation and the executive office of energy and environmental
affairs, for the availability of alternative fuel at each fueling facility or
service terminal on the Massachusetts Turnpike. The plan shall provide for the
availability of alternative fuel at such locations not later than
SECTION 100. (a) The
commissioner of energy resources, in consultation with the secretary of
administration and finance, the secretary of transportation, the general
manager of the Massachusetts Bay Transportation Authority, a representative of
the regional transit authorities, the secretary of economic affairs, the
secretary of energy and environmental affairs and the operation services
division, shall develop a statewide master plan for the advancement of hybrid
and alternative fuel vehicles, as defined in section 1 of chapter 90 of the
General Laws, and related technology.
(b) The
plan shall encompass a 10-year period, beginning in 2010, and shall be
divisible in increments of not less than 5 years. The plan shall take into
account the geographic diversity of the commonwealth, its present and projected
demographics, present and projected transportation needs and infrastructure,
and current, emerging and foreseeable alternative fuel and vehicle
technologies, and may establish goals for areas such as the purchase and use of
hybrid and alternative fuel vehicles, as well as the production, import action
or distribution of alternative fuels.
(c) The
plan shall identify strategies and corresponding methods of achieving its identified
goals together with necessary administration and legislative actions. The plan
shall be filed with the clerks of the senate and house of
representatives not later than 18 months after the effective date of
this act.
SECTION 101. The operational
services division, in consultation with the executive office of transportation,
the secretary of administration and finance, the department of energy
resources, the Massachusetts Bay Transportation Authority and regional transit
authorities, shall study the feasibility of developing and implementing a
system to facilitate the bulk purchase of alternative fuel vehicles by the
commonwealth and its political subdivisions. The study shall include, but shall
not be limited to, the potential cost savings to be derived from such a system,
the cost of the system administration, appropriate purchasers to participate in
the system and the probability of utilization of the system by such purchasers.
The
operational services division shall file its findings of the study, and its
recommendations, if any, together with drafts of legislation necessary to carry
such recommendations into effect, with the clerks of the senate and house of representatives not later then 1 year after the
effective date of this act.
SECTION 102. The department of
public utilities, in consultation with the department of energy resources,
shall hold a public hearing to examine the impacts on the competitive retail
electricity marketplace through the existing electric utility default service
adjustment mechanism. This public hearing shall include an examination of
all costs that are recovered from ratepayers through this charge and
recommended changes to insure that appropriate price signals are sent to the
marketplace in order for customers to make informed decisions about their
energy consumption based on price. The department of public utilities shall
hold the public hearing not later than
SECTION 103. Each electric
distribution company under section 1D of chapter 164 of the General Laws shall
file a compliance plan, complete with an effective date, indicating its
compliance with the last paragraph of said section 1D of said chapter 164
within 3 months after the effective date of this act.
SECTION 104. The first report
required to be filed by the division of green communities under subsection (f)
of section 10 of chapter 25A shall be filed with the clerks of the senate and
the house of representatives, the joint committee on telecommunications,
utilities, and energy, and the senate and the house committees on ways and
means not later than
SECTION 105. (a) For the
purposes of this section, the following words shall, unless the context clearly
requires otherwise, have the following meanings:-
“Department”, the department of energy resources.
“Generator”,
the person that owns, directly or indirectly, as determined by the department,
the output from the renewable energy generating source that is located in the
“Person”, an
individual, corporation, limited liability company, general or limited
partnership, trust, association or other entity, or an agent of such person.
(b) A
renewable energy generating source, as defined in subsection (b) of section 11F
of chapter 25A of the General Laws, that is physically located in or relocated
to a control area adjacent to the
(c) The
delivery of renewable energy into the
(d) During
any period in which the generator is delivering renewable energy from the
renewable energy generating source into the
(e) The
renewable portfolio standard credit applicable to the eligible renewable energy
as determined under subsection (d) shall be reduced by any exports of energy
from the
(f) The
department may adopt regulations and requirements to implement this section.
(g) The
department shall assess the feasibility of implementing subsections (c) and (e)
and report its findings along with proposed regulations for implementing these
subsections in accordance with section 12 of chapter 25A, on or before
(h) Subsections
(c) and (e) shall take effect, subject to the provisions of section 12 of
chapter 25A, after the report required under subsection (g) has been filed if
the department has determined that it is feasible to implement these
subsections.
