| By Mr. Tarr, a petition (accompanied by bill, Senate,
No. 2176) of Bruce E. Tarr, Robert E. Travaglini, Steven
A. Baddour, Scott P. Brown and other members of the
General Court for legislation to promote the development
of alternative fuels andthe use of alternative fuel
vehicles in the Commonwealth. Transportation. |
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 31A of Chapter 63 is hereby amended in line 4 by adding after the words “commercial fishing” the following words:- "or a corporation primarily engaged in the development, construction or operation of alternative fuel refueling stations and the development of alternative fuels”
and the same section is hereby further amended in line 24 by adding after the words “commercial fishing” the following words: -
“or a corporation primarily engaged in the development, construction or operation of alternative fuel refueling stations and the development of alternative fuels”
Section 2. Section 4 of chapter 64E is hereby amended by striking out in line 9 the words “19.1 per cent” and replacing them with the following words: - “25 per cent less than the rate on fuel set forth in chapter 64A”.
SECTION 3. There is hereby established at the University of Massachusetts , the Commonwealth Alternative Fuels Institute, for the purpose of the research and development of Alternative Fuel Vehicles and Hybrids and alternative fuels as defined in section 17 of this act, and any related technology and componetry involved in the production, conversion, operation and maintenance of such alternative fuel vehicles and hybrids.
The institute shall have among its primary goals the development and commercialization of the vehicles, fuels, equipment and technology described above for the purposes of deriving environmental benefits, reducing dependence on conventional fossil fuels, and facilitating economic growth of the Commonwealth.
The institute shall be governed by such policies and operating procedures as developed and maintained by the President of the University and its Board of Trustees, together with the governing bodies of each subdivision of the university assigned to engage in the operations of the institute.
Subject to appropriation, the institute shall engage in such projects as determined to be feasible by its Advisory Board, and may issue requests for proposals and enter into cooperative research agreements in carrying out the provisions of this act.
There shall be an advisory board of the institute, comprised of thirteen members appointed as follows:
The President of the University of Massachusetts or his designee, who shall also serve as the chair, the Secretary of Environmental Affairs or his designee, the Secretary of Economic Affairs or his designee, the Secretary of Transportation or his designee, the General Manager of the Massachusetts Bay Transportation Authority or his designee, a representative of the Regional Transit Authorities; three members appointed by the Governor, 1 of which shall represent the business community, 1 of which shall have expertise in environmental issue, and 1 of which shall represent consumers in the Commonwealth, two members appointed by the President of the University, each having expertise in relevant science and technology, 1 member appointed by the President of the Senate and 1 member appointed by the Speaker of the House. Each appointed member shall serve for a term of three years, and shall be eligible to be appointed for consecutive terms.
Following the passage of this act, the institute shall undertake a comprehensive industry needs assessment, in consultation with the advisory board, of businesses engaged in the research, development and/or production of alternative fuel vehicles and hybrids, alternative fuels and related components and technologies. Said assessment, which shall be completed not later than six months following the passage of this act, shall include but not limited to:
SECTION 4. Section 2 of Chapter 90 is hereby amended by adding after the 10 th paragraph the following new paragraph:-
“The registrar shall also furnish a special vehicle identification placard or sticker bearing a designation to be determined by the registrar to any person who is the title or lease holder of a qualified alternative fuel vehicle or hybrid fuel vehicle, as prescribed in section 1 of this act, hereinafter called “Energy Independence Placard”, and who meets the requirements for such a placard prescribed herein. The placard shall be of such size and design as the registrar shall require and shall be numbered and contain such identifying features and specifications as the registrar shall deem appropriate. When used by the authorized user, the placard or sticker shall be permanently affixed to the vehicle so as to be readily visible in accordance with instructions provided by the registrar from time to time. Upon application and for good cause shown by the applicant, the registrar may issue to any qualified person a placard or sticker as described in this section. The registrar may impose a reasonable fee upon applicants for the costs associated with the processing of applications and the issuance of placards.”
