The Massachusetts Senate
Seal of the Commonwealth


Last Updated: Friday, January 11, 2008 2:56 PM


Text of amendments to the Senate Bill to generate renewable energy and efficiency now S2457

Clerk #1
ADOPTED

“Non-green” energy Facilities

Messrs. Creedon, Joyce, Timilty and Brown moved that the bill be amended by adding at the end of the bill the following new section:-

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


Redraft Clerk #2
ADOPTED

Long Term REC Contracts

Mr. Downing moved that the bill be amended in Section 75, in the first line of the second paragraph of said section, by striking out the words “10 to 15” and inserting in place thereof: “15 to 20”.


Clerk #3
ADOPTED

AMENDMENT TO ESTABLISH THE GREEN BUILDING PLAN FOR THE COMMONWEALTH COMMISSION

Mr. Panagiotakos and Ms. Chandler move to amend the bill, S. 2457, by inserting at the end thereof the following:

(a) Notwithstanding any general or special law to the contrary, The Green Building Plan for the Commonwealth Commission is established to examine the environmental and economic impact of establishing a green building plan for the Commonwealth. 

(b) The Green Building Plan for the Commonwealth Commission shall include following individuals or their appointees: the Commissioner of the Department of Energy Resources, the Director of Housing and Community Development, the Secretary of Environmental Affairs, the Secretary of Administration and Finance, an appointee of the President of the Senate,  an appointee of the Speaker of the House,  an appointee of the Minority leader of the Senate, an appointee of the Minority  leader of the House, the Lieutenant Governor, an appointee of Worcester Polytechnic Institute, an appointee of the Chancellor of the University of Massachusetts at Lowell, an appointee of the President of Massachusetts Institute of Technology, the director of the Massachusetts Technology Collaborative, an appointee of the Commissioner of the Department of Revenue, a representative of the Massachusetts Municipal Association, and a representative of the Boston Society of Architects.  The Lieutenant Governor shall chair the committee but shall have no vote except in case of a tie vote.

(c) The committee shall issue a report on its findings no later than December 31, 2008.


Redraft Clerk #4
ADOPTED

Technical Amendment

Mr. Panagiotakos moves that the bill, S. 2457, be amended by striking out section 1 and inserting in place thereof the following section:-

            “SECTION 1. (a) Section 9A of chapter 7 of the General Laws, as so appearing, is hereby amended by adding the following 4 paragraphs:-
When purchasing new motor vehicles, the commonwealth shall purchase hybrid or alternative fuel vehicles, to the maximum feasible extent consistent with the ability of said vehicles to perform their intended duties, at a rate of not less than 5 per cent annually for all new motor vehicle purchases in order 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 are hybrid or alternative fuel vehicles by the year 2018. The average fuel consumption, for the entire fleet of passenger vehicles owned or leased by the Commonwealth, except those vehicles used for emergency purposes, security purposes, and special services, shall be equal to or more efficient than the US Corporate Average Fuel Economy (CAFE) Standards as established by the National Highway Traffic Safety Administration (NHTSA) and the Environmental Protection Agency.

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

The division of capital asset management, in consultation with the division of energy resources, shall develop a system of protocols for the acquisition of alternative fuel vehicles and hybrids, including identifying the potential for acquisition of heavy, medium and light-duty vehicles, based on the anticipated mileage and usage of such vehicles, and the effectiveness of single fuel or dual fuel alternative fuel vehicles for the particular purpose identified.

The division of energy resources shall submit in writing to the secretary of administration and finance, the clerks of the senate and house of representatives and the joint committee on state administration and regulatory oversight an annual statement detailing the progress, as well as any additional information relevant to both the acquisition of hybrid or alternative fuel vehicles by the commonwealth and the acquisition of vehicles by the commonwealth whose average fuel consumption is equal to or more efficient than the US Corporate Average Fuel Economy (CAFE) Standards as established by the National Highway Traffic Safety Administration (NHTSA) and the Environmental Protection Agency

            (b) The operational services division, in consultation with the executive office of transportation, the secretary of administration and finance, the division of energy resources, the Massachusetts Bay Transportation Authority and regional transit authorities, shall study the feasibility of developing and implementing a system to facilitate the mass purchase of alternative fuel vehicles by the commonwealth and its political subdivisions. The study shall include, but not be limited to, the potential cost savings to be derived from the system, the cost of its administration, appropriate purchasers to participate in the system and the probability of its utilization by those purchasers.

The operational services division shall report the findings of the study, and its recommendations if any, together with drafts of legislation necessary to carry such recommendations into effect, by filing the same with the clerks of the senate and house of representatives not later then 1 year after the effective date of this act.”; and

By striking out SECTION 1A and inserting in place therof the following section:-
SECTION 1A.  Chapter 30 of the General Laws, as appearing in the 2004 Official Edition, is hereby amended by inserting after section 36A the following section:—
“Section 36B. The commissioner of administration shall establish and enforce regulations governing the fuel efficiency standards that all vehicles must meet.” ; and

in section 90, by striking out the figure “48” and inserting the following figure:- “47”
 


Clerk #5
ADOPTED

Liquefied Natural Gas Safety

Ms. Menard moves to amend the bill, (S 2457), by adding the following new section: -

Section 95. Notwithstanding any general or special law to the contrary, the Commonwealth of Massachusetts is hereby prohibited from issuing any permits to new liquefied natural gas plants that are to be located within 1mile of a school, hospital, or nursing home. The provisions of this act shall apply to all LNG import terminals constructed after January 1, 2007.


FURTHER 5.1
REJECTED

LNG FURTHER AMENDMENT

Mr. Galluccio moves to amend the amendment by Ms. Menard (Clerk #5) to the bill, (S. No. 2457), by striking out everything after the title and inserting in its place the following new section: -

Section 95.  Notwithstanding any general or special law to the contrary, the Commonwealth of Massachusetts is hereby prohibited from issuing any permits to new liquefied natural gas, oil, petroleum or fossil burning plants or facilities or storage, holding, transfer or handling facilities of any nature that are to be located within 1 mile of a school, hospital, or nursing home.  The provisions of this act shall apply to an LNG import terminal constructed after January 1, 2007 and to any expansion of an existing terminal, operation, plant, farm or storage, holding, transfer or handling facility of any nature.


Clerk #6
ADOPTED

AN AMENDMENT RELATIVE TO THE MASSACHUSETTS
MUNICIPAL WHOLESALE ELECTRIC COMPANY

Ms. Candaras moves that the bill be amended by adding the following new sections after Section 89 and all subsequent sections be numbered accordingly:

SECTION 90. Section 1 of chapter 775 of the acts of 1975 is hereby amended by striking out the definition of “electric power facilities” or “electric power facility”, as inserted by section 2 of chapter 129 of the acts of 1988, and inserting in place thereof the following 2 definitions:-

“Energy facilities” or “energy facility”, electric power facilities, electric power facility, or any system or facility, or any interest in, or right to the use of, services derived from these facilities, facility or system or any part of a facility or system, including any energy conservation system, system for the production of renewable energy, or alternative energy facility for the manufacture, generation, transmission, distribution, transformation, transportation, storage, purchase, sale, exchange or interchange or conservation of energy or any byproducts or ancillary products or services by any means whatsoever, including but not limited to vehicles, personal or real property and any facility for processing refuse, or other materials into fuel with or without other byproducts, or facilities and property for the acquisition, extraction, conversion, transportation, storage, reprocessing, or disposal of fuel and other material of any kind for any of these purposes, as necessary to carry out the purposes of this act.
“Energy”, electricity, electric power, electric capacity, electric energy, natural gas, liquified natural gas, LP air gas, propane air, synthetic natural gas, oil, steam, coal, water, wind, battery, or any byproducts, derivatives, services, ancillary products or ancillary services, including but not limited to reactive power/voltage control, loss compensation, scheduling and dispatch, load following, system protection service and energy imbalance service, emissions allowances, or the transmission, transportation, storage, purchase, sale, exchange or interchange of energy capacity, either electric or other, distribution, disposal, decommissioning thereof, or the transmission, transportation, , storage, disposal, decommissioning or distribution of any byproducts thereof.

SECTION 91.  Section 5 of said chapter 775 is hereby amended by striking out clauses (h) and (i) and inserting in place thereof the following clauses:-
(h)  to sell, lease, mortgage, exchange, transfer or otherwise dispose of, or to grant options for any such purposes with respect to any real or personal property or interest therein, with or without consideration and notwithstanding whether the real or personal property is needed by or useful to the corporation, all upon such terms and conditions as the corporation shall determine;
(i)  to pledge or assign any money, fees, charges, or other revenue of the agency, or any real or personal property and any proceeds derived by the corporation from the sale of energy or property, the purchase of any insurance or condemnation  awards;.

SECTION 92.  Said section 5 of said chapter 775 is hereby further amended by striking out clauses (k) to (p), inclusive, and inserting in place thereof the following clauses:-
(k)  to borrow money and issue its bonds as  provided in this act and to provide a pooled loan program on behalf of and for the benefit of its members, to make loans to its members and to enter into leases on behalf of its members, both as lessee or lessor;
(l)  to purchase energy at wholesale, including but not limited to all or a portion of the capacity and output of energy facilities and steam, whether or not produced by an electric power facility;

SECTION 93.  Clause (s) of said section 5 of said chapter 775 is hereby amended by striking out the word “fanctions” and inserting in place thereof the following word:-  functions.

SECTION 94.  Said section 5 of said chapter 775 is hereby further amended by striking out clause (t) and inserting in place thereof the following 3 clauses:-
(t)  to enter into contracts determined by the corporation to be necessary or for the prudent management of the corporation’s assets, funds, debts, or fuels, including without limitation, interest rate swaps, option contracts, future contracts, forward purchase contracts, hedging contracts, leases, or other risk management instruments; and
(u)  to exercise and perform all or a part of its powers and functions through 1 or more wholly-owned or partly-owned corporations or other entities; and
(v) to do all things necessary, convenient or desirable to carry out the purposes of this act or the powers expressly granted or necessarily implied in this act.

