By Mr. Patrick of Falmouth, petition (accompanied by bill, House, No. 3909) of Matthew C. Patrick for legislation to assess a charge on home heating oil to provide for the establishment of an energy efficiency program in the Commonwealth. Revenue.

The Commonwealth of Massachusetts

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PETITION OF:

Matthew C. Patrick

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In the Year Two Thousand and Seven.

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An Act relative to energy efficiency.

    Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

Whereas the deferred operation of this act would tend to defeat its purpose which is to immediately fund energy efficiency activities, therefore it is hereby declared to be an emergency law, necessary for the preservation of the public convenience.

SECTION 1. Chapter 23B of the General Laws is hereby amended by inserting after section 24B the following section:-

                Section 24C.  The department of revenue shall require a mandatory charge of 2.5 cent per gallon on all No. 1 distillate and No. 2 distillate oil sold for use or consumption within the commonwealth.  All funds so collected shall be utilized to fund energy efficiency activities.  Such funds shall be administered by the department of housing and community development as set forth herein.  Said charge shall be on all oil sold by all wholesale bulk oil suppliers of the commonwealth to all wholesale bulk oil distributors of the commonwealth.  The department of revenue shall issue regulations regarding the collection of such charge.  Such regulations shall provide a mechanism for rebating to all oil distributors charges paid under this section for oil sold outside the commonwealth.

The department of housing and community development shall enter into contracts with appropriate organizations selected through a competitive procurement process to deliver and operate, in a cost-effective manner, an energy efficiency program, including but not limited to demand-side management programs, that reduce demand for fuels consumed for space heating, including oil heat.

SECTION 2.  The department of housing and community development shall issue regulations implementing section 1 within 3 months of the effective date of this act and shall enter into contracts with appropriate organizations within 6 months after the adoption of the regulations.  Said regulations shall provide that at least 20 per cent of the amount expended for residential demand-side management programs pursuant to this section shall be spent on comprehensive low-income residential demand-side management and education programs.