SENATE, No. 2468

[SENATE, January 9, 2008 – S2468, being the text of Senate, No. 2457, printed as amended)]

Version with line numberspdf logo

The Commonwealth of Massachusetts

Seal of the Commonwealth of Massachusetts

In the Year Two Thousand and Seven.


AN ACT TO GENERATE RENEWABLE ENERGY AND EFFICIENCY NOW.

Whereas, The deferred operation of this act would tend to defeat its purpose, which is forthwith to generate renewable energy and promote efficiency, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public safety and convenience

 

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.   Section 9A of chapter 7 of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by adding the following 5 paragraphs:-

When purchasing new motor vehicles, the commonwealth shall purchase hybrid or alternative fuel vehicles, to the maximum feasible extent and consistent with the ability of such vehicles to perform their intended duties, at a rate of not less than 5 per cent annually for all new motor vehicle purchases so that, taking into account the existing number of such vehicles owned and operated by the commonwealth, not less than 50 per cent of the motor vehicles owned and operated by the commonwealth shall be hybrid or alternative fuel vehicles by the year 2018. The average fuel consumption, for the entire fleet of passenger vehicles owned or leased by the commonwealth, except those vehicles used for emergency purposes, security purposes and special services, shall be equal to or more efficient than the United States Corporate Average Fuel Economy, known as CAFE, standards as established by the National Highway Traffic Safety Administration, known as the NHTSA, and the United States Environmental Protection Agency.

The division of operational services shall forward to the division of energy resources all requests for motor vehicle acquisitions by agencies of the commonwealth. The division of energy resources shall thereafter report to the division of operational services regarding the availability of a hybrid or alternative fuel vehicle that will feasibly achieve the intended use designated by the requesting agency.

The division of capital asset management and maintenance, in consultation with the division of energy resources, shall develop a system of protocols for the acquisition of alternative fuel vehicles and hybrids, including identifying the potential for acquisition of heavy, medium and light-duty vehicles, based on the anticipated mileage and usage of such vehicles, and the effectiveness of single fuel or dual fuel alternative fuel vehicles for the particular purpose identified.
The division of energy resources shall submit to the secretary of administration and finance, the clerks of the senate and house of representatives and the joint committee on state administration and regulatory oversight an annual statement detailing the progress, as well as any additional relevant information, of both the acquisition of hybrid or alternative fuel vehicles by the commonwealth and the acquisition of vehicles by the commonwealth that have average fuel consumption which is equal to or more efficient than the aforemenentioned CAFE standard.

SECTION 2. Said chapter 7 is hereby further amended by inserting after section 39C the following section:-

Section 39D. (a) The commissioner shall require a state agency that initiates the construction of a new facility owned or operated by the commonwealth or a renovation of an existing facility owned or operated by the commonwealth when the renovation costs exceed $25,000 and includes the replacement of systems, components or other building elements which affect energy or water consumption to design and construct or renovate the facility in a manner that minimizes the life-cycle cost of the facility by utilizing energy efficiency, water conservation or renewable energy technologies under the following criteria:
(i) The state agency shall utilize alternate technologies when the life-cycle cost analysis conducted under subsection (b) shows that such systems are economically feasible.

(ii) Each new educational facility, including a municipal educational facility financed through the school building assistance program, for which the projected demand for hot water exceeds 1,000 gallons per day or which operates a heated swimming pool, shall be constructed, whenever economically and physically feasible, with a solar or other renewable energy system as the primary energy source for the domestic hot water system or swimming pool of the facility.
(iii) The division of capital asset management and maintenance or the state agency shall, in the design, construction, equipping and operation of such facilities, coordinate these efforts with the division of energy resources in order to maximize reliance on, and the benefits of, renewable energy research and investment activities.
(iv) Higher education construction projects shall include green buildings standards as included in the MA-CHPS Green Schools Guidelines.
(b)  The division of capital asset management and maintenance or the state agency initiating the construction or renovation of a facility as described in subsection (a) shall conduct a life-cycle cost analysis of any such facility’s proposed design that evaluates the short-term and long-term costs and the technical feasibility of using alternate technologies to provide lighting, heat, water heating, air conditioning, refrigeration, gas or electricity.  In calculating life-cycle costs, a state agency shall include the value of avoiding carbon emissions, creating renewable energy certificates and other environmental benefits created from the utilization of alternate technologies, as applicable.  This value shall be equal to the bid price of the published market value of any such benefit and shall be assumed to increase at a rate of 5 per cent per year above the estimated rate of inflation for any year in which there are no published values.  To calculate life-cycle costs, a state agency shall use a discount rate equal to the rate that the commonwealth’s tax-exempt long-term bonds are yielding at the time of said calculation and shall assume that the cost of fossil fuels and electricity will increase at the rate of 3 per cent per year above the estimated rate of inflation.
(c) Notwithstanding section 11C of chapter 25A or any regulations issued thereunder, the division of capital asset management and maintenance may procure energy management services jointly with a state agency or a building authority that is procuring energy or related services. Notwithstanding subsection (d) of said section 11C, said section 11C shall apply to the extent feasible as determined by the commissioner of energy resources.
(d) For purposes of this section, the term “economically feasible” shall mean that the cost of installing and operating an alternate technology is lower than the cost of installing and operating the energy, energy-using technology or water-using technology that would otherwise be installed, as determined by a life-cycle cost analysis.
(e) The division of capital asset management and maintenance or the state agency initiating the construction or renovation of a facility subject to the requirements of subsection (a) shall file with the division of capital asset management and maintenance and the division of energy resources a report detailing the agency’s compliance with this section with respect to each such facility.
(f)  The division of energy resources shall issue an annual report to the general court detailing the compliance record of all state agencies with the construction and renovation provisions of this section.

SECTION 3.  Chapter 12 of the General Laws is hereby amended by striking out section 11E, as appearing in the 2006 Official Edition, and inserting in place thereof the following section:-

Section 11E. (a) The attorney general may participate, appear and intervene in any regulatory or judicial proceedings, federal or state, in which the interests of ratepayers in the commonwealth may be involved, including, but not limited to, a matter affecting utility services rendered or involving the rates, charges, prices, tariffs or practices of an electric, gas, generator, transmission, telephone, telegraph, voice over internet protocol, or cable or satellite television company doing business in the commonwealth.  The attorney general shall have standing to intervene in all proceedings before the department of public utilities and the department of telecommunications and cable.

For the purpose of such participation, appearance or intervention, the attorney general may expend such funds as may be appropriated therefor; provided, however, that such expenditures shall not exceed annually the amount assessed against such electric, gas, telephone and telegraph company under section 3 of chapter 24A, notwithstanding the provisions of subsection (b).
The attorney general shall not expend any of such funds if the expenditure shall conflict with his duties under section 3.  
            (b) In the performance of his duties under this section, the attorney general may retain an expert or a consultant to assist in proceedings before the department of public utilities or the department of telecommunications and cable. If the attorney general determines that the services of an expert or a consultant are necessary or desirable in a proceeding, he shall file notice in the proceeding that includes the type of expert or consultant sought and the anticipated cost.  Upon the filing of such notice, the department before which the proceeding is commencing shall allow full parties to the proceeding the opportunity to comment regarding the necessity or desirability of such services.  Absent a showing that the costs proposed are unnecessary for the attorney general to represent ratepayer interests in the proceeding or that such costs are not reasonable or proper, the use of the expert or consultant shall be approved.  Costs for an expert or a consultant shall not exceed $150,000 per proceeding unless approved by the department based upon exigent circumstances, including the complexity of the proceeding.   All reasonable and proper expenses, as defined in this section, shall be borne by the affected company in the proceeding and shall be paid by such company at such times and in such manner as the attorney general directs. All reasonable and proper costs and expenses, as defined in this section, shall be recognized by the departments for all purposes as proper business expenses of the affected company, subject to recovery through rates.
            (c) The attorney general may request, orally or in writing, that any company subject to the jurisdiction of the department of public utilities or the department of telecommunications and cable respond to not more than 15 information requests, including subparts, per calendar month regarding any matter related to the rates, charges, tariffs, books or service quality of the company, and the company shall answer these information requests fully and completely in a reasonably prompt manner, not to exceed 30 calendar days from the date of issuance, regarding any issue that is within the jurisdiction of the department.  Department rules pertaining to the scope of questions and objections to discovery shall apply to any such request and the department shall have jurisdiction to rule on any objections or motions to compel.  If the company fails to answer the information requests in a reasonably prompt manner, the attorney general may request enforcement of this subsection from the department having jurisdiction over the company.

SECTION 4.
  Chapter 13 of the General Laws is hereby amended by inserting after section 97 the following section:-
Section 97A. (a) The board of registration of home inspectors, in consultation with the state board of building regulations and standards, the division of energy resources and the energy efficiency advisory council, shall develop requirements and promulgate regulations establishing a home energy scoring program to require the scoring by licensed personnel at the time of sale of single-family residential dwellings and multiple-family residential dwellings with less than 5 dwelling units. The board of registration of home inspectors shall consider other state home scoring programs and any relevant federal programs when developing such requirements and promulgating such regulations. Components scored by the program shall include, but not be limited to: fixtures, heating, ventilation, air conditioning, building envelope and insulation, lighting and hot water systems.
(b)  The board may include in its regulations any provisions requiring sellers of such dwellings to reasonably provide potential buyers with copies of utility bills and, if applicable, oil heating bills for the dwelling for charges incurred during the prior calendar year; and provisions requiring utilities and heating oil distributors to provide potential sellers billing information for the dwelling for charges incurred during the prior calendar year if the seller has not retained such bills.
(c)  The regulations shall include provisions for training and licensure; standards of professional and ethical conduct for home energy scoring personnel; and the establishment of reasonable fees for the services of such personnel, to be paid by the sellers or purchasers of dwellings. These regulations shall provide waivers including, but not limited to, those by potential buyers, of the home energy audit conducted under the home energy scoring program and that any construction improvements included within the audit shall not be required to be performed.
(d) Before implementation of any regulations established under this section, the board of registration of home inspectors shall report to the senate and house committees on ways and means and the joint committees on consumer protection and professional licensure and telecommunications, utilities and energy on the anticipated added costs, if any, to sellers or purchasers of dwellings relating to the implementation of this section.  The report shall include any recommendations deemed appropriate by the board, including, but not limited to, any added costs being absorbed by any existing energy efficiency program funding sources or mechanisms.

SECTION 5. Chapter 21A of the General Laws is hereby amended by inserting after section 18A the following section:-
Section 18B.  (a) The secretary, in conjunction with the Massachusetts Technology Park Corporation, shall create a green communities program for communities that wish to implement a comprehensive program to reduce greenhouse gas emissions through the promotion of efficiency, renewable energy, transportation and other strategies. The standards for being designated a green community shall be developed and administered by the secretary.  The standards shall include the requirement that a community create and submit a plan to leverage state, federal, local and voluntary efforts to achieve measurable and defined environmental goals based on a checklist of potential strategies.
(b) The secretary shall direct program administrators of energy efficiency funds and the Massachusetts Renewable Energy Trust Fund to assist green communities in achieving their community based goals and objectives; provided, however, that funds shall be allocated, and low-income programs shall be implemented, under subsection (c) of section 19 of chapter 25.  Such assistance may include:  (i) developing and delivering targeted services to a green community; (ii) increasing the proportional share of resources available to a green community based on the amount of leveraged funds that the community proposes to incorporate and deliver as part of its plan and the availability of overall program funds; and (iii) making reasonable efforts to create customized strategies in support of the community’s plan.  The assistance to be provided to green communities by administrators of energy efficiency funds and the Massachusetts Renewable Energy Trust Fund shall not result in the expenditure, award, encumbrance or application of more than 20 per cent of the funds expended, awarded, encumbered or otherwise applied by each administrator in any single calendar year.
(c)  The secretary shall expedite state funding for business development and transportation development and siting approvals for projects associated with an approved green communities plan.
(d) The secretary shall establish a program to support any community that institutes a project to inventory and reduce its environmental footprint. This program shall include directed support from the energy efficiency and renewable energy program administrators to provide a checklist on how to conduct an environmental footprint analysis and to provide input into monitoring and calculating progress towards reducing that footprint.
(e) A green community may create and enforce building codes on both new and existing facilities within its jurisdiction, which will assist green communities in achieving their community based goals and objectives; provided, however, that a green community shall ensure that loans are available to the owners of such facilities to perform projects required by such building codes and that the cost of installing and operating such projects is lower than either, in the case of existing facilities where no renovation is proposed, the cost of doing nothing, or, in the case of existing facilities where a renovation is proposed or in the case of new facilities, the cost of installing and operating the energy or energy-using technology that would otherwise be installed, as determined by a life-cycle cost analysis.
A green community may issue from time to time bonds or notes in order to finance all or a portion of the costs of the projects authorized under this subsection.  Notwithstanding any provision of chapter 44 to the contrary, the maturities of any such bonds issued by a municipality hereunder either shall be arranged so that for each issue the annual combined payments of principal and interest payable in each year, commencing with the first year in which a principal payment is required, shall be as nearly equal as practicable in the opinion of the municipal treasurer or shall be arranged in accordance with a schedule providing for a more rapid amortization of principal.  The first payment of principal of each issue of bonds or of any temporary notes issued in anticipation of the bonds shall be not later than 5 years after the anticipated date of commencement of the regular operation of such projects financed thereby, as determined by the municipal treasurer, and the last payment of principal of the bonds shall be not later than 25 years from the date of the bonds.  Indebtedness incurred under this section shall not be included in determining the limit of indebtedness of a municipality under section 10 of said chapter 44 but, except as otherwise provided herein, shall be subject to said chapter 44.  A green community may place tax liens on facilities within its jurisdiction in order to facilitate loans for investments in such facilities, which will assist green communities in achieving their community based goals and objectives.
A green community may establish an enterprise fund under section 53F1/2 of chapter 44 for the receipt of all applicable revenues from the owners of facilities with projects borrowing funds from a green community.  Such receipts shall be used to pay the costs of administering loans and to pay the principals and interest on any bonds or notes issued therefor.
           

SECTION 6. Said chapter 21A is hereby further amended by adding the following section:-
Section 21.  The secretary, in conjunction with the secretary of administration and finance, may design and implement a competitive bidding process for the competitive procurement of electric generation on behalf of any agency, executive office, department, board, commission, bureau, division or authority of the commonwealth procuring electricity from a local distribution company through basic service under subsection (e) of section 1B of chapter 164.

SECTION 7.  Chapter 25 of the General Laws is hereby amended by inserting after section 5D the following section:-
      Section 5E.  The department shall periodically audit all gas and electric companies subject to its jurisdiction, including, but not limited to, review of the following documents: (i) all financial statements, the balance sheet, the income statement, the statement of cash flows, the statement of retained earnings, the notes to the financial statements and the information in the annual return to the department; (ii) documents concerning the reconciling mechanisms related to rates, prices, charges or costs and savings related to a merger, acquisition or consolidation for 3 years following the merger, acquisition or consolidation; and (iii) documents concerning service quality measure statistics and service quality performance at least every 3 years or whenever service quality penalties equal or exceed 50 per cent of the maximum.  Upon written complaint of the attorney general requesting an independent audit of any company subject to the department’s jurisdiction, the department shall commence a proceeding within 30 days of receipt of the complaint for the purpose of ordering the requested audit in a reasonable time.  The results of any audit so ordered shall be filed promptly with the department and each audit shall be paid for by the company that is the subject of the audit.

SECTION 8. Said chapter 25 is hereby further amended by inserting after section 18 the following section:-
 Section 18A. The commission may make an assessment against each steam distribution company under the jurisdictional control of the department. Each steam distribution company shall annually report by March 31 its intrastate operating revenues for the previous calendar year to the department.  The assessments shall be apportioned according to each steam distribution company’s intrastate operating revenues, to produce an annual amount not greater than $600,000, as shall be determined and certified annually by the commission as sufficient to reimburse the commonwealth for funds appropriated by the general court for the operation and general administration of the department and for the cost of fringe benefits as established by the commissioner of administration under section 5D of chapter 29, including group life and health insurance, retirement benefits, paid vacations, holidays and sick leave. In no instance shall the assessment against any individual steam distribution company be made at a rate exceeding 0.2 per cent of such company’s intrastate operating revenues.
Each company shall pay the amount assessed against it within 30 days after the date of the notice of assessment from the department. Such assessments collected by the department shall be credited to the General Fund

SECTION 9. Said chapter 25 is hereby further amended by striking out section 19, as appearing in the 2006 Official Edition, and inserting in place thereof the following section:-
Section 19. (a) The department shall require a mandatory charge of 2.5 mills per kilowatt-hour for all consumers, except those served by a municipal lighting plant, to fund energy efficiency programs including, but not limited to, demand side management programs.  The programs shall be administered by the electric distribution companies and by municipal aggregators with energy plans certified by the department under subsection (b) of section 134 of chapter 164.  In addition to the aforementioned mandatory charge, such programs shall also be funded by other funding as approved by the department after consideration of: (i) the effect of any rate increases on residential and commercial consumers; (ii) the availability of other private or public funds, utility administered or otherwise, that may be available for energy efficiency or demand resources; and (iii) whether past programs have lowered the cost of electricity to residential and commercial consumers.  In authorizing such programs, the department shall ensure that they are delivered in a cost-effective manner capturing all available efficiency opportunities and utilizing competitive procurement processes to the fullest extent practicable.
(b) The department may approve and fund gas energy efficiency programs proposed by gas distribution companies including, but not limited to, demand side management programs.  Energy efficiency activities eligible for funding under this section shall include geothermal heating and cooling projects.  Funding may be supplemented by funds authorized by section 21. The programs shall be administered by the gas distribution companies.  In authorizing such programs, the department shall ensure that they are delivered in a cost-effective manner capturing all available efficiency opportunities and utilizing competitive procurement processes to the fullest extent practicable.
(c)  Electric and gas energy efficiency program funds shall be allocated to customer classes, including the low-income residential subclass, in proportion to their contributions to those funds; provided, however, that at least 10 per cent of the amount expended for electric energy efficiency programs and at least 20 per cent of the amount expended for gas energy efficiency programs shall be spent on comprehensive low-income residential demand side management and education programs.  The low-income residential demand side management and education programs shall be implemented through the low-income weatherization and fuel assistance program network and shall be coordinated with all electric and gas distribution companies in the commonwealth with the objective of standardizing implementation.  Such programs shall be screened only through cost-effectiveness testing which compares the value of program benefits to program costs to ensure that a program is designed to obtain energy savings and system benefits with value greater than the costs of the program.

SECTION 10.  Section 20 of said chapter 25, as so appearing, is hereby amended by inserting after the first sentence the following sentence:-  Notwithstanding any general or special law to the contrary: (i) a municipal lighting plant which does not supply generation service outside its own service territory or does not open its service territory to competition may elect to assess and remit a mandatory charge per kilowatt-hour upon its electricity consumers on the same terms and conditions as apply to the charge imposed on consumers residing in competitive distribution service territories under this paragraph and subsection (c); provided, however, that such an election by a municipal lighting plant shall be irrevocable and shall not be deemed to be supplying generation service outside its service territory or opening its service territory to competition at the retail level for the purposes of the first sentence of this paragraph; and (ii) in administering the Massachusetts Renewable Energy Trust Fund, the Massachusetts Technology Park Corporation, doing business as the Massachusetts Technology Collaborative, shall not make any grant or loan or provide any subsidy from the trust fund to any municipal lighting plant or consumer residing in the distribution service territory of such municipal lighting plant unless: (A) a mandatory charge per kilowatt-hour is assessed against all consumers residing in the distribution service territory and remitted to the collaborative under the preceding sentence or clause (i); (B) the grant or subsidy is made under paragraph (2) of subsection (f) of section 4E of chapter 40J; or (C) the board of directors of the collaborative, as a condition precedent to any such grant, loan or subsidy, shall have determined and incorporated into the minutes of its proceedings findings that: (1) any such grant, loan or subsidy is intended for the principal purpose of generating public benefits for those consumers who reside in distribution service territories in which the mandatory charge is so imposed and remitted and will generate only incidental private benefits to the recipient or others residing in a distribution service territory in which the mandatory charge is not so imposed and remitted; and (2) the facts and circumstances associated with the recipient or the residence of the recipient provide unique or extraordinary opportunities to advance the public purposes of the trust fund over those opportunities available through grants or subsidies made to recipients residing in distribution service territories in which such a mandatory charge is assessed and remitted.

