Be it enacted by the Senate and House
of Representatives in General Court assembled, and by the authority of the
same, as follows:
SECTION 1. Subsection (l) of Section 1 of Chapter 64A of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by inserting after the first sentence the following paragraphs:
Notwithstanding the prior sentence, for fuel consisting of eligible cellulosic biofuel or of a blend of gasoline and eligible cellulosic biofuel, the tax per gallon shall be reduced in proportion to the percentage of the fuel content consisting of eligible cellulosic biofuel, measured by available energy content, as determined by the division of energy resources.
Manufacturers and wholesale distributors of cellulosic biofuel doing business in the commonwealth who wish to have their fuel classified as eligible cellulosic biofuel shall provide documentation satisfactory to the division that such fuel yields at least a 60 percent reduction in lifecycle greenhouse gas emissions per unit of delivered energy, in comparison to the petroleum-based fuel displaced.,
In determining the percentage reduction in lifecycle greenhouse gas emissions relative to petroleum-based fuel achieved by particular supplies of cellulosic biofuel, the division, in consultation with the department of environmental protection and the executive office of energy and environmental affairs, shall utilize information and best practices available from other sources, including state governments, the U.S. Environmental Protection Agency, interstate organizations, academic researchers, national governments, and the European Union.
If the division of energy resources, in consultation with the department of environmental protection and the executive office of energy and environmental affairs, determines through an initial review that a particular waste feedstock will clearly yield substantial lifecycle greenhouse gas reductions, is free of hazardous materials and hazardous waste, and meets any other conditions established by regulations promulgated by the division, the division may exempt fuel produced from such a feedstock from a full lifecycle greenhouse gas emissions analysis.
The division of energy resources shall promulgate regulations to effectuate the provisions of this section. The division of energy resources, in consultation with the department of revenue, shall also promulgate regulations concerning the timing and form of documentation that will enable the department to determine the appropriate tax revenue to be collected.
The tax reduction specified by this section shall be effective for tax years beginning on or after January 1, 2009, and shall expire at such time as a low carbon fuel standard, or a similar standard or system, that will achieve equal or greater reductions in greenhouse gas emissions to the tax reduction specified by this section is adopted by Massachusetts, or a standard applying to Massachusetts is adopted by the United States government, prior to January 1, 2018, but in no event later than December 31, 2017. In that case, at least 60 days prior to the effective date of the standard or system, the department of environmental protection shall submit a statement to the General Court of the Commonwealth that the standard will become effective on the particular date, and the department's determination that the standard will achieve the specified reduction in emissions. If the General Court takes no action, the tax reduction specified by this section shall expire on the date that the regulations implementing the standard or system become effective. Further, in the event that a low carbon fuel standard or a similar standard or system is adopted, the division of energy resources shall have the authority to extend the expiration date of the tax reduction by up to one year, but must submit a statement to the General Court explaining its reasons for doing so.
SECTION 2. Section 1 of Chapter 64A as so appearing, is further amended by inserting after subsection (l) the following subsections:—
(m) “Feedstock(s)”, the raw material used to produce a fuel.
(n) “Cellulosic biofuel”, fuel that can be used in place of petroleum-based fuel, and is derived from cellulose, hemicellulose, or lignin that is derived from renewable biomass.
(o) "Eligible cellulosic biofuel", cellulosic biofuel that yields at least a 60 percent reduction in lifecycle greenhouse gas emissions relative to average lifecycle greenhouse gas emissions for petroleum-based fuel sold in 2005, as determined by the division of energy resources in consultation with the department of environmental protection and the executive office of energy and environmental affairs.
(p) "Renewable biomass," non-fossil fuel based material, including planted crops; crop residues; planted trees and tree residues from sustainably managed forests; waste materials including animal waste, animal byproducts, organic portions of municipal solid waste, grease trap waste, construction and demolition debris; and algae, or as otherwise determined by the division of energy resources in consultation with the department of environmental protection and the executive office of energy and environmental affairs.