SECTION 95.  Said section 6 of chapter 775 is herby further amended by striking out subsections (b) and (c) and inserting in place thereof the following 3 subsections:-
(b)  Neither the obligations of the corporation nor the obligations of any member or non-member cities and towns or districts, authorities, or departments of the commonwealth or political subdivisions under the capacity and output contracts shall be included in computing the borrowing capacities of the cities and towns or districts, authorities, departments of the commonwealth or political subdivisions.  Such obligations of cities and towns having municipal electric departments established under said chapter 164 or a special act shall be treated as expenses of operating their electric plants and shall constitute special obligations of the cities and towns, payable solely from the revenues and other moneys derived by the cities and towns from their electric departments or systems, the liability of these cities and towns from other funds being limited to obligations undertaken by them to pay for the energy used by them.
(c)  A city or town shall be obligated to fix, revise, and collect fees and charges for energy and other services, facilities and commodities furnished or supplied through its electric department or systems at least sufficient to provide revenues adequate to meet its obligations under any contracts with the corporation and to pay any and all other amounts payable from or constituting a charge and lien upon such revenues, including amounts sufficient to pay the principal of and interest on all bonds issued by the city or town for energy-related purposes.
A city or town shall be obligated to fix, revise and collect fees and charges for energy and other services, facilities and commodities furnished or supplied through its electric department or system at least sufficient to provide revenues adequate to meet its obligations under any such output and capacity contract and to pay any and all other amounts payable from or constituting a charge and lien upon these revenues, including amounts sufficient to pay the principal of and interest on all bonds issued by the city or town for energy-related purposes.

SECTION 96.  Section 9 of said chapter 775 is hereby amended by striking out subsection (a) and inserting in place thereof the following subsection:-
(a)  The corporation may, subject to the approval of the department, borrow money by the issue of its bonds for any of its corporate purposes.  Bonds may be issued under this section as mortgage bonds, as general obligations of the corporation or as a special obligation payable solely from particular funds.  Without limiting the generality of the foregoing, these bonds may be issued for project costs, prepayment of fuel, transmission or transportation of fuel, or the corporation’s share of project costs of energy facilities or long-term purchases of rights to use energy facilities which may include interest before and during the carrying out of any project and for a reasonable period after that time, prepayments under contracts for the purchase of energy, or services related thereto, stranded investment costs, early termination costs of any energy project, decommissioning costs,  reserves for debt service or other capital or current expenses that may be required by a trust agreement or resolution securing bonds, and all other expenses incidental to the determination of the feasibility of any project or to carrying out the project or to placing the project in operation.

SECTION 97.  Subsection (a) of section 10 of said chapter 775 is hereby amended by striking out the first 2 sentences and inserting in place thereof the following 2 sentences:- In the discretion of the corporation, but subject to approval by the department, any bonds issued under this act may be secured by a resolution of the board or by a trust agreement between the corporation and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the commonwealth, and this trust agreement shall be in a form and executed in a manner that may be determined by the corporation.  The trust agreement or resolution may pledge or assign, in whole or in part, the revenues and other moneys held or to be received by the corporation, including the revenues from any facilities already existing when the pledge or assignment is made, and any contract or other rights to receive the same, whether then existing or later coming into existence and whether then held or later acquired by the corporation, and the proceeds thereof.

SECTION 98.  Subsection (b) of said section 10 of said chapter 775 is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:- The corporation is authorized to fix, revise, and collect fees and charges for energy and other services, facilities, and commodities furnished or supplied by it, but no costs, losses or benefits of any such endeavor shall be allocated to any other endeavor unrelated to it.


Clerk # 7
ADOPTED - 38 YEAS to 0 NAYS (see Senate Roll Call, No. 160)

Renewable Energy Amendment relative to Companies subject to Mergers provision

Mr. Petruccelli moves to amend Senate 2457 by striking out Section 60 and inserting in place thereof the following:
            Section 60.  Said Chapter 164 is hereby further amended by striking out section 96, as appearing in the 2006 Official Edition, and inserting in place thereof the following section:        

Section 96.  Electric and gas companies subject to this chapter and their holding companies may, notwithstanding any other 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, provided that such purchase, sale, consolidation or merger, and the terms thereof, have been approved, at meetings called therefor, by vote of the holders of at least two thirds of each class of stock outstanding and entitled to vote on the question of each of the contracting companies, and that the department, after notice and a public hearing, has determined that such purchase and sale or consolidation or merger, and the terms thereof, are consistent with the public interest. The purchase or sale of properties by, or the consolidation or merger of, wholesale generation companies shall not require departmental approval. The merger or consolidation of holding companies that has been filed and approved by the Federal Energy Regulatory Commission prior to the effective date of this section shall not be subject to the requirements of this section.

Clerk # 8
ADOPTED

Renewable Energy Amendment relative to Companies subject to Audits provision

Mr. Petruccelli moves to amend Senate 2457 by striking out Section 7 and inserting in place thereof the following:
Section 7.  Chapter 25 of the General Laws is hereby amended by inserting after section 5D the following section:-
Section 5E.  The department shall periodically audit all gas and electric companies subject to its jurisdiction, including, but not limited to, review of the following documents: (i) all financial statements, the balance sheet, the income statement, the statement of cash flows, the statement of retained earnings, the notes to the financial statements and the information in the annual return to the department; (ii) documents concerning the  reconciling mechanisms related to rates, prices or charges, merger, acquisition or consolidation related costs and savings 3 years following the merger, acquisition or consolidation; and, (iii) documents concerning service quality measure statistics and the service quality performance at least every 3 years or whenever service quality penalties equal or exceed 50 percent of the maximum.  Upon written complaint of the attorney general requesting an independent audit of any company subject to the department’s jurisdiction, the department shall commence a proceeding within 30 days of receipt of the complaint for the purpose of ordering the requested audit in a reasonable time.  The results of any audit so ordered shall be filed promptly with the department and each audit shall be paid by the company that is the subject of the audit.


Clerk # 9

WITHDRAWN


CLERK #10

WITHDRAWN


CLERK #11

WITHDRAWN


CLERK #12
REJECTED

Rate Payer Amendment

Ms. Menard moves to amend the bill, (S 2457), be amended by striking the first two paragraphs in SECTION 3 and inserting in place thereof the following: --
SECTION 3.  Chapter 12 of the General Laws is hereby amended by striking out section 11E, as appearing in the 2006 Official Edition, and inserting in place thereof the following section: -
Section 11E. (a)  The attorney general may participate, appear and intervene in any regulatory or judicial proceedings, federal or state, in which the interests of ratepayers in the Commonwealth may be involved, including, but not limited to, a matter affecting utility services rendered or involving the rates, charges, prices, tariffs or practices of an electric, gas, generator, transmission, telephone, telegraph, or voice over internet protocol company doing business in the commonwealth.  The attorney general shall have standing to intervene in all proceedings before the department of public utilities and department of telecommunications and cable.


CLERK #13
REJECTED

Public service corporations

Messrs. Creedon, Joyce and Timilty move to amend the bill, Senate 2457, by adding at the end of the bill the following new section:-

SECTION___.  Section 3 of Chapter 40A of the General Laws, as appearing in the 2006 Official Edition, is hereby amended, in line 60, by inserting after the word “public”, the following new language:- ;provided, further, that for the purpose of this section, an energy facility, electric generating facility or power plant fueled, in whole or in part, by coal, oil, natural gas or nuclear power shall not be considered a public service corporation.

CLERK #14
REJECTED

Relative to Alternative Fuels

Messrs. Tarr, Tisei, Knapik, Hedlund and Brown move to amend the bill (S. 2457) by adding at the end the following additional section:-

SECTION 95.

SECTION 1. Terms used in sections 2 and 3 and sections 14 to 21, inclusive, shall have the meanings assigned to them in section 3 of chapter 25A of the General Laws.

SECTION 1A. To provide for supplementing certain items in the general appropriation act and other appropriation acts for fiscal year 2006, the sum set forth in section 2A is hereby appropriated from the General Fund unless specifically designated otherwise in this act or in said appropriation acts, for the several purposes and subject to the conditions specified in this act or in said appropriation acts, and subject to the laws regulating the disbursement of public funds for the fiscal year ending June 30, 2006. The sum appropriated in said section 2A shall be in addition to any amounts previously appropriated and made available for the purposes of that item.

SECTION 2A. 2030-1001 For the purchase and repair of office of environmental law enforcement motor vehicles; provided, that not less than 20 per cent of new motor vehicle purchases shall be hybrid or alternative fuel vehicles; prior appropriation continued.......................$2,500,000.

SECTION 21/2. To provide funding for the Energy Independence Grant Fund, for the purpose of encouraging the purchase, lease, aftermarket conversion and 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, school districts and regional transit authorities. The sums set forth in section 3 shall be distributed pursuant to a grant program developed and administered by the division of energy resources. The development of the plan shall be conducted in consultation with regional transit authorities established pursuant to chapter 161B of the General Laws. The grant program shall facilitate the development of an alternative fuel infrastructure. The sums set forth in section 3, for the several purposes and subject to the conditions specified in this act, are hereby made available subject to the laws regulating the disbursement of public funds and approval thereof.

SECTION 3. DIVISION OF ENERGY RESOURCES.
7006-1003 For 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, and for financial assistance to cities and towns, school districts and regional transit authorities for the acquisition of alternative fuel vehicles and hybrids with a minimum useful life of 3 years; provided, that the commonwealth or a regional transit authority may enter into agreements or contracts with providers and distributors of alternative fuels necessary to carry out the purposes of this act . 10,000,000.

SECTION 4. To meet a portion of the expenditures necessary in carrying out section 3, 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 General Fund. Bonds and interest thereon issued under this section shall be general obligations of the commonwealth; provided, however, that any bonds issued by the state treasurer under 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 4A. Chapter 21A of the General Laws is hereby amended by adding the following section:-
Section 3F. The commissioner shall annually, on or before November 15, publish a list of vehicles sold within the commonwealth which are eligible to receive an exemption from certain percentages of the sales tax and the percentage reduction in the sales tax assessed under section 2 of chapter 64H to which they shall be entitled in the following taxable year.
The commissioner shall establish a list and provide a schedule of sales tax exemptions for vehicles based upon their fuel mileage ratings as determined by the United States Environmental Protection Agency, based on a formula annually updated which reflects: (a) a vehicle's mileage relative to other vehicles within its passenger seating class; and (b) the percentage of the vehicle that is American-made.
The commissioner shall provide exemptions for the following classes of vehicles: 2 and 4-passenger vehicles, 5-passenger vehicles and vehicles that seat 6 or more passengers.
The commissioner shall design the list so that no vehicle which is less than 60 percent as efficient, for 2 to 4 and 5-passenger vehicles, and 70 percent as efficient, for 6-passenger and more vehicles, as the best vehicle in its respective class receives the sales tax exemption. The commissioner may, after issuing a draft determination and holding a public hearing, raise the level below which a vehicle shall not qualify for benefits.
The list shall be made available for public comment not later than November 1 of each year and the commissioner shall determine what shall be included on the final list. The final list shall be distributed to boards of assessors and tax collectors within each municipality.