SECTION 11.  Said chapter 25 is hereby further amended by adding the following 2 sections:-
            Section 21.  (a)  To mitigate capacity and energy costs for all customers, the department shall ensure that, subject to subsection (c) of section 19, electric and natural gas resource needs shall first be met through all available energy efficiency and demand reduction resources that are cost effective or less expensive than supply.  The cost of supply shall be determined by the department with consideration of the average cost of generation to all customer classes over the previous 24 months.
            (b)(1) Every 3 years, by July 31, the electric distribution companies and municipal aggregators with certified efficiency plans shall jointly prepare an electric efficiency investment plan and the natural gas distribution companies shall jointly prepare a natural gas efficiency investment plan. Each plan shall provide for the acquisition of all available energy efficiency and demand reduction resources that are cost effective or less expensive than supply and shall be prepared in coordination with the energy efficiency advisory council established by section 22.  Each plan shall provide for the acquisition, with the lowest reasonable customer contribution, of all of the cost effective energy efficiency and demand reduction resources that are available from municipalities and other governmental bodies.
            (2) A plan shall include: (i) an assessment of the estimated lifetime cost, reliability and magnitude of all available energy efficiency and demand reduction resources that are cost effective or less expensive than supply; (ii) the amount of demand resources, including efficiency, conservation, demand response and load management, that are proposed to be acquired under the plan and the basis for this determination; (iii) the estimated energy cost savings that the acquisition of such resources will provide to electricity and natural gas consumers, including, but not limited to, reductions in capacity and energy costs and increases in rate stability and affordability for low-income customers; (iv) a description of programs, which may include, but which shall not be limited to: (A) efficiency and load management programs; (B) demand response programs; (C) programs for research, development and commercialization of products or processes which are more energy-efficient than those generally available; (D) programs for development of markets for such products and processes, including recommendations for new appliance and product efficiency standards; (E) programs providing support for energy use assessment, real time monitoring systems, engineering studies and services related to new construction or major building renovation, including integration of such assessments, systems, studies and services with building energy codes programs and processes, or those regarding the development of high performance or sustainable buildings that exceed code; (F) programs for the design, manufacture, commercialization and purchase of energy-efficient appliances and heating, air conditioning and lighting devices; (G) programs for planning and evaluation; (H) programs providing commercial, industrial and institutional customers with greater flexibility and control over demand side investments funded by the programs at their facilities; and (I) programs for public education regarding energy efficiency and demand management; provided, however, that not more than 1 per cent of the fund shall be expended for items (C) and (D) collectively, without authorization from the advisory council; (v) a proposed mechanism which provides performance incentives to the companies based on their success in meeting or exceeding the goals in the plan; (vi) the budget that is needed to support the programs; (vii) a fully reconciling funding mechanism which may include, but which shall not be limited to, the charge authorized by section 19; (viii) the estimated amount of reduction in peak load that will be reduced from each option and any estimated economic benefits for such projects including job retention, job growth or economic development; and (ix) data showing the percentage of all monies collected that will be used for direct consumer benefit, such as incentives and technical assistance to carry the plan.  With the approval of the council, the plan may also include a mechanism to prioritize projects that have substantial benefits in reducing peak load, reducing the energy consumption or costs of municipalities or other governmental bodies, or that have economic development, job creation or job retention benefits.
            (3) A program included in the plan shall be screened through cost-effectiveness testing which compares the value of program benefits to the program costs to ensure that the program is designed to obtain energy savings and system benefits with value greater than the costs of the program. Program cost-effectiveness shall be reviewed periodically by the department and by the energy efficiency advisory council.  If a program fails the cost-effectiveness test as part of the review process, it shall either be modified to meet the test or shall be terminated.
            (c) Each plan prepared under subsection (b) shall be submitted for approval and comment by the energy efficiency advisory council every 3 years by July 31.  The electric and natural gas distribution companies and municipal aggregators shall provide any additional information requested by the council that is relevant to the consideration of the plan.  The council shall review the plan and any additional information and shall submit its approval or comments to the electric and natural gas distribution companies and municipal aggregators not later than 3 months after submission of the plan.  The electric and natural gas distribution companies and municipal aggregators may make any changes or revisions to reflect the input of the council.
            (d)(1) The electric and natural gas distribution companies and municipal aggregators shall submit their respective plans, together with the council’s approval or comments and a statement of any unresolved issues, to the department every 3 years by October 31. The department shall consider the plans and shall provide an opportunity for interested parties to be heard in a public hearing.
  (2) Not later than 90 days after submission of a plan, the department shall issue a decision on the plan which ensures that the electric and natural gas distribution companies have identified and shall capture all energy efficiency and demand reduction resources that are cost effective or less expensive than supply and shall approve, modify and approve, or reject and require the resubmission of the plan accordingly.  The department shall approve a fully reconciling funding mechanism for the approved plan and, in the case of municipal aggregators, a fully reconciling funding mechanism that requires coordination between the distribution company and municipal aggregator to ensure that program costs are collected, allocated and distributed in a cost effective, fair and equitable manner.  The department shall determine the effectiveness of the plan on an annual basis. 
            (3)  Each electric and natural gas plan shall be in effect for 3 years.
(e) To the extent an electric or natural gas distribution company or municipal aggregator has not reasonably complied with the plan, the department may open an investigation. In any such investigation, the utility company or aggregator shall have the burden of proof to show whether it had good cause for failing to reasonably comply with the plan. If the utility company or aggregator does not meet its burden, the department may levy a fine of not more than the product of $0.05 per kilowatt-hour or $1 per therm times the shortfall of kilowatt-hours saved or therms saved, as applicable, depending upon the facts and circumstances and degree of fault, which shall be paid to the Massachusetts Technology Park Corporation within 60 days after the end of the year in which the department levied the fine.  The fine shall not impact ratepayers. The division of energy resources shall oversee the use of the funds held by the Massachusetts Technology Park Corporation under this subsection so as to maximize the amount of energy efficiency achieved.
Section 22. (a) The department shall appoint and convene an energy efficiency advisory council which shall consist of not more than 12 members, including at least 1 person representing each of the following: (i) residential consumers, (ii) the low-income weatherization and fuel assistance program network, (iii) the environmental community, (iv) businesses, including large C&I end-users, (v) the manufacturing industry, (vi) energy efficiency experts, (vii) organized labor, (viii) the department of environmental protection, (ix) the attorney general, (x) the executive office of housing and economic development, (xi) the Massachusetts Technology Park Corporation; and (xii) the division of energy resources.  Interested parties shall apply to the department for designation as members.  Members shall serve for terms of 5 years and may be reappointed.  The commissioner of energy resources shall serve as chair of the council.  A representative of energy efficiency experts shall not have a contractual relationship with any electric or natural gas distribution company, electricity or natural gas provider, or any municipal aggregator.  There shall be 1 non-voting, ex-officio member from each of the electric and natural gas distribution utilities, 1 from each of the approved municipal aggregators, 1 from the heating oil industry and 1 from the energy efficiency businesses. 
 (b) The council shall, as part of the approval process by the department, seek to maximize net economic benefits through energy efficiency and load management resources and to achieve energy, capacity, climate and environmental goals through a sustained and integrated statewide energy efficiency effort.  The council shall review and approve demand resource program plans and budgets, work with program administrators in preparing energy resource assessments, determine the economic, system reliability, climate and air quality benefits of efficiency and load management resources, conduct and recommend relevant research, and recommend long term efficiency and load management goals to maximize economic savings and achieve environmental goals.  Approval of efficiency and demand resource plans and budgets shall require a two-thirds majority vote.  The council shall, as part of its review of plans, examine opportunities to offer joint programs providing similar efficiency measures that save 2 or more fuel resources or to coordinate programs targeted at saving 2 or more fuel resources.  Any costs for joint programs shall be allocated equitably among the efficiency programs.
            (c) The council may retain expert consultants; provided, however, that such consultants shall not have any contractual relationship with an electric or natural gas distribution company or provider doing business in the commonwealth or any affiliate of such company.The council shall annually submit to the department a proposal regarding the level of funding required for the retention of expert consultants and reasonable administrative costs.  The proposal shall be approved by the department either as submitted or as modified by the department.  The department shall allocate funds sufficient for these purposes from the natural gas and electric efficiency funding authorized under section 19; provided, however, that such allocation shall not exceed 1 per cent of such funding on an annual basis.   The consultants used under this section shall be experts in energy efficiency and shall be independent.
(d) The electric and natural gas distribution companies and municipal aggregators shall provide quarterly reports to the council on the implementation of their respective plans.  The reports shall include a description of the program administrator’s progress in implementing the plan, a summary of the savings secured to date and such other information as the council shall determine.  The council shall provide an annual report to the department and the joint committee on telecommunications, utilities and energy on the implementation of the plan which includes descriptions of the programs, expenditures, cost-effectiveness and savings and other benefits during the previous year.

SECTION 12.  Section 3 of chapter 25A of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by inserting after the definition of “Energy management services” the following definition:-
            “Energy savings”, a measured reduction in fuel, energy, operating or maintenance costs resulting from the implementation of energy conservation measures or projects; provided, however, that any payback analysis to evaluate the energy savings of a geothermal energy system to provide heating, cooling or water heating over its expected lifespan shall include gas and electric consumption savings, maintenance savings and shall use an average escalation rate based on the most recent information for gas and electric rates compiled by the Energy Information Administration of the United States Department of Energy.
            Marine or hydrokinetic energy”, electrical energy from: (i) waves, tides and currents in oceans, estuaries and tidal areas; (ii) free-flowing water in rivers, lakes and streams; (iii) free-flowing water in man-made channels; or (iv) differentials in ocean temperature, called ocean thermal energy conversion.

SECTION 13.  Section 5 of said chapter 25A, as so appearing, is hereby amended by striking out, in lines 2 and 3, the words “energy, the joint committee on government regulations”, and inserting in place thereof the following words:-  telecommunications, utilities and energy.
           
SECTION 14.  Section 10 of said chapter 25A is hereby repealed.

SECTION 15.  Said chapter 25A is hereby further amended by striking out section 11F, as appearing in the 2006 Official Edition, and inserting in place thereof the following 2 sections:- 
Section 11F.  (a) The division of energy resources shall establish a renewable energy portfolio standard for all retail electricity suppliers selling electricity to end-use customers in the commonwealth. By December 31, 1999, the division shall determine the actual percentage of kilowatt-hours sales to end-use customers in the commonwealth which is derived from existing renewable energy generating sources. Every retail supplier shall provide a minimum percentage of kilowatt-hours sales to end-use customers in the commonwealth from new renewable energy generating sources, according to the following schedule: (i) an additional 1 per cent of sales by December 31, 2003, or one calendar year from the final day of the first month in which the average cost of any renewable technology is found to be within 10 per cent of the overall average spot-market price per kilowatt-hour for electricity in the commonwealth, whichever is sooner; (ii) an additional one-half of 1 per cent of sales each year thereafter until December 31, 2009; and (iii) an additional 1 per cent of sales every year thereafter. For the purpose of this subsection, a new renewable energy generating source is one that begins commercial operation after December 31, 1997, or that represents an increase in generating capacity after December 31, 1997, at an existing facility.  Commencing on January 1, 2008, such minimum percentage requirement shall be known as the “Class I” renewable energy generating source requirement.
(b) For the purposes of this section, a renewable energy generating source is one which generates electricity using any of the following: (i) solar photovoltaic or solar thermal electric energy; (ii) wind energy; (iii) ocean thermal, wave or tidal energy; (iv) fuel cells utilizing renewable fuels; (v) landfill gas; (vi) waste-to-energy which is a component of conventional municipal solid waste plant technology in commercial use; (vii) naturally flowing water and hydroelectric; (viii) low emission advanced biomass power conversion technologies using such fuels such as wood, by-products or waste from agricultural crops, food or animals,  energy crops, biogas, liquid biofuel including but not limited to biodiesel, organic refuse-derived fuel, or algae; and (ix) geothermal energy; provided, however, that the calculation of a percentage of kilowatt-hours sales to end-use customers in the commonwealth from new renewable generating sources shall exclude clauses (vi) and (vii) herein. The division may also consider any previously operational biomass facility retrofitted with advanced conversion technologies as a renewable energy generating source.  A renewable energy generating source may be located behind the customer meter within the ISO-NE, as defined in section 1 of chapter 164, control area if the output is verified by an independent verification system participating in the New England Power Pool Generation Information System, in this section called NEPOOL GIS, accounting system and approved by the division.
(c) New renewable energy generating sources meeting the requirements of this subsection shall be known as Class I renewable energy generating sources. For the purposes of this section, a Class I renewable energy generating source is one that began commercial operation after December 31, 1997, or represents the net increase from incremental new generating capacity after December 31, 1997 at an existing facility, where the facility generates electricity using any of the following:  (i) solar photovoltaic or solar thermal electric energy; (ii) wind energy; (iii) ocean thermal, wave or tidal energy; (iv) fuel cells utilizing renewable fuels; (v) landfill gas; (vi) energy resulting from new hydroelectric facilities regulated by FERC or incremental energy from increased capacity or efficiency improvements at existing hydroelectric facilities regulated by the Federal Regulatory Energy Commission, so long as such energy from new facilities or from increased capacity and efficiency does not involve pumped storage of water and meets low impact standards as established by the department of environmental protection, in consultation with the division and the department of fish and game; provided, however, that only energy from new facilities up to 25 megawatts or attributable to improvements  that incrementally increase capacity by up to 25 megawatts at an existing hydro electric facility shall be considered new renewable energy; (vii) low emission, advanced biomass power conversion technologies, such as gasification using fuels such as wood, by-products or waste from agricultural crops, food or animals,  energy crops, biogas, liquid biofuel including but not limited to biodiesel, organic refuse-derived fuel, or algae;  or (viii) marine or hydrokinetic energy as defined in section 3; or (ix) geothermal energy.  A Class I renewable generating source may be located behind the customer meter within the ISO-NE control area if the output is verified by an independent verification system participating in the NEPOOL GIS accounting system and approved by the division.
(d)  Every retail electric supplier providing service under contracts executed or extended on or after January 1, 2009, shall provide a minimum percentage of kilowatt-hour sales to end-use customers in the commonwealth from Class II renewable energy generating sources. For the purposes of this section, a Class II renewable energy generating source is one that began commercial operation before December 31, 1997 and generates electricity using any of the following:  (i) solar photovoltaic or solar thermal electric energy; (ii) wind energy; (iii) ocean thermal, wave or tidal energy; (iv) fuel cells utilizing renewable fuels; (v) landfill gas; (vi) waste-to-energy which is a component of conventional municipal solid waste plant technology in commercial use; (vii) low emission biomass power conversion technologies, such as gasification using fuels such as wood, by-products or waste from agricultural crops, food or animals,  energy crops, biogas, liquid biofuel including but not limited to biodiesel, organic refuse-derived fuel, or algae; or (viii) marine or hydrokinetic energy as defined in section 3; or (ix) geothermal energy.  A Class II renewable generating source may be located behind the customer meter within the ISO-NE control area provided that the output is verified by an independent verification system participating in the NEPOOL GIS accounting system and approved by the division.
(e)  Every retail supplier shall annually provide to end-use customers in the commonwealth generation attributes from Class II energy facilities in an amount approved by the division; provided, however, that the division may specify that a certain percentage of these requirements must be met through energy generated from a specific technology or fuel type in subsection (d).  Such minimum percentage requirement for kilowatt-hour sales from Class II energy generating sources may be adjusted by the division as necessary to promote the continued operation of existing energy generating resources that meet the requirements of said subsection (d), and may be met through kilowatt-hour sales to end-use customers from any energy generating source meeting the requirements of said subsection (d).
(f) After conducting administrative proceedings, the division may add technologies or technology categories to any list; provided, however, that the following technologies shall not be considered renewable energy supplies: coal, oil, natural gas and nuclear power. The division shall establish and maintain regulations allowing for a retail supplier to discharge its obligations under this section by making an alternative compliance payment in an amount established by the division for Class I and Class II renewable energy generating sources.  The division shall establish and maintain regulations outlining procedures by which each retail supplier shall annually submit for the division’s review a filing illustrating the retail supplier’s compliance with the requirements of this section.
(g) In satisfying its annual obligations under subsection (a), each retail supplier shall provide a portion of the required minimum percentage of kilowatt-hours sales from new on-site renewable energy generating sources located in the commonwealth and having a power production capacity of not more than 2 megawatts which began commercial operation after December 31, 2007, including, but not limited to, behind the meter generation and other similar categories of generation determined by the division.  The portion of the required minimum percentage required to be supplied by such on-site renewable energy generating sources shall be established by the division; provided, however, that the division may specify that a certain percentage of these requirements must be met through energy generated from a specific technology or fuel type.
            (h) The division shall establish and maintain regulations allowing for a retail supplier to discharge its obligations under subsection (g) by making an alternative compliance payment in an amount established by the division; provided, however, that the division shall set on-site generation alternative compliance payment rates at levels that will stimulate the development of new on-site renewable energy generating sources.
(i) A municipal lighting plant shall be exempt from the obligations under this section so long as and insofar as it is exempt from the requirements to allow competitive choice of generation supply under section 47A of chapter 164.
(j) Renewable energy certificates used for complying with the Massachusetts RPS, or the associated energy, while available to the complying electric supplier for use with a federal renewable portfolio standard to the extent permitted by such standard, shall not be used for, banked, sold or transferred to any other company or affiliate for use in complying with any state or federal renewable portfolio standard based on any other load obligation.
Section 11F1/2.  (a) The division of energy resources shall establish an alternative energy portfolio standard for all retail electricity suppliers selling electricity to end-use customers in the commonwealth. Every retail electric supplier providing service under contracts executed or extended on or after January 1, 2009 shall provide a minimum percentage of kilowatt-hour sales, as determined by the division, to end-use customers in the commonwealth from alternative energy generating sources and the division shall annually thereafter determine the minimum percentage of kilowatt-hour sales to end-use customers in the commonwealth which shall be derived from alternative energy generating sources. For the purposes of this section, an alternative energy generating source is one which generates electricity using any of the following: (i) coal gasification with capture and permanent sequestration of carbon dioxide; provided, however, that the fuel shall be purchased by, and contractually transported to, the alternative energy generating source in ISO-NE, as defined in section 1 of chapter 164; (ii)  combined heat and power; (iii) flywheel energy storage; (iv) any facility which substitutes any portion of its fossil fuel source with an equal to or greater portion of an alternative, paper-derived fuel source approved by the department of environmental protection through a beneficial use determination for the production of heat or power; or (v) any other alternative energy technology approved by the division under an administrative proceeding conducted under chapter 30A; provided, however, that the following technologies shall not be considered alternative energy supplies: coal, except when used in coal gasification; oil; natural gas, except when used in coal gasification or combined heat and power; and nuclear power. 
(b) The division shall set: (i) emission performance standards, including standards for carbon dioxide and fuel conversion efficiency standards for all technologies included in this section, consistent with the commonwealth’s environmental goals, including, but not limited to, the reduction of greenhouse gas emissions; and (ii) a net carbon dioxide emissions rate not to exceed the emissions rate of a new natural gas combined cycle power plant which shall include all emissions related to thermal delivery, combustion, gasification, fuel processing and sequestration, whether or not such activities occur at the alternative generating source or at another location.  At least once every 2 years the division shall review and update, if necessary, all standards for new alternative energy generating sources to require the best available emissions control technologies and all feasible efficiency improvements.
(c) The division shall promulgate regulations allowing for a retail supplier to discharge its obligations under this section by making an alternative compliance payment in an amount established by the division.  Such regulations shall outline procedures by which each retail supplier shall annually submit for the division’s review a filing illustrating the retail supplier’s compliance with the requirements of this section.
(d) A municipal lighting plant shall be exempt from the obligations under this section so long as and insofar as it is exempt from the requirements to allow competitive choice of generation supply under section 47A of chapter 164.

NO SECTION 16
.

SECTION 17.  Section 11I of chapter 25A, as appearing in the 2006 Official Edition, is hereby amended by adding the following subsection:-
(o) Notwithstanding any general or special law to the contrary, local authorities may amend existing energy service agreements to bring products and services to additional buildings or assets in the community.  The amendments may be accomplished through negotiation with the selected energy service provider.

SECTION 18. Said chapter 25A is hereby further amended by inserting after section 11I the following section:-

Section 11J. (a) For the purposes of this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:-

“Generator”, the person that owns, directly or indirectly, or has title to the output from the renewable energy generating source that is located in a control area external to the ISO- NE, as defined in section 1 of chapter 164, control area.

“Person”, any individual, corporation, limited liability company, general or limited partnership, trust, association or other entity.
 
(b) A renewable energy generating source, as defined in subsection (b) of section 11F, that is physically located in or relocated to a control area external to the ISO-NE control area may qualify as an eligible renewable energy generating source under section 11F; provided, however, that the renewable energy generated by such renewable energy generating source is delivered into and used by consumers within the ISO-NE control area.
 
(c) The delivery of renewable energy into the ISO-NE control area, as described in subsection (b), shall not qualify under the renewable portfolio standard, notwithstanding such delivery into the ISO-NE control area, unless the generator of such renewable energy: (i) initiates the import transaction pursuant to a spot market sale to ISO-NE or under a bilateral sales contract with a purchaser of the renewable energy located in the ISO-NE control area by properly completing a North American Electric Reliability Corporation tag from the generator in the external control area to either a node or zone in the ISO-NE control area; and (ii) complies with all ISO-NE rules and regulations required to schedule and deliver the renewable energy generating source’s energy or capacity into the ISO-NE control area.
 
(d) During any period during which the generator, or any person under contract with the generator, is delivering renewable energy from the renewable energy generating source into the ISO-NE control area, and notwithstanding compliance with subsection (b), the renewable energy generated by the renewable energy generating source that is eligible for the renewable portfolio standard shall be limited to the lesser of the following: (i) the renewable energy actually generated by the renewable energy generating source; or (ii) the renewable energy actually scheduled and delivered into the ISO-NE control area by the generator.
(e) The division may adopt regulations and requirements as it considers appropriate consistent with this section.

SECTION 19.  Section 12 of said chapter 25A, as appearing in the 2006 Official Edition, is hereby amended by inserting after the word “on”, in line 15, the following words:-  telecommunication, utilities and.

