[Senate, June 23, 2008 - Report of the committee of conference on the disagreeing votes of the two branches, with reference to the House amendments to the Senate Bill to generate renewable energy and efficiency now (Senate, No. 2468, printed as amended) (amended by the House by striking out the text and inserting in place thereof the text contained in House document numbered 4373.] |
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 4 paragraphs:-
When purchasing
new motor vehicles, the commonwealth shall purchase hybrid or alternative fuel
vehicles, as defined in section 1 of chapter 90, to the maximum extent feasible
and consistent with the ability of such vehicles to perform their intended
functions, 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 division of operational
services shall forward to the department of energy resources all requests for
motor vehicle acquisitions by agencies of the commonwealth. The department of
energy resources shall thereafter report to the division of operational
services regarding the availability of a hybrid or alternative fuel vehicle
that shall achieve the intended use designated by the requesting agency. The division of operational services, in
consultation with the departments of energy resources and environmental
protection, shall adopt a fuel efficiency standard for passenger vehicles owned
or operated by the commonwealth.
The division of
capital asset management and maintenance, in consultation with the department
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
operational services, jointly with the department of energy resources, and the
executive office of energy and environmental affairs 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 on or before July 1 each year detailing the
progress in meeting the requirements of this section. This report shall include the percentage of
fuel used for the alternative fuel vehicles owned and operated by the
commonwealth that qualifies as alternative fuel, as defined in section 1 of
chapter 90, and the amount and cost of non-alternative fuel foregone as a
consequence of the use of alternative fuel.
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:
(1) the state
agency shall utilize alternate technologies when the life-cycle cost analysis
conducted under subsection (b) shows that such systems are economically
feasible;
(2) 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;
(3) 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 department of energy resources in order to maximize
reliance on, and the benefits of, renewable energy research and investment
activities; and
(4) all higher
education construction projects shall, at a minimum incorporate the MA-CHPS
Green Schools Guidelines standards or an equivalent standard.
(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 and associated 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 increase or decrease at a
projected rate determined by the department of energy resources. 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 or at a rate determined by the department of energy resources.
(c) Notwithstanding
sections 11C and 11I 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. Said
sections 11C and 11I 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 department of energy resources a report
detailing the agency’s compliance with this section with respect to each such
facility.
(f) The
department 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 10 of the General Laws is hereby
amended by inserting after section 35HH the following section:-
Section 35II.
There shall be established and set up on the books of the commonwealth a
separate fund to be known as the RGGI Auction Trust Fund. The fund shall
consist of amounts credited to the fund in accordance with section 22 of
chapter 21A and expended exclusively for the purposes of said section 22 of
said chapter 21A. The fund shall be administered by the commissioner of
energy resources, subject to the approval of the secretary of energy and
environmental affairs. The fund shall be an expendable trust fund and
shall not be subject to appropriation or allotment. The commissioner
shall report monthly by source all amounts credited to the fund and all expenditures
by subsidiary made from the fund on the
SECTION
4.
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) There shall be within the office of the attorney general, an office of ratepayer advocacy. The attorney general, through the office of ratepayer advocacy, may intervene, appear and participate in administrative, regulatory, or judicial proceedings on behalf of any group of consumers in connection with any matter involving rates, charges, prices and tariffs of an electric company, gas company, generator, transmission company, telephone company and telegraph company doing business in the commonwealth and subject to the jurisdiction of the department of public utilities or the department of telecommunications and cable. In addition, the attorney general may intervene, appear and participate in federal energy regulatory commission or other federal energy proceedings on behalf of ratepayers in the commonwealth.
The office of the
ratepayer advocacy shall be under the direction of an assistant attorney
general appointed under section 2. The
assistant attorney general shall devote his full time and attention to the
duties of the office.
For the purpose of
such an intervention, appearance or participation, the attorney general may
expend such funds as may be appropriated. These expenditures shall not exceed
annually the amount assessed against such electric, gas, telephone and
telegraph company under section 3 of chapter 24A, notwithstanding 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 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 party in the proceeding and shall be paid by such party 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
party, recoverable through rates without further approval from the departments.
(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
5.
Chapter 13 of the General Laws is hereby
amended by inserting after section 97 the following section:-
Section 97A. The board of registration of home
inspectors, in consultation with the state board of building regulations and
standards, the executive office of energy and environmental affairs and the
energy efficiency advisory council, shall develop requirements and adopt
regulations to require documents to be provided to a buyer of a single-family
residential dwelling or a multiple-family residential dwelling with less than 5
dwelling units, or a condominium unit at the time of closing, outlining the
procedures and benefits of a home energy audit; provided however, that no
additional fees shall be imposed or collected in connection with the provision
of such documents.
SECTION
6.
Section 7 of
chapter 21A of the General Laws, as so appearing, is hereby amended by striking
out, in the first sentence, the word “division” and inserting in place thereof
the following word:- department.
SECTION
7.
Said chapter 21A is hereby further amended by
adding the following 2 sections:-
Section 21. The secretary, in conjunction with the
secretary of administration and finance, shall design and implement a 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 via basic service under section 1B of chapter 164. Any such competitive bid received shall
include payment options with rates that remain uniform for a minimum period of
1 year. In lieu of designing and implementing a competitive bidding process as
required by this section, the secretary may become a member of programs
organized and administered by the Health and Educational Facilities Authority or
its subsidiary organization for the purpose of such competitive group
purchasing of electricity.
Section 22.
(a) As used in this section, the following words shall have the following
meanings, unless the context clearly requires otherwise:
“Allowance”, an
authorization to emit a fixed amount of carbon dioxide.
“Cap and trade
program”, a policy approach for controlling emissions from a group of emitting
sources, such as electric generating stations, at a total cost that is expected
to be lower than if sources were regulated individually by setting an overall
cap or maximum amount of emissions from all regulated sources per compliance period
that will achieve the desired environmental effects; provided, however, that a
certain number of authorizations to emit in the form of emissions allowances
shall be created, issued and made available to persons, companies,
organizations or other entities through a sale by auction or direct allocation;
and provided further that the total number of allowances made available in a
compliance period shall not exceed the cap.
“Department”,
department of environmental protection.
“RGGI” or
“Regional Greenhouse Gas Initiative”, the Memorandum of Understanding dated
(b) The
department, in consultation with the department of energy resources, shall
adopt rules and regulations establishing a carbon dioxide cap and trade program
to limit and reduce the total carbon dioxide emissions released by electric
generating stations that generate electric power. The rules and
regulations shall comply with RGGI and permit the holders of carbon dioxide
allowances to trade them in a regional market to be established through the
RGGI.
(c)(1) The
department shall provide, by regulation that all allowances issued under the
program shall be offered for sale by auction. The proceeds recovered from
the allowance auctions shall be deposited in the RGGI Auction Trust Fund
established in section 35II of chapter 10. The proceeds shall be used
without further appropriation for the following purposes only and shall be in a
proportion to be determined by the department of energy resources with the
approval of the secretary:
(i) to reimburse a municipality in which the property tax
receipts, including, for the purposes of this clause, payments in lieu of
taxes, are reduced as a result of the mandates of RGGI or the regulation of
carbon dioxide emissions from electric generating stations; provided, however,
that the amount of the payment shall be the difference between the amount of
the tax receipts in the current tax year and the amount of the tax receipts in
the year before implementation of RGGI; provided further, that no reimbursement
shall be made if, in a tax year, the aggregate amount paid to a municipality by
the owner of an electric generating station including, but not limited to,
payments in lieu of taxes and property taxes, exceeds the aggregate amount paid
to that municipality by that owner in the year before implementation of RGGI;
and provided further, that payments from the fund shall be prioritized so that
the first payments from the fund shall be made to municipalities under this
clause;
(ii) to fund the green communities program
established in section 10 of chapter 25A;
(iii) to provide
zero interest loans to municipalities, which are not green communities under
section 10 of chapter 25A for energy efficiency projects;
(iv) to promote
energy efficiency, conservation and demand response; and
(v) to reimburse
the commonwealth for costs associated with the administration of the cap and
trade program.
(2) Notwithstanding this section, the department
may set aside up to 1 per cent of the commonwealth’s annual allocation of
allowances to support the voluntary green power market which enables
electricity consumers to support the development of renewable resources.
(d) The department
of energy resources shall adopt regulations governing the auction of allowances.
The department of energy resources may hire an independent contractor
determined by the office to be qualified to conduct the auction in a manner
that ensures the efficiency of the auction, or may provide for participation in
a regional auction.
(e) The
responsibilities created by establishing a carbon dioxide cap and trade program
shall be in addition to any other responsibilities imposed by any other general
or special law or rule or regulation and shall not diminish or reduce any power
or authority of the department, including the authority to adopt standards and
regulations necessary for the commonwealth to join and fully participate in a
multistate program at any stage in the development and implementation of such a
program intended to control emissions of carbon dioxide or other substances
that are determined by the department to be damaging or altering the climate.
(f)
Notwithstanding any general or special law or rule or regulation to the
contrary, the state comptroller shall grant a permanent waiver or exemption
from any applicable charges or assessments made against the proceeds from the
auction of allowances under this section by the office of the comptroller under
its authority under sections 5D of chapter 29.
(g) Notwithstanding
any general or special law or regulation to the contrary, any information
required by the department of energy resources or the department of any party
participating in the cap and trade program, with the exception of any emission,
offset and allowance tracking information required for compliance with the cap
and trade program, shall be maintained for the sole and confidential use of the
commonwealth, the department, the department of energy resources and their
agents This information shall not be
deemed to be a public record as defined in clause Twenty-sixth of section 7 of
chapter 4 and shall not be subject to demand for production under section 10 of
chapter 66. Aggregates of such
information may be prepared and such aggregates shall be public records. All information collected under this section
may be shared with other states which afford such information similar
protection from public disclosure.
SECTION 8. Clause (ii) of subsection (a) of section 3D of chapter 23A of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by striking out, in line 50, the word “space.” and inserting in place thereof the following words:- space;
(K) the area has
been designated by the municipality as an area with potential for the
development of a Class I renewable energy generating sources, as defined by
section 11F of chapter 25A.
SECTION
9.
Chapter 25 of the General Laws is hereby
amended by inserting after section 5D the following section:-
Section 5E. The
department may, from time to time, audit all companies subject to its
jurisdiction, except steam distribution companies. Such audits may include, but shall not be limited
to, review of the following documents: (a) 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; (b) all documents
concerning reconciling mechanisms related to rates, prices, charges, or costs
and savings related to a merger, acquisition or consolidation within 3 years
after the merger, acquisition or consolidation; and (c) documents concerning service
quality measure statistics and service quality performance at least every 3
years or whenever service quality penalties equal to or exceed 50 percent of
the maximum.
Upon written
complaint of the attorney general requesting an independent audit of a 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
10.
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.
Each company shall
pay the amount assessed against it within 30 days after receipt of the notice
of assessment from the department. Such assessments collected by the department
shall be credited to the General Fund. Any funds unexpended in any fiscal year
for the purposes for which such assessments were made shall be credited against
the assessment to be made in the following fiscal year and the assessment in
the following fiscal year shall be reduced by any such unexpended amount.
SECTION
11.
Said chapter 25 is hereby further amended by
striking out sections 19 and 20, as appearing in the 2006 Official Edition, and
inserting in place thereof the following 4 sections:-
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, without further appropriation, by: (1) amounts generated by the
distribution companies and municipal aggregators under the Forward Capacity
Market program administered by
(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 combined heat and power and 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, minimizing administrative costs to the fullest extent
practicable 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 20. (a) The department shall require a mandatory
charge of 0.5 mill per kilowatt-hour for all electricity consumers, except
those served by a municipal lighting plant which does not supply generation
service outside its own service territory or does not open its service
territory to competition at the retail level, to support the development and
promotion of renewable energy projects. All revenues generated by the mandatory charge shall be deposited into
the Massachusetts Renewable Energy Trust Fund, established under section 4E of
chapter 40J.
