Provided that certain reporting requirements are met, M.G.L. c. 30B, §1(b)(33) exempts contracts for energy and energy-related services entered into by jurisdictions that are subject to M.G.L. c. 30B (governmental bodies). The Inspector General's office interprets the term "energy," which is not defined in any applicable statute, to apply only to electricity and natural gas commodity contracts. Contracts for fuel sources other than natural gas, such as gasoline, fuel oil and propane, are all supply contracts that must be competitively procured. Natural gas contracts with local distribution companies that your jurisdiction is assigned to based on geography, are subject to M.G.L. c. 30B, but may fall within a sole source exception. M.G.L. c. 30B does not define "energy-related services." This office generally interprets energy-related services as being limited to those ancillary services that go along with delivering energy.
According to M.G.L. c. 30B, within 15 days of contract execution, a governmental body must forward a copy of any electricity or natural gas contract to which it is a party and a report of the process used to execute the contract to the Department of Public Utilities, the Department of Energy Resources, and the Office of the Inspector General. This office has prepared a "Chapter 30B Compliance Form" to assist in complying with requirements of the law. We recommend keeping this form in your procurement file, along with copies of all relevant documents, to demonstrate compliance with the law.
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