S 3166

SENATE . . . . . . . . . . . . . . No. 3166
     Senate, July 1, 2016 -- Text of the Senate amendment to the House Bill relative to energy
     affordability, clean power and economic competitiveness (House, No. 5175) (being the text of
     Senate document numbered 3143, printed as amended)
  The Commonwealth of Massachusetts
  _______________
  In the One Hundred and Ninety-Fourth General Court
  (2025-2026)
  _______________
 1  SECTION 1. Paragraph (1) of subsection (c) of section 22 of chapter 21A of the General
 2   Laws, as appearing in the 2024 Official Edition, is hereby amended by striking out clause (ii) and
 3   inserting in place thereof the following 2 clauses:-
 4  (i) to fund the Electric Vehicle Adoption Incentive Trust Fund established in section 19
 5   of chapter 25A;
 6  (ii) to fund the green communities program established in subsection (b) of section 10 of
 7   said chapter 25A.
 8  SECTION 2. Chapter 21N of the General Laws is hereby amended by striking out section
 9   3B, as so appearing, and inserting in place thereof the following section:-
10  Section 3B. Upon the department approving a new plan under section 21 of chapter 25,
11   the secretary shall set a goal, expressed in tons of carbon dioxide equivalent, for the plan’s
12   contribution to meeting each statewide greenhouse gas emissions limit and sublimit adopted
13   pursuant to this chapter.
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14  SECTION 3. Section 70 of chapter 23A of the General Laws, as so appearing, is hereby
15   amended by striking out subsection (i) and inserting in place thereof the following 4
16   subsections:-
17  (i) As a condition of receiving, maintaining or renewing the tax benefits pursuant to
18   paragraph (zz) of section 6 of chapter 64H, an applicant shall be required to demonstrate
19   compliance with requirements established by the executive office relating to: (i) energy supply
20   and clean energy procurement, including, but not limited to, measures that support energy
21   affordability and reliability and meet the requirements established in chapter 21N; (ii) energy
22   efficiency, load flexibility and grid optimization, including, but not limited to, practices that
23   reduce energy system impacts and infrastructure costs; (iii) water resource protection and
24   infrastructure capacity, including, but not limited to, conservation, reuse, wastewater
25   management and protection of existing users; (iv) public health, air quality, environmental
26   protection and mitigation of cumulative impacts; (v) responsible labor practices, including, but
27   not limited to, requirements relative to registered apprenticeship opportunities, and the use of
28   project labor agreements or labor peace agreements; (vi) community engagement and community
29   benefit commitments, including, but not limited to, investments aligned with local needs and
30   priorities; (vii) economic development objectives, including, but not limited to, support for
31   businesses, innovation, job creation and long-term economic competitiveness in the
32   commonwealth; and (viii) transparency, reporting, disclosure, independent verification and
33   accountability measures.
34  (j) The executive office of economic development may condition, suspend, revoke, limit
35   or decline to grant an exemption under paragraph (zz) of section 6 of chapter 64H upon a finding
36   that an applicant has failed to satisfy requirements established pursuant to this section.
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37  (k) Nothing in this section shall be construed to alter, replace or limit any other applicable
38   federal, state, regional or local permitting, siting, regulatory, environmental, public health,
39   zoning or land-use requirement affecting a data center seeking an exemption under paragraph
40   (zz) of section 6 of chapter 64H.
41  (l) The secretary, in consultation with the commissioner of revenue, the secretary of
42   energy and environmental affairs and other relevant agencies, shall promulgate regulations and
43   shall issue instructions or forms necessary for the implementation of this section.
44  SECTION 4. Section 1 of chapter 23J of the General Laws, as so appearing, is hereby
45   amended by striking out the definitions of “Clean energy” and “Clean energy research” and
46   inserting in place thereof the following 2 definitions:-
47  “Clean energy”, advanced and applied technologies that significantly reduce or eliminate
48   the use of energy from nonrenewable sources, including, but not limited to: (i) energy efficiency;
49   (ii) demand response; (iii) energy conservation; (iv) carbon dioxide removal; (v) embodied
50   carbon reduction; or (vi) technologies powered, in whole or in part, by the sun, wind, water,
51   clean thermal energy, geothermal energy, including networked geothermal and deep geothermal
52   energy, hydrogen produced by non-fossil fuel sources and methods, alcohol, fuel cells, fusion
53   energy, nuclear fission or any other renewable, nondepletable or recyclable fuel; provided,
54   however, that “clean energy” shall include an alternative energy generating source as defined in
55   clauses (i) to (vi), inclusive, of subsection (a) of section 11F½ of chapter 25A.
56  “Clean energy research”, advanced and applied research in new clean energy
57   technologies, including: (i) solar photovoltaic; (ii) solar thermal; (iii) wind power; (iv) clean
58   thermal energy including but not limited to, geothermal energy, including networked geothermal
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59   and deep geothermal energy; (v) wave and tidal energy; (vi) advanced hydropower; (vii) energy
60   transmission and distribution; (viii) energy storage; (ix) renewable biofuels, including ethanol,
61   biodiesel and advanced biofuels; (x) renewable, biodegradable chemicals; (xi) advanced thermal-
62   to-energy conversion; (xii) fusion energy; (xiii) hydrogen produced by non-fossil fuel sources
63   and methods; (xiv) carbon capture and sequestration; (xv) carbon dioxide removal; (xvi) energy
64   monitoring; (xvii) green building materials and embodied carbon reduction; (xviii) energy
65   efficiency; (xix) energy-efficient lighting; (xx) gasification and conversion of gas to liquid fuels;
66   (xxi) industrial energy efficiency; (xxii) demand-side management; (xxiii) fuel cells; and (xxiv)
67   nuclear fission; provided, however, that “clean energy research” shall not include advanced and
68   applied research in coal, oil or natural gas.
69  SECTION 5. Section 8 of said chapter 23J, as so appearing, is hereby amended by
70   striking out clause (x) and inserting in place thereof the following clause:- (x) clean thermal
71   energy, geothermal energy, including networked geothermal and deep geothermal energy; and
72  SECTION 6. Subsection (f) of section 9 of said chapter 23J, as so appearing, is hereby
73   amended by striking out the first sentence and inserting in place thereof the following sentence:-
74   For the purposes of expenditures from the trust fund, “renewable energy technologies eligible for
75   assistance” shall mean technologies eligible as class I or class II renewable energy generating
76   sources under section 11F of chapter 25A, microcombined heat and power units less than 60
77   kilowatts, solar hot water, clean thermal energy, geothermal heating and cooling projects,
78   including networked geothermal and deep geothermal energy, biomass thermal and storage and
79   conversion technologies connected to qualifying generation projects; provided, however, that
80   climatetech technologies eligible for assistance shall be consistent with the definition of
81   “climatetech” in section 1.
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 82  SECTION 7. Subsection (b) of section 3 of chapter 23M of the General Laws, as so
 83   appearing, is hereby amended by striking out the first sentence and inserting in place thereof the
 84   following sentence:- The agency shall, in conjunction with the department, develop program
 85   guidelines governing the terms and conditions under which financing for commercial PACE
 86   projects may be made available to the commercial sustainable energy program.
 87  SECTION 8. Section 12N of chapter 25 of the General Laws, as so appearing, is hereby
 88   amended by striking out, in line 7, the word “69W” and inserting in place thereof the following
 89   word:- 69X.
 90  SECTION 9. Section 19 of said chapter 25, as so appearing, is hereby amended by
 91   striking out, in line 1, the words “shall require” and inserting in place thereof the following
 92   words:- shall, subject to subsection (g) of section 21, require.
 93  SECTION 10. Said section 19 of said chapter 25, as so appearing, is hereby further
 94   amended by striking out, in lines 3 to 5, inclusive, the words “energy efficiency programs
 95   including, but not limited to, demand side management programs” and inserting in place thereof
 96   the following words:- programs supporting building decarbonization through the elimination of
 97   fossil fuel end uses or the reduction of energy use through energy efficiency and load
 98   management resources.
 99  SECTION 11. Said section 19 of said chapter 25, as so appearing, is hereby further
100   amended by inserting after the figure “164”, in line 8, the following words:- ; provided, however,
101   that if a municipality or part of a municipality is served by a municipal light plant and by a gas
102   distribution company that is not owned by a corporate parent company that operates an electric
103   distribution company in the commonwealth, the department: (i) may, notwithstanding any
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104   general or special law to the contrary, designate the municipal light plant or an electric
105   distribution company to administer building decarbonization and energy efficiency programs for
106   the municipality or part of the municipality; and (ii) shall promulgate regulations to effect that
107   designation.
108  SECTION 12. Subsection (a) of said section 19 of said chapter 25, as so appearing, is
109   hereby amended by striking out the third and fourth sentences and inserting in place thereof the
110   following sentence:- In addition to the aforementioned mandatory charge, such programs
111   administered by the electric distribution companies, a municipal light plant subject to a
112   designation by the department pursuant to this subsection and municipal aggregators with energy
113   plans certified by the department under said subsection (b) of said section 134 of said chapter
114   164, shall be funded, without further appropriation, by: (i) amounts generated by the distribution
115   companies and municipal aggregators under the Forward Capacity Market program administered
116   by ISO–NE, as defined in section 1 of said chapter 164; (ii) cap and trade pollution control
117   programs subject to section 22 of chapter 21A including, but not limited to, not less than 80 per
118   cent of amounts generated by the carbon dioxide allowance trading mechanism established under
119   the Regional Greenhouse Gas Initiative as defined in subsection (a) of said section 22 of said
120   chapter 21A and the NOx Allowance Trading Program; (iii) the building decarbonization and
121   energy efficiency surcharge established pursuant to subsection (c) approved by the department;
122   and (iv) other funding as approved by the department after consideration of the: (A) effect of any
123   rate increases on residential and commercial consumers; and (B) availability of other private or
124   public funds, utility-administered or otherwise, that may be available for building
125   decarbonization, electrification, energy efficiency or load management.
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126  SECTION 13. Said section 19 of said chapter 25, as so appearing, is hereby further
127   amended by striking out, in lines 35 to 37, inclusive, the words “gas energy efficiency programs
128   proposed by gas distribution companies including, but not limited to, demand side management
129   programs” and inserting in place thereof the following words:- the statewide building
130   decarbonization and energy efficiency investment plan and the actions directed in subsections (c)
131   and (d), from gas distribution companies to be directed to the electric distribution companies and
132   municipal aggregators with certified energy plans according to a method approved by the
133   department.
134  SECTION 14. Subsection (b) of said section 19 of said chapter 25, as so appearing, is
135   hereby amended by striking out the second to fourth sentences, inclusive.
136  SECTION 15. Said section 19 of said chapter 25, as so appearing, is hereby further
137   amended by striking out subsections (c) and (d) and inserting in place thereof the following 2
138   subsections:-
139  (c) Building decarbonization and energy efficiency program funds shall be pooled as
140   approved by the department such that all pooled funds may be used to fund and deliver aspects
141   of the statewide building decarbonization and energy efficiency plan prepared pursuant to section
142   21, regardless of which electric distribution company, municipal aggregator, gas distribution
143   company or municipal light plant serves the ratepayer, as long as the customer is served by an
144   investor owned electric distribution company or gas distribution company. Not less than 20 per
145   cent of the statewide plan funds shall be allocated to the low-income residential sector to support
146   comprehensive residential building decarbonization, energy efficiency and education programs.
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147  (d) Notwithstanding this section, the department shall annually direct the electric
148   distribution companies and municipal aggregators with certified energy plans to jointly transfer,
149   on or before December 31, not less than $12,000,000 in funds collected pursuant to this section
150   to the Climatetech Investment Fund established in section 15 of chapter 23J; provided, that funds
151   shall be appropriated for the climatetech equity workforce and market development program
152   pursuant to subsection (c) of section 13 of chapter 23J.
153  SECTION 16. Said chapter 25 is hereby further amended by striking out sections 21 and
154   22, as so appearing, and inserting in place thereof the following 2 sections:-
155  Section 21. (a)(1) Every 3 years, on or before March 31, the electric distribution
156   companies and municipal aggregators with certified energy plans shall, in coordination with the
157   energy efficiency advisory council established in section 22, jointly prepare a cost-effective
158   statewide building decarbonization and energy efficiency investment plan, which shall provide
159   for programs designed to support building decarbonization through the elimination of fossil fuel
160   end uses or the reduction of fossil fuel energy use through energy efficiency and load
161   management resources; provided, however, that the plan shall, in a cost effective manner, be
162   prepared with substantial consideration of impacts on ratepayers’ bills and the prudent use of
163   ratepayer funds and designed to maximize energy efficiency and reduce greenhouse gas
164   emissions to help meet statewide greenhouse gas emission limits and sublimits adopted pursuant
165   to chapter 21N.
166  (2) The statewide plan shall include: (i) an assessment performed by the department of
167   energy resources of the estimated lifetime cost, reliability and magnitude of available building
168   decarbonization, energy efficiency and load management resources; (ii) the amount of demand
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169   resources, including building decarbonization, electrification, efficiency, conservation, demand
170   response and load management, that are proposed to be acquired under the plan and the basis for
171   this determination; (iii) the estimated energy cost savings that the acquisition of such resources
172   will provide to electricity and natural gas consumers, including, but not limited to, reductions in
173   capacity and energy costs and increases in rate stability and affordability for customers,
174   including low-income customers; (iv) the cost-effective budget with consideration of ratepayer
175   bill impacts, that is needed to support the programs; (v) a fully reconciling funding mechanism,
176   which may include, but shall not be limited to, the charge authorized by section 19; (vi) the
177   estimated amount of reduction in peak load that will be realized from each option; (vii) an
178   estimate of the social value of greenhouse gas emissions reductions that will result from the plan,
179   including a numerical value of the plan’s contribution to meeting each statewide greenhouse gas
180   emissions limit and sublimit set by statute or regulation, together with provisions for giving each
181   value prominent display in communications and plan documents; (viii) data showing the
182   percentage of all monies collected that will be used for direct consumer benefit, such as
183   incentives and technical assistance to carry out the plan; (ix) consideration of historic and present
184   program participation by low- and moderate-income households, renters and small business
185   ratepayers; (x) strategies and investments that the programs will undertake to achieve equitable
186   access for low- and moderate-income households, renters and small business ratepayers and
187   reduce or eliminate any disparities in program uptake, including consideration of a sliding scale
188   of subsidies for homes based on the home’s assessed value; (xi) an analysis of ratepayer bill
189   impacts, including illustrative annual rate and bill impacts; and (xii) a method for capturing the
190   following data to assess the plan’s services to low- and moderate-income households, renters and
191   small business ratepayers: (A) the total number of ratepayers per municipality served; (B) the
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192   total statewide plan surcharge dollars paid by ratepayers as part of their utility bills per
193   municipality served; and (C) the total incentives provided by the program administrators by
194   municipality served, delineated by utility and sector, including residential, residential low-
195   income and commercial and industrial. The plan may include a proposed mechanism which
196   provides performance incentives to the companies based on their success in meeting or
197   exceeding the building decarbonization, energy efficiency and load management goals in said
198   plan.
199  (3) The statewide plan shall include a description of programs, which may include, but
200   shall not be limited to: (i) energy efficiency and load management programs, including energy
201   storage and other active demand management technologies; (ii) a program to provide not more
202   than 1 per cent of funds to agencies or quasi-governmental agencies including, but not limited to,
203   the Massachusetts Community Climate Bank and MassDevelopment for revolving funds or loans
204   to finance energy improvements; (iii) energy efficiency and load management programs,
205   including energy storage and other active demand management technologies; (iv) programs to
206   support building decarbonization through the elimination of fossil fuel end uses; (v) programs for
207   research, development and commercialization of products or processes, which support building
208   decarbonization through the elimination of fossil fuel end uses; (vi) programs for development of
209   markets for such products and processes, including recommendations for new appliance and
210   product efficiency standards; (vii) programs providing support for energy use assessment, real
211   time monitoring systems, engineering studies and services related to new construction or major
212   building renovation, including integration of such assessments, systems, studies and services
213   with building energy codes, programs and processes, or those regarding the development of high
214   performance or sustainable buildings that exceed building energy codes; (viii) programs for
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215   planning and evaluation; (ix) programs providing commercial, industrial and institutional
216   customers with greater flexibility and control over building decarbonization and energy
217   efficiency investments funded by the programs at their facilities; (x) programs for public
218   education regarding building decarbonization, solar energy, energy efficiency and load
219   management programs; (xi) programs for the purchase of electric chargers, energy efficient
220   appliances and heating, air conditioning and lighting devices; (xii) programs delivering home
221   energy scorecards at the time of a home energy assessment; (xiii) programs that result in
222   customers switching to renewable energy sources or other clean energy technologies, including,
223   but not limited to, programs that combine efficiency and building decarbonization through the
224   electrification of fossil fuel end uses with renewable generation, solar energy, clean thermal
225   energy, as defined in section 3 of chapter 25A, and storage; (xiv) programs to serve targeted
226   geographic areas and provide enhanced services that differ from the statewide program offerings,
227   including programs offered as enhancements by municipal aggregators with energy plans
228   certified by the department under subsection (b) of section 134 of chapter 164; (xv) programs
229   that may result in greenhouse gas emission reductions or energy savings realized after the
230   statewide plan term; (xvi) programs to coordinate with gas utility non-pipeline alternatives
231   investments, including but not limited to clean thermal energy, as defined in section 3 of chapter
232   25A; and (xvii) services to assist customers in decarbonization, load management and energy
233   efficiency planning and implementation, which shall include education about other programs or
234   resources outside the statewide plan that support the adoption of solar energy, clean thermal
235   energy and other clean energy technology, building decarbonization measures, load management
236   measures or energy efficiency measures.
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237  (4) The statewide plan shall not include spending on incentives, programs or support for
238   systems, equipment, workforce development or training as they relate to new fossil fuel
239   equipment unless such spending is for low-income households, emergency facilities, hospitals, a
240   backup thermal energy source for a heat pump where technically or economically necessary or
241   hard to electrify uses, such as industrial processes. The plan shall not allow for expenditures on
242   program planning and administration to exceed 5 per cent of the total energy efficiency
243   expenditures of the 3-year term.
244  (b)(1) In authorizing the statewide plan, the department shall ensure that sector level
245   plans are delivered in a cost-effective manner and that the plan minimizes administrative costs
246   and utilizes competitive procurement to the fullest extent practicable. When determining cost-
247   effectiveness, the calculation of program benefits shall include calculations of the social value of
248   greenhouse gas emissions reductions, except in the cases of conversions from fossil fuel utilizing
249   measures to fossil fuel utilizing measures, and the calculation shall be subject to the conditions in
250   paragraph (2).
251  (2) A program included in the statewide plan shall be screened through cost-effectiveness
252   testing at the sector level, which compares the value of benefits to the costs to ensure that the
253   sector is designed to obtain savings and other benefits with value greater than the costs of the
254   sector. When determining cost-effectiveness, the calculation of benefits shall include non-energy
255   impacts and calculations of the social value of greenhouse gas emissions reductions, except in
256   the cases of conversions from fossil fuel utilizing measures to fossil fuel utilizing measures.
257  (3) Sector cost effectiveness shall be reviewed periodically by the department and by the
258   energy efficiency advisory council. For the purpose of reviewing cost effectiveness, programs
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259   may be aggregated by sector. Any sector with a benefit cost ratio greater than 1.0 indicating
260   benefits are greater than costs shall be considered cost-effective. The department may adopt
261   alternative screening criteria appropriate for the evaluation of cost effectiveness of market
262   transformation programs. If a sector fails the cost-effectiveness test as part of the review process,
263   its component programs shall either be modified so that the sector meets the test or shall be
264   terminated.
265  (c) The low-income residential building decarbonization, load management and energy
266   efficiency and education programs shall be implemented through the low-income weatherization
267   and fuel assistance program network and shall be coordinated with the statewide plan with the
268   objective of standardizing implementation and ensuring that low income ratepayers remain
269   eligible for the low income weatherization assistance program approved by the United States
270   Department of Energy pursuant to Title IV of the Energy Conservation and Production Act.
271  (d) (1) A gas distribution company shall not administer building decarbonization or
272   energy efficiency programs pursuant to the statewide plan.
273  (2) A gas distribution company that is not owned by a corporate parent company that
274   operates an electric distribution company in the commonwealth may provide support, marketing
275   or customer outreach services to the electric distribution company or municipal aggregator with a
276   certified energy plan in their administration of the statewide plan and may be eligible to earn
277   performance incentives associated with its services provided pursuant to this section.
278  (e) The statewide plan prepared under subsection (a) shall be submitted for approval and
279   comment by the energy efficiency advisory council organized pursuant to section 22 every 3
280   years on or before March 31. The electric distribution companies and municipal aggregators shall
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281   provide any additional information requested by the council that is relevant to consideration of
282   the plan. The electric distribution companies and municipal aggregators shall work
283   collaboratively with the council to understand the impacts of proposed energy efficiency budgets
284   on ratepayers before the plans and budgets are finalized and presented to the department for
285   review. The electric distribution companies and municipal aggregators may make any changes or
286   revisions to reflect the input of the council.
287  (f)(1) The electric distribution companies and municipal aggregators shall submit the
288   statewide plan, together with the council’s approval or comments and a statement of any
289   unresolved issues, to the department and the department of energy resources every 3 years on or
290   before October 31. The department shall consider the statewide plan and shall provide an
291   opportunity for interested parties to be heard in a public hearing.
292  (2) Not later than 120 days after submission of the statewide plan under this subsection,
293   the department shall issue a decision on the statewide plan which ensures that the electric
294   distribution companies and municipal aggregators with certified energy plans have, in a cost-
295   effective manner, considering ratepayers’ bill impacts and the prudent use of any ratepayer
296   funds, complied with the requirements of this section and considered climate, environmental and
297   equity benefits, and shall approve, modify and approve or reject and require the resubmission of
298   the plan accordingly. The department shall determine the effectiveness of the plan on an annual
299   basis.
300  (3) The statewide plan approved pursuant to this subsection shall be in effect for 3 years.
301   Mid-term modifications to a sector that propose an increase to a sector budget shall not be
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302   approved unless there is a corresponding decrease in said sector such that no increase occurs in
303   either the plan or a sector within the plan.
304  (4) Not later than 15 months after the conclusion of the final year of each plan, the
305   department shall, drawing upon the most accurate and most complete data and measurements
306   then available, issue a statement in writing to the clerks of the house of representatives and the
307   senate, the house and senate committees on ways and means, the joint committee on
308   telecommunications, utilities and energy and the joint committee on the environment and natural
309   resources, indicating the degree to which the activities undertaken pursuant to the performance of
310   each plan met the goal for the plan set by the secretary pursuant to section 3B of chapter 21N.
311  (g) If the electric distribution companies and municipal aggregators with certified energy
312   plans have not reasonably complied with the statewide plan, the department may open an
313   investigation. In any such investigation, the electric distribution companies and municipal
314   aggregators shall have the burden of proof to show whether there is good cause for failing to
315   reasonably comply with the statewide plan. If the electric distribution companies or municipal
316   aggregators do not meet this burden, the department may levy a fine of not more than the $0.05
317   per kilowatt-hour times the shortfall of kilowatt-hours saved, as applicable, depending upon the
318   facts and circumstances and degree of fault, which shall be paid to the department of energy
319   resources within 60 days after the end of the year in which the department levies the fine. The
320   fine shall not impact ratepayers and shall not be imposed on municipal aggregators with certified
321   energy plans. The department of energy resources shall use the fines collected under this
322   subsection to maximize programs supporting building decarbonization or energy efficiency.
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323  (h) The need for a program administrator to prepare for meetings with the energy
324   efficiency advisory council during the department’s 120-day review period after submission of
325   the plan shall not constitute good cause in a motion for an extension of time to respond to
326   discovery or in a motion for an extension of time to respond to a record request from the
327   department.
328  (i) All customer data collected by the electric and gas distribution companies and
329   municipal aggregators, contractors, vendors or other implementation partners as part of an
330   energy audit report or provision of energy efficiency and decarbonization services pursuant to
331   implementation of the approved statewide building decarbonization and energy efficiency
332   investment plans shall be confidential. No person shall disclose the name of a customer, the
333   contents of an energy audit report prepared for such customer or other customer information
334   associated with provision of energy efficiency and decarbonization services to any person other
335   than the following, unless the customer or subsequent purchaser waives his right to
336   confidentiality with respect to such information: (i) the customer; (ii) a subsequent purchaser of
337   the building serviced; (iii) the electric and gas distribution companies; (iv) municipal aggregators
338   that administer statewide building decarbonization and energy efficiency investment plans; (v)
339   the authorized vendors and other implementation partners of the electric and gas distribution
340   companies and municipal aggregators that administer statewide building decarbonization and
341   energy efficiency investment plans; (vi) the department of energy resources, its authorized
342   vendors and other implementation partners; and (vii) the executive office of energy and
343   environmental affairs; provided, however, that tenants in an audited building shall have the right
344   to inspect the energy audit report for the building in which they live.
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345  Nothing in this section shall prohibit the sharing of customer data between electric and
346   gas distribution companies, municipal aggregators and municipal light plants as approved by the
347   department in furtherance of the commonwealth’s public policy goals, including, but not limited
348   to, integrated energy planning.
349  All customer data collected pursuant to implementation of approved statewide building
350   decarbonization and energy efficiency investment plans, including, but not limited to, the name
351   of the customer, contents of an energy audit report, decarbonization or energy efficiency
352   measures installed and participation in load management and demand response programs, shall
353   not be deemed to be a public record as defined in clause Twenty-sixth of section 7 of chapter 4
354   and shall not be subject to demand for production under section 10 of chapter 66.
355  Section 22. (a) The commissioner shall appoint and convene an energy efficiency
356   advisory council, which shall consist of 19 members, including 1 person representing each of the
357   following: (i) middle income residential consumers; (ii) the low-income weatherization and fuel
358   assistance program network; (iii) the environmental community; (iv) large non-profit,
359   commercial and industrial end-users; (v) low- and moderate-income interests; (vi) building
360   decarbonization policy experts; (vii) organized labor, as recommended by the president of the
361   Massachusetts AFL-CIO; (viii) the department of environmental protection; (ix) the office of the
362   attorney general; (x) the executive office of economic development; (xi) Massachusetts
363   Nonprofit Network, Inc.; (xii) a city or town; (xiii) the Massachusetts Association of Realtors;
364   (xiv) a business located in the commonwealth that performs decarbonization services; (xv) the
365   department of energy resources; (xvi) banking, mortgage, lending and other institutions
366   specializing in real property finance; and (xvii) 3 members experienced in the management and
367   fiscal control of large private-sector business organizations. The council shall have a
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368   subcommittee dedicated to the issues of affordability and ratepayer bill impacts of not fewer than
369   5 members, to be chaired by a member selected by the governor. Interested parties shall apply to
370   the department for designation as members. Members shall serve for terms of 5 years and may be
371   reappointed. The commissioner of the department of energy resources shall serve as chair of the
372   council. A member of the council who is a representative of building decarbonization policy
373   experts shall not have a contractual relationship with an electric or natural gas distribution
374   company doing business in the commonwealth, or any affiliate of such company, or any
375   municipal aggregator. There shall be 1 non-voting, ex-officio member from each of the electric
376   and natural gas distribution companies, 1 from each of the municipal aggregators, 1 from the
377   heating oil industry, 1 from ISO New England and 1 from the Massachusetts clean energy
378   technology center established pursuant to section 2 of chapter 23J.
379  (b) The council shall review the statewide plan prepared pursuant to section 21 and any
380   related information. The council shall, as part of the approval process by the department, seek to
381   maximize net economic benefits through building decarbonization or energy efficiency and load
382   management resources and to achieve energy, capacity, climate and environmental goals through
383   a sustained and integrated statewide building decarbonization and energy efficiency effort while
384   giving substantial consideration to the affordability and ratepayer bill implications of such effort.
385   The council shall: (i) review and approve program plans and budgets; (ii) work with program
386   administrators in preparing energy resource assessments; (iii) determine the economic, system
387   reliability, climate and air quality benefits of efficiency and load management resources; (iv)
388   conduct and recommend relevant research; and (v) recommend long-term building
389   decarbonization, efficiency and load management goals to maximize economic savings and
390   achieve environmental goals. The council shall, as part of its review of the statewide plan,
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391   examine opportunities to offer joint programs providing similar efficiency measures that save
392   more than 1 fuel resource or to coordinate programs targeted at saving more than 1 fuel resource;
393   provided, however, that any costs for joint programs shall be allocated equitably among the
394   programs. Approval of building decarbonization, energy efficiency and demand response plans
395   and budgets shall require a 2/3 vote. The council shall submit its approval and comments to the
396   electric distribution companies and municipal aggregators not later than 3 months after
397   submission of the plan, following which the electric distribution companies and municipal
398   aggregators may make any changes or revisions to the plan to reflect the input of the council.
399  (c) The council may, together with the commissioner of energy resources as chair of the
400   council, retain expert consultants; provided, however, that such consultants shall not have any
401   contractual relationship with an electric or natural gas distribution company doing business in the
402   commonwealth or any affiliate of such company.
403  Annually, the council shall submit to the department a proposal regarding the level of
404   funding required for the retention of expert consultants and reasonable administrative costs. The
405   proposal shall be approved by the department either as submitted or as modified by the
406   department. The department shall allocate funds sufficient for these purposes from the electric
407   and gas energy efficiency funds authorized under sections 19 and 21; provided, however, that
408   such allocation shall not exceed 1 per cent of such funding on an annual basis. The consultants
409   used under this section shall be experts in building decarbonization, load management and
410   energy efficiency and shall be independent.
411  (d) The electric distribution companies and municipal aggregators shall provide quarterly
412   reports to the council on the implementation of the statewide plan. The reports shall include: (i) a
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413   description of the progress in implementing the statewide plan; (ii) a summary of the savings
414   secured to date; (iii) a quantification of the degree to which the activities undertaken pursuant to
415   the statewide plan contribute to meeting the greenhouse gas emission reduction goal set forth by
416   the secretary of energy and environmental affairs pursuant to section 3B of chapter 21N; and (iv)
417   such other information as the council shall reasonably determine. Annually, as part of a quarterly
418   report required under this subsection, the electric distribution companies and municipal
419   aggregators shall, in order to assess the statewide plan's services to low- and moderate-income
420   households, renters and small business ratepayers, provide, consistent with the data aggregation
421   method approved by the department, the: (i) total number of ratepayers per municipality served;
422   (ii) total energy efficiency surcharge dollars paid by ratepayers as part of their utility bills per
423   municipality served; and (iii) total incentives provided by the program administrators by
424   municipality served, delineated by utility and sector, including residential, residential low-
425   income and commercial and industrial. The electric distribution companies and municipal
426   aggregators shall provide an annual report to the department and the joint committee on
427   telecommunications, utilities and energy on the implementation of the plan. The annual report
428   shall include descriptions of the programs, expenditures, cost-effectiveness and savings and other
429   benefits during the previous year and a quantification of the degree to which the activities
430   undertaken pursuant to each plan contribute to meeting all greenhouse gas emission limits and
431   sublimits imposed by law. The quarterly and annual reports shall be made available to the
432   public.
433  SECTION 17. Subsection (d) of section 21 of said chapter 25, inserted by section 16, is
434   hereby amended by striking out paragraph (2).
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435  SECTION 18. Said chapter 25 is hereby further amended by adding the following
436   section:-
437  Section 24. (a) The department shall maintain a real-time, online, retail residential
438   customer bill assessment dashboard, which shall use bar charts, line charts or other visual
439   representations to facilitate public understanding of both current and historical bill components
440   charged to retail residential customers by each gas company and electric company, as defined in
441   section 1 of chapter 164. The dashboard shall also include a summary explanation of each
442   customer bill component and the corresponding utility cost recovery mechanism. The department
443   shall make the dashboard publicly available in a machine-readable format.