SECTION 20. Said chapter 25A is hereby further amended by adding the following 4 sections:-
Section 14.  (a) As used in this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:-
“Building authority”, the University of Massachusetts Building Authority, the Southeastern Massachusetts University Building Authority, the University of Lowell Building Authority or any other building authority which may be established for similar purposes.
“Eligible”, able to meet all requirements for offerors or bidders set forth in this section and section 44D of chapter 149 and not debarred from bidding under section 44C of said chapter 149 or any other applicable law, and who shall certify that he  is able to furnish labor that can work in harmony with all other elements of labor employed or to be employed on the work.
“Governmental body”, a city, town, district, regional school district, county, or agency, board, commission, authority, department or instrumentality of a city, town, district, regional school district or county, and all other public agencies which are not  state agencies or building authorities.
“Minor informalities”, minor deviations from, insignificant mistakes in, and matters of form rather than substance of the proposal or contract document which can be waived or corrected without prejudice to other offerors, potential offerors or the public agency.
“Person”, any natural person, business, partnership, corporation, union, committee, club, or other organization, entity or group of individuals.
“Public agency”, a department, agency, board, commission, authority or other instrumentality of the commonwealth or political subdivision of the commonwealth or 2 or more subdivisions thereof.
“Responsible”, demonstrably possessing the skill, ability and integrity necessary to faithfully perform the work called for by a particular contract, based upon a determination of competent workmanship and financial soundness in accordance with this section and section 44D of chapter 149.
“Responsive offeror”, a person who has submitted a proposal which conforms in all respects to the requests for proposals.
            “Secretary”, the secretary of the executive office of energy and environmental affairs.
“State agency”, a state agency, board, bureau, department, division, section, or commission of the commonwealth.
(b) A public agency may, in the manner provided by this section, contract for the procurement of energy management services. Such contracts may include terms of 20 years or less. The public agency shall solicit competitive sealed proposals through a request for proposals. At least 1 week prior to soliciting proposals for a contract under this section, a public agency shall notify the secretary in writing, in such form and including such information as the secretary shall prescribe by regulation, of the agency’s intent to solicit proposals. Such notification shall, at a minimum, include a complete copy of the agency’s request for proposals. An acknowledgment of receipt, in such form and by including such information as the secretary shall prescribe by regulation, shall be issued to the public agency upon successful compliance with the requirements of this paragraph.
Requests for proposals for an energy management services contract to be entered into on behalf of a state agency or a building authority shall be developed jointly by the division of capital asset management and maintenance and the using agency. Such proposals shall only be solicited by the division of capital asset management and maintenance after the commissioner of said division has given his prior written approval, and no contract for energy management services shall be valid unless approved and signed by said commissioner. Said commissioner may delegate to state agencies and building authorities the authority to enter into such contracts with an estimated construction cost of less than $1,000,000. Such delegation shall be in writing from the commissioner to the regulating agency or building authority.
The request for proposals published by a public agency under this section shall include: (i) the time and date for receipt of proposals and the address of the office to which the proposals are to be delivered; (ii) a description of the services to be procured, including specific requirements and all evaluation criteria that will be utilized by the state agency or building authority; and (iii) proposed contract terms and conditions and an identification of such terms and conditions which shall be deemed mandatory and nonnegotiable.  The request for proposals may incorporate documents by reference, provided that the request for proposals specifies where prospective offerors may obtain the documents. The public agency shall make copies of the request for proposals available to all persons on an equal basis. Public notice of the request for proposals shall conform to the procedures set forth in subsection (1) of section 44J of chapter 149. Proposals shall be opened publicly, in the presence of 2 or more witnesses, at the time specified in the request for proposals, and shall be available for public inspection.
Sections 44A, 44B and sections 44E to 44H, inclusive, of said chapter 149 shall not apply to contracts procured under this section. Section 44D of said chapter 149 shall apply as appropriate to proposals submitted for contracts under this section, and every such proposal shall be accompanied by: (i) a copy of a certificate of eligibility issued by the commissioner of the division of capital asset management and maintenance; and (ii) an update statement. The offeror’s qualifications shall be evaluated by the division of capital asset management and maintenance in a manner designated by the commissioner of said division. If the public agency determines that any offeror is not responsible or eligible, the public agency shall reject the offer and shall give written notice of such action to the division of capital asset management and maintenance.
State agencies and building authorities shall award contracts under this section to the lowest offeror demonstrably possessing the skill, ability and integrity necessary to perform faithfully energy management services.
Payments under a contract for energy management services may be based in whole or in part on any cost savings attributable to a reduction in energy and water consumption due to the contractor’s performance or revenues gained due to the contractor’s services which are aimed at energy and water cost savings.
(c) The provisions of this subsection shall apply to a governmental body procuring contracts under this section.
Unless no other manner of description suffices, and the governmental body so determines in writing, setting forth the basis for the determination, all requirements shall be written in a manner which describes the requirements to be met without having the effect of exclusively requiring a proprietary supply or service or a procurement from a sole source.
Subject to a governmental body’s authority to reject, in whole or in part, any and all proposals, as provided in this section, a governmental body shall unconditionally accept a proposal without alteration or correction, except as provided in this paragraph. An offeror may correct, modify or withdraw a proposal by written notice received in the office designated in the request for proposals prior to the time and date set for opening the proposals. After proposal opening, an offeror may not change any provisions of the proposal in a manner prejudicial to the interests of the governmental body or fair competition. The governmental body shall waive minor informalities or allow the offeror to correct them. If a mistake and the intended proposal are clearly evident on the face of the proposal document, the governmental body shall correct the mistake to reflect the intended correction and so notify the offeror in writing, and the offeror may not withdraw the proposal. An offeror may withdraw a proposal if a mistake is clearly evident on the face of the proposal but the intended correction is not similarly evident.
The governmental body shall evaluate each proposal and award each contract based solely on the criteria set forth in the request for proposals. Such criteria shall include, but shall not be limited to, all standards by which the governmental body will evaluate responsiveness, responsibility, qualifications of the offeror, technical merit and cost to the governmental body. The request for proposals shall specify the method for comparing proposals to determine the proposal offering the lowest overall cost to the governmental body, taking into consideration comprehensiveness of services, energy or water cost savings, costs to be paid by the governmental body and revenues to be paid to the governmental body. If the governmental body awards the contract to an offeror who did not submit the proposal offering the lowest overall cost, the governmental body shall explain the reason for the award in writing.
The evaluations shall specify revision, if needed, to each proposal which should be obtained by negotiation prior to awarding the contract to the offeror of the proposal. The governmental body may condition an award on successful negotiation of the revisions specified in the evaluation, and shall explain in writing the reasons for omitting any such revision from a plan incorporated by reference in the contract.
(d) The public agency may cancel a request for proposals, or may reject in whole or in part any and all proposals when the public agency determines that cancellation or rejection serves the best interests of the public agency.
The public agency shall state in writing the reason for a cancellation or rejection. The public agency shall promptly publish in the central register notice of the offeror awarded the contract. The public agency shall, within 30 days, file a copy thereof with the secretary.
The secretary, in consultations with the commissioner of the division of capital asset management and maintenance, shall promulgate regulations for the procurement of energy management services under this section; provided, however, that the commissioner of capital asset management and maintenance shall promulgate regulations for services to be procured for state agencies and building authorities; and provided further, that regulations affecting the operations of housing authorities within the jurisdiction of the department of housing and community development shall be promulgated in consultation with the director of housing and community development. Such regulations may limit the scope of services procured and the duration of contracts, and shall include any requirements that the secretary or commissioner of capital asset management and maintenance deems necessary to promote prudent management of such contracts at the appropriate facilities. Such regulations shall require the submission, at least annually, of such information as the secretary or commissioner of capital asset management and maintenance may deem necessary in order to monitor the costs and benefits of contracts for energy management services.
(e) The secretary shall enforce the requirements of this section and regulations promulgated hereunder as they relate to public agencies except for state agencies and building authorities and shall have all the necessary powers to require compliance therewith. The commissioner of the division of capital asset management and maintenance shall enforce all such regulations as they relate to state agencies and building authorities. Any order of the secretary under this subsection shall be effective and may be enforced according to its terms, and enforcement thereof shall not be suspended or stayed by the entry of an appeal. The superior court for Suffolk county shall have jurisdiction over appeals of orders of the secretary under this subsection, and shall also have jurisdiction upon application of said secretary to enforce all orders of said secretary under this subsection. The burden of proof shall be upon the appealing party to show that the order of said secretary is invalid. An aggrieved person shall not be required to seek an order from said secretary as a condition precedent to seeking any other remedy.
(f) Local authorities may amend existing energy service agreements to bring products and services to additional buildings or assets in the community.  The amendments may be accomplished through negotiation with the energy service provider.
Section 15.  (a) A public agency, as defined in section 17, may contract for energy conservation projects, as defined in section 3, that have a total project cost of $100,000 or less, directly and without further solicitation, with electric and gas utilities, their subcontractors and other providers of such energy conservation projects authorized under sections 19 and 21 of chapter 25 and section 11G.
(b) For purposes of this section, "total project cost" shall mean all construction costs of an energy conservation project, whether borne by the utility or public agency, including, without limitation, the costs associated with equipment purchase and installation of said equipment. Ancillary services provided at no cost by utilities, such as auditing and design, are not considered part of project cost.
(c) Public agencies may pay for such energy conservation projects through additions to their monthly utility bills.
(e) Sections 44A to 44M, inclusive, of chapter 149 and section 39M of chapter 30 shall not apply to contracts entered into under this section.
Section 16.  (a) Notwithstanding sections 11C and 11I, for solar photovoltaic projects with a total project cost that is less than $100,000, a public agency may acquire photovoltaic panels and associated equipment for onsite use of the energy generated by these panels from contracts procured by the operational services division pursuant to section 22 of chapter 7 and sections 51 and 52 of chapter 30. 
(b) For purposes of this section, "total project cost" shall mean all construction costs of a photovoltaic project, whether borne by the utility or public agency or other sources, including, without limitation, the costs associated with equipment purchase and installation of said equipment. Ancillary services provided at no cost, such as auditing and design, are not considered part of project cost.
(c) Sections 44A to 44M, inclusive, of chapter 149 and section 39M of chapter 30 shall not apply to contracts entered into under this section.
Section 17.  (a) As used in this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:—
“Eligible”, able to meet all requirements for offerors or bidders set forth in this section including, without limitation, being certified by the division of capital asset management and maintenance as eligible to provide energy management systems services and not debarred from bidding under section 44C of chapter 149 or any other applicable law.
“Energy conservation measures”, measures involving modifications or maintenance and operating procedures of a building or facility and installations therein, which are designed to reduce energy consumption in such building or facility, or the installation or modification of an installation in a building or facility which is primarily intended to reduce energy consumption.
“Energy conservation projects”, projects to promote energy conservation, including, but not limited to, energy conserving modification to windows and doors; caulking and weather-stripping; insulation; automatic energy control systems; hot water systems; equipment required to operate variable steam, hydraulic and ventilating systems; plant and distribution system modifications including replacement of burners, furnaces or boilers; devices for modifying fuel openings; electrical or mechanical furnace ignition systems; utility plant system conversions; replacement or modification of lighting fixtures; energy recovery systems; and cogeneration systems.
“Energy management services”, a program of services, including energy audits, energy conservation measures, energy conservation projects or a combination thereof, and building maintenance and financing services, primarily intended to reduce the cost of energy and water in operating 1 or more buildings, which may be paid for, in whole or in part, by cost savings attributable to a reduction in energy and water consumption which result from the services.
“Energy management systems”, the design and installation of systems or maintenance programs to conserve energy use within a building, including, without limitation, (i) performance-contracting energy saving projects; (ii) the installation or modification of new and existing equipment which will reduce energy and water consumption associated with a heating, ventilation and air conditioning system; a lighting system; a building envelope; a domestic hot water system; and other energy and water using devices; and (iii) the work associated with monitoring and verifying project savings and the study or design of the subject work, whether performed directly or managed through subcontractors.
“Energy savings”, a measured reduction in fuel, energy, operating or maintenance costs resulting from the implementation of energy management services when compared with an established baseline of previous fuel, energy, operating or maintenance costs, including, but not limited to, future capital replacement expenditures avoided as a result of equipment installed or services performed under a guaranteed energy savings contract.
“Guaranteed energy savings contract”, a contract for the evaluation, recommendation or implementation energy management services in which payments are based, in whole or in part, on any energy savings attributable to the contract.
“Person”, any natural person, business, partnership, corporation, union, committee, club or other organization, entity or group of individuals.
“Public agency”, a city, town or district, including a regional school district; or a combination of 2 or more such cities, towns or districts, including regional school districts; or a department, agency, board, commission, authority or other instrumentality of the commonwealth.
“Qualified provider”, responsible and eligible person who shall be able to meet all requirements set forth in this section and who shall not be debarred from bidding under section 44C of chapter 149 or any other applicable law and who shall be experienced in the design, implementation and installation of energy savings measures.
“Request for qualifications”, a solicitation directed to qualified providers issued by a public agency to obtain energy management services under a guaranteed energy savings contract subject to this section. The request for qualifications shall include the following: (i) the name and address of the public agency; (ii) the name, address, title and phone number of a contact person; (iii) the date, time and place where qualifications shall be received; (iv) a description of the services to be procured, including a facility profile with a detailed description of each building involved and accurate energy consumption data for the most recent 2 year period, stated objectives for the program, a list of building improvements to be considered or required and a statement as to whether the proposed improvements will generate sufficient energy savings to fund the full cost of the program; (v) the evaluation criteria for assessing the qualifications; (vi) a statement that the public agency may cancel the request for qualifications or may reject, in whole or in part, any and all energy savings measures when the public agency determines that cancellation or rejection serves the best interests of the public; and (vii) any other stipulations and clarifications the public agency may require, which shall be clearly identified in the request for qualifications.
“Responsible”, demonstrably possessing the skill, ability and integrity necessary to faithfully perform the work called for by a particular contract, based upon a determination of competent workmanship and financial soundness in accordance with section 44D of chapter 149.
(b) A public agency may use this section in the procurement of energy management services as an alternative to the procedures in section 11C. Nothing in this section shall preclude any such agency from choosing to proceed thereafter under said section 11C. A public agency may enter into a guaranteed energy savings contract in order to achieve energy savings at facilities in accordance with this section. All energy savings measures shall comply with current local, state and federal construction and environmental codes and regulations. Before entering into a guaranteed energy savings contract, a public agency shall issue a request for qualifications. Public notice of the request for qualifications shall conform to the procedures set forth in subsection (1) of section 44J of chapter 149. At least 1 week before soliciting a request for qualifications for a guaranteed energy savings contract, a public agency shall notify the commissioner of energy resources in writing, in such form and including such information as the commissioner of capital asset management and maintenance shall prescribe by regulation, of the agency’s intent to solicit qualifications. The notification, at a minimum, shall include a copy of the agency’s request for qualifications. An acknowledgment of receipt, in such form and including such information as the commissioner of capital asset management and maintenance shall prescribe by regulation, shall be issued by the commissioner of energy resources to the public agency upon successful compliance with the requirements of this subsection. Qualifications shall be opened publicly, in the presence of 2 or more witnesses, at the time specified in the request for qualifications, and shall be available for public inspection. The provisions of sections 44A, 44B and sections 44E to 44H, inclusive, of said chapter 149 shall not apply to contracts procured under this section. Section 44D of said chapter 149 shall apply as appropriate to qualifications submitted for contracts under this section, and every such qualification shall be accompanied by: (i) a copy of a certificate of eligibility issued by the commissioner of capital asset management, and  (ii) by an update statement.
The public agency shall evaluate the qualified providers to determine which best meets the needs of the public agency by reviewing the following: (i) references of other energy savings contracts performed by the qualified providers; (ii) the certificate of eligibility and update statement provided by the qualified providers; (iii) the quality of the products proposed; (iv) the methodology of determining energy savings; (v) the general reputation and performance capabilities of the qualified providers; (vi) substantial conformity with the specifications and other conditions set forth in the request for qualifications; (vii) the time specified in the qualifications for the performance of the contract; and (viii) any other factors the public agency considers reasonable and appropriate, which factors shall be made a matter of record.
Respondents shall be evaluated only on the criteria set forth in the request for qualifications.
The public agency shall conduct discussions with, and may require public presentations by, each person who submitted qualifications in response to the request for qualifications regarding their qualifications, approach to the project and ability to furnish the required services. The public agency shall select in order of preference 3 such persons, unless fewer persons respond, they consider to be the most highly qualified to perform the required services. The agency may request, accept and consider proposals for the compensation to be paid under the contract only during competitive negotiations conducted under subsection (d).
(c) The public agency may cancel a request for qualifications, or may reject, in whole or in part, any and all proposals when the public agency determines that cancellation or rejection serves the best interests of the public agency. The public agency shall state in writing the reason for a cancellation or rejection.
(d) The public agency shall negotiate a contract with the most qualified person at a rate of compensation which the public agency determines is fair, competitive and reasonable. If Should the public agency is unable to negotiate a satisfactory contract with the person considered to be the most qualified at a rate the public agency determines to be fair, competitive and reasonable, negotiations with that person shall be formally terminated. The public agency shall then undertake negotiations with the second most qualified person. Failing accord with the second most qualified person, the public agency shall terminate those negotiations and then undertake negotiations with the third most qualified person. If the public agency is  unable to negotiate a satisfactory contract with any of the selected persons, the public agency may select additional qualified providers who responded to the request for qualifications, in the order of their competence and qualification, and continue negotiations in accordance with this subsection until either an agreement is reached or the public agency cancels the request for qualifications.
(e) The decision of a public agency, as defined in section 1, regarding the selection of a qualified provider shall be final and shall not be subject to appeal except on the grounds of fraud or collusion.
(f) The public agency shall provide public notice of the meeting at which it proposes to award the guaranteed energy savings contract, of the name of the parties to the proposed contract and of the purpose of the contract. The public notice shall be made at least 10 days before the meeting. The public agency shall promptly publish in the central register notice of the award and those public agencies, other than state agencies and building authorities, shall notify the commissioner of energy resources of such award and provide a copy of the guaranteed energy savings contract.
(g) The guaranteed energy savings contract shall include a written guarantee of the qualified provider that either the amount of energy savings guaranteed will be achieved or the qualified provider shall reimburse the public agency for the amount of the shortfall. Methods for measurement and verification of guaranteed savings shall conform to the most recent standards established by the Federal Energy Management Program of the United States Department of Energy. The secretary shall enforce the requirements of this section and regulations promulgated hereunder as they relate to public agencies except for state agencies and building authorities and shall have all the necessary powers to require compliance therewith. The commissioner of the division of capital asset management and maintenance shall enforce the regulations as they relate to state agencies and building authorities. Any order of the commissioner of energy resources under this subsection shall be effective and may be enforced according to its terms, and enforcement thereof shall not be suspended or stayed by the entry of an appeal therefrom. The superior court for Suffolk County shall have jurisdiction over appeals of orders of the commissioner of energy resources under this subsection, and shall also have jurisdiction upon application of the commissioner to enforce all orders of the commissioner under this subsection. The burden of proof shall be upon the appealing party to show that  an order of the commissioner is invalid. An aggrieved person shall not be required to seek an order from the commission as a condition precedent to seeking any other remedy. The value of guaranteed savings may represent either all or part of annual payments at the discretion of the agency. The guaranteed energy savings contract term for providing a guarantee, measurement and verification, maintenance, service and installment or lease payments shall not exceed 20 years. The division of capital asset management and maintenance, in concurrence with the state inspector general, shall promulgate regulations for the procurement of energy management services, including establishing safeguards to be included in guaranteed energy savings contracts. The regulations shall require the submission, at least annually, of information as the commissioner of capital asset management and maintenance and the inspector general consider necessary in order to monitor the costs and benefits of contracts for energy management services.
(h) Payments under a contract for energy management services may be based in whole or in part on any cost savings attributable to a reduction in energy and water consumption due to the contractor’s performance or revenues gained due to the contractor’s services which are aimed at energy and water cost savings.
(i) Unless no other manner of description suffices, and the public agency so determines in writing, setting forth the basis for the determination, all requirements shall be written in a manner which describes the requirements to be met without having the effect of exclusively requiring a proprietary supply or service, or a procurement from a sole source.
(j) Before entering into a guaranteed energy savings contract, the public agency shall require the qualified provider to file with the public agency a payment or a performance bond relating to the installation of energy savings measures, in an amount equal to 100 per cent of the estimated contract value from a surety company licensed to do business in the commonwealth and whose name appears on United States Treasury Department Circular 570.
(k) Guaranteed energy savings contracts may extend beyond the fiscal year in which they become effective.
(l) Local authorities may amend existing energy service agreements to bring products and services to additional buildings or assets in the community.  The amendments may be accomplished through negotiation with the energy service provider.

SECTION 20A.  Chapter 30 of the General Laws is hereby amended by inserting after section 36A the following section:-
Section 36B.  The commissioner of administration shall establish and enforce regulations governing the fuel efficiency standards required for all vehicles.

SECTION 21.
  Section 4A of chapter 40J of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by striking out, in line 7, the word “five” and inserting in place thereof the following figure:- 30.

SECTION 22.  Section 4E of said chapter 40J, as so appearing, is hereby amended by inserting after the word “energy”, in line 18, the following words:-  , energy conservation and efficiency, including, but not limited to, residential combined heat and power systems of 10 kilowatts or less and commercial combined heat and power systems of 60 kilowatts or less..

SECTION 23.  Said section 4E of said chapter 40J, as so appearing, is hereby further amended by inserting after the word “commonwealth”, in line 30, the following words:-  , together with such other initiatives and activities as the board may deem appropriate to further the public purposes of the fund.

SECTION 24.  Said section 4E of said chapter 40J, as so appearing, is hereby further amended by striking out, in line 44, the words “and (vi)” and inserting in place thereof the following words:-  (vi) the promotion of energy conservation and efficient energy use and the development and use of green buildings; and (vii).

SECTION 25.
  Said section 4E of said chapter 40J, as so appearing, is hereby further amended by inserting after the word “expend”, in line 48, the following words:-  or pledge.

SECTION 25A. 
Said section 4E of said chapter 40J, as so appearing, is hereby further amended by inserting after the word "energy", in line 133, the following words:-  ; marine or hydrokinetic energy as defined in section 3 of chapter 25A.

SECTION 26.
  Said section 4E of said chapter 40J, as so appearing,  is hereby further amended by inserting after the word “resources”, in line 74, the following words:-  including, without limitation, the promotion and development of energy-efficient green buildings, particularly in affordable housing and schools and other public buildings.  At least 10 per cent of the fund shall be dedicated to energy efficiency projects and activities undertaken by or for the benefit of cities and towns, including without limitation energy conservation measures and projects, procurement of energy management services, installation of energy management systems, adoption of demand side reduction initiatives, adoption of energy efficiency policies and the siting and construction of renewable energy, combined heat and power or distributed generation facilities on municipally owned properties.  On an annual basis and in consultation with the low-income weatherization and fuel assistance program network, 10 per cent of the fund shall be dedicated to projects for the benefit of low-income ratepayers, including projects implemented by the low-income weatherization and fuel assistance program network.

