SENATE, No. 2423

Senate, November 19, 2007

The committee on Environment, Natural Resources and Agriculture to whom was referred the petition (accompanied by petition, Senate, No. 534), relative to global warming solutions act of 2007 executive summary, reported, recommending that the same ought to pass, with an amendment substituting a new draft entitled An Act relative to the Massachusetts Global Warming Solutions Act (Senate, No. 2423).

Pamela P. Resor,
For the committee.

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The Commonwealth of Massachusetts

Seal of the Commonwealth of Massachusetts

In the Year Two Thousand and Seven.


AN ACT RELATIVE TO THE MASSACHUSETTS GLOBAL WARMING SOLUTIONS ACT

 

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.   Chapter 6A of the General Laws, as so appearing, is hereby amended by inserting after section 16G the following section:--

Section 16G1/2.  Secretary, duties and responsibilities, programs for global warming.

The secretary of the executive office of housing and economic development, in consultation with the executive office of energy and environmental affairs, shall create and administer programs and incentives to foster manufacturing, development and research in the renewable energy and energy efficiency sectors. At a minimum, the secretary of the executive office of housing and economic development shall develop the following programs, subject to appropriation:- 

(a)  The seed grant partnerships for research and venture investment programs, which shall foster public/private partnerships between the state and the venture community. Such programs shall provide grants to qualified university researchers and validation stage ventures, expand the field of energy-focused entrepreneurs and spark the cooperative development of commercial clean energy companies through increased venture investment. The program shall include but not be limited to a focus of providing grants to university energy research projects and early-stage energy ventures seeking validation of their science and intellectual property; and the establishment of an Energy Entrepreneur program.

(b)  Energy efficiency and renewable energy workforce development and training programs, to increase the number of trained skilled workers in the economic sectors of emerging clean energy, renewable energy, energy efficiency, and demand resources. The program shall develop a plan to address growing clean energy labor demands and talent gaps. Twenty percent of funding shall be allocated towards training services for low-income and disadvantaged adults.  This program shall be designed to promote growth of the clean energy economy by helping build a pipeline of well-trained skilled workers and addressing emerging skills gaps in both the clean energy cluster and clean energy adoption.  The initiative shall include but not be limited to providing grants to state universities, community colleges, vocational/technical schools and organized labor for educational and certification programs targeted at both engineering/technical needs in the cluster and serving end-user needs.

(c)  Energy efficiency and renewable energy workforce development and training programs to increase the number of trained skilled workers in the emerging clean energy and renewable energy economic sectors.  The administrator of the program shall develop a plan to address growing clean energy labor demands and talent gaps. Twenty percent of funding shall be allocated towards training services for low-income and disadvantaged adults. 

SECTION 2.  Section 19 of Chapter 6A of the General Laws, as so appearing, is hereby amended by striking subsection (f) and inserting in place thereof the following two subsections:--

“(f)  The secretary shall collaborate with other state agencies to reduce greenhouse gas emissions in the Commonwealth, with the goal of reaching a 20% reduction in greenhouse gas emission levels by 2020, and 80% by 2050.  Those reductions shall be based on 1990 levels.

(g)  Nothing in this chapter shall be construed as conferring any powers or imposing any duties upon the secretary with respect to the foregoing agencies and authorities except as expressly provided by law.”

SECTION 3.  Section 1 of Chapter 16, as appearing in the 2006 Official Edition, is hereby amended by striking clause (d) in its entirety and inserting in place thereof the following:--

“(d)  The commissioner shall collaborate with other state agencies to reduce greenhouse gas emissions.  The department shall be guided by Chapter 21N and other relevant state and federal laws, and in particular, by the stated goal of achieving 20% reduction in greenhouse gas emissions by 2020, and 80% by 2050.  These reductions shall be based upon 1990 levels, as determined according to said Chapter 21N.

(e)  The commissioner may promulgate rules and regulations to effectuate the purposes of this chapter.”

SECTION 4.  Section 2 of Chapter 21A, as appearing in the 2006 Official Edition, is hereby amended by inserting after clause (29) the following clause:--

“(30)  consistent with chapter 21N, oversee state agency efforts to address and diminish the impacts of global warming by coordinating state agency actions to reduce greenhouse gas emission levels by 20% from 1990 levels by 2020, and 80% by 2050.”

SECTION 5.  Section 8 of said Chapter 21A is hereby further amended by inserting after the second paragraph the following paragraph:--

“The department of environmental protection shall assist in the implementation of chapter 21N.”