444  (b) The department shall also include an analysis of the benefits of any clean energy,
445   greenhouse gas reduction, energy efficiency and demand response programs and procurements
446   and any other programs, procurements or investments funded, in whole or in part, by electric or
447   gas utility customers on such dashboard, as deemed appropriate by the department. Any
448   quantitative analysis shall include the direct and indirect electric system benefits of such
449   programs, procurements and investments, such as system reliability and avoided energy costs,
450   indirect climate, health and economic benefits and any other benefits deemed appropriate by the
451   department. The department shall develop such analysis with the department of energy resources,
452   in consultation with the office of the attorney general.
453  (c) The department shall conduct periodic comprehensive customer bill assessment
454   investigations, which shall include, but not be limited to, identifying: (i) each cost component of
455   the residential customer bills for each gas company and electric company and each associated
456   utility cost recovery mechanism and regulatory approval process; (ii) the annual rate increase for
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457   each cost component for the previous 10 years; (iii) the specific authorization, whether by
458   statute, regulation, department order or otherwise, of each cost component appearing on a gas or
459   electric company residential customer’s bill and the date that the cost component was first
460   authorized; (iv) a comparison of cost components, individually or grouped as deemed
461   appropriate by the department, to current and historical cost components charged by investor
462   owned utilities in the states of Maine, Vermont, New Hampshire, Rhode Island and Connecticut;
463   and (v) the current and average total cost for each cost component to each residential customer
464   class per kilowatt-hour or per therm, and on a monthly basis for a typical user in each rate class.
465   The investigations shall also consider whether it is in the public interest to establish a maximum
466   threshold for the amount charges assessed to gas or electric company residential customers may
467   change from one month to another month and, if so, what the appropriate threshold should be.
468   The department shall solicit public comment during the course of its investigation. The
469   department shall complete an initial comprehensive customer bill assessment investigation
470   within 180 days of the effective date of this section, update such investigation thereafter at
471   intervals of not more than 3 years and make the findings of each investigation accessible in the
472   retail residential customer bill assessment dashboard, as described in subsection (a).
473  SECTION 19. Section 2 of chapter 25A of the General Laws, as appearing in the 2024
474   Official Edition, is hereby amended by striking out the second paragraph and inserting in place
475   thereof the following paragraph:-
476  There shall be within the department: (i) a division of energy efficiency, which shall
477   work with the department of public utilities regarding energy efficiency programs; (ii) a division
478   of renewable and alternative energy development, which shall oversee and coordinate activities
479   that seek to maximize the installation of renewable and alternative energy generating sources that
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480   will provide benefits to ratepayers, advance the production and use of biofuels and other
481   alternative fuels as the division may define by regulation and administer the renewable portfolio
482   standard and the alternative portfolio standard; (iii) a division of green communities, which shall
483   serve as the principal point of contact for local governments and other governmental bodies
484   concerning all matters under the jurisdiction of the department of energy resources, with the
485   exception of matters involving the siting and permitting of small clean energy infrastructure
486   facilities; (iv) a division of clean energy procurement, which shall develop resource solicitation
487   plans, administer procurements for clean energy generation and energy services and negotiate
488   and manage contracts with clean energy generation and energy service facilities; and (v) a
489   division of clean energy siting and permitting, which shall establish standard conditions, criteria
490   and requirements for the siting and permitting of small clean energy infrastructure facilities by
491   local governments and provide technical support and assistance to local governments, small
492   clean energy infrastructure facility project proponents and other stakeholders impacted by the
493   siting and permitting of small clean energy infrastructure facilities at the local government level.
494   Each division shall be headed by a director appointed by the commissioner and shall be a person
495   of skill and experience in the field of energy efficiency, renewable energy or alternative energy,
496   energy regulation or policy, project development contracting and finance and land use and
497   planning. Each director shall be the executive and administrative head of their respective division
498   and shall be responsible for administering and enforcing the law relative to their division and to
499   each administrative unit thereof under the supervision, direction and control of the
500   commissioner. Each director shall serve at the pleasure of the commissioner, receive such salary
501   as may be determined by law and devote full time during regular business hours to the duties of
502   their office. In the case of an absence or vacancy in the office of a director, or in the case of
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503   disability as determined by the commissioner, the commissioner may designate an acting director
504   to serve as director until the vacancy is filled or the absence or disability ceases. The acting
505   director shall have all the powers and duties of the director and shall have similar qualifications
506   as the director.
507  SECTION 20. Section 3 of said chapter 25A, as so appearing, is hereby amended by
508   inserting after the definition of “Clean peak resource” the following definition:-
509  “Clean thermal energy”, energy derived from renewable and nonfossil sources that can be
510   delivered through technology that moves or captures heat rather than produces it through
511   combustion, including, but not limited to, geothermal energy and energy derived from
512   wastewater, waste heat, solar sources, ambient air sources or other noncombustion sources;
513   provided, however, that such energy shall not emit a greenhouse gas as defined in section 1 of
514   chapter 21N; and provided further, that such energy may be delivered as a product to a
515   distributed network of buildings from a central location and may take the form of, or rely upon,
516   hot water or steam.
517  SECTION 21. Said section 3 of said chapter 25A, as so appearing, is hereby further
518   amended by inserting after the definition of “Energy savings” the following definition:-
519  “Geothermal energy”, energy derived from (i) surface and subsurface ground sources,
520   including bedrock and the earth beneath the bedrock; (ii) surface water, including the rivers,
521   ponds and lakes within the commonwealth and the sea adjacent to the commonwealth; and (iii)
522   subsurface water within the commonwealth, including groundwater, springs and aquifers;
523   provided, however, that such energy shall not emit a greenhouse gas as defined in section 1 of
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524   chapter 21N; and provided further, that such energy may take the form of deep geothermal
525   energy.
526  SECTION 22. Section 6 of said chapter 25A, as so appearing, is hereby amended by
527   striking out, in line 63, the word “and”.
528  SECTION 23. Said section 6 of said chapter 25A, as so appearing, is hereby further
529   amended by striking out clause (15) and inserting in place thereof the following 2 clauses:-
530  (15) develop and promulgate regulations, criteria, guidelines, standards, standard
531   conditions, requirements and procedures that establish parameters for the siting, zoning, review
532   and permitting of small clean energy infrastructure facilities by a local government pursuant to
533   section 21; and
534  (16) develop resource solicitation plans, conduct procurements pursuant to such plans as
535   approved by the department of public utilities and negotiate and execute contracts with clean
536   energy generation and energy services providers pursuant to section 22.
537  SECTION 24. Section 7 of said chapter 25A, as so appearing, is hereby amended by
538   striking out, in line 21 and 22, the words “with total storage capacity of over fifty thousand
539   gallons”.
540  SECTION 25. Said Section 7 of said chapter 25A, as so appearing, is hereby further
541   amended by striking out the third paragraph and inserting in place thereof the following 2
542   paragraphs:-
543  All electric companies, gas companies, transmission companies, distribution companies,
544   suppliers and aggregators, as defined in section 1 of chapter 164, and suppliers of natural gas,
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545   including aggregators, marketers, brokers and marketing affiliates of gas companies, excluding
546   gas companies, as defined in said section 1 of said chapter 164, engaged in distributing or selling
547   electricity or natural gas in the commonwealth shall make accurate reports to the department in
548   such form and at such times, which shall be not less than quarterly, as the department shall
549   require pursuant to this section. Each such company, supplier and aggregator shall report semi-
550   annually to the department the average of all rates charged for default, low-income and standard
551   offer service to each customer class and for each sub-class within the residential class,
552   respectively; provided, however, that all such rate information so reported pursuant to this
553   paragraph shall be deemed public information, and no such rate information shall be protected as
554   trade secrets, confidential, competitively sensitive or other proprietary information pursuant to
555   section 5D of chapter 25. Each such company, supplier and aggregator shall report to the
556   department, in such form and at such times as the department shall require, detailed and accurate
557   information, including, but not limited to, data regarding number of customers, load served,
558   amounts billed to customers in dollars, renewable and clean energy attribute certificate purchases
559   and supply product offerings. The department may make such information, or aggregates of such
560   information, available to the public on its website.
561  The department may require resellers of petroleum products doing business in the
562   commonwealth, including retail heating oil and propane suppliers, to report reasonable data on
563   price, inventory and product delivery in a form determined by the department and may
564   promulgate rules or regulations ensuring residential heating oil or propane prices are provided to
565   consumers in a clear and conspicuous manner. The department shall maintain any data collected
566   under this section and shall only publicly disclose any such data in an aggregate and deidentified
567   manner.
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568  SECTION 26. Section 10 of said chapter 25A, as so appearing, is hereby amended by
569   striking out, in line 57, the figure “164” and inserting in place thereof the following figure:- 21A.
570  SECTION 27. Subsection (a) of section 11F of said chapter 25A, as so appearing, is
571   hereby amended by striking out clauses (5) and (6) and inserting in place thereof the following 5
572   clauses:- (5) an additional 3 per cent of sales each year thereafter until December 31, 2026; (6)
573   an additional 1 per cent of sales thereafter until December 31, 2030; (7) an additional 3 per cent
574   of sales each year thereafter until December 31, 2033; (8) an additional 2 per cent of sales each
575   year thereafter until December 31, 2036; and (9) an additional 1 per cent of sales each year
576   thereafter.
577  SECTION 28. Section 11F½ of said chapter 25A, as so appearing, is hereby amended by
578   striking out subsection (a) and inserting place thereof the following subsection:-
579  (a) The department shall establish an alternative energy portfolio standard for all retail
580   electricity suppliers selling electricity to end-use customers in the commonwealth. Every retail
581   electric supplier providing service under contracts executed or extended on or after January 1,
582   2009 shall provide a minimum percentage of kilowatt-hour sales, as determined by the
583   department, to end-use customers in the commonwealth from alternative energy generating
584   sources, and the department shall annually thereafter determine the minimum percentage of
585   kilowatt-hour sales to end-use customers in the commonwealth, which shall be derived from
586   alternative energy generating sources. For the purposes of this section, “alternative energy
587   generating source” shall mean a source which generates energy using any of the following: (i)
588   combined heat and power; (ii) flywheel energy storage; (iii) energy efficient steam technology;
589   (iv) fuel cells; (v) any facility that generates useful thermal energy using sunlight, biomass,
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590   biogas, liquid biofuel or waste-to-energy that is a component of either conventional municipal
591   solid waste plant technology in commercial use or naturally occurring temperature differences in
592   ground, air or water, whereby 1 megawatt-hour of alternative energy credit shall be earned for
593   every 3,412,000 British thermal units of net useful thermal energy produced and verified through
594   an on-site utility grade meter or other means satisfactory to the department; ; or (vi) any other
595   alternative energy technology approved by the department under an administrative proceeding
596   conducted under chapter 30A; provided, however, that facilities using biomass fuel shall be low-
597   emission and use efficient energy conversion technologies and fuel that is produced by means of
598   sustainable forestry practices; provided, further, that no biomass or combined heat and power
599   source shall be eligible for qualification under this section unless it has submitted a complete
600   application for qualification to the department on or before January 1, 2028; provided further,
601   that any application submitted after such date shall be deemed ineligible for qualification;
602   provided further, that for the purposes of this section, “complete application” shall mean an
603   application that includes all information and documentation required by the department’s
604   regulations for qualification under this section, as in effect on the date the application is
605   submitted. The following technologies and fuels shall not be considered alternative energy
606   generating sources: (i) coal; (ii) petroleum coke; (iii) oil; (iv) natural gas, except when used in
607   combined heat and power or as a biogas generating useful thermal energy or fuel cell
608   technology; (v) construction and demolition debris, including, but not limited to, chemically-
609   treated wood; and (F) nuclear power.
610  SECTION 29. Section 11F ¾ of said chapter 25A, as so appearing, is hereby amended by
611   striking out, in line 39, the words “(10) biomass fuel; and (11)” and inserting in place thereof the
612   following words:- and (10).
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613  SECTION 30. Section 11G of said chapter 25A, as so appearing, is hereby amended by
614   striking out, in lines 2, 4, 10, 14 and 15, the word “energy” and inserting in place thereof, in each
615   instance, the following words:- building decarbonization and energy.
616  SECTION 31. Said section 11G of said chapter 25A, as so appearing, is hereby further
617   amended by striking out, in line 11, the word “weatherization” and inserting in place thereof the
618   following words:- building decarbonization, weatherization.
619  SECTION 32. Said chapter 25A is hereby further amended by striking out section 14, as
620   so appearing, and inserting in place thereof the following section:-
621  Section 14. (a) A state agency, building authority, local governmental body or the
622   judiciary may contract for energy conservation, building decarbonization and energy efficiency
623   projects that have a total project cost of not more than $300,000, directly and without further
624   solicitation, with electric and gas utilities, their subcontractors, contractors certified by the
625   division of capital asset management and maintenance and other providers of energy
626   conservation, building decarbonization and energy efficiency services authorized under sections
627   19 and 21 of chapter 25 and section 11G. For the purposes of this section, “energy conservation,
628   building decarbonization and energy efficiency projects” shall mean projects to promote energy
629   conservation, building decarbonization and energy efficiency, including, but not limited to: (i)
630   energy conserving modification to windows and doors; (ii) caulking and weatherstripping; (iii)
631   insulation; (iv) automatic energy control systems; (v) hot water systems; (vi) equipment required
632   to operate variable steam, hydraulic and ventilating systems; (vii) plant and distribution system
633   modifications; (viii) devices for modifying fuel openings and thermal conduits; (ix) electrical or
634   mechanical motor or furnace ignition systems; (x) utility plant system conversions; (xi)
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635   replacement or modification of lighting fixtures; (xii) energy recovery systems; (xiii) on-site
636   electrical generation equipment using new renewable energy generating sources as defined in
637   section 11F; (xiv) decarbonization activities; and (xv) cogeneration systems.
638  (b) For purposes of this section, “total project cost” shall mean all construction costs of
639   an energy conservation project applicable to a discrete building or property, whether borne by
640   the utility, state agency, building authority, local governmental body or the judiciary, including,
641   but not limited to, the costs associated with equipment purchase and installation of such
642   equipment. Ancillary services provided at no cost by utilities, such as auditing and design, shall
643   not be considered part of project cost.
644  (c) A state agency, building authority, local governmental body or the judiciary may pay
645   for such energy conservation, building decarbonization and energy efficiency projects through
646   additions to their monthly utility bills.
647  (d) Sections 44A to 44M, inclusive, of chapter 149 and section 39M of chapter 30 shall
648   not apply to contracts entered into under this section.
649  (e) Notwithstanding subsection (a), the division of capital asset management and
650   maintenance may contract for energy conservation, building decarbonization and energy
651   efficiency projects that have a total project cost of not more than $500,000, directly and without
652   further solicitation, with electric and gas utilities, their subcontractors, contractors certified by
653   the division and other providers of such energy conservation, building decarbonization and
654   energy efficiency projects authorized under sections 19 and 21 of chapter 25 and section 11G.
655  SECTION 33. Said chapter 25A is hereby further amended by inserting after section 17
656   the following section:-
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657  Section 17A. (a) The department may develop a statewide energy storage incentive
658   program to encourage the continued development of energy storage resources connected to the
659   electric distribution system throughout the commonwealth. If the department develops the
660   program, the department shall promulgate rules and regulations implementing the program
661   which: (i) promote the orderly transition to a stable and self-sustaining energy storage market at
662   a reasonable cost to ratepayers; (ii) consider underlying system costs, including, but not limited
663   to, storage costs, balance of system costs, installation costs and soft costs; (iii) take into account
664   any federal or state incentives; (iv) minimize direct and indirect program costs and barriers; (v)
665   consider environmental benefits, energy demand reduction, distribution system benefits and
666   other avoided costs provided by energy storage resources; (vi) encourage energy storage resource
667   deployment where it can provide benefits to the distribution system; (vii) ensure that the costs of
668   the program are shared collectively among all ratepayers of the distribution companies; and (viii)
669   promote investor confidence through long-term incentive revenue certainty and market stability.
670  (b) If the department proposes a tariff-based mechanism for the incentive program under
671   this section, such program may include, to the extent feasible, both energy and environmental
672   attributes, as defined in section 22. Environmental attributes of the energy storage resources
673   receiving incentives pursuant to this section shall be eligible for use by retail electric suppliers
674   for compliance with their obligations pursuant to section 17.
675  SECTION 34. Section 19 of said chapter 25A, as appearing in the 2024 Official Edition,
676   is hereby amended by striking out subsection (a) and inserting in place thereof the following
677   subsection:-
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678  (a) There shall be an Electric Vehicle Adoption Incentive Trust Fund to be expended,
679   without further appropriation, by the department of energy resources for funding electric vehicle
680   incentive programs consistent with this section. The fund shall be credited with: (i) money from
681   public and private sources, including gifts, grants and donations; (ii) interest earned on such
682   money; (iii) any other money authorized by the general court and specifically designated to be
683   credited to the fund; and (iv) any funds provided from other sources; provided, that the
684   department shall, subject to the availability of sufficient proceeds, rely on the RGGI Auction
685   Trust Fund established in section 35II of chapter 10 to fund the Electric Vehicle Adoption
686   Incentive Trust Fund and the green communities program established in section 10. The
687   department shall expend amounts from the Electric Vehicle Adoption Incentive Trust Fund
688   sufficient to pay rebates and other financial incentives to all parties qualified to receive them
689   pursuant to subsections (b) to (d), inclusive. No expenditure from the Electric Vehicle Adoption
690   Incentive Trust Fund shall cause the fund to be deficient at the close of a fiscal year. Revenues
691   deposited in the fund that are unexpended at the end of a fiscal year shall not revert to the
692   General Fund and shall be available for expenditure in the following fiscal year. If, in the
693   estimate of the commissioner, rebates and other financial incentives paid or projected to be paid
694   to consumers are likely to exceed the revenue available in such fund during the current fiscal
695   year or the 12 months ensuing immediately thereafter, the commissioner shall make additional
696   funds available as needed from alternative compliance payments collected pursuant to sections
697   11F, 11F ½, and 17.
698  SECTION 35. Subsection (d) of section 21 of said chapter 25A, as so appearing, is
699   hereby amended by adding the following paragraph:-
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700  (3) Where projects are proposed in municipalities under the jurisdiction of the Cape Cod
701   commission or Martha’s Vineyard commission, upon certifying an application is complete, the
702   municipality shall file such application with the applicable commission as required by chapter
703   716 of the acts of 1989 or chapter 831 of the acts of 1977. The commission shall complete its
704   review and issue a decision within 90 days of receipt of such application from the municipality,
705   at which time the municipality shall commence its review process. If a municipality under the
706   jurisdiction of the Cape Cod commission or Martha’s Vineyard commission fails to issue a final
707   decision within 11 months of the commission issuing its decision, a constructive approval permit
708   shall be issued by the local government that includes the common conditions and requirements
709   established by the department for the type of small clean energy infrastructure facility under
710   review.
711  SECTION 36. Said chapter 25A is hereby further amended by adding the following 5
712   sections:-
713  Section 22. (a) As used in this section, the following words shall have the following
714   meanings unless the context clearly requires otherwise:
715  “Clean energy generation”, electrical energy output, or that portion of the electrical
716   energy output, excluding any electrical energy utilized for parasitic load of a clean existing
717   generation unit, that qualifies under clean energy standard regulations established pursuant to
718   subsection (c) of section 3 of chapter 21N.
719  “Clean energy solicitation”, a competitive solicitation for clean energy associated
720   environmental attributes or energy services completed by the department conducted pursuant to
721   this section.
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722  “Commercial operation date”, the date defined in a contract on which an energy
723   generation project is deemed to be fully capable of delivering power to the grid on a commercial
724   basis.
725  “Distribution company”, a distribution company as defined in section 1 of chapter 164.
726  “Energy services”, operation of infrastructure that increases the efficiency, deliverability
727   or reliability of clean energy generation or reduces the cost of clean energy generation, including,
728   but not limited to, transmission, advanced transmission, energy storage, load management and
729   demand response technologies.
730  “Environmental attributes”, all present and future attributes under any and all
731   international, federal, regional, state or other law or market, including, but not limited to, all
732   credits or certificates that are associated, either now or by future action, with unit specific clean
733   energy generation, including, but not limited to, those provided for in regulations promulgated
734   pursuant to subsection (c) of section 3 of chapter 21N and sections 11F and 17 of this chapter.
735  “Long-term contract”, a contract for a period of not more than 30 years.
736  (b) Notwithstanding any general or special law to the contrary, in order to maximize the
737   commonwealth’s ability to achieve compliance with limits and sublimits established pursuant to
738   sections 3 and 3A of chapter 21N, the department shall investigate the necessity, costs and
739   benefits of solicitations for environmental attributes or energy services, competitively solicit for
740   environmental attributes or energy services established pursuant to said sections 3 and 3A of said
741   chapter 21N and may negotiate and enter into long-term contracts for such environmental
742   attributes or energy services.
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743  (c) The department shall publish a resource solicitation plan, which shall include, but not
744   be limited to: (i) a description of the clean energy generation and energy services needs sufficient
745   to maximize the commonwealth’s ability to achieve compliance with the limits and sublimits
746   established pursuant to sections 3 and 3A of chapter 21N, including resource type, nameplate
747   capacity amounts and commercial operation dates for new resources; (ii) a recommended
748   schedule for clean energy solicitations that the department will conduct within the subsequent 3
749   years following the department of public utilities approval of the resource solicitation plan;
750   provided, however, that the resource solicitation plan shall include procurements for offshore
751   wind energy generation that in total equal not less than 10 gigawatts of aggregate nameplate
752   capacity not later than December 31, 2040; and provided further, that the resource solicitation
753   plan shall include solar procurements that in total equal 10 gigawatts of aggregate nameplate
754   capacity not later than December 31, 2040; (iii) economic development objectives and
755   requirements for the clean energy solicitations; (iv) a mechanism for the distribution companies
756   to recover the costs associated with long-term contracts for environmental attributes or energy
757   services entered into by the department under this section, including any administrative costs to
758   support the department’s requirements under this section; and (v) a review of the previous clean
759   energy solicitations, if applicable, and recommendations to make it likely that future solicitations
760   will improve on the results of earlier ones. The department shall consult with the department of
761   public utilities and the office of the attorney general in the development of the resource
762   solicitation plan under this subsection prior to filing at the department of public utilities;
763   provided, however. That any ex parte rules established by the department of public utilities shall
764   not apply to such consultation process. The department may revise and resubmit the resource
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765   solicitation plan to the department of public utilities if the department is seeking a revised
766   schedule of procurements or additional procurements.
767  (d) As part of the resource solicitation plan, the department shall review the impact of any
768   contracted environmental attributes on portfolio standards and existing clean energy generation
769   resources and shall provide any legislative recommendations as appropriate.
770  (e) The department shall file the resource solicitation plan and its recommendations with
771   the department of public utilities. The department of public utilities shall review the resource
772   solicitation plan and recommendations to determine whether the resource solicitation plan is a
773   reasonable, appropriate and cost-effective mechanism to achieve the goals of this section. The
774   department of public utilities shall approve, approve with modifications or reject the plan within
775   7 months of submission. Upon approval of the resource solicitation plan, the department of
776   public utilities shall, not later than 3 months thereafter, require the distribution companies to
777   jointly propose tariffs consistent with the approved resource solicitation plan to recover costs
778   associated with all long-term contracts pursuant to this section; provided, however, that the
779   distribution companies shall not receive any remuneration, benefit or fee to compensate for costs
780   associated with such contracts. The tariffs shall apportion costs associated with such contracts to
781   be recovered from ratepayers among the distribution companies.
782  (f) The method for the clean energy solicitations shall be proposed by the department and
783   shall utilize a competitive bidding process. The department shall consult with the attorney
784   general and may consult with other state agencies as applicable regarding the choice of
785   solicitation methods. The department may coordinate any solicitation under this section with
786   other states, municipal light plants, a municipality or group of municipalities with an approved
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787   municipal load aggregation plan pursuant to section 134 of chapter 164 or other governmental
788   and nongovernmental organizations; provided, however, that the department shall describe any
789   impacts that such coordination may have on the solicitation, including any impacts to nameplate
790   capacity amounts or quantities of clean energy generation attributes sought in its solicitation.
791   After notice and the opportunity for public comment, the department shall proceed with the clean
792   energy solicitation. The department may competitively solicit proposals for long-term contracts
793   for environmental attributes or energy services or a combination of both. The department may
794   consult with other states, federal agencies and regional organizations including, but not limited
795   to, ISO New England Inc. or its successor; provided, however, that when reasonable proposals
796   have been received, the department shall make or cause to be made filings as necessary through
797   the appropriate jurisdictional mechanism and enter into long-term contracts that are consistent
798   with the limits and sublimits established pursuant to chapter 21N.
799  (g) Each solicitation shall require that bidders provide: (i) documentation reflecting the
800   bidder’s demonstrated commitment to workforce or economic development within the
801   commonwealth; (ii) a statement of intent concerning efforts that the bidder and its contractors
802   and subcontractors will make to promote workforce or economic development in the
803   commonwealth through the project; (iii) documentation reflecting the bidder’s demonstrated
804   commitment to expand workforce and supplier diversity, equity and inclusion; (iv)
805   documentation as to whether the bidder and its contractors and subcontractors participate in a
806   state or federally certified apprenticeship program and the number of apprentices the
807   apprenticeship program has trained to completion for each of the last 5 years; (v) a statement of
808   intent concerning how or if the bidder and its contractors and subcontractors intend to utilize
809   apprentices on the project; (vi) documentation relative to the bidder and its contractors and
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810   subcontractors regarding their history of compliance with chapters 149, 151, 151A, 151B and
811   152, 29 U.S.C. § 201, et seq. and applicable federal antidiscrimination laws; (vii) documentation
812   that the bidder and its contractors and subcontractors are currently, and will remain, in
813   compliance with chapters 149, 151, 151A, 151B, and 152, 29 U.S.C. § 201, et seq. and
814   applicable federal anti-discrimination laws for the duration of the project; (viii) documentation of
815   the bidder’s history with picketing, work stoppages, boycotts or other economic actions against
816   the bidder and a description or plan on how the bidder intends to prevent or address such actions;
817   (ix) documentation relative to whether the bidder and its contractors have been found in violation
818   of state or federal safety regulations in the previous 10 years; and (x) a plan for benefits from the
819   project for moderate and low-income ratepayers in the commonwealth. The department may
820   require a wage bond or other comparable form of insurance in an amount to be set by the
821   department to ensure compliance with law, certifications or department obligations. The
822   department shall give preference for proposals that demonstrate that their plans provide benefits
823   to the commonwealth and demonstrate commitment to secure those benefits through firm and
824   binding agreements or contracts. The electric distribution companies may provide the department
825   technical advice on the costs and benefits of the proposals.
826  (h) Each solicitation shall notify bidders that bidders shall be disqualified from the
827   solicitation if the bidder has been debarred by the commonwealth for the entire term of the
828   debarment.
829  (i) Bidders shall, in a timely manner, provide documentation and certifications as
830   required by law or otherwise directed by the department. For the purpose of considering any
831   contract adjustments that may be requested pursuant to subsection (j), bidders shall include a
832   separate confidential bid file containing key information regarding assumed capital costs,
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833   financing costs, inflation rates, tax benefits, energy production profiles and similar information
834   on which the bid is based. Incomplete or inaccurate information may be grounds for
835   disqualification, dismissal or other action deemed appropriate by the department. Proposals
836   received pursuant to a solicitation under this section shall be subject to review by the department,
837   in consultation with the executive office of economic development, the executive office of
838   energy and environmental affairs, the supplier diversity office and other state agencies as
839   applicable. The department may request that other state agencies consulted pursuant to this
840   subsection review and score proposals on specific criteria as established in the clean energy
841   solicitation. Proposals received pursuant to a solicitation under this section may be subject to
842   review by the electric distribution companies in order for such companies to develop and provide
843   technical advice.
844  (j) The department shall issue a final, binding determination of the selected bid or bids;
845   provided, however, that the final contract or contracts executed shall be subject to review by the
846   department of public utilities. The department shall propose draft long-term contracts and take all
847   reasonable actions to structure the contracts, pricing or administration of the products purchased
848   under this section to contribute towards achieving compliance with limits and sublimits
849   established pursuant to sections 3 and 3A of chapter 21N in a cost-effective manner that
850   minimizes rate-payer impacts. The department shall consider the use of pricing mechanisms or
851   pricing structures, including, but not limited to, indexed pricing. Such contracts shall provide for
852   mechanisms that allow the department and the bid awardee to request upward or downward price
853   adjustments for each bid or long-term contract, subject to review and approval by the department
854   of public utilities and shall protect ratepayers and allow projects to be financed and begin and
855   complete construction. Such mechanisms shall provide that, whether before or after contract
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856   signing, after the award of a bid but prior to the commercial operation date the bidder or
857   department may request upward or downward price adjustments to the bid or long-term contract
858   price with the department of public utilities. Price adjustments may be requested only to account
859   for claimed substantial and unforeseeable changes in: (i) law occurring after the bid submission
860   and prior to the time that the project achieves its commercial operation date; or (ii) costs that are
861   beyond the reasonable control of the requesting party. A party requesting a price adjustment shall
862   provide supporting documentation demonstrating how the assumptions in the confidential bid
863   file have changed as a result of the claimed substantial and unforeseeable changes in law or
864   costs. The request shall include detailed calculations of the impact on project costs of the
865   substantial and unforeseeable changes claimed.
866  (k) Long-term contracts executed pursuant to this section shall be subject to the approval
867   of the department of public utilities. The department of public utilities shall consider the
868   potential costs and benefits of the each proposed long-term contract and shall approve a long-
869   term contract upon a finding that the contract is cost-effective and consistent with the limits and
870   sublimits established pursuant to chapter 21N, taking into account the factors outlined in this
871   section, consistency with the approved resource solicitation plan and the department’s
872   recommendations. The department of public utilities shall complete its review of long-term
873   contracts submitted for its approval not later than 90 days after the contracts are filed by the
874   department of energy resources.
875  (l) As part of its consideration of the merits of any price adjustment requested pursuant to
876   subsection (j), the department of public utilities shall first determine, based on the information
877   provided pursuant to said section (j), whether the request has been submitted to account only for
878   substantial and unforeseeable changes in: (i) law occurring after the bid submission and prior to
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879   the time that the project achieves its commercial operation date; or (ii) costs that are beyond the
880   reasonable control of the requesting party. The department of public utilities may, in consultation
881   with the office of the attorney general, approve an upward or downward price adjustment only
882   upon a finding that the requested adjustment protects ratepayers, is consistent with the limits and
883   sublimits established pursuant to chapter 21N and reflective only of costs and impacts beyond
884   the reasonable control of the requesting party.
885  (m) The department may retire any environmental attributes purchased pursuant to
886   approved long-term contracts under this section on behalf of the commonwealth to be used
887   toward satisfying compliance with the limits and sublimits established pursuant to sections 3 and
888   3A of chapter 21N and any regulations or programs established pursuant to sections 3 and 6 of
889   said chapter 21N or sections 11F and 17 of this chapter. If any retired environmental attributes
890   are eligible under a clean, renewable, clean peak or other energy portfolio standard established
891   by the department or the department of environmental protection, the portfolio standard
892   minimum obligations of suppliers subject to such standards may be reduced in proportion to any
893   eligible environmental attributes retired pursuant to this section, subject to the discretion of the
894   department and the department of environmental protection.
895  (n) There shall be a separate, non-budgeted special revenue fund known as the Central
896   Procurement Fund, which shall be administered by the department, without further appropriation,
897   for funding long-term contracts consistent with this section. The fund shall be credited with: (i)
898   funds or revenue collected by distribution companies pursuant to a tariff approved by the
899   department of public utilities in furtherance of the objectives and requirements of this section;
900   (ii) revenue from appropriations or other money authorized by the general court and specifically
901   designated to be credited to the fund; (iii) interest earned on such funds or revenues; (iv) bid fees
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902   collected by the department from participants in clean energy solicitations conducted pursuant to
903   this section; (v) other revenue from public and private sources, including gifts, grants and
904   donations; and (vi) any funds provided from other sources. All amounts credited to the fund shall
905   be used solely for activities and expenditures consistent with the public purposes of this section,
906   including the funding of contracts and the ordinary and necessary administrative and personnel
907   expenses of the department related to the administration and operation of the fund and
908   performance of the duties established by this section. Revenues deposited in the fund that are
909   unexpended at the end of a fiscal year shall not revert to the General Fund and shall be available
910   for expenditure in the following fiscal year. No expenditure made from the fund shall cause the
911   fund to be in deficit at any point.