SECTION 27. 
Said section 4E of said chapter 40J, as so appearing, is hereby further amended by striking out, in lines 136 to 138, inclusive, the words “such as gasification using such biomass fuels as wood, agricultural, or food wastes, energy crops, biogas, biodiesel, or organic refuse-derived fuel”, and in inserting in place thereof the following words:-  using fuels such as wood, by-products or wastes from agricultural crops, food or animals, energy crops, biogas, liquid biofuel including but not limited to biodiesel, organic refuse-derived fuel, or algae; geothermal energy; solar domestic hot water.

SECTION  28.  Said section 4E of said chapter 40J, as so appearing, is hereby further amended by inserting after the word "engine", in line 146, the following words:-  ; and provided further, that the board shall make grants, loans or other support from the fund, not to exceed a total of $3,000,000 annually, for hydroelectric facilities, other than pumped storage facilities, in the Commonwealth constructed prior to December 31, 1997 for upgrades to increase the efficiency or capacity and to reduce any environmental impacts.

SECTION 28A.  Paragraph (1) of subsection (f) of said section 4E of said chapter 40J, as so appearing, is hereby amended by inserting after the second sentence, the following sentence:-  Such funds may also be used by a municipality or group of municipalities with an established load aggregation program under section 134 of chapter 164 in a service territory in which all consumers together have a peak load of at least 200 megawatts for grants, loans or other financial assistance to overcome barriers to renewable energy development, if consistent with this section.

SECTION 29.  Said section 4E of said chapter 40J, as so appearing, is hereby further amended by striking out subsection (i) and inserting in place thereof the following subsection:-
(i) The corporation shall be assisted in the implementation of this section by an oversight board consisting of not more than 15 individuals, which shall include 1 member to be appointed by the speaker of the house, 1 member to be appointed by the president of the senate, 1 member to be appointed by the minority leader of the house, 1 member to be appointed by the minority leader of the senate, the secretary of housing and economic development or his designee, the attorney general or his designee, the secretary of energy and environmental affairs or his designee, the chair of the department of public utilities, the executive director of the Massachusetts Municipal Association or his designee, and not more than 6 individuals appointed by the governor from the recommendation submitted by the chair of the board relating to clause (i) of said section 4, with an interest in matters related to the general purpose and activities of the fund and the knowledge and experience in at least one of the following areas:  electricity distribution, generation, supply, or power marketing; the concerns of commercial and industrial ratepayers; residential ratepayers including, but not limited to, low-income ratepayers; economics, financial or investment consulting expertise relative to the fund; regional environmental concerns; academic issues related to power generation, distribution or the development or commercialization of renewable energy sources; institutions of higher education; municipal or regional aggregation matters; and renewable and clean energy issues.  The board shall consult with the oversight board in discharging its obligations under this section.

SECTION 30.  Said section 4E of said chapter 40J, as so appearing, is hereby further amended by striking out subsection (k) and inserting in place thereof the following subsection:-
 (k)  On or by August 15th of each year, the board, in conjunction with the oversight board, shall annually submit to the governor, the joint committee on telecommunications, utilities and energy, and the house and senate committees on ways and means a report detailing the expenditure and investment of monies from the fund over the previous fiscal year and the ability of the fund to meet the requirements and provisions of this section, progress in the implementation of the strategic plan described in paragraph (m), including any recommendations regarding necessary modifications to the plan, and any recommendations for improving the ability of the board, the corporation, and the fund to meet said requirements and provisions.  The oversight board shall be given the opportunity to review and comment on said report before its filing, and said filing shall include any such comments.

SECTION 30A. The general court finds and declares that:
(a)     Coastal population
(a)     Coastal population growth and rapid advances in technology and commerce have led to a significant increase in the demands on the commonwealth’s ocean resources;
(b)     Ocean resources management in the commonwealth has historically been focused on particular resources or activities and public decisions about whether to allow certain activities in the commonwealth's ocean waters have been reactive and fragmented; 
(c)      The commonwealth’s ocean management policy must be adjusted to account for evolving needs and values, emerging technologies and evolving understanding and knowledge of ocean ecosystems to meet the commonwealth's public trust responsibilities;
(d)        Commercial and recreational fisheries are an integral and historic part of our culture and contribute substantial economic benefits to our citizens;
(e)        Regulation of these fisheries shall be, exclusively, by the Massachusetts division of marine fisheries and the relevant federal and interstate management agencies;
(f)     Stewardship of the commonwealth’s ocean waters shall be carried out through an ocean management plan that protects, maintains and restores the abundance and diversity of native species and habitats and the health and productivity of coastal and marine ecosystems to fulfill the ecological, economic, educational, social, cultural, nutritional, recreational and other needs of present and future generations in a sustainable manner; and
(g)     The Massachusetts ocean management task force, through an active public process, has studied and made recommendations for improved stewardship of the commonwealth’s ocean resources.  

SECTION 30B.  Chapter 10 of the General Laws is hereby amended by inserting after section 35EE the following 2 sections:-

            Section 35FF.  There shall be established and set up on the books of the commonwealth a separate fund to be administered by the secretary of energy and environmental affairs, as trustee, in consultation with the department of environmental protection, to be known as the Ocean Resources and Waterways Trust Fund.  There shall be credited to the fund the revenue from the compensation or mitigation related to ocean development, the income derived from the investment of amounts credited to the fund and any appropriation or grant explicitly made to the fund.  The priority for use of funds derived from compensation or mitigation for ocean development projects shall be to restore or enhance marine habitat and resources related to the impacts of the specific project related to the compensation or mitigation.  The funds derived from compensation or mitigation related to public navigational impacts shall be dedicated to public navigational improvements, provided, that any funds for the enhancement of fisheries resources shall be directed to the Marine Fisheries Trust Fund to conduct the needed fisheries restoration and management programs, and any other amounts credited to the fund shall be used, without further appropriation, solely for the purposes of environmental enhancement, restoration and coordination of ocean resources by the secretary pursuant to this section, including the cost of employees or consultant services necessary to implement these priorities.  Money remaining in the fund at the end of the fiscal year shall not revert to the General Fund and shall be available for expenditure in the following fiscal year.
            Section 35GG.  There shall be established and set up on the books of the commonwealth a separate fund to be administered by the director of the division of marine fisheries, as trustee, to be known as the Marine Fisheries Trust Fund.  There shall be credited to the fund the revenue from compensation or mitigation related to fisheries management, any income derived from the investment of amounts credited to the fund and any appropriation or grant explicitly made to the fund.  Funds credited to the fund for compensation or mitigation related to fisheries management shall be expended without further appropriation for the preservation, enhancement, restoration or management of marine fisheries.  Money remaining in the fund at the end of the fiscal year shall not revert to the General Fund and shall be available for expenditure in the following fiscal year.

SECTION 30C.  Section 4A of chapter 21A of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by inserting after the word “benefits” in line 15 the words: -  of section 4C and.

SECTION 30D.  Said chapter 21A is hereby further amended by inserting after section 4B the following section: -
Section 4C.  (a) The ocean waters and ocean-based development of the commonwealth, within the ocean management planning area described in this section, shall be under the oversight, coordination and planning authority of the secretary of energy and environmental affairs, in accordance with the public trust doctrine, as established by common law and codified in the Colonial Ordinances of 1641-47 and subsequent relevant statutes and cases, and in regular consultation with the members of the ocean management advisory commission and all other relevant agencies, on behalf of the people of the commonwealth pursuant to the authority vested in the secretary by sections 1 through 6 of this chapter.  The secretary shall exercise this authority by promulgating an ocean management plan, which shall include maps, illustrations and other media setting forth, among other things, the commonwealth’s goals, policies and standards for ensuring its effective stewardship of the ocean waters held in trust for the benefit of the public.  This stewardship shall be carried out in accordance with sound management practices and shall take into account the existing natural, social, cultural, historic and economic characteristics of the planning area; protect the public trust; value biodiversity and ecosystem health; protect special, sensitive or unique estuarine and marine life and habitats; address climate change and sea-level rise; respect the interdependence of ecosystems; coordinate uses that include international, federal, state and local jurisdictions; take into account the importance of the waters of the commonwealth to its citizens who derive livelihoods and recreational benefits from fishing; foster sustainable uses that capitalize on economic opportunity without significant detriment to the ecology or natural beauty of the ocean; preserve and enhance public access; support the infrastructure necessary to sustain the economy and quality of life for the citizens of the commonwealth; use the best available information and expertise; encourage public participation in decision-making; and adapt to our evolving knowledge and understanding of the ocean environment. 
Nothing in this section shall be construed to alter the jurisdictional authority of the division of marine fisheries.
Ocean-based development, for the purposes of this section, shall include the creation, development and installation of permanent or temporary structures and the mining, removal or other exploitation of marine resources not currently subject to chapter 130, which shall remain in full force and effect.
(b) The geographic area subject to an ocean management plan shall include any waters and associated submerged lands of the ocean, including the seabed and subsoil, lying between the line designated as the “Nearshore Boundary of the Ocean Management Planning Area”, which is depicted on a plan dated January 31, 2006, prepared by the office of coastal zone management and maintained at the executive office of energy and environmental affairs and with the clerks of the House and the Senate, and the seaward boundary of the commonwealth.  An ocean management plan may also address activities in adjacent seaward waters and, to the maximum extent consistent with federal law, shall apply to activities occurring in adjacent federal waters that are functionally connected or otherwise related to the management of resources within the ocean management planning area.  An ocean management plan may take into account the different regional characteristics of the commonwealth's waters.
(c)(1) There shall be an ocean management advisory commission to assist the secretary in the development of an ocean management plan.  This commission shall consist of 16 members: 2 members of the senate, 1 to be appointed by the president of the senate and 1 appointed by the minority leader of the senate; 2 members of the house of representatives, 1 to be appointed by the speaker of the house of representatives and 1 to be appointed by the minority leader of the house of representatives; the director of the office of coastal zone management or his designee; the director of the division of marine fisheries or his designee; and 10 members to be appointed by the governor as follows:  1 representative of a commercial fishing organization; 1 representative of a recreational fishing organization; 2 representatives of environmental organizations; 1 representative of a non-fishing, ocean-dependent industry; 3 mayors or members of a city council or board of selectmen of coastal municipalities of diverse size and location; and 2 directors of regional planning agencies.  Members shall be appointed for a term of 3 years, except that, initially, 6 members appointed by the governor shall be appointed for terms of 2 years and 3 members appointed by the governor shall be appointed for terms of 1 year.  The appointing authority may fill any vacancy that occurs in an unexpired term.  The members of the ocean management commission shall be selected with due regard to coastal geographic distribution.
The commission shall annually elect a chairman and clerk, shall keep accurate records of its meetings and hearings and shall meet at least quarterly and at the call of the chairman.  8 members shall constitute a quorum to conduct business.  The commission shall hold public meetings relative to matters within the jurisdiction of the ocean management plan and shall make recommendations to the secretary for the proper management and development of the plan.  The secretary or his designee shall attend all meetings and hearings of the commission.  The secretary shall ensure that the ocean management plan is consistent with the recommendations of the commission.
The Office of Coastal Zone Management and Division of Marine Fisheries shall provide technical support to the commission.
(2)  There shall be an ocean science advisory council to assist the secretary in creating a baseline assessment, subject to clause (1) of the subsection (e), and any other scientific information necessary for the development of an ocean management plan.  The council shall consist of 9 members, to be appointed by the secretary: 3 scientists from academic institutions, at least 1 of whom shall be from the School of Marine Science and Technology at the University of Massachusetts at Dartmouth; and at least 1 of whom shall be from the department of environment, earth & ocean science at the University of Massachusetts at Boston; 3 scientists from private nonprofit organizations, including 1 scientist designated by the Massachusetts Fishermen’s Partnership; and 3 scientists from government agencies with demonstrated technical training and experience in the fields of marine ecology, geology, biology, ichthyology, mammalogy, oceanography or other related ocean science disciplines, at least 1 of whom shall be from the division of marine fisheries. The secretary shall serve as coordinator of the council.  The council shall meet at such times as the secretary shall set, which shall be no less than once every 3 months to assist the secretary compile the scientific information necessary for the development of an ocean management plan.
(d)  Upon the secretary’s adoption of an ocean management plan, no structure, use or activities that could significantly alter the ocean resources of the geographic area subject to an ocean management plan under subsection (b) may occur, except as allowed by subsections (j) and (k) if the structure, use or activity conforms to the applicable provisions of the ocean management plan and except for commercial and recreational fishing pursuant to chapter 130.  The offices and departments of the executive office of energy and environmental affairs and the other agencies, departments, divisions, units, commissions, boards and authorities of the commonwealth shall enforce laws and regulations within their respective jurisdictions, conduct regulatory reviews, administer programs, disburse funds, perform or supervise construction activities and otherwise conduct their activities in a manner that ensures conformance with the applicable provisions of an ocean management plan and this section.
(e) The secretary shall develop, implement and enforce an ocean management plan by regularly consulting with the ocean management advisory commission and by performing duties that shall include, but not be limited to, the following:
(1)  Creating, in consultation with the ocean science advisory council, a baseline assessment of the commonwealth’s ocean resources and resource use that will serve as the basis for evaluating alternatives and choosing courses of action and that shall incorporate the best available engineering applications and scientific understanding of marine and ocean resources, including the identification of special, sensitive or unique estuarine and marine life and habitats, through research, mapping, monitoring, and consideration of public and agency input and other relevant natural, infrastructure, social, cultural, historic and economic planning information;
(2)  Establishing an outreach and participation program which shall include early and continuing interaction with the public, the business sector, other interested groups and local, state, regional and federal officials as described in subsection (g), and regular consultation with the ocean management advisory commission, the ocean science advisory council, the department of environmental protection, the department of conservation and recreation, the department of public utilities, the energy facilities siting board, the executive offices of economic development and public safety, the highway department, the division of energy resources, the port authorities, the department of agricultural resources and other state and federal agencies having jurisdiction over resources or activities within or affecting the ocean management planning area to achieve maximum feasible compatibility with the plans, programs or projects for which such departments, divisions, boards and other agencies are responsible.  A summary of the outreach and participation program shall be included in an ocean management plan;
(3) Identifying management measures, including but not limited to, setting performance standards, mitigation requirements and use limitations, as may be applicable to specific geographic areas, to be developed in a manner consistent with applicable state statutes and regulations that control or otherwise affect development or other ocean use in the planning area.  These management measures shall be compatible, to the maximum extent feasible, with all applicable plans, programs and projects for which a state agency may be responsible.  The division of marine fisheries, pursuant to chapter 130 and any other applicable general or special law, shall have sole responsibility for developing and implementing any fisheries management plans or fisheries regulations that the division determines to be necessary based on the best available scientific information.  Marine fisheries shall be managed in compliance with the applicable rules and regulations of the division of marine fisheries and federal or interstate fishery management plans issued pursuant to chapter 130 or any other applicable general or special law and shall be integrated, to the maximum extent practicable, with an ocean management plan.  Fisheries management plans shall be integrated with an ocean management plan in a manner that enhances the ability of the division of marine fisheries to fulfill its responsibilities and to avoid any alterations of the jurisdictional authority of the division of marine fisheries.  Waterfowl hunting shall be managed in compliance with the rules and regulations of the division of fisheries and wildlife issued pursuant to chapter 131 or any other general or special law, and shall be integrated, to the maximum extent practicable, with an ocean management plan.  Nothing contained in this section shall prohibit the transiting of commercial fishing and recreational boats in Massachusetts ocean waters;

(4)  Implementing a specific strategy to ensure effective application of the identified management measures within the planning area in question.  Implementation arrangements may include, as appropriate, memoranda of understanding or other instruments of agreement to ensure coordination between the secretary and other relevant state agencies;
(5)  Establishing a time period during which an ocean management plan is to remain effective and a proposed date, not to exceed 5 years from the date of plan adoption, on which re-evaluation of the plan will commence for purposes of renewal and amendment. The re-evaluation process shall include, but not be limited to, an opportunity for public comments, informational meetings and public meetings, as described in subsection (g).  An ocean management plan shall remain in effect until a renewed or amended ocean management plan is adopted; and
(6)  Creating other such elements as may be considered appropriate by the secretary to serve the purposes of this section.
            (f) Within 6 months of the passage of this act, the commission, in consultation with regional planning agencies, shall appoint working groups to advise the commission on ocean protection and management goals and objectives and strategies.  The working groups shall be comprised of members of the general public, the business sector, local, state, regional, and federal officials and other interested groups for the following geographic areas: the coastal region north of Boston that is not considered an Ocean Sanctuary; Cape Cod Ocean Sanctuary, Cape Cod Bay Ocean Sanctuary, Cape and Islands Ocean Sanctuary, North Shore Ocean Sanctuary, and South Essex Ocean Sanctuary, as described in the section 13 of chapter 132A; the region within the Cape and Islands Ocean Sanctuary comprised of all the waters of Buzzards Bay bordered by the mainland of the commonwealth on the west, Cape Cod and the Elizabeth Islands on the east and the Massachusetts and Rhode Island ocean boundary on the south; and the region within the Cape and Islands Ocean Sanctuary comprised of all the state waters of Nantucket Sound and Vineyard Sound, bordered on the west by the Elizabeth Islands, on the North by Cape Cod, on the east by Monomoy Island, and on the south by Nantucket Island and Martha’s Vineyard Island.

(g) The secretary shall provide the public the opportunity to receive notice of the contents of a proposed ocean management plan, to make public comments about the plan and to participate in public meetings about the plan at the local and regional levels, in consultation with the Massachusetts association of regional planning agencies.  The Secretary shall provide interested parties with the opportunity to present data, views or arguments for a period of at least 60 days in regard to a proposed ocean management plan or any proposed amendment to or renewal of the plan in writing, in accordance with section 3 of chapter 30A, and shall make such proposed amendments or plans available for a public review and comment period through notice in the Environmental Monitor and at least 1 newspaper of general circulation in each of the 5 administrative regions defined in the Massachusetts coastal zone management plan, commonly known as the North Shore, South Shore, South Coast, metropolitan Boston and Cape Cod and the Islands regions.  For a proposed ocean management plan, the secretary shall conduct at least 1 public meeting, in consultation with the Massachusetts association of regional planning agencies, in each of the 5 administrative regions defined in the Massachusetts coastal zone management plan.  For a proposed amendment to an ocean management plan, the secretary shall conduct at least 1 public meeting, in consultation with the Massachusetts association of regional planning agencies, in each of the administrative regions that would be directly affected by the proposed amendment.  At the conclusion of such public process, and after consideration of public comments received during the public comment period, the secretary may adopt an ocean management plan or any amendments thereto, and notice thereof shall be published in the next available edition of the Environmental Monitor and the Massachusetts Register.  The secretary shall file a copy of the ocean management plan and any amendments thereto with the clerks of the house of representatives and the senate, the house and senate committees on ways and means and the joint committee on the environment, natural resources and agriculture at least 90 days before the ocean management plan or any amendments thereto are to take effect.
(h) The secretary shall reconsider the decision to adopt an ocean management plan, any portion thereof or any amendment thereto only if information which has been overlooked or misunderstood requiring such reconsideration is presented by the planning representative of a local government, a state agency or 10 or more citizens of the commonwealth in a written petition submitted within 21 days of the secretary’s decision.  The secretary’s decision shall be final 21 days after it is issued if no request for reconsideration is timely filed.  A petition for reconsideration shall include a clear and concise statement of the specific objections to the secretary’s decision and the relief sought, including any specific changes that are proposed for consideration.  The secretary shall respond in writing to such petition within 21 days of the close of the petition period and shall set forth the basis for such response including the reasons for any modification of the decision.  Decisions on requests for reconsideration shall be final upon a date specified by the secretary in the response to the request for reconsideration, and in any case, not longer than 21 days after the response.  After the secretary’s decision becomes final, notice thereof shall be published in the next available edition of the Environmental Monitor and the Massachusetts Register.
(i) Judicial review of the secretary’s approval of an ocean management plan or any amendment thereto shall be as provided in section 7 of chapter 30A.  Such action shall be commenced within 30 days of the publication of notice of the ocean plan or amendment in the Massachusetts Register or, if a request for reconsideration is filed, within 30 days of publication of notice of the secretary’s decision on the request for reconsideration.  A person may not commence such action unless the issue complained of was raised by that person in writing during the public comment period on the ocean plan or amendment.  An issue may be raised for judicial review upon a showing that it is material and that it was not reasonably possible with due diligence to have raised it during the public comment period.
(j) Notwithstanding any other provisions of this section, the following activities are prohibited between the mean low water mark and the seaward boundary of the commonwealth:      
(1)  constructing or operating offshore or floating electric generating stations in areas designated as an ocean sanctuary by section 13 of chapter 132A, except:
(i)   on an emergency and temporary basis for the supply of energy when the electric generating station is otherwise consistent with an ocean management plan; or