SECTION 6.  Section 16 of said chapter 21A is hereby further amended by inserting at the end thereof the following new paragraph: --

            “Any person who fails to comply with or otherwise violates chapter 21N or any regulation adopted thereunder shall be liable for a civil administrative penalty not to exceed $25,000 for each day the violation continues.”

SECTION 7.  The Massachusetts General Laws, as appearing in the 2006 Official Edition, are hereby amended by inserting after Chapter 21M the following chapter:--

Chapter 21N.  Massachusetts Global Warming Solutions Act.

Section 1.  Definitions.

            For the purposes of this chapter, the following terms have the following meanings:

“Allowance” means an authorization to emit, during a specified year, up to one ton of carbon dioxide equivalent.

“Alternative compliance mechanism” means an action undertaken by a greenhouse gas emission source that achieves the equivalent reduction of greenhouse gas emissions over the same time period as a direct emission reduction, that is approved by the department, and that is real, permanent, quantifiable, verifiable, and enforceable.

“Carbon dioxide equivalent” means the amount of carbon dioxide by weight that would produce the same global warming impact as a given weight of another greenhouse gas, based on the best available science, including from the Intergovernmental Panel on Climate Change.

"Direct emissions" means emissions from sources that are owned or operated, in whole or in part, by an entity or facility, including, but not limited to, emissions from factory stacks, manufacturing processes and vents, and company owned or leased motor vehicles.

“Department”, the department of environmental protection.

“Direct emission reduction” means a greenhouse gas emission reduction action made by a greenhouse gas emission source at that source.

“Emissions reduction measure” means programs, measures, standards, and alternative compliance mechanisms authorized pursuant to this chapter, applicable to sources or categories of sources, that are designed to reduce emissions of greenhouse gases.

"Entity" means a person as defined in section 16 of chapter 21A that owns or operates, in whole or in part, a source of greenhouse gas emissions from a generator of electricity or a commercial or industrial site, which source may include, but not be limited to, a transportation fleet.

“EOEEA”, means the executive office of energy and environmental affairs.

"Facility" means a building, structure or installation located on any one or more contiguous or adjacent properties of an entity.

"Greenhouse gas" means any chemical or physical substance that is emitted into the air and that the department may reasonably anticipate will cause or contribute to climate change, including, but not limited to, carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride.
“Greenhouse gas emissions limit” means an authorization, during a specified year, to emit up to a level of greenhouse gases specified by the department, expressed in tons of carbon dioxide equivalents.

“Greenhouse gas emission source” or “source” means any source, or category of sources, of greenhouse gas emissions whose emissions are at a level of significance, as determined by the department, that its participation in the program established under this chapter will enable the department to effectively reduce greenhouse gas emissions and monitor compliance with the statewide greenhouse gas emissions limit.

"Indirect emissions" means emissions associated with the consumption of purchased electricity, steam and heating or cooling by an entity or facility.

“Leakage” means the offset of a reduction in emissions of greenhouse gases within the commonwealth by an increase in emissions of greenhouse gases outside the commonwealth.

“Market-based compliance mechanism” means either of the following:

(1) A system of market-based declining annual aggregate emissions limitations for sources or categories of sources that emit greenhouse gases.

(2) Greenhouse gas emissions exchanges, banking, credits, and other transactions, governed by rules and protocols established by EOEEA or the Regional Greenhouse Gas Initiative, that result in the same greenhouse gas emission reduction, over the same time period, as direct compliance with a greenhouse gas emission limit or emission reduction measure adopted by EOEEA pursuant to this chapter.

 “Secretary”, the secretary of the executive office of energy and environmental affairs.

“Statewide greenhouse gas emissions” means the total annual emissions of greenhouse gases in the commonwealth, including all emissions of greenhouse gases from the generation of electricity delivered to and consumed in Massachusetts , accounting for transmission and distribution line losses, whether the electricity is generated in state or imported. Statewide emissions shall be expressed in tons of carbon dioxide equivalents.

“Statewide greenhouse gas emissions limit” or “statewide emissions limit” means the maximum allowable level of statewide greenhouse gas emissions in a given year, as determined by the executive office of environmental affairs pursuant to this chapter.

Section 2.  Greenhouse Gas Registry and Inventory

            The department shall monitor and regulate emissions of greenhouse gases with the goal of reducing those emissions.

On or before January 1, 2009 , the department shall adopt regulations to require the reporting and verification of statewide greenhouse gas emissions and to monitor and enforce compliance with this program.  The regulations shall:

(1) Establish a regional greenhouse gas registry and reporting system for greenhouse gas emission sources.  In establishing the greenhouse gas registry and reporting system, the department may collaborate with other states or a regional consortium.
(2) Require that not later than April 15, 2009 , and annually thereafter, the owner or operator of any facility that is required to report air emissions data to the department pursuant to Title V of the federal Clean Air Act and that has stationary emissions sources that emit greenhouse gases shall report annually to the regional registry direct stack emissions of greenhouse gases from such sources.