912  Section 23. (a) The department shall establish a state-led offshore wind pre-development
913   and project acceleration program. The program shall enable the commonwealth to partner with
914   offshore wind developers through co-investment or other suitable state financing mechanisms in
915   pre-development activities specific to individual projects. The primary objectives of the program
916   shall be to: (i) accelerate project timelines; (ii) streamline the readiness of offshore wind
917   generation projects; (iii) reduce project risk, including, but not limited to, concerns related to
918   federal permitting, supply chain and interconnection obstacles; (iv) support workforce growth
919   and community buy-in; and (v) enhance price competitiveness and transparency for clean energy
920   solicitations conducted pursuant to section 22.
921  (b) The offshore wind pre-development and project acceleration program shall enable the
922   department to partner with developers to facilitate project progress and ensure that developers
923   are ready to advance rapidly to construction and commercial operation, consistent with the
924   schedules and resource needs identified in the resource solicitation plan pursuant to section 22.
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925  (c) Eligible pre-development activities for state co-investment shall prioritize projects
926   that have previously participated in the department’s procurement process. Eligible pre-
927   development activities may include, but shall not be limited to: (i) permitting and site assessment
928   studies; (ii) onshore and nearshore cable route surveys; (iii) fisheries and environmental science
929   studies; (iv) pre-front end engineering design; (v) engineering and design work that informs
930   permitting and project procurement; (vi) related transmission planning; (vii) engineering work
931   required prior to execution of a contract; and (viii) support for the timely utilization of regional
932   supply chain and port infrastructure.
933  (d) The department may fund the offshore wind pre-development and project acceleration
934   program through the Central Procurement Fund established pursuant to section 22,
935   appropriations by the general court, federal funds or other public or private sources. Any
936   financial arrangement under the offshore wind pre-development and project acceleration
937   program shall include a mechanism to ensure recovery of any co-investment capital provided by
938   the commonwealth upon the project reaching commercial operation.
939  Section 24. (a) The commissioner may work with the electric distribution companies,
940   municipal aggregators with certified energy plans and municipal light plants in the development
941   of building decarbonization and energy efficiency plans and shall promulgate such regulations as
942   may be necessary to carry out the purposes of this section.
943  (b) (1) Annually, each municipal light plant shall file with the commissioner a building
944   decarbonization and energy efficiency plan that offers programs to all qualified customers,
945   including, but not limited to: (i) building energy assessments to identify building decarbonization
946   and energy efficiency opportunities; (ii) energy efficiency measures; (iii) building
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947   decarbonization measures; (iv) home energy scorecards at the time of a building energy
948   assessment as approved by the department; and (v) demand reduction and load management
949   measures.
950  (2) Each building decarbonization and energy efficiency plan shall be filed with the
951   commissioner, not later than October 31.
952  (3) Each building decarbonization and energy efficiency plan shall include: (i) annual
953   goals for delivery of energy efficiency measures, building decarbonization measures and demand
954   reduction and load management measures; (ii) an annual operating budget enumerating income
955   and expenses necessary to carry out the municipal plan; (iii) a statement of how the plan will be
956   publicized to qualified customers; and (iv) proposed coordination with the weatherization
957   program approved by the United States Department of Energy to ensure that weatherization
958   programs provided pursuant to this section do not make a customer ineligible to receive the
959   energy audit benefits offered under the federal residential conservation service.
960  (4) Nothing in this section shall impose a duty upon any customer to implement any
961   measures recommended in an energy assessment audit report.
962  (c)(1) The commissioner of the department, as chair of the energy efficiency advisory
963   council established pursuant to subsection (a) of section 22 of chapter 25, shall direct the electric
964   distribution companies and municipal aggregators with certified energy plans to develop and
965   implement a statewide building decarbonization and energy efficiency plan that complies with
966   sections 19 to 21, inclusive, of chapter 25 including, but not limited to, the offer of programs to
967   all qualified customers that support: (i) building energy assessments to identify building
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968   decarbonization and energy efficiency opportunities; (ii) energy efficiency measures; (iii)
969   building decarbonization measures; and (iv) load management measures.
970  (2) Each electric distribution company and municipal aggregators with certified energy
971   plans shall file a decarbonization and energy efficiency plan with the commissioner of energy
972   resources and the commissioner of public utilities, or their respective designees, not later than
973   before October 31, prior to the end of the 3-year term.
974  (3) The filing every 3 years by the electric distribution companies and municipal
975   aggregators with certified energy plans of a statewide decarbonization and energy efficiency plan
976   with the department of public utilities shall satisfy the requirements of this section.
977  (d)(1) Electric distribution companies, municipal aggregators with certified energy plans
978   and municipal light plants shall collect and report electronically to the department and its
979   authorized vendors and implementation partners building data that identifies all buildings or the
980   units therein that received an energy audit, together with the recommendations made and
981   decarbonization or energy efficiency measures installed; provided, however, that the data shall
982   include whether said buildings or the units therein are participating in any demand response and
983   load management programs, building energy use and cost by fuel type, and, where available,
984   heating fuel, existing heating system type, and age of system, home energy score, or any other
985   data the commissioner may request relating to the delivery of the plans. This data shall be
986   reported quarterly to the commissioner. All data collected and reported pursuant to this
987   subsection shall be considered confidential customer data and subject to the requirements of
988   subsection (i) section 21 of chapter 25. In accordance with said subsection (i) of said section 21
989   of said chapter 25, such data shall not be deemed to be a public record as defined in clause
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 990   Twenty-sixth of section 7 of chapter 4 and shall not be subject to demand for production under
 991   section 10 of chapter 66. The department shall aggregate and report customer energy efficiency
 992   and decarbonization data provided by the electric distribution companies, municipal aggregators
 993   with certified energy plans and municipal light plants according to the data aggregation methods
 994   approved by the department. The department shall publish this report not later than 3 months
 995   after the close of each quarter and submit copies to the building decarbonization and energy
 996   efficiency advisory council, the clerks of the house of representatives and the senate and the joint
 997   committee on telecommunications, utilities and energy.
 998  (2) Within 120 days after the last day of each year, each electric distribution company,
 999   municipal aggregators with certified energy plans and municipal light plant shall submit to the
1000   commissioner a report of its activities during the preceding year relating to implementation of its
1001   decarbonization and energy efficiency plan. Included in such report shall be a statement with
1002   respect to the success or lack of success of meeting the goals established in such plan. Within 30
1003   days after receipt thereof, the commissioner shall forward said reports along with a statement of
1004   findings to the joint committee on telecommunications, utilities and energy and the house and
1005   senate committees on ways and means.
1006  (e) The department may annually assess against each utility such amounts as may be
1007   necessary to permit the department to carry out its responsibilities under this section including,
1008   but not limited to, program development, administration and enforcement, certification, training,
1009   registration and inspection programs and public education and promotion expenses, exclusive of
1010   paid advertising. The assessments shall be based upon the intrastate operating revenues of a
1011   utility which are derived from electricity or gas sales within the commonwealth during the
1012   preceding calendar year. The department shall apportion estimated costs for the pending fiscal
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1013   year among all such utilities and shall assess them on a fair and reasonable basis. A utility shall
1014   pay such assessments to the department within 30 days after receipt of notice thereof. The
1015   assessed funds shall be dedicated to the purposes of this section.
1016  The department shall subsequently apportion actual costs among all such utilities and
1017   shall make assessment adjustments for the same for any variation between estimated and actual
1018   costs on a fair and reasonable basis. Such estimated and actual costs shall include indirect costs
1019   and an amount equal to the cost of fringe benefits as established by the secretary of
1020   administration pursuant to section 6B of said chapter 29. Annually, not later than December 31,
1021   the department shall submit a report to the joint committee on telecommunications, utilities and
1022   energy and the senate and house committees on ways and means detailing the variation between
1023   estimated and actual costs and the adjustment made pursuant to such variation.
1024  Section 25. (a) The department shall develop and implement a statewide solar incentive
1025   program to encourage the continued development of solar renewable energy generating sources
1026   by residential, commercial, governmental and industrial electricity customers throughout the
1027   commonwealth. The department shall, after notice and the opportunity for public comment,
1028   promulgate regulations implementing a solar incentive program that promotes a stable solar
1029   development market at a reasonable cost to ratepayers and supports the commonwealth’s ability
1030   to achieve compliance with limits and sublimits established pursuant to sections 3 and 3A of
1031   chapter 21N.
1032  (b) The solar incentive program established by the department shall: (i) consider
1033   underlying system development costs, including, but not limited to, module costs, balance of
1034   system costs, installation and interconnection costs and soft costs; (ii) take into account
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1035   electricity revenues, any federal or state incentives and any substantial changes in such
1036   incentives and in federal policies; (iii) rely on market-based mechanisms or price signals as much
1037   as possible to set incentive levels; (iv) minimize direct and indirect program costs and barriers;
1038   (v) feature a known or easily estimated budget to achieve program goals through use of an
1039   adjustable block incentive, a competitive procurement model, tariff or other declining incentive
1040   framework; (vi) differentiate incentive levels to support diverse installation types and sizes that
1041   provide unique benefits, including, but not limited to, community-shared solar facilities, low-
1042   income solar facilities and municipal or other governmental entity-owned solar facilities, and
1043   which may include differentiation by utility service territory, location or size of the solar
1044   renewable energy generating source; (vii) ensure that the utility customer realizes direct benefits
1045   from the solar incentive program; (viii) include land use restrictions that align with the
1046   commonwealth’s land use priorities; (ix) consider environmental benefits, energy demand
1047   reduction and other avoided costs provided by solar renewable energy generating facilities; (x)
1048   encourage solar generation where it can provide benefits to the distribution system; (xi) ensure
1049   that the costs of the program are shared collectively among all ratepayers of the distribution
1050   companies; (xii) promote investor confidence through long-term incentive revenue certainty and
1051   market stability; and (xiii) include reasonable and appropriate protections for customers.
1052  (c) Attributes, as defined by the department, of the solar photovoltaic facilities receiving
1053   incentives pursuant to this section shall be eligible for use by retail electric suppliers pursuant to
1054   their obligations pursuant to section 11F and section 17, as applicable.
1055  (d) The department may establish a land use and mitigation plan, including establishing
1056   fees for mitigating impacts caused by solar development and projects participating in the
1057   program and receiving incentives pursuant to this section. The department may establish
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1058   requirements for solar incentive program and eligibility requirements for pollinator-friendly solar
1059   installations participating in the program pursuant to this section.
1060  (e) The department shall review solar incentive rates and overall cost impact to ratepayers
1061   to determine if any revisions to the program are necessary. Such review shall occur on a
1062   timetable to be established by the department; provided, however, that such review shall occur
1063   not less than once every 3 years.
1064  Section 26. (a) As used in this section, the following words shall have the following
1065   meanings unless the context clearly requires otherwise:
1066  “Commonwealth smart solar permitting platform”, software, or a combination of
1067   software, that, at a minimum, and consistent with chapter 143, except as otherwise provided in
1068   this section, chapter 40C, section 3 of chapter 470 of the acts of 1973 and other applicable laws
1069   of the commonwealth: (i) allows contractors and other qualified parties to submit, via electronic
1070   means and without the need for follow-up manual review, applications to install or construct a
1071   residential solar energy system; (ii) automatically performs robust code compliance checks and
1072   reviews an application to install or construct such a system; (iii) generates an approval via
1073   electronic means, without the need for follow-up manual review, to a code-compliant application
1074   and issues a permit or permit revision; (iv) accepts online payments of fees or charges if fees or
1075   charges are levied; and (v) issues a permit or permit revision upon receipt of payment.
1076  “Form and format”, the arrangement, organization, configuration, structure or style of, or
1077   methods of delivery of, required information or the substantive equivalent of required
1078   information, except that “form and format” shall not mean the altering of the substance of
1079   information or the addition or omission of information.
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1080  (b) The department shall procure, implement, administer and make available a
1081   commonwealth smart solar permitting platform that, at a minimum: (i) publishes, on a publicly
1082   accessible internet website, all permitting documentation and forms required to construct or
1083   install a residential solar energy system in the commonwealth; (ii) provides customer support and
1084   training to assist users to navigate the commonwealth solar permitting platform; (iii) allows
1085   contractors and other qualified parties to submit, via electronic means 24 hours a day, 7 days a
1086   week except when the permitting platform is down for an upgrade or maintenance, applications
1087   to install or construct a residential solar energy system within the commonwealth; (iv)
1088   automatically performs robust code compliance checks and reviews applications to install or
1089   construct residential solar energy systems up to the maximum capacity allowed by a 200-amp
1090   main service disconnect providing power to a detached 1- or 2-family dwelling including, but not
1091   limited to, a determination of whether an application aligns with the requirements of chapters
1092   40C and chapter 143, except for the second paragraph of section 98 of said chapter 143, and
1093   section 3 of chapter 470 of the acts of 1973; (v) generates an approval via electronic means,
1094   without the need for follow-up manual review, to a code-compliant application and issues a
1095   permit or permit revision; (vi) produces construction documents to be used in the inspection of
1096   the residential solar energy system and for recordkeeping purposes; (vii) generates an inspection
1097   checklist to streamline and improve the quality and thoroughness of the final inspection; (viii) is
1098   capable of processing permit applications for solar energy systems and associated equipment
1099   including, but not limited to, photovoltaic panels, energy storage systems, main electrical panel
1100   upgrades and main breaker derates for detached one- and two-family dwellings; and (ix) is
1101   capable of processing, at a minimum, a substantial majority of permit applications for such
1102   systems in a substantial majority of jurisdictions in the commonwealth.
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1103  (c) The department shall provide access to, and facilitate use of, the commonwealth smart
1104   solar permitting platform to municipalities at no charge. For use of the commonwealth platform,
1105   the department may charge a reasonable fee or charge to contractors, providers of plan reviews
1106   and inspection services and other professionals engaged in the installation or construction of
1107   residential solar energy systems.
1108  (d) Within 18 months of the effective date of this section, a municipality shall allow for
1109   the submission of applications to construct a residential solar energy system either through the
1110   commonwealth smart solar permitting platform or through an alternative automated solar
1111   permitting platform that generates an approval via electronic means, without the need for follow-
1112   up manual review, to a code-compliant application, issues a permit or permit revision and
1113   otherwise satisfies the requirements set forth in subsections (b) and (c) in a manner substantially
1114   equivalent to, or better than, that of the commonwealth platform; provided, however, that such an
1115   alternative platform shall not require a user to submit documentation other than what is required
1116   by the commonwealth platform,
1117  (e) A municipality proposing less than full compliance with subsection (d) shall, within
1118   18 months of the effective date of this section, provide the department a detailed analysis
1119   demonstrating why adopting the commonwealth platform or an alternative platform is not
1120   feasible given the conditions and timeline required in this section and shall propose a secondary
1121   alternative method that, within 24 months of the effective date of this section: (i) allows
1122   contractors and other qualified parties to submit, via electronic means, applications to install or
1123   construct a residential solar energy system; (ii) automatically performs robust code compliance
1124   checks and reviews an application to install or construct such a system; (iii) generates an
1125   approval via electronic means, without the need for follow-up manual review, to a code-
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1126   compliant application and issues a permit or permit revision; (iv) accepts online payments of fees
1127   or charges if fees or charges are levied; and (v) issues a permit or permit revision upon receipt of
1128   payment.
1129  (f) A municipality that allows for the submission of residential solar energy system
1130   applications through the commonwealth smart solar permitting platform or through an alternative
1131   or secondary alternative platform may charge a reasonable fee or charge to contractors, providers
1132   of plan reviews and inspection services and other professionals engaged in the installation or
1133   construction of residential solar energy systems.
1134  (g) A municipality that implements an alternative or secondary alternative automated
1135   solar permitting platform shall submit a compliance report to the department within 60 days of
1136   the municipality’s implementation of the alternative or secondary alternative platform. The
1137   department shall establish guidelines for preparation and submission of the compliance report,
1138   which report shall include, at a minimum: (i) the date the alternative or secondary alternative
1139   system was made available to residential end users, contractors engaged in the installation of
1140   residential solar energy systems and providers of plan reviews and inspection services; (ii) the
1141   software used by the alternative or secondary alternative system; and (iii) clear and convincing
1142   documentation that the alternative or secondary alternative performs the functions set forth in
1143   subsections (b) and (c) in a manner and on a schedule substantially equivalent to, or better than,
1144   that of the commonwealth smart solar permitting platform.
1145  (h) If the department determines that a compliance report submitted pursuant to
1146   subsection (g) is insufficient to verify whether the platform satisfies the requirements set forth in
1147   subsections (b) and (c) in a manner substantially equivalent to, or better than, that of the
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1148   commonwealth platform, the municipality shall grant the department access to the alternative or
1149   secondary alternative platform. The department may: (i) take further action to determine whether
1150   the platform satisfies the requirements set forth in said subsections (b) and (c) in a manner
1151   substantially equivalent to, or better than, that of the commonwealth smart solar permitting
1152   platform; (ii) consistent with state law, make its findings publicly available; and (iii), if it
1153   determines that the platform is not satisfactory, take action to encourage and secure compliance
1154   with said subsections (b) and (c) and subsection (g) and authorize the appropriate parties in the
1155   municipality’s jurisdiction to utilize the commonwealth smart solar permitting platform.
1156  (i) A municipality that implements an alternative or secondary alternative automated
1157   solar permitting platform pursuant to this section shall, commencing on April 1, 2028, submit an
1158   annual report to the department. The department may establish guidelines for the annual reports
1159   required under this paragraph, which report shall include, at a minimum: (i) the number of
1160   permits approved by the municipality for residential solar energy systems through the alternative
1161   or secondary alternative platform and the relevant characteristics of those systems; (ii) the
1162   number of permits approved by the municipality for such systems through means other than the
1163   alternative or secondary alternative platform and the relevant characteristics of those systems;
1164   (iii) documentation demonstrating that the alternative or secondary alternative platform continues
1165   to satisfy the requirements set forth in subsections (b) and (c) in a manner substantially
1166   equivalent to, or better than, that of the commonwealth platform.
1167  (j) If the department determines that the annual report submitted pursuant to subsection
1168   (i) is insufficient to verify that the alternative or secondary alternative automated solar permitting
1169   platform meets the requirements set forth in subsections (b) and (c) in a manner substantially
1170   equivalent to, or better than, that of the commonwealth platform, the municipality shall provide
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1171   the department, at the department’s request, access to the platform. The department may take
1172   further action to determine whether the platform satisfies the requirements set forth in said
1173   subsections (b) and (c) in a manner substantially equivalent to, or better than, that of the
1174   commonwealth platform, may, consistent with state law, make its findings publicly available and
1175   may, if it determines that the platform is not satisfactory, take action to encourage and secure
1176   compliance with said subsections (b) and (c) and subsection (i) and authorize the appropriate
1177   parties in the municipality’s jurisdiction to utilize the commonwealth smart solar permitting
1178   platform.
1179  (k) The department and municipalities shall authorize electronic signatures, stamps, seals
1180   and other certifications and documents as appropriate in order to enable the commonwealth
1181   smart solar permitting platform or an alternative or secondary alternative automated solar
1182   permitting platform to accept the permit application and issue a permit.
1183  (l) To defray the cost of procuring, implementing, administering and making available the
1184   commonwealth smart solar permitting platform, the department may adopt, amend and repeal
1185   rules and regulations providing for the charging of, and setting the amounts of, solar permit fees
1186   to be collected by the department, municipality or a third party.
1187  (m) To satisfy the requirements of this section, the department may, at its discretion,
1188   procure goods and services by means of an advertised competitive bidding process that utilizes a
1189   request for proposals or request for qualifications.
1190  (n) The commissioner shall provide training opportunities at no charge on the use of the
1191   commonwealth smart solar permitting platform to contractors, providers of plan reviews and
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1192   inspection services and other professionals engaged in the installation or construction of
1193   residential solar energy systems.
1194  (o) The commissioner may adopt rules and regulations governing the form and format of
1195   applications for permits, approval documents, specifications and other information exchanged
1196   through the commonwealth smart solar permitting platform or any alternative or secondary
1197   alternative platform.
1198  (p) Notwithstanding any law, rule or regulation to the contrary, the commissioner may
1199   waive requirements related to signatures, stamps, seals, certifications or notarizations, whether
1200   imposed by statute or by state or local regulation and whether imposed by the department or
1201   another department or agency, in order to enable the commonwealth smart solar permitting
1202   platform or any alternative or secondary alternative platform to accept permit applications and
1203   issue permits.
1204  (q) A person exchanging information through either the commonwealth smart solar
1205   permitting platform or an alternative or secondary alternative automated solar permitting
1206   platform in a form and format acceptable to the department shall not be subject to a licensing
1207   sanction, civil penalty, fine, permit disapproval, revocation or other sanction for failure to
1208   comply with a form or format requirement imposed otherwise by statute, ordinance or rule that
1209   requires submission of the information in physical form, including, but not limited to, any
1210   requirement that the information be in a particular form or of a particular size, be submitted with
1211   multiple copies, be physically attached to another document, be an original document or be
1212   signed, stamped, sealed, certified or notarized.
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1213  (r) Neither a public entity nor a public employee shall be liable for any injury caused by
1214   release of a permit through the commonwealth smart solar permitting platform or any alternative
1215   or secondary alternative platform.
1216  SECTION 37. The second paragraph of section 5 of chapter 25B of the General Laws, as
1217   appearing in the 2024 Official Edition, is hereby amended by striking out clause (20) and
1218   inserting in place thereof the following clause:-
1219  (20) Level 1 and Level 2 electric vehicle supply equipment included in the scope of the
1220   ENERGY STAR Program Requirements for Electric Vehicle Supply Equipment, Version 1.2
1221   (Rev. June 2023), shall meet the qualification criteria of that specification.
1222  SECTION 38. Section 9 of said chapter 25B, as so appearing, is hereby amended by
1223   striking out the second paragraph and inserting in place thereof the following paragraph:-
1224  If any efficiency conservation standard issued or approved for publication by the Office
1225   of the United States Secretary of Energy pursuant to the Energy Policy and Conservation Act, 10
1226   C.F.R. §§ 430–431, is withdrawn, repealed or otherwise voided between January 1, 2018 and
1227   January 21, 2021, inclusive, or is withdrawn, repealed or otherwise voided between January 20,
1228   2025 and January 31, 2029, inclusive, the minimum efficiency or conservation requirement
1229   permitted for any product covered by such standard shall be the minimum efficiency or
1230   conservation requirement in effect most recently for the product other than those in effect for the
1231   periods between January 1, 2018, and January 21, 2021, inclusive, and between January 20, 2025
1232   and January 31, 2029, inclusive, and no such product may be sold or offered for sale in the
1233   commonwealth unless it complies with such minimum efficiency or conservation requirement.
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1234  SECTION 39. Chapter 40 of the General Laws is hereby amended by adding the
1235   following section:-
1236  Section 72. Notwithstanding chapters 25 or 164 or any other general or special law to the
1237   contrary, a city or town which accepts this section may by a vote of its town meeting or other
1238   legislative body, prohibit by ordinance, by-law or vote any supplier, energy marketer or energy
1239   broker, as such terms are defined in section 1 of said chapter 164, from executing a new contract
1240   or renewing an existing contract for generation services with any individual residential retail
1241   customer within such city or town. Such prohibition shall not apply to, or otherwise affect, any
1242   supplier selected by a government body that aggregates the load of residential retail customers as
1243   part of a municipal aggregation plan pursuant to section 134, nor shall it apply to, or otherwise
1244   affect, any entity organizing or administering a program pursuant to sections 135, 136 or 137 of
1245   said chapter 164. The attorney general may bring an action under section 4 of said chapter 93A
1246   against any supplier, energy marketer or energy broker to enforce this section and to obtain
1247   restitution, civil penalties, injunctive relief or any other relief available under said chapter 93A.
1248   A city or town that accepts this section shall provide notice to the department of public utilities
1249   not more than 120 days after such acceptance.
1250  SECTION 40. Section 53G of chapter 44 of the General Laws, as appearing in the 2024
1251   Official Edition, is hereby amended by striking out, in line 2, the word “section” and inserting in
1252   place thereof the following words:- section 21 of chapter 25A, section.
1253  SECTION 41. Chapter 143 of the General Laws is hereby amended by inserting after
1254   section 96 the following section:-
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1255  Section 96A. Notwithstanding any general or special law to the contrary, the local energy
1256   code in effect at the time a building permit application is deemed complete by the local permit
1257   granting authority shall govern the design, construction and inspection of the project authorized
1258   by such permit for the duration of construction; provided, however, that work authorized under
1259   the permit proceeds in good faith continuously to completion. For purposes of this section,
1260   temporary delays resulting from weather, labor shortages, material shortages, financing,
1261   litigation, governmental action or other circumstances beyond the permit holder's reasonable
1262   control shall not, by themselves, constitute a failure to proceed in good faith continuously to
1263   completion.
1264  Nothing in this section shall prohibit a permit holder from voluntarily electing to comply
1265   with a subsequently adopted energy code.
1266  SECTION 42. Chapter 149 of the General Laws is hereby amended by inserting after
1267   section 27H the following section:-
1268  Section 27I. All construction on a utility infrastructure impacted by the construction or
1269   installation of infrastructure for clean thermal energy, as defined in section 3 of chapter 25A,
1270   which also requires the excavation, construction or reconstruction of public lands, public rights
1271   of way, public works or public buildings that is not performed by workers directly employed by
1272   a gas company or electric company as defined in section 1 of chapter 164 shall be performed
1273   under this section.
1274  No public authority including, but not limited to, the commonwealth, its subdivisions, a
1275   county, district or a municipality, shall permit or agree to construction by a gas or electric
1276   distribution company that requires the excavation, alteration, reconstruction or repair of public
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1277   lands, works or buildings unless the permit or agreement contains a stipulation requiring
1278   prescribed rates of wages, as determined by the commissioner, to be paid to individuals
1279   performing construction on infrastructure for thermal energy and any associated pipeline work
1280   who are not gas company or electric company employees. Any permit or agreement that does not
1281   contain the stipulation required under this section shall be void and no construction may
1282   commence thereunder. Rates of wages shall be requested by the commissioner or public body
1283   together with the gas company or electric company on whose service territory the public
1284   infrastructure lies and shall be furnished by the commissioner in a schedule containing the
1285   classifications of jobs and the rate of wages to be paid for each job. Said rates of wages shall
1286   include payments to health and welfare plans, pension plans and supplementary unemployment
1287   plans, or, if no such plan is in effect between employers and employees, the amount of such
1288   payments shall be paid directly to employees. Such requests for rates shall be made every 6
1289   months.
1290  Any entity paying less than said rates of wages, including payments to health and welfare
1291   funds, pension plans and supplementary unemployment plans, or the equivalent in wages, on said
1292   works, and any entity accepting for his own use, or for the use of any other person, as a rebate,
1293   gratuity or in any other guise, any part or portion of said wages or health and welfare funds,
1294   pension plans, and supplementary unemployment plans shall have violated this section and shall
1295   be punished or shall be subject to a civil citation or order as provided in section 27C.
1296  An employee claiming to be aggrieved by a violation of this section may, 90 days after
1297   the filing of a complaint with the attorney general, or sooner if the attorney general assents in
1298   writing, and within 3 years after the violation, institute and prosecute in his own name and on his
1299   own behalf, or for himself and for others similarly situated, a civil action for injunctive relief, for
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1300   any damages incurred, and for any lost wages and other benefits pursuant to section 150. An
1301   employee so aggrieved who prevails in such an action shall be awarded treble damages, as
1302   liquidated damages, for any lost wages and other benefits and shall also be awarded the costs of
1303   the litigation and reasonable attorneys’ fees.
1304  SECTION 43. Section 1 of chapter 164 of the General Laws, as appearing in the 2024
1305   Official Edition, is hereby amended by inserting after the definition of “Energy management
1306   services” the following definition:-
1307  “Energy marketer”, any person, entity, firm, partnership, association, private
1308   corporation, or other third-party that contracts with or is otherwise directly engaged and
1309   compensated by a supplier to sell electric generation services, or that contracts with and is
1310   directly compensated by a third-party marketer of the supplier to sell electric generation services
1311   on behalf of a supplier, or that otherwise acts as an agent of such a supplier, and that markets,
1312   advertises, or otherwise offers to sell generation services to retail customers including, but not
1313   limited to, individuals or entities engaged in door-to-door, telemarketing or tabletop interactions
1314   with retail customers; provided however, that “energy marketer” shall not include contractors,
1315   agents or employees engaged in incidental activities where compensation is not tied to customer
1316   enrollment.
1317  SECTION 44. Said section 1 of said chapter 164, as so appearing, is hereby further
1318   amended by striking out the definition of “Gas company” and inserting in place thereof the
1319   following definition:-
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1320  “Gas company”, a corporation originally organized for the purpose of making and selling
1321   or distributing and selling gas within the commonwealth, even though subsequently authorized to
1322   make, distribute or sell electricity or clean thermal energy as defined in section 3 of chapter 25A.
1323  SECTION 45. Section 1A of said chapter 164, as so appearing, is hereby amended by
1324   adding the following subsection:-
1325  (h) Notwithstanding this section or of any other special or general law or regulation to the
1326   contrary, solar generation and energy storage facilities on federal military installations within the
1327   commonwealth shall not be subject to caps or other limits otherwise imposed on the ownership
1328   of solar generation or energy storage by an electric distribution company, provided the costs of
1329   such facilities are not funded by or otherwise recovered from the company’s ratepayers. An
1330   electric distribution company may construct, own and operate solar energy generation facilities
1331   and energy storage facilities on federal military lands and such facilities shall not be required to
1332   receive approval from the department.
1333  SECTION 46. Said chapter 164 is hereby further amended by striking out section 1B, as
1334   so appearing, and inserting in place thereof the following section:-
1335  Section 1B. (a) The department shall define service territories for each distribution
1336   company by March 1, 1998, based on the service territories actually served on July 1, 1997 and
1337   following, to the extent possible, municipal boundaries. After March 1, 1998, until terminated by
1338   effect of law or otherwise, the distribution company shall have the exclusive obligation to
1339   provide distribution service to all retail customers within its service territory. No other person,
1340   except a government or critical facility microgrid operating pursuant to section 158, shall provide
1341   distribution service within such service territory without the written consent of such distribution
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1342   company, which shall be filed with the department and the clerk of the municipality so affected.
1343   The department shall limit the distribution service provided by government or critical facility
1344   microgrids as necessary and appropriate, but at a minimum, shall establish rules, parameters, and
1345   as necessary, tariffs, related to eligible uses of the distribution equipment connected to a
1346   distribution company’s electric distribution system by a government or critical facility microgrid.
1347  (b) Each distribution company shall provide its customers with default service and shall
1348   offer a default service rate to its customers who have chosen retail electricity service from a non-
1349   utility affiliated generation company or supplier but who require electric service because of a
1350   failure of such company or supplier to provide contracted service or who, for any reason, have
1351   never chosen or have stopped receiving such service. The distribution company shall procure
1352   supply for such service through competitive bidding or through such other process approved by
1353   the department, including procurements of varying lengths and in combination with other
1354   distribution companies; provided, however, that standard default service rates, excluding time-
1355   varying rates and monthly variable service rates, for residential customers shall be changed not
1356   more than once every six months. Any department-approved provider of service, including an
1357   affiliate of a distribution company, shall be eligible to participate in the competitive bidding
1358   process. The department may require a separate mechanism for recovering certain charges, to be
1359   itemized separately on a customer bill, including, but not limited to, those in connection with the
1360   wholesale electric markets as administered by ISO New England, Inc. or with federal tariffs on
1361   imports to such markets. In implementing the provisions of this section, the department shall
1362   ensure universal service for all ratepayers and sufficient funding to meet the need therefor.