(ii)  for small-scale renewable energy systems, as defined by the ocean management plan, in areas other than the Cape Cod Ocean Sanctuary, established by section 13 of chapter 132A, when the small-scale renewable energy system is otherwise consistent with an ocean management plan;
(A) The ocean management plan shall include standards and criteria for siting small-scale offshore renewable energy facilities, including but not limited to compatibility with existing uses, appropriateness of technology and scale, environmental protection, public safety and community benefit.  
(B) In regions where regional planning agencies are provided regulatory authority, a regional planning agency may review small-scale offshore renewable energy projects as developments of regional impact based on the standards and criteria set forth in its regional policy plan. A person aggrieved by a decision of a regional planning agency relating to an offshore renewable energy project may appeal the decision to the energy facilities siting board, hereinafter referred to as the board.  The board shall conduct an adjudicatory proceeding as defined in chapter 30A of the General Laws.  The board shall make findings as to whether the offshore renewable energy project complies with the standards and criteria set forth in the ocean management plan.  The decision of the regional planning agency shall not be disturbed unless the board finds on the record that the decision of the regional planning agency was arbitrary or capricious.  The board’s decision shall be subject to judicial review pursuant to section 5 of chapter 25 of the General Laws. 
(2)  dumping or discharging commercial, municipal, domestic or industrial wastes in areas designated as an ocean sanctuary by section 13 of chapter 132A, except as may be allowed pursuant to sections 16 and 16A to 16F, inclusive, of chapter 132A and their implementing regulations, as may be amended, and except for the discharge of bait and fish offal customarily associated with fishing;
(3)  incinerating solid waste material or refuse on or in vessels moored or afloat;
(4)  extracting stone, sand, gravel or other minerals, gases or oils from the seabed or subsoil; except for dredging for maintenance or other navigational  purposes, including but not limited to slips, moorings and maintenance or expansion of boat access, outside of the geographic area described in subsection (b); and, if consistent with any applicable provisions of an ocean management plan, except for dredging for maintenance or other navigational purposes within the geographic area described in subsection (b),shore protection, beach restoration or for facilities and activities undertaken or required by a public agency for the purposes of decontamination, response actions, or capping or disposal of polluted aquatic sediments;
(5)  building or operating commercial advertising in areas designated as an ocean sanctuary by section 13 of chapter 132A; and
(6)  building or long-term mooring of a structure on the seabed or subsoil in the area designated as the Cape Cod Ocean Sanctuary by section 13 of chapter 132A, except as allowed in clauses (1) and (4) to (7), inclusive, of subsection (k).
(k) In the areas within the geographic area described in subsection (b), the following activities are allowed, to the extent they are not prohibited by subsection (j), if the activity has met all applicable requirements of other local, state and federal laws and regulations and is consistent with an applicable ocean management plan:
(1) beach nourishment, channel and shore protection structures and dredging for maintenance and navigational purposes;
(2) the operation, maintenance, repair or construction of infrastructure facilities used in the transmission or distribution of electricity, natural gas, water or telecommunications services, including pipelines, cables and conduits, except in the area designated as the Cape Cod Ocean Sanctuary by section 13 of chapter 132A;
(3) industrial liquid coolant discharge and intake systems, except in the area designated as the Cape Cod Ocean Sanctuary by section 13 of chapter 132A;
(4) facilities for aquaculture;
(5) moorings, floats and rafts held by bottom anchor for the purpose of vessel docking or mooring, and ramps attached thereto;
(6) docks, piers, wharves or other filled or pile-supported structures contiguous with the existing land mass;
(7) environmental restoration or mitigation activities required by certificate of the secretary of energy and environmental affairs;
(8) dumping or discharging commercial, municipal, domestic or industrial wastes, in areas not designated as an ocean sanctuary by section 13 of chapter 132A; and
(9)  temporary scientific and educational facilities.
(l)(1)  In the areas within the geographic area described in subsection (b), commercial and recreational fishing are allowable, subject to the exclusive jurisdiction of the division of marine fisheries.  A component of an ocean management plan which regulates commercial or recreational fishing shall be developed, promulgated and enforced by the division of marine fisheries pursuant to its authority under chapter 130.
(2)  A component of an ocean management plan which does not have as its primary purpose the regulation of commercial or recreational fishing but which has an impact on such fishing shall minimize negative economic impacts on commercial and recreational fishing.  Prior to inclusion in an ocean management plan, a component with such a reasonably foreseeable impact shall be referred to the division of marine fisheries, which shall respond to the secretary, pursuant to paragraph (3), in a timely and efficient manner.
(3)  The director of the division of marine fisheries shall evaluate a component referred to him under paragraph (2) for its impact on commercial and recreational fishing and, if possible, develop and recommend to the secretary any suggestions or alternatives to mitigate or eliminate any adverse impacts. The secretary and the ocean management advisory commission shall consider the response of the director in determining whether the component shall be included in the ocean management plan.  If the secretary does not adopt a suggestion or recommended alternative, he shall certify in writing the reasons therefore and append the certification to the ocean management plan.  If the division does not respond to the secretary within 30 days, the failure to timely respond shall be considered a response by the director that the referred component poses no adverse negative economic impact on commercial and recreational fishing.
(4)  The director of division of marine fisheries, subject to the approval of the marine fisheries advisory commission, shall have sole authority for the opening and closing of areas within the geographic area described in subsection (b) for the taking of any and all types of fish, pursuant to section 17A of chapter 130.  Nothing in this section shall limit the authority of the director under section 17 of chapter 130 or any other provision thereto.  
(m) A project that has filed a chapter 91 license application and received a determination of completeness from the department of environmental protection or, if the project is subject to review pursuant to section 61 of chapter 30, has received a certificate of adequacy regarding a draft environmental impact report from the secretary, shall be governed by the ocean management plan in effect at the time of filing.
(n) The secretary may promulgate regulations to implement, administer and enforce this section and may interpret this section and any regulations adopted hereunder consistent with his power to enforce the laws of the commonwealth.    

SECTION 30E.  Section 12A of chapter 132A of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by adding the following sentence:- Upon the adoption of an ocean management plan pursuant to section 4C of chapter 21A, this section and sections 12C, 14 to 16, inclusive, and 18 shall cease to be effective. Before a plan is adopted, in the case of any differences between the requirements of section 15 and 16 of chapter 132A and paragraphs (j) and (k) of section 4C of chapter 21A, the provisions of sections 15 and 16 of chapter 132A shall control.

SECTION 30F.  Section 12B of said chapter 132A, as so appearing, is hereby amended by striking out, in line 3, the words “’Act’, the Massachusetts Ocean Sanctuaries Act”.

SECTION 30G.  Said Section 12B of said chapter 132A, as so appearing, is further amended by striking out, in lines 13 and 14, the words “environmental management” and inserting in place thereof the following words: - environmental protection.

SECTION 30H.  Section 16A of said chapter 132A, as so appearing, is hereby amended, in lines 1 and 7 by striking out the words “section fifteen” and inserting in place thereof the following words: - clause (2) of paragraph (j) of section 4C of chapter 21A.

SECTION 30I. A project shall not be subject to the requirements of section 4C of chapter 21A if, prior to the date of approval of the first ocean management plan as authorized by section 4C of chapter 21A of the General Laws, the project has 1) filed a chapter 91 license application and received a written determination of completeness by the department of environmental protection; or 2) if the project is subject to review pursuant to section 61 of chapter 30 of the General Laws, received a certificate of adequacy regarding a final environmental impact report from the secretary; or 3) if the project is subject to jurisdiction of the energy facilities siting board, received both a final decision from the energy facilities siting board and a certificate of adequacy regarding a draft environmental impact report from the secretary.  A project not subject to section 4C of chapter 21A must comply with sections 12A to 16F, inclusive, and 18 of chapter 132A of the General Laws, as the sections were in effect immediately prior enactment of section 4C of chapter 21A.  

SECTION 30J. The secretary of energy and environmental affairs shall report annually to the joint committee on environment, natural resources and agriculture identifying management measures established and the progress made in creating an ocean management plan pursuant to section 4C of chapter 21A of the General Laws, until a plan is first adopted.

SECTION 30K.  The secretary of energy and environmental affairs shall develop, adopt and implement an ocean management plan within 24 months of the effective date of section 5.  Upon adoption, an ocean management plan shall be formally incorporated into the Massachusetts coastal zone management program, as referenced in section 4A of chapter 21A of the General Laws.

SECTION 30L.   The secretary of energy and environmental affairs, in consultation with the department of environmental protection, the department of conservation and recreation and the division of marine fisheries, shall examine the establishment or renegotiation of fees, licenses, permits, rents, leases and the adjustment or development of other revenue sources for the purposes of funding ocean resource enhancement or restoration.  Nothing in this section shall provide for a salt-water fishing license or any similar fees or user permits for salt water fishing.  The secretary shall report the findings of his examination to the general court and shall recommend the establishment of fees, licenses, permits, rents, leases and the adjustment or development of other revenue sources, as authorized by subsection (n) of section 4C of chapter 21A of the General Laws, by submitting a report, including any proposed legislation, to the joint committee on environment, natural resources and agriculture and the house and senate committees on ways and means within 1 year of the effective date of section 5. 

SECTION 31. 
Said section 4E of said chapter 40J, as so appearing, is hereby further amended by adding the following subsection:-
(m)  Cost share payments made by the corporation in connection with incentive programs to support the installation of renewable energy systems as energy conservation measures shall be payments funded with monies collected by public utilities from the ratepayers of the commonwealth which, under section 20 of chapter 25, are deposited into the Massachusetts Renewable Energy Trust Fund, and are made primarily for the purpose of protecting and restoring the environment and are not intended to and  shall not substantially increase the annual income derived from the property at which the installation is made.

SECTION 32.
Said section 4E of said chapter 40J, as so appearing, is hereby further amended by inserting after the word “technologies”, in line 259, the following words:-  or the purchase of debt obligations of the corporation issued for the purposes of the fund.

SECTION 33. 
Said section 4E of said chapter 40J, as so appearing, is hereby further amended by inserting after the word “certificates” in line 260, the following words:-  or debt obligations.

SECTION 34. 
Said section 4E of said chapter 40J, as so appearing, is hereby further amended by inserting after the word “certificates”, in line 261, the following words:-  or with the purchasers of such debt obligations, as the case may be,.

SECTION 35. 
Said section 4E of said chapter 40J, as so appearing,  is hereby further amended by inserting after the word “contracts”, in lines 266 and 267, the following words:-  or during the term, which shall not exceed 20 years, or any such debt obligations; provided, however, that in no event shall the principal amount of a debt obligation of the corporation sold in a fiscal year exceed 10 per cent of the amounts collected under said section 20 in the preceding fiscal year.

SECTION 36. 
Section 5 of said chapter 40J, as so appearing, is hereby amended by striking out the last paragraph and inserting in place thereof the following paragraph:-
In formulating plans for the establishment of centers or the undertaking of other activities under this chapter, the corporation  may consult with, and utilize the services of, the executive office of energy and environmental affairs, and the division of energy resources therein, the executive office of housing and economic development, and the department of business and technology therein, and the Massachusetts Development Finance Agency for such technical assistance as the board deems necessary or appropriate to the effective discharge of the corporation’s responsibilities.

SECTION 37.  Section 7 of chapter 44 of the General Laws, as so appearing, is hereby amended by striking out clause (3B) and inserting in place thereof the following clause:-
(3B) For energy conservation, alternative energy or renewable energy improvements to public buildings or facilities owned or leased by the city or town, or on property owned or leased by the city or town, 20 years.

SECTION 38. 
Section 1 of chapter 64A of the General Laws, as so appearing, is hereby amended by adding the following 3 paragraphs:-
(m) “Cellulosic feedstocks”, cellulosic plant material or waste product composed primarily of cellulose, hemicellulose or lignin that can be converted into a cellulosic biofuel.
(n) “Cellulosic biofuel”, any alcohol, ester or hydrocarbon produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis.
(o) “Full lifecycle greenhouse gas emissions”, the aggregate quantity of greenhouse gas emissions, including direct emissions and significant indirect emissions, such as those from land use changes, as determined by the division of energy resources, related to the full fuel lifecycle, including all stages of fuel and feedstock 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.

SECTION 39.   Said chapter 64A of the General Laws, as so appearing, is hereby further amended by inserting after section 7A the following  new section:- 
Section 7B.  Notwithstanding clause (l) of section 1 of chapter 64A, and subject to section 2O of chapter 29, for fuel consisting of a blend of gasoline and cellulosic biofuels, including, but not limited to, ethanol and butanol, the tax per gallon shall be reduced in proportion to the percentage of the fuel content, measured by volume that consists of fuels derived from cellulosic feedstocks. To be eligible for the tax reduction under this section, the particular cellulosic ethanol biofuel fuel used must yield a substantial reduction of full lifecycle greenhouse gas emissions, including direct and indirect impacts on land use and other factors related to greenhouse gas emissions, per unit of delivered energy in comparison to the gasoline fuel displaced. 
The division of energy resources, in consultation with the department of environmental protection, and pursuant to regulations it shall promulgate under clause 8 of section 6 and section  12 of chapter 25A, shall determine what constitutes a “substantial” level of greenhouse gas reductions on a lifecycle basis and shall examine the potential impacts on other air pollutants.  In determining the lifecycle greenhouse gas reductions achieved by particular cellulosic ethanol biofuel supplies, and in determining what constitutes “substantial” reduction, the division shall utilize best practices available from other sources, including state governments, interstate organizations, academic researchers, national governments and the European Union.
Entities wishing to obtain the tax reduction for cellulosic biofuel shall provide documentation satisfactory to the division of energy resources that such fuel yields a substantial reduction in lifecycle greenhouse gas emissions, including direct and indirect impacts.  The division shall promulgate regulations to effectuate the provisions of this section.  The division, in consultation with the department of revenue, shall also promulgate regulations concerning the timing and form of documentation that will enable the department of revenue to determine the appropriate tax revenue to be collected.

SECTION 39A.  Section 1 of chapter 90 of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by inserting before the definition of “Ambulance” the following 2 definitions:-
            “Alternative fuel”, an energy source used to power a vehicle that does not meet the definition of fuel in section 1 of chapter 64A.
            “Alternative fuel vehicle”, a vehicle powered by alternative fuel; provided, however, that an alternative fuel vehicle shall have the following attributes:
            (1) the capability of operating only on alternative fuel;
            (2) its original use was commenced with the taxpayer;
            (3) acquired by the taxpayer for use or lease, but not for resale; and
            (4) uses alternative fuel for a significant portion of the total fuel used for propulsion energy for the vehicle.

SECTION 39B.  Said section 1 of said chapter 90, as so appearing, is hereby further amended by inserting after the definition of “House trailer” the following definition:-
            “Hybrid vehicle”, (1) a vehicle which draws propulsion energy from onboard sources of stored energy which are both: (i) an internal combustion or heat engine using combustible fuel; and (ii) a rechargeable energy storage system; (2) a vehicle which, in the case of a passenger vehicle, medium duty passenger vehicle or light truck: (i) for model year 2002 and later model year vehicles, has received a certificate of conformity under the Clean Air Act and meets or exceeds the equivalent qualifying California low emission vehicle standard under section 243(e)(2) of said Clean Air Act for that make and model year; (ii) for model year 2004 and later model vehicles, has received a certificate that the vehicle meets or exceeds the Bin 5 Tier II emission level established in regulations prescribed by the administrator of the Environmental Protection Agency under section 202(i) of said Clean Air Act for that make and model year vehicle; and (iii) achieves an increase of 10 per cent fuel efficiency as compared to the average vehicle of its class as defined by the federal Environmental Protection Agency.

SECTION 40.  Section 221 of chapter 112 of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by inserting after the word “components”, in lines 19 and 20, the following words:- , as well as home energy score.

SECTION 41. 
Said section 221 of said chapter 112, as so appearing, is hereby further amended by inserting after the word “chapter”, in line 23, the following words:-, including home energy scoring personnel, under section 97A of chapter 13.

SECTION 42.
Section 222 of said chapter 112, as so appearing, is hereby amended by inserting after the word “performance”, in line 28, the following words:- , other than for the purposes of section 97A of chapter 13.

SECTION 43.
Section 3 of chapter 143 of the General Laws, as so appearing, is hereby amended by inserting after the word “structure”, in line 55, the following words:- , and the energy requirements imposed by clause (n) of section 94.

SECTION 44. 
 Section 94 of said chapter 143, as so appearing, is hereby amended by inserting after the word “ninety-six”, in line 61, the following words:- and including the energy conservation code.

SECTION 45.
  Said section 94 of said chapter 143, as so appearing, is hereby further amended by adding the following 4 clauses:-
(m) To adopt and fully integrate the latest International Energy Conservation Code as part of the state building code, together with any more stringent energy-efficiency provisions that the board, in consultation with the division of energy resources, concludes are warranted.  The energy provisions of the state building code shall be updated within 1 year of any revision to the International Energy Conservation Code.
(n) In consultation with the division of energy resources, to develop requirements and promulgate regulations as part of the state building code for the training and certification of city and town inspectors of buildings, building commissioners and local inspectors regarding the energy provisions of the state building code, and to require that all new construction and any major reconstruction, alteration or repair of residential and non-residential buildings pass inspection by inspectors who have been trained and certified, demonstrating full compliance with the energy provisions of the state building code.
(o) In consultation with the division of energy resources, to develop requirements and promulgate regulations as part of the state building code, in addition to the requirements of the latest  International Energy Conservation Code, requiring a process to ensure that all new non-residential buildings larger than 10,000 square feet and any major reconstruction, alteration or repair of all  such buildings  perform as designed with respect to energy consumption by undergoing building commissioning or acceptance testing.  Such commissioning must be completed before the issuance of a certificate of occupancy.
(p)  In consultation with the division of energy resources, professional organizations and other stakeholders, to prepare a report evaluating the advisability of a requirement of periodic commissioning for large non-residential buildings and, if such a requirement is deemed advisable, evaluating possible approaches to periodic commissioning.

SECTION 46.
Chapter 159 of the General Laws is hereby amended by striking out section 10, as amended by section 30 of chapter 19 of the acts of 2007, and inserting in place thereof the following section:-
Section 10.  The department of telecommunications and cable shall enforce this chapter to the extent that it relates to telecommunications.  The department of public utilities shall enforce all other provisions.

SECTION 47.
  Section 1 of chapter 164 of the General Laws,, as amended by section 36 of said chapter 19, is hereby amended by inserting after the definition of “Aggregator” the following definition:-
 “Alternative energy development”, shall include, but shall not be limited to, solar energy; wind; wood; alcohol; hydroelectric; biomass energy systems; renewable non-depletable; and recyclable energy sources.

SECTION 48.
 Said section 1 of said chapter 164, as so appearing, is hereby further amended by inserting after the definition of “Alternative energy producer” the following definition:-
 “Alternative energy property”, any property powered in whole or in part by the sun, wind, water, biomass, alcohol, wood, or any renewable, non-depletable or recyclable fuel, and property related to the exploration, development, processing, transportation and distribution of the aforementioned energy resources.
           
SECTION 49.  Said section 1 of said chapter 164, as so appearing, is hereby further amended by inserting after the definition of “Articles of organization: the following definition:-
  “Basic service”, the electricity services provided to a retail customer upon either: (i) the inability of a customer to receive competitive supply from a supplier under subsection (d) of section 1B; (ii) the failure of the retail customer to elect competitive supply from a supplier under said subsection (d) of said section 1B; or (iii) upon the expiration of and the retail customer’s failure to renew a competitive supply contract under said subsection (d) of said section 1B or other means.
           
SECTION 50.  Said section 1 of said chapter 164, as so appearing, is hereby further amended by striking out, in lines 49 and 50, the words “gas may be used if it is produced from coal, biomass, solid waste, or wood and”.
           
SECTION 51.  Said Section 1 of said chapter 164, as so appearing, is hereby further amended by striking out, in lines 49 and 55, the words “or gas”.
           
SECTION 52.  Said section 1 of said chapter 164, as so appearing, is hereby further amended by inserting after the word “department”, in lines 67 and 68, lines 86 and 87, 166 and line 227, each time it appears, the following words:- of public utilities.

SECTION 53.  Said section 1 of said chapter 164, as so appearing, is hereby further amended by inserting after the definition of  “Electric service” the following 5 definitions:-
“End user”, any individual, corporation, firm or subsidiary of any firm that is an ultimate consumer of petroleum products and which, as part of its normal business practices, purchases or obtains petroleum products from a wholesaler or reseller and receives delivery of that product.
“Energy audit”, a determination of the energy consumption characteristics of a building or facility which identifies the type, size and rate of energy consumption of such building or facility and the major energy using systems of such building or facility; determines appropriate energy conservation maintenance and operating procedures; and indicates the need, if any, for the acquisition and installation of energy conservation measures or alternative energy property.
“Energy conservation”, shall include, but shall not be limited to, the modification of or change in the operation of real or personal property in a manner likely to improve the efficiency of energy use,  energy conservation measures and any process to audit or identify and specify energy and cost savings.
“Energy conservation measures”, measures involving modifications of maintenance and operating procedures of a building or facility and installations therein, which are designed to reduce energy consumption in such building or facility, or the installation or modification of an installation in a building or facility which is primarily intended to reduce energy consumption.
“Energy conservation projects”, projects to promote energy conservation, including but not limited to, energy conserving modification to windows and doors; caulking and weatherstripping; combined heat and power facilities; insulation: automatic energy control systems; hot water systems; equipment required to operate variable steam, hydraulic and ventilating systems; plant and distribution system modifications including replacement of burners, furnaces or boilers; devices for modifying fuel openings; electrical or mechanical furnace ignition systems; utility plant system conversions; replacement or modification of lighting fixtures; energy recovery systems; and cogeneration systems.

SECTION 54.  Said section 1 of said chapter 164, as so appearing is hereby further amended by inserting after the definition of “Energy efficiency” the following definition:-
“Energy management services”, a program of services, including energy audits, energy conservation measures, energy conservation projects or a combination thereof, and building maintenance and financing services, primarily intended to reduce the cost of energy and water in operating buildings, which may be paid for in whole or in part, by cost savings attributable to a reduction in energy and water consumption which result from such services.

SECTION 55.  Said section 1 of said chapter 164, as so appearing, is hereby further amended by inserting after the word “electricity” in line 136, the following words:- or related services or products, including but not limited to, renewable energy generation attributes.

SECTION 56.  Said section 1 of said chapter 164, as so appearing, is hereby further amended by inserting after the definition of “Generation service” the following  definition:-
“Green building”, buildings, including but not limited to, homes, offices, schools, and hospitals constructed or renovated to incorporate design techniques, technologies, and materials that lessen its dependence on fossil fuels and minimize its overall negative environmental impact.

SECTION 57. Said section 1 of said chapter 164, as so appearing, is hereby further amended by inserting after the definition of “Horizontal market power” the following definition:-
“ISO-NE”, the independent system operator for New England.

SECTION 58.
 Said section 1 of said chapter 164, as so appearing, is hereby further amended by inserting after the definition of “Mitigation” the following 2 definitions:-
“Non-renewable energy supply and resource development”, shall include, but shall not be limited to, gasoline, natural gas, coal, nuclear energy, offshore and onshore petroleum and facilities related to the exploration, development, processing, transportation and distribution of such resources and programs established for the allocation of supplies of such resources and the development of supply shortage contingency plans.
“Petroleum products”, propane, gasoline, unleaded gasoline, kerosene, #2 heating oil, diesel fuel, kerosene base jet fuel, and #4, 5 and 6 residual oil for utility and non-utility uses, and all petroleum derivatives, whether in bond or not, which are commonly burned to produce heat, power, electricity or motion or which are commonly processed to produce synthetic gas for burning.