(3) Require that not later than April 15, 2009 , the owner or operator of any facility that has stationary emissions sources that emit greenhouse gases in excess of five thousand tons of greenhouse gases per year in carbon dioxide equivalents shall report annually to the regional registry direct emissions of greenhouse gases from such sources. The department shall develop a simplified estimation form to assist facilities in determining who must report emissions.  The secretary shall consider, on an annual basis, requiring the expansion of reporting to the regional greenhouse gas registry.

(4) Not later than July 1, 2009 , provide for the voluntary reporting of emissions of greenhouse gases to the regional greenhouse gas registry by entities and facilities that are not required to submit information pursuant to subsections (2) and (3) of this section but which do so on a voluntary basis. The greenhouse gas emissions reported shall be of a type and format that the regional greenhouse gas registry can accommodate.

(5) Not later than July 1, 2009 , account for greenhouse gas emissions from all electricity consumed in the commonwealth, including transmission and distribution line losses from electricity generated within the commonwealth or imported from outside the commonwealth. This requirement applies to all retail sellers of electricity, including electric utilities, municipal electric departments, and municipal light boards as defined in section 1 of Chapter 164A.

(6) Ensure rigorous and consistent accounting of emissions, and provide reporting tools and formats to ensure collection of necessary data.

(7) Ensure that greenhouse gas emission sources maintain comprehensive records of all reported greenhouse gas emissions.

In furtherance of the provisions of this section, the department shall:

(1) Consult with the secretary on periodic review and updates of emission reporting requirements, as necessary.

(2) Review existing and proposed international, federal, and state greenhouse gas emission reporting programs and make reasonable efforts to promote consistency among the programs established pursuant to this part and other programs, and to streamline reporting requirements on greenhouse gas emission sources.
Not later than December 31, 2009 , and triennially thereafter, the department shall publish a state greenhouse gas emissions inventory that includes comprehensive estimates of the quantity of greenhouse gas emissions in the state for the last three years in which data is available.

Section 3. Statewide Greenhouse Gas Emissions Limit

(a) On or before January 1, 2009 , the department shall, after one or more public hearings, with public notice, and an opportunity for all interested parties to comment, determine what the statewide greenhouse gas emissions level was in 1990.  

(b)  The executive office, in consultation with the department and with the department of clean energy, shall adopt a statewide greenhouse gas emissions limit that is equivalent to 20 percent below the1990 level, to be achieved by 2020, and 80 percent below the 1990 level, to be achieved by 2050. The executive office shall also adopt incremental reduction targets for the years 2005 through 2019, inclusive, and 2021 through 2050, inclusive, that shall maximize the ability of the state to meet the statewide emissions limits.

(c) Emissions levels and limits associated with the electric sector shall be established by the executive office and the department, in consultation with the department of clean energy, based on consumption and purchases of electricity from the regional electric grid, taking into account the Regional Greenhouse Gas Initiative and the renewable portfolio standard.

(d)  In furtherance of achieving the statewide greenhouse gas emissions limit, by January 1, 2011 , the department shall promulgate regulations establishing a desired level of declining annual aggregate emission limits for sources or categories of sources that emit greenhouse gas emissions, applicable from January 1, 2012 , to December 31, 2020 , inclusive, that are in theory sufficient to meet the targets established in this section.

Section 4. Statewide Emissions Reduction Plan

On or before January 1, 2009 , the executive office shall prepare and approve a plan for achieving reductions in greenhouse gas emissions from sources or categories of sources of greenhouse gases sufficient to achieve the statewide emissions limits set by 2020. The executive office shall consult with all state agencies and regional authorities and agreements with jurisdiction over sources of greenhouse gases on all elements of its plan that pertain to energy related matters including, but not limited to, electrical generation, load based-standards or requirements, the provision of reliable and affordable electrical service, and statewide fuel supplies, to ensure the greenhouse gas emissions reduction activities to be adopted and implemented by the executive office are complementary, non-duplicative, and can be implemented in an efficient and cost-effective manner. 

(b) The plan shall identify and make recommendations on direct emission reduction measures, alternative compliance mechanisms, market-based compliance mechanisms, and potential monetary and non-monetary incentives for sources and categories of sources that the executive office finds are necessary or desirable to facilitate the achievement of reductions of greenhouse gas emissions limits.

(c) In making the determinations required by subsection (b), the executive office shall consider all relevant information pertaining to greenhouse gas emissions reduction programs in other states, localities, and nations, including California , Canada , and the European Union.