(q) “Lifecycle greenhouse gas emissions,” the aggregate quantity of greenhouse gas emissions (including direct emissions and significant indirect emissions such as significant emissions from land use changes), as determined by the Division in consultation with the Department and the Executive Office of Energy and Environmental Affairs, related to the full fuel lifecycle, including all stages of fuel and feedstock production and distribution, from feedstock generation or extraction through the distribution and delivery and use of the finished fuel to the ultimate consumer, where the mass values for all greenhouse gases are adjusted to account for their relative global warming potential.
(r) “Low Carbon Fuel Standard,” a legal requirement that the average lifecycle greenhouse gas emissions attributable to use of energy in an economic sector are equal to or below a specified numeric level, or a similar standard or system, such as the requirement contained in Executive Order S-1-07 issued by the governor of California on January 18, 2007. The level may be stated as units of greenhouse gas emissions per unit of delivered energy, corrected for differences in the efficiency of the energy in the particular end use; for example the difference between efficiency of a gasoline engine and an electric motor in powering a vehicle. The standard may apply to the Commonwealth or a larger geographic area, and may apply to energy used in motor vehicles or to another energy-consuming sector.
(s), “Division,” the division of energy resources in the executive office of energy and environmental affairs.
(t), “Department,” the department of environmental protection in the executive office of energy and environmental affairs.
SECTION 3. Chapter 94 is hereby amended by inserting after Section 249H the following section:— Section 249H½.
(1) As used in this section, the following terms shall have the following meanings:
"Renewable biomass," non-fossil fuel based material, including planted crops; crop residues; planted trees and tree residues from sustainably managed forests; waste materials including animal waste, animal byproducts, organic portions of municipal solid waste, grease trap waste, construction and demolition debris; and algae, or as otherwise determined by the division of energy resources in consultation with the department of environmental protection and the executive office of energy and environmental affairs.
"Petroleum distillate substitute fuel," fuel that is derived predominantly from renewable biomass; and meets American society for testing and materials specifications for use in heating applications, or such other quality certification standard(s) as are approved by the Division. For industrial and commercial applications, the Division may substitute operational performance requirements that it determines are acceptable.
"Eligible petroleum distillate substitute fuel", petroleum distillate substitute fuel that yields at least a 50 percent reduction in lifecycle greenhouse gas emissions relative to average lifecycle greenhouse gas emissions for petroleum distillate fuel sold in 2005, as determined by the division of energy resources in consultation with the department of environmental protection and the executive office of energy and environmental affairs.
“Lifecycle greenhouse gas emissions,” the aggregate quantity of greenhouse gas emissions (including direct emissions and significant indirect emissions such as significant emissions from land use changes), as determined by the Division in consultation with the Department and the Executive Office of Energy and Environmental Affairs, related to the full fuel lifecycle, including all stages of fuel and feedstock production and distribution, from feedstock generation or extraction through the distribution and delivery and use of the finished fuel to the ultimate consumer, where the mass values for all greenhouse gases are adjusted to account for their relative global warming potential.
“BQ-9000”, the national biodiesel accreditation program for producers and marketers of biodiesel fuel, operated by the national biodiesel accreditation commission.
“Commissioner”, the commissioner of the division of energy resources.
“Division”, the division of energy resources.
“Feedstock(s)”, the raw material used to produce a fuel.
"Waste feedstock", previously used or discarded solid, liquid or contained gaseous material with heating value resulting from industrial, commercial, or household food service activities that would otherwise be stored, treated, transferred or disposed of. Waste feedstock shall include but not be limited to waste vegetable oils, waste animal fats, substances derived from wastewater and the treatment of wastewater, or grease trap waste. Waste feedstock shall not include petroleum-based waste or waste that otherwise meets the definition of hazardous waste, unless otherwise determined by the department of environmental protection.