(b) Notwithstanding any general or special law to the
contrary: (1) 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 section; provided, however, that such an
election by a municipal lighting plant shall be irrevocable and such a
municipal lighting plant 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 subsection (a);
and (2) in administering the Massachusetts Renewable Energy Trust Fund, the
Massachusetts Technology Park Corporation, doing business as the Massachusetts
Technology Collaborative, or the governing board, as applicable, 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 first sentence of
subsection (a) or clause (1); or (B) 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: (i) 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 (ii)
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 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, on or before April 30, 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 on or before April
30. 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 on or
before 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) If 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 levies the fine. The fine shall not impact
ratepayers. The department 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 11 members, including 1 person representing each of the
following: (1) residential consumers, (2) the low-income weatherization
and fuel assistance program network, (3) the environmental community, (4)
businesses, including large C&I end-users, (5) the manufacturing industry,
(6) energy efficiency experts, (7) organized labor, (8) the department of
environmental protection, (9) the attorney general, (10) the executive office
of housing and economic development, and (11) the department 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 member who is a representative of energy efficiency
experts shall not have a contractual relationship with an electric or natural
gas distribution company doing business in the commonwealth or any affiliate of
such company, or any municipal aggregator. There shall be 1 non-voting,
ex-officio member from each of the electric and natural gas distribution
companies, 1 from each of the approved municipal aggregators, 1 from the
heating oil industry and 1 from 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 more than 1 fuel resource or to coordinate programs targeted at
saving more than one fuel resource. 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 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.
Chapter 25A of the General Laws, as so
appearing, is hereby amended by striking out sections 1 to 3, inclusive, as
amended by section 28 of chapter 19 of the acts of 2007, and inserting in place
thereof the following 3 sections:-
Section 1. There shall be within the executive office of
energy and environmental affairs a department called the department of energy
resources, under the supervision of a commissioner of energy resources,
hereinafter the commissioner. The duties
given to the commissioner in this chapter and in any other general or special
law shall be exercised and discharged subject to the direction, control and
supervision of the secretary of energy and environmental affairs. The
commissioner shall be appointed by the secretary of energy and environmental
affairs, with the approval of the governor, and may, with like approval, be
removed. The commissioner shall be a person of skill and experience in the
field of energy regulation or policy and shall serve a term coterminous with
that of the governor. The position of commissioner shall be classified in
accordance with section 45 of chapter 30 and the salary shall be determined in
accordance with section 46C of said chapter 30. The commissioner shall devote
full time during business hours to the duties of the office. In the case of an absence or vacancy in the
office of the commissioner, or in the case of disability as determined by the
secretary, the secretary may designate an acting commissioner to serve as
commissioner until the vacancy is filled or the absence or disability ceases.
The acting commissioner shall have all the powers and duties of the
commissioner and shall have similar qualifications as the commissioner.
Section 2. The
commissioner shall be the executive and administrative head of the department
of energy resources and shall be responsible for administering and enforcing
the provisions of law relative to the division and to each administrative unit
thereof.
There shall be
within the department 3 divisions: (i) a division of
energy efficiency, which shall work with the department of public utilities
regarding energy efficiency programs; (ii) a division of renewable and
alternative energy development, which shall oversee and coordinate activities
that seek to maximize the installation of renewable and alternative energy
generating sources that will provide benefits to ratepayers, advance the
production and use of biofuels and other alternative
fuels as the division may define by regulation, and administer the renewable
portfolio standard and the alternative portfolio standard; and (iii) a division
of green communities, which shall serve as the principal point of contact for
municipalities and other governmental bodies concerning all matters under the
jurisdiction of the department of energy resources. Each division shall be headed by a director
who shall be appointed by the commissioner and who shall be a person of skill
and experience in the field of energy efficiency, renewable energy or
alternative energy, and energy regulation or policy, respectively. The directors shall be the executive and
administrative heads of their respective divisions and shall be responsible for
administering and enforcing the law relative to such division and to each
administrative unit thereof under the supervision, direction and control of the
commissioner. The directors shall serve
at the pleasure of the commissioner, shall receive such salary as may be
determined by law and shall devote full time during business hours to the
duties of the office. In the case of an
absence or vacancy in the office of the director, or in the case of disability
as determined by the commissioner, the commissioner may designate an active
director to serve as director until the vacancy is filled or the absence or
disability ceases. The acting director
shall have all the powers and duties of the director and shall have similar
qualifications as the director.
The commissioner
may, from time to time, subject to appropriation, establish within the
department such administrative units as may be necessary for the efficient and
economical administration of the department and, when necessary for such
purpose, may abolish any such administrative unit, or may merge any 2 or more
of them, as the commissioner deems advisable. The commissioner shall prepare
and keep current a statement of the organization of the department, of the
assignment of its functions to its various administrative units, offices and
employees, and of the places at which and the methods whereby the public may
receive information or make requests. Such statement shall be known as the
department’s description of organization. A current copy of the description of
organization shall be kept on file in the office of the secretary of state and
in the office of the secretary of administration.
Section 3. For the
purposes of this chapter the following words shall have the following
meanings:-
“Alternative
energy development”, shall include but not be limited to solar energy, wood,
alcohol, hydroelectric, biomass energy systems, renewable non-depletable and recyclable energy sources.
“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.
“Building
authority”, the
“Commissioner”,
the commissioner of energy resources.
“Department”, the
department of energy resources.
“Eligible”, able
to meet all requirements for offerors or bidders set
forth in section 11C or 11I and section 44D of chapter 149 and not barred 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.
“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: (a) 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; (b) determines appropriate energy conservation maintenance and
operating procedures; and (c) indicates the need, if any, for the acquisition
and installation of energy conservation measures or alternative energy
property.
“Energy
conservation”, shall include but 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, and shall include 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; 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; on-site electrical generation equipment
using new renewable generating sources as defined in section 11F; 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 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.
“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.
“Local governmental body”, a city, town, district,
regional school district or county, or an agency or authority thereof, including
a housing authority, board, commission, department or instrumentality of a
city, town district, regional school district or county, and any other agency
which is not a state agency or building authority; or a combination of 2 or
more such cities, towns, districts, regional school districts or counties, or
agencies or authorities thereof.
“Marine or
hydrokinetic energy”, electrical energy from: (a) waves, tides and currents in
oceans, estuaries and tidal areas; (b) free-flowing water in rivers, lakes and
streams; (c) free-flowing water in man-made channels; or (d) differentials in
ocean temperature, called ocean thermal energy conversion.
“Minor
informalities”, minor deviations, insignificant mistakes and matters of form
rather than substance of the proposal or contract document which may be waived
or corrected without prejudice to other offerors,
potential offerors or the public agency.
“Non-renewable
energy supply and resource development”, shall include but 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.
“Person”, any
natural person, business, partnership, corporation, union, committee, club, or
other organization, entity or group of individuals.
“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.
“Qualified provider”, responsible
and eligible person able to meet all requirements set forth in section 11C or
11I, and not barred from bidding under section 44C of chapter 149 or any other
applicable law and experienced in the design, implementation and installation
of energy savings measures.
“Reseller”, any
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.
“Responsible”,
demonstrably possessing the skill, ability and integrity necessary to
faithfully perform the work required by a particular contract, based upon a
determination of competent workmanship and financial soundness in accordance
with section 11C or 11I 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.
“State agency”, any agency, authority, board, bureau,
commission, committee, council, department, division, institution, officer or
other agency of the commonwealth, including quasi-public agencies.
“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
13.
Section 5 of said
chapter 25A, as appearing in the 2006 Official Edition, is hereby amended by
striking out the first sentence and inserting in place thereof the following
sentence:- The commissioner shall file an annual report with the clerks of the
senate and the house of representatives, the joint committee on telecommunications,
utilities and energy and the senate and house committees on ways and means: (a)
listing the number of employees of the department of energy resources, the
salaries and titles of each employee, the source of funding for the salaries of
said employees and the projected date when federal funds for such positions are
expected to terminate; (b) listing and describing grant programs of the
department funded by the federal government, including the amount of funding by
grant; (c) listing and describing other programs of the department, including
the amount and source of funding by program; and (d) describing the energy
audit, energy conservation and alternative energy bond programs by categories
of projects, prospective grantees under each category, if known, and amounts to
be spent by category and grantee.
SECTION
14.
Section 6 of said
chapter 25A, as so appearing, is hereby amended by striking out, in line 1, the
words “division of energy resources” and inserting in place thereof the
following word:- department.
SECTION
15.
Said section 6 of said chapter 25A, as so
appearing, is hereby further amended by striking out, in line 38, the words
“telecommunications and energy” and inserting in place thereof the following
words:- public utilities.
SECTION
16.
Section 7 of said
chapter 25A, as so appearing, is hereby amended by striking out, in lines 1, in
lines 21 and 22, and in line 29, the words “division of energy resources” and
inserting in place thereof, in each instance, the following word:- department.
SECTION
17.
Said section 7 of said chapter 25A, as so
appearing, is hereby further amended by striking out, in lines 8, 22, 30, 32, 39, 49 and 50 the word
“division” each time it appears, and inserting in place thereof the following
word:- department.
SECTION
18.
Said section 7 of said chapter 25A, as so
appearing, is hereby further amended by striking out, in line 40, the words
“telecommunications and energy” and inserting in place thereof the following
words:- public utilities.
SECTION
19.
Section 8 of said
chapter 25A, as so appearing, is hereby amended by striking out, in line 12,
the word “division of energy resources” and inserting in place thereof the
following word:- department.
SECTION
20.
Section 9 of said
chapter 25A, as so appearing, is hereby amended by striking out, in line 2 the
words “of energy resources”.
SECTION
21.
Said section 9 of said chapter 25A, as so
appearing, is hereby amended by striking out, in lines 9 and 10, the word
“division of energy resources” and inserting in place thereof the following
word:- department.
SECTION
22.
Said chapter 25A is
hereby amended by striking out section 10, as so appearing, and inserting in
place thereof the following 2 sections:-
Section 10.
(a) The division of green communities
shall assist the commonwealth’s municipalities and other local governmental
bodies to: reduce energy consumption and costs, reduce pollution, facilitate
the development of renewable and alternative energy resources, and create local
jobs related to the building of renewable and alternative energy facilities and
the installation of energy-efficient equipment. The director of the division shall be responsible for the administration
and oversight of the green communities program and shall apply and disburse
monies and revenues as provided in this section.
(b) The division
shall establish a green communities program. The purpose of the program shall
be to provide technical and financial assistance, in the form of grants and
loans, to municipalities and other local governmental bodies that qualify as
green communities under this section. These loans and grants shall be used to finance all or a portion of the
costs of studying, designing, constructing and implementing energy efficiency
activities, including but not limited to, energy conservation measures and
projects; procurement of energy management services; installation of energy
management systems; adoption of demand side reduction initiatives; and the
adoption of energy efficiency policies. They shall also be used to finance the siting and construction of renewable and alternative energy projects on municipally-owned
land.