SECTION 59. 
Said section 1 of said chapter 164, as so appearing, is hereby further amended by inserting after the words “tidal energy”, in line 185, the following word:- ; geothermal.

SECTION 60.
 Said section 1 of said chapter 164, as so appearing, is hereby further amended by inserting after the definition of “Renewable energy” or “renewables” the following definition:-
“Reseller”, person, corporation, firm or subsidiary of any firm that carries on the trade or business of purchasing petroleum products and reselling them without substantially changing their form, or any wholesaler or retail seller of electricity or natural gas.

SECTION 61.
Said section 1 of said chapter 164, as so appearing, is hereby further amended by inserting after the definition of “small power production facility” the following definition:-
‘Steam distribution company’, a person, firm, partnership, association or private corporation operating a plant or equipment or facility for the manufacture, production, transmission, furnishing or distribution of steam to or for the public for compensation within the commonwealth; provided, however, that steam distribution company shall not include: (i) an entity producing and distributing steam exclusively on private property and solely for the entity’s use or the use of the entity’s tenant, and which is not for distribution or sale; or (ii) a company that produces and sells steam as a by-product of the production of electricity for sale in the wholesale electricity markets and does not own or operate pipelines off site of the generating facility for the distribution of steam.

SECTION 62.
  Said section 1 of said chapter 164, as so appearing, is hereby further amended by inserting after the definition of “Vertical market power” the following definition:-
            “Wholesaler”, any person, corporation, firm or any part or subsidiary of any firm which supplies, sells, transfers, or otherwise furnishes petroleum products to resellers or end-users.

SECTION 62A.
  Subsection (f) of section 1A of chapter 164 of the General Laws is hereby repealed.  

SECTION 63.
Said section 1A of said chapter 164, as so appearing, is hereby amended by adding the following subsection:-
(f) Neither this section nor sections 1B to 1H, inclusive, shall preclude an electric company or a distribution company from constructing, owning and operating generation facilities that produce renewable energy; provided, however, that such company shall not own or operate more than 25 megawatts of such facilities before January 1, 2009, and 50 megawatts of such a facility after January 1, 2010.  No electric company or distribution company may recover costs associated with the construction, ownership or operation of a generating facility producing renewable energy unless the renewable energy is produced from solar resources constructed by or for the electric company or distribution company and without obtaining prior approval for the costs from the department. Upon the filing by an electric company or a distribution company of a petition for pre-approval of cost recovery for a solar energy generating facility, the department shall determine whether the proposal is consistent with the commonwealth's energy policy and could be used to satisfy, in part, the renewable energy portfolio standard requirements set forth in section 11F of chapter 25A. The department shall issue an order within 6 months after the date of filing by the electric company or distribution company. The department may adopt such rules and regulations as may be necessary to implement this subsection.

SECTION 64.
  Section 1D of said chapter 164, as so appearing, is hereby amended by adding the following 3 paragraphs:-
Residential or small commercial customers: (i) initiating new utility service; (ii) reinstating service following a change of residence or business location; (iii) making an inquiry regarding their rates; or (iv) seeking information regarding energy efficiency shall be offered the option to learn about their ability to enroll with a participating non-utility competitive supplier of energy.  Customers expressing an interest in learning about their electric supply options shall be informed of offers available by participating non-utility competitive suppliers.  The electric distribution company shall describe then available offers available through a method approved by the department.  The information shall include, but shall not be limited to, the price and term of the available electric supply option.  Customers expressing an interest in a particular non-utility competitive supplier offer available shall be immediately transferred to a call center operated by the participating non-utility competitive supplier. 
Each calendar quarter, participating non-utility competitive suppliers of energy shall be allowed to list qualifying electric offers to provide electric generation service to residential and small commercial customers with each customer’s utility bill.  The department shall determine the manner such information is presented in customers’ utility bills.
For electric suppliers who have chosen the complete billing method, the electric distribution company shall make timely payments to such suppliers in accordance with this paragraph. The distribution company shall: (i) bill all of the of the electric supplier’s customers in a service class according to complete billing; (ii) pay such suppliers the full amounts due from customers for generation services in a time period consistent with the average payment period of the participating class of customer, less a percentage of such amounts that reflects the average of the uncollectible bills for the participating customer classes of the electric distribution company and other reasonable development, operating or carrying costs incurred, as approved by the department.

SECTION 65. 
Section 1E of said chapter 164, as so appearing, is hereby amended by striking out, in line 8, the words “service outages” and inserting in place thereof the following words:-  , service outages, successful implementation of the electric and natural gas resources cost procurement plans.

SECTION 66. 
Subsection (c) of said section 1E of said chapter 164, as so appearing, is hereby further amended by adding the following 7 sentences:- Each distribution and gas company also shall be required to file with the department an annual capital spending plan on such date specified by the department.  Such filing also shall include a report on capital spending from the prior year’s capital spending plan.  To the extent the utility has not reasonably complied with the prior year’s capital spending plan, the department may initiate an investigation.  In any such investigation, the utility shall have the burden of proof to show whether it had good cause for failing to reasonably comply with the capital spending plan.  If the utility does not meet its burden, the department may levy a fine of up to 2 per cent of transmission and distribution revenues, over and above any service quality fine authorized in this subsection, the amount of which shall depend upon the facts and circumstances and degree of fault.  In addition to the annual capital spending plan, the gas and electric distribution companies shall include a plan reasonably describing its program to comply with any inspection, maintenance, repair and replacement requirements under any applicable federal standards and any other applicable state standards identified by the department.  The department shall require each utility to maintain detailed records of its inspection and maintenance activities and to submit annual compliance reports to the department.

SECTION 67.
Subparagraph (i) of paragraph (4) of section 1F of said chapter 164, as so appearing, is hereby amended by striking out the second paragraph. 

SECTION 68.
Said paragraph (4) of said section 1F of said chapter 164, as so appearing, is hereby further amended by striking out subparagraphs (ii) and (iii) and inserting in place thereof the following subparagraph:-
(ii)   A residential customer eligible for low-income discount rates shall receive the service on demand. Each distribution company shall periodically notify all customers of the availability and method of obtaining low-income discount rates. An existing residential customer eligible for a low-income discount on the date of the start of retail access who orders service for the first time from a distribution company shall be offered basic service by that distribution company.

SECTION 69.
 Section 1G of said chapter 164, as so appearing, is hereby amended by striking out, in lines 366 to 367, the words “government regulations” and inserting in place thereof the following words:— telecommunications, utilities and energy.

SECTION 70.
 Section 47C of said chapter 164, as so appearing, is hereby amended by adding the following subsection:-
(l) The activities of a municipal lighting plant cooperative shall not be imputed to its individual members and the provision of energy brokering and other energy-related services by a municipal lighting plant cooperative to retail customers without any accompanying sale of electricity to such retail customers shall not constitute the supply of generation services by its members for the purposes of subsection (b) of section 47A.

SECTION 71.
  Section 47D of said chapter 164, as so appearing, is hereby amended by striking out, in lines 4 to 10, the words “necessary for protecting trade secrets, confidential, competitively sensitive or other proprietary information provided in the course of proceedings conducted pursuant to this chapter when such municipal lighting board determines that such disclosure will adversely affect its ability to conduct business in relation to other entities making, selling, or distributing electric power and energy pursuant to this chapter” and inserting in place thereof the following words:- the municipal light plant manager determines that disclosure of trade secrets or confidential, competitively sensitive or other proprietary information will adversely affect the plant’s customers or its ability to do business.

SECTION 72.  Section 76D of said chapter 164, as so appearing, is hereby amended by inserting after the word “companies”, in lines 1 to 2, line 14, the third time it appears, and in line 20, the second time it appears, in each instance, the following words:- , steam distribution companies.

SECTION 73.  Said section 76D of said chapter 164, as so appearing, is hereby amended by inserting after the word “company”, in line 9,  the following words:- , steam distribution company.

SECTION 74.  Said chapter 164, as so appearing, is hereby further amended by inserting after section 94A the following section:-
Section 94A ½.  No tariff or agreement providing for the interconnection or operation of a distributed generation unit owned and operated by and located on the property of the commonwealth or any political subdivision thereof or any federal agency shall require that such party pledge its credit or otherwise indemnify or provide insurance related to the interconnection and operation of distributed generation facilities.
           
SECTION 75.  Said chapter 164 is hereby further amended by striking out section 96, as appearing in the 2006 Official Edition, and inserting in place thereof the following section:-      
Section 96.  Electric and gas companies subject to this chapter and their holding companies may, notwithstanding any other provision of this chapter or any other general or special law to the contrary, consolidate or merge with one another, or may sell and convey their properties to another of such companies or to a wholesale generation company and such other company may purchase such properties, provided that such purchase, sale, consolidation or merger, and the terms thereof, have been approved at meetings called therefor by vote of the holders of at least two-thirds of each class of stock outstanding and entitled to vote on the question of each of the contracting companies, and that the department, after notice and public hearing, has determined that such purchase, sale, consolidation or merger, and the terms thereof, are consistent with the public interest.  The purchase or sale of properties by, or the consolidation or merger of, wholesale generation companies shall not require departmental approval.

SECTION 76.  Section 116 of said chapter 164, as so appearing, is hereby amended by inserting after the word “secretary” in line 2, the following words:- or municipal lighting plant manager.

SECTION 77.  Said section 116 of said chapter 164, as so appearing, is hereby further amended by inserting after the word “removal,”, in lines 11 and 12, the following words:- the gas or electric company employing.

SECTION 78.  Said section 116 of said chapter 164, as so appearing, is hereby further amended by striking out, in line 16,  the word “such” and inserting in place thereof the following words:- a duly authorized.

SECTION 79. 
Said section 116 of said chapter 164, as so appearing, is hereby further amended by adding the following sentence:-  A gas or electric company may direct a duly authorized employee to restore meters, pipes, wires, fittings works or service, consistent with the local bargaining agreement entered into by the company and the local bargaining unit to which the employee belongs.

SECTION 80.  Said chapter 164 is hereby further amended by striking out section 124G, as so appearing, and inserting in place thereof the following section:-
Section 124G. A gas or electric company which shuts off gas or electric service of a residential customer in compliance with this chapter shall, upon receipt of full payment or such partial payment by such customer as the department deems satisfactory, restore full and complete service.  A gas or electric company which shuts off gas or electric service of a residential customer eligible for the low-income energy assistance program under this chapter shall restore service upon receipt of full or partial payment by or on behalf of such customer as the department deems satisfactory, but in no case greater than 25 per cent of the amount in arrears. 
Gas and electric companies must offer any residential customer eligible for the low-income energy assistance program who has an account in arrears, but whose utility service has not yet been terminated, a payment plan of not less than 4 months including an initial down payment of not more than 25 per cent of the balance owed, and the remaining repayment balance amounts shall be divided equally; but, a company that seeks a repayment agreement of less than 4 months shall request approval from the department for good cause shown. A company making such a request shall notify the customer that the request has been made. This paragraph shall not limit the right of a customer to request a payment plan of more than 4 months or limit the authority of the department to order a payment plan of more than 4 months or a down payment of less than 25 per cent either on an individual basis or through revisions to its billing and termination regulations.

SECTION 81.  The fourth paragraph of section 134 of said chapter 164, as so appearing, is hereby amended by striking out the last sentence.

SECTION 82.  Said section 134 of said chapter 164, as so appearing, is hereby further amended by striking out, in lines 56 and 64, the words “standard offer” and inserting in place thereof, in each instance, the following word:- basic.
           
SECTION 83.  Said section 134 of said chapter 164, as so appearing, is hereby further amended by striking out, in line 74, the words “standard offer” and inserting in place thereof the following words:- basic service.

SECTION 84.  Said chapter 164 is hereby further amended by adding the following 6 sections:-
Section 138. As used in this section and sections 139 and 140, the following words shall, unless the context otherwise requires, have the following meanings:-
“Class I net metering credit”, a credit equal to the excess kilowatt-hours by time of use billing period, if applicable, multiplied by the sum of the distribution company’s: (i) default service kilowatt-hour charge in the ISO-NE load zone where the customer is located; (ii) distribution kilowatt-hour charge; (iii) transmission kilowatt-hour charge; and (iv) transition kilowatt-hour charge. This shall not include the demand side management and renewable energy kilowatt-hour charges set forth in sections 19 and 20 of chapter 25. The credit for a Class I net metering facility not using solar or wind as its energy source will be the average monthly clearing price at the ISO-NE.

“Class II net metering credit”, a credit equal to the excess kilowatt-hours by time of use billing period, if applicable, multiplied by the sum of the distribution company’s: (i) default service kilowatt-hour charge in the ISO-NE load zone where the customer is located; (ii) distribution kilowatt-hour charge; (iii) transmission kilowatt-hour charge; and (iv) transition kilowatt-hour charge. This shall not include thedemand side management and renewable energy kilowatt-hour charges set forth in sections 19 and 20 of chapter 25.

“Class II net metering facility”, a solar-net-metering facility or wind-net-metering facility with a generating capacity of more than 60 kilowatts but less than or equal to 1 megawatt; provided, however, that a Class II net metering facility owned or operated by a customer which is a municipality or other governmental entity may have a generating capacity of more than 60 kilowatts but less than or equal to 1 megawatt per unit.
“Class III net metering credit”, a credit equal to the excess kilowatt-hours by time of use billing period, if applicable, multiplied by the sum of the distribution company’s: (i) default service kilowatt-hour charge in the ISO-NE load zone where the customer is located; (ii) transmission kilowatt-hour charge; and (iii) transition kilowatt-hour charge.  Notwithstanding the foregoing, in the case of a customer which is a municipality or other governmental entity, the credit shall be equal to the excess kilowatt-hours multiplied by the sum of (i), (iii) and (iii), as set forth in the preceding sentence, and the distribution kilowatt-hour charge. This does not include the demand side management and renewable energy kilowatt-hour charges set forth in sections 19 and 20 of chapter 25.
“Class III net metering facility”, a solar-net-metering or wind-net-metering facility with a generating capacity of more than 1 megawatt but less than or equal to 2 megawatts; provided, however, that a Class III net metering facility owned or operated by a customer which is a municipality or other governmental entity may have a generating capacity of more than 1 megawatt but less than or equal to 2 megawatts per solar-net-metering or wind-net-metering unit.
“Customer”, a customer of a distribution company that is entitled to the net metering credits, including net metering facilities.

“Neighborhood”, a geographic area including and limited to a unique community of interests that is recognized as such by residents of such area and which, in addition to residential and undeveloped properties, may encompass commercial properties.
“Neighborhood net metering credit”, a credit equal to the excess kilowatt-hours by time of use billing period, if applicable, multiplied by the sum of the distribution company’s: (i) default service kilowatt-hour charge in the ISO-NE load zone where the customer is located; (ii) transmission kilowatt-hour charge; and (iii) transition kilowatt-hour charge.  This shall not include the demand side management and renewable energy kilowatt-hour charges set forth in sections 19 and 20 of chapter 25.
“Neighborhood net metering facility”, a Class I, II or III net metering facility that: (i) is owned by, or serves the energy needs of, a group of 10 or more residential customers that reside in a single neighborhood and are served by a single distribution company; and (ii) is located within the same neighborhood as the customers that own or are served by the facility.
“Net metering”, the process of measuring the difference between electricity delivered by a distribution company and electricity generated by a Class I, Class II, Class III or neighborhood net metering facility and fed back to the distribution company.
“Solar net metering facility”, a facility for the production of electrical energy that uses sunlight to generate electricity and is interconnected to a distribution company.
“Wind net metering facility”, a facility for the production of electrical energy that uses wind to generate electricity and is interconnected to a distribution company.
Section 139.  (a)  A distribution company customer that uses electricity generated by a Class I or Class II net metering facility may elect net metering as follows:-
1) If the electricity generated by the Class I or Class II net metering facility during a billing period exceeds the customer’s kilowatt-hour usage during the billing period, the customer shall be billed for 0 kilowatt-hour usage and the excess Class I or Class II net metering credits shall be credited to the customer’s account.  Credits may be carried forward from month to month.  A Class I or Class II wind or solar net metering facility may designate customers of the same distribution company to which the Class I or Class II wind or solar net metering facility is interconnected and that are located in the same ISO-NE load zone to receive such credits in amounts attributed by the Class I or Class II wind or solar net metering facility.  Written notice of the identities of the customers so designated and the amounts of the credits to be attributed to such customers shall be in a form as the distribution company shall reasonably require.

(2) If the customer’s kilowatt-hour usage exceeds the electricity generated by theClass I or Class II net metering facility during the billing period, the customer shall be responsible for the balance at the distribution company’s applicable rate.
(b)  A distribution company customer that uses electricity generated by a Class III net metering facility may elect net metering as follows:-
(1) If the electricity generated by the Class III net metering facility during a billing period exceeds the customer’s kilowatt-hour usage during the billing period, the customer shall be billed for 0 kilowatt-hour usage and the excess Class III net metering credits shall be credited to the customer’s account. Credits may be carried forward from month to month.  A Class III net metering facility may designate customers of the same distribution company to which the Class III net metering facility is interconnected and that are located in the same ISO-NE load zone to receive such credits in amounts attributed to such customers by the Class III net metering facility.  Written notice of the identities of the customers so designated and the amounts of the credits to be attributed to such customers shall be in a form as the distribution company shall reasonably require. A distribution company may elect not to allocate such credits and instead may purchase net metering credits from the facility at the rates provided for herein.
(2) If the customer’s kilowatt-hour usage exceeds the electricity generated by the III net metering facility during the billing period, the customer shall be responsible for the balance at the distribution company’s applicable rate.
(c) The distribution portion of any Class I, Class II or Class III net metering credits and distribution company delivery charges displaced by a Class I, Class II or Class III net metering facility shall be aggregated by the distribution company and billed to all customers on an annual basis through a uniform per kilowatt-hour surcharge or surcharges.
(d) The distribution company shall tariffs, as may be approved from time to time by the department, regarding necessary interconnection studies and the type, costs and timeframe for installing metering and distribution system upgrades to accommodate these installations.   Such tariffs shall require that all facilities maintain adequate insurance. Distribution companies shall be prohibited from imposing special fees on Class I net metering facilities, such as backup charges and demand charges, or additional controls or liability insurance, as long as the facility meets the other requirements of the interconnection tariff and all relevant safety and power quality standards.
Before providing net metering service under this section, a Class II or III net metering facility shall provide all necessary information to, and cooperate with, the distribution utility to which it is interconnected to enable the distribution utility to obtain the appropriate asset identification for reporting generation to ISO-NE.
(e) A Class I, II or III net metering facility or net metering customer shall not be: an electric utility, generation company, aggregator or supplier, energy marketer or energy broker, within the meaning of those terms as defined in sections 1 and 1F.
(f) The aggregate capacity of net metering shall not exceed 1 per cent of the distribution company’s peak load.  For the purpose of calculating the aggregate capacity, the capacity of a solar net metering facility shall be 80 per cent of the facility’s direct current rating at standard test conditions and the capacity of a wind net metering facility shall be the nameplate rating.
(g) The department shall promulgate rules and regulations necessary to carry out this section.
Section 140. A neighborhood net metering facility shall elect net metering as follows:-
(a)  If the electricity generated by the neighborhood net metering facility during a billing period exceeds its kilowatt-hour usage during the billing period, the neighborhood net metering facility shall be billed for 0 kilowatt-hour usage and the excess neighborhood net metering credits shall be credited to those customers identified by the neighborhood net metering facility as being served by the same company to which the neighborhood net metering facility is interconnected, residing in the same neighborhood in which is neighborhood net metering facility is located and having an ownership interest in the neighborhood net metering facility.  The amount of the excess neighborhood net metering credits to be attributed to each such customer shall be determined by the allocation provided by the neighborhood net metering facility.  Credits may be carried forward by such customers from month to month.  Written notice of the identity of the customers so designated and the allocation of the credits to be attributed to such customers shall be in such form as the distribution company shall reasonably require.
(b)  The department shall promulgate rules and regulations necessary to carry out this section, including, but not limited to, further defining the term “neighborhood” and limiting the number of customers that may be designated by neighborhood net metering facilities to receive neighborhood net metering credits.
Section 141.  In all decisions or actions regarding rate designs, the department shall consider the impacts of such actions, including the impact of new financial incentives on the successful development of energy efficiency and on-site generation.  Where the scale of on-site generation would have an impact on affordability for low-income customers, a fully compensating adjustment shall be made to the low-income rate discount.
Section 142.  The department shall continue to remove any impediments to the development of efficient, low-emissions distributed generation, including combined heat and power, taking into account the need to appropriately allocate any associated costs in a fair and equitable manner.  For the purposes of this section, “efficient, low-emissions” shall mean an efficiency of 60 per cent or greater on an annual basis and emissions lower than required by the department of environmental protection.
Section 143. (a)  For the purposes of this section, the term “small municipal renewable energy generating facility” shall mean a generating unit that is designed for, or capable of, operating at a gross capacity of less than 10 megawatts and that qualifies as a Class I renewable energy generating source under section 11F of chapter 25A.
(b)  Notwithstanding any general or special law to the contrary, a municipality may design, install, own and operate small municipal renewable energy generating facilities, sell any electricity generated from such facilities and sell any other marketable products resulting from its generation of renewable energy at such facilities, including electronic certificates created to represent the generation attributes, as defined in 225 CMR 14.02, of each megawatt hour of energy generated by the renewable energy facilities; provided, however, that no later than 15 days after the initiation of a procurement of services, equipment or materials related to a small municipal renewable energy generating facility and again no later than 15 days after the date that such small municipal renewable energy generating facility first produces electrical energy, said municipality shall submit a report to the department of public utilities and the division of energy resources detailing the costs of the small municipal renewable energy generating facility and a plan and forecast for the disposition of the facility’s products.  The division of energy resources shall annually issue a report containing information on small municipal renewable energy generating facilities, including the number, capacity, production and performance of such facilities and recommendations, if any, for additional legislative action to increase the benefits available to municipalities through ownership of renewable energy generating facilities.  The division shall submit such report, including drafts of legislation to implement recommendations within such report, to the joint committee on telecommunications, utilities and energy and the house and senate committees on ways and means no later than April 30 of each year.
(c) A municipality may issue from time to time bonds or notes in order to finance all or a portion of the costs of small municipal renewable energy generating facility projects authorized under this section.  Notwithstanding any provision of chapter 44 to the contrary, the maturities of any such bonds issued by a municipality hereunder either shall be arranged so that for each issue the annual combined payments of principal and interest payable in each year, commencing with the first year in which a principal payment is required, shall be as nearly equal as practicable in the opinion of the municipal treasurer or shall be arranged in accordance with a schedule providing for a more rapid amortization of principal.  The first payment of principal of each issue of bonds or of any temporary notes issued in anticipation of the bonds, shall be not later than 5 years after the anticipated date of commencement of the regular operation of the small municipal renewable energy generating facilities financed thereby, as determined by the municipal treasurer, and the last payment of principal of the bonds shall be not later than 25 years from the date of the bonds.  Indebtedness incurred under this section shall not be included in determining the limit of indebtedness of a municipality under section 10 of said chapter 44 but, except as otherwise provided herein, shall be subject to the provisions of said chapter 44.
(d)  A municipality shall procure any services required for the design, installation, improvement, repair and operation of small municipal renewable energy generating facilities authorized under this section, and acquire any equipment necessary in connection therewith, in accordance with the procurement requirements of chapter 30B as applicable, a municipality may procure any such services and equipment together as 1 procurement or as separate procurements thereunder.  
(e)  A municipality may establish an enterprise fund under section 53F1/2 of chapter 44 for the receipt of all revenues from the operation of small municipal renewable energy generating facilities authorized under this section to operate and all moneys received for the benefit of such small municipal renewable energy generating facilities, other than the proceeds of bonds or notes issued therefore.  Such receipts shall be used to pay the costs of operation and maintenance of the small municipal renewable energy generating facilities, to pay the costs of future improvements and repairs thereto and to pay the principals and interest on any bonds or notes issued therefor.
Section 144. (a) As used in this section, the following words shall have the following meanings unless context otherwise requires:
“Agricultural net metering facility”, a Renewable Energy generating facility operated as part of an Agricultural business that generates electricity that does not have a generation capacity of more than 2000 kilowatts and is located on land owned or controlled by the agricultural business and is used to provide energy to metered accounts of the business.
“Agriculture”, the same meaning as provided in section 1A of chapter 128; provided, however, that when necessary, the commissioner of agricultural resources shall determine if a business is an agricultural business.
“Annualized period”, a period of 12 consecutive months beginning on the first day of the first full monthly billing period of the agricultural business after which the agricultural net metering facility is interconnected and is generating electricity.
 “Net metering”, the process by which an agricultural business is credited at the full retail rate for the difference between electricity delivered by an electric distribution company and the electricity generated by the agricultural net metering facility of the agricultural business up to the total amount of the electricity used by the agricultural business, and by which, at the end of the annualized period, the agricultural business is compensated for any excess electricity generated at the supplier's avoided cost of wholesale power.
“Renewable energy”, energy generated from any of the following: solar photovoltaic or solar thermal electric energy; wind energy; fuel cells utilizing renewable fuels; naturally-flowing water and hydroelectric; reduced emission; advanced biomass power conversion technologies, such as gasification using such biomass fuels as wood, agricultural or food wastes; energy crops; biogas, biodiesel or organic refuse-derived fuel; provided, however, that after conducting administrative proceedings, the division of energy resources, in consultation with the department of agriculture, may add technologies or technology categories to the above list.
(b) Distribution companies and supplier-providers shall offer net metering to a customer who is an agricultural business that utilizes an agricultural net metering facility to generate electricity on the customer's side of the meter.
For the purposes of this section, an individually-metered location serviced by the same distribution company or supplier-provider that is owned or controlled by the agricultural business and is located within 25 miles of the agricultural net metering facility shall be treated as 1 account at the discretion of the agricultural business.  Net metering shall occur on the entire account.
Distribution companies and supplier-providers shall not impose special or additional fees on agricultural businesses utilizing net metering including, but not limited to, backup charges, stand-by charges, minimum transformer charges, interconnection fees, transportation charges on energy credited within an annualized period, or from requiring additional controls or liability insurance so long as the agricultural net metering facility complies with the applicable interconnection, safety and power quality standards.
The division of renewable energy shall, in consultation with the department of agricultural resources, promulgate regulations necessary to promote the use of renewable energy production on farms.