“Low Carbon Fuel Standard,” a legal requirement that the average lifecycle greenhouse gas emissions attributable to use of energy in an economic sector are equal to or below a specified numeric level, or a similar standard or system, such as the requirement contained in Executive Order S-1-07 issued by the governor of California on January 18, 2007. The level may be stated as units of greenhouse gas emissions per unit of delivered energy, corrected for differences in the efficiency of the energy in the particular end use; for example the difference between efficiency of a gasoline engine and an electric motor in powering a vehicle. The standard may apply to the Commonwealth or a larger geographic area, and may apply to energy used in motor vehicles or to another energy-consuming sector.
(2) Manufacturers and wholesale distributors of petroleum distillate substitute fuel doing business in the commonwealth who wish to have their fuel classified as eligible petroleum distillate substitute fuel shall provide documentation satisfactory to the division that such fuel yields at least a 50 percent reduction in lifecycle greenhouse gas emissions per unit of delivered energy, in comparison to the petroleum distillate fuel displaced.
In determining the percentage lifecycle greenhouse gas reductions achieved by particular fuels, the division, in consultation with the department of environmental protection and the executive office of energy and environmental affairs, shall utilize information and best practices available from other sources, including state governments, the U.S. Environmental Protection Agency, interstate organizations, academic researchers, national governments, and the European Union.
If the division of energy resources, in consultation with the department of environmental protection and the executive office of energy and environmental affairs, determines through an initial review that a particular waste feedstock will clearly yield substantial lifecycle greenhouse gas reductions, is free of hazardous materials and hazardous waste, and meets any other conditions set by regulations promulgated by the division, the division may exempt fuel produced from such a material from a full lifecycle greenhouse gas emissions analysis.
For supplies that the division determines meet the criteria above for reductions in greenhouse gas emissions, the division shall certify the supplies as "eligible petroleum distillate substitute fuel" and shall provide documentation or certificates to suppliers of such fuel showing the number of gallons of neat eligible petroleum distillate substitute fuel supplied. The division shall, by regulation, determine which suppliers the documentation shall apply to, and shall create a mechanism for tracking such supplies.
(3) Except as provided in (4) below, the following shall apply to all #2 petroleum distillate fuel and all other liquid fuel sold as a substitute for #2 distillate fuel, offered for sale to end-users, retail sellers, or to any other entity that will be providing such fuel directly to end-users in the Commonwealth for use in residential, commercial, or industrial heating applications. Such fuel must contain at least 2.0 percent eligible petroleum distillate substitute fuel, measured by available energy content or as otherwise provided by the division, no later than July 1, 2010. Except as provided in (4) below, all such fuel must contain at least 3.0 percent eligible petroleum distillate substitute fuel no later than July 1, 2011, 4.0 percent eligible petroleum distillate substitute fuel no later than July 1, 2012, and 5.0 percent eligible petroleum distillate substitute fuel no later than July 1, 2013.
The division shall study the feasibility of applying the percentage requirements above to #4 and #6 petroleum distillate fuel, including whether blends of eligible petroleum distillate substitute fuel with #4 or #6 petroleum distillate fuel will operate correctly in applicable heating equipment. If the division determines that doing so is feasible, it shall extend the percentage requirements above to #4 and #6 petroleum distillate fuel.
The division may delay these implementation dates for the period of time which it determines, in consultation with the department of environmental protection and the executive office of energy and environmental affairs, that providing sufficient supplies of the required eligible petroleum distillate substitute fuel to end-use consumers is not feasible due to lack of supply, lack of blending facilities, or unreasonable cost. If the division delays implementation as provided in the preceding sentence, the commissioner shall file a report within 30 days of such decision with the clerk of the Senate, the clerk of the House of Representatives, the House and Senate Committees on Ways and Means, the Joint Committee on Telecommunications, Utilities and Energy, the Joint Committee on Environment, Natural Resources and Agriculture and the Joint Committee on Transportation explaining the reasons for any such decision to delay implementation.
