{"AmendmentNumber":"45","ParentBillNumber":"H5151","Bill":null,"Sponsor":{"Id":"MJS3","Name":"Michael J. Soter","Type":1,"Details":"https://malegislature.gov/api/GeneralCourts/194/LegislativeMembers/MJS3","ResponseDate":"2026-02-25T10:48:33.47"},"Category":null,"Action":"Consolidated","RollCall":[],"Title":"Security for Massachusetts Financial Investments in Advanced Energy","Branch":"House","RedraftNumber":null,"IsFurther":false,"GeneralCourtNumber":194,"Text":"Mr. Soter of Bellingham moves to amend the bill by adding the following section:\r\n“SECTION XXX (a) PURPOSE —The purpose of this section is to incentivize the research, development, and manufacturing of advanced energy technologies—including fusion energy and advanced nuclear technologies—within the Commonwealth; to ensure a fair return on public investment for Massachusetts taxpayers; and to prevent the relocation of state-funded technological achievements to other jurisdictions.\r\n(b) For the purposes of this section:\r\nADVANCED ENERGY TECHNOLOGY shall mean technologies including, but not limited to, fusion energy research, pilot plant design, and advanced nuclear reactor development.\r\nCOVERED ENTITY shall mean a private entity, a nonprofit entity, or a consortium thereof, based in the Commonwealth, that is carrying out a project for the development or manufacturing of advanced energy technologies.\r\nSIGNIFICANT TRANSACTION shall include any material expansion of manufacturing capacity or physical relocation of primary research and development facilities outside the borders of the Commonwealth of Massachusetts.\r\nHOST MUNICIPALITY shall mean any city or town within the Commonwealth in which a covered entity receiving assistance under this section maintains physical facilities, manufacturing operations, or research infrastructure\r\n(c) There is hereby established a fund to provide financial assistance to covered entities to incentivize investment in facilities and equipment in Massachusetts for advanced energy technologies. The fund shall be administered by the Massachusetts Executive Office of Energy and Environmental Affairs in coordination with the Executive Office of Economic Development and, where applicable, in consultation with affected host municipalities. The fund shall consist of: Appropriations made by the general court, Bond proceeds, Federal grants, Returns on investment, and Dividends, royalty payments, and proceeds from equity dispositions. The Fund shall be a revolving fund. Returns generated shall remain within the Fund for reinvestment; provided, however, that allocations shall be made as follows: (1) Not less than ten percent of annual net revenue realized by the Fund from returns on investments, dividends, royalty payments, revenue participation agreements, or equity dispositions shall be distributed to host municipalities for mitigation purposes directly associated with the siting, operation, public safety impacts, infrastructure demands, or environmental effects of facilities supported under this section. The Secretary shall administer such distributions in coordination with the applicable host municipality; (2) Not less than five percent of annual net revenue realized by the Fund shall be deposited into a restricted decommissioning reserve account to be used exclusively for the safe closure, environmental remediation, and long-term site stabilization of any facility supported under this section that ceases operations. Funds in the decommissioning reserve shall not revert to the General Fund and shall remain available until expended for such purposes.\r\n(d) In carrying out the responsibilities of this section, the Secretary of Energy and Environmental Affairs may enter into agreements, including contracts, grants, and other transactions as may be necessary and on such terms as the Secretary considers appropriate. The Secretary is also authorized to structure financial assistance as initial grants or loans that may be repurposed and converted into primary shares of common stock. As a condition of any investment exceeding $5,000,000, the Commonwealth, through the Secretary, shall negotiate and obtain one or more of the following: An equity interest not exceeding 20% in the strategic energy company, Warrants to purchase equity at a future date, Revenue participation agreements, Royalties tied to commercial deployment of technology, or Convertible debt instruments. Any equity stake held by the Commonwealth shall be passive ownership, meaning a position with no board representation, information rights, or governance rights. Equity acquired under this section shall be held in trust for the benefit of the Commonwealth.\r\n(f) No financial assistance, loan, or grant may be provided under this section unless the Secretary determines that: (1) The covered entity has a reasonable prospect of fulfilling its contractual obligations; (2) Adequate provision is made for protecting the financial interest of the Commonwealth, including the potential for a direct rate of return on future profits or entity valuation; (3) The assistance is necessary to advance the economic and energy security interests of Massachusetts.\r\n(g)\t(1) The recipient company shall commit to maintaining its principal research, manufacturing, or commercial deployment operations within the Commonwealth for 15 years. On or before the date of an award, the covered entity shall enter into a 15-year agreement with the Secretary specifying that the entity may not engage in any significant transaction involving the material expansion of its manufacturing or primary research capacity outside of Massachusetts without the express written consent of the Secretary.\r\n(2) If the Secretary determines that a covered entity has planned or executed a relocation to another jurisdiction in violation of the agreement, and the entity fails to remedy the violation within 45 days, the Commonwealth, through the Secretary may: Require repayment of grants in full, Accelerate repayment of loans, Redeem or liquidate equity, or Impose a financial penalty not to exceed 150% of state investment. The Attorney General shall have the authority to enforce this section.\r\n(3) The Secretary may negotiate and enforce conditions for mitigation, or waive recovery, if the entity agrees to alternative measures that protect the Commonwealth’s technological leadership, such as increased equity positions or additional warrants held by the state.\r\n(h) A covered entity receiving state funds or participating in an equity-sharing agreement under this section may not use state-provided amounts to purchase an equity security (stock buybacks) or to pay dividends or other capital distributions to shareholders.\r\n(i) Not later than 4 years after the first disbursement of funds under this section, the State Auditor shall conduct an audit of the program to assess whether recipients have met their commitments to Massachusetts workers and whether relocation/expansion agreements have been strictly enforced. This report shall be submitted to the General Court and should detail: Investments made, Equity positions held, Returns generated, Jobs created and retained, and Compliance with in-state commitments.\r\n(j) Nothing in this section shall be construed to limit, preempt, or otherwise impair the authority of any municipality to levy property taxes, impose local fees, enforce zoning and land-use regulations, conduct inspections, or exercise any other lawful oversight authority otherwise available under state or local law.\r\n\r\n"}