SECTION 5. Chapter 25A of the general laws, as appearing in the 2002 official edition is hereby amended by adding after section 11G the following new sections: -
Section 1. “11H ENERGY INDEPENDENCE GRANT FUND, ESTABLISHMENT:
There is hereby established the Energy Independence Grant fund, hereinafter called the Independence fund, for the purpose of encouraging the purchase, lease, aftermarket conversion and the use of hybrid and alternative energy vehicles, including heavy, medium and light duty vehicles, that utilize either a single fuel or dual fuel, by cities and towns in the Commonwealth, School Districts and Regional Transit Authorities (RTA’s). Said grants may be utilized as funds for the purpose of matching federal grants. In addition, said grants may expend pursuant to purchasing cooperatives agreements with other entities. Funds expended pursuant to this section shall to the extent possible maximize reimbursement from federal or other sources. The Independence fund which shall be credited any appropriations, bond proceeds or other monies authorized by the general court and specifically designated to be credited thereto. The division shall hold the Independence fund in an account or accounts separate from other funds or accounts. The Independence fund shall encourage, support, and foster the development of hybrid and alternative energy vehicles in order to promote increased autonomy from fossil fuels and mitigate the fiscal impact of the high cost of fuel on cities and towns as well as provide environmental benefits through the reduction of carbon dioxide and carbon monoxide emissions.”
Section 2. “11I ENERGY INDEPENDENCE GRANT FUND, APPLICATION, AWARDING OF GRANTS:
“(a) The division shall receive applications for said funds from cities and towns and RTA’s and award grants to individual cities and towns, school districts and RTA’s to assist in the purchase or lease of hybrid and alternative energy vehicles or for the aftermarket conversion of conventional fuel vehicles for municipal and regional transit purposes. The division shall develop a scoring system that will serve as the basis for the evaluation and the determination of awarding grants pursuant to this section. One determined scores shall determine the maximum grant amount available for a specific application. Said scoring system shall based upon the type of vehicle being acquired and/or retrofitted, the cost, type of use antici pat ed, fuel economy, range, and the antici pat ed useful life of a said vehicle and shall employ the federal standards as set forth in the Corporate Average Fuel Economy (CAFÉ) provision of the Energy Policy Conservation Act of 1975 and any other applicable federal standards. Said scoring system shall designate the amount of assistance available to a municipality or RTA based upon the above factors. The division may award grants in an amount up to the amount designated in the scoring system commiserate with the above factors. The division shall give consideration in the awarding of grants to applications from cities and towns, school districts and RTA’s from diverse geographic regions of the Commonwealth. Any city or town, school district or RTA which is awarded a grant under this program shall submit an annual report to the division identifying the type of the hybrid or alternative fuel vehicle purchased, leased or converted, as well as detailing the usage and any cost savings to the city or town, school district or RTA’s associated with the reduction of use from standard gasoline from the use of said vehicle, as well as any environmental benefits particularly from, but not limited to, the reduction in emissions.
(b) A city or town, school district or RTA shall apply for an independence fund grant in the manner specified by the commissioner.
(c) The division shall promulgate policies, rules and regulations consistent with this chapter to implement subsections (a) and (b). The commissioner of the division shall file any such policies, rules, and regulations with the joint committee on state administration and regulatory oversight for review and comment not later than 30 days before the effective date of the policies, rules, and regulations.”
SECTION 6. Section 1. The sums expended herein in section 2 shall be distributed pursuant to a grant program developed and administered by the Division of Energy Resources. The development of said plan shall consultations with regional transit authorities as established pursuant to chapter 161B. Said grant program shall facilitate the development of an alternative fuel infrastructure throughout the Commonwealth.
Section 2. Pursuant to this act grants shall be made available for the following purpose:
The planning, design and construction of alternative fuel refueling stations on the site of land owned or controlled by the Commonwealth or a Regional Transit Authority with a minimum useful life of 5 years. For financial assistance to cities and towns, RTA’s and agencies of the Commonwealth for the acquisition of alternative fuel vehicles and hybrids with a minimum useful life of 3 years, pursuant to the provisions of sections 5 and 17 of this act.
Section 3. In carrying out the provisions of this act the Commonwealth or a RTA may enter into agreements or contracts with providers and distributors of alternative fuels necessary to carry out the purpose of this act.