If a low carbon fuel standard, or a similar standard or system, that will achieve equal or greater reductions in greenhouse gas emissions to the minimum content requirement for eligible petroleum distillate substitute fuel specified by this section, is adopted by Massachusetts, or a standard applying to Massachusetts is adopted by the United States government; then at least 60 days prior to the effective date of the standard the department of environmental protection shall submit a statement to the General Court of the Commonwealth that the standard will become effective on the particular date, and the department's determination that the standard will achieve the specified reduction in emissions. If the General Court takes no action, the minimum content requirement specified by this section shall expire on the date that the regulations implementing the standard or system become effective, or at such other date specified by the division, but in any case within one year of implementation of the regulations. If the division chooses an expiration date other than the effective date of the regulations it must submit a statement to the General Court explaining its reasons for doing so.
(4) The division of energy resources, in consultation with the department of environmental protection and the executive office of energy and environmental affairs, shall study the feasibility, benefits, and costs, including benefits and costs to consumers, producers, and the state government, of making the percentage mandates in (3) above apply on a statewide average basis rather than for every gallon of petroleum distillate fuel sold for heating purposes in the state. If the division determines that such a system is feasible and that its benefits substantially exceed its costs, the division shall have the authority to implement such a system. The division shall determine on which entities the percentage requirements shall be applied. If the division implements such a system, the division shall promulgate regulations allowing and tracking sales of certificates or other documentation from the division that show use of eligible petroleum distillate substitute fuel in the Commonwealth. Entities may meet their percentage requirements for use of eligible petroleum distillate substitute fuel by purchasing certificates or other documentation, and such certificates may be re-sold.
(5) Manufacturers and wholesale distributors of eligible petroleum distillate substitute fuel, and of fuel blended from petroleum distillate and eligible petroleum distillate substitute, doing business in the commonwealth shall furnish samples of such products to the division, shall permit the entry and inspection by the Division and/or Department of the premises of such manufacturers or distributors, and the inspection and sampling of fuel stored thereon.
(6) Manufacturers of eligible petroleum distillate substitute fuel that is sold in the Commonwealth must meet quality assurance criteria or accreditation requirements determined by the Division, in consultation with the Department. Manufacturers must submit documentation of this quality assurance or accreditation to the division by November 1, 2009, or at least three months prior to the date on which the division certifies their fuel as eligible petroleum distillate substitute fuel, and must submit documentation to the division showing that their accreditation remains current every two years thereafter.
(7) The division shall evaluate the feasibility and desirability of requiring BQ-9000 or other comparable accreditation requirement for producers and marketers of petroleum distillate substitute fuel and petroleum distillate fuel blended with petroleum distillate substitute fuel operating in the Commonwealth. If the division concludes that such accreditation is feasible and desirable in order to protect consumers and the environment, the division shall promulgate regulations to implement an accreditation requirement.
(8) The division shall promulgate regulations to implement the provisions of this subsection.
(9) No person shall sell or offer to sell petroleum distillate heating fuel in the Commonwealth, including eligible petroleum distillate substitute fuel, that does not conform to the provisions of this section.
(10) Notwithstanding any of the provisions of Section 249H of this chapter, failure to comply with subsection (9) of this section shall constitute an unfair or deceptive act under the provisions of Chapter 93A, and may be enforced as provided therein.
SECTION 4. Chapter 94 is hereby amended by inserting after Section 295G the following section:— section 295G½.
(1) As used in this section, the following terms shall have the following meanings:
"Renewable biomass," non-fossil fuel based material, including planted crops; crop residues; planted trees and tree residues from sustainably managed forests; waste materials including animal waste, animal byproducts, organic portions of municipal solid waste, grease trap waste, construction and demolition debris; and algae, or as otherwise determined by the division of energy resources in consultation with the department of environmental protection and the executive office of energy and environmental affairs.
"Diesel substitute fuel”, fuel that is derived predominantly from renewable biomass; that meets American society for testing and materials specifications for use in diesel engines, or that meets such other quality certification standard(s) as are approved by the Division for the application involved. For diesel substitute fuel used in on-road motor vehicles, the fuel shall meet the registration requirements for fuels and fuel additives established by the Environmental Protection Agency under section 211C of the Clean Air Act, 42 U.S.C. § 7545.