SECTION 5. Section 3 of chapter 25A of the General Laws, as appearing in the 2004 Official Edition, is hereby amended by inserting in their appropriate alphabetical sequence the following definitions:
“Aftermarket conversion”, a converted vehicle originally designed to operate on gasoline that has been altered to run on an alternative fuel exclusively or in combination with gasoline.
“Alternative fuel refueling station”, any platform that provides for the delivery of alternative fuels.
“Alternative fuel vehicle”, a vehicle powered by alternative fuel. An alternative fuel vehicle shall have the following attributes:
(1) the capability of operating only on an alternative fuel;
(2) original use commencing with the taxpayer; and
(3) acquisition by the taxpayer for use or lease, but not for resale.
“Alternative fuels”, biodiesel, electricity, ethanol, hydrogen, methanol, natural gas and propane.
“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 per cent neat biodiesel and 80 per cent 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 per cent ethanol and 15 per cent gasoline, E85, shall be considered an alternative.
“Heavy duty vehicle”, a vehicle with a gross vehicle weight rating, GVWR, equal to or greater than 40,001 pounds GVWR.
“Hybrid vehicle”, (1) a vehicle which draws propulsion energy from onboard sources of stored energy which are both: (i) an internal combustion or heat engine using combustible fuel; and (ii) a rechargeable energy storage system; (2) a vehicle which, in the case of a passenger automobile, medium duty passenger vehicle or light truck: (i) for 2002 and later model vehicles, has received a certificate of conformity under the Clean Air Act and meets or exceeds the equivalent qualifying California low emission vehicle standard under section 243(e)(2) of the Clean Air Act for that make and model year; (ii) for 2004 and later model vehicles, has received a certificate that the vehicle meets or exceeds the Bin 5 Tier II emission level established in regulations prescribed by the administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act for that make and model year vehicle; and (iii) and achieves an increase of 10 per cent fuel efficiency as compared to the average vehicle of its class as defined by the federal Environmental Protection Agency.
“Hydrogen”, a fuel which is in a gaseous state at atmospheric pressure and ambient temperatures containing low levels of carbon monoxide and carbon dioxide for use in combustion engines and fuel cell electric vehicles.
“Light duty vehicle”, a vehicle with a gross vehicle weight rating, GVWR, of 0 to 10,000 pounds.
“Medium duty vehicle,” a vehicle with a gross vehicle weight rating, GVWR, of 10,001 to 40,000 pounds.
“Methanol”, a wood alcohol used as an alternative fuel in flexible fuel vehicles that run on M85, a blend of 85 per cent methanol and 15 per cent gasoline.
“Natural gas”, applications as stored onboard a vehicle as compressed natural gas, CNG, at 3,000 or 3,600 pounds per square inch or as liquefied natural gas, LNG, at typically 20 to 150 pounds per square inch.
“Propane” liquefied petroleum gas, LPG.
“Regional transit authority”, as established pursuant to chapter 161 and chapter 161B.

SECTION 6. Section 11B of chapter 25A of the General Laws, as so appearing, is hereby amended by adding the following 4 paragraphs:-
When purchasing new motor vehicles, the commonwealth shall purchase hybrid or alternative fuel vehicles to the maximum feasible extent at a rate of not less than 5 per cent annually for all new motor vehicle purchases in order 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 are hybrid or alternative fuel 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 a hybrid or alternative fuel vehicle that will feasibly achieve the intended use designated by the requesting agency.
The division shall develop a system of protocols for 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 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 shall submit in writing to the secretary of administration and finance, the clerks of the senate and house of representatives and the joint committee on state administration and regulatory oversight an annual statement detailing the progress, as well as any additional information relevant to the acquisition of hybrid or alternative fuel vehicles by the commonwealth.

SECTION 7. Said chapter 25A is hereby further amended by inserting after section 11H the following 2 sections:-
Section 11I. There shall be established and set up on the books of the Commonwealth an Energy Independence Grant Fund to be used, subject to appropriation for the purpose of encouraging the purchase, lease, aftermarket conversion and use of hybrid and alternative fuel vehicles, including heavy, medium and light duty vehicles that use either a single fuel or dual fuels, by cities and towns, school districts and regional transit authorities. The grants may be used for the purpose of matching federal grants. In addition, the grants may be expended pursuant to cooperative purchasing agreements with other entities. Funds expended shall, to the extent possible, maximize reimbursement from federal or other sources. The fund shall consist of any appropriations, bond proceeds or other monies authorized by the general court and specifically designated to be credited to it. The fund shall encourage, support and foster the development of hybrid and alternative fuel vehicles in order to promote increased autonomy from fossil fuels, to mitigate the fiscal impact of the high cost of fuel on cities and towns and to provide environmental benefits through the reduction of carbon dioxide and carbon monoxide emissions.
Section 11J. (a) The division shall receive applications for grants from the fund from cities and towns, school districts and regional transit authorities and award grants to assist any of them in the purchase or lease of hybrid and alternative fuel vehicles or for the aftermarket conversion of conventional fuel vehicles for municipal or regional transit purposes. The division shall develop a scoring system to serve as the basis for the evaluation and the determination of awarding grants pursuant to this section. The scoring system shall determine the maximum grant amount available for a specific application. The scoring system shall be based upon the type of vehicle being acquired or retrofitted, the cost, the type of use anticipated, fuel economy, range and the anticipated useful life of a vehicle and shall employ the federal standards set forth in the Corporate Average Fuel Economy provision of the Energy Policy Conservation Act of 1975 and any other applicable federal standards. The scoring system shall designate the amount of assistance available to a municipality, school district or regional transit authority based upon those factors and the division may award grants up to that amount commensurate with said factors. In awarding grants, the division shall give consideration to applications from cities and towns, school districts and regional transit authorities from diverse geographic regions. A city or town, school district or regional transit authority which is awarded a grant under this program shall submit an annual report to the division identifying and detailing: (1) the type of the hybrid or alternative fuel vehicle purchased, leased or converted; (2) the usage and any cost savings to the city or town, school district or regional transit authority associated with the reduction of use of standard gasoline from the use of the vehicle; and (3) any environmental benefits from, but not limited to, the reduction in emissions.
(b) A city or town, school district or regional transit authority shall apply for a fund grant in the manner specified by the commissioner.
(c) The division shall promulgate policies, rules and regulations to implement this section. The commissioner shall file the 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 any policies, rules and regulations.
(d) Not less than $100,000 shall be expended from the fund for the Massachusetts Maritime Academy for 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 education. The academy shall use the funds to develop a hydrogen-based, fuel cell powered tug boat.

SECTION 8. Paragraph (a) of Part B of section 3 of chapter 62 of the General Laws, as appearing in the 2004 Official Edition, is hereby amended by inserting after subparagraph 9 the following subparagraph:-
(91/2) For taxable years beginning on or after January 1, 2006, in the case of an individual who purchases a hybrid or alternative fuel vehicle, as those terms are defined in section 3 of chapter 25A, there shall be a deduction in the amount of $2,000 for a single person, for a person who qualifies as a head of household under section 2(b) of the Code or for a husband and wife in the taxable year in which the purchase is made. The department of revenue may require a proof of purchase to be submitted with a return in order to be eligible for the deduction.
SECTION 9. Section 31A of chapter 63 of the General Laws, as so appearing, is hereby amended by inserting after the word “fishing”, in lines 4 and 24, the following words:- or a corporation primarily engaged in the development, construction or operation of an alternative fuel refueling station, and the development of alternative fuels, as those terms are defined in section 3 of chapter 25A.

SECTION 10. Said chapter 63 is hereby further amended by inserting after section 31C the following 2 sections:-
Section 31C1/2. A 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, as that term is defined in section 3 of chapter 25A, of a conventional fuel vehicle to an alternative fuel vehicle, as that term is defined in said section 3 of said chapter 25A, and maintains the alternative fuel vehicle, and which corporation is a domestic or foreign corporation under subparagraph 1 or 2 of section 30, may receive a credit against its excise due under this chapter. The amount of the credit shall be equal to 50 per cent of the difference between the purchase price or the cost of the aftermarket conversion of the alternative fuel vehicle and the listed purchase price of a gasoline-powered vehicle of like quality during the taxable year of the purchase. A corporation which does not maintain at least 10 per cent of its fleet as alternative fuel vehicles or hybrid vehicles, as those terms are defined in said section 3 of said chapter 25A, shall not be eligible for the credit.
Section 31C3/4. A 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, as that term is defined in section 3 of chapter 25A, of a conventional fuel vehicle to an alternative fuel vehicle, as that term is defined in section 3 of chapter 25A, and maintains the alternative fuel vehicle, and which corporation is a domestic or foreign corporation under subparagraph 1 or 2 of section 30, may receive a credit against its excise due under this chapter. The amount of the credit shall be equal to fifty per cent of the difference between the purchase price or the cost of the aftermarket conversion of the alternative fuel vehicle and the listed purchase price of a gasoline-powered vehicle of like quality during the taxable year of the purchase, as hereinafter provided. A corporation which does not maintain at least 10 per cent of its fleet as alternative fuel vehicles or hybrid vehicles, as those terms are defined in said section 3 of said chapter 25A, shall not be eligible for the credit.

SECTION 11. Section 4 of chapter 64E of the General Laws, as appearing in the 2004 Official Edition, is hereby amended by striking out, in lines 9 and 10, the words “19.1 per cent of the average price computed to the nearest tenth of one per cent per gallon” and inserting in place thereof the following words:- 25 per cent less than the rate on fuel set forth in chapter 64A.

SECTION 12. Section 2 of chapter 90 of the General Laws, as so appearing, is hereby amended by inserting after the tenth paragraph the following paragraph:-
Upon application, the registrar shall furnish an energy independence 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 hybrid or alternative fuel vehicle, as those terms are defined in section 3 of chapter 25A, and who meets the requirements of this paragraph. The placard or sticker shall be of a size and design to be determined by the registrar and shall be numbered and contain identifying features and specifications as the registrar considers appropriate. The authorized user shall permanently affix the placard or sticker to the vehicle so as to be readily visible in accordance with instructions provided by the registrar from time to time. The registrar may impose a reasonable fee for the costs associated with the processing of applications and the issuance of placards or stickers.
The Massachusetts Turnpike Authority shall make available to all holders of placards Fast Lane toll transponders and shall waive the initial application fee associated with the acquisition of the transponder. A city or town may, by by-law or ordinance, grant municipal parking at a reduced rate or without charge to holders of the energy independence placard or sticker.