(d) The executive office shall evaluate the total potential costs and total potential economic and non-economic benefits of the plan for reducing greenhouse gases to Massachusetts ’ economy, environment, and public health, using the best available economic models, emission estimation techniques, and other scientific methods.

(e) In developing its plan, the executive office shall take into account the relative contribution of each source or source category to statewide greenhouse gas emissions, and shall recommend a de minimis threshold of greenhouse gas emissions below which emission reduction requirements will not apply.

(f) In developing its plan, the executive office shall identify opportunities for emission reductions measures from all verifiable and enforceable voluntary actions.

(g) The executive office shall conduct a series of public hearings to give interested parties an opportunity to comment on the plan. The executive office shall conduct a portion of these workshops in regions of the state that have the most significant exposure to air pollutants, including, but not limited to, communities with minority populations, communities with low-income populations, or both.

(h) The executive office shall update its plan for achieving the maximum technologically feasible reductions of greenhouse gas emissions at least once every five years.

Section 5.  Global Warming Report

The EOEEA shall monitor the implementation of regulations relative to global warming, and shall, by January 1, 2010 , publish a report and recommendations regarding such implementation.  The report shall include a discussion of the following:--

(1) Whether regulations or other measures undertaken, including distribution of emissions allowances, are equitable and minimize costs and maximize the total benefits to Massachusetts , and encourage early action to reduce greenhouse gas emissions;

(2) Whether activities undertaken to comply with state regulations and efforts disproportionately impact low-income communities;

(3) Whether entities that have voluntarily reduced their greenhouse gas emissions prior to the implementation of this section receive appropriate credit for early voluntary reductions;

(4) Whether activities undertaken pursuant to the regulations complement, and do not interfere with, efforts to achieve and maintain federal and state ambient air quality standards and reduce toxic air contaminant emissions;

(5) Consider overall societal benefits, including reductions in other air pollutants, diversification of energy sources, and other benefits to the economy, environment, and public health;

(6) Whether state actions minimize the administrative burden of implementing and complying with these regulations;

(7) Whether state actions minimize leakage;

(8) Consider the significance of the contribution of each source or category of sources to statewide emissions of greenhouse gases;

(9) Whether greenhouse gas emission reductions achieved are real, permanent, quantifiable, verifiable, and enforceable; and

(10)  Recommendations for future policy action, legislative or otherwise.

This report, first published in 2010, shall be updated and re-issued every 5 years.  The secretary shall file the report with the house clerk, the joint committee on telecommunications, utilities and energy and the joint committee on the environment, natural resources and agriculture. 

Section 6.  Required Emission Reduction Measures

In developing its plan for achieving the statewide greenhouse gas emissions limits, the Commonwealth and its agencies shall promulgate regulations that reduce energy use, increase efficiency and encourage renewable sources of energy in the sectors of energy generation, buildings, and transportation. 

Section 7.  Green Building Revolving Loan Fund. 

The secretary of the executive office of energy and environmental affairs or its designee shall, subject to appropriation, establish a green building revolving loan fund to provide low interest financing for new construction or major renovation projects that exceed the energy efficiency requirements of the state building code by 30%.

Section 8.  Market Based Compliance Mechanisms

The executive office, in consultation with the fiscal agencies of the Commonwealth, may consider the use of market-based compliance mechanisms to address global warming concerns.

(a) Prior to the inclusion of any market-based compliance mechanism, to the extent feasible and in furtherance of achieving the statewide greenhouse gas emissions limit, the executive office shall do all of the following:

(1) Consider the potential for direct, indirect, and cumulative emission impacts from these mechanisms, including localized impacts in communities that are already adversely impacted by air pollution.

(2) Design any market-based compliance mechanism to prevent any increase in the emissions of toxic air contaminants or criteria air pollutants, with particular attention paid to emissions of nitrous oxide, sulfur dioxide, and mercury.

(3) Maximize additional environmental and economic benefits for Massachusetts , as appropriate.

(b) The executive office may adopt regulations governing how market-based compliance mechanisms may be used by regulated entities subject to greenhouse gas emission limits and mandatory emission reporting requirements to achieve compliance with their greenhouse gas emissions limits.

(c) EOEEA and the department may work with the participating Regional Greenhouse Gas Initiative states, and other interested states and Canadian Provinces to develop a plan to expand market-based compliance mechanisms such as the Regional Greenhouse Gas Initiative to other sources and sectors necessary or desirable to facilitate the achievement of the greenhouse gas emissions limits.

