(BOSTON 6/27/2024) — On Tuesday, the Massachusetts Senate passed comprehensive climate legislation to make systemic changes to the state’s clean energy infrastructure that will help the state achieve its net zero emissions by 2050 goals, expand electric vehicle (EV) use and infrastructure, and protect residents and ratepayers. The bill passed the upper chamber by a vote of 38-2.
S.2829 – An Act upgrading the grid and protecting ratepayers will allow Massachusetts to develop infrastructure essential for the fight against climate change, including new solar, wind, and storage facilities. It will also enhance the electric grid to support getting clean energy to residents efficiently and in the needed capacities to power homes, businesses, and vehicles. Enhancements to the clean energy grid will be further paired with measures to keep costs down for ratepayers across the state.
The bill includes language that allows investor-owned utilities to purchase energy contracts lasting longer than six months, the current standard in Massachusetts, allowing utilities to lock in better energy rates for longer periods of time. This comes after Senator Michael Moore introduced a bill related to the matter earlier this session.
During Senate debate, legislators voted to adopt an amendment introduced by Senator Moore aimed at establishing achievable emissions goals for medium- and heavy-duty trucks. Amendment 23 directs the Electric Vehicle Coordinating Council (EVCC) to re-evaluate plans that direct truck dealers to sell a certain percentage of electric vehicle trucks as of January 1st, 2025 – a goal that is unrealistic considering that the Class 7 and 8 electric trucks currently on the market do not achieve performance levels competitive with fossil fuel-powered trucks, nor does the infrastructure needed to support them reliably exist.
“The climate crisis is real, and it affects everyone. I’m thrilled that Massachusetts is doing what it can to not just reduce the strain we’re putting on our environment, but to contribute toward statewide and nationwide solutions,” said Senator Michael Moore (D-Millbury). “This legislation will get us closer to a cleaner, more sustainable world while protecting consumers from unaffordable rate hikes – not to mention creating thousands of jobs in the process. I’m hopeful that we will get this bill to Governor Healey’s desk, and I look forward to further extending our commitment to sustainability in the coming years.”
The comprehensive climate legislation modernizes laws related to cost control for ratepayers; siting and permitting; decarbonization; electric transportation incentives; clean tech innovation; emissions reduction in state operations; and natural gas infrastructure.
Protecting Ratepayers from High Costs
To save residents’ money and protect residents from unfair and deceptive practices, the bill would ban competitive energy suppliers from enrolling new individual residential customers. According to the Attorney General’s Office and the Department of Public Utilities (DPU), data analyses show that consumers lost more than $577 million to competitive electric suppliers between July 2015 and June 2023. The Senate previously adopted this policy in April.
Consumers will see relief in a number of other ways as well. The bill would lower utility rates for consumers with low- and middle-incomes by directing utility providers to offer lower rates to eligible consumers. Utility companies would also gain more flexibility to negotiate the lengths of basic service contracts with electricity providers. By negotiating longer-term contracts, residents are less likely to see cost spikes.
Partnering with Communities to Expedite Siting and Permitting
The siting and permitting provisions, modeled on the work of a commission of diverse stakeholders established by the Healey-Driscoll administration, will consolidate the review of clean energy siting and permitting and expedite the timeline of projects. Large projects that require state, regional, and local permits will be consolidated into a single permit that must be decided upon in 15 months. Small projects with multiple local permits will also be consolidated into a single permit and must be decided upon in one year.
Robust community review processes will be paired with new permitting. The legislation formally establishes the Office of Environmental Justice and Equity (EJE), the Office of Public Participation at the Energy Facilities Siting Board (EFSB), and the Division of Siting and Permitting at the Department of Energy Resources (DSPDER). Each office would be charged with engaging with communities and applicants in their respective areas to ensure a thorough and community-centered review.
To protect ratepayers from bearing the cost of new construction, the state will require the EFSB to first consider enhancing current technologies before looking to new construction. An online clean energy infrastructure dashboard would also be created to promote public accountability in real time.
Making EVs Accessible and Expanding Infrastructure
Gas-powered vehicles are one of the highest emitters of carbon, and incentivizing EV usage is critical to achieving net zero emissions by 2050.
The legislation would expand the state’s MOR-EV program through 2027, which gives residents $3,500-$6,000 for the purchase of new or used electric vehicles. It would allow residents who own parcels within condominiums, homeowner associations, and historic districts to install EV chargers, and authorize condo boards to install EV chargers on community parcels.
It will bring coordination to EV infrastructure expansion, by centralizing the deployment of resources with the Electric Vehicle Infrastructure Coordinating Council (EVICC), and directing DPU to make it easier to install pole-mounted chargers that often are used in parking spots and on streets.
The bill would also make it easier for cities and towns to procure electric school buses and EV charging equipment for their municipalities.
Decarbonizing Buildings
An Act Upgrading the Grid and Protecting Ratepayers makes it easier to decarbonize buildings across the state, a major source of greenhouse gas emissions. It would authorize condo association boards to install energy efficiency devices and EV chargers in common areas and make heat pumps more efficient by allowing installers to use the most up-to-date refrigerants.