SECTION 12A. Section 7A of said chapter 90, as so appearing, is hereby amended by inserting after the fifth paragraph the following paragraph:-
The emissions and maintenance inspection programs provided for in this section shall not apply to a qualified hybrid or alternative fuel vehicle or clean alternative fuel if the vehicle obtains a rating from the United States Environmental Protection Agency of at least 50 miles per gallon during city fuel economy tests unless remote sensing devices indicate the hybrid or alternative fuel vehicle may not meet current emissions standards. The commissioner shall promulgate such regulations as may be required to implement this exemption.

SECTION 12B. Section 142M of chapter 111 of the General Laws, as so appearing, is hereby amended by inserting before the definition of “Commissioner” the following definition:-
“Clean alternative fuel vehicle” shall mean natural gas, hydrogen or electricity when used as a motor vehicle fuel or propane when used as a motor vehicle fuel if such a vehicle meets the federal fleet emissions standards under the federal Clean Air Act or any emissions standards adopted by the commissioner of environmental protection as part of the commonwealth's implementation plan under the Clean Air Act.

SECTION 13. (a) There shall be established at the University of Massachusetts, the Commonwealth Alternative Fuels Institute, for the purpose of researching and developing hybrid and alternative fuel vehicles and alternative fuels and any related technology and components involved in the production, conversion, operation and maintenance of hybrid and alternative fuel vehicles and hybrids.
(b) The Institute shall have among its primary goals the development and commercialization of the vehicles, fuels, equipment and technology for the purposes of deriving environmental benefits, reducing dependence on conventional fossil fuels and facilitating economic growth.
(c) The Institute shall be governed by policies and operating procedures 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.
(d) Subject to appropriation, the Institute shall engage in 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 this act.
(e) There shall be an advisory board of the Institute, comprised of: the president of the University of Massachusetts or his designee, who shall also serve as the chairperson; 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; 3 members to be appointed by the governor, 1 of whom shall represent the business community, 1 of whom shall have expertise in environmental issues and 1 of whom shall represent consumers; 2 members appointed by the president of the university, each having expertise in relevant science and technology; 1 member of the senate and 1 member of the house of representatives. Each appointed member shall serve for a term of 3 years, and shall be eligible to be appointed for consecutive terms.
(f) The Institute shall undertake a comprehensive industry needs assessment, in consultation with the advisory board, of businesses engaged in the research, development or production of alternative fuel vehicles and hybrids, alternative fuels and related components and technologies. The assessment, which shall be completed not later than 6 months after the effective date of this act, shall include, but not be limited to the following:
(1) the identities of industry participants and a characterization of their business activities involving hybrid and alternative fuel vehicles and related technologies and components;
(2) current or projected impediments to the growth and development of industry participants;
(3) feasible means by which state government, including the commonwealth's institutions of higher education, may assist industry participants;
(4) potential collaborative efforts between the commonwealth and industry participants, including industry-sponsored research and development and the securing of public and private research funds;
(5) potential sources and uses of federal government funding for research and development including, but not limited to, funding opportunities contained in any federal renewable or alternative energy legislation.

SECTION 14. The Massachusetts Turnpike Authority shall develop a plan, in consultation with the executive office of transportation, for the availability of alternative fuel at each fueling facility or service terminal on the Massachusetts Turnpike. The plan shall provide for availability not later than January 1, 2012. Should the authority determine that facilitating the availability is not feasible, it shall report the findings, together with the reasons therefor, to the house and senate committees on ways and means and the joint committee on transportation not later than January 31, 2006.

SECTION 15. (a) The commissioner of energy resources, in consultation with the secretary of administration and finance, the secretary of transportation, the general manager of the Massachusetts Bay Transportation Authority, a representative of the regional transit authorities, the secretary of economic affairs, the secretary of environmental affairs, and the operation services division, shall develop a statewide master plan for the advancement of hybrid and alternative fuel vehicles and related technology.
(b) The plan shall encompass a 10-year period beginning in 2007, 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.
(c) The plan may establish goals for areas such as the purchase and use of hybrid and 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 or distribution of alternative fuels.
(d) In addition, the plan shall identify strategies and corresponding methods of achieving its identified goals together with necessary administration and legislative actions. The plan shall be reported to the clerks of the senate and house of representatives not later than 18 months following the effective date of this act.

SECTION 16. The secretary of administration and finance through the division of operational services, in consultation with the commissioner of energy resources, shall enter into contracts and agreements with the manufacturers or providers of hybrid or alternative fuel vehicles as may be necessary for the purchase or lease of the vehicles, or aftermarket conversion equipment or technologies in order to comply with this act.

SECTION 17. The commissioner of energy resources shall annually develop a directory of alternative fuel vehicles, equipment and services available for purchase by public entities.
The directory shall include vehicles available for heavy, medium and light duty usage, as well as the spectrum of alternative fuels available, as defined in section 3 of chapter 25A of the General Laws, and the appropriate applications, estimated costs, and positive and negative aspects of each vehicle and fuel. To the extent possible, the directory shall contain photographs of the available vehicles.
The 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 hybrid and alternative fuel vehicles. The catalog shall be made available to nongovernment entities but the commissioner may impose a reasonable fee consistent with the cost of reproducing the catalog.

SECTION 18. The secretary of economic affairs, in consultation with the executive office of transportation and the division of energy resources, shall evaluate the feasibility and desirability of any methods which could be utilized by the commonwealth in order to provide incentive for or incubate the production of alternative fuel vehicles and equipment within its borders. The evaluation shall include, but not be limited to, the potential economic benefits of the production, including job growth, and the potential environmental benefits associated with the production and increased distribution of alternative fuel vehicles and equipment in the commonwealth.
The secretary shall report the findings of the evaluation, and its recommendations, if any, together with drafts of legislation necessary to carry such recommendations into effect, to the clerks of the senate and house of representatives not later than 1 year after the effective date of this act.

SECTION 19. Not later than December 31 of each year, the Massachusetts Bay Transportation Authority shall file with the clerks of the senate and house of representatives and the joint committee on economic development and emerging technologies a report indicating its utilization of hybrid and alternative fuel vehicles and related technologies. The report shall include, but not be limited to, the increased costs or savings, if any, associated with the use of the vehicles, the amount of fuel used and conserved by the use of the vehicles, the emissions rates for the vehicles and other vehicles in the fleet and the positive and negative factors, if any, associated with their use.
The report shall identify any impediments to the use of the vehicles and technologies and shall include any legislative recommendations to address those impediments.

SECTION 20. The operational services division, in consultation with the executive office of transportation, the secretary of administration and finance, the division of energy resources, the Massachusetts Bay Transportation Authority and regional transit authorities, shall study the feasibility of developing and implementing a system to facilitate the mass purchase of alternative fuel vehicles by the commonwealth and its political subdivisions. The study shall include, but not be limited to, the potential cost savings to be derived from the system, the cost of its administration, appropriate purchasers to participate in the system and the probability of its utilization by those purchasers.
The operational services division shall report the findings of the study, and its recommendations if any, together with drafts of legislation necessary to carry such recommendations into effect, by filing the same with the clerks of the senate and house of representatives not later then 1 year after the effective date of this act.

SECTION 20A. There shall be a special commission to report on the expanded use of biodiesel fuel in the commonwealth. The commission shall consist of 1 member to be appointed by the department of environmental protection; 1 member to be appointed by the department of telecommunications and energy; 1 member to be appointed by the division of energy resources; 2 members to be appointed by the senate president; 1 member to be appointed by the senate minority leader; 2 members to be appointed by the speaker of the house of representatives; 1 member to be appointed by the minority leader of the house of representatives; and members to be appointed by the governor to provide appropriate consumer, environmental, and industry representation. The commission shall submit a report and recommendations to the secretary of environmental affairs; office of commonwealth development; the joint committee on telecommunications, utilities, and energy; the joint committee on environment, natural resources and agriculture; the joint committee on state administration and regulatory oversight; and the house and senate clerks by June 30, 2006. The commission shall conduct a study of the current impediments in state and federal law and regulation to the certification, licensure and availability for sale in the commonwealth of highly efficient diesel passenger vehicles under the California LEV II standards and potential methods to address such impediments. It shall also examine barriers and opportunities for widespread use of biodiesel and low-sulfur biodiesel fuels for motor vehicles, heating, and other appropriate uses in the commonwealth. From this study the commission shall submit a plan for the expanded use of biodiesel and low-sulfur biodiesel fuels in the commonwealth and proposals for new regulations and laws to expand the use of biodiesel where feasible and appropriate.

SECTION 21. Hybrid and alternative fuel vehicles which display a special identifying placard issued under section 12 may travel in high occupancy vehicle or HOV lanes. This section shall expire 3 years following the effective date of this act.

SECTION 22. Section 8 shall be in effect for taxable years 2006 to 2010, inclusive.

SECTION 23. Section 10 shall be in effect for taxable years 2005 to 2015, inclusive.

SECTION 24. Section 11 shall be in effect for taxable years 2005 to 2010, inclusive.

Clerk # 15
REJECTED - 5 YEAS to 32 NAYS (see Senate Roll Call, No. 161)

Relative to Sales Tax Exemptions for Alternative Fuel Vehicles

Messrs. Tarr, Tisei, Knapik, Hedlund and Brown move to amend the bill (S. 2457) by adding at the end the following additional section:-
SECTION 95. Chapter 21A of the General Laws is hereby amended by adding the following section:-
Section 3F. The commissioner shall annually, on or before November 15, publish a list of vehicles sold within the commonwealth which are eligible to receive an exemption from certain percentages of the sales tax and the percentage reduction in the sales tax assessed under section 2 of chapter 64H to which they shall be entitled in the following taxable year.
The commissioner shall establish a list and provide a schedule of sales tax exemptions for vehicles based upon their fuel mileage ratings as determined by the United States Environmental Protection Agency, based on a formula annually updated which reflects: (a) a vehicle's mileage relative to other vehicles within its passenger seating class; and (b) the percentage of the vehicle that is American-made.
The commissioner shall provide exemptions for the following classes of vehicles: 2 and 4-passenger vehicles, 5-passenger vehicles and vehicles that seat 6 or more passengers.
The commissioner shall design the list so that no vehicle which is less than 60 percent as efficient, for 2 to 4 and 5-passenger vehicles, and 70 percent as efficient, for 6-passenger and more vehicles, as the best vehicle in its respective class receives the sales tax exemption. The commissioner may, after issuing a draft determination and holding a public hearing, raise the level below which a vehicle shall not qualify for benefits.
The list shall be made available for public comment not later than November 1 of each year and the commissioner shall determine what shall be included on the final list. The final list shall be distributed to boards of assessors and tax collectors within each municipality.