(d)  The executive office shall monitor compliance with and enforce any rule, regulation, order, emission limitation, emissions reduction measure, or market-based compliance mechanism adopted by the executive office or department pursuant to this chapter.  In the instance of any violation, by either an incorporated entity or an individual, of any rule, regulation, order, emission limitation, emissions reduction measure, or other measure adopted by the executive office pursuant to this chapter, the department shall impose a civil administrative penalty consistent with section 16 of chapter 21A.

Section 9.  Greenhouse Gas Emissions Advisory Committee

The executive office shall convene an advisory committee, of at least five members, to advise it in overseeing the greenhouse emission reduction measures of this chapter and elsewhere in general or special law. The advisory committee shall be comprised of representatives from communities in the state with the most significant exposure to air pollution, including, but not limited to, communities with minority populations or low-income populations, or both; representatives of organizations with expertise in environmental protection; representatives of organizations with expertise in energy efficiency and renewable energy; and representatives of organizations doing business in the Commonwealth.

            Section 10.   Economic and Technology Advancement Advisory Committee

The executive office shall appoint an Economic and Technology Advancement Advisory Committee to advise the EOEEA on activities that will facilitate investment in and implementation of technological research and development opportunities, including, but not limited to, identifying new technologies, research, demonstration projects, funding opportunities, developing state, national, and international partnerships and technology transfer opportunities, and identifying and assessing research and advanced technology investment and incentive opportunities that will assist in the reduction of greenhouse gas emissions. The committee may also advise the EOEEA on state, regional, national, and international economic and technological developments related to greenhouse gas emission reductions.

Section 11. Commonwealth Utilities; authority

Nothing in this chapter shall affect the authority of the Commonwealth Utilities Commission.

Nothing in this chapter shall affect the obligation of an electrical utility to provide customers with safe and reliable electric service.

Nothing in this chapter shall preclude, prohibit, or restrict the construction of any new facility or the expansion of an existing facility subject to regulation under this chapter, if all applicable requirements are met and the facility is in compliance with regulations adopted pursuant to this chapter.

            Section 12.  Power Plant Performance Standard

      The Commonwealth shall not permit the construction of any new power plant or expansion of any existing power plant where such power plant would have an emissions rate of more than 1,100 lbs of carbon dioxide per megawatt-hour.  In addition, to ensure a net emissions rate that is not more than a new natural gas combined cycle power plant, technologies for electric generation that qualify for energy portfolio standards shall not have a net emissions rate of more than 1,110 lbs of carbon dioxide per megawatt-hour inclusive of useful thermal output, gasification, fuel conversion, and sequestration.

Section 13.  Climate Change Adaptation
(a)  Definitions. 

For the purposes of this section, the following words or phrases shall have the following meanings:-
“Adaptation,” programs, projects and policies designed to strengthen, protect and restore habitat and improve the ability of plant and animal species and natural communities to adapt to and survive to climate change.
“Board,” the climate change advisory board established by subsection (c).
“Habitat” a natural area which, due to its physical or biological features, provides critical elements for the growth and survival of plants or animals including but not limited to natural areas for breeding, feeding, resting, and migrating. Physical or biological features of habitat include, but are not limited to, structure and composition of vegetation; faunal community; soils; water chemistry and quality; and geologic, hydrologic, and microclimatic factors.

(b) State Adaptation Plan

(1)    The executive office of energy and environmental affairs, in consultation with the climate change advisory board established pursuant to subsection (c), shall promulgate a written climate change adaptation plan, subject to periodic revision. 

(2)    The plan shall include a comprehensive assessment of the statewide impacts of climate change on terrestrial, freshwater, estuarine, coastal, and marine habitat.  

(3)    The plan shall be used to develop and implement a statewide climate change adaptation program for the commonwealth. The program shall ensure that state agencies integrate adaptation into agency planning, projects, programs and policies.  Said plan shall consist of the following components:
(i) “research and assessment” to assess adaptation projects and programs that will enable animals, plants and natural communities to adapt to climate change based on the best available science and data;
(ii) "prioritization” to identify and protect animals, plants and natural communities most adversely affected by climate change based on the best available science and data;
(iii) “program and policy development” to integrate the plan into state agency programs and policies;
(iv) “budget” to review existing public funding sources and develop budget recommendations; and
(v) "implementation'' to implement the plan and assess the effectiveness of the plan once implemented. 

(4)    The executive office of energy and environmental affairs shall provide opportunities for public input during the development and implementation of the plan.

(5)    The executive office of energy and environmental affairs shall complete the plan within eighteen months of the effective date of this act. 

