[ Text of section effective until July 2, 2008. For text effective July 2, 2008, see below.]
Section 19. Beginning on March 1, 1998, and for a period of 15 years thereafter, the department is authorized and directed to require a mandatory charge per kilowatt-hour for all consumers of the commonwealth, except those served by a municipal lighting plant, to fund energy efficiency activities, including, but not limited to, demand-side management programs. Said charge shall be the following amounts: 3.3 mills ($0.0033) per kilowatt-hour for calendar year 1998; 3.1 mills ($0.0031) per kilowatt-hour for calendar year 1999; 2.85 mills ($0.00285) per kilowatt-hour for calendar year 2000; 2.7 mills ($0.0027) per kilowatt-hour for calendar year 2001; and 2.5 mills ($0.0025) per kilowatt-hour for calendar years 2002 to 2012, inclusive; provided, however, that in authorizing such programs the department shall ensure that they are delivered in a cost-effective manner utilizing competitive procurement processes to the fullest extent practicable. At least 20 per cent of the amount expended for residential demand-side management programs by each distribution company in any year, and in no event less than the amount funded by a charge of 0.25 mills per kilowatt-hour, which charge shall also be continued in the years subsequent to 2002, shall be spent on comprehensive low-income residential demand-side management and education programs. A distribution company shall not be allowed to assess any other charge relative to energy efficiency programs which would exceed the levels permitted herein. 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 gas and distribution companies in the commonwealth with the objective of standardizing implementation. Municipal demand side management programs shall include meter reading technologies for the purpose of energy efficiency, conservation and other energy management applications. On January 1, 2011, the division of energy resources shall, in order to determine if energy investments shall continue beyond that time, review then-current market barriers, experience with competitive markets, and related environmental and economic goals. If said division determines that the continued operation of the programs delivers cost-effective, energy efficiency services, said division shall file, with the clerk of the house of representatives of the general court, legislation to extend for a time certain the authorization contained herein for such a charge to fund energy efficiency activities.
Chapter 25: Section 19. Funding for energy efficiency programs; mandatory charge per kilowatt-hour; other funding; gas energy efficiency programs; allocation of funds
[ Text of section as amended by 2008, 169, Sec. 11 effective July 2, 2008. For text effective until July 2, 2008, see above.]
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 ISO-NE, as defined in section 1 of chapter 164; and (2) cap and trade pollution control programs, including, but not limited to, and subject to section 22 of chapter 21A, not less than 80 per cent of amounts generated by the carbon dioxide allowance trading mechanism established under the Regional Greenhouse Gas Initiative Memorandum of Understanding, as defined in subsection (a) of section 22 of chapter 21A, and the NOx Allowance Trading Program; and (3) other funding as approved by the department after consideration of: (i) the effect of any rate increases on residential and commercial consumers; (ii) the availability of other private or public funds, utility administered or otherwise, that may be available for energy efficiency or demand resources; and (iii) whether past programs have lowered the cost of electricity to residential and commercial consumers. In authorizing such programs, the department shall ensure that they are delivered in a cost-effective manner capturing all available efficiency opportunities, minimizing administrative costs to the fullest extent practicable and utilizing competitive procurement processes to the fullest extent practicable.
(b) The department may approve and fund gas energy efficiency programs proposed by gas distribution companies including, but not limited to, demand side management programs. Energy efficiency activities eligible for funding under this section shall include 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.