PETITION OF:

SECTION 1. Section 11f of chapter 25a of the General Laws, as appearing in the 2000 Official Edition, is hereby amended by adding at the end of 11f the following:

Central procurement authority. –

(a) There is hereby authorized and created within the commonwealth a central procurement authority (the authority) for the purpose of procuring NE-GIS certificates as defined in 225 CMR 14.00 through long term contracts that shall be available for compliance with the renewable energy standard established under Chapter 164 of the acts of 1997 in future years by retail electricity suppliers as defined in 225 CMR 14.00 with renewable energy standard requirements, as established in this chapter. Starting in 2006, the authority will procure NE-GIS certificates in a competitively neutral manner through competitive solicitations.

The Central Procurement Authority shall have a board of trustees of five (5) members as follows: the director of the Massachusetts Renewable Energy Trust, who shall be chairman, the commissioner of the division of energy resources or a designee of the commissioner, the secretary of economic development or a designee of the secretary, the chairman of the department of telecommunications and energy or a designee of the chairman, and two public members appointed by the governor with advice and consent of the senate, who shall serve terms of three (3) years, provided however that no public members may serve more than two (2) consecutive three year terms. One of the public members shall be a representative of an organization that advocates for renewable energy development. Each member shall hold office for the term appointed and until the member’s successor shall have been duly appointed and qualified, or until the member’s earlier death, resignation or removal.

Members of the board of trustees of the authority shall receive no compensation for the performance of their duties, but may be reimbursed for reasonable expenses incurred in carrying out those duties. The board of trustees shall have the power to adopt, with the approval of the central procurement authority, such by-laws as may be necessary or convenient for the conduct of its affairs.

By July 1, 2005, the state agencies, departments, and divisions represented on the board of trustees shall adopt a Memorandum of Understanding establishing the central procurement authority, including:

(1) plans and guidelines for the procurement of NE-GIS certificates for compliance with the state’s renewable portfolio standard,

(2) its evaluation of proposals and/or actions to obligate, use and/or sell, dispose, trade or exchange assets held by the authority; and

(3) modify 225 CMR 14.00 as necessary to implement the actions of the authority.

(b) Effective January 1, 2006, retail electricity suppliers shall enter into such contracts or agreements with the central procurement authority as are necessary to implement the procurement of NE-GIS certificates to meet their RPS obligation. The authority shall establish individual contribution assessments for each retail electricity supplier for each year of the RPS program. The terms of such contracts or agreements shall provide that RPS compliance costs collected by the retail electricity supplier will be transferred to the authority to fund the purchase of NE-GIS certificates under long term contracts.

(1) Stimulating investment in renewable energy development by entering into agreements, including multi-year agreements of at least 10 years, for renewable energy certificates;

(2) Issuing assurances and/or guarantees to support the acquisition of renewable energy certificates and/or the development of new renewable energy sources for Massachusetts;

(3) Establishing escrows, reserves, and/or acquiring insurance for the obligations of the

authority;

(4) Paying administrative costs of the authority incurred by the central procurement authority or the board of trustees, not to exceed ten percent (10%) of the income of the fund, including but not limited to alternative compliance payments.

(d) NE-GIS certificates acquired through by the authority may be conveyed to retail electricity suppliers or may be credited against the renewable energy standard for the year of the certificate provided that the authority assesses the cost of the certificates to the retail electricity supplier, or suppliers, benefiting from the credit against the renewable energy standard, which assessment shall be reduced by previously made alternative compliance payments and shall be paid to the fund.

SECTION 2. Section X of Chapter 164 of the General Laws is hereby amended by adding the following subsection in between subsections (X) and (X):—
The Department of Telecommunications and Energy is hereby granted the authority to adopt such further regulations as necessary to ensure the proper implementation and enforcement of the provisions of this Act. Such regulations must be promulgated by September 30, 2005. The provisions of this Act shall be severable and if the application of any clause, sentence, paragraph, subdivision, section or part of this Act shall be adjudged by any court of competent jurisdiction, section or part of this Act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the application of any other clause, sentence, paragraph, subdivision, section or part of this Act.