(c) To qualify as
a green community, a municipality or other local governmental body shall: (1)
file an application with the division in a form and manner to be prescribed by
the division; (2) provide for the as-of-right siting of renewable or alternative energy generating facilities, renewable or
alternative energy research and development facilities, or renewable or
alternative energy manufacturing facilities in designated locations; (3) adopt
an expedited application and permitting process under which these energy
facilities may be sited within the municipality and which shall not exceed 1
year from the date of initial application to the date of final approval;
(4) establish an energy use baseline inventory for municipal buildings,
vehicles and street and traffic lighting, and put in place a comprehensive
program designed to reduce this baseline by 20 per cent within 5 years of
initial participation in the program; (5) purchase only fuel-efficient vehicles
for municipal use whenever such vehicles are commercially available and
practicable; and (6) require all new residential construction over 3,000 square
feet and all new commercial and industrial real estate construction to minimize,
to the extent feasible, the life-cycle cost of the facility by utilizing energy
efficiency, water conservation and other renewable or alternative energy
technologies. The secretary
may waive these requirements based on a written finding that due to unusual
circumstances, a municipality cannot reasonably meet all of
the requirements and the municipality has committed to alternative
measures that advance the purposes of the green communities program as
effectively as adherence to the requirements.
(d) Funding for
the green communities program in any single fiscal year shall be available,
without the need for further appropriation, in a total amount of not more than
$10 million from: (1) monies generated
by all cap and trade pollution control programs, including, but not limited to,
the cap and trade program established under the NOx Allowance Trading Program and the carbon dioxide allowance trading mechanism
established under the Regional Greenhouse Gas Initiative, as defined in
subsection (a) of section 22 of chapter 164; (2) such amounts as may be
directed to municipalities or other governmental bodies under section 19 of
chapter 25; (3) amounts from alternative compliance payments established and
administered under 225 CMR 14.00 adopted under section 11F; and (4) other
funds as the governing board of the Massachusetts Renewable Energy Trust Fund
established under section 4E of chapter 40J, may provide.
(e) The division
shall adopt rules, regulations and guidelines for the administration and
enforcement of this section, including, but not limited to, establishing
applicant criteria, funding priority, application forms and procedures, and energy
efficiency product requirements. The
division shall also adopt regulations providing for a separate green
communities program for those communities served by municipal lighting plants
that have chosen to adopt the renewable energy charge under section 20 of
chapter 25.
(f) The division
shall annually, not later than April 1, submit a report to the clerks of the
senate and the house of representatives, the joint committee on
telecommunications, utilities and energy, the joint committee on state administration
and regulatory oversight, and the senate and house committees on ways and means
detailing the expenditures and results relative to the green communities
program.
Section 10A. The division shall design and implement a
competitive bidding procedure for the procurement of electric generation from
renewable and alternative generating facilities on behalf of municipalities
certified as green communities under section 10. Any competitive bids received shall include
payment options with rates that remain uniform for a minimum of 5 years. In
lieu of designing and implementing a competitive bidding process as required by
this section, the director may become a member of programs organized and
administered by the Health and Educational Facilities Authority or its
subsidiary organization for the purpose of such competitive group purchasing of
electricity.
SECTION
23.
Said chapter 25A is hereby further amended
striking out section 11C, as so appearing, and inserting in place thereof the
following section:-
Section 11C.
(a) A state agency or building authority
may, in the manner provided by this section, contract for the procurement of
energy management services. Such contracts may include terms of not more than 20
years. The state agency or building authority shall solicit competitive sealed
proposals through a request for proposals. At least 1 week prior to soliciting
proposals for a contract under this section, the agency or authority shall
notify the commissioner in writing, in such form and including such information
as the commissioner shall prescribe by regulation, of the intent to solicit proposals. Such
notification shall, at a minimum, include a complete copy of the request for
proposals. An acknowledgment of receipt, in such form and including such
information as the commissioner shall prescribe by regulation, shall be issued
to the state agency or building authority 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, except a quasi-public agency,
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 the division has given prior written
approval, and no contract for energy management services shall be valid unless
approved and signed by that commissioner. A quasi-public agency may develop a
request for proposal and enter into a contract for energy management services
independently. The commissioner of
capital asset management and maintenance may delegate to state agencies and
building authorities the authority to enter into such contracts with an
estimated construction cost of less than $1 million. The delegation shall be in writing from the
commissioner to the using agency or building authority.
The request for
proposals published by a state agency or building authority shall include: (1)
the time and date for receipt of proposals and the address of the office to
which the proposals shall be delivered; (2) 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 (3) proposed
contract terms and conditions and an identification of such terms and
conditions which shall be deemed mandatory and non-negotiable. The request for
proposals may incorporate documents by reference, provided that the request for
proposals specifies where prospective offerors may
obtain the documents. The state agency or building authority 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 44E through 44H, inclusive, of chapter 149 shall not apply to contracts
procured under this section. Section 44D of chapter 149 shall apply as
appropriate to proposals submitted for contracts under this section, and every
such proposal shall be accompanied by: (1) a copy of a certificate of
eligibility issued by the commissioner of the division of capital asset
management and maintenance; and (2) 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 that division. If the state agency or building authority
determines that any offeror is not responsible or
eligible, the agency or authority shall reject the offeror,
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.
(b) A local
governmental body may, in the manner provided in this subsection, contract for
the procurement of energy management services. Unless no other manner of description suffices, and the local
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 local
governmental body's authority to reject, in whole or in part, any and all proposals,
as provided in this section, a local 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
local governmental body or fair competition. The local governmental body shall
waive minor informalities or allow the offeror to
correct them. If a mistake and the
intended meaning of the proposal are clearly evident on the face of the
proposal document, the local governmental body shall correct the mistake to
reflect the intended meaning 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 meaning is not similarly evident.
The local
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 not be
limited to, all standards by which the local governmental body shall evaluate
responsiveness, responsibility, qualifications of the offeror,
technical merit and cost to the local governmental body. The request for proposals shall specify the
method for comparing proposals to determine the proposal offering the lowest
overall cost to the local governmental body, taking into consideration
comprehensiveness of services, energy or water cost savings, costs to be paid
by the local governmental body, and revenues to be paid to the local
governmental body. If the local 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 revisions, if needed, to each proposal which should be obtained
by negotiation before the contract shall be awarded to the offeror of the proposal. The local 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.
(c) The state agency, building authority or local governmental body may cancel a request for proposals or may reject in whole or in part any and
all proposals when the state agency, building authority or local governmental
body determines that cancellation or rejection serves the best interests of the
state agency, building authority or local governmental body. The state agency,
building authority or local governmental body shall state in writing the reason
for a cancellation or rejection. The
state agency, building authority or local governmental body shall promptly
publish in the central register notice of the offeror awarded the contract. The state agency,
building authority or local governmental body shall, within 30 days, file a
copy of the contract with the commissioner.
The commissioner,
in consultation with the commissioner of capital asset management and maintenance,
shall adopt regulations for the procurement of energy management services under
this section for local government bodies. The commissioner of capital asset management and maintenance shall adopt
regulations for services to be procured for state agencies and building
authorities, and shall adopt regulations, in consultation with the director of
housing and community development, for the operations of housing authorities.
Such regulations may limit the scope of services procured and the duration of
contracts, and shall include any requirements that the commissioner or the 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
commissioner or the commissioner of capital asset management and maintenance
may deem necessary to monitor the costs and benefits of contracts for energy
management services.
(d) The commissioner
shall enforce the requirements of this section and regulations adopted
hereunder as they relate to local governmental bodies and shall have all the
necessary powers to require compliance. The commissioner of capital asset
management and maintenance shall enforce all such regulations as they relate to
state agencies and building authorities, except quasi-public agencies. An order
of the commissioner 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
SECTION
24.
Section 11D of said
chapter 25A, as so appearing, is hereby amended by striking out, in lines 25,
39, 44 and 45, 52, 56, 60 and 62, the word “division” and inserting in place
thereof, in each instance, the following words:- department.
SECTION
25.
Said section 11D of said chapter 25A, as so
appearing, is hereby further amended by striking out, in lines 30, 39 and 47,
the words “telecommunications and energy” and inserting in place thereof the
following words:- public utilities.
SECTION
26.
Said section 11D of said chapter 25A, as so
appearing, is hereby further amended by inserting after the word “department”,
in lines 34 and 51, the following words:- of public utilities.
SECTION
27.
Said section 11D of said chapter 25A, as so
appearing is hereby further amended by striking out, in line 56, the words
“government regulations”, and inserting in place thereof the following words:-
telecommunications, utilities and energy.
SECTION
28.
Section 11E of said
chapter 25A, as so appearing, is hereby amended by striking out, in line 1, the
words “division of energy resources” and inserting in place thereof the
following word:- department.
SECTION
29.
Said section 11E of said chapter 25A, as so
appearing, is hereby further amended by striking out, in lines 3 and 4, and in
lines 7, 9, 13, 16, 20, 23 and 45, the word “division” and inserting in place
thereof, in each instance, the following word:- department.
SECTION
30.
Said section 11E of said chapter 25A, as so
appearing, is hereby further amended by striking out, in lines 7, 10 and 43,
the words “telecommunications and energy” and inserting in place thereof, in each
instance, the following words:- public utilities.
SECTION
31.
Said section 11E of said chapter 25A, as so
appearing, is hereby further amended by striking out, in line 46, the words
“committees on government regulations and energy, respectively,” and inserting
in place thereof the following words:- committee on telecommunications,
utilities and energy.
SECTION
32.
Said chapter 25A is
hereby further amended by striking out section 11F, as so appearing, and
inserting in place thereof the following 2 sections:-
Section 11F.
(a) The department shall establish a renewable energy portfolio standard for
all retail electricity suppliers selling electricity to end-use customers in
the commonwealth. By
(b) For the
purposes of this subsection, a renewable energy generating source is one which
generates electricity using any of the following: (1) solar photovoltaic or
solar thermal electric energy; (2) wind energy; (3) ocean thermal, wave or
tidal energy; (4) fuel cells utilizing renewable fuels; (5) landfill gas; (6)
waste-to-energy which is a component of conventional municipal solid waste
plant technology in commercial use; (7) naturally flowing water and
hydroelectric; (8) low emission advanced biomass power conversion technologies
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 (9) 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 (6) and (7). The
department 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
(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 subsection,
a Class I renewable energy generating source is one that began commercial
operation after
[The following subsection was changed
via an errata sheet received from the committee of conference prior to
acceptance of the report.]
(d) Every
retail electric supplier providing service under contracts executed or extended
on or after
(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 department; provided, however, that the department shall specify that a
certain percentage of these requirements shall 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 department 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 department 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 department 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 department for Class I and Class II renewable energy generating
sources. The department shall establish and maintain regulations
outlining procedures by which each retail supplier shall annually submit for
the department’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
(h) The department
shall adopt 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 department; provided, however, that the department
shall set on-site generation alternative compliance payment rates at levels
that shall 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.
Section 11F1/2. (a) The
department 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
(b) The department, in consultation
with the department of environmental protection, shall set: (1) emission
performance standards, including standards for carbon dioxide emissions,
permanent sequestration definitions and standards, and fuel conversion
efficiency standards for all technologies included in this section such that in
the case of gasification, the total overall fuel conversion efficiency from
feedstock to final combustible fuel shall not be less than 70 per cent,
consistent with the commonwealth’s environmental goals, including, but not
limited to, the reduction of greenhouse gas emissions; and (2) a net carbon
dioxide emissions rate not to exceed the average emissions rate of existing
natural gas plants in the commonwealth, which shall include all emissions
related to combustion, gasification, fuel processing and sequestration, whether
or not such activities occur at the alternative generating source or at another
location, and in the case of combined heat and power shall also include thermal
delivery. At least once every 2 years the department shall review and
update all standards for new alternative energy generating sources to
strengthen them, as appropriate, as technology improvements occur.
(c) The department shall adopt
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 department. Such regulations shall outline procedures
by which each retail supplier shall annually submit for the department’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.
SECTION
33.
Section 11G of said
chapter 25A, as so appearing, is hereby amended by striking out, in lines 1, 3
and 11, the word “division” and inserting in place thereof, in each instance,
the following word:- department.