1363  (c) Notwithstanding section 5D of chapter 25, the department and the department of
1364   energy resources shall have access to all information associated with the bids selected by the
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1365   distribution company pursuant to the competitive bidding process in this section; provided,
1366   however, that such information shall not be deemed to be a public record as defined in clause 26
1367   of section 7 of chapter 4 and shall not be subject to demand for production under section 10 of
1368   chapter 66; and provided further, that aggregates of such information may be prepared and such
1369   aggregates shall be public records.
1370  (d) The department shall promulgate rules and regulations necessary to carry out this
1371   section, including the procedure for default service procurement and governing a customer’s
1372   ability to return to the default service after choosing retail access from a non-utility affiliated
1373   generation company.
1374  SECTION 47. Section 1D of said chapter 164 , as so appearing, is hereby amended by
1375   striking out the fourth paragraph and inserting in place thereof the following paragraph:-
1376  For electric suppliers which have chosen the complete billing method, other than electric
1377   suppliers selling electricity pursuant to section 134, the electric distribution company shall make
1378   timely payments to such suppliers in accordance with this paragraph. The distribution company
1379   shall: (a) bill all of the electric supplier’s customers in a service class according to complete
1380   billing; and (b) pay such suppliers the full amounts due from customers for generation services in
1381   a time period consistent with the average payment period of the participating class of customer,
1382   less a percentage of such amounts that reflects the average of the uncollectible bills for the
1383   participating customer classes of the electric distribution company and other reasonable
1384   development, operating or carrying costs incurred, as approved by the department; provided,
1385   however, that the department may establish different percentage discounts for suppliers based on
1386   the supplier’s amount of uncollectible bills or percentage of customers in arrears relative to the
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1387   average of the uncollectible bills for the participating classes of the electric distribution company
1388   or the average number of customers in arrears.
1389  SECTION 48. Paragraph (1) of section 1F of said chapter 164, as so appearing, is hereby
1390   amended by striking out subparagraphs (ii) and (iii) and inserting in place thereof the following 4
1391   subparagraphs:-
1392  (ii) All private, non-profit or co-operative aggregators established pursuant to sections
1393   135, 136 and 137 seeking to do business in the commonwealth shall submit a license application
1394   to the department, subject to rules and regulations promulgated by the department and subject to
1395   the payment of a fee, the amount of which shall be determined by the department.
1396  (iii) All energy brokers, energy marketers and suppliers seeking to do business in the
1397   commonwealth shall submit a license application to the department, subject to rules and
1398   regulations promulgated by the department, and shall be subject to the payment of an annual fee,
1399   the amount of which shall be determined by the department; provided, however, that said amount
1400   shall be not more than $10,000 and may be set at different amounts for energy brokers, energy
1401   marketers and suppliers.
1402  (iv) Each energy marketer of residential electrical generation services or other supplier of
1403   such services that applies for a retail license shall execute and maintain a bond, issued by a
1404   qualifying surety or insurance company authorized to conduct business in the commonwealth, in
1405   favor of the commonwealth. The amount of the bond shall equal $5,000,000 per retail license or
1406   per parent company of multiple marketers or suppliers licensed by the department, issued by the
1407   department; provided, however, that energy marketers and suppliers whose license to serve is
1408   limited to commercial and industrial customers and does not include residential customers, the
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1409   bond amount shall equal $1,000,000 per retail license. The bond shall be conditioned upon the
1410   full and faithful performance of all duties and obligations of the applicant as a retail supplier and
1411   shall be valid for a period of not less than 1 year. The cost of the bond shall be paid by the
1412   applicant. The applicant shall file a copy of this bond, with a notarized verification page from the
1413   issuer, as part of its application for certification.
1414  (v) Any energy marketer shall be a legal agent of the supplier. No energy marketer may
1415   sell electric generation services on behalf of a supplier unless such energy marketer has received
1416   appropriate training directly from such supplier. This subparagraph shall not apply to third-party
1417   brokers or consultants or agents acting on behalf of customers that are directly compensated by
1418   the customer as part of the customer’s electric contract price.
1419  SECTION 49. Said section 1F of said chapter 164, as so appearing, is hereby further
1420   amended by striking out paragraph (4).
1421  SECTION 50. Paragraph (7) of said section 1F of said chapter 164, as so appearing, is
1422   hereby amended by striking out the fifth to seventh sentences, inclusive, and inserting in place
1423   thereof the following 2 sentences:-
1424  If the department, after a hearing or other proceeding, determines that a distribution
1425   company, person, firm, supplier or corporation doing business in the commonwealth has violated
1426   any provisions of said code or of any rule or regulation promulgated by the department pursuant
1427   to sections 1A to 1H, inclusive, section 1L or any provision of chapter 93A or corresponding
1428   regulations promulgated pursuant to authority established by section 102C, or executed a new
1429   contract or renewed an existing contract for generation services with any individual residential
1430   retail customer within a city or town that has accepted section 72 of chapter 40, the department
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1431   may impose a civil penalty and impose any other terms or conditions that the department
1432   considers appropriate, including, but not limited to, restitution to specific customers harmed by
1433   the violation in question and suspension or revocation of the business’ retail license. Civil
1434   penalties imposed under this subsection shall not exceed $100,000 for each violation and for
1435   each day that the violation persists, shall be capped at a maximum of $10,000,000, and shall not
1436   be inclusive of any financial restitution the department requires to be provided to specific
1437   customers determined to be harmed by such violation.
1438  SECTION 51. Paragraph (8) of said section 1F of said chapter 164, as so appearing, is
1439   hereby amended by striking out, in line 336, the words “30 days” and inserting in place thereof
1440   the following words:- 2 years.
1441  SECTION 52. Said chapter 164 is hereby amended by striking out section 1H, as so
1442   appearing, and inserting in place thereof the following section:-
1443  Section 1H. (a) As used in this section the following words shall have the following
1444   meanings unless the context clearly requires otherwise:
1445  “Electric rate reduction bonds”, bonds, notes, certificates of participation or beneficial
1446   interest, or other evidences of indebtedness or ownership, issued pursuant to an executed
1447   indenture, financing document, or other agreement of the financing entity, the proceeds of which
1448   are used by an electric company to provide, recover, finance, or refinance transition costs or to
1449   acquire eligible property and that are secured by or payable from eligible property.
1450  “Eligible property”, the property right created pursuant to this section, including, but not
1451   limited to, the right, title and interest of an electric company, gas company or a financing entity
1452   to any revenues, collections, claims, payments, money or proceeds of or arising from or
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1453   constituting reimbursable transition costs amounts which are the subject of a rate reduction bond
1454   order, including those non-bypassable rates and other charges authorized by the department in
1455   the rate reduction bond order to recover transition costs and the costs of providing, recovering,
1456   financing or refinancing the transition costs, including the costs of issuing, servicing and retiring
1457   electric or gas rate reduction bonds.
1458  “Financing entity”, (i) MassDevelopment, (ii) any special purpose trust, or (iii) any
1459   financing entity which is authorized by the department pursuant to a rate reduction bond order to
1460   issue electric or gas rate reduction bonds or acquire eligible property in accordance with this
1461   section.
1462  “Gas rate reduction bonds”, bonds, notes, certificates of participation or beneficial
1463   interest or other evidences of indebtedness or ownership, issued pursuant to an executed
1464   indenture, financing document or other agreement of the financing entity, the proceeds of which
1465   are used to provide, recover, finance or refinance transition costs or to acquire eligible property
1466   by a gas company and that are secured by or payable from eligible property.
1467  “MassDevelopment”, the Massachusetts Development Finance Agency established in
1468   section 2 of chapter 23G.
1469  “Rate reduction bond order”, an order of the department adopted in accordance with this
1470   section approving a plan, which shall include, but shall not be limited to, a procedure to review
1471   and approve periodic adjustments to transition charges to include recovery of principal and
1472   interest and the costs of issuing, servicing, and retiring electric or gas rate reduction bonds
1473   contemplated by the rate reduction bond order.
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1474  “Reimbursable transition costs amounts”, the total amount authorized by the department
1475   in a rate reduction bond order to be collected through the transition charge as allocated to an
1476   electric company or gas company in accordance with a rate reduction bond order.
1477  “Special purpose trust”, a trust, partnership, limited partnership, association, corporation,
1478   nonprofit corporation, limited liability company or other entity established and authorized by
1479   MassDevelopment to acquire eligible property or to issue rate reduction bonds, or both, subject
1480   to approvals by MassDevelopment and the powers of MassDevelopment as provided by
1481   MassDevelopment in their resolutions authorizing the entities to issue rate reduction bonds.
1482  “Transition charge”, the charge to customers which provides the mechanism for the
1483   recovery of the transition costs of an electric company or gas company.
1484  “Transition costs”, the costs determined pursuant to section 1G and subsection (b) which
1485   remain after accounting for maximum possible mitigation, subject to determination by the
1486   department.
1487  (b) The department shall identify and determine costs and categories of costs that may be
1488   classified as transition costs. Such costs and categories of costs shall be limited to costs incurred
1489   by an electric company or gas company for programs related to: (i) electric-sector modernization
1490   plans established pursuant to section 92B; (ii) gas company transition costs related to
1491   requirements deriving from the commonwealth’s emission reduction requirements established
1492   pursuant to chapter 21N; and (iii) costs related to storms and other natural disasters.
1493  (c)(1) The department shall: (i) further define the categories of costs eligible to be
1494   classified as transition costs; (ii) determine the appropriate duration over which transition costs
1495   may be recovered for each eligible cost category, including, but not limited to, ensuring that the
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1496   transition cost recovery period aligns with the period over which ratepayers can reasonably
1497   expect to derive benefits from the programs or assets in each eligible cost category; provided,
1498   however, that the term of an electric rate reduction or gas rate reduction bond shall not be issued
1499   for a term exceeding 30 years; (iii) determine whether there is a date after which electric rate
1500   reduction bonds and gas rate reduction bonds may no longer be issued; provided, however, that
1501   electric rate reduction bonds or gas rate reduction bonds shall not be issued after 2036 without
1502   further legislative authorization; (iv) determine the limits that should be placed on the total dollar
1503   amount of electric rate reduction bonds and gas rate reduction bonds that can be issued in
1504   aggregate over a given period for particular categories of costs; (v) determine whether there are
1505   mechanisms and approaches for issuing electric rate reduction bonds and gas rate reduction
1506   bonds, consistent with this section, that can further reduce costs for ratepayers, including
1507   reducing administrative and transaction costs; and (vi) take comment on and assess other
1508   relevant considerations as it determines. Any financial benefits resulting from mechanisms
1509   determined by the department to help reduce administrative, transaction or other costs, shall flow
1510   to ratepayers. The department shall take steps it deems necessary to ensure it has appropriate
1511   expert resources available that are independent of the special purpose trust, including those
1512   related to electric rate reduction bond and gas rate reduction bond structuring, marketing and
1513   pricing, to protect and support ratepayer interests.
1514  (2) The department may authorize issuance of rate reduction bond orders in accordance
1515   with this section to facilitate the provision, recovery, financing or refinancing of transition costs.
1516   No rate reduction bond order shall be issued unless the department has found the issuance to be
1517   cost-effective and will result in a reduction in ratepayer costs. A rate reduction bond order shall
1518   specify that amounts collected from a customer shall be allocated first to current and past due
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1519   transition charges and then other charges and that, upon the issuance of electric or gas rate
1520   reduction bonds, transition charges collected shall be allocated first to eligible property and
1521   second to transition charges, if any, that are not subject to a rate reduction bond order.
1522  (3) An electric company or gas company, may, from time to time as established by the
1523   department, file with the department an application that provides that its transition costs may be
1524   recovered through reimbursable transition costs amounts, which would therefore constitute
1525   eligible property under this section. An electric company or gas company, may, upon the
1526   department’s written determination of substantial and documentable relative rate reduction,
1527   utilize a financing entity other than the state-designated financing entity or special purpose trust.
1528   The electric company or gas company shall, in its application, specify that its customers would
1529   benefit from reduced electricity or gas rates through the issuance of electric or gas rate reduction
1530   bonds and shall explain how and in what manner the customers will realize the benefit.
1531  (4) The department shall promulgate rules and regulations establishing the form and
1532   content of applications that may be filed pursuant to paragraph (3) and establishing the procedure
1533   to be utilized for the filing and approval of said applications. The department shall determine
1534   reimbursable transition costs amounts recoverable in one or more rate reduction bond orders if it
1535   determines, as part of its findings in connection with the rate reduction bond order, that: (i) the
1536   costs described in the application are reasonable; (ii) the proposed issuance of rate reduction
1537   bonds and the imposition and collection of transition charges are reasonable and consistent with
1538   the public interest; (iii) securitization offers significant net advantages to a substantial number of
1539   the ratepayers of the relevant electric or gas company compared to pay-as-you-go, conventional
1540   bonding and other financing alternatives; provided, however, that the department shall find and
1541   set forth such significant net advantages relative to the alternatives; provided further, that the
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1542   department shall calculate and publish estimates of total costs to be incurred over the lifetime of
1543   the activities, assets, facilities, initiatives, projects or programs being securitized, including, but
1544   not limited to, costs of principal and interest as well as other costs and transition costs, and shall
1545   compare these estimated total costs to estimates of total costs of pay-as-you-go, conventional
1546   bonding and other financing alternatives; and (iv) the designation of the reimbursable transition
1547   costs amounts and the issuance of electric or gas rate reduction bonds by the financing entity in
1548   connection with some or all of the reimbursable transition costs amounts will have a high
1549   probability of reducing rates that customers of an electric company or gas company will pay
1550   compared to rates they would have paid over a given period if the rate reduction bond order were
1551   not adopted, or that such rates will be reduced in aggregate amounts equal to savings realized by
1552   the electric company or gas company with respect to the rate reduction bond order; provided,
1553   however, that said bonds may qualify for tax-exempt status to the full extent of state and federal
1554   law; provided further, that the department shall consult with the financing entity in making its
1555   determination concerning electric or gas rate reduction bonds.
1556  (5) The transition charge and its payment as provided in the rate reduction bond order
1557   shall be binding on all current and future distribution companies and gas companies and users of
1558   such distribution system and gas system until the bonds are paid in full by the financing entity. A
1559   rate reduction bond order shall expire after 2 years if no electric or gas rate reduction bonds have
1560   been issued pursuant thereto.
1561  (6)(i) Notwithstanding any other general or special law, rule or regulation to the contrary,
1562   except as otherwise provided in this section with respect to eligible property which has been
1563   made the basis for the issuance of electric or gas rate reduction bonds, the rate reduction bond
1564   orders and the reimbursable transition costs amounts shall be irrevocable and the department
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1565   shall not have authority, either by rescinding, altering or amending the rate reduction bond order
1566   or otherwise, to revalue or revise for ratemaking purposes the transition costs, determine that the
1567   reimbursable transition costs amounts or transition charges are unreasonable, or in any way
1568   reduce or impair the value of eligible property either directly or indirectly by taking reimbursable
1569   transition costs amounts into account when setting other rates for the electric or gas company,
1570   nor shall the amount of revenues arising with respect thereto be subject to reduction, impairment,
1571   postponement or termination. Except as otherwise provided in this paragraph, the commonwealth
1572   does hereby pledge and agree with the owners of eligible property and holders of electric or gas
1573   rate reduction bonds that the commonwealth shall not (i) alter the provisions of this chapter
1574   which make the transition charges imposed by the rate reduction bond order irrevocable and
1575   binding or (ii) limit or alter the reimbursable transition costs amounts, eligible property, rate
1576   reduction bond orders, and all rights thereunder until the electric or gas rate reduction bonds,
1577   together with the interest thereon, are fully met and discharged. The financing entity as agent for
1578   the commonwealth is hereby authorized to include this pledge and undertaking for the
1579   commonwealth in these electric or gas rate reduction bonds.
1580  (ii) Notwithstanding the irrevocability of the collection of revenues and imposition of
1581   transition charges associated with gas and electric rate reduction bonds under subparagraph (i),
1582   the department shall retain the authority to determine the prudence of the reimbursable transition
1583   costs and may use a distinct and complementary reconciling mechanism, if necessary, to effect
1584   any determination of imprudence with respect to any portion of reimbursable transition costs.
1585  (7)(i) Rate reduction bond orders issued pursuant to this section shall not constitute a debt
1586   or liability of the commonwealth or of any political subdivision thereof, other than the financing
1587   entity, and shall not constitute a pledge of the full faith and credit of the commonwealth or any of
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1588   its political subdivisions, other than the financing entity, but shall be payable solely from the
1589   funds provided therefor pursuant to the provisions of this section. All the bonds shall contain on
1590   the face thereof the following statement: Neither the full faith and credit nor the taxing power of
1591   the commonwealth of Massachusetts is pledged to the payment of the principal of, or interest on,
1592   this bond.
1593  (ii) The issuance of electric or gas rate reduction bonds pursuant to this section shall not
1594   obligate the commonwealth or any political subdivision thereof to levy or pledge any form of
1595   taxation therefor or to make any appropriation for their payment.
1596  (iii) The exercise of the powers granted by this section shall be in all respects for the
1597   benefit of the people of the commonwealth, for the increase of their commerce and prosperity,
1598   and for the improvement of their health and living conditions. As the exercise of such powers
1599   shall constitute the performance of essential governmental functions, the financing entity shall
1600   not be required to pay any taxes or assessments upon the property acquired or used by the
1601   financing entity pursuant to the provisions of this section or upon the income therefrom. The
1602   bonds or other instruments issued pursuant to this section, their transfer and the income
1603   therefrom, including any profit made on the sale thereof, shall be free from taxation within the
1604   commonwealth.
1605  (iv) Electric or gas rate reduction bonds and other instruments so approved and issued by
1606   a financing entity pursuant to the provisions of this section are hereby made securities in which
1607   all public officers and public bodies of the commonwealth and its political subdivisions, all
1608   insurance companies and savings banks, cooperative banks and trust companies in their banking
1609   departments and within the limits set by section 14 of chapter 167E, banking associations,
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1610   investment companies, executors, trustees and other fiduciaries, and all other persons whatsoever
1611   who are now or may hereafter be authorized to invest in bonds or other obligations of a similar
1612   nature, may properly and legally invest funds, including capital in their control or belonging to
1613   them and such bonds are hereby made obligations which may properly and legally be made
1614   eligible for the investment of savings deposits and the income thereof in the manner provided by
1615   section 15B of chapter 167. Such bonds are hereby made securities which may properly and
1616   legally be deposited with and received by any state or municipal officer or any agency or
1617   political subdivision of the commonwealth for any purpose for which the deposit of bonds or
1618   other obligations of the commonwealth is now or may hereafter be authorized by law.
1619  (v) The repayment of terms of any electric rate reduction bonds issued for the purpose of
1620   paying for transition costs shall extend for not more than 15 years; provided, however, that in the
1621   event the department determines that a longer repayment period would inure to the benefit of
1622   residential ratepayers and be reasonable and consistent with the public interest, the department
1623   may approve such a longer repayment period.
1624  (8) The department shall establish procedures for the expeditious processing of
1625   applications for rate reduction bond orders, including the approval or disapproval thereof within
1626   120 days of filing; provided, however, that an electric company or gas company shall file a new
1627   application with the department within 45 days of any such disapproval, if so ordered by the
1628   department. A rate reduction bond order shall also include a procedure whereby the department
1629   shall periodically review the rate of transition charges authorized therein at intervals as may be
1630   provided for in such order and shall approve adjustments, if required, of each such additional
1631   interval date, to such rate of transition charges to the extent necessary to ensure the timely
1632   recovery of revenues sufficient to provide for the payment of all principal, interest, premium, if
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1633   any, and other charges in respect of the electric or gas rate reduction bonds approved by the
1634   department pursuant to such rate reduction bond order.
1635  (9) Reimbursable transition costs amounts shall constitute eligible property when, and to
1636   the extent that, a rate reduction bond order authorizing the reimbursable transition costs amounts
1637   have become effective in accordance with the provisions of this section. The eligible property
1638   shall thereafter continuously exist as property for all purposes with all of the rights and privileges
1639   of this section for the period and to the extent provided in the rate reduction bond order, but in
1640   any event until the electric or gas rate reduction bonds are paid in full, including all principal,
1641   interest, premium, costs, and arrearages thereon. Prior to its sale or other transfer by the electric
1642   company or gas company pursuant to this section, eligible property shall be a vested contract
1643   right of the electric company, or gas company, notwithstanding any contrary treatment thereof
1644   for accounting, tax or other purpose.
1645  (10) Any unanticipated transition changes that are generated in excess of the amounts
1646   necessary to pay principal, premium, if any, interest and expenses of the issuance of the electric
1647   or gas rate reduction bonds shall be remitted to the financing entity to be held or distributed in
1648   accordance with the rate reduction bond order and, provided that all reserve funds are fully
1649   funded, may be used to benefit customers if this would not result in a recharacterization of the
1650   tax, accounting, and other intended characteristics of the financing, including, but not limited to,
1651   the following intended characteristics: (i) avoiding the recognition of debt on the balance sheet of
1652   the electric company or gas company for financial accounting and regulatory purposes; (ii)
1653   treating the electric or gas rate reduction bonds as debt of the electric company or its affiliates or
1654   gas company or its affiliates for federal income tax purposes; (iii) treating the transfer of the
1655   eligible property by the electric company or gas company as a true sale for bankruptcy purposes;
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1656   and (iv) avoiding any adverse impact of the financing on the credit rating of the electric company
1657   or gas company.
1658  (11) No rate reduction bond order shall: (i) authorize or require customers other than
1659   those of the electric company or gas company applying for such rate reduction bond order and its
1660   successors to pay any transition charges or other amounts with respect to the transactions
1661   authorized by such rate reduction bond order; or (ii) authorize, permit or require that any
1662   amounts arising from the transactions authorized by such rate reduction bond order be used to
1663   subsidize or benefit any company or the customers thereof other than the electric company or gas
1664   company and the affiliates thereof applying for such rate reduction bond order and its affiliates’
1665   customers. A rate reduction bond order shall require that transition charges be paid over to the
1666   financing entity within one calendar month of collection.
1667  (d)(1) The financing entity may issue electric or gas rate reduction bonds approved by the
1668   department in the pertinent rate reduction bond orders. Electric or gas rate reduction bonds shall
1669   be nonrecourse to the credit of it or any assets of the electric company or gas company, other
1670   than the eligible property as specified in the pertinent rate reduction bond order.
1671  (2) An electric company or gas company may sell or assign all or portions of its interest
1672   in eligible property to an affiliate. An electric company or gas company or its affiliates may sell
1673   or assign their interests to one or more financing entities that make that property the basis for
1674   issuance of electric or gas rate reduction bonds to the extent approved in the pertinent rate
1675   reduction bond orders. An electric company or gas company, its affiliates or financing entities
1676   may pledge eligible property as collateral for electric or gas rate reduction bonds to the extent
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1677   approved in the pertinent rate reduction bond orders providing for a security interest in the
1678   eligible property, in the manner as set forth in subsection (e).
1679  Eligible property may be sold or assigned by either: (i) the financing entity or a trustee
1680   for the holders of electric or gas rate reduction bonds in connection with the exercise of remedies
1681   upon a default; or (ii) any person acquiring the eligible property after a sale or assignment
1682   pursuant to this subsection.
1683  (3) To the extent that any interest in eligible property is so sold or assigned, or is so
1684   pledged as collateral, the department shall require, pursuant to the policing and regulatory power
1685   of the commonwealth, the electric company or gas company and any successor or any other
1686   entity acting as an electric company or gas company within the service territory to contract with
1687   the financing entity that it will continue to operate its system to provide service to its customers,
1688   will collect amounts in respect of the reimbursable transition costs amounts for the benefit and
1689   account of the financing entity, and will account for and remit these amounts to or for the
1690   account of the financing entity. Contracting with the financing entity in accordance with such
1691   authorization shall not impair or negate the characterization of the sale, assignment, or pledge as
1692   an absolute transfer, a true sale, or security interest, as applicable.
1693  (4) Notwithstanding any general or special law, rule, or regulation to the contrary, any
1694   provision under this section or a rate reduction bond order requiring the department take action
1695   with respect to the subject matter of a rate reduction bond order shall be binding upon the
1696   department, as it may be constituted from time to time, and any successor agency exercising
1697   functions similar to the department and the department shall have no authority to rescind, alter,
1698   or amend that requirement in a rate reduction bond order.
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1699  (e)(1) A security interest in eligible property is valid and enforceable against the pledgor
1700   and third parties, subject to the rights of any third parties holding security interests in the eligible
1701   property perfected in the manner described in this subsection, and attaches when all of the
1702   following have taken place: (i) the department has issued the rate reduction bond order
1703   authorizing the bondable reimbursable transition costs amounts included in the eligible property;
1704   (ii) value has been given by the pledgees of the eligible property; and (iii) the pledgor has signed
1705   a security agreement covering the eligible property.
1706  (2) A valid and enforceable security interest in eligible property shall be perfected when
1707   it has attached and when a financing statement has been filed in accordance with article 9 of
1708   chapter 106 naming the pledgor of the eligible property as “debtor” and identifying the eligible
1709   property. Any description of the eligible property shall be sufficient if it refers to the rate
1710   reduction bond order creating the eligible property. A copy of the financing statement shall be
1711   filed with the department by the electric company or gas company, which is the pledgor or
1712   transferor of the eligible property, and the department may require the electric company or gas
1713   company to make other filings with respect to the security interest in accordance with procedures
1714   it may establish; provided, however, that the filings shall not affect the perfection of the security
1715   interest.
1716  (3) A perfected security interest in eligible property shall be a continuously perfected
1717   security interest in all revenues and proceeds arising with respect thereto, whether the revenues
1718   or proceeds have accrued. Conflicting security interests shall rank according to priority in time of
1719   perfection. Eligible property shall constitute property for all purposes, including for contracts
1720   securing electric or gas rate reduction bonds, whether or not the revenues and proceeds arising
1721   with respect thereto have accrued.
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1722  (4) Subject to the terms of the security agreement covering the eligible property and the
1723   rights of any third parties holding security interests in the eligible property perfected in the
1724   manner described in this subsection, the validity and relative priority of a security interest
1725   created pursuant to this subsection shall not be defeated or adversely affected by the
1726   commingling of revenues arising with respect to the eligible property with other funds of the
1727   electric company or gas company that is the pledge or transferor of the eligible property. Subject
1728   to the terms of the security agreement, the pledgees of the eligible property shall have a perfected
1729   security interest in all cash and deposit accounts of the electric company or gas company in
1730   which revenues arising with respect to the eligible property have been commingled with other
1731   funds, but the perfected security interest shall be limited to an amount not greater than the
1732   amount of the revenues with respect to the eligible property received by the electric company or
1733   gas company within 12 months before either: (i) any default under the security agreement; or (ii)
1734   the institution of insolvency proceedings by or against the electric company or gas company, less
1735   payments from the revenues to the pledgees during that 12–month period.
1736  (5) If an event of default occurs under the security agreement covering the eligible
1737   property, the pledgees of the eligible property, subject to the terms of the security agreement,
1738   shall have all rights and remedies of a secured party upon default pursuant to article 9 of chapter
1739   106 and such other rights and remedies as may be provided in the rate reduction bond order, and
1740   shall be entitled to foreclose or otherwise enforce their security interest in the eligible property,
1741   subject to the rights of any third parties holding prior security interests in the eligible property
1742   perfected in the manner provided in this section. In addition, the department may require, in the
1743   rate reduction bond order creating the eligible property, that, in the event of default by the
1744   electric company or gas company in payment of revenues arising with respect to the eligible
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1745   property, the commission and any successor thereto, upon the application by the pledgees or
1746   transferees, including transferees under subsection (g), of the eligible property, and without
1747   limiting any other remedies available to the pledgees or transferees by reason of the default, shall
1748   order the sequestration and payment to the pledgees or transferees of revenues arising with
1749   respect to the eligible property. Any order shall remain in full force and effect notwithstanding
1750   any bankruptcy, reorganization, or other insolvency proceedings with respect to the debtor,
1751   pledgor, or transferor of the eligible property. Any surplus in excess of amounts necessary to pay
1752   principal, premium, if any, interest, costs, and arrearages on the electric or gas rate reduction
1753   bonds, and other costs arising under the security agreement, shall be remitted to the debtor or to
1754   the pledgor or transferor.
1755  (6) The state secretary shall establish and maintain a system of records to reflect the date
1756   and time of receipt of all filings made under this subsection (e) to perfect security interests in
1757   eligible property and to effect the transfer to an assignee of any interest in a rate reduction bond
1758   order.
1759  (f) Unless otherwise ordered by the department with respect to any series of electric or
1760   gas rate reduction bonds on or prior to the issuance of the series, there shall exist a statutory lien
1761   as provided in this subsection. Upon the effective date of the rate reduction bond order, there
1762   shall exist a first priority lien on all eligible property then existing or thereafter arising pursuant
1763   to the terms of the rate reduction bond order. This lien shall arise by operation of this subsection
1764   automatically without any action on the part of the electric company, any affiliate thereof, the
1765   financing entity, or any other person. This lien shall secure all obligations, then existing or
1766   subsequently arising, to the holders of the electric or gas rate reduction bonds issued pursuant to
1767   the rate reduction bond order, the trustee or representative for the holders, and any other entity
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1768   specified in the rate reduction bond order. The persons for whose benefit this lien is established
1769   shall, upon the occurrence of any defaults specified in the rate reduction bond order, have all
1770   rights and remedies of a secured party upon default pursuant to article 9 of chapter 106, and shall
1771   be entitled to foreclose or otherwise enforce this statutory lien in the eligible property. This lien
1772   shall attach to the eligible property regardless of whom shall own, or shall subsequently be
1773   determined to own, the eligible property, including any electric company or gas company, any
1774   affiliate thereof, the financing entity, or any other person. This lien shall be valid, perfected, and
1775   enforceable against the owner of the eligible property and all third parties upon the effectiveness
1776   of the rate reduction bond order without any further public notice; provided, however, that any
1777   person may, but shall not be required to, file a financing statement in accordance with subsection
1778   (e). Financing statements so filed may be “protective filings” and shall not be evidence of the
1779   ownership of the eligible property.
1780  A perfected statutory lien in eligible property shall be a continuously perfected lien in all
1781   revenues and proceeds arising with respect thereto, whether or not the revenues or proceeds have
1782   accrued. Conflicting liens shall rank according to priority in time of perfection. Eligible property
1783   shall constitute property for all purposes, including for contracts securing rate reduction bonds,
1784   whether or not the revenues and proceeds arising with respect thereto have accrued.
1785  In addition, the department may require, in the rate reduction bond order creating the
1786   eligible property, that, in the event of default by the electric company or gas company in
1787   payment of revenues arising with respect to eligible property, the department and any successor
1788   thereto, upon the application by the beneficiaries of the statutory lien, and without limiting any
1789   other remedies available to the beneficiaries by reason of the default, shall order the
1790   sequestration and payment to the beneficiaries of revenues arising with respect to the eligible
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1791   property. Any order shall remain in full force and effect notwithstanding any bankruptcy,
1792   reorganization, or other insolvency proceedings with respect to the debtor, pledgor, or transferor
1793   of the eligible property. Any surplus in excess of amounts necessary to pay principal, premium,
1794   if any, interest, costs, and arrearages on the electric or gas rate reduction bonds, and other costs
1795   arising in connection with the documents governing the electric or gas rate reduction bonds, shall
1796   be remitted to the debtor or to the pledgor or transferor.
1797  (g)(1) A transfer of eligible property by an electric company or gas company to an
1798   affiliate or to a financing entity, or by an affiliate of an electric company or gas company, or a
1799   financing entity to another financing entity, which the parties have in the governing
1800   documentation expressly stated to be a sale or other absolute transfer, in a transaction approved
1801   in a rate reduction bond order, shall be treated as an absolute transfer of all of the transferor’s
1802   right, title, and interest, as in a true sale, and not as a pledge or other financing, of the eligible
1803   property, other than for federal and state income purposes. Granting to holders of electric or gas
1804   rate reduction bonds a preferred right to revenues of the electric company or gas company or the
1805   provision by the company of other credit enhancement with respect to electric or gas rate
1806   reduction bonds, shall not impair or negate the characterization of any transfer as a true sale,
1807   other than for federal and state income purposes.