SECTION 85.  The General Laws are hereby further amended by inserting after chapter 164A the following chapter:-

CHAPTER 164B
REGULATION OF STEAM DISTRIBUTION COMPANIES

Section 1.  For purposes of this chapter, the term “department” shall refer to the department of public utilities. 
The department shall have supervision of facilities operated by steam distribution companies for the sole purpose of ensuring public safety and shall establish reasonable rules and regulations pertaining to the construction and operation of steam distribution facilities and equipment used in manufacturing and transporting steam. The department shall keep itself informed as to the methods, practices, and condition of all facilities and equipment associated with the distribution of steam, including ducts and conduits, and shall make such examinations and investigations of the steam distribution system as necessary, including the adequacy of operation, maintenance and capital improvements to insure safe operation of facilities operated by a steam distribution company.
Section 2.  Each steam distribution company shall file a certified copy of its certificate of incorporation and bylaws with the department. By March first of each year each company shall file a report on safety related matters as the department may specify, including but not limited to number, duration and causes of all steam leakage incidents, distribution system accidents and service outages, time elapsed between the incident and the return to service following a repair. The department may levy fines against a steam distribution company for failure to comply with regulations promulgated by the department.  In determining the appropriateness of any fine, the department shall consider the seriousness of the violation and the good faith compliance efforts of the steam distribution company.
Section 3.  The department shall provide written notice to attorney general of any violation of this chapter. The department’s authority shall not diminish the authority of any municipality to regulate steam distribution, nor shall it diminish the authority of the department of public safety under chapter 146.

SECTION 86.  Section 17B of chapter 271 of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by striking out, in lines 4 and 5, the words “energy, as defined in paragraph (d) of section twelve of chapter one hundred and fifty-nine” and inserting in place thereof the following words:-  cable or the department of public utilities.

SECTION 87.  Section 22 of chapter 140 of the acts of 2005 is hereby amended by striking out the words “section 11C of chapter 25” and inserting in place thereof the following words:-  section 11I of chapter 25A.

SECTION 88.  Section 23 of said chapter 140 is hereby amended by striking out the words “section 11C of chapter 25” and inserting in place thereof the following words:- section 11I of chapter 25A.

SECTION 89.  Commencing on July 1, 2008, and continuing for a period of 5 years thereafter, each distribution company, as defined in section 1 of chapter 164 of the General Laws, shall be required twice in that 5 year period to solicit proposals from renewable energy developers and, provided reasonable proposals have been received, enter into cost effective long term contracts to facilitate the financing of renewable energy generation within the jurisdictional boundaries of the commonwealth, including state waters in accordance with a comprehensive ocean management plan, or in adjacent federal waters.  Said distribution companies may also voluntarily solicit additional such proposals over the 5 year period.  The timetable and method for solicitation and execution of such contracts shall be proposed by the distribution company in consultation with the division of energy resources and shall be subject to review and approval by the department of public utilities. This long term contracting obligation shall be separate and distinct from the electric distribution companies’ obligation to meet applicable annual Renewable Portfolio Standard, hereinafter referred to as RPS, requirements, set forth in section 11F of chapter 25A of the General Laws.  
For purposes of this section, a long-term contract is defined as a contract with a term of 15 to 20 years.  In developing the provisions of proposed long term contracts, the distribution company shall consider multiple contracting methods, including long-term contracts for Renewable Energy Certificates, hereinafter referred to as RECs, for energy, and for a combination of both RECs and energy.  The electric distribution company shall select a reasonable method of soliciting proposals from renewable energy developers, which may include public solicitations, individual negotiations, or other methods. The distribution company may decline to consider contract proposals having terms and conditions that it determines would require the contract obligation to place an unreasonable burden on the distribution company’s balance sheet.  The distribution company shall consult with the division of energy resources regarding its choice of contracting methods and solicitation methods.  All proposed contracts shall be subject to the review and approval of the department of public utilities.
The department of public utilities and the division of energy resources each shall adopt regulations consistent with this section.  The regulations shall: (a) allow renewable energy developers to submit proposals for long term contracts conforming to the contracting methods specified in the second paragraph; (b) require that any contracts executed by the distribution company under such proposals are filed with, and approved by, the department before they become effective; (c) provide for an annual remuneration for the contracting distribution company equal to 4 per cent of the annual payments under the contract to compensate said company for accepting the financial obligation of the long term contract, such provision to be acted upon by the department at the time of contract approval; and (d) require that the renewable energy generating source to be used by such developer under such proposal meet the following criteria: (i) have a commercial operation date, as verified by the division, on or after January 1, 2008; (ii) be located within the jurisdictional boundaries of the commonwealth, including state waters, or in adjacent federal waters; (iii) be qualified by the division as eligible to participate in the RPS program, under said section 11F of chapter 25A, and to sell RECs under such program; (iv) be determined by the department to: (1) provide enhanced electricity reliability within the commonwealth; (2) contribute to moderating system peak load requirements; (3) be cost effective to Massachusetts electric rate payers over the term of the contract; and (4) where feasible, create additional employment in the Commonwealth.  As part of its approval process, the department shall consider the attorney general’s recommendations, which shall be submitted to the department within 45 days following the filing of such contracts with the department.  The department shall take into consideration both the potential costs and benefits of such contracts, and shall approve a contract only upon a finding that it is a cost effective mechanism for procuring renewable energy on a long-term basis
The distribution company shall not be obligated to enter into long-term contracts under this section that would, in the aggregate, exceed 3 per cent of the total energy demand from all distribution customers in the service territory of the distribution company.   As long as the electric distribution company has entered into long term contracts in compliance with this section, it shall not be required by regulation or order to enter into contracts with terms of more than 3 years in meeting its applicable annual RPS requirements set forth in said section 11F of said chapter 25A, unless the department of public utilities finds that such contracts are in the best interest of customers; provided, however, that the electric distribution company may execute such contracts voluntarily, subject to the department’s approval.
An electric distribution company may elect to use any energy purchased under such contracts for resale to its customers, and may elect to retain RECs for purpose of meeting its applicable annual RPS requirements set forth in said section 11F of said chapter 25A.  If the energy and RECs are not so used, such companies shall sell such purchased energy into the wholesale spot market and shall sell such purchased RECs through a competitive bid process.  Notwithstanding the foregoing, the department shall conduct periodic reviews to determine the impact on the energy and REC markets of the disposition of energy and RECs hereunder, and may issue reports recommending legislative changes if it determines that actions are being taken that will adversely affect the energy and REC markets. 
If the distribution company sells the purchased energy into the wholesale spot market and auctions the RECs as described in fifth  paragraph, the distribution company shall net the cost of payments made to projects under the long-term contracts against the proceeds obtained from the sale of energy and RECs, and the difference shall be credited or charged to all distribution customers through a uniform fully reconciling annual factor in distribution rates, subject to review and approval of the department of public utilities.  The reconciliation process shall be designed so that the distribution company recovers all costs incurred under such contracts.
In the event the RPS requirements of said section 11F of said chapter 25A should ever terminate, the obligation to continue periodic solicitations to enter into long term contracts shall cease, but any contracts already executed and approved by the department of public utilities shall remain in full force and effect.
On or before July 1, 2010, and annually until the long term contracting requirement expires, the division of energy resources shall assess whether the long-term contracting requirements set forth in this section reasonably support the renewable energy goals of the commonwealth as set forth in said section 11F of said chapter 25A, and whether the alternative compliance rate established under said section 11F should be adjusted accordingly.
The provisions of this section shall not limit consideration of other contracts for RECs or power submitted by a distribution company for review and approval by the department of public utilities.
If any provision of this section is subject to a judicial challenge, the department of public utilities may suspend the applicability of the challenged provision during the pendency of the judicial action until final resolution of the challenge and any appeals, and shall issue such orders and take such other actions as are necessary to ensure that the provisions that are not challenged are implemented expeditiously to achieve the public purposes of this provision.

SECTION 90.  On or before September 1, 2008, each electric distribution utility shall propose to the department of public utilities an “energy pay and save”, hereinafter referred to as EPS, pilot program, allowing electric utility customers to purchase and install renewable energy products in their residences or commercial facilities by paying the cost of the system over time through an additional charge on the customer's electricity bill. The cost of the products purchased under the pilot program shall be added to the electric utility customer’s utility bills in a form approved by the department, as a monthly EPS tariff, and shall be paid until the cost of purchase and installation of the products is paid off.  The payment structure shall be implemented so that the charge on the electric utility customer’s utility bill shall be less than that customer’s energy savings over the course of each given year. Non-payment by the owner of the EPS tariff shall result in disconnection and a utility shall be entitled to recover the debt.
The pilot program shall be established with a minimum of 50 participants and a maximum of 200 participants.  The maximum project size for the program shall be $1,000 for commercial utility customers and $500 for residential utility customers. Portable electrical cost measures shall not be funded. Quick pay options shall be investigated, allowing customers to have the option to pay off the entire balance of the amount financed on the first billing cycle. The program shall be funded from such sources as determined by the secretary of energy and environmental affairs and such funds shall be used to offset the cost of the program for the utilities, and as such payments for the purchases are paid to said utilities.
The pilot program shall be implemented on or before June 1, 2008 and shall expire on December 31, 2008. The secretary and the department shall issue a final report, which shall include the results of its review and analysis, to the joint committee on telecommunications, utilities and energy and the house and senate committees on ways and means on or before June 1, 2009.

SECTION 91.  On or before September 1, 2008, each electric distribution company shall file a proposed plan with the department of public utilities to establish a 12 month pilot program for a “smart grid” that utilizes the electric delivery system, advanced (“smart”) meters including, but not limited to, advanced smart meters with 2-way mesh network capacity and other advanced technology to operate an integrated grid network communication system in a limited geographic area.  Each smart grid pilot program shall include, but not be limited to advanced (“smart”) meters that provide real time measurement and communication of energy consumption, implementation of phone and e-mail notification systems to warn those customers of high prices so they can reduce their usage accordingly, automated load management systems embedded within current demand side management programs and remote status detection and operation of distribution system equipment.  On or before September 1, 2008, each electric distribution company shall file a proposal with the department of public utilities to implement a 12 month pilot program that requires time of use or hourly pricing for commodity service for up to 0.5 per cent of the company’s customers.  A specific objective of the pilot program shall be to reduce, for those customers who actively participate in the pilot, average loads by a minimum of 5 per cent.  The programs filed by the distribution company shall include proposals for rate treatment of incremental program costs; provided, however, that such program costs may be deemed by the department to be a cost of basic service and recovered in rates charged for basic service.  The department of public utilities shall review and approve or modify such plans on or before January 1, 2009.  Plans which provide for larger numbers of customers and which can show higher bill savings than outlined above would be eligible to earn incentives as outlined in an approved plan.  Following the completion of the pilot programs, the secretary of energy and environmental affairs shall submit a report to the joint committee on telecommunications, utilities and energy no later than February 1, 2010 detailing the operation and results of such programs, including information concerning changes in consumer’s energy use patterns, any identified disincentives to the deployment of smart grid systems throughout the commonwealth, an assessment of the value of the program to both participants and non-participants and recommendations concerning modification or expansion of the programs and further deployment and implementation.

SECTION 92. 
The department of public utilities shall direct all distribution companies, as defined in section 1F of chapter 164 of the General Laws, to submit a plan within 60 days of the effective date of this act providing for retail access to competitive sellers of renewable energy generation attributes, whether or not bundled with electricity.   The department shall approve or modify such plan after an opportunity for notice and comment by all interested persons and shall ensure that such plan does not provide said distribution companies with a market advantage over competitive suppliers of renewable energy generation attributes; provided, however, that if a distribution company provides retail access to competitive sellers of renewable energy generation attributes prior to the effective date of this act, it shall not be required to file a plan under  this section.

SECTION 93.
 There is hereby established a special commission to consist of  3 members of the senate, 1 of whom shall be the senate chair of the joint committee on telecommunications, utilities and energy, who shall serve as co-chair of the commission, and 1 of whom shall be appointed by the senate minority leader; and 3 members of the house of representatives, 1 of whom shall be the house chair for the joint committee on telecommunications, utilities and energy, who shall serve as co-chair of the  commission, and 1 of whom shall be appointed by the house minority leader; the commissioner of the division of energy resources or his designee; the secretary of energy and environmental affairs or his designee; and 3 persons to be appointed by the governor, 1 of whom shall be a representative of the waste-to-energy industry and 1 of whom shall be a representative of a consumer advocacy organization, for the purpose of making an investigation and study relative to the burning of commercial and demolition waste as it relates to the Massachusetts Renewable Energy Portfolio Standard Program established by section 11F of chapter 25A of the General Laws. The study shall include an investigation into the feasibility of removing and managing the residue of all contaminants, such as lead paint, preservatives, finishes and coatings, prior to use as a fuel, and management options for using contaminated wood and a review of the environmental impacts of using such residue as fuel. The commission shall report the results of its investigation and study and its recommendations, if any, together with drafts of legislation necessary to carry its recommendations into effect by filing the same with the clerks of the senate and the house of representatives on or before July 1, 2008.

SECTION 93A. 
There shall be a green building plan commission to examine the environmental and economic impact of establishing a green building plan for the commonwealth.  The members of the commission shall be as follows:  the commissioner of energy resources or his designee; the director of housing and community development or his designee; the secretary of environmental affairs or his designee; the secretary of administration and finance or his designee; 1 person to be appointed by the senate president;  1 person to be appointed by the speaker of the house;  1 person to be appointed by the senate minority leader1 1 person to be appointed by the house minority  leader of the house; the lieutenant governor or his designee who shall be the chair of the commission; 1 person to be appointed by the Worcester Polytechnic Institute; 1 person to be appointed by the chancellor of the University of Massachusetts at Lowell; 1 person to be appointed by the president of the Massachusetts Institute of Technology; the director of the Massachusetts Technology Collaborative or his designee; 1 person to be appointed by the commissioner of the revenue; a person appointed by the Massachusetts Municipal Association; and a representative of the Boston Society of Architects.  The chair shall have no vote except in the event of a tie vote.   The committee shall issue a report of its findings to the clerks of the senate and house of representatives not later than December 31, 2008.

SECTION 93B.  There shall be a commission on the siting of energy production facilities, for the purposes of developing environmental criteria with regard to siting or expansion of energy or energy storage facilities and reviewing and analyzing current regulations at the state and local levels for the development of energy production and transmission facilities and making recommendations for any potential modifications, revisions or reforms. 
In carrying out the purposes of the commission, the members shall consider the need to develop new and sustainable forms of renewable energy, such as those based on wind and solar energy, the authority of municipalities to regulate such development, the impacts upon communities of such development, the environmental impacts of such development including, but not limited to, impacts on biodiversity, including plant and animal species, terrestrial, freshwater and marine ecosystems,  the balance between the benefits of renewable energy projects and their impacts, and the balance between the regulatory burden attached to developing such projects and their environmental and economic benefits to the commonwealth and its political subdivisions.
The commission shall consist of the secretary of energy and environmental affairs or his designee who shall be the chair of the commission;  the secretary of housing and economic development or his designee; the commissioner of energy resources; the commissioner of environmental protection or his designee; the commissioner of conservation and recreation or his designee; the director of  coastal zone management or his designee; a member of the energy facilities siting board; 3 members of the house of representatives, at least 1 of whom shall represent the minority party; 3 members of the senate, at least 1 of whom shall represent the minority party; 1 representative of the gas industry; and 2 representatives of ratepayers, 1 of whom shall be appointed by the speaker of the house and 1 of whom shall be appointed by the president of the senate; and the following members who shall be appointed by the chair:  3 municipal officials representing communities of diverse size to be nominated by the Massachusetts Municipal Association, 1 of whom shall be a member of the Massachusetts Municipal Association and 2 of whom shall be representatives of environmental organizations, 1 of which shall be a land and water conservation organization; 2 representatives of the alternative and renewable energy industry;  and 1 representative of the electric industry.
The commission shall report its findings and its recommendations, together with drafts of legislation necessary to carry those recommendations into effect by filing the same with the clerks of the senate and house of representatives, the joint committee on telecommunications, utilities and energy and the house and senate committees on ways and means not later than 18 months after the effective date of this act.

SECTION 94.  The division of energy resources shall establish a pilot program to assist consumers with the purchase of energy efficient items for residential home modifications, hereinafter referred to as the HEAT Loan Program.  For the purposes of this program, energy efficient items shall include home insulation, new window installation, advanced programmable thermostats, micro-combined heat and power systems, fuel efficient furnaces, boilers, oil, gas, propane, or electric heating systems; solar, domestic or fuel efficient hot water systems; materials for insulation or sealing of a duct, attic, basement, rim joint or wall; pipe insulation for heating systems; or other retail items for use in a residential dwelling that increase the energy efficiency of said dwelling.
In establishing the program, the division shall develop a list of qualified state or federally chartered banking institutions or credit unions that do business in the commonwealth and that are governed by chapter 167 or 171 of the General Laws as participatory lending institutions. For the purposes of this section, a qualified lending institution shall include a lending institution, as described herein that is certified by the executive office of energy and environmental affairs and which shall offer zero and low interest loans for the purpose of enhancing the energy efficiency of a residential dwelling. The program shall be funded from that portion of the mandatory charge that is authorized by this section and allocated to residential customers consistent with section 19 of chapter 25 of the General Laws; provided, however, that not less than $5,000,000 shall be made available to assist participating financial institutions in offering said loan products by or through interest rate write downs or other credit enhancement features; and provided further, that loans offered under the program shall be offered to residential homeowners in the commonwealth solely for the purposes stated herein. The division shall make such loans available for purchases made on or after January 1, 2009, but not later than December 31, 2009. The division shall establish the rules and guidelines to carry out the purposes of this section, including, but not limited to, establishing applicant criteria, application forms and procedures, and energy efficiency product requirements and lending institution tracking and reporting requirements. The division shall submit a report detailing the rules and guidelines and the program results to the joint committee on telecommunications, utilities and energy not later than June 30, 2010.
           