SECTION
34.
Said section 11G of said chapter 25A, as so
appearing, is hereby further amended by inserting after the word “department”,
in lines 13 and 14, the following words:- of public utilities.
SECTION
35.
Said section 11G of said chapter 25A, as so
appearing, is hereby further amended by striking out the last 2 sentences and
inserting in place thereof the following sentence:- The department shall adopt
rules and regulations necessary to implement this section.
SECTION
36.
Section 11H of said
chapter 25A, as so appearing, is hereby amended by striking out, in lines 1, 6,
12 and 31, the word “division” and inserting in place thereof, in each
instance, the following word:- department.
SECTION
37.
Said chapter 25A is hereby
amended by striking out section 11I and inserting in place thereof the
following section:-
Section 11I. (a) A state agency, local governmental body or
building authority 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, body or authority from proceeding under section 11C.
(b)
An agency, local governmental body or building authority may enter into an
energy management services contract in order to achieve energy savings at
facilities in accordance with this section. All energy savings measures under the contract shall comply with current
local, state and federal construction and environmental codes and regulations.
(c)
Before entering into an energy management services contract, a state agency,
local governmental body or building authority 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 an energy management services contract, an
agency, body or authority body shall notify the commissioner in writing, in a
form and including information as the commissioner of capital asset management and
maintenance shall prescribe by regulation, of the entity’s intent to solicit
qualifications. The notification, at a
minimum, shall include a copy of the request for qualifications. An acknowledgment of receipt, in a form and
including information as the commissioner of capital asset management and
maintenance shall prescribe by regulation, shall be issued by the commissioner
to the agency, body or authority upon compliance with the requirements of this
subsection.
The
request for qualifications published by a state agency, local governmental body
or building authority shall include the following: (1) the name and address of
the agency, body or authority; (2) The name, address, title and phone number of
a contact person; (3) the date, time and place where qualifications shall be
received; (4) 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; (5) the
evaluation criteria for assessing the qualifications; (6) a statement that the
agency, body or authority may cancel the request for qualifications, or may
reject in whole or in part any and all energy savings measures, when it
determines that cancellation or rejection serves the best interests of the
public; and (7) any other stipulations and clarifications the agency, body or
authority may require, which shall be clearly identified in the request for
qualifications.
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 44E to 44H, inclusive, of
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 (1) a copy of a
certificate of eligibility issued by the commissioner of capital asset
management and maintenance, and (2) by an update statement.
The state agency, local
governmental body or building authority shall evaluate the qualified providers
to determine which best meets the needs of the public agency by reviewing the
following:
(1) references of other energy
savings contracts performed by the qualified providers;
(2) the certificate of eligibility
and update statement provided by the qualified providers;
(3) quality of the products
proposed;
(4) methodology of determining
energy savings;
(5) general reputation and
performance capabilities of the qualified providers;
(6) substantial conformity with
the specifications and other conditions set forth in the request for
qualifications;
(7) time specified in the
qualifications for the performance of the contract; and
(8) any other factors the agency,
body, or authority 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 state agency, local
governmental body or building authority shall conduct discussions with, and may
require public presentations by, each person who submitted qualifications in
response to the request for qualifications regarding his qualifications,
approach to the project and ability to furnish the required services. The
agency, body or authority shall select in order of preference 3 such persons,
unless fewer persons respond, it considers to be the most highly qualified to
perform the required services. The agency, body or authority may request,
accept and consider proposals for the compensation to be paid under the
contract only during competitive negotiations conducted under subsection (e).
(d) The state agency, local
governmental body or building authority may cancel a request for
qualifications, or may reject in whole or in part any and all proposals when it
determines that cancellation or rejection serves its best interests. The
agency, body or authority shall state in writing the reason for a cancellation
or rejection.
(e) The state agency, local
governmental body or building authority shall negotiate a contract with the
most qualified person at compensation which it determines is fair, competitive
and reasonable. If the agency, body or authority is unable to negotiate a
satisfactory contract with the person considered to be the most qualified at a
price the agency, body or authority determines to be fair, competitive and
reasonable, negotiations with that person shall be formally terminated. The
agency, body or authority shall then undertake negotiations with the second
most qualified person. Failing accord with the second most qualified person, the
agency, body or authority shall terminate those negotiations and then undertake
negotiations with the third most qualified person. Should the agency, body or
authority be unable to negotiate a satisfactory contract with any of the
selected persons, it 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 agency, body or authority cancels
the request for qualifications.
(f) The decision of the state
agency, local governmental body or building authority regarding the selection
of a qualified provider shall be final and not subject to appeal except on the
grounds of fraud or collusion.
(g) The state agency, local
governmental body or building authority shall provide public notice of the
meeting at which it proposes to award the energy management services 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 agency, body or authority shall
promptly publish in the central register notice of the award and shall notify
the commissioner of the award and provide to him a copy of the energy
management services contract.
(h) The energy management services
contract shall include a written guarantee of the qualified provider that
either the amount of energy savings guaranteed shall be achieved or the
qualified provider shall reimburse the state agency, local governmental body or
building authority for the shortfall amount. Methods for measurement and verification of energy savings shall conform
to the most recent standards established by the Federal Energy Management
Program of the United States Department of Energy.
(i) The
commissioner, in consultation with the commissioner of capital asset management
and maintenance, shall adopt regulations for the procurement of energy
management services under this section for local government bodies. The commissioner shall enforce the
requirements of this section and regulations adopted as they relate to local
governmental bodies and shall have all the necessary powers to require
compliance. The commissioner of capital asset management and maintenance shall
adopt regulations for services to be procured for state agencies and building
authorities. The commissioner of capital
asset management and maintenance shall enforce the regulations as they relate
to state agencies and building authorities. An order of the commissioner under
this subsection shall be effective and may be enforced according to its terms,
and enforcement shall not be suspended or stayed by the entry of an appeal. The
superior court for
(j) 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.
(k) Unless no other manner of description
suffices, and the state agency, local governmental body or building authority
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.
(l) Before entering into a energy
management services contract, the state agency, local governmental body or
building authority shall require the qualified provider to file with the
agency, body or authority 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.
(m) An energy
management services contract may extend beyond the fiscal year in which it
became effective.
SECTION
38.
Section 12 of said
chapter 25A, as so appearing, is hereby amended by striking out, in line 15,
the word “energy” and inserting in place thereof the following words:- telecommunications, utilities and energy.
SECTION
39.
Said section 12 of said chapter 25A, as so
appearing, is hereby further amended by striking out, in line 21, the words “said
chairmen” and inserting in place thereof the following word:- committee.
SECTION
40.
Section 13 of said
chapter 25A, as so appearing, is hereby amended by striking out, in line 2 and
in lines 16 and 17, the word “division” and inserting in place thereof, in each
instance, the following word:- department.
SECTION
41.
Said section 13 of said chapter 25A, as so
appearing, is hereby further amended by striking out, in line 16, the words
“division of energy resources” and inserting in place thereof the following
word:- department.
SECTION
42.
Said section 13 of said chapter 25A, as so
appearing, is hereby further amended by striking out, in line 10, the word
“Division”, and inserting in place thereof the following word:- Department.
SECTION
43.
Said section 13 of said chapter 25A, as so
appearing, is hereby further amended by striking out, in line 15, the words
“subject to” and inserting in place thereof the following words:- without further.
SECTION
44.
Said chapter 25A is hereby further amended by
adding the following 2 sections:-
Section 14. (a) A state
agency, building authority or local governmental body may contract for energy
conservation projects 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, agency, authority or
body including, without limitation, the costs associated with equipment
purchase and installation of such equipment. Ancillary services provided at no
cost by utilities, such as auditing and design, shall not be considered part of
project cost.
(c) A state agency, building
authority or local governmental body may pay for such energy conservation
projects through additions to their monthly utility bills.
(d) 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 15. (a)
For solar photovoltaic projects with a total project cost that is less than
$100,000, a state agency, building authority or local governmental body 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 under 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, agency, authority or body
or other sources, including, without limitation, the costs associated with
equipment purchase and installation of such equipment. Ancillary services
provided at no cost, such as auditing and design, shall not be 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
45.
Section 2 of
chapter 25B of the General Laws, as appearing in the 2006 Official Edition, is
hereby amended by striking out, in line 11, the words “of the division”.
SECTION
46.
Section 1 of chapter
30B of the General Laws, as so appearing, is hereby amended by striking out, in
line 96, the words “telecommunications and energy” and inserting in place
thereof the following words:- public utilities.
SECTION
47.
Said section 1 of said chapter 30B of the
General Laws, as so appearing, is hereby further amended by striking out, in
line 97, the word “division” and inserting in place thereof the following
word:- department.
SECTION
48.
Section 3 of chapter 40J of the General
Laws, as so appearing, is hereby amended by inserting after the word
“designee”, in line 14, the following words:- , the secretary of energy and
environmental affairs or a designee,.
SECTION
49.
Said chapter 40J is
hereby amended by striking out section 4E, as so appearing, and inserting in
place thereof the following section:-
Section 4E. (a)(1) There is
hereby established and set up on the books of the corporation a separate trust
fund to be known as the Massachusetts Renewable Energy Trust Fund, hereinafter
referred to as the fund. The corporation shall hold the fund in an account or
accounts separate from other funds. There shall be credited to the fund all
amounts collected under section 20 of chapter 25 and any income derived from
the investment of amounts credited to the fund. All amounts credited to the fund shall be held in trust and used solely
for activities and expenditures consistent with the public purpose of the fund
as set forth in subsection (b) of this section, including the ordinary and
necessary expenses of administration and operation associated with the
fund. Unless otherwise specified, all
monies of the corporation, from whatever source derived, shall be paid to the
treasurer of the corporation. Said
monies shall be deposited in the first instance by the treasurer in national
banks, trust companies or banking companies in compliance with section 34 of
chapter 29. Funds in such accounts shall
be paid out on the warrant or other order of the treasurer of the corporation
or other person as the board may authorize to execute warrants.
(a)(2)
A governing board of not less than 9 individuals with an interest in matters
relating to the general purpose of the fund shall assist the corporation in
matters related to the fund and in the implementation of this section. The governing board shall include: the
commissioner of energy resources, who shall serve as chair; the secretary of
energy and environmental affairs or a designee, the secretary of housing and
economic development or a designee; the secretary of administration and finance
or a designee; 1 member of the board to be appointed by the chair of the board;
and 4 members to be appointed by the governor, who shall have knowledge and
experience in the following areas: electricity distribution, generation, supply
or power marketing; the concerns of commercial and industrial ratepayers; the
concerns of residential ratepayers, including low-income ratepayers; economics,
financial or investment consulting 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
alternative energy and energy efficiency issues. The members of the governing board shall be
deemed to be directors for the purposes of the fourth paragraph of section
3. Each appointed member of the
governing board shall serve for a term of 3 years and thereafter until such
member’s successor is appointed, and shall be eligible for reappointment. A person appointed to fill a vacancy on the
governing board shall be appointed in a like manner as the vacating member
shall have been appointed and shall be eligible for reappointment. A member of the governing board appointed by
the governor may be removed by the governor for cause. The members of the governing board shall
serve without compensation, but each member shall be entitled to reimbursement
for actual and necessary expenses incurred in the performance of official
duties. The governing board may meet as
often as the members shall decide; provided, however, that it shall meet at
least quarterly. The governing board
may, by majority vote, delegate any amount of its authority to an executive
committee comprised of members of the governing board, the board or the staff
of the corporation. Any such delegation
of authority may be revoked at any time by majority vote of the governing
board.