(c)  Climate Change Adaptation Advisory Board
The governor shall appoint 13 members of a climate change adaptation advisory board to assist the secretary of energy and environmental affairs to develop and implement the plan pursuant to subsection (b). The advisory board shall include the secretary, or his designee, who shall serve as chair; the commissioner of the division of energy resources, or his designee; the commissioner of the department of fish and game, or his designee; the commissioner of the department of conservation and recreation, or his designee; the commissioner of the department of environmental protection, or his designee; and, the commissioner of the department of agricultural resources, or his designee; a representative of the massachusetts municipal association; and, a representative of a regional planning agency. The secretary shall request the directors of the nature conservancy, mass audubon, the trustees of reservations, environmental league of massachusetts , appalachian mountain club, trust for public land, the union of concerned scientists, and environment northeast to nominate eight candidates for the remaining members of the advisory board. From the nominations received from such organizations, the secretary shall select five candidates who he shall recommend to the governor. The governor shall appoint the remaining five members from the candidates recommended by the secretary.

SECTION 8.  Chapter 30, as appearing in the 2006 official edition, is hereby amended by adding, after section 39S, the following sections:

Section 39T.  Use of Ultra Low Sulfur Diesel Fuel and Best Available Retrofit Technology by the State

(a) For the purposes of this section only, the following terms shall have the following meanings:

“Best Available Retrofit Technology” means technology, verified by the United States Environmental Protection Agency or California Air Resources Board for reducing the emission of pollutants that achieves reductions in particulate matter emissions at the highest classification level for diesel emission control strategies that is applicable to the particular engine and application.  Such technology shall in no event result in a net increase in the emission of nitrogen oxides.

"Heavy duty vehicle" or "vehicle" means any on-road or nonroad vehicle powered by diesel fuel and having a gross vehicle weight of greater than 14,000 pounds.
"Ultra low sulfur diesel fuel" means diesel fuel having sulfur content of 0.0015 per cent of sulfur or less.
US EPA” means the United States Environmental Protection Agency.

(b) Any diesel powered heavy duty vehicle that is owned by, operated by or on behalf of, or leased by or operating under contract to a state agency or state or regional public authority shall be powered by ultra low sulfur diesel fuel.

(c) Any diesel powered heavy duty vehicle that is owned by, operated by or on behalf of, or leased by or operating under a contract to a state agency or state or regional public authority with more than half of its governing body appointed by the governor shall utilize best available retrofit technology for reducing the emission of pollutants.  The commissioner shall promulgate regulations for the implementation of this subdivision specifying procedures for compliance according to the following schedule:

(1) Not less than 33% of the vehicles covered by this subdivision shall employ best available retrofit technology on or before December 31, 2008 .

(2) Not less than 66% of the vehicles covered by this subdivision shall employ best available retrofit technology on or before December 31, 2009

(3) All vehicles covered by this subdivision shall employ best available retrofit technology on or before December 31, 2010 .

(d) This subdivision shall not apply to:

(1) any vehicle subject to a lease or public works contract entered into or renewed prior to July 1, 2008 ;

(2) vehicles that are specially equipped for emergency response by a state authority, office of emergency management, sheriff’s office, police department or fire department, as well as timber harvesting equipment such as harvesters, wood chippers, log skidders, and other processing equipment used exclusively off highway for timber harvesting and logging purposes, and farm equipment;

(3) any on-road vehicle sold as “new” in compliance with the US EPA’s 2007 Heavy-duty Highway Diesel Standards” promulgated by US EPA and published in the Federal Register at 66 Fed. Reg. 5002 on January 18, 2001 , or

(4) any nonroad vehicle sold as “new” in compliance with the US EPA’s Tier 4 Nonroad Diesel Standards” promulgated by US EPA and published in the Federal Register at 69 Fed. Reg. 38958 on June 29, 2004 .

(e) In addition to other provisions for regulations in this section, the Commissioner shall promulgate regulations as necessary and appropriate to carry out the provisions of this act including but not limited to provision of waivers upon written finding by the Commissioner that best available retrofit technology for reducing the emissions of pollutants as required by subdivision (c) of this section is not available for an individual vehicle or class of vehicles.

(f) This section shall not apply where federal law precludes the state from imposing the requirement of this section.