Redraft Clerk # 16
ADOPTED

Relative to Alternative Fuel Definitions

Messrs. Tarr, Tisei, Knapik, Hedlund, and Brown move to amend the bill (S. 2457) by adding at the end the following additional section:-
            SECTION 95.
Section 1 of chapter 90 of the General Laws, as appearing in the 2004 Official Edition, is hereby amended by inserting in their appropriate alphabetical sequence the following definitions:
"Alternative fuel vehicle", a vehicle powered by alternative fuel. An alternative fuel vehicle shall have the following attributes:
(1) the capability of operating only on an alternative fuel;
(2) original use commencing with the taxpayer;
(3) acquisition by the taxpayer for use or lease, but not for resale;
(4) use of alternative fuel for a significant portion of the total fuel used for propulsion energy for the vehicle.
"Alternative fuels", an energy source used to power a vehicle that does not qualify as fuel under the definition of fuel under Section 1 of Chapter 64A.
"Hybrid vehicle", (1) a vehicle which draws propulsion energy from onboard sources of stored energy which are both: (i) an internal combustion or heat engine using combustible fuel; and (ii) a rechargeable energy storage system; (2) a vehicle which, in the case of a passenger automobile, medium duty passenger vehicle or light truck: (i) for 2002 and later model vehicles, has received a certificate of conformity under the Clean Air Act and meets or exceeds the equivalent qualifying California low emission vehicle standard under section 243(e)(2) of the Clean Air Act for that make and model year; (ii) for 2004 and later model vehicles, has received a certificate that the vehicle meets or exceeds the Bin 5 Tier II emission level established in regulations prescribed by the administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act for that make and model year vehicle; and (iii) and achieves an increase of 10 per cent fuel efficiency as compared to the average vehicle of its class as defined by the federal Environmental Protection Agency


Redraft Clerk #17
ADOPTED

State Purchase of Alternative Fuel Vehicles

Messrs. Tarr, Tisei, Knapik, Hedlund and Brown move to amend Section 1 of the bill (S. 2457) by striking it in its entirety and replacing it with the following section:-
            SECTION 1. (a) Section 9A of chapter 7 of the General Laws, as so appearing, is hereby amended by adding the following 4 paragraphs:-
When purchasing new motor vehicles, the commonwealth shall purchase hybrid or alternative fuel vehicles, to the maximum feasible extent consistent with the ability of said vehicles to perform their intended duties, at a rate of not less than 5 per cent annually for all new motor vehicle purchases in order 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 are hybrid or alternative fuel vehicles by the year 2018. All vehicles purchased by the commonwealth shall have above-average fuel efficiency for a new vehicle within its size class as determined by the federal government, except where no qualifying vehicle is able to perform the intended duties of the vehicle.
The division of operational services shall forward to the division of energy resources all requests for motor vehicle acquisitions by agencies of the commonwealth. The division of energy resources shall thereafter report to the division of operational services regarding the availability of a hybrid or alternative fuel vehicle that will feasibly achieve the intended use designated by the requesting agency.
The division of capital asset management, in consultation with the division of energy resources, shall develop a system of protocols for the acquisition of alternative fuel vehicles and hybrids, including identifying the potential for acquisition of heavy, medium and light-duty vehicles, based on the anticipated mileage and usage of such vehicles, and the effectiveness of single fuel or dual fuel alternative fuel vehicles for the particular purpose identified.
The division of energy resources shall submit in writing to the secretary of administration and finance, the clerks of the senate and house of representatives and the joint committee on state administration and regulatory oversight an annual statement detailing the progress, as well as any additional information relevant to both the acquisition of hybrid or alternative fuel vehicles by the commonwealth and the acquisition of vehicles with above-average fuel efficiency by the commonwealth.
            (b) The operational services division, in consultation with the executive office of transportation, the secretary of administration and finance, the division of energy resources, the Massachusetts Bay Transportation Authority and regional transit authorities, shall study the feasibility of developing and implementing a system to facilitate the mass purchase of alternative fuel vehicles by the commonwealth and its political subdivisions. The study shall include, but not be limited to, the potential cost savings to be derived from the system, the cost of its administration, appropriate purchasers to participate in the system and the probability of its utilization by those purchasers.
The operational services division shall report the findings of the study, and its recommendations if any, together with drafts of legislation necessary to carry such recommendations into effect, by filing the same with the clerks of the senate and house of representatives not later then 1 year after the effective date of this act.


CLERK #18
REJECTED

Establishing an Energy Independence Grant Fund

Messrs. Tarr, Tisei, Knapik, Hedlund and Brown move to amend the bill (S. 2457) by adding at the end the following additional section:-
            SECTION 95.  Chapter 25A is hereby further amended by inserting after section 11H the following 2 sections:-
Section 11I. There shall be established and set up on the books of the Commonwealth an Energy Independence Grant Fund to be used, subject to appropriation for the purpose of encouraging the purchase, lease, aftermarket conversion and use of hybrid and alternative fuel vehicles, including heavy, medium and light duty vehicles that use either a single fuel or dual fuels, by cities and towns, school districts and regional transit authorities. The grants may be used for the purpose of matching federal grants. In addition, the grants may be expended pursuant to cooperative purchasing agreements with other entities. Funds expended shall, to the extent possible, maximize reimbursement from federal or other sources. The fund shall consist of any appropriations, bond proceeds or other monies authorized by the general court and specifically designated to be credited to it. The fund shall encourage, support and foster the development of hybrid and alternative fuel vehicles in order to promote increased autonomy from fossil fuels, to mitigate the fiscal impact of the high cost of fuel on cities and towns and to provide environmental benefits through the reduction of carbon dioxide and carbon monoxide emissions.
Section 11J. (a) The division shall receive applications for grants from the fund from cities and towns, school districts and regional transit authorities and award grants to assist any of them in the purchase or lease of hybrid and alternative fuel vehicles or for the aftermarket conversion of conventional fuel vehicles for municipal or regional transit purposes. The division shall develop a scoring system to serve as the basis for the evaluation and the determination of awarding grants pursuant to this section. The scoring system shall determine the maximum grant amount available for a specific application. The scoring system shall be based upon the type of vehicle being acquired or retrofitted, the cost, the type of use anticipated, fuel economy, range and the anticipated useful life of a vehicle and shall employ the federal standards set forth in the Corporate Average Fuel Economy provision of the Energy Policy Conservation Act of 1975 and any other applicable federal standards. The scoring system shall designate the amount of assistance available to a municipality, school district or regional transit authority based upon those factors and the division may award grants up to that amount commensurate with said factors. In awarding grants, the division shall give consideration to applications from cities and towns, school districts and regional transit authorities from diverse geographic regions. A city or town, school district or regional transit authority which is awarded a grant under this program shall submit an annual report to the division identifying and detailing: (1) the type of the hybrid or alternative fuel vehicle purchased, leased or converted; (2) the usage and any cost savings to the city or town, school district or regional transit authority associated with the reduction of use of standard gasoline from the use of the vehicle; and (3) any environmental benefits from, but not limited to, the reduction in emissions.
(b) A city or town, school district or regional transit authority shall apply for a fund grant in the manner specified by the commissioner.
(c) The division shall promulgate policies, rules and regulations to implement this section. The commissioner shall file the 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 any policies, rules and regulations.


CLERK #19
REJECTED

Relative to Tax Relief for the Purchase of Alternative Fuel Vehicles

Messrs. Tarr, Tisei, Knapik, Hedlund and Brown move to amend the bill (S. 2457) by adding at the end the following additional section:-
SECTION 95. Paragraph (a) of Part B of section 3 of chapter 62 of the General Laws, as appearing in the 2004 Official Edition, is hereby amended by inserting after subparagraph 9 the following subparagraph:-
(91/2) For taxable years beginning on or after January 1, 2006, in the case of an individual who purchases a hybrid or alternative fuel vehicle, as those terms are defined in section 3 of chapter 25A, there shall be a deduction in the amount of $2,000 for a single person, for a person who qualifies as a head of household under section 2(b) of the Code or for a husband and wife in the taxable year in which the purchase is made. The department of revenue may require a proof of purchase to be submitted with a return in order to be eligible for the deduction.


CLERK #20
REJECTED

Relative to Investment Credits

Messrs. Tarr, Tisei, Knapik, Hedlund and Brown move to amend the bill (S. 2457) by adding at the end the following additional section:-
SECTION 95. Section 31A of chapter 63 of the General Laws, as so appearing, is hereby amended by inserting after the word "fishing", in lines 4 and 24, the following words:- or a corporation primarily engaged in the development, construction or operation of an alternative fuel refueling station, and the development of alternative fuels, as those terms are defined in section 3 of chapter 25A.


CLERK #21
REJECTED

Corporate Alternative Fuel Fleets

Messrs. Tarr, Tisei, Knapik, Hedlund and Brown move to amend the bill (S. 2457) by adding at the end the following additional section:-
            SECTION 95. Chapter 63 is hereby amended by inserting after section 31C the following 2 sections:-
Section 31C1/2. A 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, as that term is defined in section 3 of chapter 25A, of a conventional fuel vehicle to an alternative fuel vehicle, as that term is defined in said section 3 of said chapter 25A, and maintains the alternative fuel vehicle, and which corporation is a domestic or foreign corporation under subparagraph 1 or 2 of section 30, may receive a credit against its excise due under this chapter. The amount of the credit shall be equal to 50 per cent of the difference between the purchase price or the cost of the aftermarket conversion of the alternative fuel vehicle and the listed purchase price of a gasoline-powered vehicle of like quality during the taxable year of the purchase. A corporation which does not maintain at least 10 per cent of its fleet as alternative fuel vehicles or hybrid vehicles, as those terms are defined in said section 3 of said chapter 25A, shall not be eligible for the credit.
Section 31C3/4. A 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, as that term is defined in section 3 of chapter 25A, of a conventional fuel vehicle to an alternative fuel vehicle, as that term is defined in section 3 of chapter 25A, and maintains the alternative fuel vehicle, and which corporation is a domestic or foreign corporation under subparagraph 1 or 2 of section 30, may receive a credit against its excise due under this chapter. The amount of the credit shall be equal to fifty per cent of the difference between the purchase price or the cost of the aftermarket conversion of the alternative fuel vehicle and the listed purchase price of a gasoline-powered vehicle of like quality during the taxable year of the purchase, as hereinafter provided. A corporation which does not maintain at least 10 per cent of its fleet as alternative fuel vehicles or hybrid vehicles, as those terms are defined in said section 3 of said chapter 25A, shall not be eligible for the credit.


