House Passes Critical Energy Reforms to Meet 2050 Net Zero Climate Goals
July 17, 2024The Massachusetts House of Representatives today passed legislation aimed at increasing the Commonwealth’s supply of clean energy by setting new renewable energy generation storage procurement targets, and by streamlining the state and local permitting process.
An Act accelerating a responsible, innovative and equitable clean energy transition overhauls outdated siting, permitting, and interconnection processes to empower the Commonwealth to deploy clean energy projects and infrastructure to meet its net-zero goals and create better outcomes for communities, clean energy companies, and utilities. It further harnesses innovative technologies to power our green transition such as advanced metering, fusion energy, battery storage, grid-enhancing technologies and the buildout of fast-charging infrastructure and meter socket adapters to support widescale adoption of electric vehicles and heat pumps. This involves generating and procuring more clean power, solving interconnection issues, and incentivizing consumers and businesses to adopt green technologies.
“This legislation represents the House’s fervent, continued commitment to meeting Massachusetts’ long-term emission reduction targets, as it builds on the work that the Legislature has already done to modernize the Commonwealth’s energy grid, increase clean energy generation, and to combat the climate crisis,” said House Speaker Ronald J. Mariano (D-Quincy). “I want to thank Chairman Roy for his tireless work on this issue, as well as all my colleagues in the House for recognizing the importance of transitioning the Commonwealth’s energy grid away from fossil fuels over time.”
"The legislation passed by the House today is a historic and necessary step forward for the Commonwealth at this juncture in our energy transition," said Representative Jeffrey N. Roy (D-Franklin), House Chair of the Joint Committee on Telecommunications, Utilities and Energy. "Reforming the siting and permitting process will allow for the swift development of the clean energy generation we need to reach our climate goals, and the rapid build-out of the transmission infrastructure that will power our electrified clean energy future. Setting procurement targets for clean energy and energy storage and incentivizing the adoption of innovative climate technologies will ensure that the buildout of our clean energy infrastructure is accomplished efficiently and equitably, and is supportive of consumers and ratepayers."
Siting and Permitting Reform
The bill streamlines the permitting process for small clean energy projects under 25 megawatts (MW) and small energy storage systems under 100 megawatt-hours (MWh) by allowing project developers to submit a permit application seeking a single permit that consolidates all necessary local permits and approvals. Municipalities would retain permitting authority over these projects and would be required to issue a single, final decision within 12 months of the receipt of a complete permit application.
The bill also allows the Energy Facilities Siting Board (EFSB) to issue consolidated permits for large clean energy generation facilities over 25 MW and large energy storage facilities and requires the EFSB to establish criteria governing siting and permitting. It would further allow the EFSB to issue a consolidated permit for a small clean transmission and distribution infrastructure facility, small clean energy generation, and small clean energy storage facilities.
The legislation includes numerous provisions to provide resources and technical support to municipalities to facilitate this transition. It establishes parameters for the Massachusetts Department of Energy Resources (DOER) to create statewide standards pertaining to local siting, review, and permitting of clean energy infrastructure. It further establishes a Department of Public Utilities (DPU) and Energy Facility Siting Board (EFSB) Intervenor Support Trust Fund that will provide financial support to parties that have been granted intervenor status by the DPU or EFSB, including governmental bodies, regional planning agencies, federally recognized tribes, state-acknowledged, or state-recognized tribes in permitting proceedings. The bill also:
- Establishes the Office of Environmental Justice and Equity and authorizes it to develop guidance for community benefit plans and agreements and to develop a cumulative impact analysis framework to inform the work of the EFSB
- Establishes the Division of Public Participation at the DPU which is tasked with helping stakeholders with business before the DPU/EFSB
- Requires public engagement as one of the uniform pre-filing engagement requirements that DOER is tasked with developing standards for
- Updates the composition of the EFSB by adding a municipal member, a representative of the Massachusetts Association of Regional Planning Agencies, and the Commissioner of Public Health and requires other public members to be experts in specific subject areas
Diversifying the Commonwealth’s Clean Energy Portfolio
This bill also mobilizes groundbreaking and innovative technologies that will power the Commonwealth’s green transition. This involves generating and procuring more clean power, solving interconnection issues, and incentivizing consumers and businesses to adopt green technologies.