SECTION 106. The department of
housing and community development shall make recommendations regarding what
supplemental state funds, if any, shall be expended for the federal Low Income
Home Energy Assistance Program, under 42 U.S.C. § 8621 et seq., for the purpose
of assisting low-income elders, working families and other households with the
purchase of heating oil, propane, natural gas, electricity and other primary or
secondary heating sources; provided, however, that any recommended expenditures
in addition to any federal funding shall be made in accordance with the state
plan submitted by the department of housing and community development in
accordance with the federal program. The recommendations shall include
recommended funding levels and funding sources. The department of housing and
community development shall submit its first report on its recommendations to
the joint committee on telecommunications, utilities and energy not later than
SECTION 107. The department of
energy resources shall conduct a study of the fiscal impact, viability,
statutory and regulatory barriers and long-term results of establishing and
operating municipal-owned electric utilities in the commonwealth. The
study shall: (a) address any existing inequities or other barriers preventing
the establishment of municipal-owned electric utilities in current statutes or
regulations; (b) provide a financial overview of the purchase of an investor
owned utility’s assets by a municipality; and (c) include a review of the
impact on: reliability; investor owned utility operations; municipal taxes;
rates for both distribution company customers and municipal customers; lost
revenues for investor owned utilities; effect on energy efficiency programs; the impact on capital borrowing; and
impact on low-income customers.
There shall be
a commission that shall advise the commissioner of energy resources with
respect to this study. The commission shall be comprised of the commissioner or
a designee who shall serve as chair, and 11 other members as follows: 4 of whom
shall be appointed by the executive director of the Massachusetts Municipal
Association, 3 of whom shall be from municipalities that are interested in
establishing a municipal electric utility; 1 of whom shall be appointed by the
attorney general and who shall be from the office of the attorney
general; 1 of whom shall be appointed by the commissioner of the department
of public utilities and who shall be from the department of public utilities; 1
of whom shall be a municipal finance expert recommended by the Massachusetts
Taxpayers Foundation; 1 of whom shall be a representative of the Utility
Workers of America; and 2 of whom shall be representatives to be appointed on a
voluntary basis by the commissioner, 1 of whom shall be an executive from an
investor-owned utility and the other of whom shall be an executive of an
existing municipal electric utility. The department of energy resources shall
submit the study to the joint committee on telecommunications, utilities and
energy not later than
SECTION 108. (a) On or before
(b) The
content of such courses shall include, but not be limited to, the following:
(1) the need for broad public-private collaboration to achieve
the acceleration of customer-orientated energy efficiency and conservation
programs;
(2) a short-term concentration on retrofitting existing energy
control systems to achieve significant energy and financial savings as well
recent advancements in this technology;
(3) the basic principles of personal financial accounting to
demonstrate that capital investment should achieve the savings identified in
clause (2);
(4) the
demonstration of the major cost savings of instituting energy efficiency and
conservation programs, including demand side management planning, as compared
with the costs of purchasing energy;
(5) existing programs available through public utilities,
municipal lighting departments, municipal aggregators and other entities to
assist customers with their energy reduction, including any prospective
expansion thereof;
(6) the
benefits to all energy users resulting from the reduction by individual users
of their energy consumption, which reduces the burden on public utilities to
procure increasing amounts of energy overall and at moments of peak usage; and
(7) any additional benefits as energy usage becomes more
sustainable in the commonwealth.
(c) In
preparing and revising the syllabus for such courses, the
(d) The
department of energy resources shall issue a report detailing the progress of
the pilot program to the clerks of the senate and the house representatives,
the joint committee on telecommunications, utilities and energy, and the senate
and house committee on ways and means, on or before
SECTION 109. Notwithstanding
any general or special law to the contrary, the department of public utilities
shall open an investigation and study relative to off-the-record ex-parte
communications in any contested, on-the-record proceeding before the
department. The department shall report
to the general court the results of its investigation and study and its
recommendations, if any, together with drafts of legislation necessary to carry
its recommendations into effect, by filing the same with the clerks of the
senate and the house of representatives who shall forward the same to the
chairs of the joint committee on telecommunications, utilities and energy on or
before
SECTION 110. Notwithstanding
subsection (c) of section 19 of chapter 25 of the General Laws, for 3 years
after the expiration of each electric or gas company efficiency plan or agreement
in place as of
SECTION 111. The first plans
required under section 21 of chapter 25 of the General Laws shall be prepared
and submitted to the energy efficiency advisory council on or before Apri1 30,
2009. The electric and natural gas distribution companies and municipal
aggregators shall submit these plans, together with the energy efficiency
advisory council’s approval or comments and a statement of any unresolved
issues, to the department of public utilities on or before
SECTION 112. Not later than
SECTION 113. Clause (i) of
paragraph (1) of subsection (c) of section 22 of chapter 21A of the General
Laws shall not impact any enforceable multiyear agreements effective during the
period from
SECTION 114. Said clause (i) of
said paragraph (1) of said subsection (c) of said section 22 of said chapter
21A shall be effective for tax years beginning on or after
SECTION 115. Notwithstanding
paragraph (2) of subsection (c) of section 22 of chapter 21A of the General
Laws, the department of environmental protection may withhold from auction such
allowances of vintage years 2009 to 2012, inclusive, as may be necessary to
provide a transition to the Regional Greenhouse Gas Initiative from the program
established under 310 CMR 7.29.