"Eligible diesel substitute fuel", diesel substitute fuel that yields at least a 50 percent reduction in lifecycle greenhouse gas emissions relative to average emissions for petroleum-based diesel fuel sold in 2005, as determined by the division of energy resources in consultation with the department of environmental protection and the executive office of energy and environmental affairs.
“Lifecycle greenhouse gas emissions,” the aggregate quantity of greenhouse gas emissions (including direct emissions and significant indirect emissions such as significant emissions from land use changes), as determined by the Division in consultation with the Department and the Executive Office of Energy and Environmental Affairs, related to the full fuel lifecycle, including all stages of fuel and feedstock production and distribution, from feedstock generation or extraction through the distribution and delivery and use of the finished fuel to the ultimate consumer, where the mass values for all greenhouse gases are adjusted to account for their relative global warming potential.
“BQ-9000”, the national biodiesel accreditation program for producers and marketers of biodiesel fuel, operated by the national biodiesel accreditation commission.
“Commissioner”, the commissioner of the division of energy resources.
“Division”, the division of energy resources.
“Feedstock(s)”, the raw material used to produce a fuel.
"Waste feedstock", previously used or discarded solid, liquid or contained gaseous material with heating value resulting from industrial, commercial, or household food service activities that would otherwise be stored, treated, transferred or disposed of. Waste feedstock shall include but not be limited to waste vegetable oils, waste animal fats, substances derived from wastewater and the treatment of wastewater, and grease trap waste. Waste feedstocks shall not include petroleum-based waste or waste that otherwise meets the definition of hazardous waste, unless otherwise determined by the department of environmental protection.
“Low Carbon Fuel Standard,” a legal requirement that the average lifecycle greenhouse gas emissions attributable to use of energy in an economic sector are equal to or below a specified numeric level, or a similar standard or system, such as the requirement contained in Executive Order S-1-07 issued by the governor of California on January 18, 2007. The level may be stated as units of greenhouse gas emissions per unit of delivered energy, corrected for differences in the efficiency of the energy in the particular end use; for example the difference between efficiency of a gasoline engine and an electric motor in powering a vehicle. The standard may apply to the Commonwealth or a larger geographic area, and may apply to energy used in motor vehicles or to another energy-consuming sector.
(2) Manufacturers and wholesale distributors of diesel substitute fuel doing business in the commonwealth who wish to have their fuel classified as eligible diesel substitute fuel shall provide documentation satisfactory to the division that such fuel yields at least a 60 percent reduction in lifecycle greenhouse gas emissions per unit of delivered energy, in comparison to the petroleum-based diesel fuel displaced.
In determining the percentage lifecycle greenhouse gas reductions achieved by particular fuels, the division, in consultation with the department of environmental protection and the executive office of energy and environmental affairs, shall utilize information and best practices available from other sources, including state governments, the U.S. Environmental Protection Agency, interstate organizations, academic researchers, national governments, and the European Union.
If the division of energy resources, in consultation with the department of environmental protection and the executive office of energy and environmental affairs, determines through an initial review that a particular waste feedstock will clearly yield substantial lifecycle greenhouse gas reductions, is free of hazardous materials and hazardous waste, and meets any other conditions set by regulations promulgated by the division, the division may exempt fuel produced from such a material from a full lifecycle greenhouse gas emissions analysis.
For supplies that the division determines meet the criteria above for reductions in greenhouse gas emissions, the division shall, by regulation, certify the supplies as "eligible diesel substitute fuel" and shall provide documentation or certificates to suppliers of such fuel showing the number of gallons of neat eligible diesel substitute fuel supplied. The division shall, by regulation, determine which suppliers the documentation shall apply to, and create a mechanism for tracking such supplies.