CLERK #22
REJECTED - 7 YEAS to 31 NAYS (see Senate Roll Call, No. 162)

An Amendment Relative to the Taxation of Special Fuels 

Messrs. Tarr, Tisei, Knapik, Hedlund, and Brown move to amend a pending amendment (No. 22, by Messrs. Tarr, Tisei, Knapik, Hedlund, and Brown) by striking out the wording and inserting in place thereof the following wording:-

“SECTION 95. Chapter 64A of the General Laws, as appearing in the 2004 Official Edition, is hereby amended by inserting, after section 7A, the following section:—  Section 7B. The sale of fuel to a city or town which having consumed the same for any municipal purpose shall be exempt from the excise established by this chapter.”


CLERK #23
REJECTED

Energy Independence Placards

Messrs. Tarr, Tisei, Knapik, Hedlund and Brown move to amend the bill (S. 2457) by adding at the end the following additional section:-
            SECTION 95. Section 2 of chapter 90 of the General Laws, as so appearing, is hereby amended by inserting after the tenth paragraph the following paragraph:-
Upon application, the registrar shall furnish an energy independence 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 hybrid or alternative fuel vehicle, as those terms are defined in section 3 of chapter 25A, and who meets the requirements of this paragraph. The placard or sticker shall be of a size and design to be determined by the registrar and shall be numbered and contain identifying features and specifications as the registrar considers appropriate. The authorized user shall permanently affix the placard or sticker to the vehicle so as to be readily visible in accordance with instructions provided by the registrar from time to time. The registrar may impose a reasonable fee for the costs associated with the processing of applications and the issuance of placards or stickers.
The Massachusetts Turnpike Authority shall make available to all holders of placards Fast Lane toll transponders and shall waive the initial application fee associated with the acquisition of the transponder. A city or town may, by by-law or ordinance, grant municipal parking at a reduced rate or without charge to holders of the energy independence placard or sticker.


CLERK #24
REJECTED

Commonwealth Alternative Fuels Institute

Messrs. Tarr, Tisei, Knapik, Hedlund and Brown move to amend the bill (S. 2457) by adding at the end the following additional section:-
SECTION 95. (a) There shall be established at the University of Massachusetts, the Commonwealth Alternative Fuels Institute, for the purpose of researching and developing hybrid and alternative fuel vehicles and alternative fuels and any related technology and components involved in the production, conversion, operation and maintenance of hybrid and alternative fuel vehicles and hybrids.
(b) The Institute shall have among its primary goals the development and commercialization of the vehicles, fuels, equipment and technology for the purposes of deriving environmental benefits, reducing dependence on conventional fossil fuels and facilitating economic growth.
(c) The Institute shall be governed by policies and operating procedures 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.
(d) Subject to appropriation, the Institute shall engage in 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 this act.
(e) There shall be an advisory board of the Institute, comprised of: the president of the University of Massachusetts or his designee, who shall also serve as the chairperson; 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; 3 members to be appointed by the governor, 1 of whom shall represent the business community, 1 of whom shall have expertise in environmental issues and 1 of whom shall represent consumers; 2 members appointed by the president of the university, each having expertise in relevant science and technology; 1 member of the senate and 1 member of the house of representatives. Each appointed member shall serve for a term of 3 years, and shall be eligible to be appointed for consecutive terms.
(f) The Institute shall undertake a comprehensive industry needs assessment, in consultation with the advisory board, of businesses engaged in the research, development or production of alternative fuel vehicles and hybrids, alternative fuels and related components and technologies. The assessment, which shall be completed not later than 6 months after the effective date of this act, shall include, but not be limited to the following:
(1) the identities of industry participants and a characterization of their business activities involving hybrid and alternative fuel vehicles and related technologies and components;
(2) current or projected impediments to the growth and development of industry participants;
(3) feasible means by which state government, including the commonwealth's institutions of higher education, may assist industry participants;
(4) potential collaborative efforts between the commonwealth and industry participants, including industry-sponsored research and development and the securing of public and private research funds;
(5) potential sources and uses of federal government funding for research and development including, but not limited to, funding opportunities contained in any federal renewable or alternative energy legislation.


Redraft Clerk #25
ADOPTED

Relative to Fueling Services

Messrs. Tarr, Tisei, Knapik, Hedlund, and Brown move to amend the bill (S. 2457) by adding at the end the following additional section:-
            SECTION 95. The Massachusetts Turnpike Authority shall develop a plan, in consultation with the executive office of transportation, for the availability of alternative fuel at each fueling facility or service terminal on the Massachusetts Turnpike. The plan shall provide for availability not later than January 1, 2014. Should the authority determine that facilitating the availability is not feasible for any reason, including the status of leases the Massachusetts Turnpike Authority has with tenants of the Massachusetts Turnpike, it shall report the findings, together with the reasons therefore, as well as the status of similar plans or projects of adjacent states, if any, to the house and senate committees on ways and means and the joint committee on transportation not later than January 31, 2009.


Redraft Clerk #26
ADOPTED

An Amendment Relative to a Master Plan

Messrs. Tarr, Tisei, Knapik, Hedlund and Brown move to amend the bill (S. 2457) by adding at the end the following additional section:-

SECTION 95. (a) The commissioner of energy resources, in consultation with the secretary of administration and finance, the secretary of transportation, the general manager of the Massachusetts Bay Transportation Authority, a representative of the regional transit authorities, the secretary of economic affairs, the secretary of environmental affairs, and the operation services division, shall develop a statewide master plan for the advancement of hybrid and alternative fuel vehicles, as defined in Section 1 of Chapter 90, 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) In addition, the plan shall identify strategies and corresponding methods of achieving its identified goals together with necessary administration and legislative actions. The plan shall be reported to the clerks of the senate and house of representatives not later than 18 months following the effective date of this act.


Clerk #27
REJECTED

Alternative Fuel Directory

Messrs. Tarr, Tisei, Knapik, Hedlund and Brown move to amend the bill (S. 2457) by adding at the end the following additional section:-
            SECTION 95. The commissioner of energy resources shall annually develop a directory of alternative fuel vehicles, equipment and services available for purchase by public entities.
The directory shall include vehicles available for heavy, medium and light duty usage, as well as the spectrum of alternative fuels available, as defined in section 3 of chapter 25A of the General Laws, and the appropriate applications, estimated costs, and positive and negative aspects of each vehicle and fuel. To the extent possible, the directory shall contain photographs of the available vehicles.
The 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 hybrid and alternative fuel vehicles. The catalog shall be made available to nongovernment entities but the commissioner may impose a reasonable fee consistent with the cost of reproducing the catalog.


Clerk #28

WITHDRAWN


Redraft Clerk #29
ADOPTED

Smart Grid Pilot Program

Messrs. Buoniconti and Pacheco moved that the bill be amended in line 2249 of Section 77 by striking out the words “6 month” and inserting in place thereof the following;- “12 month”; in line 2250 of section 77 after the word “meters” by inserting the words;- “including, but not limited to, advanced smart meters with two-way mesh network capacity”; in line 2259 of Section 77 by striking out the words “6 month” and inserting in place thereof;- “12 month”; in line 2259 of Section 77 by striking out the words “a minimum of” and inserting in place thereof;- “up to”; and in line 2261 of Section 77 by striking out the words “peak loads” and inserting in place thereof; - “average loads”.


Clerk #30
ADOPTED

Feasibility Study

Messrs. Tarr, Tisei, Knapik, Hedlund and Brown, move to amend the bill (S. 2457) by adding at the end the following additional section:-
            SECTION 95. The operational services division, in consultation with the executive office of transportation, the secretary of administration and finance, the division of energy resources, the Massachusetts Bay Transportation Authority and regional transit authorities, shall study the feasibility of developing and implementing a system to facilitate the mass purchase of alternative fuel vehicles by the commonwealth and its political subdivisions. The study shall include, but not be limited to, the potential cost savings to be derived from the system, the cost of its administration, appropriate purchasers to participate in the system and the probability of its utilization by those purchasers.
The operational services division shall report the findings of the study, and its recommendations if any, together with drafts of legislation necessary to carry such recommendations into effect, by filing the same with the clerks of the senate and house of representatives not later then 1 year after the effective date of this act.


Clerk #31
REJECTED

HOV Lanes

Messrs. Tarr, Tisei, Knapik, Hedlund and Brown, move to amend the bill (S. 2457) by adding at the end the following additional section:-
SECTION 95. Hybrid and alternative fuel vehicles which display a special identifying placard issued under section 12 may travel in high occupancy vehicle or HOV lanes. This section shall expire 3 years following the effective date of this act.


Clerk #32

WITHDRAWN


Clerk #33

WITHDRAWN


Clerk #34
ADOPTED

MTC Aid for Micro-CHP Installation

Messrs. Tarr, Tisei, Knapik, Hedlund and Brown, move to amend Section 21 of the bill (S. 2457) by adding at the end the following phrase:-  “, including residential combined heat and power systems of 10 Kw or less and commercial combined heat and power systems of 60 Kw or less.”


Clerk #35
REJECTED

Tax Incentives for Alternative Fuel and Energy Conservation

Messrs. Tarr, Tisei, Knapik, Hedlund and Brown, move to amend the bill (S. 2457) by adding at the end the following additional section:-

SECTION 95.  (A) Part B of section 3 of said chapter 62, as so appearing, is hereby amended by inserting after paragraph 9 the following paragraph:-
(9½). (a) For taxable years beginning on January 1, 2008, in the case of an individual who purchases a hybrid or alternative fuel vehicle there shall be a deduction in the amount of $2,000 for a single person, for a person who qualifies as a head of household under subsection (b) of section 2 of chapter 62 or a married couple in the taxable year in which the purchase is made. The department of revenue may require a proof of purchase to be submitted with a return in order to be eligible for the deduction.
(b) For taxable years beginning on January 1, 2008, in the case of an individual who installs in his house a combined heat and power system, there shall be a deduction in the amount of $5,000 for a single person, for a person who qualifies as a head of household under subsection (b) of section 2 of chapter 62 or a married couple in the taxable year in which the purchase is made. The department of revenue may require a proof of purchase to be submitted with a return in order to be eligible for the deduction. (B) Chapter 63 of the General Laws is hereby amended by inserting after section 38T the following section:-

SECTION 38U. In determining the net income subject to tax under this chapter a domestic or foreign business corporation that installs a combined heat and power system may deduct up to $15,000 paid or incurred during the taxable year with respect to each such installation.