1808  (2) A transfer of eligible property shall be deemed perfected as against third persons
1809   when both of the following have taken place: (i) the department has issued the rate reduction
1810   bond order authorizing the reimbursable transition costs amounts included in the eligible
1811   property; and (ii) an assignment of the eligible property in writing has been executed and
1812   delivered to the eligible property in writing has been executed and delivered to the transferee.
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1813  (3) As between bona fide assignees of the same right for value without notice, the
1814   assignee first filing a financing statement in accordance with article 9 of chapter 106 naming the
1815   assignor of the eligible property as debtor and identifying the eligible property has priority. Any
1816   description of the eligible property shall be sufficient if it refers to the rate reduction bond order
1817   creating the eligible property. A copy of the financing statement shall be filed by the assignee
1818   with the department. The department may require the assignor or the assignee to make other
1819   filings with respect to the transfer in accordance with procedures it may establish, but these
1820   filings shall not affect the perfection of the transfer.
1821  (h) Any successor to the electric company or gas company, whether pursuant to any
1822   bankruptcy, reorganization, or other insolvency proceeding, or pursuant to any merger, sale, or
1823   transfer, by operation of law, or otherwise, shall perform and satisfy all obligations of the electric
1824   company or gas company pursuant to this section in the same manner and to the same extent as
1825   the electric company or gas company, including, but not limited to, collecting and paying to the
1826   holders of electric or gas rate reduction bonds or their representatives or the financing entity,
1827   revenues arising with respect to the eligible property sold to the financing entity or pledged to
1828   secure electric or gas rate reduction bonds. This requirement that a successor electric company or
1829   gas company perform the obligations of its predecessor is made pursuant to the commonwealth’s
1830   policing and regulatory authority.
1831  SECTION 53. Said chapter 164 is hereby further amended by inserting after section 1K
1832   the following section:-
1833  Section 1L. (a) A licensed supplier other than a supplier acting in its capacity as a
1834   municipal aggregation supplier may offer electricity to a residential customer receiving a
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1835   discount rate pursuant to section 152 at a price that does not exceed the trailing 12-month
1836   average of a distribution company’s default service rate in the distribution company’s service
1837   territory as of the date of agreement with the customer.
1838  (b) With respect to a residential customer, a supplier other than a supplier acting in its
1839   capacity as a municipal aggregation supplier shall not: (i) automatically renew a customer’s
1840   contract at the end of a contract term without receiving the written consent of the customer
1841   within 45 days before the expiration of the then current contract with the customer; provided,
1842   however, that the supplier shall provide not less than 3 renewal notices prior to contract
1843   expiration: (A) approximately 60 days prior; (B) approximately 30 days prior, which notice shall
1844   clearly disclose the renewal rate, term and opt-out method; and (C) approximately 15 days prior;
1845   provided, however, that the supplier shall provide for independent third-party verification to
1846   confirm, for all in-person sales and telephonic sales, the customer’s affirmative and informed
1847   consent to the terms of renewal; provided further, that a supplier shall not automatically renew a
1848   customer’s fixed-rate contract to a variable-rate contract; (ii) offer a variable rate, other than a
1849   rate that adjusts for seasonal variation, more than twice in a single year or a time-of-use rate that
1850   establishes different rates for periods within a single day; (iii) pay a commission or other
1851   incentive-based compensation for enrolling customers to any energy brokers, energy marketers,
1852   other third-party marketing agents or any other employees or agents; (iv) impose on a customer a
1853   fee for cancellation or early termination of an electricity supply agreement; or (v) offer a
1854   voluntary renewable or green energy product that contains clean or renewable energy attributes
1855   other than those that qualify under any clean energy standard regulation established by the
1856   department of environmental protection pursuant to subsection (c) of section 3 of chapter 21N
1857   unless: (A) the supplier discloses to the customer in plain language, prior to enrollment, that the
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1858   customer will not receive electricity directly from renewable generating units and that the
1859   supplier will acquire and retire renewable energy certificates or other eligible clean energy
1860   attributes in an amount equal to the customer’s usage; (B) the disclosure identifies the resource
1861   types and geographic origins of the renewable energy certificates to be retired; provided,
1862   however, that if such information is not available at the time of enrollment, the supplier shall
1863   disclose the resource types and geographic origins of renewable energy certificates retired for a
1864   substantially similar product over the prior 12 months and provide the specific product’s
1865   renewable energy certificate details to the residential customer within 60 days after the first
1866   billing cycle; (C) the renewable energy certificates are tracked by a certificate tracking system
1867   that assigns unique serial numbers, records issuance, transfers and retirements, and prevents
1868   double counting; and (D) the supplier reports annually to the department the amount, type, and
1869   location of clean or renewable energy attributes retired on behalf of residential retail customers
1870   and the percentage of supply purchased in excess of the supplier’s annual obligations under the
1871   clean and renewable energy portfolio standards established by the department of environmental
1872   protection and department of energy resources, respectively. The department shall publish the
1873   information received from each company or supplier on its website.
1874  (c) The department shall establish and maintain a public website for residential customers
1875   to compare available retail electricity supply products. Each supplier other than a supplier acting
1876   in its capacity as a municipal aggregation supplier must list at least 1 product available to
1877   residential customers on said website. The department shall ensure that the website includes, but
1878   is not limited to: (i) the current, and where possible, future default service rate available to a
1879   customer pursuant to section 1B; (ii) the default supply rate of any municipal aggregation
1880   offering available to a customer pursuant to section 134; (iii) the contract term for all products
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1881   listed; (iv) the percentage of renewable or clean energy content included in the product,
1882   including information on the source or location of such content, as determined by the
1883   department; (v) all additional products and services included as part of the product; (vi) the
1884   estimated monthly cost per customer; and (vii) the information collected pursuant to subsections
1885   (d) and (g). The website shall allow for products to be sorted and compared to each other.
1886  (d) Not less than quarterly, each supplier other than a supplier acting in its capacity as a
1887   municipal aggregation supplier shall provide to the department: (i) a list detailing each rate the
1888   supplier charged to residential retail customers in the last quarter; and (ii) the number of low-
1889   income and non-low-income residential retail customers charged each rate included in such list
1890   by rate class. The department shall publish average rates charged by each supplier to customer
1891   classes and the aggregate number of customers by each supplier served on the department’s
1892   website.
1893  (e) A licensed supplier shall provide written notice to the department prior to any
1894   assignment or transfer of customers. Notice shall be provided to the department not less than 30
1895   days prior to the effective date of the proposed assignment or transfer. The department may,
1896   upon its review of such notice, require certain conditions or deny assignment.
1897  (f) Not less than quarterly, the department shall publish each supplier’s and electric and
1898   gas distribution companies’ complaint data, sourced from complaints made to the department, as
1899   provided to the department annually, on the department’s website.
1900  (g) Nothing in this section shall apply to programs authorized by section 134 or to
1901   suppliers when they are carrying out work directly connected to a program authorized by said
1902   section 134.
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1903  (h) The department shall adopt such rules and regulations as may be necessary to
1904   implement this section.
1905  SECTION 54. Said chapter 164 is hereby further amended by striking out section 15, as
1906   appearing in the 2024 Official Edition, and inserting in place thereof the following section:-
1907  Section 15. A gas or electric company, under the supervision of the department, selling,
1908   offering for sale or issuing, bonds, debentures, notes or other evidences of indebtedness,
1909   exclusive of stock, payable at periods of not less than 5 years after the date thereof, shall invite
1910   proposals for the purchase thereof. The department shall find that the manner of solicitation of
1911   such proposals demonstrates a measure of competition and is in the public interest. Said
1912   company may, however, reserve the right to reject any proposal.
1913  SECTION 55. Section 15A of said chapter 164, as so appearing, is hereby amended by
1914   striking out, in line 5, the word “than” and inserting in place thereof the following word:- that.
1915  SECTION 56. Said chapter 164 is hereby further amended by striking out section 33A, as
1916   so appearing, and inserting in place thereof the following section:-
1917  Section 33A. (a) For the purposes of this section, the following words shall have the
1918   following meanings unless the context clearly requires otherwise:
1919  “Advertising”, the commercial use by a utility of any media, including newspaper, social
1920   media, printed matter, radio and television, including any costs associated with research,
1921   analysis, preparation, planning or any other related costs identified by the department as related
1922   to public communication, whose purpose is to transmit a message to a substantial number of
1923   members of the public or to such utility’s consumers promoting the sale or consumption of
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1924   electricity or any specific energy source, unless such commercial use is approved or ordered by
1925   the department.
1926  “Political advertising”, advertising for the purpose of influencing public opinion with
1927   respect to legislative, administrative or electoral matters; provided, however, that political
1928   advertising shall not include policymaking activity in which the executive branch or the general
1929   court has invited gas or electric company participation, including, but not limited to, participation
1930   on or communication with any policy commission, committee, advisory council, working group
1931   or other body established by the executive branch or the general court; provided, however, that
1932   “political advertising” shall not include advertising which: (i) informs consumers of any utility
1933   about how they can conserve energy, improve energy efficiency, access money-saving rates or
1934   programs, seek assistance or customer support, prepare for weather events, reduce peak demand
1935   for energy, take part in demand management or load management initiatives, pursue building
1936   decarbonization, heat pump, networked geothermal, solar or storage technology, or other
1937   electrification measures, or otherwise use the services of any utility in a cost-efficient manner;
1938   (ii) is required by federal or state laws or regulations; (iii) informs consumers regarding service
1939   interruptions, emergency conditions, or measures to enhance safety, security, reliability of
1940   service, affordability, equity or reductions in greenhouse gas emissions; (iv) concerns
1941   employment opportunities with a utility; (v) relates to existing or proposed rates or rate schedules
1942   or notification of hearings thereon; or (vi) informs consumers of and stimulates the use of
1943   products or services which are subject to direct competition from products or services of entities
1944   not regulated by the department or any other government agency.
1945  “Promotional advertising”, any advertising for the purpose of encouraging any person to
1946   select or use the service or additional service of a utility regulated by the department, or the
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1947   selection or installation of any appliance or equipment designed to use such utility’s service;
1948   provided, however, that “promotional advertising” shall not include advertising which: (i)
1949   informs consumers of any utility about how they can conserve energy, improve energy
1950   efficiency, access money-saving rates or programs, seek assistance or customer support, prepare
1951   for weather events, reduce peak demand for energy, take part in demand management or load
1952   management initiatives, pursue building decarbonization, heat pump, networked geothermal,
1953   solar or storage technology, or other electrification measures, or otherwise use the services of
1954   any utility in a cost-efficient manner; (ii) is required by federal or state laws or regulations; (iii)
1955   informs consumers regarding service interruptions, emergency conditions, or measures to
1956   enhance safety, security, reliability of service, affordability, equity or reductions in greenhouse
1957   gas emissions; (iv) concerns employment opportunities with a utility; (v) relates to existing or
1958   proposed rates or rate schedules or notification of hearings thereon; or (vi) informs consumers of
1959   and stimulates the use of products or services which are subject to direct competition from
1960   products or services of entities not regulated by the department or any other government agency.
1961  (b) For the purposes of this section, a communication shall be considered advertising,
1962   promotional advertising, or political advertising if any portion of the communication is
1963   advertising, promotional advertising or political advertising.
1964  (c) No gas or electric company regulated by the department under this chapter may
1965   recover from any ratepayer of such company any direct or indirect expenditure by such company
1966   for promotional or political advertising as defined in this section.
1967  (d) No gas or electric company regulated by the department shall recover through rates
1968   any direct or indirect cost associated with: (i) membership, dues, sponsorships or contributions to
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1969   any entity incorporated under section 501 of the Internal Revenue Code of 1986, as amended,
1970   including business or trade associations; (ii) charitable giving expenses, including contributions
1971   in cash or other quantifiable value to organizations qualified under section 501(c)(3) or 501(c)(4)
1972   of the Internal Revenue Code of 1986, as amended; (iii) executive or legislative lobbying, as
1973   defined under section 39 of chapter 3, or soliciting others to engage in executive or legislative
1974   lobbying, including any costs for activities associated with lobbying such as policy research,
1975   analysis, preparation and planning undertaken in support of lobbying; provided, however that
1976   lobbying shall not include policymaking activity in which the executive branch or general court
1977   has invited gas or electric company participation, which activity shall include, but not be limited
1978   to, participation on or communication with any policy commission, committee, advisory council,
1979   working group or other body established by the executive branch or the general court; (iv)
1980   contributions to political candidates, campaign committees, issue committees or independent
1981   expenditure committees or other political expenses; (v) any costs, including marketing,
1982   administration, customer service or other costs, for products or services not regulated by the
1983   department, unless determined by the department to be reasonable; (vi) tax penalties or fines
1984   issued against such company, unless determined by the department to be reasonable; (vii) travel,
1985   lodging, entertainment, gifts or food and beverage expenses for such company’s board of
1986   directors, trustees and external advisory councils not required by the department or legislature or
1987   the board of directors and officers of the parent of such company; or (viii) any ownership, lease
1988   or charter of aircraft for such company’s board of directors, trustees, external advisory councils
1989   and officers or the board of directors and officers of the parent of such company.
1990  (e) The department and the office of ratepayer advocacy established pursuant to section
1991   11E of chapter 12 shall monitor and investigate compliance and noncompliance with this section.
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1992   If the department determines that a gas or electric company regulated by the department
1993   improperly recorded an expense for which recovery is prohibited by this section, the department
1994   shall assess a non-recoverable penalty against such company in an amount that is not less than
1995   the total amount of costs improperly recorded and the department shall order such company to
1996   refund the amount improperly recovered, plus interest, to customers. For each penalty assessed
1997   and collected from any such company pursuant to this section, a portion of the penalty, as
1998   determined by the department, may be distributed to ratepayers through a rebate, or distributed to
1999   the department and the office of ratepayer advocacy for the purpose of increasing resources for
2000   enforcing this section.
2001  SECTION 57. Section 69G of said chapter 164, as so appearing, is hereby amended by
2002   striking out, in line 1, the figure “69W” and inserting in place thereof the following figure:- 69X.
2003  SECTION 58. Said section 69G of said chapter 164, as so appearing, is hereby further
2004   amended by striking out the definition of “Director” and inserting in place thereof the following
2005   definition:-
2006  “Director”, the director of the energy facilities siting division appointed pursuant to
2007   section 12N of chapter 25 who shall serve as the director of the board; provided, however, that
2008   the director may issue decisions on de novo adjudications of local permit applications pursuant to
2009   section 69W; and provided further, that the director may issue determinations pursuant to section
2010   69X to require a project applicant to submit an application for a consolidated permit as a large
2011   clean transmission and distribution infrastructure facility under sections 69H and 69T.
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2012  SECTION 59. Said section 69G of said chapter 164, as so appearing, is hereby further
2013   amended by striking out the definition of “large clean transmission and distribution infrastructure
2014   facility” and inserting in place thereof the following definition:-
2015  “Large clean transmission and distribution infrastructure facility”, electric transmission
2016   and distribution infrastructure and related ancillary infrastructure that is: (i) a new electric
2017   transmission line having a design rating of not less than 69 kilovolts and that is not less than 1
2018   mile in length on a new transmission corridor, including any ancillary structure that is an integral
2019   part of the operation of the transmission line; (ii) a new electric transmission line having a design
2020   rating of not less than 115 kilovolts that is not less than 10 miles in length on an existing
2021   transmission corridor except reconductored or rebuilt transmission lines at the same voltage,
2022   including any ancillary structure that is an integral part of the operation of the transmission line;
2023   (iii) any other new electric transmission infrastructure requiring zoning exemptions, including
2024   standalone transmission substations and upgrades and any ancillary structure that is an integral
2025   part of the operation of the transmission line; (iv) any proposed reconductoring, replacement, or
2026   rebuilding of a transmission facility or group of transmission facilities, including any ancillary
2027   structure that is an integral part of the operation of the transmission line, that is reviewed
2028   pursuant to section 69X; and (v) facilities needed to interconnect offshore wind to the grid;
2029   provided, however, that the large clean transmission and distribution facility is: (A) designed,
2030   fully or in part, to directly interconnect or otherwise facilitate the interconnection of clean energy
2031   infrastructure to the electric grid; (B) approved by the regional transmission operator in relation
2032   to interconnecting clean energy infrastructure; (C) proposed to ensure electric grid reliability and
2033   stability; or (D) will help facilitate the electrification of the building and transportation sectors;
2034   and provided further, that a “large clean transmission and distribution infrastructure facility”
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2035   shall not include new transmission and distribution infrastructure that solely interconnects new
2036   and existing energy generation powered by fossil fuels on or after January 1, 2026.
2037  SECTION 60. Section 69H of said chapter 164, as so appearing, is hereby amended, in
2038   the first paragraph, by inserting after the word “pipelines” in line 22 the following word:- ,
2039   facilities.
2040  SECTION 61. Said Section 69H of said chapter 164, as so appearing, is hereby further
2041   amended by striking out, in line 36, the word “large” and inserting in place thereof the following
2042   words:- facilities, large.
2043  SECTION 62. Said section 69H of said chapter 164, as so appearing, is hereby further
2044   amended by striking out, in line 52, the words “and (v)” and inserting in place thereof the
2045   following words:- “(v) due consideration has been given to locating facilities underground and
2046   away from residential areas; and (vi).
2047  SECTION 63. Said section 69H of said chapter 164, as so appearing, is hereby further
2048   amended by striking out, in line 114, the figure “69W” and inserting in place thereof the
2049   following figure:- 69X.
2050  SECTION 64. Said chapter 164 of hereby further amended by inserting after section 69I
2051   the following section:-
2052  Section 69I½. (a) The department, in consultation with the department of energy
2053   resources, based on long-range plans approved pursuant to section 69I, shall establish and
2054   maintain rolling 3-year projections of statewide natural gas demand. The projections shall
2055   include, but not be limited to: (i) requirements for electric generation; (ii) anticipated residential,
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2056   commercial and industrial consumption; (iii) winter and summer peak requirements; (iv) firm
2057   and interruptible load; and (v) any expected changes resulting from electrification, energy
2058   efficiency or economic trends.
2059  (b) The secretary of energy and environmental affairs, in consultation with the
2060   department, shall develop and annually update a plan that: (i) matches natural gas supply with
2061   projected demand; (ii) ensures pipeline capacity and system reliability measures in a manner that
2062   does not result in excessive consumer cost burdens; (iii) minimizes potential service
2063   interruptions; and (iv) is consistent with the commonwealth’s decarbonization goals. In
2064   developing said plan, the secretary shall conduct not less than 3 public hearings in
2065   geographically diverse locations in the commonwealth; provided, however, that at least 1 such
2066   hearing shall accommodate remote participation.
2067  (c) The projections and plan required by subsections (a) and (b) shall be filed annually
2068   with the clerks of the senate and house of representatives and the joint committee on
2069   telecommunications, utilities and energy.
2070  SECTION 65. Said chapter 164 is hereby amended by inserting after section 69W the
2071   following section:-
2072  Section 69X. (a) A transmission company shall file with the board a description of any
2073   proposed reconductoring, replacement or rebuilding of a transmission facility or group of
2074   transmission facilities on an existing transmission corridor that has an estimated cost of not less
2075   than $25,000,000 prior to commencing construction. Such description shall include, but not be
2076   limited to: (i) an analysis of the need for the project; (ii) an explanation of the project scope,
2077   timing, cost and alternatives considered, including the deployment of advanced conductors, grid-
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2078   enhancing technologies and other advanced transmission technologies; (iii) an analysis of the
2079   near-term reliability risks to be addressed by the project; and (iv) an analysis of whether
2080   sufficient mechanisms exist in the regional system planning process to evaluate the project.
2081  (b) Not later than 90 days following a submission pursuant to subsection (a), the director,
2082   at the director’s sole discretion, may require a project applicant to submit an application for a
2083   consolidated permit as a large clean transmission and distribution infrastructure facility under
2084   sections 69H and 69T. In such a case, the applicant shall be required to seek and obtain a
2085   consolidated permit from the board before it may proceed with construction. The director shall
2086   notify the project applicant within 5 days of determining that they will require submission of an
2087   application pursuant to sections 69H and 69T. The board may establish rules that permit an
2088   applicant for a project reviewed pursuant to this section to forego certain pre-filing requirements
2089   with which other projects under section 69T are required to comply.
2090  (c) In determining whether to require submission of an application under subsection (b),
2091   the director shall consider: (i) the identified need for the project; (ii) the project scope, timing,
2092   cost and alternatives considered, including the deployment of advanced conductors, grid-
2093   enhancing technologies and other advanced transmission technologies; (iii) whether the proposed
2094   project would address a near-term reliability risk; and (iv) whether there are sufficient
2095   mechanisms in the regional transmission planning process to evaluate projects that are subject to
2096   this section.
2097  (d) Projects selected by ISO-NE for inclusion in its regional system plan shall not be
2098   subject to this section.
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2099  (e) The board may adopt such rules and regulations as may be necessary to implement
2100   this section.
2101  SECTION 66. Section 69I of said chapter 164, as appearing in the 2024 Official Edition,
2102   is hereby amended by striking out, in line 26, the figure “69W” and inserting in place thereof the
2103   following figure:- 69X.
2104  SECTION 67. Section 69P of said chapter 164, as so appearing, is hereby amended by
2105   striking out, in lines 20 and 25, the figure “69W”, and inserting in place thereof, in each instance,
2106   the following figure:- 69X.
2107  SECTION 68. Said chapter 164 is hereby further amended by inserting after section 83
2108   the following section:-
2109  Section 83A. (a) Notwithstanding any general or special law, rule, regulation or order to
2110   the contrary, the department shall provide for management and operations audits of gas
2111   companies and distribution companies. Such audits shall be performed not more than once every
2112   3 years; provided, however, that at other times the department may order audits on specific
2113   aspects of gas company and distribution company operations and performance, including, but not
2114   limited to, programs authorized pursuant to chapter 25 supporting building decarbonization
2115   through the elimination of fossil fuel end uses or reducing energy use through energy efficiency
2116   and load management resources, as necessary. The department shall order such audits be
2117   performed by its staff or by an independent auditor.
2118  If the department orders an audit under this section to be performed by an independent
2119   auditor, the department may select the auditor, subject to the applicable procurement laws and
2120   regulations of the commonwealth, and shall require the company being audited to enter into a
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2121   contract with the auditor providing for payment of the auditor by the company at no cost to the
2122   ratepayers of said company, and shall set a date by which time the audit shall be submitted to the
2123   department. Such contract shall provide that the independent auditor shall work for and be under
2124   the direction of the department according to such other terms as the department may determine
2125   necessary and reasonable.
2126  (b)(1) An audit report detailing the findings and recommendations of the audit shall be
2127   filed with the department on or before such due date and a copy of the report shall be provided to
2128   the office of ratepayer advocacy established pursuant to section 11E of chapter 12.
2129  (2) If the audit report provides evidence that the company violated department regulation
2130   or other applicable laws, the audit report may recommend an appropriate penalty to be paid by
2131   the company. No penalty recommended in an audit report’s findings shall be recoverable from
2132   ratepayers.
2133  (3) The department shall solicit comments on the audit report from the company subject
2134   to the audit, the office of ratepayer advocacy and other interested parties, which comments shall
2135   be submitted within 30 days of issuance of the audit.
2136  (c) A company subject to an audit under this section shall, within 90 days after issuance
2137   of such an audit, submit to the department, in a form prescribed by the department, a report
2138   detailing the company’s plan to adopt any recommendations made in the audit report pursuant to
2139   subsection (b). The department shall have the opportunity to respond to said report by making
2140   any further recommendations for additional actions it deems the company should undertake.
2141   Within 60 days of the company’s receipt of such response, the company shall file with the
2142   department, in a form prescribed by the department, a report detailing the company’s revised
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2143   plan to implement recommendations made in the audit report and the response. The company
2144   shall provide a copy of such revised plan to the office of ratepayer advocacy, which may submit
2145   comments on such revised plan to the department within 30 days of the department’s receipt of
2146   such revised plan. After review of such revised plan and any comments received from the office
2147   of ratepayer advocacy, the department may require each company to further amend its plan in a
2148   particular manner. Such plan shall thereafter become enforceable upon approval by the
2149   department.
2150  (d) The department may commence a subsequent proceeding to examine the company’s
2151   compliance with the plan and may impose reasonable and appropriate penalties for any company
2152   noncompliance; provided, however, that the cost of such penalties shall by borne solely by the
2153   company and shall not be recoverable from ratepayers
2154  (e) Upon the petition of a gas or distribution company for approval of a general increase
2155   in base distribution rates pursuant to section 94, or in any other proceedings in which a gas or
2156   distribution company proposes capital improvements, the department shall review that
2157   company’s compliance with any applicable findings, recommendations and actions issued
2158   previously by the department as a result of the most recently completed management and
2159   operations audit undertaken pursuant to this section.
2160  SECTION 69. Said chapter 164 is hereby further amended by striking out section 92B, as
2161   appearing in the 2024 Official Edition, and inserting in place thereof the following section:-
2162  Section 92B. (a) The department shall direct each electric company to develop a
2163   comprehensive electric-sector modernization plan to proactively upgrade the distribution and,
2164   where applicable, transmission systems to: (i) improve grid reliability, communications and
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2165   resiliency; (ii) enable increased, timely adoption of renewable energy and distributed energy
2166   resources consistent with the most recent emissions reduction roadmap plan required by section
2167   3 of chapter 21N; (iii) promote energy storage and electrification technologies necessary to
2168   decarbonize the environment and economy; (iv) prepare for future climate-driven impacts on the
2169   transmission and distribution systems; (v) accommodate increased transportation electrification,
2170   increased building electrification, economic development, new housing and other potential future
2171   demands on distribution and, where applicable, transmission systems; (vi) minimize or mitigate
2172   impacts on the ratepayers of the commonwealth and (vii) help realize the limits and sublimits
2173   established pursuant to said chapter 21N. An electric company shall use such plan to inform its
2174   annual load forecast and other distribution system plans and shall include:
2175  (A) a load management and virtual power plant strategy that minimizes costs to utility
2176   customers and maximizes benefits of distributed energy resources and generation to utility
2177   customers to the greatest extent possible, which shall include, but not be limited to:
2178  (1) a detailed summary and timeline of all relevant company programs and investments,
2179   including, but not limited to, investments and programs developed as part of the statewide
2180   building decarbonization and energy efficiency investment plans authorized under section 21 of
2181   chapter 25; all investments and programs authorized by the department related to electric grid
2182   modernization, building electrification, transportation electrification and distributed energy
2183   resources; all investments, programs and efforts to utilize advanced metering infrastructure to
2184   either directly or indirectly manage energy demand or enable dispatchable distributed energy
2185   resources to provide benefits or services to the electric grid; and all investments, programs and
2186   efforts to reconduct, replace or rebuild transmission facilities, utilize advanced transmission
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2187   technology and grid-enhancing technology as defined in section 150 of this chapter and utilize
2188   non-wires alternatives.
2189  (2) quantitative 5- and 10-year targets for peak load reduction, including targets for
2190   system-wide peak and separate targets for non-coincident sub-system peaks, for both load
2191   management and virtual power plants that include, but are not limited to, targets set as part of
2192   statewide building decarbonization and energy efficiency investment plans and any other plans
2193   approved by the department;
2194  (3) a qualitative and quantitative evaluation of the benefits of all relevant programs and
2195   investments to reduce, defer or eliminate the need for transmission or distribution infrastructure
2196   investments, including, but not limited to, all cases where such programs reduce, defer or
2197   eliminate specific, future infrastructure investment needs identified through the company’s
2198   current or prior electric-sector modernization plans or through the company’s core capital
2199   planning process, as applicable;
2200  (4) a detailed methodology for ensuring that such programs are optimized to reduce, defer
2201   or eliminate infrastructure investment needs identified through the company’s current or prior
2202   electric-sector modernization plans or through the company’s core capital planning process;
2203   provided, however, that such methodology shall be applied as consistently as practicable
2204   between electric companies; and
2205  (5) a description and summary of company efforts to enable third parties to provide load
2206   management and virtual power plant services, including, but not limited to, efforts to enable third
2207   party wholesale market participation, changes to company procurement processes or
2208   quantification of the distribution system benefits provided by third party offerings; provided,
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2209   however, that the company shall detail the status of any past, current or planned programs or
2210   procurements related to third party-provided grid services and shall provide information on how
2211   third parties can contract with the company, participate in programs and access customer electric
2212   usage data to enable load management and demand response services; provided further, that the
2213   company shall develop and propose for department approval the terms and conditions under
2214   which a third party may provide such services, including, but not limited to, distributed energy
2215   resource management system dispatch schedule, deliverability and performance requirements
2216   and compensation and non-performance penalty structures aligned with local distribution system
2217   grid needs.
2218  (B) information on the flexible interconnection program required under section 157
2219   including, but not limited to:
2220  (1) a detailed summary of the flexible interconnection program and a timeline for all
2221   proposed and under development alternative interconnection solutions, and associated
2222   investments, that meet the definition of flexible interconnection under subsection (a) of section
2223   157, including, but not limited to, relevant efforts to make use of advanced metering
2224   infrastructure and smart inverters; and
2225  (2) a qualitative and quantitative evaluation of the benefits of the flexible interconnection
2226   program and proposed and under development alternative interconnection solutions to reduce,
2227   defer or eliminate the need for transmission or distribution infrastructure investments, including,
2228   but not limited to, all cases where the flexible interconnection program and proposed and under
2229   development alternative interconnection solutions reduce, defer or eliminate specific
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2230   infrastructure investment needs identified through the company’s current or prior electric-sector
2231   modernization plans or through the company’s core capital planning process, as applicable.
2232  (3) a description of how the load management and virtual power plant plan provided
2233   pursuant to paragraph (1) and the flexible interconnection program required under section 157
2234   are integrated with other distribution system planning efforts to most effectively reduce costs and
2235   maximize benefits to ratepayers, advance energy affordability and help the commonwealth
2236   realize its statewide greenhouse gas emissions limits and sublimits established pursuant to
2237   chapter 21N.
2238  (4) a climate vulnerability and resilience plan, which shall include, but not be limited to,
2239   the following:
2240  (I) an evaluation of the climate science and projected sea level rise, extreme
2241   temperatures, precipitation, humidity and storms and other climate-related risks for the service
2242   territory;
2243  (II) an evaluation and risk assessment of potential impacts of climate change on existing
2244   operations, planning and physical assets;
2245  (III) identification, prioritization and cost-benefit analysis of adaptation options to
2246   increase asset and system-wide resilience over time;
2247  (IV) a community engagement plan with targeted engagement for low- and moderate-
2248   income populations in the service territory; and
2249  (V) an implementation timeline for making changes in line with the findings of the study
2250   such as modifying design and construction standards, modifying operations and planning
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2251   processes and relocating or upgrading existing infrastructure to ensure reliability and resilience
2252   of the grid.