Leading the Way on Clean Technology and Innovation
Already leaders in clean technology, the state's innovators will receive even more support from this legislation to make sure that the next generation of technology is built in Massachusetts.
The legislation would boost the Massachusetts Clean Energy Center (MassCEC) by expanding their mission to include carbon removal, embodied carbon reduction, and nuclear power. MassCEC would also be directed to promote carbon removal and embodied carbon activities, and study opportunities for future carbon removal.
Leading by Example
The Commonwealth will take an in-depth look at its own operational climate impact under this legislation.
It would revise Massport’s enabling statute to prioritize reductions in greenhouse gas emissions alongside the promotion of commerce and growth. It would direct the Division of Capital Asset Management and Maintenance (DCAMM) to evaluate the energy efficiency and greenhouse gas emissions of state buildings, as well as seek options for reducing future emissions. The mission of the Board of Building Regulations and Standards would also be expanded to include the pursuit of reductions in greenhouse gas emissions.
Curbing Over-reliance on Natural Gas
Ensuring the electrical grid is on an equal playing field as the natural gas system is crucial to reducing dependency on fossil fuels and reaching the state’s net zero carbon emissions goals.
The bill reins in a statutory provision that for decades has given gas companies a preferential ratemaking advantage over providers of other heating sources.
Under An Act Upgrading the Grid and Protecting Ratepayers, the DPU will be directed to consider greenhouse gas impacts when it weighs a petition by a gas company to expand its territory. Gas companies will be allowed to pursue geothermal projects and networked heat pump systems, new opportunities that are undergoing successful testing in communities in Framingham and Lowell.
As the gas system needs continued upgrades, the legislation will shift the system from automatically replacing leak-prone pipes, to instead considering more targeted repairs, or decommissioning the line altogether if a more climate friendly alternative exists. Payments for new gas lines are often financed over 30 years, beyond the 2050 goal of reducing fossil fuels. By repairing or decommissioning pipes instead of replacing them, costs shifted to ratepayers are reduced, and the clean energy transition is accelerated.
During debate, the Senate voted to adopt an amendment modernizing the ‘bottle bill’, adding noncarbonated beverages, wine, and spirits to the list of containers eligible for a bottle deposit, and increasing the deposit amount from 5 cents to 10 cents.
Having passed the Senate, the legislation now moves to the House of Representatives for consideration.
Statements of Support:
“I applaud the Senate for passing a climate bill that includes big wins for consumers and our communities, marking a significant step toward an equitable transition to clean energy,” said Attorney General Andrea Joy Campbell. “Today's legislation proposes a new intervenor compensation program that will give communities the resources they need to help shape our clean energy future. I am also grateful that the Senate included provisions that would ban the predatory competitive electric supply industry and wind down the costly Gas System Enhancement Plan program.”
“Mass Audubon is proud that our legislative climate and energy leaders and the Healey Administration have delivered an omnibus climate bill which reflects so many of the recommendations of the Commission on Clean Energy Infrastructure Siting and Permitting,” said Michelle Manion, Vice President of Policy and Advocacy at Mass Audubon. “An Act Upgrading the Grid and Protecting Ratepayers will accelerate clean energy while also recognizing the importance of nature – our forests, wetlands, and farms – in the climate fight, and that our towns and cities are essential partners in delivering on the solution set. This bill is the Commonwealth’s next best step in addressing the climate crisis.”
“The Nature Conservancy is thrilled with the Senate's passage of a robust and impactful bill to address the causes and impacts of climate change,” said Steve Long, Director of Policy and Partnerships at The Nature Conservancy in Massachusetts. “We are especially pleased with the strong support for reforms recommended by the Commission on Energy Infrastructure and Siting and Permitting, on which we served, to accelerate the deployment of clean energy infrastructure while avoiding impacts on nature and people. Massachusetts again leads the nation on rapidly advancing the decarbonization of energy with requiring earlier analysis of site suitability, engagement with residents, and avoiding and mitigating impacts. This integrated approach will provide a collaborative process to inform the siting and design of energy infrastructure and lead to more consensus and fewer conflicts for a more equitable and efficient process.”
“ELM commends the Massachusetts Senate for their ongoing commitment to meeting our climate and conservation challenges with strong legislation aimed at deploying renewable energy, protecting nature, and reducing polluting waste,” said David Melly, Legislative Director for the Environmental League of Massachusetts. “The net-zero transition represents a watershed opportunity to improve the way we engage with communities, protect valuable land and water, and address disproportionate burdens when we site, permit, and plan infrastructure. And comprehensive action on waste reduction will both support our climate goals and reduce damage to the very same natural resources we’re working to protect.”
“Updating the bottle bill is a win/win/win proposal,” said Janet Domenitz, Executive Director of MASSPIRG. “Putting a deposit on water bottles, sports drinks and more will reduce waste, improve recycling, and save cities and towns money in trash and litter pick up. The nickel deposit, set in 1982, would be 16c today if we tracked inflation--this bill gets it to a dime, long overdue.”
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