Section 4. To meet a portion of the expenditures necessary in carrying out the provisions of section 2 the state treasurer shall, upon request of the governor, issue and sell bonds of the commonwealth in an amount to be specified by the governor from time to time, but not exceeding in the aggregate the sum of $10,000,000. All bonds issued by the commonwealth as aforesaid shall be designated on their face, Alternative Energy, Energy Independence Act of 2005, and shall be issued for such maximum term of years, not exceeding 20 years, as the governor may recommend to the general court pursuant to Section 3 of Article LXII of the Amendments to the Constitution of the Commonwealth; provided, however, that all such bonds shall be payable not later than June 30, 2030 . All interest and payments on account of principal of such obligations shall be payable from the Energy Fund. Bonds and interest thereon issued under the authority of this section shall be general obligations of the commonwealth; provided, however, that any bonds issued by the state treasurer pursuant to this section shall, upon the request of the governor, be issued as special obligation bonds pursuant to section 2O of chapter 29 of the General Laws; provided further, that in deciding whether to request the issuance of particular bonds as special obligations the governor shall take into account (i) generally prevailing financial market conditions, (ii) the impact of each approach on the overall capital financing plans and needs of the commonwealth, (iii) any ratings assigned to outstanding bonds of the commonwealth and any ratings expected to be assigned by any nationally recognized credit rating agency to the bonds proposed to be issued, and (iv) any applicable provisions of a trust agreement or credit enhancement agreement entered into pursuant to said section 2O of said chapter 29.
SECTION 7. Not less than $100,000 shall be expended from the Energy Independence Fund, as established pursuant to this act, for the Massachusetts Maritime Academy for the purpose of a developing a pilot program to utilize wind energy technology to create, on-site, hydrogen based electricity to reduce the high cost of energy at public institutions of higher learning, and provided further, that the academy use said funds for the purpose of the development of a hydrogen based fuel cell powered tug boat.
SECTION 8. The Massachusetts Turnpike Authority is hereby authorized and directed to develop a plan, in consultation with the Executive Office of Transportation and Construction for the availability of alterative fuel vehicles, as defined in section 17 of this act, at each fueling facility/service terminal on the Massachusetts Turnpike. Said plan shall provide for such availability no later than January 1, 2012 . Should the authority determine that facilitating such availability is not feasible, it shall report such findings together with the reasons therefore to the House and Senate Committees on Ways and Means and the Joint Committee on Transportation not later than January 31, 2006 .
SECTION 9. Section 3 of chapter 62 is hereby amended by adding after subsection B(a)9 the following new subsection: -
“Section 9½. For taxable years beginning on or after January 1, 2006 in the case of an individual who purchases a hybrid or alternative fuel vehicle in said taxable year there shall be a deduction in the amount of $2000 for a single person, for a person that qualifies as a head of household under section two (b) of the Code, or for a husband and wife, in the taxable year in which the purchase is made. The division of revenue may require a proof of purchase to be submitted with a return in order to be eligible for the deduction, provided further this provision shall be in effect for taxable years 2006, 2007, 2008, 2009 and 2010.”
SECTION 10. The Massachusetts Turnpike Authority shall make available to all holders of placards as established in section 4 of this act Fast Lane toll transponders, so-called, and shall waive the initial application fee associated with the acquisition of said transponder.
SECTION 11. Hybrids and alternative fuel vehicles which display a placard pursuant to the provisions of section 4 of this act shall be permitted to travel in HOV lanes, so-called.
SECTION 12. Municipalities are hereby permitted, by local by-law or ordinance, to grant municipal parking at a reduced rate or without charge to holders of placards established pursuant to section 4 of this act.
SECTION 13. The Commissioner of the Division of Energy Resources, in consultation with the with the Secretary of Administration and Finance, the Secretary of the Executive Office of Transportation, the General Manager of the Massachusetts Bay Transportation Authority, a representative of the Regional Transit Authorities, the Secretary of the Executive Office of Economic Affairs, the Secretary of the Executive Office of Environmental Affairs, and the Operation Services Division, is hereby authorized and directed to develop a statewide master plan for the advancement of alternative fuel vehicles and hybrids and related technology in the Commonwealth.
The plan shall encompass a ten year period beginning in 2007, and shall be divisible in increments of not less than five years. Said 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.
The plan may establish goals for such areas as the purchase and use of alternative fuel vehicles and hybrids by the Commonwealth, its political subdivisions, private commercial fleets and citizens, the development of fueling facilities, and technologies, and the production, import action, and/or distribution of alternative fuels.
In addition, the plan shall identify strategies and correspondent methods or achieving its identified goals together with any necessary administration and legislative actions. Said plan shall be reported to the Clerks of the House and Senate not later than eighteen months following the passage of this act.