Clerk #36
ADOPTED

COMMUNITY COLLEGES

Mr. Berry moves that the bill be amended, in section 83 subsection (i), by inserting after the word “state” the following:- “or community”.


Clerk #37
REJECTED

CLASS II GENERATORS

Mr. Berry moves that the bill be amended, in section 15 by striking subsection (e) in section 11F and inserting in place thereof the following :-
“(e) On or before June 30, 2008, the Division shall determine the actual percentage of kilowatt-hour sales to end-use customers in the commonwealth which was derived from Class II generating sources in 1998.  On or before January 1, 2009, every retail supplier shall annually provide to end-use customers in the commonwealth, generation attributes from Class II energy facilities in the amount equal to the percent of the kilowatt hour sales from Class II energy generating sources in 1998, and shall provide at least that percentage of Class II generation attributes each year thereafter. 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 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). For purposes of calculating a retail supplier’s minimum percentage of kilowatt-hour sales of Class II renewable energy generating sources, retail supplier’s annual, kilowatt-hours sales to end-use customers shall be net of kilowatt-hours of energy that such retail supplier is obligated to purchase in that year pursuant to an agreement that was entered into prior to October 1, 2007.   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.”


Clerk #38
REJECTED

Biodiesel Blending Requirement

Mr. Downing moves that S. 2457 be amended by inserting the following sections at the end thereof:

“SECTION 95.  Chapter 94 is hereby amended by inserting after section 249H the following section:
Section 249H1/2.  (1)  As used in this subsection, the following terms shall have the following meanings:
“Biodiesel fuel”, a renewable, biodegradable, mono alkyl ester combustible liquid fuel derived from agricultural plant oils or animal fats and meeting American society for testing and materials specification D6751 for biodiesel fuel (B100) blend stock for distillate fuels. 
“BQ-9000”, the national biodiesel accreditation program for producers and marketers of biodiesel fuel, operated by the national biodiesel accreditation commission.
“Deputy Director”, the deputy director of the division of standards.
“Division”, the division of standards in the office of consumer affairs and business regulation.
 “Feedstock(s)”, the raw material used to produce a fuel.
 “Marketer”, an entity engaged in the business of the distribution and sale of biodiesel and/or biodiesel blends.
“Full life-cycle greenhouse gas emissions”, the aggregate quantity of greenhouse gas emissions (including direct emissions and significant indirect emissions such as significant indirect emissions from land use changes), as determined by the division of energy resources, related to the full fuel life-cycle, including all stages of fuel and feedstock and distribution, from feedstock generation or extraction through the distribution and delivery and use of the finished fuel to the ultimate consumer, where the mass values for all greenhouse gases are adjusted to account for their relative global warming potential.
(2) All petroleum-distillate #2 fuel offered for sale to end-users, retail sellers, or to any other entity that will be providing such fuel directly to end-users in the commonwealth for use in residential, commercial, or industrial heating applications, must contain at least 2.0 percent biodiesel fuel by volume by July 1, 2010.  All such fuel must contain at least 3.0 percent biodiesel fuel by volume by July 1, 2011, 4.0 percent biodiesel fuel by volume by July 1, 2012, and 5.0 percent biodiesel fuel by volume by July 1, 2013. Biodiesel fuel used to comply with this section must yield a “substantial” reduction of full lifecycle greenhouse gas emissions, including direct and indirect impacts on land use and other factors related to greenhouse gas emissions, per unit of delivered energy in comparison to the petroleum fuel displaced. 
The division of energy resources, in consultation with the department of environmental protection, and pursuant to regulations it shall promulgate under sections 6(8) and 12 of chapter 25A, shall determine what constitutes a “substantial” level of greenhouse gas reductions on a lifecycle basis and examine the potential impacts on other air pollutants. In determining the lifecycle greenhouse gas reductions achieved by particular biodiesel supplies, and in determining what constitutes “substantial” reduction, the division shall utilize “best practices” available from other sources, including state governments, interstate organizations, academic researchers, national governments, and the European Union.
The division may delay these implementation dates based on its determination, in consultation with the division of energy resources, that providing sufficient supplies of the required biodiesel blends to end-use consumers is not feasible due to lack of supply, lack of blending facilities, or unreasonable cost.  If the division delays implementation as provided in the preceding sentence, the deputy director of the division shall file a report within 30 days of such decision with the clerk of the Senate, the clerk of the House of Representatives, the House and Senate Committees on Ways and Means, the Joint Committee on Telecommunications, Utilities and Energy, the Joint Committee on Environment, Natural Resources and Agriculture and the Joint Committee on Transportation explaining the reasons for any such decision to delay implementation.
(3) Manufacturers and wholesale distributors of biodiesel fuel doing business in the commonwealth shall furnish samples of such products to the division and permit the entry and inspection by the division of the premises of such manufacturers or distributors, and the inspection of biodiesel fuel stored thereon.
(4) Manufacturers and wholesale distributors of biodiesel fuel doing business in the commonwealth shall provide documentation satisfactory to the division that such fuel yields a “substantial” reduction of full lifecycle greenhouse gas emissions, including direct and indirect impacts on land use and other factors related to greenhouse gas emissions, per unit of delivered energy in comparison to the petroleum fuel displaced.
(5) Manufacturers of biodiesel fuel that is sold in the commonwealth must hold BQ-9000 accreditation, must submit documentation of this accreditation to the division by November 1, 2009, and must submit documentation to the division showing that their accreditation remains current every 2 years thereafter.
(6) The division shall evaluate the feasibility and desirability of requiring BQ-9000 or other comparable accreditation requirement for marketers of biodiesel fuel and petroleum-based motor fuel blended with biodiesel fuel operating in the commonwealth.  If the division concludes that such accreditation is feasible and desirable in order to protect consumers and the environment, the division shall promulgate regulations to implement an accreditation requirement.
(7) The division shall promulgate regulations to implement the provisions of this subsection.
(8) No person shall sell or offer to sell in the commonwealth heating fuel, including biodiesel fuel that does not conform to the provisions of this section.
(9) Notwithstanding any of the provisions of section 249H of this chapter, failure to comply with subsection (8) of this section shall constitute an unfair or deceptive act under the provisions of chapter 93A, and may be enforced as provided therein.

SECTION 96.  Chapter 94 is hereby amended by inserting after section 295G the following section:
Section 295G1/2.  (1) As used in this section, the following words and terms shall have the following meanings:
“Biodiesel fuel”, a renewable, biodegradable, mono alkyl ester combustible liquid fuel derived from agricultural plant oils or animal fats and meeting American society for testing and materials specification D6751 for biodiesel fuel (B100) blend stock for distillate fuels. 
 “BQ-9000”, the national biodiesel accreditation program for producers and marketers of biodiesel fuel, operated by the national biodiesel accreditation commission.
 “Deputy Director”, the director of the division of standards.
“Division”, the division of standards in the office of consumer affairs and business regulation.
 “Feedstock(s)”, the raw material used to produce a fuel.
 “Marketer”, an entity engaged in the business of the distribution and sale of biodiesel and/or biodiesel blends.
“Full life-cycle greenhouse gas emissions”, the aggregate quantity of greenhouse gas emissions (including direct emissions and significant indirect emissions such as significant indirect emissions from land use changes), as determined by the division of energy resources, related to the full fuel life-cycle, including all stages of fuel and feedstock and distribution, from feedstock generation or extraction through the distribution and delivery and use of the finished fuel to the ultimate consumer, where the mass values for all greenhouse gases are adjusted to account for their relative global warming potential.
(2) All diesel motor fuel offered for sale to end-users, retail sellers, or to any other entity that will be providing diesel motor fuel directly to end-users in the commonwealth, must contain at least 2.0 percent biodiesel fuel by volume by July 1, 2010.  All such diesel motor fuel must contain at least 3.0 percent biodiesel fuel by volume by July 1, 2011, 4.0 percent biodiesel fuel by volume by July 1, 2012, and 5.0 percent biodiesel fuel by volume by July 1, 2013. Biodiesel fuel used to comply with this section must yield a “substantial” reduction of full lifecycle greenhouse gas emissions, including direct and indirect impacts on land use and other factors related to greenhouse gas emissions, per unit of delivered energy in comparison to the petroleum fuel displaced.
The division of energy resources, in consultation with the department of environmental protection, and pursuant to regulations it shall promulgate under sections 6(8) and 12 of chapter 25A, shall determine what constitutes a “substantial” level of greenhouse gas reductions on a lifecycle basis and examine the potential impacts on other air pollutants. In determining the lifecycle greenhouse gas reductions achieved by particular biodiesel supplies, and in determining what constitutes “substantial” reduction, the division shall utilize “best practices” available from other sources, including state governments, interstate organizations, academic researchers, national governments, and the European Union. 
The division may delay these implementation dates based on its determination, in consultation with the division of energy resources, that providing sufficient supplies of the required biodiesel blends to end-use consumers is not feasible due to a lack of supply, lack of blending facilities, or unreasonable cost.  If the division delays implementation as provided in the preceding sentence, the deputy director of the division shall file a report within 30 days of such decision with the clerk of the Senate, the clerk of the House of Representatives, the House and Senate Committees on Ways and Means, the Joint Committee on Telecommunications, Utilities and Energy, the Joint Committee on Environment, Natural Resources and Agriculture and the Joint Committee on Transportation explaining the reasons for any such decision to delay implementation.
(3) Manufacturers and wholesale distributors of biodiesel fuel doing business in the commonwealth shall provide documentation satisfactory to the division that such fuel yields a “substantial” reduction of full lifecycle greenhouse gas emissions, including direct and indirect impacts on land use and other factors related to greenhouse gas emissions, per unit of delivered energy in comparison to the petroleum fuel displaced.
(4) Manufacturers of biodiesel fuel that is sold in the commonwealth must hold BQ-9000 accreditation, must submit documentation of this accreditation to the division by November 1, 2009, and must submit documentation to the division showing that their accreditation remains current every 2 years thereafter.
(5) The division shall evaluate the feasibility and desirability of requiring BQ-9000 or other comparable accreditation requirement for marketers of biodiesel fuel and petroleum-based motor fuel blended with biodiesel fuel operating in the commonwealth.  If the division concludes that such accreditation is feasible and desirable in order to protect consumers and the environment, the division shall promulgate regulations to implement an accreditation requirement.
(6) The division shall promulgate regulations to implement the provisions of this section.
(7) No person shall sell or offer to sell in the commonwealth motor fuel, including biodiesel fuel, that does not conform to the provisions of this section.
(8) Failure to comply with subsection (7) of this section shall constitute an unfair or deceptive act under the provisions of chapter 93A, and may be enforced as provided therein."