The legislation calls for a new procurement of 9.45 million MWh of clean energy resources, including existing nuclear generation. This legislation also directs DOER to review the effectiveness of existing offshore wind solicitations and procurements in contributing to statewide emissions goals, and to provide the Legislature with any recommendations of changes that would improve the current process. Additionally, this legislation provides the offshore wind industry and clean energy industry overall with greater flexibility and lowers power costs for ratepayers by allowing developers to extend future contracts for up to 30 years instead of the 20-year maximum contract length currently allowed in Massachusetts.
This legislation supports the development and procurement of additional clean energy generation by authorizing the Secretary of the Executive Office of Energy and Environmental Affairs (EEA) to direct DOER to promulgate regulations establishing market-based mechanisms that will allow the Commonwealth to participate in regional or multi-state competitive solicitations. This adds another tool to the state’s toolbox, helping to procure more renewable generation to meet demand for increased electrification.
Building off past climate and energy legislation passed by the Legislature in 2021 and 2022, this bill requires the distribution companies, in coordination with DOER, to procure up to 5,000 MW of new and existing energy storage systems with specific MW requirements for mid-duration, long-duration, and multi-day energy storage systems. The bill also helps to dispel misinformation about battery storage safety risks by requiring state guidance on the public health, safety, and environmental impacts of electric battery storage.
Based on the recommendations of the Clean Energy Transmission Working Group, which noted that grid-enhancing technologies reduce congestion, this legislation provides for an efficient buildout of the transmission system by requiring that utilities consider the cost-effectiveness of deploying grid-enhancing technologies when proposing capital investments.
As demand on the electrical grid increases with the increased adoption of electric vehicles and heat pumps, the rollout of advanced metering infrastructure (AMI) – including smart meters, communications networks, and data management systems – will enable efficient grid management and improve resiliency. This legislation supports the rollout of these technologies by requiring utilities that are deploying AMI to jointly create a centralized data repository to provide access to detailed AMI customer data, subject to customer approval, and authorizing the DPU to provide cost recovery for utilities for necessary expenses incurred in AMI implementation. It maintains consumer protections by establishing an opt-out option for electric customers. These changes will help companies and individuals use the devices in their institution, place of business, or home more efficiently and provide real-time data to the grid, allowing for greater flexibility.
To help propel new sources of clean generation, this legislation adds fusion energy to the list of RPS Class I renewable energy generating sources. As fusion energy becomes commercially viable, Massachusetts will be strategically ahead by incorporating it into our renewable energy portfolio standard.
This bill also grants the DPU to establish criteria for a moderate-income discount rate in addition to the existing low-income discount rate. The bill directs the distribution companies to conduct substantial outreach efforts to make the low-income or moderate discount available to eligible customers and report to DOER annually on its outreach activities and results.
Supporting the growth and long-term success of the offshore wind industry in Massachusetts has been a key priority of the Legislature over the past few sessions, most notably through the 2022 climate law, An Act Driving Clean Energy and Offshore Wind, which created an Offshore Wind Industry Investment Trust Fund to support offshore wind research and development, innovation, manufacturing, commercialization, and deployment. The refundable offshore wind industry and capital investment tax credits are expanded in the legislation passed today in order to apply to offshore wind facility lessees that commit to the creation of 50 new full-time jobs, further spurring workforce development in the state’s growing offshore wind industry for small- and mid-sized employers, in addition to the large, 200-employee plus employers that were previously able to tax advantage of such tax credits.
Transportation Electrification & Building Decarbonization
The bill passed today also advances building decarbonization strategies, including by broadening the business portfolio of gas utility companies to become thermal energy companies as well, allowing them to provide heat to their customers through utility-scale, non-emitting thermal energy.
To help address the significant buildout of electric vehicle charging infrastructure needed to facilitate mass adoption of electric vehicles, the bill requires DOER, in consultation with the Massachusetts Department of Transportation (MassDOT) and other key stakeholders, to forecast electric vehicle charging demand through 2045 along highways and major roadways as well as service plazas and identify sites to create a statewide network of Fast Charging Hubs along Massachusetts highways and major roadways. It also places the Massachusetts Clean Energy Center (MassCEC) on the Electric Vehicle Interagency Coordinating Council to bring innovative strategies to spur electric vehicle growth.
The bill also authorizes utility customers to install meter socket adapters, a technology which can effectively manage increased load to allow customers to install electric vehicles chargers or heat pumps without triggering the need for expensive electrical upgrades.
Having been passed by the Senate, the bill now goes back for its further consideration.
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