(g) On or before January 1, 2008 and every year thereafter, the Commissioner shall report to the Governor and Legislature on the use of ultra low sulfur diesel fuel and the use of the best available retrofit technology as required under this section.  The information contained in this report shall include, but not be limited to, for each state agency and public authority covered by this section: 

(1) the total number of diesel fuel-powered motor vehicles owned or operated by such agency and authority;

(2) the number of such motor vehicles that were powered by ultra low sulfur diesel fuel;

(3) the total number of diesel fuel-powered motor vehicles owned or operated by such agency and authority having a gross vehicle weight rating of more than 14,000 pounds;

(4) the number of such vehicles that utilized the best available retrofit technology, including a breakdown by motor vehicle model, engine year and the type of technology used for each vehicle;

(5) the number of such motor vehicles that are equipped with an engine certified to the applicable 2007 US EPA standard for particulate matter as set forth in Section 86.007-11 of Title 40 of the Code of Federal Regulations or to any subsequent US EPA standard for particulate matter that is at least as stringent; and

(6) all waivers, findings, and renewals of such findings, which, for each waiver, shall include but not be limited to, the quantity of diesel fuel needed to power diesel fuel-powered motor vehicles owned or operated by such agency and authority; specific information concerning the availability of ultra low sulfur diesel fuel.

(h) The department shall, to the extent practicable, coordinate with regions which have proposed or adopted heavy duty emission inspection programs to promote regional consistency in such programs.

Section 39U. Use of Diesel Retrofit Devices for Waste Haulers

(a) For the purposes of this section only, the following terms shall have the following meanings:

“Level 2 Control” means a Verified Diesel Emission Control Device that achieves a particulate matter (PM) emission reduction of 50% or more compared to uncontrolled engine emission levels.

“Level 3 Control” means a Verified Diesel Emission Control Device that achieves a particulate matter (PM) emission reduction of 85% or more compared to uncontrolled engine emission levels, or that reduces emissions to less than or equal to 0.01 grams of PM per brake horsepower-hour. Level 3 Control includes repowering or replacing the existing diesel engine with an engine meeting USEPA’s 2007 Heavy-duty Highway Diesel Standards, or in the case of a nonroad engine, an engine meeting the USEPA’s Tier 4 Nonroad Diesel Standards.

(b) Any diesel powered waste collection and recycling vehicle in model years between and including 1994 and 2006 that is owned, leased, or contracted to perform the removal or transfer of municipal waste, including residential or commercial waste, or recycling services shall utilize level 3 control retrofit technology for reducing the emission of pollutants.  As of January 1, 2012 , no waste collection or recycling vehicle in model years between and including 1994 and 2006 may be permitted to register without proper demonstration of the required level 3 control retrofit technology. The Commissioner shall promulgate regulations for the implementation of this subdivision specifying procedures for compliance according to the following schedule:

(1) At least 25% of the vehicles covered by this subdivision shall have level 3 control retrofit technology on or before December 31, 2008 .

(2) At least 50% of the vehicles covered by this subdivision shall have level 3 control retrofit technology on or before December 31, 2009

(3) At least 75% of the vehicles covered by this subdivision shall have level 3 control retrofit technology on or before December 31, 2010 .

(4) All vehicles covered by this subdivision shall have level 3 control retrofit technology on or before December 31, 2011 .

(c) Any diesel powered waste collection and recycling vehicle in model years 1993 and earlier that is owned, leased, or contracted to perform the removal or transfer of municipal waste, including residential or commercial waste, or recycling services shall utilize level 2 control retrofit technology for reducing the emission of pollutants.  As of January 1, 2011 , no waste collection or recycling vehicle in model years 1993 and earlier may be permitted to register without proper demonstration of the required level 2 control retrofit technology. The Commissioner shall promulgate regulations for the implementation of this subdivision specifying procedures for compliance according to the following schedule:

(1) At least 25% of the vehicles covered by this subdivision shall have level 3 control retrofit technology on or before December 31, 2008 .

(2) At least 50% of the vehicles covered by this subdivision shall have level 3 control retrofit technology on or before December 31, 2009

(3) At least 75% of the vehicles covered by this subdivision shall have level 3 control retrofit technology on or before December 31, 2010 .

(4) All vehicles covered by this subdivision shall have level 3 control retrofit technology on or before December 31, 2011 .

(d) On or before January 1, 2008 and every year thereafter, the Commissioner shall report to the Governor and Legislature on the use of level 3 and level 2 control retrofit technology on waste collection and recycling vehicles required under this section.  The information contained in this report shall include, but not be limited to: 

(1) the total number of diesel fuel-powered waste collection and recycling vehicles covered by this section;

(2) the number of such diesel vehicles that were powered by ultra low sulfur diesel fuel;

(3) the total number of diesel fuel-powered waste collection and recycling vehicles having a gross vehicle weight rating of more than 14,000 pounds;

(4) the number of such vehicles between and including model years 1994 and 2006;

(5) the number of such vehicles between and including model years 1994 and 2006 that utilized level 3 control retrofit technology, including a breakdown by motor vehicle model, engine year and the type of technology used for each vehicle;

(6) the number of such vehicles in model years 1993 and earlier;