SECTION 14. Not later than December 31 of each year, the Massachusetts Bay Transportation Authority shall file with the clerks of the House and Senate and the Joint Committee on Economic Development and Emerging Technologies a report indicating its utilization of alternative fuel vehicles, hybrid vehicles, and related technologies. Said report shall also include the increased cost or savings, if any, associated with the use of such vehicles, and the positive and negative factors, if any, associated with their use.
Said report shall also identify any impediments to the use of such vehicles and technologies, and include any legislative recommendations to address those impediments.
SECTION 15. Chapter 63 is hereby amended by adding after Section 31C the following new section: -
Section 31C½ . Any Massachusetts corporation which maintains a motor vehicle fleet equal to or in excess of 50 vehicles, including those of carriers licensed pursuant to chapter 159B, and purchases, leases or performs an aftermarket conversion of a conventional fuel vehicle to alternative fuel and maintains said alternative fuel vehicles, and which has been deemed to be such under section thirty-eight C or forty-two B, shall be allowed a credit as hereinafter provided against its excise due under this chapter. The amount of such credit shall be equal to fifty percent the difference between the amount of the purchase price or aftermarket conversion of the alternative fuel vehicle and the listed purchase price of a gasoline powered vehicle of like qualities during the taxable year of the purchase, as hereinafter provided. No corporation which does not maintain at least 10% of its fleet as alternative fuel vehicles shall be eligible for the credit.
SECTION 16. Chapter 63 is hereby amended by adding after Section 31C the following new section: -
Section 31C¾. Any Massachusetts corporation, licensed as a common carrier of passengers under chapter 159A, which maintains a motor vehicle fleet equal to or in excess of 25 vehicles and purchases, leases or performs an aftermarket conversion of a conventional fuel vehicle to alternative fuel and maintains alternative fuel vehicles, and which has been deemed to be such under section thirty-eight C or forty-two B, shall be allowed a credit as hereinafter provided against its excise due under this chapter. The amount of such credit shall be equal to fifty percent the difference between the amount of the purchase price or aftermarket conversion of the alternative fuel vehicle and the listed purchase price of a gasoline powered vehicle of like qualities during the taxable year of the purchase, as hereinafter provided. No corporation which does not maintain at least 10% of its fleet as alternative fuel vehicles shall be eligible for the credit.
SECTION 17. For the purposes of this act the following words shall have the following meaning.
“Aftermarket conversions”, a converted vehicle originally designed to operate on gasoline that has been altered to run on an alternative fuel exclusively or with gasoline.
“Alternative fuels”, biodiesel, electricity, ethanol, hydrogen, low-sulfur diesel, methanol, natural gas, and propane.”
“Alternative fuel vehicle”, vehicles powered by alternative fuels.
“Alternative fuel refueling station”, any platform that provides for the delivery of alternative fuels.
“Biodiesel”, renewable fuel that can be manufactured from vegetable oils, animal fats, or recycled restaurant greases, including both biodiesel blends and pure forms, including B20 20% neat biodiesel and 80% diesel.
“Electricity”, transportation fuel to power battery electric and fuel cell vehicles.
“Ethanol”, an alcohol-based alternative fuel produced by fermenting and distilling starch crops that have been converted into simple sugars, specifically blends such as 85% ethanol and 15% gasoline B85 shall be considered an alternative.
“Heavy duty vehicles”, vehicles with a gross vehicle weight rating (GVWR) equal to and greater than 40,001 pounds GVWR.
“Hybrid vehicle”, a gasoline-electric hybrid vehicle which use gasoline (petrol) and electric batteries for the energy used to power internal-combustion engines (ICEs) and electric motors .
“Hydrogen”, hydrogen gas (H 2) is in a gaseous state at atmospheric pressure and ambient temperatures and may contain low levels of carbon monoxide and carbon dioxide for use in combustion engines and fuel cell electric vehicles.
“Light duty vehicles”, vehicles with a gross vehicle weight rating (GVWR) of 0 to 10,000 pounds GVWR.
“Low-sulfur diesel”, diesel fuel specially refined that has dramatically lower sulfur content ranging from 15 to 30 parts per million.
“Medium duty vehicles,” vehicles with a gross vehicle weight rating (GVWR) of 10,001 to 40,000 pounds GVWR.
“Methanol”, a wood alcohol, can be used as an alternative fuel in flexible fuel vehicles that run on M85 (a blend of 85% methanol and 15% gasoline).”