SECTION 116. (a) It is hereby
established that the commonwealth’s renewable and alternative energy and energy
efficiency goals are as follows:-
(1) meet
at least 25 per cent of the commonwealth’s electric load, including both
capacity and energy, by the year 2020 with demand side resources
including: energy efficiency, load management, demand response and
generation that is located behind a customer’s meter including a combined heat
and power system with an annual efficiency of 60 per cent or greater with the
goal of 80 per cent annual efficiency for combined heat and power systems by
2020;
(2) meet at least 20 per cent of the commonwealth’s electric
load by the year 2020 through new, renewable and alternative energy generation;
(3) reduce
the use of fossil fuel in buildings by 10 per cent from 2007 levels by the year
2020 through the increased efficiency of both equipment and the building
envelope;
(4) develop a plan to reduce total energy consumption in the
commonwealth by at least 10 per cent by 2017 through the development and
implementation of the green communities program, established by section 10 of
chapter 25A of the General Laws, that utilizes renewable energy, demand
reduction, conservation and energy efficiency. Not later than September 1 of each year, the secretary of energy and environmental affairs shall
establish an annual reduction target for the commonwealth for the following
calendar year.
(b) The
secretary of energy and environmental affairs shall prepare, with the
assistance of the energy advisory board established under subsection (c), a
5-year plan for meeting the renewable and alternative energy and energy
efficiency goals of the commonwealth. The plan shall include strategies
to meet each of the goals and shall also address the following topics:
(1) reduction of energy use in state buildings;
(2) reduction of energy use in municipal buildings;
(3) equitable distribution of program benefits to all customers
and particularly low income customers to address the affordability and adverse
impacts on low-income households of energy costs and demand mitigation
strategies, and mitigation of such adverse impacts, such as by compensating
adjustments to the low-income rate discount;
(4) the use of investment tax credits and tax policy generally
to encourage investment in energy efficiency and renewable and alternative
technologies;
(5) increased generation and use of renewable and alternative
energy;
(6) the coordination and integration of programs within the
commonwealth and with regional efforts carried out by other
(7) progress towards improving the efficiency of buildings and
mechanical systems on an all-fuels basis including, electric, gas and oil.
(c) The
secretary of energy and environmental affairs shall appoint an advisory board
to assist in the development and review of the plan. The board shall
meet at the call of the secretary. The
secretary shall submit the plan to the speaker of the house
of representatives, the president of the senate, the senate and house
committees on ways and means, and the joint committee on telecommunications,
utilities and energy.
(d) The
5-year plan shall designate the agency responsible for implementation of each
strategy and shall include timelines, performance standards, specific
regulatory or legislative changes, evaluation procedures and additional budget
requirements.
SECTION 117. Section 21 of
chapter 21A of the General Laws shall take effect on
SECTION 118. Subsections (c),
(d) and (e) of section 11F of chapter 25A of the General Laws shall take effect
on
SECTION 119. Subsection (a) of
section 11F1/2 of chapter 25A of the General Laws shall take effect on
SECTION 120. Subsection (o) of
chapter 143 of the General Laws shall take effect 6 months after the effective
date of this act.
SECTION 121. Section 5 shall
take effect 1 year after the effective date of this act.
SECTION 122. Section 59 shall
take effect on
SECTION 123. Section 53 shall
take effect 3 years after the effective date of this act
SECTION 124. Section 80 shall
take effect on April 10, 2007.
Approved July 2, 2008.