The
governing board shall adopt and submit to the board for approval detailed 5-year
strategic plans and annual operational plans for the application of the fund in
support of the design, implementation, evaluation and assessment of renewable
energy programs for the commonwealth that ensure that the fund shall be
employed to provide financial and non-financial resources to overcome barriers
facing renewable energy enterprises, institutions and projects in a prudent
manner consistent with the public purposes and interests set forth in this
section. The strategic plan shall include consideration of, and be consistent
with, plans, regulations and policies issued by the executive office of energy
and environmental affairs and, to the extent practicable, shall consist of at
least 4 components: (i) product and market
development to establish a foundation for growth and expansion of the
commonwealth’s renewable energy enterprises, institutions and projects,
including pilot and demonstration projects, production incentives, and other
activities designed to increase the use and affordability of renewable energy
in the commonwealth; (ii) training and public information to allow for the
development and dissemination of complete, objective and timely information,
analysis and policy recommendations related to the advancement of the public
purposes and interests of the renewable energy fund; (iii) investment to
support the growth and expansion of renewable energy enterprises, institutions
and projects; and (iv) research and development within the commonwealth and the
New England region related to renewable energy matters. The strategic plans and
annual operational plans shall also allocate a portion of the fund to the green
communities program to provide technical assistance to municipalities certified
as green communities under section 10 of chapter 25A. The strategic plans and
annual operational plans shall provide detailed budget and staffing levels and
specify the expenditure of such monies from the fund to each of these component
activities; provided, however, that monies so expended shall be used to develop
such renewable energy projects with priority given to projects, institutions,
and enterprises, first, within the commonwealth; next, to such activities
within New York and the New England region which serve the regional power grid;
and finally, all other such activities regardless of location. In developing
the strategic plans and yearly operational plans, the governing board shall consult
with and utilize the services of the department of public utilities and the
department of energy resources for such technical assistance as the governing
board deems necessary or appropriate to the effective discharge of the
governing board’s responsibilities and duties relative to the fund.
The 5-year
strategic plans and annual operational plans shall be deemed approved unless
they are rejected by a majority vote of the board within 60 days of the plan’s
referral to the board. If the board
rejects any submitted plan, the board shall, within 10 days of such action,
provide the governing board with a written explanation of the denial, including
any proposed recommendations to the submitted plan. Upon approval by the board of any plan, the
board shall delegate authority to the governing board to implement the
plan. The delegated authority shall
include, but not be limited to, the approval and implementation of budget and
staffing projections set forth in the plan, the hiring of an executive director
to administer the fund at the direction of the governing board, and the hiring
of outside consultants or other professionals to assist in the implementation
of the plan. The governing board shall
present any subsequent strategic plans and annual operational plans, or substantial
modifications of any approved plan, to the board for approval. The board shall not be liable for any claims
arising out of or related to the implementation of any approved plan, or any
other decisions of the governing board relating to administration of the fund.
(b)
The board shall draw upon monies in the fund for the public purpose of
generating the maximum economic and environmental benefits over time from
renewable energy to the ratepayers of the commonwealth through a series of
initiatives which exploit the advantages of renewable energy in a more
competitive energy marketplace by promoting the increased availability, use and
affordability of renewable energy, by making operational improvements to
existing renewable energy projects and facilities which, in the determination
of the governing board, would yield more significant results in the development
of renewable energy if said funds were made available for the creation of new
renewable energy facilities, and by fostering the formation, growth, expansion
and retention within the commonwealth of preeminent clusters of renewable
energy and related enterprises, institutions and projects, which serve the
citizens of the commonwealth consistent with a strategic plan or annual
operational plan.
(c)
Public interests to be advanced through the governing board’s actions shall
include, but not be limited to, the following: (i)
the development and increased use and affordability of renewable energy
resources in the commonwealth and the New England region; (ii) the protection
of the environment and the health of the citizens of the commonwealth through
the prevention, mitigation and alleviation of the adverse pollution effects
associated with certain electricity generation facilities; (iii) the maximization
of benefits to consumers of the commonwealth resulting from increased fuel and
supply diversity; (iv) the creation of additional employment opportunities in
the commonwealth through the development of renewable technologies; (v) the
stimulation of increased public and private sector investment in, and
competitive advantage for, renewable energy and related enterprises,
institutions and projects in the commonwealth and the New England region; and (vi)
the stimulation of entrepreneurial activities in these and related enterprises,
institutions and projects.
(d)
In furtherance of any strategic and operational plans, and other public
purposes and interests, the board may expend monies from the fund to make
grants, contracts, loans, equity investments, energy production credits, bill
credits, or rebates to customers; to provide financial or debt service
obligation assistance; or to take any other actions, in such forms, under such
terms and conditions and under such selection procedures as the board deems
appropriate and otherwise in a manner consistent with good business practices;
provided, however, that the board shall generally employ a preference for
competitive procurements; provided further, that the board shall endeavor to
leverage the full range of the resources, expertise and participation of other
state and federal agencies and instrumentalities in the design and
implementation of programs under this section; and provided further, that the
board has determined and incorporated into the minutes of its proceedings a
finding that such actions are calculated to advance the public purpose and
public interests set forth in this section, including, but not limited to, the
following: (i) the growth of the renewable
energy-provider industry; (ii) the use of renewable energy by electricity
customers in the commonwealth; (iii) public education and training regarding
renewable energy; (iv) product and market development; (v) pilot and
demonstration projects and other activities designed to increase the use and
affordability of renewable energy resources by and for consumers in the
commonwealth; (vi) the provision of financing in support of the development and
application of related technologies at all levels, including, but not limited
to, basic and applied research and commercialization activities; (vii) the
design and making of improvements to existing renewable energy projects and
facilities as defined herein which were in operation as of
(e)
Subject to the approval of the board, and not inconsistent with any strategic
or annual operational plans, investment activity of monies from the fund may
consist of the following: (i) an equity fund, to
provide risk capital to renewable energy enterprises, institutions and projects;
(ii) a debt fund, to provide loans to energy enterprises, institutions,
projects, intermediaries and end-users; and (iii) a market growth assistance
fund, to be used to attract private capital to the equity and debt funds. To
implement these investment activities, the corporation may retain, through a
bid process, public or private sector investment fund managers, who shall have
prior knowledge and experience in fund management and possess related skills in
renewable energy and related technologies development, to direct the investment
activity described in this section and to seek other fund co-sponsors to
contribute public and private capital from the commonwealth and other states;
provided, however, that such capital shall be appropriately segregated. The managers,
subject to the approval of the board, may retain necessary services and
consultants to carry out the purposes of the fund. The managers shall develop a
business plan to guide investment decisions, which shall be approved by the
board before any expenditures from the trust fund and which shall be consistent
with the provisions of the plan for the fund as adopted by the board.
(f)
For the purposes of expenditures from the fund, renewable energy technologies
eligible for assistance shall mean technologies eligible as Class I or Class II
renewable energy generating sources under section 11F of chapter 25A,
micro-combined heat and power units less than 60 kilowatts, solar hot water,
geothermal heating and cooling projects, biomass thermal and storage and
conversion technologies connected to qualifying generation projects; provided, however,
that the board may make grants from the fund, not to exceed a total of $4
million annually, in support of Massachusetts-based public and private
enterprises developing new technologies to significantly increase the
efficiency of the internal combustion engine. The board shall make grants,
loans or other support from the fund, not to exceed $3 million annually for
hydroelectric facilities, other than pumped storage facilities in the
commonwealth, constructed before
(g)
The use by the corporation and governing board of monies to implement this
section shall be deemed to be an essential governmental function.
Notwithstanding any general or special law to the contrary, clause (a) of
section 4A shall apply to expenditures made from the fund; provided, however,
that no such expenditure shall be deemed to involve a capital facility project;
provided further, that no lease or license executed in furtherance of the
public purpose and interests of the fund shall exceed 30 years in duration, and
the duration and terms shall be developed in a manner consistent with good
business practices; and provided further, that the corporation or governing board
shall take no action which contravenes the commonwealth’s reversionary interest
in any of its real property. The corporation, any purchasing cooperative
established thereby and all members of any such purchasing cooperative may
participate in any energy-related purchasing, aggregating or similar program
established and operated by the Health and Educational Facilities Authority and
such participation shall be deemed to be in furtherance of an essential
governmental function.
(h) Clause
(k) of section 4 shall not apply to disbursements from the trust fund.
(j) The books and records of the
corporation and governing board relative to expenditures and investments of
monies from the fund shall be subject to a biennial audit by the auditor of the
commonwealth.
(k)
Not later than August 15th of each year, the board, in conjunction with the
governing board, shall annually submit to the governor, the joint committee on
telecommunications, utilities and energy, and the senate and house committees
on ways and means a report detailing the expenditure and investment of monies
from the fund over the previous fiscal year, the ability of the fund to meet
the requirements this section, and any recommendations for improving the
ability of the governing board, the board, the corporation and the fund to meet
such requirements.
(l)
Notwithstanding any general or special law to the contrary, including without
limitation any laws related to the procurement of electricity, the board shall,
upon the written request of the governor, transfer moneys in the fund, in an
amount not exceeding $17 million in the aggregate, to the commonwealth for
deposit in the General Fund. As a condition subsequent to any such transfer,
the commonwealth, acting by and through the department of energy resources or a
successor agency, shall enter into an agreement with the corporation under
which the commonwealth, at the direction of the corporation, shall enter into
contracts, for terms not to exceed 20 years, with owners of facilities that
generate electricity using renewable energy technologies, wholesale power
marketers or other market intermediaries selling such electricity, for the
purchase by the commonwealth, for its own use or for the use of any municipal
electric department, public instrumentality or other governmental or
nongovernmental entity in the commonwealth, of electricity produced by
renewable energy technologies. The corporation shall determine the particular
types of technologies which shall be the subject of any such contract based on
such criteria as it shall deem advisable, including without limitation retail
consumer choices of such renewable energy technologies. The aggregate dollar
amount of the green power premium associated with electricity purchases to be
made by the commonwealth for its own use under such contracts shall have a
present value, determined according to such discount rate as shall be mutually
agreeable to the corporation and the commonwealth, of such amount as shall be
transferred under the first sentence of this paragraph. The green power premium
shall be determined by subtracting from the total amount of the purchase price
the undifferentiated commodity price for electricity under then-current
commonwealth contracts. The maximum payment in any 1 fiscal year under all such
contracts shall not exceed $5 million. The commonwealth shall be indemnified
under such contracts by the owners or power marketers on such terms as the
corporation shall deem commercially reasonable. The amounts collected under
section 20 of chapter 25 shall be impressed with a trust for the benefit of the
fund. To facilitate the purchase by the corporation of electricity produced by
renewable energy technologies or of certificates produced under the renewable
energy portfolio standard regulations of the department of energy resources
representing the generation attributes of electrical energy produced by
renewable energy technologies, and in consideration of the sale of such
electricity or certificates, the commonwealth shall covenant with the sellers
of such electricity or certificates that the amounts collected under said
section 20 shall not be diverted from the fund and that the rates of the
mandatory charges under said section 20 shall not be reduced during the term,
which shall not exceed 20 years, of any contract entered into by the
corporation for the purchase of such electricity or certificates below a level
which shall enable the corporation to fulfill the terms of such contracts. In
furtherance of the public purposes of the fund, income derived from the
investment of amounts collected under said section 20 shall be expended by the
corporation as provided in subsection (a) and, in the discretion of the
corporation, in furtherance of the public purposes of the corporation and for
such costs of departments and agencies that support or are otherwise consistent
with the purposes of the fund.
SECTION
50.
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
51.
Section 1 of
chapter 90 of the General Laws, as amended by section 1 of chapter 79 of the
acts of 2008, is hereby further 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 and is not diesel motor
fuel.