2253  (b) An electric-sector modernization plan developed pursuant to subsection (a) shall
2254   describe in detail: (i) improvements to the electric distribution system to increase reliability and
2255   strengthen system resiliency to address potential weather-related and disaster-related risks; (ii)
2256   the availability and suitability of new technologies including, but not limited to, smart inverters,
2257   advanced metering and telemetry and energy storage technology for meeting forecasted
2258   reliability and resiliency needs, as applicable; (iii) patterns and forecasts of distributed energy
2259   resource adoption in the company’s territory and upgrades that might facilitate or inhibit
2260   increased adoption of such technologies; (iv) improvements to the distribution system that will
2261   enable customers to express preferences for access to renewable energy resources; (v)
2262   improvements to the distribution system that will facilitate transportation or building
2263   electrification, economic development and new housing; (vi) improvements to the transmission
2264   or distribution system to facilitate achievement of the statewide greenhouse gas emissions limits
2265   under chapter 21N and consistent with the most recent emissions reduction roadmap plan
2266   required by section 3 of said chapter 21N; (vii) opportunities to deploy energy storage
2267   technologies to improve renewable energy utilization and avoid curtailment; (viii) alternatives to
2268   proposed investments, including changes in rate design, load management and other methods for
2269   reducing demand, enabling flexible demand and supporting dispatchable demand response; and
2270   (ix) alternative approaches to financing proposed investments. For all proposed investments and
2271   alternative approaches, each electric company shall identify customer benefits associated with
2272   the investments and alternatives including, but not limited to, safety, grid reliability and
2273   resiliency, the minimization of costs attributable to complying with the load management and
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2274   virtual power plant requirements of this section, facilitation of the electrification of buildings and
2275   transportation, accommodation of increased economic development and new housing, integration
2276   of distributed energy resources, avoided renewable energy curtailment, reduced greenhouse gas
2277   emissions and air pollutants, avoided land use impacts and minimization or mitigation of impacts
2278   on the ratepayers of the commonwealth.
2279  (c) In developing a plan pursuant to subsection (a), an electric company shall:
2280  (i) prepare and use 3 planning horizons for electric demand, including a 5–year forecast, a
2281   10–year forecast and a demand assessment through 2050 to account for future trends, including,
2282   but not limited to, future trends in the adoption of renewable energy, distributed energy resources
2283   and energy storage and electrification technologies necessary to achieve the statewide
2284   greenhouse gas emission limits and sublimits established pursuant to chapter 21N;
2285  (ii) consider and include a summary of all proposed and related investments, alternatives
2286   to these investments and alternative approaches to financing these investments that have been
2287   reviewed, are under consideration or have been approved by the department previously;
2288  (iii) solicit input from the Grid Modernization Advisory Council, established in section
2289   92C, on topics including, but not limited to, planning scenarios and modeling and the
2290   requirements of subsections (a) and (c); and respond to information and document requests from
2291   said council;
2292  (iv) solicit input from the entities listed in section 3 of chapter 43D, the director of the
2293   permit regulatory office established by section 3H of chapter 23Aand the Massachusetts office of
2294   business development established by section 1 of chapter 23A regarding the planning scenarios,
2295   modeling and proposed investments related to economic development and new housing;
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2296  (v) solicit input from third-party providers of services that directly or indirectly manage
2297   energy demand to reduce its impact on and provide benefits to the electric power system or
2298   utilize or otherwise enable dispatchable distributed energy resources to provide benefits or
2299   services to the electric grid; and
2300  (vi) conduct technical conferences and not less than 3 stakeholder meetings to inform the
2301   public, appropriate state and federal agencies, companies engaged in the development and
2302   installation of distributed generation, energy storage, vehicle electrification systems and building
2303   electrification systems, third-party providers of services, including, but not limited to, those
2304   providing load management and virtual power plant services and Massachusetts businesses and
2305   housing developers about activities undertaken pursuant to this section.
2306  (d) An electric company shall submit its first plan for review, input and recommendations
2307   to the Grid Modernization Advisory Council, established in section 92C, by September 1, 2023,
2308   and thereafter once every 5 years in accordance with a schedule determined by the department;
2309   provided, however, that the plan shall be submitted to the Grid Modernization Advisory Council
2310   not later than 150 days before the electric company files the plan with the department; provided
2311   further, that the Grid Modernization Advisory Council shall return the plan to the company with
2312   recommendations not later than 70 days before the company files the plan with the department.
2313  An electric company shall submit its electric-sector modernization plan, together with a
2314   documentation of the Grid Modernization Advisory Council’s review, input and
2315   recommendations, including, but not limited to, a list of each individual recommendation, the
2316   status of each recommendation with an explanation of why each recommendation was adopted,
2317   adopted as modified or rejected, along with a statement of any unresolved issues, to the
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2318   department in accordance with a schedule determined by the department. An electric company
2319   shall also submit a list of the entities with whom it engaged as required in clauses (iii) through
2320   (vi), inclusive, of subsection (c) with a summary of the input provided by such entities.
2321  The electric company shall be permitted to include in base electric distribution rates all
2322   prudently incurred plant additions that are used and are useful. The department shall promptly
2323   consider the plan and shall provide an opportunity for interested parties to be heard in a public
2324   hearing. The department shall approve, approve with modifications or reject the plan within 7
2325   months of the plan’s submission. In order to be approved, a plan shall provide net benefits for
2326   customers and meet the criteria enumerated in subsection (a).
2327  (e) An electric-sector modernization plan developed by an electric company pursuant to
2328   subsection (a) shall propose specific, enumerated investments to the distribution systems and,
2329   where applicable, transmission systems, alternatives to such investments and alternative
2330   approaches to financing such investments. The electric-sector modernization plan shall include a
2331   list of all investments that are under review or have been approved by the department previously,
2332   including investments being recovered through rates charged by the company. The plan shall
2333   demonstrate how investments proposed pursuant to this subsection, together with the list of
2334   investments that are under review or have been approved present a comprehensive, integrated
2335   plan to maximize net benefits for customers, meet the criteria enumerated in subsection (a) and
2336   minimize the risk of stranded or duplicative investments. An electric company shall submit 2
2337   reports per year to the department and the joint committee on telecommunications, utilities and
2338   energy on the deployment of approved electric-sector modernization plan investments in
2339   accordance with any performance metrics included in the approved plans.
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2340  (f) As part of the plans filed with the department under this section, electric companies
2341   shall propose, and the department may authorize, earnings sharing or other mechanisms designed
2342   to provide electric companies with a return on investments in load management and reduction,
2343   virtual power plants, and non-wires alternatives. The department shall authorize such
2344   mechanisms if necessary to encourage the deployment of load management and reduction,
2345   virtual power plants, and non-wires alternatives and support lower-cost outcomes for electric
2346   utility customers.
2347  SECTION 70. Said chapter 164 is hereby further amended by inserting after section 92C
2348   the following section:-
2349  Section 92D. (a) Not later than July 1, 2028, the department shall establish a
2350   comprehensive distribution system planning and cost recovery framework which shall include,
2351   but not be limited to, electric-sector modernization plans and the discrete investments identified
2352   therein, base distribution rates and associated applications, reconciliation charges and associated
2353   filings and other department proceedings and electric company filings deemed relevant by the
2354   department. Such framework shall apply to any petition to amend electric rates filed with the
2355   department in accordance with section 94 on or after July 1, 2028.
2356  (b) The framework required under subsection (a) shall seek to advance the following
2357   objectives: (i) minimize costs to ratepayers, including through the use of non-wires alternatives,
2358   load management, virtual power plants, flexible interconnection programs, advanced
2359   transmission technologies and grid enhancement technologies; (ii) consolidate the proceedings
2360   through which distribution system planning is conducted; (iii) consolidate the number of
2361   proceedings and charges through which an electric companies may seek cost recovery; (iv)
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2362   aligning distribution system plans and investments included in rate applications filed in
2363   accordance with section 94 and the electric-sector modernization plans filed in accordance with
2364   section 92B; (v) ensure that rate applications filed in accordance with section 94 present a
2365   comprehensive overview of current and future electric company capital and operating
2366   expenditures regardless of how such costs have historically been recovered; (vi) prioritize cost
2367   recovery mechanisms that adjust base distribution rates over time; (vii) optimizing distribution
2368   system investments to meet distribution system needs, including those enumerated in subsection
2369   (a) of section 92B; (viii) aligning the interests of the electric companies, ratepayers and
2370   developers with respect to incentive mechanisms; and (ix) maximize transparency, accessibility
2371   and meaningful participation for stakeholders in the development and regulatory review of
2372   distribution system plans and associated investments.
2373  (c) The framework required under subsection (a) may include: (i) a process by which
2374   each electric company may submit an application for preliminary review of specific, enumerated
2375   investments consistent with the electric-sector modernization plan most recently approved by the
2376   department to be recovered through base distribution rates; and (ii) criteria under which the
2377   electric company may make investments to serve incremental electricity demand or incremental
2378   distributed generation before such demand or generation materializes.
2379  (d) Not later than December 1, 2027, each electric company shall submit to the
2380   department an assessment of the current performance and utilization of its electric distribution
2381   and transmission system as compared with the performance and utilization of which it is capable.
2382   Each assessment shall include, but not be limited to: (i) the ratio of distribution system peak load
2383   to total distribution electric grid capacity; (ii) the ratio of current electric load delivered to total
2384   potential deliverable electric load over the distribution system; (iii) the percentage of kilowatt-
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2385   hours of electricity lost during the distribution process or by the distribution system; (iv) an
2386   analysis of constrained circuits on the distribution system; and (v) an evaluation of the
2387   performance of the distribution system at peak times; provided, however, that each electric
2388   company shall provide to the department any additional information the department may request
2389   in connection with its review and evaluation of the assessment and the efficiency and
2390   performance of the electric company’s system.
2391  (e) Each electric company shall petition the department for approval of electric grid
2392   utilization metrics; provided, however, that such petition shall identify the metrics the electric
2393   company currently employs and proposes to employ as well as an overview of utilization metrics
2394   standards in the industry.
2395  (f) The department shall review each assessment, petition, current and proposed metrics
2396   and accompanying information pursuant to this section. For each electric company, or for
2397   electric companies in the aggregate, the department shall determine: (i) which if any metrics
2398   shall be utilized; (ii) whether they shall be applied at the feeder and substation level; (iii) whether
2399   they shall be reported in future filings;, and (iv) whether assessments and metrics may vary
2400   seasonally. The department shall analyze the potential of each electric company to increase
2401   electric grid performance and utilization through the use of virtual power plants and non-wires
2402   alternatives, including, but not limited to: (A) energy storage resources; (B) customer-owned and
2403   customer-financed capacity resources; (C) virtual power plants; (D) flexible interconnections;
2404   and (E) advanced transmission technologies and grid enhancement technologies. The department
2405   may request any information it may require to conduct its review of the assessment, petition and
2406   metrics and to evaluate an electric company’s potential to increase electric grid performance and
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2407   utilization through the use of virtual power plants, non-wires alternatives and other methods of
2408   improving electric grid performance and utilization.
2409  (g) Not later than July 1, 2028, the department shall approve electric grid utilization
2410   metrics which shall include, as appropriate, the following: (i) a description of the ways in which
2411   such metrics may inform the department’s consideration of future utility requests for approval of
2412   cost recovery for capital investments; (ii) a timeline by which each electric company shall
2413   increase electric grid utilization in accordance with the approved metrics; and (iii) direction
2414   regarding the potential of each electric company to increase electric grid performance and
2415   utilization through the use of virtual power plants and non-wires alternatives, including, but not
2416   limited to: (i) energy storage resources; (ii) customer-owned and customer-financed capacity
2417   resources; (iii) virtual power plants; (iv) flexible interconnection; and (v) advanced transmission
2418   technologies and grid enhancement technologies.
2419  (h) In subsequent filings, each electric company shall submit an updated assessment of
2420   current system performance and utilization relative to approved metrics and of the description,
2421   timeline, and direction provided by the department in subsection (d) and may propose new or
2422   modified metrics for approval to the department.
2423  (i) In its annual report, the department shall include any findings it made or is considering
2424   with respect to an electric company’s assessment of the performance and utilization metrics
2425   approved by the department and with respect to the electric company’s performance against such
2426   metrics. In such annual report, the department shall analyze the potential of each electric
2427   company to increase electric grid utilization through the use of virtual power plants and non-
2428   wires alternatives, including, but not limited to, the following: (i) energy storage resources; (ii)
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2429   customer-owned and customer-financed capacity resources; (iii) virtual power plants; and (iv)
2430   flexible interconnection. To comply with the requirements of this subsection, the department
2431   may request of each electric company any information necessary to properly evaluate the electric
2432   company’s use of virtual power plants, non-wires alternatives and other methods to improve
2433   electric grid performance and utilization in the commonwealth.
2434  SECTION 71. Said chapter 164 is hereby further amended by striking out section 124F,
2435   as appearing in the 2024 Official Edition, and inserting in place thereof the following section:-
2436  Section 124F (a) For the purposes of this section, “unhealthy heat threshold”, shall mean
2437   a statewide population-weighted daily maximum temperature of 85 degrees Fahrenheit or greater
2438   for 3 consecutive days.
2439  (b) No gas or electric company shall, between November 15 and March 15, shut off gas
2440   or electric service to any residential customer who cannot pay an overdue charge because of
2441   financial hardship when such gas or electric service is used to provide heat or to operate the
2442   heating system of the customer’s unit or building.
2443  (c) No electric company shall, between May 15 and September 15, shut off electric
2444   service to any residential customer who cannot pay an overdue charge because of financial
2445   hardship during periods that are predicted to meet or exceed the unhealthy heat threshold.
2446  (d) The department, in consultation with the department of public health, may promulgate
2447   such rules and regulations consistent with this section as it deems reasonable and necessary to
2448   implement the provisions of this section.
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2449  SECTION 72. Said chapter 164 is hereby further amended by striking out section 137, as
2450   so appearing, and inserting in place thereof the following section:-
2451  Section 137. (a) Notwithstanding any general or special law to the contrary, any non-
2452   profit institution in the commonwealth or any agency, executive office, department, board,
2453   commission, bureau, division or authority thereof, including the executive, legislative and
2454   judicial branches of the commonwealth or any political subdivision thereof, or of any authority
2455   established by the general court to serve a public purpose, may, unless located within the
2456   boundaries of a community served by a municipal light department, participate in and become a
2457   member of any competitively procured program organized and administered under chapter 25A
2458   or this chapter by or on behalf of any public instrumentality of the commonwealth or of any
2459   subsidiary organization thereof for the purpose of group purchasing of electricity, natural gas or
2460   telecommunications services, including supply, building or transportation electrification, energy
2461   management services, distributed energy resources or renewable energy projects and related
2462   products, equipment or goods; provided, however, that any entity seeking to provide group
2463   purchasing services pursuant to this section to such institutions, agencies, executive offices,
2464   departments, boards, commissions, bureaus, divisions or authorities shall be an aggregator
2465   subject to the requirements of clause (ii) of paragraph (1) of section 1F; provided further, that
2466   each such entity shall, not more than 90 days after the close of its business year, submit an
2467   annual report on its organizational and compensation structure and its various business activities
2468   with the secretary of energy and environmental affairs, the commissioner of the department of
2469   public utilities, the clerks of the house of representatives and the senate, the chairs of the house
2470   and senate committees on ways and means and the chairs of the joint committee on
2471   telecommunications, utilities and energy.
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2472  (b) The disposition of municipal or state real property by lease, easement or license for
2473   renewable energy shall not require competitive bidding when part of a power purchase
2474   agreement or a net metering agreement in a program organized and administered under this
2475   section.
2476  (c) Any agency, executive office, department, board, commission, bureau, division or
2477   authority of the commonwealth, including the executive, legislative and judicial branches of the
2478   commonwealth, may, on behalf of the commonwealth, dispose of real property by lease,
2479   easement or license which is part of a power purchase agreement or net metering agreement in a
2480   program organized and administered under this section, including, but not limited to,
2481   construction of renewable energy projects on state property.
2482  (d) Any building or transportation electrification, energy management service, distributed
2483   energy resource or renewable energy project which is part of a program organized and
2484   administered under this section and considered to be public construction shall be subject to
2485   sections 26 to 27D, inclusive, and section 29 of chapter 149 and subject to approval by the
2486   division of capital asset management and maintenance or other building owners as applicable to
2487   property owned by the commonwealth.
2488  (e) Any purchase of goods and services which is a part of a program organized and
2489   administered under this section by any executive office, department, agency, office, division,
2490   board, commission or institution within the executive branch shall be subject to section 22 of
2491   chapter 7 and sections 51 and 52 of chapter 30.
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2492  SECTION 73. Section 138 of said chapter 164, as so appearing, is hereby amended by
2493   striking out the definitions of “Class I net metering credit”, “Class II net metering credit” and
2494   “class III net metering credit” and inserting in place thereof the following 3 definitions:-
2495  “Class I net metering credit”, a credit equal to the excess kilowatt-hours by time of use
2496   billing period, if applicable, multiplied by the sum of the distribution company’s: (i) default
2497   service kilowatt-hour charge in the ISO–NE load zone where the customer is located; (ii)
2498   distribution kilowatt-hour charge; and (iii) transmission kilowatt-hour charge; provided,
2499   however, that this shall not include the demand side management and renewable energy kilowatt-
2500   hour charges set forth in sections 19 and 20 of chapter 25; and provided further, that credit for a
2501   Class I net metering facility that is not an agricultural net metering facility or that is not using
2502   solar, anaerobic digestion or wind as its energy source shall be the average monthly clearing
2503   price at the ISO–NE.
2504  “Class II net metering credit”, a credit equal to the excess kilowatt-hours by time of use
2505   billing period, if applicable, multiplied by the sum of the distribution company’s: (i) default
2506   service kilowatt-hour charge in the ISO–NE load zone where the customer is located; (ii)
2507   distribution kilowatt-hour charge; and (iii) transmission kilowatt-hour charge; provided,
2508   however, that this shall not include the demand side management and renewable energy kilowatt-
2509   hour charges set forth in sections 19 and 20 of chapter 25.
2510  “Class III net metering credit”, a credit equal to the excess kilowatt-hours by time of use
2511   billing period, if applicable, multiplied by the sum of the distribution company’s: (i) default
2512   service kilowatt-hour charge in the ISO–NE load zone where the customer is located; and (ii)
2513   transmission kilowatt-hour charge; provided, however, that for a Class III net metering facility of
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2514   a municipality or other governmental entity, the credit shall be equal to the excess kilowatt-hours
2515   multiplied by the sum of (i) and (ii) and the distribution kilowatt-hour charge; and provided
2516   further, that this shall not include the demand side management and renewable energy kilowatt-
2517   hour charges set forth in sections 19 and 20 of chapter 25.
2518  SECTION 74. Said section 138 of said chapter 164, as so appearing, is hereby further
2519   amended by striking out the definition of “market net metering credit” and inserting in place
2520   thereof the following definition:-
2521  “Market net metering credit”, (i) a credit equal to 60 per cent of the excess kilowatt-hours
2522   by time of use billing period, if applicable, multiplied by the sum of the distribution company’s:
2523   (a) default service kilowatt-hour charge in the ISO–NE load zone where the customer is located;
2524   (b) distribution kilowatt-hour charge; and (c) transmission kilowatt-hour charge; provided,
2525   however, this shall not include the demand side management and renewable energy kilowatt-
2526   hour charges set forth in sections 19 and 20 of chapter 25; or (ii) for net metering facilities of a
2527   municipality or other governmental entity, a credit equal to the excess kilowatt-hours by time of
2528   use billing period, if applicable, multiplied by the sum of the distribution company’s: (a) default
2529   service kilowatt-hour charge in the ISO-NE load zone where the customer is located; (b)
2530   distribution kilowatt-hour charge; and (c) transmission kilowatt-hour charge; provided, however,
2531   that this shall not include the demand side management and renewable energy kilowatt-hour
2532   charges set forth in said sections 19 and 20 of said chapter 25; and, provided further, that credits
2533   shall only be allocated to an account of a municipality or government entity.
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2534  SECTION 75. Said section 138 of said chapter 164, as so appearing, is hereby further
2535   amended by striking out the definition of “neighborhood net metering credit” and inserting in
2536   place thereof the following definition:-
2537  “Neighborhood net metering credit”, a credit equal to the excess kilowatt-hours by time
2538   of use billing period, if applicable, multiplied by the sum of the distribution company's: (i)
2539   default service kilowatt-hour charge in the ISO–NE load zone where the customer is located; and
2540   (ii) transmission kilowatt-hour charge; provided, however, that “neighborhood net metering
2541   credit” shall not include the demand side management and renewable energy kilowatt-hour
2542   charges set forth in sections 19 and 20 of chapter 25.
2543  SECTION 76. Said section 138 of said chapter 164, as so appearing, is hereby further
2544   amended by inserting after the definition of “solar net metering facility” the following 2
2545   definitions:-
2546  “Supply rate net metering credit”, a credit equal to the excess kilowatt-hours by time of
2547   use billing period, if applicable, multiplied by the difference between the distribution company’s
2548   default service kilowatt-hour charge in the ISO–NE load zone where the customer is located and
2549   the distribution company’s costs associated with: (i) the renewable energy portfolio standard
2550   requirements established pursuant to section 11F of chapter 25A; (ii) the alternative energy
2551   portfolio standard requirements established pursuant to section 11F1/2 of chapter 25A; (iii) the
2552   clean peak portfolio standard requirements established pursuant to section 17 of chapter 25A;
2553   (iv) any portfolio standard requirements established by the department of environmental
2554   protection pursuant to sections 3 and 6 of chapter 21N; and (v) the distribution company’s basic
2555   service administrative cost factor.
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2556  “Supply rate net metering facility”, a Class I, Class II, or Class III net metering facility,
2557   or a neighborhood net metering facility, that files an Interconnection Service Agreement
2558   application after May 13, 2025, is authorized to interconnect to the distribution system by a
2559   distribution company on or after January 1, 2026, and is not a cap-exempt facility pursuant to
2560   subsection (i) of section 139.
2561  SECTION 77. Subsection (f) of section 139 of said chapter 164, as so appearing, is
2562   hereby amended by striking out the third sentence.
2563  SECTION 78. Said section 139 of said chapter 164, as so appearing, is hereby further
2564   amended by striking out, in lines 137 to 138 and 145 to 147, inclusive, the words “that are not
2565   net metering facilities of a municipality or other governmental entity under subsection (f)”.
2566  SECTION 79. Subsection (l) of said section 139 of said chapter 164, as so appearing, is
2567   hereby amended by inserting after the figure “40B”, in line 216, the following words:- or where
2568   the single parcel contains multi-family housing in a zoning district that is compliant with section
2569   3A of Chapter 40A.
2570  SECTION 80. Said section 139 of said chapter 164, as so appearing, is hereby further
2571   amended by adding the following subsection:-
2572  (m) A supply rate net metering facility shall generate supply rate net metering credits.
2573  SECTION 81. Subsection (a) of section 139A of said chapter 164, as so appearing, is
2574   hereby amended by striking out the definition of “Small hydroelectric power net metering
2575   facility” and inserting in place thereof the following definition:-
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2576  “Small hydroelectric power net metering facility”, a turbine-generator unit with a
2577   nameplate or demonstrated operational capacity of not more than 2 megawatts, using water to
2578   generate electricity that is connected to a distribution company; provided, however, that turbine-
2579   generator units sharing a common point of interconnection or parcel shall be treated as individual
2580   facilities rather than in the aggregate.
2581  SECTION 82. Said chapter 164 is hereby further amended by striking out section 142, as
2582   so appearing, and inserting in place thereof the following section:-
2583  Section 142. (a) As used in this section, the following words shall have the following
2584   meaning unless the context clearly requires otherwise:
2585  “Eligible system”, a plug-in solar photovoltaic system that is certified by UL LLC,
2586   formerly known as Underwriters Laboratories, or an equivalent nationally recognized testing
2587   laboratory.
2588  “Interconnection agreement”, an agreement between a person and a distribution company
2589   governing the connection of an interconnecting generation facility to the distribution company’s
2590   system and the ongoing operation of the interconnecting generation facility after it is connected
2591   to the system.
2592  “Plug-in battery system”, an alternating current-coupled energy storage device that: (i)
2593   connects to a retail electricity customer's electrical system wiring through a standard outlet; (ii) is
2594   capable of charging from or discharging to the electrical system to which it is connected
2595   independently of any photovoltaic system; and (iii) is intended to offset on-site electricity
2596   consumption by the retail electricity customer, perform energy arbitrage or participate in grid-
2597   support operations.
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2598  “Plug-in photovoltaic system”, a photovoltaic generation device that: (i) connects to a
2599   retail customer’s electrical system writing through a standard electrical outlet in a manner that is
2600   consistent with the requirements of interconnected electric power sources established in the
2601   National Electrical Safety Code adopted by the board of building regulations and standards; (ii)
2602   is intended primarily to offset, in part, the retail electricity customer’s electricity consumption;
2603   and; (iii) uses inverters that are configured to shut off after 0.2 seconds if power is disrupted.
2604  (b) Subject to the requirements of this section, a retail electricity customer may install
2605   and operate 1 or more eligible systems at such retail electricity customer’s service address for the
2606   purpose of offsetting on-site electricity consumption.
2607  (c) An eligible system that has a maximum power output to a standard electrical outlet of
2608   not more than 391 watts shall be exempt from product listing provisions from UL LLC, formerly
2609   known as Underwriters Laboratories, or an equivalent nationally recognized testing laboratory
2610   that would require alterations to the building's premises, wiring or electrical panels.
2611  (d) An eligible system installed and operated in accordance with the requirements of this
2612   section may not be used in net metering pursuant to this chapter.
2613  (e) A retail electricity customer that installs an eligible system in accordance with
2614   subsection (c) of this section shall provide notification to the distribution company in whose
2615   service territory the eligible system is installed in a form prescribed by the department within 30
2616   days of installation. The notification shall include, but not be limited to, the retail electricity
2617   customer’s service address, the inverter capacity of the eligible system and a statement that the
2618   retail electricity customer is in compliance with the requirements of this section. A distribution
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2619   company may not deny the installation of an eligible system that complies with the requirements
2620   of this section.
2621  (f) A distribution company may not require a retail electricity customer that installs or
2622   operates an eligible system in accordance with the requirements of this section to: (i) obtain
2623   approval from the distribution company prior to installation or operation; (ii) submit an
2624   interconnection application, execute an interconnection agreement or undergo an interconnection
2625   study in connection with the eligible system; (iii) pay any fee or charge to the distribution
2626   company related to the eligible system; or (iv) install additional controls or requirement beyond
2627   what is integrated into the eligible system.
2628  (g) A distribution company shall not be liable for any damage or injury caused by the
2629   installation or operation of an eligible system by a retail electricity customer in accordance with
2630   this section.
2631  (h) A person shall neither directly nor indirectly unreasonably prohibit the installation,
2632   use or operation of a portable-scale solar generation device.
2633  (i) A covenant or restriction that explicitly or indirectly unreasonably prohibits or restricts
2634   the installation, use or operation of a small portable solar generation device is unenforceable and
2635   void as a matter of public policy.
2636  (j) A tenant shall be responsible for any damages sustained to the rental dwelling unit or
2637   the premises as a result of any small portable solar generation device installed pursuant to this
2638   section. A tenant’s liability shall be limited strictly to instances of documented gross negligence
2639   or intentional misuse. The landlord shall carry the burden of proof to demonstrate that the
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2640   damage was caused by an affirmative act of the tenant outside the scope of ordinary residential
2641   use.
2642  SECTION 83. Said chapter 164 is hereby further amended by striking out section 145, as
2643   so appearing, and inserting in place thereof the following section:-
2644  Section 145. (a) For the purposes of this section, the following words shall have the
2645   following meanings unless the context clearly requires otherwise:
2646  “Customer”, a retail natural gas customer.
2647  “Eligible infrastructure measure”, a replacement, retirement or an improvement of
2648   existing infrastructure of a gas company that: (i) is made on or after January 1, 2015; (ii) is
2649   designed to improve public safety or infrastructure reliability; (iii) does not increase the revenue
2650   of a gas company by connecting an improvement for a principal purpose of serving new
2651   customers; (iv) reduces, or has the potential to reduce, lost and unaccounted for natural gas
2652   through a reduction in natural gas system leaks; (v) is not included in the current rate base of the
2653   gas company as determined in the gas company's most recent rate proceeding; (vi) may include
2654   use of advanced leak repair technology approved by the department to repair an existing leak-
2655   prone gas pipe to extend the useful life of the such gas pipe by no less than 10 years; and (vii)
2656   may include replacing gas infrastructure clean thermal energy infrastructure.
2657  “Non-emitting renewable thermal infrastructure”, infrastructure to distribute clean
2658   thermal energy, as defined in section 3 of chapter 25A.
2659  “Plan”, a detailed compilation of eligible infrastructure measures that a gas company files
2660   pursuant to subsection (b).
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2661  “Project”, an eligible infrastructure measure proposed by a gas company in a plan filed
2662   under this section.
2663  “Stranded asset”, a physical asset on a gas company’s balance sheet that has become or is
2664   projected to become obsolete, unnecessary, redundant or non-productive before the end of its
2665   expected useful life.
2666  (b) A gas company shall file with the department a plan to address aging or leaking
2667   natural gas infrastructure within the commonwealth and the leak rate on the gas company's
2668   natural gas infrastructure in the interest of public safety and reducing lost and unaccounted for
2669   natural gas through a reduction in natural gas system leaks. Each company's gas infrastructure
2670   plan shall include interim targets for the department's review. The department shall review these
2671   interim targets to ensure each gas company is meeting the appropriate pace to reduce the leak
2672   rate in a safe and timely manner and comply with the limits and sublimits established pursuant to
2673   chapter 21N of the general laws. The interim targets shall be for periods of not more than 6 years
2674   or at the conclusion of 2 complete 3-year walking survey cycles conducted by the gas company.
2675   The gas companies shall incorporate these interim targets into timelines for remediating leak-
2676   prone infrastructure filed pursuant to subsection (c) and may update them based on overall
2677   progress. The department may levy a penalty against any gas company that fails to meet its
2678   interim target in an amount up to and including the equivalent of 2.5 per cent of such gas
2679   company's transmission and distribution service revenues for the previous calendar year.
2680  (c) Any plan filed with the department shall include, but not be limited to: (i) eligible
2681   infrastructure measures concerning mains, services, meter sets and other ancillary facilities
2682   composed of non-cathodically protected steel, cast iron and wrought iron, prioritized to
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2683   implement the federal gas distribution pipeline integrity management plan annually submitted to
2684   the department and consistent with subpart P of 49 C.F.R. part 192; (ii) an anticipated timeline
2685   for the completion of each project; (iii) the estimated cost of each project; (iv) rate change
2686   requests; (v) a description of customer costs and benefits under the plan, including the costs of
2687   potential stranded assets and the benefits of avoiding financial exposure to such assets; (vi) the
2688   relocations, where practical, of a meter located inside of a structure to the outside of said
2689   structure for the purpose of improving public safety; and (vii) any other information the
2690   department considers necessary to evaluate the plan.
2691  A gas company shall, at 5-year intervals, provide the department with a summary of its
2692   progress to date, a summary of work to be completed during the next 5 years and any similar
2693   information the department may require.
2694  (d) If a gas company files a plan on or before October 31 for the subsequent construction
2695   year, the department shall review the plan within 6 months. The plan shall be effective as of the
2696   date of filing, pending department review. The department may modify a plan prior to approval
2697   at the request of a gas company or make other modifications to a plan as a condition of approval.
2698   The department shall consider the costs and benefits of the plan including, but not limited to,
2699   impacts on ratepayers, reductions of lost and unaccounted for natural gas through a reduction in
2700   natural gas system leaks and improvements to public safety, and reducing greenhouse gas
2701   emissions in compliance with the limits and sublimits established in chapter 21N. The
2702   department shall give priority to plans narrowly tailored to addressing leak-prone infrastructure
2703   most immediately in need of remediation.
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2704  (e) If a plan is in compliance with this section and the department determines the plan
2705   operates in a balanced manner to reasonably accelerate eligible infrastructure measures and
2706   provide benefits, the department shall issue preliminary acceptance of the plan in whole or in
2707   part. A gas company shall then be permitted to begin recovery of the estimated costs of projects
2708   included in the plan beginning on May 1 of the year following the initial filing and collect any
2709   revenue requirement, including depreciation, property taxes and return associated with the plan.
2710  (f) On or before May 1 of each year, a gas company shall file final project documentation
2711   for projects completed in the prior year to demonstrate substantial compliance with the plan
2712   approved pursuant to subsection (e) and that project costs were reasonably and prudently
2713   incurred. The department shall investigate project costs within 6 months of submission and shall
2714   approve and reconcile the authorized rate factor, if necessary, upon a determination that the costs
2715   were reasonable and prudent. Annual changes in the revenue requirement eligible for recovery
2716   shall not exceed the applicable percentages of the gas company's most recent calendar year total
2717   firm revenues, including gas revenues attributable to sales and transportation customers, as set
2718   forth in subsection (i).