(3) Except as provided in (4) below, the following shall apply to all diesel motor vehicle fuel and all other liquid fuel used in motor vehicle diesel engines, offered for sale to end-users, retail sellers, or to any other entity that will be providing such fuel directly to end-users in the Commonwealth for use in transportation. All such fuel must contain at least 2.0 percent eligible diesel substitute fuel, measured by available energy content or in such other manner as determined by the division no later than July 1, 2010. Except as provided in (4) below, all such fuel must contain at least 3.0 percent eligible diesel substitute fuel no later than July 1, 2011, 4.0 percent eligible diesel substitute fuel no later than July 1, 2012, and 5.0 percent eligible diesel substitute fuel no later than July 1, 2013.
The division may delay these implementation dates for the period of time which it determines, in consultation with the department of environmental protection and the executive office of energy and environmental affairs, that providing sufficient supplies of the required eligible diesel substitute fuel to end-use consumers is not feasible due to lack of supply, lack of blending facilities, or unreasonable cost. If the division delays implementation as provided in the preceding sentence, the commissioner shall file a report within 30 days of such decision with the clerk of the Senate, the clerk of the House of Representatives, the House and Senate Committees on Ways and Means, the Joint Committee on Telecommunications, Utilities and Energy, the Joint Committee on Environment, Natural Resources and Agriculture and the Joint Committee on Transportation explaining the reasons for any such decision to delay implementation.
If a low carbon fuel standard, or a similar standard or system, that will achieve equal or greater reductions in greenhouse gas emissions to the minimum content requirement specified by this section is adopted by Massachusetts, or a standard applying to Massachusetts is adopted by the United States government, then at least 60 days prior to the effective date of the standard the department of environmental protection shall submit a statement to the General Court of the Commonwealth that the standard will become effective on the particular date, and the department's determination that the standard will achieve the specified reduction in emissions. If the General Court takes no action, the minimum content requirement specified by this section shall expire on the date that the regulations implementing the standard or system become effective, or at such other date specified by the division, but in any case within one year of implementation of the regulations. If the division chooses an expiration date other than the effective date of the regulations it must submit a statement to the General Court explaining its reasons for doing so.
(4) The division of energy resources, in consultation with the department of environmental protection and the executive office of energy and environmental affairs, shall study the feasibility, benefits, and costs, including benefits and costs to consumers, producers, and the state government, of making the percentage mandates in (3) above apply on a statewide average basis rather than for every gallon of diesel motor fuel sold in the state. If the division implements such a system, the division shall promulgate regulations allowing and tracking sales of certificates or other documentation from the division that show use of eligible diesel substitute fuel in the Commonwealth. Entities may meet their percentage requirements for use of eligible diesel substitute fuel by purchasing certificates or other documentation, and such certificates may be re-sold.
(5) Manufacturers and wholesale distributors of eligible diesel substitute fuel, and of fuel blended from petroleum diesel and eligible diesel substitute, doing business in the commonwealth shall furnish samples of such products to the division, shall permit the entry and inspection by the Division and/or Department of the premises of such manufacturers or distributors, and the inspection and sampling of fuel stored thereon.
(6) Manufacturers of eligible diesel substitute fuel that is sold in the Commonwealth must meet quality assurance criteria or accreditation requirements determined by the Division, in consultation with the Department. Manufacturers must submit documentation of this quality assurance or accreditation to the division by November 1, 2009, or at least three months prior to the date on which the division certifies their fuel as eligible diesel substitute fuel, and must submit documentation to the division showing that their accreditation remains current every two years thereafter.
(7) The division shall evaluate the feasibility and desirability of requiring BQ-9000 or other comparable accreditation requirement for producers and marketers of diesel substitute fuel and petroleum-based motor fuel blended with diesel substitute fuel operating in the Commonwealth. If the division concludes that such accreditation is feasible and desirable in order to protect consumers and the environment, the division shall promulgate regulations to implement an accreditation requirement.
(8) The division shall promulgate regulations to implement the provisions of this subsection.
(9) No person shall sell or offer to sell in the Commonwealth heating fuel, including eligible diesel substitute fuel, that does not conform to the provisions of this section.
(10) Notwithstanding any of the provisions of Section 249H of this chapter, failure to comply with subsection (9) of this section shall constitute an unfair or deceptive act under the provisions of Chapter 93A, and may be enforced as provided therein.