“Alternative fuel
vehicle”, a vehicle powered by alternative fuel with the following attributes:
(a) the capability
of operating only on alternative fuel;
(b) its original
use was commenced with the taxpayer;
(c) acquired by
the taxpayer for use or lease, but not for resale;
(d) is designed to
use and uses alternative fuel for a significant portion of the total fuel used
for propulsion energy for the vehicle; and
(e) when operating
on petroleum fuel, the vehicle model's miles per gallon rating from the United
States Environmental Protection Agency exceeds the agency's corporate average fuel
economy requirement for the class of vehicles, whether cars or light trucks, in
which the vehicle model is classified. The model specification shall include
characteristics that affect fuel economy and for which the United States
Environmental Protection Agency issues distinct miles per gallon ratings, such
as transmission type and engine size.
SECTION
52.
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”,
a vehicle (a) which draws propulsion energy from onboard sources of stored
energy which are both: (1) an internal combustion or heat engine using
combustible fuel; and (2) a rechargeable energy storage system; or (b) which,
in the case of a passenger vehicle, medium duty passenger vehicle or light
truck: (1) 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 adopted under
section 243(e)(2) of said Clean Air Act for that make and model year; (2) for
model year 2004 and later model vehicles, has received a certificate that the
vehicle meets or exceeds the Tier II Bin 5 emission level established in
regulations prescribed by the Administrator of the United States Environmental
Protection Agency under section 202(i) of said Clean
Air Act for that make and model year vehicle; and (3) achieves an increase of
10 per cent fuel efficiency as compared to the average vehicle of its class as
defined by the United States Environmental Protection Agency.
SECTION 53. Subclause (3) of clause (b) of the definition of “hybrid vehicle” in said section 1 of said chapter 90, as appearing in section 52, is hereby amended by striking out the figure “10” and inserting in place thereof the following figure:- 25.
SECTION
54.
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 (p) of section 94.
SECTION
55.
Said section 94 of said
chapter 143, as amended by section 1 of chapter 78 of the acts of 2008, is hereby
further amended by adding the following 4 clauses:-
(o) 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 department 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.
(p) In
consultation with the department 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.
(q) In
consultation with the department 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.
(r) In
consultation with the department 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
56.
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
57.
Chapter 164 of the General Laws is hereby
amended by striking out section 1, as amended by section 36 of said chapter 19,
and inserting in place thereof the following section:-
Section 1. In this
chapter, unless the context otherwise requires, the following words shall have
the following meanings:
“Aggregator”, an
entity which groups together electricity customers for retail sale purposes,
except for public entities, quasi-public entities or authorities, or subsidiary
organizations thereof, established under the laws of the commonwealth.
“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.
“Alternative
energy producer”, a person, firm, partnership, association, public or private
corporation, or an agency, department, board, commission or authority of the
commonwealth or of a subdivision of the commonwealth, that owns or operates a
cogeneration facility or small power production facility as defined in this section,
and does not engage in the retail sale of electricity other than sales to
customers that are within the confines of an industrial park, which existed
before
“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.
“Ancillary
services”, those functions which support generation, transmission, and
distribution, and which shall include the following services: (1) reactive
power or voltage control; (2) loss compensation; (3) scheduling and dispatch;
(4) load following; (5) system protection service; and (6) energy imbalance
service.
“Articles of
organization”, (i) the articles of organization of a
corporation which were filed after
(1)
a certificate of a vote establishing a series filed under section 26 of chapter
156B;
(2)
articles of amendment filed under section 8B;
(3)
restated articles of organization filed under section 8C;
(4)
certificates of confirmation of proceedings filed under section 8D;
(5)
articles of consolidation or merger filed under section 102A;
(6)
articles of dissolution filed under section 100 of chapter 156B;
(7)
a certificate as to the revival of a corporation filed under section 108 of
chapter 156B.
“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.
“Cogeneration
facility”, any electrical generating unit having a power production capacity
which, together with any other facilities located at the same site, is not
greater than 30 megawatts and which produces electric energy and steam or other
form of useful energy utilized for industrial, commercial, heating or cooling
purposes, and employs a fuel other than oil as its primary energy source,
except that oil may be used: (1) in combination with coal, in a mixture not
exceeding 70 per cent oil; or (2) during any modifications to any existing
electrical generating facility undertaken for the purpose of enabling such
facility to employ, except during any periods of maintenance or repair, a fuel
other than oil as its primary energy source; provided, however, that cogeneration
facility shall also include any electric generating unit having a power
production capacity which, together with any other facilities located at the
same site, is not greater than 30 megawatts and which produces electric energy
and steam or other form of useful energy utilized for industrial, commercial,
heating or cooling purposes that is within the confines of an industrial park,
which existed before
“Contract
termination fee”, the fees owed by the distribution company to its wholesale
power supplier, as determined and approved by the department of public
utilities.
“Corporation”, a
corporation to which this chapter applies, as set forth in section 3.
“Default Service”,
the electricity services provided to a retail customer upon: (i) the failure of a distribution company or supplier to
provide such electricity services as required by law or as contracted for under
the standard service offer; (ii) the completion of the term of the standard
service offer; or (iii) the inability of a customer to receive standard service
transition rates during the term of the standard service offer under section
1B.
“Department”, the
department of public utilities.
“Distributed
generation”, a generation facility or renewable energy facility connected
directly to distribution facilities or to retail customer facilities which
alleviate or avoid transmission or distribution constraints or the installation
of new transmission facilities or distribution facilities.
“Distribution”,
the delivery of electricity over lines which operate at a voltage level
typically equal to or greater than 110 volts and less than 69,000 volts to an
end-use customer within the commonwealth. The distribution of electricity shall
be subject to the jurisdiction of the department of public utilities.
“Distribution
company”, a company engaging in the distribution of electricity or owning,
operating or controlling distribution facilities; provided, however, that a
distribution company shall not include any entity which owns or operates plant
or equipment used to produce electricity, steam and chilled water, or an
affiliate engaged solely in the provision of such electricity, steam and
chilled water, where the electricity produced by such entity or its affiliate
is primarily for the benefit of hospitals and non-profit educational
institutions, and where such plant or equipment was in operation before
“Distribution facility”,
a plant or equipment used for the distribution of electricity and which is not
a transmission facility, a cogeneration facility or a small power production
facility.
“Distribution
service”, the delivery of electricity to the customer by the electric
distribution company from points on the transmission system or from a
generating plant at distribution voltage.
“Electric
company”, a corporation organized under the laws of the commonwealth for the
purpose of making by means of water power, steam power or otherwise and for selling, transmitting, distributing, transmitting and
selling, or distributing and selling, electricity within the commonwealth, or
authorized by special act so to do, even though subsequently authorized to make
or sell gas; provided, however, that electric company shall not mean an
alternative energy producer; provided further, that a distribution company
shall not include an entity which owns or operates a plant or equipment used to
produce electricity, steam and chilled water, or an affiliate engaged solely in
the provision of such electricity, steam and chilled water, where the
electricity produced by such entity or its affiliate is primarily for the
benefit of hospitals and nonprofit educational institutions, and where such
plant or equipment was in operation before
“Electric
service”, the provision of generation, transmission, distribution or ancillary
services.
“End user”, any
individual, corporation, firm or subsidiary of a 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.
“Energy
efficiency”, the implementation of an action, policy or measure which entails
the application of the least amount of energy required to produce a desired or
given output.
“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.
“FERC”, the
federal energy regulatory commission.
“Gas company”, a
corporation organized for the purpose of making and selling or distributing and
selling, gas within the commonwealth, even though subsequently authorized to
make or sell electricity; provided, however, that gas company shall not mean an
alternative energy producer.
“Generation”, the
act or process of transforming other forms of energy into electric energy or
the amount of electric energy so produced.
“Generation
company”, a company engaged in the business of producing, manufacturing or
generating electricity or related services or products, including but not
limited to, renewable energy generation attributes for retail sale to the
public.
“Generation
facility”, a plant or equipment used to produce, manufacture or otherwise
generate electricity and which is not a transmission facility.
“Generation
service”, the provision of generation and related services to a customer.
“Green building”, a
building, 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.
“Horizontal market
power”, a situation in which 1 or a few market participants combined have undue
concentration in the ownership of facilities at the same level in the chain of
production resulting in the ability to influence price to his or their own
benefit.
“
“Mitigation”, all
actions or occurrences which reduce the amount of money that a distribution
company seeks to collect through the transition charge, including those amounts
resulting from both matters within the company's control and from matters not
wholly within the company's control; provided, however, that mitigation shall,
in accordance with section 1G, include, but not be limited to, the following:
(1) sales of capacity, energy, ancillary services, reserves, and emission
allowances from generating facilities that are wholly or partly owned by the company;
(2) sales of capacity, energy, ancillary services, reserves and emission
allowances from generating facilities with which the company has a power
purchase agreement; (3) adjustments to the company's minimum obligations under
purchase power agreements that decrease such obligations, such as those that
may be obtained through contract buy-out or renegotiation; (4) residual value;
(5) sales and voluntary write downs of company generation-related assets; (6)
any market value in excess of net book value associated with the sale, lease,
transfer or other use of the assets of the company unrelated to the provision
of transmission service or distribution service at regulated prices, including,
but not limited to, rights-of-way, property and intangible assets when the
costs associated with the acquisition of those assets have been reflected in
the company’s rates for regulated service; provided, however, that the
department of public utilities shall determine the market values based on the
highest prices that such assets could reasonably realize after an open and
competitive sale; and (7) any allowed refinancing of stranded assets or other
debt obligations as provided by law.
“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.
“Primary energy
source”, fuels used, except during periods of maintenance or repair, for the
generation of electric energy; provided, however, that primary energy source
shall not include the minimum amounts of fuel required for ignition, start-up,
testing, flame stabilization, and control uses, and minimum amounts of fuel
required to alleviate or prevent unanticipated equipment outages and
emergencies declared by the governor, directly affecting the public health,
safety and welfare which would result from electric power outages.
“Renewable
energy”, (i) resources whose common characteristic is
that they are nondepletable or are naturally replenishable but flow-limited; or (ii) existing or
emerging non-fossil fuel energy sources or technologies, which have significant
potential for commercialization in New England and New York, and shall include
the following: solar photovoltaic or solar thermal electric energy; wind
energy; ocean thermal, wave, or tidal energy; geothermal; fuel cells; landfill
gas; waste-to-energy which is a component of conventional municipal solid waste
plant technology in commercial use; naturally flowing water and hydroelectric;
and 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; provided, however,
that renewable energy supplies shall not include coal, oil, natural gas except
when used in fuel cells, and nuclear power.
“Reseller”, a 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.
“Residual value”,
the value of electric company assets, not including the income which may be
obtained through generation facility operation.
“Retail access”,
the use of transmission and distribution facilities owned by a transmission
company or a distribution company to transmit or distribute electricity from a
generation company, supplier or aggregator to retail customers.
“Retail customer”,
a customer who purchases electricity for its own consumption.
“Securitization”,
the use of rate reduction bonds to refinance debt and equity associated with
transition costs under section 1H.
“Service
territory”, the geographic area in which a distribution company provided
distribution service on
“Small power
production facility”, a facility which is any electrical generating unit which
produces electric energy solely by the use, as a primary energy source, of
biomass, waste, wind, water, wood, geothermal, solar energy or any combination
thereof, or produces gas if it is produced from coal, biomass, solid waste or
wood, and has a power production capacity which, together with any other
facilities located at the same site, is not greater than 30 megawatts.
“Steam
distribution company,” a person, firm, partnership, association or private corporation
organized or operating under the laws of the commonwealth with the primary
purpose of operating a plant, equipment or facilities 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 or distributing steam exclusively on private property and solely for use
by the entity or the entity's tenant, and 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.