Clerk #39

WITHDRAWN


Clerk #40
REJECTED

Board of Building Regulations and Standards

Mr. Creedon moves to amend the bill in Subsection (m) of Section 44 by inserting at the end of the first sentence the following:- provided, however, that the provisions of the IECC shall not apply to one or two-family dwellings until adopted by the board.


Clerk #41
REJECTED - 7 YEAS to 30 NAYS (see Senate Roll Call, No. 163)

Relative to Consumer Protection

Messrs. Tisei, Tarr, Knapik, Hedlund and Brown move to amend the bill (S. 2457) in section 9 by inserting after subsection (c) the following subsection:-
“(d) The department shall no longer collect and no consumer shall be charged the mandatory charge prescribed in subsection (a) of this section on or after January 1, 2013.”.


Clerk #42
REJECTED - 5 YEAS to 32 NAYS (see Senate Roll Call, No. 164)

Relative to the Development of Green Buildings

Messrs. Tisei, Tarr, Knapik, Hedlund and Brown move to amend the bill (S.2457) by inserting after section 94 the following sections: -
“SECTION 95.  Section 1.  The chief of the office of commonwealth development is hereby authorized and directed to implement a Green Building Initiative.  Said initiative shall achieve the following: -
(a)    Improve the energy efficiency of state buildings by requiring a 20 per cent reduction of grid based energy usage by state buildings by the year 2020, based on 2005 usage levels.
(b)    Development of a technical assistance program to assist cities and towns regarding methods to increase energy efficiency and reduce grid based energy usage in municipal buildings.
The chief shall annually report to the clerk of the senate, the clerk of the house, the house and senate committee’s on ways and means, and the joint committee on environment, natural resources and agriculture any and all progress made in improving energy efficiency in the commonwealth’s buildings, the current energy efficiency usage statistics in relation to the benchmarks as well as any and all impediments to achieving said benchmarks in the appropriated timeframe no later than April 1 of each year.
Section 2.  Within the office of commonwealth development there shall be established a green building certification program.  Certification, to the minimum standards prescribed in this act, shall be required newly constructed buildings and for all buildings undergoing major renovations by the Commonwealth.
(a)    For buildings projects that are 20,000 sq. ft. and larger; but less than 50,000 sq. ft. certified as LEED-NC 2.2, (LEED-EB 2.0 for major renovations), as defined by the U.S. Green Building Council.
(b)    For buildings 20,000 sq. ft. and less, certified as LEED-NC 2.2, (LEED-EB 2.0 for major renovations) or surpass the Massachusetts energy code requirements by at least 20%. 
(c)    For buildings 50,000 sq. ft. and larger, certified as LEED-NC 2.2, (LEED-EB 2.0 for major renovations) and surpass the Massachusetts energy code requirements by at least 20%.  Additionally, the possibility of on-site power generation should be evaluated and where economically and viable shall be pursued. 
Section 3.  (a)  Notwithstanding any general or special law to the contrary, any city or town who receives a grant or any other form of financial assistance from the Commonwealth toward the construction or major renovation of a municipal building may receive incentive points for the construction of a green building certified as LEED-NC 2.2, (LEED-EB 2.0 for major renovations) or better.  Incentive points may be allocated up to 2% of the total project cost for qualifying projects, subject to appropriation.
(b) The office of commonwealth development shall provide technical assistance to cities and towns for the construction of energy efficient buildings.  Said assistance shall include identification of energy efficient technologies, assistance in the identification of any federal funds available for the design and construction of energy efficient buildings.
Section 4.  Chapter 63 of the General Laws, as appearing in the 2004 official edition, is hereby amended by adding after section 38P the following new section: -
Section 38Q “Credit against amount excise due, energy efficient construction”
(a) Any corporation who newly construct or perform major renovations on buildings greater than 20,000 sq. ft. and that are certified as LEED-NC 2.2, (LEED-EB 2.0 for major renovations) or greater shall be granted a credit of up to 100,000 dollars or 10 per cent of the total construction cost, whichever amount is the lesser, against its excise due under this chapter.
(b) The credit allowed herein may be amortized over ten years.
(c) The credit allowed herein for any taxable year shall not reduce the excise to less than the amount due under subsection (b) of section thirty-two, subsection (b) of section thirty-nine, or section sixty-seven and under any act in addition thereto.
(d) The credit allowed under this section is limited to one hundred percent of a corporation’s first twenty-five thousand dollars of excise, as determined before the allowance of any credits, plus seventy-five percent of the corporation’s excise, as so determined in excess of twenty-five thousand dollars. The commissioner of revenue shall promulgate regulations similar to those authorized under section 38(c)(2)(B) of the Internal Revenue Code for purposes of apportioning the twenty-five thousand dollars amount among members of a controlled group. Nothing in this section shall alter the provisions of section thirty-two C, as it affects other credits under this chapter.
Section 5.  Section 10 of chapter 40A of the General Laws, as appearing in the 2004 official edition, is hereby amended by adding in line 12 after the words “petitioner or appellant,” the following: - or the petitioner has constructed a building which has been given a LEED NB-2.2 certification or greater, as defined by the U.S. Green Building Council, in which case the petitioner shall be eligible for a height variance of up to three floors; provided further, that a LEED NB-2.2 certification or greater shall make the petitioner eligible for a density variance of up to .20 FAR,
Section 6.  Chapter 63 of the General Laws, as appearing in the 2004 official edition, is hereby amended by adding after section 38Q the following new section: -
Section 38R “Credit against amount of excise due, energy efficient technologies”
(a) Any corporation who purchases durable equipment, which meets standards set forth by the U.S. Department of Energy, or energy star qualified products, shall receive a credit of 10 per cent of the purchase price of such equipment, up to a maximum amount of 10,000 dollars in any given taxable year, against its excise due under this chapter.
(b) The credit allowed herein for any taxable year shall not reduce the excise to less than the amount due under subsection (b) of section thirty-two, subsection (b) of section thirty-nine, or section sixty-seven and under any act in addition thereto.


Redraft Clerk #43

WITHDRAWN


Redraft Clerk #44

WITHDRAWN


Clerk #45
REDRAFT

HYBRID VEHICLE PURCHASE INCREMENTAL PRICE DIFFERENCE

Messrs. Tisei, Tarr, Knapik, Hedlund and Brown move to amend the bill (S. 2457) by adding, after section 94, the following new section:- 

“SECTION 95.   Sales on the incremental price difference between a hybrid or alternative fuel vehicle, as defined by section 1 of chapter 62, and the same vehicle that uses traditional fuel shall be exempt from the tax imposed pursuant to chapter 64H of the General Laws for one year commencing on July 1, 2008.   The commissioner of revenue, in consultation with the secretary of transportation and public works and the secretary of energy and environmental affairs, shall determine the exemption available pursuant to this paragraph based on the incremental price difference between a hybrid or alternative fuel vehicle and the same non-hybrid or traditional fuel vehicle available for purchase in the Commonwealth; provided, however, if the same non-hybrid or traditional fuel vehicle does not exist in order to determine said incremental price difference, a similar non-hybrid or traditional fuel vehicle shall be substituted.”.


Redraft Clerk #46
ADOPTED

MASSACHUSETTS RENEWABLE ENERGY TRUST FUND
OVERSIGHT BOARD MEMBERSHIP

Messrs. Tisei, Tarr, Knapik, Hedlund and Brown moved that the bill be amended by striking section 28 and inserting in place thereof the following section:-
“SECTION 28.  Said section 4 E of said chapter 40J, as so appearing, is hereby further amended by striking out subsection (i) and inserting in place thereof the following subsection:-
(i) The corporation shall be assisted in the implementation of this section by an oversight board consisting of now more than 15 individuals, which shall include 1 members to be appointed by the speaker of the house, 1 members to be appointed by the president of the senate, 1 member to be appointed by the minority leader of the house, 1 member to be appointed by the minority leader of the senate, the secretary of housing and economic development or a designee, the attorney general or a designee, the secretary of energy and environmental affairs or a designee, the chair of the department of public utilities, the executive director of the Massachusetts municipal association or designee, and no more than 6 individuals appointed by the governor, from the recommendation submitted by the chair of the board relating to clause (i) of said section 4, with an interest in matters related to the general purpose and activities of the fund and the knowledge and experience in at least one of the following areas:  electricity distribution, generation, supply, or power marketing; the concerns of commercial and industrial ratepayers; residential ratepayers, including low-income ratepayers; economics, financial or investment consulting expertise relative to the fund; regional environmental concerns; academic issues related to power generation, distribution or the development or commercialization of renewable energy sources; institutions of higher education; municipal or regional aggregation matters; and renewable and clean energy issues.  The board shall consult with said oversight board in discharging its obligations under this section.”.


Clerk #47
REJECTED

Municipal Renewable Energy and Efficiency Projects

Messrs. Tisei, Tarr, Knapik, Hedlund and Brown move to amend the bill (S. 2457) by inserting after section 94 the following section: -
“Section 95.  Not less than 20 per cent of all funds collected through section 9 of this bill shall be returned to cities and towns through grants for renewable energy or energy efficiency projects conducted by municipalities.  Said program shall be administered by the department of public utilities within guidelines developed by the department so long as such projects achieve one or more of the following:

  1. at minimum 5 per cent of the energy used by the municipality would come from renewable energy sources funded through the grant; or
  2. any energy efficiency programs result in a 10 per cent reduction in total energy consumption by the municipality within 3 years of the commencement of said project; or
  3. any project that through renewable energy and efficiency improvements results in net reduction of the municipalities carbon footprint by 20 per cent over five years.

If there are insufficient eligible projects to utilize the portion of the funds collected for this purpose the department shall revert those funds and reallocate them for uses prescribed in section 9 of this bill.


Clerk #48
REJECTED

ROPERTY TAX ABATEMENT FOR RENEWABLE
ENERGY GENERATING SOURCES

Messrs. Tisei, Tarr, Knapik, Hedlund and Brown move to amend the bill (S. 2457) by adding, after section 19, the following section:-
“SECTION 19A.  Clause (i) of section 59 of chapter 40 of the General