2719  (g) All rate change requests made to the department pursuant to an approved plan, shall
2720   be filed annually on a fully reconciling basis, subject to final determination by the department
2721   pursuant to subsection (f). The rate change included in a plan pursuant to section (c), reviewed
2722   pursuant to subsection (d) and taking effect each May 1 pursuant to subsection (e) shall be
2723   subject to investigation by the department pursuant to subsection (f) to determine whether the gas
2724   company has over collected or under collected its requested rate adjustment with such over
2725   collection or under collection reconciled annually. If the department determines that any of the
2726   costs were not reasonably or prudently incurred, the department shall disallow the costs and
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2727   direct the gas company to refund the full value of the costs charged to customers with the
2728   appropriate carrying charges on the over-collected amounts. If the department determines that
2729   any of the costs were not in compliance with the approved plan, the department shall disallow
2730   the costs from the cost recovery mechanism established under this section and shall direct the gas
2731   company to refund the full value of the costs charged to customers with the appropriate carrying
2732   charges on the over collected amounts.
2733  (h) Notwithstanding any other general law, special law, or regulation to the contrary, and
2734   pursuant to rules and regulations promulgated by the department as it deems necessary, a gas
2735   company may terminate natural gas service to a customer where such action ensures that the
2736   affected customer retains continuous access to safe, reliable, and affordable heat, hot water, and
2737   other energy services and can secure adequate substitutes for gas-fired services, as determined by
2738   the department.
2739  (i) For purposes of section (f), the maximum applicable percentage of the local gas
2740   distribution company’s most recent calendar year total firm revenues, including gas revenues
2741   attributable to sales and transportation customers, beginning –
2742  (1) on or after November 1, 2027, and before October 31, 2028, shall be 1.5 percent;
2743  (2) on or after November 1, 2028, and before October 31, 2029, shall be 1.0 percent;
2744  (3) on or after November 1, 2029, and before October 31, 2030, shall be 0.5 percent; and
2745  (4) on or after November 1, 2030, shall be 0 percent.
2746  (j) The department may promulgate rules and regulations under this section. The
2747   department may discontinue a plan and require a gas company to refund any costs charged to
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2748   customers due to failure to substantially comply with a plan or failure to reasonably and
2749   prudently manage project costs.
2750  SECTION 84. Section 147A of said chapter 164, as so appearing, is hereby amended by
2751   striking out, in line 1, the word “section”, the second time it appears, and inserting in place
2752   thereof the following word:- For chapter.
2753  SECTION 85. Said Section 147A of said chapter 164, as so appearing, is hereby further
2754   amended by striking the definition of “non-emitting renewable thermal infrastructure project”
2755   and inserting in place thereof the following definition:-
2756  “Non-emitting renewable thermal infrastructure project”, an infrastructure project to
2757   distribute clean thermal energy as defined in section 3 of chapter 25A
2758  SECTION 86. Subsection (b) of section 150 of said chapter 164, as so appearing, is
2759   hereby amended by striking out, in line 55, the word “Where” and inserting in its place thereof
2760   the following words:- Where the department determines that.
2761  SECTION 87. Subsection (d) of said section 150 of said chapter 164, as so appearing, is
2762   hereby amended by striking out, in lines 74 through 75, the words “Once every 5 years, not later
2763   than September 1 of the fifth year” and inserting in place thereof the following words:- Once
2764   every 3 years, beginning in 2027, and not later than September 15 of each year in which a report
2765   is required.
2766  SECTION 88. Said chapter 164 is hereby further amended by adding the following 10
2767   sections:-
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2768  Section 152. (a) The department shall require that distribution companies and gas
2769   companies provide discounted rates for low-income customers and eligible moderate-income
2770   customers; provided, however, that the cost of such discounts shall be included in the bills
2771   charged to non-discount rate eligible customers of a distribution company or gas company and in
2772   the form of a mandatory non-bypassable fixed monthly charge to fund such discounts; provided
2773   further, that such charge shall be determined separately for each customer class. The department
2774   shall permit statewide cost recovery of such discounts across distribution companies, and
2775   separately gas companies, so as to promote rate equity across the state. Each distribution
2776   company and gas company shall guarantee payment to the generation supplier for all power sold
2777   to low-income and eligible moderate-income customers at the discounted rates.
2778  (b) Eligibility for the low-income discount rates as provided for in this section shall be
2779   established by the department, including, but not limited to, verification of a low-income
2780   customer’s receipt of any means-tested public benefit or verification of eligibility for the home
2781   energy assistance program, or any successor program, for which eligibility does not exceed 200
2782   per cent of the federal poverty level based on a household’s gross income. Such public benefits
2783   may include, but shall not be limited to, assistance that provides cash, housing, food or medical
2784   care including, but not limited to, transitional assistance for needy families, supplemental
2785   security income, emergency assistance to elders, disabled and children, food stamps, public
2786   housing, federally-subsidized or state-subsidized housing, the home energy assistance program
2787   and veterans’ benefits. In a program year in which maximum eligibility for the home energy
2788   assistance program, or any successor program, exceeds 200 per cent of the federal poverty level,
2789   a household that is income eligible for the home energy assistance program shall be eligible for
2790   the low-income discount rates provided for in this section. Eligibility for the moderate-income
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2791   discount rate as provided for in this section shall be established by the department. Following
2792   initial verification of eligibility for the low-income or moderate-income discount rate, eligibility
2793   may be reevaluated not less than every 2 years thereafter.
2794  (c) Each distribution company and gas company shall conduct substantial outreach efforts
2795   to make the low-income or moderate-income discount available to eligible customers; provided,
2796   however, that such outreach may be satisfied by an automated program of matching customer
2797   accounts with: (i) lists of recipients of said means-tested public benefit programs and, based on
2798   the results of said matching program, to presumptively offer a low income discount rate to
2799   eligible customers so identified; and (ii) criteria established by the department for verification of
2800   a moderate-income customer to presumptively offer a moderate-income discount rate to eligible
2801   customers so identified; provided further, that the distribution company or gas company shall,
2802   within 60 days of said presumptive enrollment, inform any such low-income customers or
2803   moderate-income customers of said presumptive enrollment and of their rights and obligations
2804   under said program, including the right to withdraw from said program without penalty.
2805  (d) A residential customer eligible for low-income or moderate-income discount rates
2806   shall receive the service on demand. Each distribution company and gas company shall
2807   periodically notify all customers of the availability and the process for obtaining low-income or
2808   moderate-income discount rates.
2809  (e) Unless otherwise provided by this chapter, on a semi-annual basis, each distribution
2810   company and gas company shall create and distribute information, in the form of a mailing,
2811   webpage or other approved method of distribution, for their customers, on available rebates,
2812   discounts, credits and other cost-saving mechanisms that may lower monthly utility bills.
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2813  (f) There shall be no charge to any residential customer for initiating or terminating low-
2814   income or moderate-income discount rates when said initiation or termination request is made
2815   after a regular meter reading has occurred and the customer is in receipt of the results of said
2816   reading.
2817  (g) The department may promulgate rules and regulations as necessary to implement this
2818   section.
2819  Section 153. (a)(1) As used in this section, the following words shall have the following
2820   meanings unless the context clearly requires otherwise:-
2821  “Distribution asset entitlement” an arrangement under which a non-utility entity holds an
2822   entitlement, approved by the department, to use a distribution company’s infrastructure to move
2823   electricity across the distribution grid.
2824  “Transmission asset entitlement” an arrangement under which a non-utility entity holds
2825   an entitlement, approved by the department, to use a distribution company’s infrastructure to
2826   move electricity across the transmission grid.
2827  (2) The department shall, in accordance with the provisions of this section, review an
2828   application by a distribution company to enter into a lease agreement for either distribution asset
2829   entitlements or transmission asset entitlements with third parties to provide financing and other
2830   monies for investment in distribution projects or transmission projects and direct benefits to the
2831   distribution company’s customers in addition to the direct distribution-related or transmission-
2832   related services provided through the assets funded through the financing arrangement. The
2833   application filed under this section may include all such information identified in paragraph (5)
2834   or it may be a framework application which sets forth the manner in which the distribution
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2835   company and its non-utility counterparty shall opt into specific leases under the framework in a
2836   future filing and with the department reviewing the terms of that framework filing. For purposes
2837   of this section, a non-utility counter party may not be an affiliate of a distribution company. The
2838   department shall, following an adjudicatory hearing pursuant to chapter 30A, make a
2839   determination as to whether the application provides net benefits to the customers of the
2840   distribution company and based on that determination, approve, approve conditionally, reject
2841   without prejudice or reject the application within 9 months of the date the application is filed.
2842  (3) The department shall promulgate regulations on the eligible uses of charitable
2843   financial contributions required pursuant to this section including, but not limited to: (i) support
2844   for low- and moderate-income energy assistance programs; (ii) programs that support the
2845   deployment of energy efficiency, solar, storage, building electrification, or transportation
2846   electrification for low- and moderate-income neighborhoods; (iii) direct benefits for communities
2847   that are hosting or adjacent to the infrastructure being financed through these funds; or (iv) other
2848   eligible uses as identified by the department through a public process.
2849  (4) For the purposes of this section, the department’s determination of whether an
2850   application provides net benefits to the customers of the distribution company shall take into
2851   consideration the charitable financial contributions required pursuant to clause (vi) of paragraph
2852   5as customer benefits.
2853  (5) Any leasing agreement for distribution assets entitlements or transmission assets
2854   entitlements which is entered into and signed by the distribution company and a non-utility third-
2855   party may contain provisions allowing the non-utility counterparty to lease distribution asset
2856   entitlements to distribution projects or transmission asset entitlements to transmission projects of
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2857   the distribution company, provided, however, that the actual distribution entitlement leases or the
2858   transmission entitlement leases under the agreement shall include, but not be limited to:
2859  (i) the requirement that the distribution company retains ownership, operational control,
2860   maintenance and responsibility for regulatory compliance of distribution projects covered by the
2861   distribution entitlement lease or the transmission projects covered by the transmission
2862   entitlement lease; provided, however, that the maximum value of the non-utility counterparty’s
2863   investment interest in distribution projects covered by the distribution entitlement lease shall be
2864   49.9 per cent of the total value of the distribution projects; provided further, that the maximum
2865   value of the non-utility counterparty’s investment interest in transmission projects covered by the
2866   transmission entitlement lease shall be 49.9 per cent of the total value of the transmission
2867   projects;
2868  (ii) the requirement that the distribution company obtain all necessary permits and
2869   approvals required for the projects covered by the distribution entitlement lease or transmission
2870   entitlement lease, including, but not limited to, all approvals from the department; provided,
2871   however, that the projects have been constructed and have commenced commercial operation;
2872  (iii) the specific terms of any distribution entitlement lease or transmission entitlement
2873   lease covered by the application, including the length of the lease, the rental payments for the
2874   lease, any prepayment terms, including, but not limited to, the dollar amount for the rental
2875   payments and the maximum percentage interest that the non-utility counterparty holds in the
2876   assets covered by the distribution-entitlement lease;
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2877  (iv) the requirement that the non-utility counterparty pay its pro-rata share of operating
2878   and maintenance expenses for the covered distribution assets or the covered transmission assets
2879   over the term of the lease;
2880  (v) the methodology to be used to calculate the rate which the nonutility counterparty will
2881   charge to the distribution company’s ratepayers to recover costs associated with its distribution
2882   asset entitlement or its transmission asset entitlement;
2883  (vi) a binding commitment by the non-utility counterparty to make charitable financial
2884   contributions tied to a share of its annual after-tax profits resulting from revenues received from
2885   the distribution company’s ratepayers’ use of the distribution asset entitlements or of the
2886   transmission asset entitlements;
2887  (vii) ratepayer protections to ensure that: (A) the distribution entitlement lease or the
2888   transmission entitlement lease does not lead to the double recovery of costs associated with the
2889   covered assets by enabling the distribution company to recover any of the costs that are
2890   otherwise being recovered in the distribution rate charged by the nonutility counterparty that
2891   holds the distribution entitlement lease; and (B) neither the rate charged by the non-utility
2892   counterparty to recover costs associated with its distribution entitlement lease nor the rate
2893   charged by the nonutility counterparty to recover costs associated with its transmission
2894   entitlement lease exceeds the rate that would otherwise be charged by the distribution company
2895   for its cost to recover the investment in assets covered by the lease in the absence of the lease
2896   agreement;
2897  (viii) a list of projects covered by an application that includes 1 or more specific leases
2898   being proposed for departmental review and approval;
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2899  (ix) if the application includes a framework for the distribution entitlement leases or for
2900   the transmission entitlement leases and contemplates subsequent filings to the department for
2901   review and approval of the leases that are to be subject to such a framework, a process by which
2902   the department reviews and approves such specific projects and specific future leases; and
2903  (x) where a distribution entitlement lease or the transmission entitlement lease allows for
2904   the prepayment of rent by the non-utility counterparty to the distribution company, a requirement
2905   that the non-utility counterparty is responsible for securing its own financing for the prepaid rent.
2906  (b) In reviewing the ratemaking methodology proposed under clause (v) of paragraph (5)
2907   of subsection (a) for an application filed by a distribution company in which the non-utility
2908   counterparty to the lease agreement under paragraph (1) of said subsection (a) is a non-profit
2909   entity or wholly owned subsidiary of a non-profit entity, the department shall give substantial
2910   consideration to allowing, if requested in the application, methodologies including:
2911  (i) a hypothetical capital structure consisting of 50 per cent equity and 50 per cent debt, if
2912   the non-utility counterparty is a non-profit entity or the wholly owned subsidiary of a non-profit
2913   entity, and if the non-utility counterparty uses 100 per cent debt to finance its investment.
2914  (ii) a proxy return on equity using the distribution company’s then-approved return on
2915   equity.
2916  (iii) a levelized fixed rate to recover capital costs using a cost-recovery structure based on
2917   a fixed and levelized rate over the term of the lease; provided, however, that the non-utility
2918   counterparty can provide evidence that such recovery does not violate the requirement set forth
2919   in clause (vii) of paragraph (5) of said subsection (a) that the non-utility counterparty’s rate
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2920   recovery is no higher than what the distribution company could recover in the absence of the
2921   lease.
2922  (iv) a formula rate to recover operations and maintenance costs using a formula rate
2923   design that includes an adjustment factor to recover the nonutility counterparty’s pro-rata share
2924   of the distribution company’s actual annual operations and maintenance costs.
2925  (c) After a distribution entitlement lease agreement or transmission entitlement lease
2926   agreement is entered into between a distribution company and a non-utility counterparty for a
2927   particular set of approved projects under subsections (a) and (b), the non-utility counterparty
2928   shall file an application with the department for approval of rates using the methodology
2929   approved in subsections (a) and (b); provided, however, that the department shall, within 120
2930   days after the department’s receipt of the filing of the application and approve, approve
2931   conditionally, reject without prejudice or reject the application.
2932  (d) Within 1 year of approval of an application and for every year thereafter until the end
2933   of the lease entitlement agreement, the non-utility counterparty shall, on an annual basis, submit
2934   to the department a report on charitable financial contributions including, but not limited to, the
2935   dollar amount and uses of the charitable financial contributions and a copy of the non-utility
2936   counterparty’s Internal Revenue Service Form 990. The non-utility counterparty shall notify the
2937   department within 24 hours following receipt of any notices from either the state or federal
2938   government to (i) cease and desist operations; or (ii) that its tax-exempt status has been revoked;
2939   and any such notification in the case of either (i) or (ii) shall propose remedies to hold ratepayers
2940   harmless.
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2941  Section 154. (a) A gas company may make, sell or distribute clean thermal energy, as
2942   defined in section 3 of chapter 25A, in its existing service territory, and build, own or operate
2943   related infrastructure in such territory, all as provided in, and subject to, chapter 25A; provided,
2944   however, that nothing in this section shall confer any exclusive right in the making, selling or
2945   distribution of such energy or the building, ownership or operation of such infrastructure.
2946  Section 155. For the purpose of ensuring public safety in the making, sale, distribution or
2947   transportation of clean thermal energy, as defined in section 3 of chapter 25A, and in the
2948   construction, ownership or operation of related facilities, equipment and infrastructure, the
2949   department shall have supervision of clean thermal energy facilities and related equipment and
2950   infrastructure of gas companies. The department shall keep itself informed as to the methods,
2951   practices, and condition of all facilities and equipment associated with such energy and shall
2952   make such examinations and investigations as necessary, including the adequacy of operation,
2953   maintenance and capital improvements to ensure the safe operation thereof. After holding
2954   technical conferences and receiving public input, the department may, if necessary, promulgate
2955   regulations to implement this section. The department may establish reasonable fees, which may
2956   be retained by the department, to fund the department’s supervision of clean thermal energy
2957   safety.
2958  Section 156. Each gas company shall develop, and periodically amend, a comprehensive
2959   just transition plan, to be included as part of any climate compliance plan submission directed by
2960   the department, which transition plan shall address workforce impacts arising or potentially
2961   arising from significant economic, technological or political pressures attributable to
2962   decarbonization, artificial intelligence, trade policy, foreign policy, supply chain disruptions or
2963   other developments. In determining the reasonableness of a gas company’s climate compliance
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2964   plan, the department shall consider said company’s just transition plan. Such just transition plan
2965   shall be amended every 2 years, beginning April 1, 2028, and included as an update in any
2966   climate compliance plan submitted by the company.
2967  Each company plan shall: (i) provide projections of any attrition among its in-house
2968   workforce over the 2-year period addressed by the plan; and (ii) identify, as part of its plan,
2969   provisions, opportunities, and initiatives for training and employment opportunities for workers
2970   who may be displaced by such developments. Workers subject to any agreement reached with
2971   labor organizations representing employees at its gas or alternative fuel operations shall be
2972   eligible for such training and employment opportunities.
2973  Section 157. (a) For the purposes of this section, “flexible interconnection” shall mean a
2974   process by which a distribution company allows new customer load to connect and distributed
2975   energy resources to interconnect to the electric distribution grid based on an agreed-upon
2976   curtailment schedule or protocols and associated tariff, contract or technical requirements, as
2977   applicable.
2978  (b) Each distribution company shall offer a comprehensive flexible interconnection
2979   program designed to enable the efficient connection of new customer loads and to maximize the
2980   deployment of distributed energy resources while minimizing associated electric infrastructure
2981   costs. Such a program shall: (i) be as consistent as practicable across all distribution company
2982   service territories; (ii) utilize existing technologies and capabilities deployed by the distribution
2983   company; and (iii) offer additional solutions over time as the distribution company deploys
2984   additional technologies and capabilities. The department shall review and approve each program.
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2985  (c) Each distribution company may request modifications to any approved flexible
2986   interconnection program from the department so long as such modifications are presented to
2987   stakeholders impacted by the planned modifications not less than 3 months prior to filing
2988   requested modifications with the department. Upon presenting such modifications to
2989   stakeholders, the distribution company shall, at a minimum: (i) accept comments on the
2990   modifications; (ii) allow stakeholders to propose modifications; and (iii) develop consensus
2991   language among stakeholders, to the extent possible. The distribution company shall include in
2992   its filing with the department a summary of all alternative proposals provided by stakeholders,
2993   explanations of why the distribution company did not choose to adopt each proposal and a list of
2994   the stakeholders that provided comments on the modifications.
2995  Section 158. (a) For the purposes of this section, the following words shall, unless the
2996   context clearly requires otherwise, have the following meanings:-
2997  “Critical facility”, a facility, building, structure or other infrastructure located within the
2998   commonwealth, where the loss of electrical service would be likely to jeopardize public safety,
2999   public or patient health or cyber security as determined by the municipality in which the
3000   building, structure, facility, or other infrastructure is located or by the municipal, state, or federal
3001   government that owns or controls the real property, building, structure, facility, or other
3002   infrastructure; provided, however, that a critical facility shall include, but not be limited to,
3003   hospitals, assisted care facilities, emergency shelters, emergency operations centers, restoration
3004   staging areas, 911 dispatch centers, fire and police stations, communications infrastructure, water
3005   pumping and sewer treatment stations and correctional facilities.
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3006  “Electric microgrid”, an interconnected set of electricity loads and supply sources that
3007   can operate either parallel to an electric distribution grid or as an island disconnected from an
3008   electric distribution grid.
3009  “Government or critical facility microgrid”, an electric microgrid that is designed and
3010   constructed to serve: (i) buildings, infrastructure and customers that are located on government-
3011   owned or government-controlled real property; (ii) a critical facility; or (iii) a combination
3012   thereof.
3013  (b) A local, regional, state or federal government entity that owns, operates or leases a
3014   renewable energy generating source as defined in section 11F of chapter 25A that: (i) qualifies
3015   under any clean energy standard regulations established by the department of environmental
3016   protection pursuant to subsection (c) of section 3 of chapter 21N; or (ii) qualifies as a class I or
3017   class II renewable energy generation source pursuant to section 11F of chapter 25A may
3018   independently deliver electricity generated from such source across a public right-of-way;
3019   provided, however, that: (A) such source shall be connected to a government or critical facility
3020   microgrid; and (B) such local, regional, state or federal government entity shall engage the
3021   distribution company to complete the interconnection of such microgrid to the electric
3022   distribution grid and does not shift costs to other ratepayers. For the purposes of this section, a
3023   government entity shall not be considered a distribution company or an electric company.
3024  Section 159. (a) As used in this section, the following words shall have the following
3025   meanings unless the context clearly requires otherwise:
3026  “Integrated energy planning” or “IEP”, the coordinated planning of natural gas and
3027   electric power distribution systems to: (i) identify opportunities for strategic electrification and
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3028   demand reduction that minimize total costs to ratepayers across both systems; (ii) reduce
3029   ratepayer exposure to stranded asset risk and unnecessary infrastructure investment; (iii) align
3030   infrastructure investments with the commonwealth’s emissions limits established under chapter
3031   21N, the electric-sector modernization plans developed pursuant to section 92B, and the
3032   comprehensive distribution system planning and cost recovery framework developed pursuant to
3033   section 92D; and (iv) inform gas supply planning and procurement to optimize resource
3034   acquisition in light of anticipated demand changes.
3035  “Non-pipeline alternative” or “NPA”, an activity, investment or resource that delays,
3036   reduces or eliminates the need to construct, replace or upgrade natural gas infrastructure
3037   including, but not limited to, building electrification, clean thermal energy systems, demand
3038   response, energy efficiency, strategic service territory modifications and targeted customer
3039   incentive programs.
3040  (b) The department shall coordinate and oversee integrated energy planning to reduce
3041   costs to ratepayers by avoiding construction or replacement of infrastructure that is unnecessary,
3042   avoidable or at significant risk of being stranded, to reduce greenhouse gas emissions in
3043   compliance with the limits and sublimits established in chapter 21N and to further the priorities
3044   of the department pursuant to section 1A of chapter 25. In carrying out its duties under this
3045   section, the department may: (i) establish procedures for developing, coordinating, overseeing
3046   and implementing integrated energy planning and plan implementation, including, but not
3047   limited to, by establishing planning and implementation roles for the department, gas companies
3048   and distribution companies; (ii) require gas companies and distribution companies to provide the
3049   data and analysis necessary to support such planning; (iii) establish common planning
3050   assumptions and methodologies; (iv) facilitate cross-utility coordination; (v) require
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3051   consideration of non-pipeline alternatives in the planning, design, engineering, construction, and
3052   justification of gas infrastructure investments; (vi) align energy efficiency programs, gas system
3053   enhancement planning, line extension allowance policies, climate compliance plans, gas
3054   company obligations to serve, and other policies with integrated energy planning and plans; (vii)
3055   establish performance incentives or alternative earnings opportunities for utilities that achieve
3056   outcomes consistent with integrated energy planning objectives; (viii) authorize cost recovery for
3057   prudently incurred integrated energy planning activities; (ix) identify and take into account
3058   workforce transition issues; and (x) take such other actions as the department deems necessary.
3059  (c) Each gas company and distribution company shall work collaboratively to develop a
3060   common set of planning tools and data infrastructure for sharing data and information to
3061   facilitate the development and implementation of integrated energy planning and the review of
3062   plans by the department; provided, however, that such tools shall include criteria and processes
3063   by which the gas and distribution companies will integrate energy planning and related
3064   investments within and between companies; and provided further, that the department shall have
3065   full access to the planning tools and data infrastructure developed under this subsection.
3066  (d) The department of energy resources, in consultation with the office of energy
3067   transformation, may convene an integrated energy planning working group to produce findings
3068   and make recommendations on integrated energy planning and plan implementation. The
3069   working group shall facilitate integrated energy planning in the commonwealth with the
3070   objectives of reducing costs to ratepayers by avoiding construction of infrastructure that is
3071   unnecessary, avoidable, or at significant risk of being stranded; reducing greenhouse gas
3072   emissions in compliance with the limits and sublimits established in chapter 21N; and furthering
3073   the priorities of the department pursuant to section 1A of chapter 25. In carrying out its duties
  140 of 170
3074   under this section, the working group may review and comment on the objectives enumerated in
3075   subsection (b) and any activities the department undertakes to carry out its duties pursuant to
3076   such subsection. The working group shall report its findings and recommendations to the
3077   department, the gas and distribution companies and the joint committee on telecommunications,
3078   utilities and energy. The gas and distribution companies shall respond to, and the department
3079   shall consider, any such findings and recommendations.
3080  (e) A gas company or distribution company may petition the department to recover
3081   prudently incurred costs associated with integrated energy planning activities. The department
3082   shall determine appropriate processes for the consideration of such petitions and may approve
3083   the recovery of costs prudently incurred in connection with developing, coordinating, overseeing
3084   and implementing integrated energy planning and plans.
3085  (f) Nothing in this section shall guarantee cost recovery or earnings opportunities. The
3086   department shall retain full authority to evaluate prudence and reasonableness.
3087  (g) The department may promulgate regulations to implement this section.
3088  Section 160. The department shall accept and review tariffs proposed by gas companies
3089   to enable renewable natural gas produced by anaerobic digesters or landfills to be delivered to
3090   individual commercial and industrial customers through a gas company’s distribution system
3091   under bilateral agreements between commercial and industrial customers and such facilities. The
3092   department shall approve such tariffs only upon a showing that all costs associated with the
3093   covered activities are recovered in tariffed rates and no costs are imposed on non-participating
3094   customers.
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3095  Section 161. No transmission company shall own or control transmission facilities
3096   located in the commonwealth unless such company participates in and transfers control of such
3097   facilities to ISO –New England.
3098  SECTION 89. The General Laws are hereby amended by inserting after chapter 164B the
3099   following chapter:-
3100  CHAPTER 164C.
3101  Supervision of Clean Thermal Energy Facilities
3102  Section 1. For the purposes of this chapter, the following words shall have the following
3103   meanings unless the context clearly requires otherwise:
3104  “Clean thermal energy”, as defined in section 3 of chapter 25A.
3105  “Department”, the department of public utilities.
3106  Section 2. To ensure public safety in the making, sale, distribution or transportation of
3107   clean thermal energy and in the construction, ownership or operation of related facilities,
3108   equipment and infrastructure, the department shall have supervision of clean thermal energy
3109   facilities and related equipment and infrastructure of any company, institution or organization
3110   that makes, sells or distributes such energy or constructs, owns or operates related infrastructure
3111   if such facilities and related infrastructure have a thermal capacity of greater than 1 megawatt.
3112   The department shall keep itself informed as to the methods, practices and conditions of all
3113   facilities and equipment associated with such energy and shall make examinations and
3114   investigations as necessary, including the adequacy of operation, maintenance and capital
3115   improvements to ensure their safe operation. After holding technical conferences and receiving
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3116   public input, the department may promulgate regulations to implement this chapter. The
3117   department may establish reasonable fees, which shall be retained by the department, to fund the
3118   department’s supervision of clean thermal energy safety.
3119  Section 3. Each entity constructing or operating a clean thermal energy facility or related
3120   infrastructure, except a gas company as defined in section 1 of chapter 164, shall, if applicable,
3121   file a certified copy of its certificate of incorporation and by-laws with the department. By March
3122   1 of each year the entity shall file a report on safety-related matters as the department may
3123   specify including, but not limited to, system accidents, service outages, number of leaks, causes
3124   of leaks, excavation damage and time elapsed between the incident and the return to service
3125   following a repair. The department may levy fines, not to exceed $25,000 per violation, against
3126   an entity for failure to comply with regulations promulgated by the department. In determining
3127   the appropriateness of any fine, the department shall consider the seriousness of the violation and
3128   the good faith compliance efforts of the entity. The department shall provide written notice to the
3129   attorney general of any violation of this chapter.
3130  Section 4. An entity operating a clean thermal energy system that is not a gas company
3131   shall be exempt from the requirements of this chapter if the entity files a detailed inspection and
3132   maintenance plan with the department every 2 years. A person or entity operating a clean thermal
3133   energy system that is being utilized for heating or cooling or that is otherwise supplying energy
3134   to: (i) less than 10 customers or users, if no portion of the system is located in a public place; or
3135   (ii) a single customer or user, if the system is located entirely on the customer’s or user’s
3136   premises notwithstanding that a portion of the system is located in a public place shall be exempt
3137   from this chapter. Nothing in this chapter shall be construed to alter the substantive jurisdictional
3138   authority of the department.
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3139  SECTION 90. Section 2 of chapter 165 of the General Laws, as appearing in the 2024
3140   Official Edition, is hereby amended by striking out, in line 4, the words:-“through eight-four”
3141   and inserting in place thereof the following words:- to 84, inclusive.
3142  SECTION 91. Chapter 465 of the acts of 1980 is hereby repealed.
3143  SECTION 92. Section 51 of chapter 209 of the acts of 2012 is hereby repealed.
3144  SECTION 93. Sections 11 and 11A of chapter 75 of the acts of 2016 are hereby repealed.
3145  SECTION 94. Chapter 239 of the acts of 2024 is hereby amended by striking section 110
3146   and inserting in place thereof the following section:-
3147  Section 110. The regulations required to be promulgated by the executive office of
3148   energy and environmental affairs or its designated agency under section 31 of chapter 21A of the
3149   General Laws and the regulations required to be promulgated by the division of standards in the
3150   office of consumer affairs and business regulation under section 59 of chapter 98 of the General
3151   Laws shall be completed not later than 7 months after the effective date of any initial regulation
3152   promulgated under the California Code of Regulations, Title 20, Division 2, Chapter 12, Article
3153   2 and shall apply to chargers installed on or after June 1, 2026.
3154  SECTION 95. (a) Notwithstanding any general or special law or regulation to the
3155   contrary, there shall be within the department of public utilities, but not subject to the control or
3156   authority of said department, a body known as the energy efficiency management review and
3157   financial oversight board. The board shall undertake an independent professional review of the
3158   organization, budget-setting process, spending controls and performance of building
3159   decarbonization, energy efficiency, load management and demand reduction programs
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3160   established pursuant to sections 19, 21 and 22 of chapter 25 of the General Laws. The board shall
3161   formulate and recommend a plan to stabilize and improve the programs’ finances, management,
3162   and operations, with special attention to ensure regional equity and effective access for small
3163   businesses and middle-income, moderate-income and low-income households.
3164  (b) The board shall consist of 5 members, each of whom shall be experienced in the
3165   effective and fiscally prudent management of mission-driven business organizations; 3 of whom
3166   shall be appointed by the governor, 1 of whom shall serve as chair; 1 of whom shall be appointed
3167   by the attorney general and 1 of whom shall be appointed by the inspector general. No member
3168   shall be a current officer, employee, or paid representative of a program administrator. Members
3169   shall serve without compensation but shall be reimbursed for reasonable expenses. A vacancy
3170   shall be filled in the manner of the original appointment. Three members shall constitute a
3171   quorum and an action of the board shall require the affirmative vote of a majority of the
3172   members present and voting. Members shall be considered special state employees for the
3173   purposes of chapter 268A of the General Laws.