SECTION 95.  On or before January 1, 2011, the department of public utilities, in consultation with the division of energy resources, shall file a report on the effectiveness of the programs administered under section 19 of chapter 25 of the General Laws.  The report shall include a financial account of all funds incurred by and administered under the section, and any recommendations deemed appropriate by the department, including but not limited to, the increase, reduction or elimination of any mandatory charges authorized under said section 19 of said chapter 25 as they may relate to programs and plans under sections 21 and 22 of said chapter 25; provided, however, that any recommendation for reduction or elimination should include a mechanism to ensure continued adequate funding for comprehensive low income demand side management and education programs.  The report shall be filed with the clerks of the senate and house of representatives  who shall forward the same to the house and senate committees on ways and means and the joint committee on telecommunications, utilities and energy.

SECTION 96.  The department of public utilities shall hold a public hearing and issue a report, no later than July 1, 2008, relative to the replacement of meters for measuring electricity and gas to customers and the maintenance and improvements of gate boxes located in the streets, roads or sidewalks to be repaired by electric companies, gas companies and municipal lighting plants.  The report shall include an evaluation of the frequency of replacements of meters and maintenance of gate boxes, the standards and practices employed by distribution companies and municipal lighting plants to determine when replacement of meters and maintenance of gate boxes is necessary, and rate impacts and cost benefit analysis of installing advanced metering technology.  The department shall report its recommendations and proposed legislation, if any to the house and senate committees on ways and means and the joint committee on telecommunications, utilities and energy.

SECTION 97. 
Notwithstanding any general or special law to the contrary, the division of energy resources shall make available monies from amounts collected through “Alternative Compliance Payments” established and administered under 225 CMR 14.00 promulgated under  section 11F of chapter 25A, in the form of grants or other financial incentives for the following: (i) state or community colleges in the commonwealth engaged in developing renewable energy generation projects, energy generation demonstration and educational programs, or applied engineering teaching tools pertaining to energy generation; (ii) commonwealth based companies engaged in developing flywheel energy storage technologies; and (iii) funding capital investments in new and existing generation units for the use of department of environmental protection approved beneficial use determination paper derived fuels manufactured by Massachusetts corporations.

SECTION 98.
  Notwithstanding any provision of any general or special law to the contrary, when any political subdivision of the commonwealth, including any city or town, any state or community college, any executive branch agency, department, board, bureau, office or commission, any state authority or any other state public instrumentality created by an act of the general court that plans any renewable energy project consistent with the goals established by Executive Order No. 484, dated April 18, 2007, and plans on commencing such project upon real estate owned or controlled by the commonwealth or under the custody or control of the division of capital asset management and maintenance, or of any state agency or authority, the proponent of the project and the commonwealth, or applicable agency or authority, shall enter into a memorandum of understanding for a long term lease agreement establishing the terms and conditions upon which such project may be built or implemented upon such real estate.

SECTION 99.
The department of public utilities, in consultation with the division of energy resources, shall review and assess the effects of allowing electric and distribution companies to construct, own or operate renewable generation facilities under subsection (f) of section 1A of chapter 164 of the General Laws.  This report shall be completed and filed with the joint committee on telecommunications, utilities and energy, and the house and senate committees on ways and means, and the clerks of the senate and house of representatives not later than June 30, 2011.  This report shall include any legislative and regulatory recommendations including but not limited to continuation, expansion or elimination of any provisions of this program under said subsection (f).

SECTION 99A. 
The merger or consolidation of holding companies pursuant to section 96 of chapter 164 of the General Laws that has been filed and approved by the Federal Energy Regulatory Commission before the effective date of this act shall not be subject to the requirements of said section 96 of said chapter 164 as provided in this act.
SECTION 100.  The division of energy resources, in consultation with the division of capital asset management and maintenance shall establish, not later than July 1, 2008, a methodology for use by agencies in assessing life-cycle costs that includes the requirements and assumptions set forth in subsections (a) and (b) of section 39D of chapter 7 of the General Laws.

SECTION 101. 
On or before December 31, 2008, the energy advisory council appointed under section 22 of chapter 25 of the General Laws shall undertake, using third party experts, a study which examines the energy efficiency and demand response programs in the commonwealth, including all public and private funding sources.  The study shall include an audit of all existing energy efficiency and demand response programs to identify the costs and benefits associated with such programs. 

SECTION 102. 
Not later than September 1, 2008, the department of public utilities shall establish terms and conditions under which a participating non-utility competitive supplier may be included in the program described in section 1D of chapter 164 of the General Laws. 

SECTION 103. 
Notwithstanding any general or special law to the contrary, the Massachusetts Technology Park Corporation shall, on or before July 1, 2008, submit to the house and senate committees on ways and means and the joint committees on telecommunications, utilities and energy and economic development and emerging technologies an update of the detailed plan described in paragraph (d) of section 4E of chapter 40J of the General Laws setting forth a 5-year strategic plan for the Massachusetts Renewable Energy Trust Fund and its administration.  Said strategic plan for the fund and its administration shall be developed in consultation with the oversight board described in paragraph (i) of said section 4E and shall contain said oversight board’s comments.

SECTION 103A.
Section 1 of chapter 775 of the acts of 1975 is hereby amended by inserting after the definition of “Department” the following definition:-
“Energy”, electricity, electric power, electric capacity, electric energy, natural gas, liquified natural gas, LP air gas, propane air, synthetic natural gas, oil, steam, coal, water, wind, battery, or any byproducts, derivatives, services, ancillary products or ancillary services, including, but not limited to, reactive power/voltage control, loss compensation, scheduling and dispatch, load following, system protection service and energy imbalance service, emissions allowances, or the transmission, transportation, storage, purchase, sale, exchange or interchange of energy capacity, either electric or other, distribution, disposal, decommissioning thereof, or the transmission, transportation,  storage, disposal, decommissioning or distribution of any byproducts thereof.


SECTION 103B. Said section 1 of said chapter 775 is hereby further amended by striking out the definition of “Electric power facilities” or “electric power facility”, as inserted by section 2 of chapter 129 of the acts of 1988, and inserting in place thereof the following definition:-
“Energy facilities” or “energy facility”, electric power facilities, an electric power facility, or any system or facility, or any interest in, or right to the use of, services derived from these facilities, facility or system or any part of a facility or system, including any energy conservation system, system for the production of renewable energy, or alternative energy facility for the manufacture, generation, transmission, distribution, transformation, transportation, storage, purchase, sale, exchange or interchange or conservation of energy or any byproducts or ancillary products or services by any means whatsoever, including, but not limited to, vehicles, personal or real property and any facility for processing refuse or other materials into fuel with or without other byproducts, or facilities and property for the acquisition, extraction, conversion, transportation, storage, reprocessing, or disposal of fuel and other material of any kind for any of these purposes, as necessary to carry out the purposes of this act.

SECTION 103C.  Section 5 of said chapter 775 is hereby amended by striking out clauses (h) and (i) and inserting in place thereof the following 2 clauses:-
(h)  to sell, lease, mortgage, exchange, transfer or otherwise dispose of, or to grant options for any such purposes with respect to any real or personal property or interest therein, with or without consideration and notwithstanding whether the real or personal property is needed by or useful to the corporation, all upon such terms and conditions as the corporation shall determine;
(i)  to pledge or assign any money, fees, charges, or other revenue of the agency, or any real or personal property and any proceeds derived by the corporation from the sale of energy, property or insurance or condemnation  awards;.

SECTION 103D.  Said section 5 of said chapter 775 is hereby further amended by striking out clauses (k) to (p), inclusive, and inserting in place thereof the following 2 clauses:-
(k)  to borrow money and issue its bonds, as  provided in this act, and to provide a pooled loan program on behalf of and for the benefit of its members, to make loans to its members and to enter into leases on behalf of its members, both as lessee or lessor;
(l)  to purchase energy at wholesale, including, but not limited to, all or a portion of the capacity and output of energy facilities and steam, whether or not produced by an electric power facility;

SECTION 103E. Clause (s) of said section 5 of said chapter 775 is hereby amended by striking out the word “fanctions” and inserting in place thereof the following word:-  functions.

SECTION 103F. Said section 5 of said chapter 775 is hereby further amended by striking out clause (t) and inserting in place thereof the following 3 clauses:-
(t) to enter into contracts determined by the corporation to be necessary or for the prudent management of the corporation’s assets, funds, debts or fuels, including without limitation, interest rate swaps, option contracts, future contracts, forward purchase contracts, hedging contracts, leases or other risk management instruments;
(u) to exercise and perform all or a part of its powers and functions through 1 or more wholly-owned or partly-owned corporations or other entities; and
(v) to do all things necessary, convenient or desirable to carry out the purposes of this act or the powers expressly granted or necessarily implied in this act.

SECTION 103G. Section 6 of said chapter 775 is hereby  amended by striking out subsections (b) and (c) and inserting in place thereof the following 3 subsections:-
(b) Neither the obligations of the corporation nor the obligations of any member or non-member cities and towns or districts, authorities or departments of the commonwealth or political subdivisions under the capacity and output contracts shall be included in computing the borrowing capacities of the cities and towns or districts, authorities, departments of the commonwealth or political subdivisions.  Such obligations of cities and towns having municipal electric departments established under said chapter 164 or a special act shall be treated as expenses of operating their electric plants and shall constitute special obligations of the cities and towns, payable solely from the revenues and other moneys derived by the cities and towns from their electric departments or systems, the liability of these cities and towns from other funds being limited to obligations undertaken by them to pay for the energy used by them.
(c) A city or town shall be obligated to fix, revise and collect fees and charges for energy and other services, facilities and commodities furnished or supplied through its electric department or systems at least sufficient to provide revenues adequate to meet its obligations under any contracts with the corporation and to pay all other amounts payable from or constituting a charge and lien upon such revenues, including amounts sufficient to pay the principal of and interest on all bonds issued by the city or town for energy-related purposes.
(d) A city or town shall be obligated to fix, revise and collect fees and charges for energy and other services, facilities and commodities furnished or supplied through its electric department or system at least sufficient to provide revenues adequate to meet its obligations under any such output and capacity contract and to pay all other amounts payable from or constituting a charge and lien upon these revenues, including amounts sufficient to pay the principal of and interest on all bonds issued by the city or town for energy-related purposes.

SECTION 103H. Section 9 of said chapter 775 is hereby amended by striking out subsection (a) and inserting in place thereof the following subsection:-
(a) The corporation may, subject to the approval of the department, borrow money by the issue of its bonds for any of its corporate purposes.  Bonds may be issued under this section as mortgage bonds, as general obligations of the corporation or as a special obligation payable solely from particular funds.  Without limiting the generality of the foregoing, these bonds may be issued for project costs, prepayment of fuel, transmission or transportation of fuel, or the corporation’s share of project costs of energy facilities or long-term purchases of rights to use energy facilities, which may include interest before and during the carrying out of any project and for a reasonable period after that time, prepayments under contracts for the purchase of energy, or services related thereto, stranded investment costs, early termination costs of any energy project, decommissioning costs, reserves for debt service or other capital or current expenses that may be required by a trust agreement or resolution securing bonds, and all other expenses incidental to the determination of the feasibility of any project or to carrying out the project or to placing the project in operation.

SECTION 103I. Subsection (a) of section 10 of said chapter 775 is hereby amended by striking out the first 2 sentences and inserting in place thereof the following 2 sentences:- In the discretion of the corporation, but subject to approval by the department, any bonds issued under this act may be secured by a resolution of the board or by a trust agreement between the corporation and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the commonwealth, and this trust agreement shall be in a form and executed in a manner that may be determined by the corporation.  The trust agreement or resolution may pledge or assign, in whole or in part, the revenues and other moneys held or to be received by the corporation, including the revenues from any facilities already existing when the pledge or assignment is made, and any contract or other rights to receive the same, whether then existing or later coming into existence and whether then held or later acquired by the corporation, and the proceeds thereof.

SECTION 103J.
Subsection (b) of said section 10 of said chapter 775 is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:- The corporation is authorized to fix, revise, and collect fees and charges for energy and other services, facilities and commodities furnished or supplied by it, but no costs, losses or benefits of any such endeavor shall be allocated to any other endeavor unrelated to it.

SECTION 103K. The Massachusetts Turnpike Authority shall develop a plan, in consultation with the executive office of transportation, for the availability of alternative fuel at each fueling facility or service terminal on the Massachusetts Turnpike. The plan shall provide for availability of alternative fuel at such locations not later than January 1, 2014.  If the authority determines that such availability is not feasible for any reason, including the status of leases it has with its tenants on the Massachusetts Turnpike, it shall report those findings, together with the reasons therefore and the status of similar plans or projects of adjacent states, if any, to the house and senate committees on ways and means and the joint committee on transportation not later than January 31, 2009.

SECTION 103L.
(a) The commissioner of energy resources, in consultation with the secretary of administration and finance, the secretary of transportation, the general manager of the Massachusetts Bay Transportation Authority, a representative of the regional transit authorities, the secretary of economic affairs, the secretary of environmental affairs and the operation services division, shall develop a statewide master plan for the advancement of hybrid and alternative fuel vehicles, as defined in section 1 of chapter 90 of the General Laws, and related technology.
(b) Said plan shall encompass a 10-year period, beginning in 2010, and shall be divisible in increments of not less than 5 years. The plan shall take into account the geographic diversity of the commonwealth, its present and projected demographics, present and projected transportation needs and infrastructure, and current, emerging and foreseeable alternative fuel and vehicle technologies, and may establish goals for areas such as the purchase and use of hybrid and alternative fuel vehicles, as well as the production, import action or distribution of alternative fuels.
(c) Said plan shall identify strategies and corresponding methods of achieving its identified goals together with necessary administration and legislative actions. The plan shall be reported to the clerks of the senate and house of representatives not later than 18 months following the effective date of this act.
           
SECTION 103M. The operational services division, in consultation with the executive office of transportation, the secretary of administration and finance, the division of energy resources, the Massachusetts Bay Transportation Authority and regional transit authorities, shall study the feasibility of developing and implementing a system to facilitate the mass purchase of alternative fuel vehicles by the commonwealth and its political subdivisions. The study shall include, but shall not be limited to, the potential cost savings to be derived from such a system, the cost of the system administration, appropriate purchasers to participate in the system and the probability of utilization of the system by such purchasers.
The operational services division shall report the findings of the study, and its recommendations if any, together with drafts of legislation necessary to carry such recommendations into effect, by filing the same with the clerks of the senate and house of representatives not later then 1 year after the effective date of this act.

SECTION 103N.
  In the city of Brockton, or in the towns of West Bridgewater, East Bridgewater, Easton and Walpole, no energy facility, electric generating facility or power plant shall be located in an area which is less than 1 mile in linear distance from a playground, licensed day-care center, school, church, area of critical environmental concern, as determined by the secretary of environmental affairs pursuant to 301 CMR 12.00, or an area occupied by residential housing.  Said linear distance shall be measured from the outermost perimeter of such facility to the outermost point of the aforementioned zones; provided, however that any such facility in operation on January 1, 2007, shall not be subject to this act.

SECTION 103O.  Notwithstanding any general or special law to the contrary, no permit shall be issued by the commonwealth to a new liquefied natural gas plant which is to be located within 1 mile of a school, hospital or nursing home.  This section shall apply to all LNG import terminals constructed after January 1, 2007.

SECTION 103P. 
The department of public utilities, in consultation with the division of energy resources, shall hold a public hearing to examine the impacts on the competitive retail electricity marketplace through the existing electric utility default service adjustment mechanism.  This public hearing shall include an examination of all costs that are recovered from ratepayers through this charge and recommended changes to insure that appropriate price signals are sent to the marketplace in order for customers to make informed decisions about their energy consumption based on price. The department of public utilities shall hold the public hearing not later than May 1, 2008.  The department of public utilities shall file a report of its findings, including any legislative or regulatory recommendations, with the joint committee on telecommunications, utilities and energy and with the clerks of the senate and the house of representatives not later than June 1, 2008.

SECTION 103Q.  The division of energy resources shall conduct a study of the economic and environmental impacts on the renewable portfolio standard of requiring generators, as defined in subsection (a) of section 11J of chapter 25A of the General Laws, to commit their renewable energy generating sources to the ISO-NE, as defined in section 1 of chapter 164, control area as a capacity resource.  The division shall submit its findings, including proposed recommendations and regulations, if applicable, and proposed legislation, if any, to the house and senate committees on ways and means and the joint committee on telecommunications, utilities and energy not later than March 1, 2009.  If the division finds that such a requirement is positive with respect to economic and environmental impacts, it shall promulgate regulations implementing said requirement.

SECTION 103R.  The division of energy resources shall conduct a study of the economic and environmental impacts on the renewable portfolio standard of requiring that the renewable portfolio standard credit applicable to the eligible renewable energy, as determined under subsection (d) of section 11J of chapter 25A of the General Laws, shall be reduced by any net exports of energy or renewable energy made during the same period from the ISO-NE, as defined in section 1 of chapter 164, control area by: (i) the person seeking renewable portfolio credit for such renewable energy; (ii) any affiliate of such person; or (iii) any other person under contract with such person to export energy from the ISO-NE control area and deliver such energy directly or indirectly to such person.  The division shall submit its findings, including proposed recommendations and regulations, if applicable, and proposed legislation, if any, to the house and senate committees on ways and means and the joint committee on telecommunications, utilities and energy not later than March 1, 2010.  If the division finds that such a requirement is positive with respect to economic and environmental impacts, it shall promulgate regulations implementing said requirement.

SECTION 103S.   Each electric distribution company under section 1D of chapter 164 of the General Laws shall file a compliance plan, complete with an effective date, indicating its compliance with the last paragraph of said section 1D of said chapter 164 within 3 months after the effective date of this act.

SECTION 103T.  The department of housing and community development, shall make recommendations regarding what supplemental state funds, if any, shall be expended for the federal Low Income Home Energy Assistance Program, pursuant to 42 U.S.C. Section 8621 et seq., for the purpose of assisting low-income elders, working families and other households with the purchase of heating oil, propane, natural gas and electricity and other primary or secondary heating sources; provided, however, that any recommended expenditures in addition to any federal funding shall be made in accordance with the state plan submitted by the department of housing and community development in accordance with the federal program. The recommendations shall include recommended funding levels and funding sources. The department of housing and community development shall submit its first report on its recommendations to the joint committee on telecommunications, utilities and energy not later than October 1, 2008, and shall file reports annually not later than October 1.

SECTION 103U. (a) The division of energy resources shall conduct a study of the fiscal impact, viability, statutory and regulatory barriers and long-term results of establishing and operating municipal-owned electric utilities. The study shall provide a general overview of the impact and effect of establishing and operating a municipal-owned utility with regard to municipalities, an investor-owned utility currently supplying electricity to municipalities, and affected consumers. In addition, the study shall make recommendations:  (i) to address any existing inequities or other barriers preventing the establishment of municipal-owned electric utilities in current statutes or regulations; and (ii) for a procedure for a municipality to divest its ownership of electric utility assets to a non-municipal electric utility. 

(b) There shall be a commission that shall advise the commissioner of the division of energy resources with respect to such study. The commission shall be comprised of the commissioner or a representative who shall serve as chair, and 8 other members: 4 representatives to be chosen by the executive director of the Massachusetts Municipal Association, 3 of whom shall be from municipalities that are interested in establishing a municipal electric utility; 1 representative from the office of the attorney general, to be chosen by the attorney general;  1 representative from the department of public utilities, to be chosen by the commissioner of the department; and 2 representatives to be appointed on a voluntary basis by the commissioner, 1 of whom shall be an executive from an investor-owned utility and the other of whom shall be an executive of an existing municipal electric utility. The division of energy resources shall submit the study to the house and senate chairs of the joint committee on telecommunications, utilities and energy and the chief executive officer of each municipality within 1 year of the effective date of this act.

SECTION 103V.  Regulations adopted pursuant to section 97A of chapter 13 of the General Laws shall take effect on or after January 1, 2010.

SECTION 104. 
Notwithstanding subsection (c) of section 19 of chapter 25 of the General Laws, for 3 years after the expiration of each electric or gas company efficiency plan or agreement in place as of January 1, 2008, the amount and percentage allocated to the low-income residential subclass for the electric or gas company shall not be reduced to less than the amount provided under law, guidelines and agreements in force as of January 1, 2008. 

SECTION 105. 
The first plans required under section 21 of chapter 25 of the General Laws shall be prepared and submitted to the energy efficiency advisory council on or before July 31, 2008.  The electric and natural gas distribution companies and municipal aggregators shall submit these plans, together with the energy efficiency advisory council’s approval or comments and a statement of any unresolved issues, to the department of public utilities on or before October 31, 2008.

SECTION 106. 
  Subsections (d) and (e) of section 11F of chapter 25A of the General Laws shall take effect on January 1, 2009.

SECTION 107. 
Subsection (a) of section 11F1/2 of chapter 25A of the General Laws, as inserted by Section 15, shall take effect on January 1, 2009.

SECTION 108. 
Subsection (m) of chapter 143 of the General Laws shall take effect 6 months after the effective date of this act.

SECTION 109. 
Section 4 shall take effect 1 year after the effective date of this act.

SECTION 110.
Section 6 shall take effect on July 1, 2008.

SECTION 111. 
Sections 38 and 39 shall be effective for tax years beginning on or after January 1, 2008 and before January 1, 2018.

SECTION 112. 
Section 62A shall take effect on June 30, 2012. 
           
SECTION 113.  Section 87 shall take effect on April 10, 2007.