Supplier”, a
supplier of generation service to retail customers, including power marketers,
brokers and marketing affiliates of distribution companies, except that no
electric company shall be considered a supplier.
“Supplying
electricity in bulk”, engaging in the business of making and selling or
distributing and selling electricity to electric companies, railroads, street
railways or electric railroads, or to municipalities for municipal use or
re-sale to their inhabitants, or to persons, associations or corporations under
limitations imposed by special law or under section 90 or corresponding
provisions of earlier laws.
“Transition
charge”, the charge that provides the mechanism for recovery of an electric
company's transition costs.
“Transition
costs”, the embedded costs as determined under section 1H which remain after
accounting for maximum possible mitigation, subject to determination by the
department of public utilities.
Transmission”, the
delivery of power over lines that operate at a voltage level typically equal to
or greater than 69,000 volts from generating facilities across interconnected
high voltage lines to where it enters a distribution system.
Transmission
company”, a company engaging in the transmission of electricity or owning,
operating or controlling transmission facilities; provided, however, that a
transmission company shall provide transmission service to all generation
companies, municipal lighting plants, suppliers and load aggregators in the
commonwealth, whether affiliated or not, on comparable, nondiscriminatory
prices and terms, under federal law and regulation.
“Transmission
facility”, plant or equipment used for the transmission of electricity, as
determined by the FERC under federal law and regulation.
“Transmission
service”, the delivery of electricity to a retail customer, supplier,
distribution company or wholesale customer by a transmission company.
“Unbundled rates”,
rates designed to separate the costs of providing generation, the costs of
transmission and distribution services, and transition and general access
charges.
“Vertical market
power”, a situation in which 1 or a few market participants, having joint
ownership of facilities at differing levels of the chain of production, such as
generation, transmission and distribution, possess the ability to use such
joint ownership to influence price to his or their own benefit.
“Wholesaler”, a
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.
“Wholesale
generation company”, a company engaged in the business of producing,
manufacturing or generating electricity for sale at wholesale only.
SECTION
58.
Said section 1A of said chapter 164, as appearing
in the 2006 Official Edition, 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 solar energy; provided, however, that such company shall not own
or operate more than 25 megawatts of such facilities before
SECTION
59.
Subsection (f) of
section 1A of chapter 164 of the General Laws is hereby repealed.
SECTION
60.
Section 1D of said chapter 164, as so
appearing, is hereby amended by adding the following 3 paragraphs:-
Residential or
small commercial customers: (a) initiating new utility service; (b) reinstating
service following a change of residence or business location; (c) making an
inquiry regarding their rates; or (d) 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.
Participating
non-utility competitive suppliers of energy may list qualifying electric offers
to provide electric generation service to residential and small commercial
customers in 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: (a) bill all of the of the electric supplier’s
customers in a service class according to complete billing; (b) 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
61.
Subsection (c) of section 1E of said chapter
164, as so appearing, is hereby amended by striking out, in line 34, the figure
“2” and inserting in place thereof the following figure:- 2.5.
SECTION
62.
Section 1F of said
chapter 164, as so appearing, is hereby amended by striking out, in line 90,
the word “division” and inserting in place thereof the following word:-
department.
SECTION
63.
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
64.
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
65.
Section 1G of said
chapter 164, as so appearing, is hereby amended by striking out, in lines 366 and
367, the words “government regulations” and inserting in place thereof the
following words:- telecommunications, utilities and energy.
SECTION
66.
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
67.
Section 76D of said
chapter 164, as so appearing, is hereby amended by inserting after the word
“companies”, in lines 1 and 2, in line 14, the third time it appears, and in
line 20, the second time it appears, the following words:- , steam distribution
companies.
SECTION
68.
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
69.
Said chapter 164 is hereby further amended by
striking out section 96, as so appearing, and inserting in place thereof the
following section:-
Section 96.
Companies, except steam distribution companies, subject to this chapter and
their holding companies may, notwithstanding any other provisions of this
chapter or of any general or special law, 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 if 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 a public hearing, has
determined that such purchase and sale or consolidation or merger, and the
terms thereof, are consistent with the public interest; provided, however, that
in making such a determination the department shall at a minimum consider:
proposed rate changes, if any; the long term strategies that will assure a
reliable, cost effective energy delivery system; any anticipated interruptions
in service; or other factors which may negatively impact customer service; and
provided further, that the purchase or sale of properties by, or the
consolidation or merger of, wholesale generation companies shall not require
departmental approval.
SECTION
70.
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
71.
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
72.
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
73.
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
74.
Section 134 of
said chapter 164, as so appearing, is hereby amended by striking out, in lines
31, 51 and 75, the word “division” and inserting in place thereof, in each
instance, the following word:- department.
SECTION
75.
The fourth paragraph of section 134 of said
chapter 164, as so appearing, is hereby amended by striking out the last
sentence.
SECTION
76.
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
77.
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
78.
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:-
“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 2 megawatts 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.
“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
“Class I net
metering facility”, a plant or equipment that is used to produce, manufacture
or otherwise generate electricity and that is not a transmission facility and
that has a design capacity of 60 kilowatts or less.
“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
“Class II net
metering facility”, an agricultural net metering facility, 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
“Class
“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
“Neighborhood net
metering facility”, a Class I, II or
“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
“Renewable
energy”, energy generated from any source that qualifies as a Class I or Class
II renewable energy generating source under section 11F of chapter 25A;
provided, however, that after conducting administrative proceedings, the
department of energy resources, in consultation with the department of
agriculture, may add technologies or technology categories.
“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
(2) If the
customer’s kilowatt-hour usage exceeds the electricity generated by the Class 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
(1) If the
electricity generated by the Class
(2) If the
customer’s kilowatt-hour usage exceeds the electricity generated by the Class
(c) The
distribution portion of any Class I, Class II or Class
(d) The
distribution company shall impose 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
(e) A Class I, II
or
(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 adopt 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 the 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 adopt 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 department
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 department 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 department of
energy resources 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 senate and house committees on
ways and means not 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 in this subsection, 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 therefor. 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
79.
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 the 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 4. Any entity operating a steam distribution
system that does not meet the definition of a steam distribution company set
forth in section 1 of chapter 164 shall be exempt from the requirements of this
chapter and section 18A of chapter 25 if that the entity files a detailed
inspection and maintenance plan with the department every 2 years.
SECTION
80.
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
81.
Section 22 of chapter
140 of the acts of 2005 is hereby amended by striking out the words “11C of
chapter 25” and inserting in place thereof the following words:- 11I of
chapter 25A.
SECTION
82.
Section 23 of said
chapter 140 is hereby amended by striking out the words “11C of chapter 25” and
inserting in place thereof the following words:- 11I of chapter 25A.
SECTION
83.
Commencing on
For purposes of
this section, a long-term contract is defined as a contract with a term of 10
to 15 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 department 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 department 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 contracts executed by the distribution company under such
proposals are filed with, and approved by, the department of public utilities
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 the company for accepting the financial
obligation of the long-term contract, such provision to be acted upon by the
department of public utilities at the time of contract approval; and (d)
require that the renewable energy generating source to be used by a developer
under the proposal meet the following criteria: (1) have a commercial operation
date, as verified by the department of energy resources, on or after January 1,
2008; (2) be qualified by the department of energy resources as eligible to
participate in the RPS program, under said section 11F of chapter 25A, and to
sell RECs under the program; and (3) be determined by
the department of public utilities to: (i) provide
enhanced electricity reliability within the commonwealth; (ii) contribute to
moderating system peak load requirements; (iii) be cost effective to
Massachusetts electric ratepayers over the term of the contract; and (iv) where
feasible, create additional employment in the commonwealth. As part of
its approval process, the department of public utilities shall consider the
attorney general’s recommendations, which shall be submitted to the department
of public utilities within 45 days following the filing of such contracts with
the department of public utilities. The department of public utilities
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.
Distribution
companies 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 of public utilities’ 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 the purpose of meeting the 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 of energy resources 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 the
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.
If 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 contracts already executed and approved by the department of public
utilities shall remain in full force and effect.
On or before
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
84.
The secretary of energy
and environmental affairs shall, in conjunction with the department of public
utilities, implement an “energy pay and save”, hereinafter referred to as EPS,
pilot program, allowing electric utility customers to purchase and install
energy efficient or 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
SECTION
85.
On or before
SECTION
86.
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 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 before the
effective date of this act, it shall not be required to file a plan
under this section.
SECTION
87.
There is hereby established a special
commission to consist of 3 members of
the senate, 1 of whom shall be the senate chair for the joint committee on
telecommunications, utilities and energy who shall serve as co-chair, and 1 of
whom shall be appointed by the senate minority leader; 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, and 1
of whom shall be appointed by the house minority leader; the commissioner of
energy resources or a designee; the secretary of energy and environmental
affairs or a 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 construction and
demolition waste as it relates to the renewable energy portfolio standard
program established by section 11F of chapter 25A of the General Laws. 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
SECTION
88.
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 a designee;
the director of housing and community development or a designee; the secretary
of environmental affairs or a designee; the secretary of administration and
finance or a designee; 2 members of the senate, 1 of whom shall be appointed by
the senate minority leader; 2 members of the house of representatives, 1 of
whom shall be appointed by the house minority leader; the lieutenant governor
or a 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 a designee; 1 person
to be appointed by the commissioner of the revenue; 1 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 commission shall file a report of its findings with the clerks
of the senate and house of representatives not later than
SECTION
89.
There shall be a commission which shall
study the siting of energy facilities in the
commonwealth. The study shall include,
but not be limited to, the following: (a) the development of a procedure for
coordinating and consolidating applications to construct generating facilities
between and among the energy facilities siting board,
the department of environmental protection and other appropriate agencies, to
enable one-stop shopping for necessary permits or certificates or other
appropriate streamlining of the permitting system; (b) the expansion of such
coordinated procedures to other energy facilities, if appropriate; (c) possible
changes to the energy facilities siting board's
procedures for reviewing electric and gas transmission lines in light of recent
and proposed changes in the structure and regulation of the electric and gas
industries, including regional approaches to the siting of such facilities; (d) clarification of the energy facilities siting board’s jurisdiction over the re-powering of
existing generating facilities at existing sites and the appropriate standards
for reviewing such re-powerings; (e) the development
of coordinated procedures to examine the reuse of existing industrial sites for
the development of generating facilities; (f) the issue of application fees
paid by developers to the energy facilities siting board and the correlation of such fees to the board's procedures, as
statutorily revised under this act, in reviewing such applications; provided, however,
that the study shall include, but not be limited to, recommendations, if any,
on reducing the application fee paid by developers to the board in light of the
board's statutorily revised standards of review of such applications under this
act; (g) the establishment of a site characterization and suitability
commission within the department of environmental protection, which would
promulgate criteria to be applied to sites included in an application before
the energy facilities siting board and rule on
suitability of a proposed site as before the application is approved; and (h)
the possibility of requiring applicants to provide either (1) evidence that the
proposed facility would employ the best available and most efficient technology
to control and reduce water withdrawals, or (2) a description of the environmental
impacts, costs and reliability of the water withdrawal method chosen and an
explanation of why the proposed technology was chosen; (i)
whether current laws and regulations do not adequately facilitate the siting of renewable and alternative energy facilities, or whether
they make it more difficult to site renewable energy facilities than
fossil-fueled energy facilities, and, if either is the case, to make
recommendations for changes to such laws and regulations; and (j) whether
renewable and alternative energy generating facilities other than a waste-to-energy
facility should be allowed as of right on property zoned for industrial use.