(7) the number of such vehicles in model years 1993 and earlier that utilized level 2 control retrofit technology, including a breakdown by motor vehicle model, engine year and the type of technology used for each vehicle; 

(8) the number of diesel waste collection and recycling vehicles that are equipped with an engine certified to the applicable 2007 US EPA standard for particulate matter as set forth in Section 86.007-11 of Title 40 of the Code of Federal Regulations or to any subsequent US EPA standard for particulate matter that is at least as stringent; and

(9) all waivers, findings, and renewals of such findings, which, for each waiver, shall include but not be limited to, the quantity of diesel fuel needed to power diesel fuel-powered motor vehicles owned or operated by such agency and authority; specific information concerning the availability of ultra low sulfur diesel fuel.

SECTION 9.  Section 61 of Chapter 30, as so appearing, is hereby amended by inserting after the first paragraph the following paragraph:--

“In connection with the consideration and issuance of permits, licenses and other administrative approvals and decisions, reasonably foreseeable climate change impacts, such as additional greenhouse gas emissions, and effects, such as predicted sea level rise, shall be taken into consideration.”

SECTION 10.  Low carbon fuel standard

Section 142K of Chapter 111 of the General Laws, as so appearing, is hereby amended by striking clause (h) in its entirety and inserting in place thereof the following two clauses:--

(h)  The department of environmental protection shall adopt a Low Carbon Fuel Standard (“LCFS”) for transportation fuels by June 30, 2009 . The LCFS shall apply to all refiners, blenders, producers or importers, collectively known as providers, of transportation fuels in Massachusetts .  The LCFS shall be measured on a full fuels cycle basis; and may be met through market-based methods by which providers exceeding the performance required by a LCFS shall receive credits that may be applied to future obligations, or traded to providers not meeting the LCFS.  The process for establishing the LCFS shall be as follows:

(1) Not later than January 1, 2009 , the department of environmental protection, in consultation with the department and the executive office of transportation, shall adopt regulations establishing a low carbon fuel standard for all motor vehicle fuels sold in the commonwealth.  Such regulations shall establish a declining standard for greenhouse gas emissions measured in CO2-equivalent gram per unit of fuel energy sold, sufficient to achieve a ten percent reduction in the carbon content of all passenger vehicle fuels sold in the commonwealth by 2020.

(2) Said agencies shall examine the regulations and implementation of a low carbon fuel standard in California and other states and consider ways to coordinate and issue public findings on both such matters, and shall, if applicable, use the life-cycle analysis methods employed by the California Air Resources Board to determine the carbon intensity of fuel.

(3) Said agencies shall examine the possibility of a regional approach to implementing the low carbon fuel standard and issue public findings on such matter. 

(j)  The responsibilities hereunder shall be in addition to all other responsibilities imposed by any other general or special law or rule or regulation.”

SECTION 11.  Expanded Passenger and Freight Rail Service

The Governor, in cooperation with the New England Governors Association, shall investigate the opportunities for expansion of high speed and light rail passenger rail service and expanded rail freight movement within the Northeast region.  Such investigation shall include consideration of new rail corridors, opportunities to reduce vehicle miles traveled, and an analysis of the economic, environmental and greenhouse gas benefits of such expanded passenger and freight rail service.

SECTION 12.   Nothing in this act shall restrict the executive office from adopting greenhouse gas emission limits or emission reduction measures prior to January 1, 2011 , imposing those limits or measures prior to January 1, 2012 , or providing early reduction credit where appropriate, nor shall this act be seen as preventing any more stringent limits on emissions.

SECTION 13.  Study Commission

There shall be a special commission to study the impacts and costs of potential measures and policy proposals to reduce greenhouse gas emissions in the Commonwealth. 

The commission shall consist of three members of the house of representatives, two of the members to be appointed by the speaker of the house, and one member to be appointed by the minority leader of the house, and three members of the senate, two of the members to be appointed by the senate president, and one member to be appointed by the minority leader of the senate, as well as four members to be appointed by the governor.  The governor’s appointees shall include a representative from an environmental advocacy organization, a representative from the renewable energy industry, a representative from the Massachusetts Municipal Association, and a representative from the National Association of Industrial and Office Properties. 

The commission shall consider the following:--

(1)  Incentives for the development of residential wind turbines, including neighborhood turbines;

(2)  Development of a model municipal zoning ordinance for siting of residential wind turbines;

(3)  Incentives to encourage construction of green buildings;

(4)  Statewide adoption of appliance efficiency standards; and

(5)  Incentives to encourage growth of the renewable energy sector.

SECTION 14.  Severability

The provisions of this act are severable.  If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application

.