“Natural Gas”, applications as stored onboard a vehicle as compressed natural gas (CNG) at 3,000 or 3,600 psi or as liquefied natural gas (LNG) at typically 20-150 psi.”
“Propane- liquefied petroleum gas (LPG).”
“Regional Transit Authority”, (RTA) as established pursuant to chapter 161 and chapter 161B.”
SECTION 18. Section 11B of Chapter 25A of the general laws, as appearing in the 2002 official edition is hereby amended by adding at the end thereof the following new paragraphs: -
“The Commonwealth when purchasing new motor vehicles shall purchase hybrid or alternative fuel vehicles to the maximum feasible extent at a rate of not less than 5% annually for all new motor vehicle purchases in order that not less than 50% of the motor vehicles owned and operated by the commonwealth are hybrid or alternative energy vehicles by the year 2010.
The Division of Operational Services shall forward to the Division of Energy resources all requests for motor vehicle acquisitions by agencies of the Commonwealth. The division shall thereafter report to the Division of Operational Services regarding the availability of any hybrid or alternative fuel vehicle that will feasibility achieve the intended use designated by the requesting agency.
The division shall develop a system of protocols for the reporting to the division of operational services 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 antici pat ed mileage and usage of said vehicles, as well as the effectiveness of single fuel or dual fuel alternative fuel vehicles for the particular purpose identified.
The division shall submit in writing to the Secretary of the executive office of administration and finance, the house and senate clerks and the joint committee of state administration and regulatory oversight an annual statement detailing the progress, as well as any additional information relevant to the acquisition of hybrid or alternative energy vehicles by the commonwealth.
SECTION 19. The secretary of executive of administration and finance through the division of operational services, in consultation with the commissioner of the Division of Energy Resources, is hereby authorized and directed to enter into any necessary contracts and agreements with the manufacturers or providers of hybrid or alternative energy motor vehicles for the purchase or lease of said vehicles, or aftermarket conversion equipment or technologies in order to be in compliance with the requirements of this act.
SECTION 20. The Commissioner of the Division of Energy Resources shall each year develop a directory of alternative fuel vehicles, equipment and services for all such items available for purchase by public entities in the Commonwealth.
Said directory shall include vehicles available for heavy, medium and light duty usage, as well as the spectrum of alternative fuels available and equipment in all categories contained in section 17 of this act, and the appropriate applications, estimated costs, and positive and negative aspects of each. To the extent possible, the directory shall contain photographs.
Said directory shall be produced and promulgated in a manner reasonably devised to assist in promoting awareness and the utilization of alternative fuel vehicles by the Commonwealth and its political subdivisions and shall be made available to municipalities and agencies of the Commonwealth to assist in the identification and acquisition of alternative fuel vehicles and hybrids. In addition, said catalog shall be made available to non-government entities, provided that the division shall be able to impose a reasonable fee consistent with the cost of re-producing the catalog.
SECTION 21. The Operational Service Division, in consultation with the Executive Office of Transportation, the Secretary of Administration and Finance, the Division of Energy Resources, the Massachusetts Bay Transportation Authority, and Regional Transit Authorities, is hereby authorized and directed to study the feasibility of developing and implementing a system to facilitate the mass purchase of alternative fuel vehicles by the Commonwealth and its political Subdivisions. Said study shall include but not be limited to the potential cost savings to be derived from such a system, the cost of its administration, appropriate purchasers to partici pat e in the system, and the probability of its utilization by those purchasers.
The Operational Services Division shall report the findings of said study, together with any legislative recommendations, to the Clerks of the House and the Senate, not later then twelve months following the passage of this Act.
SECTION 22. The Secretary of Economic Affairs is hereby authorized and directed, in consultation with the Executive Office of Transportation and the Division of Energy Resources, to evaluate the feasibility and desirability of any and all methods which could be utilized by the Commonwealth in order to incent or incubate the production of alternative fuel vehicles and equipment within its borders.
Said evaluation shall include, but not be limited to, the potential economic benefits of such production, including job growth, and the potential environmental benefits associated with the production and increased distribution of alternative fuel vehicles and equipment in the state.
The Secretary shall report the findings of said evaluation, together with any legislative recommendations, not later than twelve months following the passage of this Act, to the Clerks of the House and Senate.
SECTION 23. Section 2 shall be in effect for taxable years 2005, 2006, 2007, 2008, 2009, and 2010.
SECTION 24. Section 15 and Section 16 shall be in effect for taxable years 2005 through 2015.