The commission
shall consist of the secretary of energy and environmental affairs or a
designee, who shall be the chair of the commission; the secretary of
housing and economic development or a designee; the commissioner of energy
resources or a designee; the commissioner of environmental protection or a
designee; the commissioner of conservation and recreation or a designee; the
director of coastal zone management or a designee; the director of the
department of fish and game or a designee; 1 member of the energy facilities siting board; 3 members of the house of representatives, 1
of whom shall be appointed by the house minority leader; 3 members of the
senate, 1 of whom shall be appointed by the senate minority leader; 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 senate president; and the following members who shall be
appointed by the chair of the commission: 1 municipal official to be
nominated by the Massachusetts Municipal Association; 2 representatives of
environmental organizations, 1 of which shall be a land and water conservation
organization; 2 representatives of the alternative and renewable energy
industry; 1 representative of the electric industry; and 2
representatives to be nominated by the
SECTION
90.
The department 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 the dwelling. In establishing
the program, the department 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 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 section 19 of chapter 25
of the General Laws and allocated to residential customers. Not less than $5 million shall be made
available to assist participating financial institutions in offering these loan
products by or through interest rate write downs or other credit enhancement
features. Loans offered under the program shall be offered to residential
homeowners in the commonwealth solely for the purposes stated in this section.
The department
shall make such loans available for purchases made on or after
SECTION
91.
On or before
SECTION
92.
The department of public utilities shall hold
a public hearing and issue a report, not later than
The department of public utilities shall hold a
public hearing and issue a report, not later than
SECTION
93.
Notwithstanding any general or special law to
the contrary, the department of energy resources shall make available monies
from amounts collected through Alternative Compliance Payments established and
administered under 225 CMR 14.00 adopted under section 11F of chapter 25A
of the General Laws, in the form of grants or other financial incentives for
the following: (a) the green communities program established under section 10
of said chapter 25A; (b) 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; (c) commonwealth-based companies engaged in
developing flywheel energy storage technologies; and (d) 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
94.
The department of public utilities, in
consultation with the department of energy resources, shall review and assess
the effects of allowing electric and distribution companies to construct, own
or operate solar 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
SECTION
95.
The merger or
consolidation of holding companies under 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.
SECTION
96.
The department of
energy resources, in consultation with the division of capital asset management
and maintenance, shall establish, not later than
SECTION
97.
On or before
SECTION
98.
Not later than
SECTION
99.
The
Massachusetts Turnpike Authority shall develop a plan, in consultation with the
executive office of transportation and the executive office of energy and
environmental affairs, for the availability of alternative fuel at each fueling
facility or service terminal on the Massachusetts Turnpike. The plan shall
provide for the availability of alternative fuel at such locations not later
than
SECTION
100.
(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 energy and 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) The 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) The plan shall
identify strategies and corresponding methods of achieving its identified goals
together with necessary administration and legislative actions. The plan shall
be filed with the clerks of the senate and house of representatives not later
than 18 months after the effective date of this
act.
SECTION
101.
The operational services division, in
consultation with the executive office of transportation, the secretary of
administration and finance, the department 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 bulk 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 file its findings of the study, and its recommendations,
if any, together with drafts of legislation necessary to carry such
recommendations into effect, with the clerks of the senate and house of
representatives not later then 1 year after the effective date of this act.
SECTION
102.
The department of public utilities, in
consultation with the department 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
SECTION
103.
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
104.
The first report required to be filed by the
division of green communities under subsection (f) of section 10 of chapter 25A
shall be filed with the clerks of the senate and the house of representatives,
the joint communications on telecommunications, utilities, and energy, and the
senate and the house committees on ways and means not later than
SECTION
105.
(a) For the purposes of this section, the
following words shall, unless the context clearly requires otherwise, have the
following meanings:-
“Department”, the department of energy resources.
“Generator”, the person that owns,
directly or indirectly, as determined by the department, the output from the
renewable energy generating source that is located in the
“Person”, an individual, corporation,
limited liability company, general or limited partnership, trust, association
or other entity, or an agent of such person.
(b)
A renewable energy generating source, as defined in subsection (b) of section
11F of chapter 25A of the General Laws, that is physically located in or
relocated to a control area adjacent to the
(c)
The delivery of renewable energy into the
(d) During any period in which the generator is
delivering renewable energy from the renewable energy generating source into
the
(e) The renewable portfolio
standard credit applicable to the eligible renewable energy as determined under
subsection (d) shall be reduced by any exports of energy from the
(f) The department may adopt regulations and
requirements to implement this section.
(g) The department shall assess the feasibility of
implementing subsections (c) and (e) and report its findings along with
proposed regulations for implementing these subsections in accordance with
section 12 of chapter 25A, on or before
(h) Subsections (c) and (e) shall take effect,
subject to the provisions of section 12 of chapter 25A, after the report
required under subsection (g) has been filed if the department has determined
that it is feasible to implement these subsections.
SECTION
106.
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, under 42 U.S.C. § 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, 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
SECTION
107.
The department 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 in the commonwealth. The study shall: (a) address any
existing inequities or other barriers preventing the establishment of
municipal-owned electric utilities in current statutes or regulations; (b)
provide a financial overview of the purchase of an investor owned utility’s
assets by a municipality; and (c) include a review of the impact on:
reliability; investor owned utility operations; municipal taxes; rates for both
distribution company customers and municipal customers; lost revenues for
investor owned utilities; effect on energy efficiency programs; the impact on
capital borrowing; and impact on low-income customers.
There shall be a
commission that shall advise the commissioner of energy resources with respect
to this study. The commission shall be comprised of the commissioner or a designee
who shall serve as chair, and 11 other members as follows: 4 of whom shall be
appointed 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 of whom shall be appointed by the attorney
general and who shall be from the office of the attorney general; 1 of
whom shall be appointed by the commissioner of the department of public
utilities and who shall be from the department of public utilities; 1 of whom
shall be a municipal finance expert recommended by the Massachusetts Taxpayers
Foundation; 1 of whom shall be a representative of the Utility Workers of
America; and 2 of whom shall be 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 department of energy resources shall
submit the study to the joint committee on telecommunications, utilities and
energy not later than
SECTION
108.
(a) On or before
(b) The content of
such courses shall include, but not be limited to, the following:
(1) the need for
broad public-private collaboration to achieve the acceleration of
customer-orientated energy efficiency and conservation programs;
(2) a short-term
concentration on retrofitting existing energy control systems to achieve
significant energy and financial savings as well recent advancements in this
technology;
(3) the basic
principles of personal financial accounting to demonstrate that capital
investment should achieve the savings identified in clause (2);
(4) the
demonstration of the major cost savings of instituting energy efficiency and
conservation programs, including demand side management planning, as compared
with the costs of purchasing energy;
(5) existing
programs available through public utilities, municipal lighting departments,
municipal aggregators and other entities to assist customers with their energy
reduction, including any prospective expansion thereof;
(6) the benefits
to all energy users resulting from the reduction by individual users of their
energy consumption, which reduces the burden on public utilities to procure
increasing amounts of energy overall and at moments of peak usage; and
(7) any additional
benefits as energy usage becomes more sustainable in the commonwealth.
(c) In preparing
and revising the syllabus for such courses, the
(d) The department
of energy resources shall issue a report detailing the progress of the pilot
program to the clerks of the senate and the house representatives, the joint
committee on telecommunications, utilities and energy, and the senate and house
committee on ways and means, on or before
SECTION
109.
Notwithstanding any general or special law to
the contrary, the department of public utilities shall open an investigation
and study relative to off-the-record ex-parte communications in any contested, on-the-record proceeding before the
department. The department shall report
to the general court 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 who shall forward the same to the
chairs of the joint committee on telecommunications, utilities and energy on or
before
SECTION
110.
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
SECTION
111.
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 Apri1 30,
2009. 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
SECTION
112.
Not later than
SECTION
113.
Clause (i) of
paragraph (1) of subsection (c) of section 22 of chapter 21A of the General
Laws shall not impact any enforceable multiyear agreements effective during the
period from
SECTION
114.
Said clause (i) of said paragraph (1) of said subsection (c) of said
section 22 of said chapter 21A shall be effective for tax years beginning on or
after
SECTION
115.
Notwithstanding
paragraph (2) of subsection (c) of section 22 of chapter 21A of the General
Laws, the department of environmental protection may withhold from auction such
allowances of vintage years 2009 to 2012, inclusive, as may be necessary to
provide a transition to the Regional Greenhouse Gas Initiative from the program
established under 310 CMR 7.29.
SECTION
116.
(a) It is hereby established that the
commonwealth’s renewable and alternative energy and energy efficiency goals are
as follows:-
(1) meet at least
25 per cent of the commonwealth’s electric load, including both capacity and
energy, by the year 2020 with demand side resources including: energy
efficiency, load management, demand response and generation that is located
behind a customer’s meter including a combined heat and power system with an
annual efficiency of 60 per cent or greater with the goal of 80 per cent annual
efficiency for combined heat and power systems by 2020;
(2) meet at least
20 per cent of the commonwealth’s electric load by the year 2020 through new,
renewable and alternative energy generation;
(3) reduce the use
of fossil fuel in buildings by 10 per cent from 2007 levels by the year 2020
through the increased efficiency of both equipment and the building envelope;
(4) develop a plan
to reduce total energy consumption in the commonwealth by at least 10 per cent
by 2017 through the development and implementation of the green communities
program, established by section 10 of chapter 25A of the General Laws, that
utilizes renewable energy, demand reduction, conservation and energy
efficiency. Not later than September 1 of each year, the
secretary of energy and environmental affairs shall establish an annual
reduction target for the commonwealth for the following calendar year.
(b) The secretary
of energy and environmental affairs shall prepare, with the assistance of the
energy advisory board established under subsection (c), a 5-year plan for
meeting the renewable and alternative energy and energy efficiency goals of the
commonwealth. The plan shall include strategies to meet each of the goals
and shall also address the following topics:
(1) reduction of
energy use in state buildings;
(2) reduction of
energy use in municipal buildings;
(3) equitable
distribution of program benefits to all customers and particularly low income
customers to address the affordability and adverse impacts on low-income
households of energy costs and demand mitigation strategies, and mitigation of
such adverse impacts, such as by compensating adjustments to the low-income
rate discount;
(4) the use of
investment tax credits and tax policy generally to encourage investment in
energy efficiency and renewable and alternative technologies;
(5) increased
generation and use of renewable and alternative energy;
(6) the
coordination and integration of programs within the commonwealth and with
regional efforts carried out by other
(7) progress
towards improving the efficiency of buildings and mechanical systems on an
all-fuels basis including, electric, gas and oil.
(c) The secretary
of energy and environmental affairs shall appoint an advisory board to assist
in the development and review of the plan. The board shall meet at the
call of the secretary. The secretary
shall submit the plan to the speaker of the house of representatives, the
president of the senate, the senate and house committees on ways and means, and
the joint committee on telecommunications, utilities and energy.
(d) The 5-year
plan shall designate the agency responsible for implementation of each strategy
and shall include timelines, performance standards, specific regulatory or
legislative changes, evaluation procedures and additional budget
requirements.
SECTION
117.
Section 21 of
chapter 21A of the General Laws shall take effect on
SECTION
118.
Subsections (c), (d)
and (e) of section 11F of chapter 25A of the General Laws shall take effect on
SECTION
119.
Subsection (a) of
section 11F1/2 of chapter 25A of the General Laws shall take effect on
SECTION
120.
Subsection (o) of
chapter 143 of the General Laws shall take effect 6 months after the effective
date of this act.
SECTION
121.
Section 5 shall take
effect 1 year after the effective date of this act.
SECTION
122.
Section 59 shall take
effect on
SECTION 123. Section 53 shall take effect 3 years after the effective date of this act
SECTION
124.
Section 80 shall take
effect on
