Outside Section 10
(A) Section 1 of chapter 23J of the General Laws, as amended by sections 2 and 3 of chapter 158 of the acts of 2009, is hereby further amended by inserting after the definition of "Clean energy research" the following definition:-
"Commonwealth energy solutions division", the division established by section 12.
(B) Said section 1 of said chapter 23J, as so amended, is hereby further amended by inserting after the definition of "Director" the following 2 definitions:-
"Division director", the director appointed to head the commonwealth energy solutions division under section 12.
"Energy resources", electricity, natural gas, heating fuels, transportation fuels, demand response, efficiency, and energy management services as defined in section 3 of chapter 25A.
(C) Said section 1 of said chapter 23J, as so amended, is hereby further amended by inserting after the definition of "Fund" the following definition:-
"Local government body", a city, town, district, municipal aggregation as set forth in section 134 of chapter 164, 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.
(D) Said section 1 of said chapter 23J, as so amended, is hereby further amended by inserting after the definition of "Revenue" the following 2 definitions:-
"State energy resource contracts", contracts executed under section 12 by the division.
"State entities", state agencies, state authorities, and state higher education institutions.
(E) Said chapter 23J is hereby further amended by adding the following section:-
Section 12. (a) There shall be within the center a division to be known as the commonwealth energy solutions division. The division shall be headed by a division director who shall be appointed by the board and who shall be a person of skill and experience in the field of energy procurement. The division director shall serve at the pleasure of the board, and the board shall fix the division director's compensation and terms of employment. The division director shall devote full time during business hours to the duties of the office. The division director may, subject to the general supervision of the board, employ other employees, consultants, agents, and advisors, and shall attend meetings of the board.
(b) The division shall promote and advance the commonwealth's public interests by acting as the commonwealth's lead agency, in collaboration with the clean energy center, the executive office of energy and environmental affairs, the executive office of administration and finance, the operational services division, and the department of energy resources, to reduce energy costs and greenhouse gas emissions for all state entities by: (i) establishment of a state-wide procurement process for energy resources, consistent with the regulations of the operational services division; (ii) management of a state-wide energy monitoring and analysis system to optimize energy usage in state-owned facilities; and (iii) recommending energy-related capital investments. The division shall manage these duties so as to obtain adequate, reliable, efficient, environmentally sustainable, and cost-effective energy resources.
(c) There shall be an advisory committee consisting of 9 individuals with an interest in and knowledge of matters related to energy procurement. The board shall consult with the advisory committee in matters related to the division and in the implementation of this section. The advisory committee shall develop objectives and procurement strategies and recommend financial controls. The advisory committee shall include: the secretary of the executive office of administration and finance, who shall serve as chair; the secretary of the executive office of energy and environmental affairs; the commissioner of the department of energy resources; the commissioner of the operational services division; a member appointed by the secretary of administration and finance from a participating executive branch agency; 1 member appointed by the secretary of administration and finance representing participating state authorities; 1 member appointed by the secretary of administration and finance who is an expert on energy procurement ;1 representative appointed by the Massachusetts Municipal Association; and 1 member appointed by the secretary of energy and environmental affairs who is an expert on energy procurement. The members of the advisory committee 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 advisory committee may meet as often as the members shall decide, but it shall meet at least quarterly. A member of the advisory committee may appoint a designee to represent that member at any such meeting.
(d) All state entities shall procure energy resources from state energy resource contracts negotiated by the division and executed subject to this section unless granted a waiver by the division. Local governmental bodies shall have the option to procure energy resources from these state energy resource contracts by notifying the division in writing.
(e) The division, in consultation with the board and the advisory committee, shall establish procedures and criteria to enable each state entity, in consultation with the division, to evaluate the costs and benefits of any then current contractual obligations for energy resources applicable to that state entity. Following the termination date of these contracts, the state entity shall utilize the state energy resource contracts executed under this section unless granted a waiver by the division director. The director shall consult with the board or other applicable governing body of the state entity, and subject to criteria established under this subsection, may grant a waiver if the costs and benefits of maintaining separate procurements for the state entity provides the best value or is in the best interests of the entity. If a waiver is granted, the state entity may conduct separate procurements for these energy resources subject to all applicable procurement laws, regulations and policies of the commonwealth. Any entity procuring energy resources through a state energy resource contract shall execute all necessary contract documents to complete the procurement for the state entity.
(f) To increase efficiencies in conducting energy resource procurements for state entities and local governmental bodies, the division shall: (i) establish state-wide procurement for energy resources for such entities; (ii) register as a load-serving entity with ISO-NE to participate in wholesale electricity market; (iii) consolidate all eligible state accounts, and if it elects, accounts from participating local governmental bodies, into a single electricity and natural gas load profile, and (iv) enable small accounts, as determined by the division, to participate in wholesale market purchases.
(g) To streamline energy billing for state entities which have executed contracts under this section, the division, in consultation with the department of energy resources, the executive office for administration and finance and participating state entities, shall: (i) create a centralized billing system to receive all utility bills, audit for errors, and provide billing to individual state agencies and accounts and (ii) provide the division and the department of energy resources with such billing information, as they may request.
(h) To improve energy usage and management for state entities and achieve state energy policy objectives, the division shall: (i) utilize an energy management system to monitor and analyze consumption in facilities of state entities under state energy resource contracts; (ii) utilize data from such an energy management system, energy audits and other sources to identify energy efficiency investment opportunities; (iii) identify all existing state-owned energy generation assets and develop a plan to optimize their value; and (iv) establish equitable means to distribute energy savings to state entities. The division may develop a similar energy usage and management program for participating local governmental bodies and may utilize the systems and methods set forth in this paragraph in consultation with the green communities division of the department of energy resources.
(i) To identify appropriate capital investments in the state facility energy infrastructure, the division, in consultation with the executive office for administration and finance, shall develop recommendations that: (i) establish economic criteria to be applied in making capital investments in identified energy efficiency opportunities; (ii) identify capital resources, either through existing bonding authority or other sureties or resources to fund energy efficiency improvements and distributed energy generation; and (iii) utilize energy cost savings to finance, in whole or in part, such capital improvements.
(j) The division shall adopt regulations and procedures to carry out this section.
(k) The center shall report annually on January 1 to the center's board, the clerks of the senate and house of representatives, the governor, and the participating state entities on the operations of the division. The annual report shall include, but not be limited to, a description of the performance of the procurement program and contracts executed pursuant to this section.
(F) The commonwealth energy solutions division shall adopt its initial regulations and procedures under subsection (j) of section 12 of chapter 23J of the General Laws, not later than September 1, 2010. The division shall file its first annual report under subsection (k) of said section 12 not later than January 1, 2012.
This section establishes a Commonwealth Energy Solutions Division within the Massachusetts Clean Energy Center, as the Commonwealth's lead agency to reduce energy costs and greenhouse gas emissions for all state entities, including establishing a state procurement process for energy resources.
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