3174  (c) Upon written request of the chair, the department of public utilities, the department of
3175   energy resources, the energy efficiency advisory council, and each program administrator shall
3176   furnish to the board data, records, contracts, cost information, and program documentation
3177   reasonably necessary to the board’s review, to the extent consistent with law. The board, as
3178   appropriate, shall work collaboratively with said departments and entities to stabilize and
3179   improve the programs’ finances, management and operations. The board shall be subject sections
3180   18 to 25, inclusive, of chapter 30A and chapter 66 of the General Laws; provided, however, that
3181   competitively sensitive or proprietary commercial or financial information furnished to the board
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3182   shall be exempt from disclosure and the board shall protect such information through redaction
3183   or aggregation in its public report.
3184  (d) The board shall hold public hearings in diverse areas of the commonwealth and
3185   receive testimony and written comments. The board shall review and make comments, findings
3186   and recommendations concerning: (i) the organizational structures through which energy
3187   efficiency programs and services are and should be delivered, governed, and administered,
3188   including but not limited to consideration of market-based organizational structures and the
3189   current and prospective roles of organizational leaders, the energy efficiency advisory council,
3190   the department of public utilities, the department of energy resources, program administrators,
3191   vendors, contractors and providers; (ii) the process by which the programs’ three-year plans,
3192   annual budgets and mid-term modifications are and should be developed, reviewed, and set,
3193   including the transparency, timeliness, rigor and objectivity of such process; (iii) the adequacy of
3194   spending controls, cost oversight, procurement practices, and financial management, including
3195   controls over administrative costs, performance incentives, and payments to vendors and
3196   contractors; (iv) the relationships between program spending, household, business and system
3197   benefits, and costs borne by ratepayers; (v) ratepayer bill impacts, opportunities to improve cost-
3198   effectiveness, affordability, and household, business and system benefits; (vi) opportunities to
3199   improve training and career and business development; (vii) methods for surveying and
3200   responding to customer dissatisfaction; and (viii) any other related matters the board considers
3201   relevant to the sound management and financial oversight of energy efficiency programs. The
3202   board shall annually publish a report of its activities, findings and recommendations and shall
3203   filed said report with the clerks of the senate and house of representatives and the chairs of the
3204   joint committee on telecommunications, utilities and energy.
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3205  SECTION 96. Section 95 is hereby repealed.
3206  SECTION 97. (a) For purposes of this section, the following words shall have the
3207   following meanings unless the context clearly requires otherwise:
3208  “Approval”, any permit, certificate, order, not including enforcement orders, license,
3209   easement, certification, determination, exemption, variance, waiver, building permit or other
3210   approval or determination of rights from any municipal, regional or state governmental entity
3211   including any agency, department, board, authority, commission or other instrumentality thereof,
3212   for a clean energy facility, issued, granted, constructively approved or otherwise made under
3213   chapter 21 of the General Laws, chapter 21A of the General Laws, except section 16, chapter
3214   21C of the General Laws, chapter 21D of the General Laws, chapter 21E of the General Laws,
3215   chapter 21H of the General Laws, sections 61 to 62L, inclusive, of chapter 30 of the General
3216   Laws, chapter 40 of the General Laws, chapters 40A to 40C, inclusive, of the General Laws,
3217   chapter 41 of the General Laws, chapter 43D of the General Laws, section 21 of chapter 81 of
3218   the General Laws, section 2 of chapter 85 of the General Laws, chapter 91 of the General Laws,
3219   chapter 111 of the General Laws, chapter 131 of the General Laws, chapter 131A of the General
3220   Laws, chapter 164 of the General Laws, chapter 716 of the acts of 1989, chapter 831 of the acts
3221   of 1977 or any other state, regional or local law, regulation, by-law or ordinance.
3222  (b) Notwithstanding any general or special law to the contrary, any approval in effect or
3223   existence from January 1, 2025 to January 1, 2029, inclusive, for a facility that meets the
3224   definition of a “large clean transmission and distribution infrastructure facility” under section
3225   69G of chapter 164 of the General Laws or any offshore wind energy facility or portion thereof
3226   that has received any approvals under subsection (a), shall be extended for the longer of: (i) a
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3227   period of 4 years in addition to the lawful term of the approval; or (ii) a period of 4 years in
3228   addition to any extensions of such approvals, including any extensions set forth in any general or
3229   special law including, but not limited to, section 280 of chapter 238 of the acts of 2024.
3230  (c) This section shall not apply to deadlines: (i) explicitly adopted as part of an order of
3231   the department of public utilities issued in an adjudicatory proceeding, other than deadlines in an
3232   order approving construction of a facility or amending or modifying an approval to construct a
3233   facility; or (ii) included in contracts between private parties approved by the department of
3234   public utilities including, but not limited to, long-term contracts approved by the department of
3235   public utilities pursuant to sections 83C, 83D and 83E of chapter 169 of the acts of 2008.
3236  SECTION 98. (a) Notwithstanding any special or general law to the contrary, the bid
3237   awardee, the department of energy resources and the electric distribution companies may each
3238   request an upward or downward price adjustment for any bid submitted under or any contract
3239   awarded pursuant to section 83C of chapter 169 of the acts of 2008 in connection with the
3240   August 30, 2023 request for proposals. Such requests shall be subject to review and approval by
3241   the department of public utilities and shall protect ratepayers and allow projects to be financed,
3242   begin construction and complete construction. Price adjustments may be requested only to
3243   account for: (i) substantial and unforeseeable changes in law occurring after the bid submission
3244   and prior to the time that the project achieves its commercial operation date; or (ii) substantial
3245   and unforeseeable changes in costs that are beyond the reasonable control of the requesting
3246   party. The section 83C bid evaluation team shall require the requesting party to provide
3247   documentation supporting any proposed price adjustments including, but not limited to,
3248   documentation identifying how the assumptions pertaining to capital costs, financing costs,
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3249   inflation rates, tax benefits, energy production profiles and similar information on which the bid
3250   is based.
3251  (b) As part of its consideration of the merits of any price adjustment requested pursuant
3252   to subsection (a), the department of public utilities shall first determine, based on the information
3253   provided in this subsection, whether the request has been submitted to account only for: (i)
3254   substantial and unforeseeable changes in law occurring after the bid submission and prior to the
3255   time that the project achieves its commercial operation date; or (ii) substantial and unforeseeable
3256   changes in costs that are beyond the reasonable control of the requesting party. The department
3257   of public utilities may, in consultation with the office of the attorney general, approve an upward
3258   or downward price adjustment only upon a finding that the requested adjustment is in the best
3259   interest of the ratepayers, consistent with the limits and sublimits established pursuant to chapter
3260   21N of the General Laws and reflective only of costs and impacts beyond the reasonable control
3261   of the requesting party.
3262  SECTION 99. Electric distribution companies shall coordinate with the department of
3263   energy resources to develop a common application for developers of distributed generation
3264   facilities and energy storage systems applying for interconnection, net metering or any solar
3265   incentive program established by the department of energy resources pursuant to section 24 of
3266   chapter 25A of the General Laws. The common application shall be designed to minimize the
3267   administrative burden placed on applicants and reduce administrative costs. The electric
3268   distribution companies and department of energy resources shall jointly file a proposal for the
3269   design of a common application with the department of public utilities within 9 months after the
3270   effective date of this section and the department of public utilities shall complete its review of
3271   the joint proposal within 3 months after its receipt thereof. The application shall be made
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3272   available for distributed generation facilities and energy storage systems not later than 24 months
3273   after the effective date of this section.
3274  SECTION 100. (a) Not later than 120 days after the effective date of this section, the
3275   department of public utilities shall open an investigation relative to: (i) the regulatory steps
3276   necessary to implement section 158 of chapter 164 of the General Laws; (ii) existing
3277   administrative or regulatory barriers to the deployment of government or critical facility
3278   microgrids and potential ways to lower such barriers; and (iii) ways to protect customers not
3279   connected to such microgrids including, but not limited to, ensuring that: (A) costs for the
3280   development and connection of such microgrids are not shifted to the electric distribution
3281   system; (B) the electric distribution system remains reliable once a given microgrid is connected
3282   and operational; and (C) customers other than those eligible to be served by a given microgrid
3283   are not served by such microgrid; provided, however, that steps to exclude such customers shall
3284   not impose excessive additional costs.
3285  (b) Not later than 6 months after the effective date of this section, the department shall:
3286   (i) issue guidelines for standards, protocols and technical requirements necessary to enable the
3287   development and interconnection of government or critical facility microgrids; provided,
3288   however, that such guidelines shall address any identified administrative and regulatory barriers
3289   and provide for impact studies required for government or critical facility microgrids to connect
3290   to the electric distribution system; (ii) develop government or critical facility microgrid service
3291   standards that delineate an obligation by distribution companies to provide electric service to
3292   customers on the microgrid; (iii) require the distribution companies as defined in section 1 of
3293   chapter 164 of the General Laws to file a proposed model tariff provision under which
3294   government or critical facility microgrids may take service; provided, however, that such
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3295   proposed model tariff provision: (A) shall protect customers not connected to such microgrids
3296   from cost shifting; (B) may charge microgrid customers for such services as back up or standby
3297   service; (C) shall not compensate microgrid customers for the use of fossil fuel electricity
3298   generation; (D) may provide additional direction for each distribution company to follow in
3299   filing the model government or critical facility microgrid tariffs; and (iv) provide direction to
3300   each distribution company regarding any additional filings or administrative changes necessary
3301   to promote the deployment of government or critical facility microgrids.
3302  (c) Not later than 9 months after the effective date of this section, the distribution
3303   companies shall file the model government or critical facility microgrid tariffs and any other
3304   filings directed by the department pursuant to subsection (b).
3305  (d) Not later than 1 year after the effective date of this section, the department shall
3306   approve, reject or modify the government or critical facility microgrid tariffs and other filings
3307   made by the distribution companies at the direction of the department. The tariffs and other
3308   filings shall be deemed approved if the department does not issue an order within such 1-year
3309   period.
3310  (e) The approved government and critical facility microgrid tariffs and all administrative
3311   changes directed by the department pursuant to subsection (b) shall take effect not later than 14
3312   months after the effective date of this section.
3313  SECTION 101. (a) Not later than 3 months after the effective date of this act, the
3314   department of public utilities shall issue guidance to the electric distribution companies as
3315   necessary regarding establishment of the flexible interconnection program authorized by section
3316   157 of chapter 164 of the General Laws.
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3317  (b)(1) Not later than 1 month after receipt of such guidance, the distribution companies
3318   shall jointly convene a distributed energy resource industry working group facilitated by 1
3319   individual from such industry and 1 individual from an electric distribution company. The
3320   working group shall include: (i) 2 representatives from each electric distribution company; (ii) at
3321   least representatives each from the department of energy resources and the office of the attorney
3322   general; and (iii) 6 representatives from the distributed energy resource industry. The working
3323   group shall meet not less than 2 times a month starting 1 month after the effective date of this
3324   act.
3325  (2) Not later than 3 months after receipt of such guidance, the electric distribution
3326   companies shall present draft versions to the working group of the documents to be included in
3327   the filing of proposed model tariff provisions or tariff revisions to implement such flexible
3328   interconnection program, accept written and oral comments, allow stakeholders to propose
3329   modifications and develop consensus language to the extent possible. The distribution companies
3330   shall include any alternative proposals supported by a majority of working group members as a
3331   supplement to such filing and an explanation of why the distribution company opted to not adopt
3332   such proposals.
3333  (3) Not later than 4 months after receipt of such guidance, the electric distribution
3334   companies shall present draft versions of the documents to be included in the filing of proposed
3335   model tariff provisions or tariff revisions, any consensus language developed by the working
3336   group and any alternative proposals supported by a majority of working group members and an
3337   explanation of why the distribution company opted not to adopt such alternative proposals, to the
3338   working group on sustainable economic development zones established in section 114. The
3339   distribution companies shall accept written and oral comments and allow members of such
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3340   working group to propose modifications. The distribution companies shall include those
3341   comments and proposed modifications with the filing required under subsection (c).
3342  (c) Not later than 6 months after receipt of such guidance, the distribution companies
3343   shall file with the department the proposed model tariff provisions or tariff revisions and any
3344   other documents necessary to implement such flexible interconnection program, including any
3345   comments, alternative proposals and company explanations produced pursuant to subsection (b).
3346  (d) Upon receipt of the filing required under subsection (c), the department shall conduct
3347   a proceeding to investigate the flexible interconnection program proposal and approve, deny or
3348   modify such proposal within 1 year after the effective date of this act or within 6 months after
3349   receipt of the filing required under said subsection (c), whichever last occurs. A flexible
3350   interconnection program proposal filed pursuant to said subsection (c) shall be deemed approved
3351   if the department does not issue an order on or before such later date.
3352  SECTION 102. (a) Notwithstanding any general or special law to the contrary, electric
3353   distribution companies shall develop inclusive utility investment program proposals designed to
3354   permit customers to finance the construction of energy projects through an optional tariff payable
3355   directly through their electric bills and shall submit such proposals to the department of public
3356   utilities for approval in accordance with this section.
3357  (b) For the purposes of this section, “energy project” shall mean nonfossil, fuel-related
3358   energy efficiency upgrades, high-efficiency electric heat pumps, energy storage systems, demand
3359   response equipment and on-site solar energy generation equipment, hot water tank insulation,
3360   electric vehicle chargers or heat pumps, or any combination thereof, inclusive of ancillary
3361   equipment or upgrades necessary to complete the installation of the equipment or upgrades.
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3362  (c) Programs developed by the electric distribution companies under this section shall
3363   enable the distribution companies to offer to make investments in energy projects to customer
3364   properties with low-cost capital and use an opt-in tariff to recover the costs from customers that
3365   participate. Programs shall be designed to provide customers with immediate and ongoing
3366   electric bill savings relative to baseline electric bill costs if they choose to participate. Programs
3367   shall allow residential electric customers that own the property, and renters that have permission
3368   of the property owner, to agree to the installation of an energy project. Programs shall ensure
3369   that: (i) eligible projects do not require upfront payments; provided, however, that customers
3370   may pay down the costs for projects with a payment to the installing contractor in order to
3371   qualify projects that cannot be justified through the available energy cost savings; (ii)
3372   participants agree that the distribution company can recover its costs for the projects at their
3373   location by paying for the project through an optional tariff directly through the participant’s
3374   electricity bill, allowing participants to benefit from installation of energy projects without
3375   traditional loans; (iii) the program is accessible to moderate- and low-income residents; and (iv)
3376   all other available financial incentives are maximized by participants to the greatest extent
3377   possible.
3378  (d) In developing inclusive utility investment program proposals, the electric distribution
3379   companies shall review existing models and programs in other jurisdictions including, but not
3380   limited to, the Pay As You Save system developed by the Energy Efficiency Institute.
3381   Distribution companies shall integrate programs undertaken pursuant to this section with the 3-
3382   year energy efficiency plans established pursuant to section 21 of chapter 25 of the General Laws
3383   and shall actively coordinate with those plans.
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3384  (e) The electric distribution companies shall propose conditions under which they will
3385   secure capital to fund the energy projects. The department of public utilities may allow
3386   distribution companies to raise capital independently or work with third-party lenders to secure
3387   the capital for participants, or a combination thereof. Any process the department approves shall
3388   use a market mechanism to identify the least costly sources of capital funds so as to pass on
3389   maximum savings to participants.
3390  (f) The electric distribution companies shall propose customer protection standards
3391   which shall be informed by and designed consistent with best practices developed in other
3392   jurisdictions to date.
3393  (g) In approving electric distribution company program proposals, the department of
3394   public utilities shall establish conditions by which distribution companies may connect program
3395   participants to energy project vendors. In setting conditions for connection, the department may
3396   prioritize vendors that have a history of good relations with the commonwealth, including
3397   vendors that have hired participants from commonwealth-created job training programs.
3398  (h) Program designs shall ensure that conservative estimates of financial savings will
3399   immediately and significantly exceed program costs for program participants. The department of
3400   public utilities may establish minimum financial savings-to-costs targets.
3401  (i) Distribution companies shall consult with the department of energy resources, the
3402   Massachusetts clean energy technology center and the attorney general in developing program
3403   proposals under this section and shall release draft program design proposals for public comment
3404   at least 60 days before submitting the report to the department of public utilities for approval.
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3405  (j) The department of public utilities shall establish program design parameters or
3406   guidelines not later than October 1, 2027.
3407  (k) Electric distribution companies shall submit inclusive utility investment program
3408   proposals to the department or public utilities for its review not later than February 1, 2028 and
3409   the department shall complete its review of those proposals not later than November 1, 2028.
3410  (l) Any program proposal approved by the department of public utilities pursuant to this
3411   section shall be made available to eligible customers of the distribution company not later than
3412   April 1, 2029.
3413  (m) A distribution company shall recover all prudently incurred costs of offering a
3414   program approved by the department of public utilities via base distribution rates. The
3415   department may approve the establishment of performance incentives designed to meet
3416   department approved thresholds for the number and types of customers served or the number and
3417   types of energy projects deployed.
3418  SECTION 103. (a) Notwithstanding any general or special law to the contrary, program
3419   administrators of the approved energy efficiency investment plan, authorized pursuant to section
3420   21 of chapter 25 of the General Laws, shall require household income verification for all eligible
3421   customers and renters in designated equity communities, as designated pursuant to the 2025 to
3422   2027, inclusive, 3-year plan to qualify for comprehensive moderate-income rebates and
3423   incentive. Household income verification shall not be required for low-income eligible customers
3424   and renters and incentives shall remain accessible to residents in affordable housing.
3425  (b) To qualify for comprehensive moderate-income rebates and incentives under
3426   subsection (a), the owner of a rental property located in a designated equity community shall
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3427   provide sufficient documentation to the program administrators demonstrating that not less than
3428   50 per cent of the occupied dwelling units in the property are rented to households that meet the
3429   applicable income eligibility requirements.
3430  SECTION 104. (a) Not later than 3 months after the effective date of this section, the
3431   department of public utilities shall open a proceeding to consider whether to require electric
3432   distribution companies to accept certain noncash alternatives or financial securities in lieu of
3433   cash to cover common system modification costs under an interconnection service agreement.
3434   Such noncash alternatives or financial securities may include, but shall not be limited to, surety
3435   bonds and letters of credit, including standby letters of credit.
3436  (b) In conducting such proceeding, the department shall: (i) solicit input from such
3437   electric distribution companies, developers of distributed energy resources, consumer advocates
3438   and other stakeholders as it deems necessary; (ii) review laws, regulations and proceedings in
3439   other states including, but not limited to, New York state PUC Case 24-E-0414, pertaining to the
3440   acceptance or nonacceptance of noncash alternatives or financial securities in lieu of cash for
3441   common system modification payments required under interconnection agreements; and (iii)
3442   balance the public interest in reducing project development costs and promoting the growth of
3443   distributed energy resources against the public interest in avoiding increased risks to electric
3444   distribution companies and ratepayers.
3445  (c) Not later than 9 months after the effective date of this section, the department shall
3446   issue a final order that either: (i) directs electric distribution companies to accept noncash
3447   alternatives or financial securities consistent with the purposes and criteria set forth in this
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3448   section; or (ii) makes written findings as to why such alternatives and securities should not be
3449   accepted.
3450  (d) The department may promulgate rules and regulations to implement this section.
3451  SECTION 105. The secretary of energy and environmental affairs shall convene a
3452   stakeholder working group to develop recommendations for legislative and regulatory changes
3453   that may be useful to enable any agency, executive office, department, board, commission,
3454   bureau, division or authority of the commonwealth or any political subdivision thereof including,
3455   but not limited to, local and regional bodies, authorities and commissions to own, install, operate
3456   or bill for systems of clean thermal energy as defined in section 3 of chapter 25A of the General
3457   Laws that promote affordability, reliability, public health, public safety and equity, while also
3458   satisfying the requirements of chapters 21N of the General Laws with respect to greenhouse gas
3459   emissions limits and sublimits and said chapter 25A with respect to the development of clean
3460   thermal energy.
3461  The working group shall be convened not later than 30 days after the effective date of this
3462   act and shall include: the secretary of energy and environmental affairs or a designee; the
3463   attorney general or a designee; the commissioner of energy resources or a designee; the chair of
3464   the department of public utilities or a designee; the commissioner of environmental protection or
3465   a designee; the chairs of the joint committee on telecommunications, utilities and energy or their
3466   designees; the commissioner of the Massachusetts Water Resources Authority or a designee; and
3467   12 members to be appointed by the secretary of energy and environmental affairs, 1 of whom
3468   shall be an advocate for low-income residents of the commonwealth, 1 of whom shall be an
3469   advocate for middle-income residents of the commonwealth, 2 of whom shall be representatives
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3470   of municipalities or groups of municipalities, of whom 1 shall be a representative of municipal
3471   light plants, 1 of whom shall be a regional planning agency, 1 shall be a representative of a labor
3472   union representing water distribution workers, 2 shall be representatives of nonprofit or for profit
3473   organizations with expertise in energy markets, 1 shall be a representative of a nonprofit
3474   organization with expertise in the transition to clean thermal energy, 1 shall be a representative
3475   of a nonprofit environmental organization and 1 shall be a representative of a district energy
3476   company.
3477  The working group shall consider: (i) enabling legislation, regulation and best practices
3478   with respect to governance and finance; (ii) facility and project ownership, operation and
3479   partnerships; (iii) land access and rights of way; (iv) protection of environmental values and
3480   clean energy thermal sources, including the definition, protection and development of thermal
3481   commons of the commonwealth; (v) liability, safety and labor standards; and (vi) other
3482   opportunity costs and benefits. The working group shall evaluate opportunities to advance
3483   neighborhood-scale clean thermal energy installations to promote affordability, reliability, public
3484   health, public safety, equity and reductions in greenhouse gas emissions.
3485  The working group shall submit its report to the executive office of energy and
3486   environmental affairs, the department of energy resources, the house and senate committees on
3487   ways and means committees, the joint committee on telecommunications, utilities and energy,
3488   the senate and house committees on global warming and climate change and the clerks of the
3489   senate and house of representatives not later than September 30, 2027.
3490  SECTION 106. The department of public utilities shall investigate and review best
3491   practices for setting allowed rates of return on common equity for electric and local distribution
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3492   companies; provided, however, that the department shall ensure that rates of return on common
3493   equity preserve an electric or gas company’s financial integrity and allow the company to attract
3494   capital on reasonable terms and support returns on investments comparable to returns on
3495   investments of similar risk and shall consider whether and how departmental practice may: (i)
3496   have allowed rates of return that are higher than necessary; (ii) have led to overinvestment in
3497   infrastructure; (iii) be modified to employ a wider range of proxy groups and a wider range of
3498   inputs to model or estimate the potential rates of return for the purpose of reducing the gap
3499   between allowed rates of return and the cost of equity; (iv) be modified to facilitate comparisons
3500   with independent third-party return forecasts and financial benchmarks, including, but not
3501   limited to, United States Department of the Treasury bond yields of appropriate maturity and
3502   capital market assumptions published by reputable financial institutions and investment analysts;
3503   (v) be modified to include other regulatory mechanisms, including, but not limited to,
3504   performance-based mechanisms; and (vi) otherwise mitigate ratepayer impacts by more closely
3505   aligning the return on equity with the cost of capital.
3506  The department shall complete the investigation required under this section and shall
3507   submit a report and any draft legislation to the joint committee on telecommunications, utilities
3508   and energy, the senate and house committees on ways and means and the clerks of the senate and
3509   the house of representatives not later than October 1, 2027.
3510  SECTION 107. (a) Notwithstanding any general or special law to the contrary, not later
3511   than January 1, 2027, the department of public utilities shall commence a proceeding to identify
3512   and review each reconciliation charge that has been established for electric and gas distribution
3513   companies. The department shall evaluate whether charges can be eliminated or revised with the
3514   objectives of reducing ratepayers’ bills, particularly during peak usage months, and promoting
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3515   ratepayer adoption of electric vehicles and efficient electric heating to reduce statewide and
3516   sector-based greenhouse gases in compliance with the limits and sublimits set in chapter 21N of
3517   the General Laws. The department’s investigation shall include, but not be limited to, an
3518   examination of whether and how the objectives can be achieved by implementation of each of
3519   the following: (i) converting volumetric reconciling charges to nonbypassable fixed charges; (ii)
3520   seasonally adjusting volumetric reconciling charges to reduce rates during peak usage months; or
3521   (iii) shifting cost recovery for volumetric reconciling charges into base distribution rates. The
3522   department shall issue an order directing electric and gas distribution companies to make
3523   necessary changes to their rates to achieve these objectives not later than July 1, 2027.
3524  (b)(1) Notwithstanding any general or special law to the contrary, on or before January 1,
3525   2027, the department of public utilities shall commence a proceeding to investigate the
3526   establishment of maximum thresholds for the amount charges assessed to customers may change
3527   from one month to another for each electric and gas distribution company.
3528  (2) The department may establish thresholds for changes over multiple months and
3529   different thresholds for different companies based on a company’s size or ability to implement
3530   the mechanisms. The department shall issue an order establishing such thresholds not later than
3531   July 1, 2027.
3532  (3) In such order, the department shall require each gas and electric company to file a
3533   plan to avoid exceeding such thresholds. Such plans shall include proactive measures to avoid
3534   the occurrence of price volatility including, but not limited to, long-term contracting, and
3535   measures that shall be proposed or considered by each gas and electric company if a change in
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3536   reconciliation or supply charge filed with the department would exceed the established
3537   thresholds including, but not limited to, the short-term deferral of a portion of a rate increase.
3538  (4) The department shall approve, amend or deny the plans submitted pursuant to
3539   paragraph (3) based on a determination that the plan is in the best interests of ratepayers and the
3540   public interest. The department shall approve, amend or deny such plans not later than July 1,
3541   2027, which approval, amendment or denial shall take immediate effect.
3542  SECTION 108. Notwithstanding any general or special law to the contrary, not later than
3543   December 1, 2026, the department of public utilities shall commence a proceeding to investigate
3544   default service supply procurement and attendant costs to rate payers. Such investigation shall
3545   consider whether procurement practices for providing default service pursuant to section 1B of
3546   chapter 164 of the General Laws best serve the purposes of improving the competitiveness of
3547   procurements and constraining the retail premium realized by suppliers in the form of profit
3548   margins, credit costs, transaction costs, risk hedging and other factors. Such investigation shall
3549   consider whether: (i) all-requirements contracting provides the best value for consumers or
3550   whether ratepayer interests would be better served by more frequent use of procurements that
3551   vary in length, are undertaken in combination with other distribution companies, utilize block
3552   contracting or involve greater reliance on spot energy market purchases; (ii) distribution
3553   companies should have more flexibility to engage in, and should engage more often in,
3554   procurement self-supply; (iii) distribution companies should change their practices with respect
3555   to reconciling costs; (iv) distribution companies should use auctions and other alternatives to
3556   conventional competitive bidding; (v) procurement strategies should change in response to
3557   customer migrations from basic service to municipal aggregation; (vi) caps on supplier retail
3558   premiums and directives to distribution companies to refund supply charges deemed excessive
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3559   are within the department’s discretion; (vii) the period allotted for review of basic service supply
3560   procurements should be expanded and, if so, whether such an expansion requires legislation or
3561   can be undertaken by the department under its current authority; (viii) independent third parties
3562   should be established and tasked with procuring basic service supplies on behalf of distribution
3563   companies; and (ix) other changes in laws, regulations or distribution company practices would
3564   better serve the interests of ratepayers.
3565  SECTION 109. Notwithstanding chapter 30A of the General Laws, the executive office
3566   of economic development shall promulgate emergency regulations pursuant to subsection (l) of
3567   section 70 of chapter 23A of the General Laws and shall amend any existing regulations
3568   implementing paragraph (zz) of section 6 of chapter 64H of the General Laws not later than 60
3569   days after the effective date of this act. Such emergency regulations shall take effect immediately
3570   upon filing in accordance with said chapter 30A and shall remain in effect until superseded by
3571   final regulations.
3572  SECTION 110. Not later than 1 year after the effective date of this act, each electric
3573   company shall submit a supplement to the electric-sector modernization plan approved by the
3574   department of public utilities. The supplement shall provide updated forecasts and assessments
3575   of electric demand and supply as the department may require and shall otherwise be limited to
3576   complying with any new requirements imposed by section 92B of chapter 164 of the General
3577   Laws. The department shall determine its requirements for such updated forecasts and
3578   assessments within 90 days after the effective date of this act. An electric company shall consult
3579   with the Grid Modernization Advisory Council established in section 92C of said chapter 164 not
3580   later than 120 days before the electric company files the supplement with the department. The
3581   Grid Modernization Advisory Council shall return the supplement to the company with
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3582   recommendations not later than 70 days before the company files the supplement with the
3583   department.
3584  SECTION 111. (a) The secretary of energy and environmental affairs, in consultation
3585   with the executive office of economic development and the executive office of housing and
3586   livable communities, shall establish a program to provide additional support to communities that
3587   host large clean energy infrastructure facilities, as defined in section 69G of chapter 164 of the
3588   General Laws, that support the deployment of offshore wind, solar, battery storage and
3589   geothermal, in accordance with the emissions reduction goals established by chapter 21N of the
3590   General Laws, which may include giving qualifying host communities priority consideration to
3591   applications submitted to programs managed through the Community One Stop for Growth and
3592   state programs including, but not limited to, the Seaport Economic Council and any other state
3593   grant program identified by the secretary; provided, however, that the terms of the programs
3594   shall be consistent with regulations promulgated by the energy facilities siting board. Qualifying
3595   communities shall also be eligible for program benefits established in section 10 of chapter 25A
3596   of the General Laws.
3597  (b) The secretary shall adopt rules and guidelines and promulgate regulations for the
3598   administration of this section, including, but not limited to, establishing criteria for qualifying
3599   large clean energy infrastructure facilities and information for communities on program benefits.
3600  SECTION 112. Not later than 6 months after the effective date of section 82, the board of
3601   building regulations and standards shall determine whether changes to the building code are
3602   required to permit the use of plug-in battery systems or plug-in photovoltaic systems. If the board
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3603   determines that changes to the building code are required, the board shall consider such changes
3604   within 6 months of the date of such determination.
3605  SECTION 113. (a) Notwithstanding any general or special law to the contrary, there shall
3606   be a working group on residential solar consumer protection for the purposes of producing a
3607   comprehensive written assessment of, and proposing legislative, regulatory and industry changes
3608   regarding, the issues and challenges present or projected to arise between residential solar
3609   customers and potential customers and solar system manufacturers, wholesalers, retailers,
3610   lenders and installers. The working group shall aim to facilitate affordable solar system adoption
3611   and improve system performance, customer satisfaction and consumer protection over the entire
3612   lifecycle of residential solar system products and contracts.
3613  (b) The working group shall be convened not later than 45 days after the effective date of
3614   this act and shall consist of: the attorney general or a designee, who shall serve as co-chair; the
3615   chair of the department of public utilities or a designee, who shall serve as co-chair; the
3616   undersecretary of the office of consumer affairs and business regulation or a designee; 1 person
3617   to be appointed by the president of the senate; 1 person to be appointed by the speaker of the
3618   house of representatives; and 8 persons to be appointed by the governor, 3 of whom shall be
3619   selected from a list of persons submitted by each of the following organizations: (i) the National
3620   Consumer Law Center, Inc.; (ii) the Green Energy Consumers Alliance, Inc.; and (iii) the League
3621   of Women Voters of Massachusetts; 3 of whom shall be shall be selected from a list of persons
3622   submitted by each of the following organizations: (A) the Solar Energy Industries Association;
3623   (B) the Solar Energy Business Association of New England, Inc. and (C) Vote Solar, Inc.; and 2
3624   persons with expertise in relevant aspects of law and finance. A vacancy on the working group
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3625   shall be filled in the same manner in which the original appointment was made. Members of the
3626   working group shall receive no compensation for their services.
3627  (c) The working group may request from all industry, nonprofit, academic and
3628   government sources such information and assistance as it may require. Its responsibilities shall
3629   include, but not be limited to, (i) canvassing all public, nonprofit and for-profit sources to
3630   compile and publish, within 12 months after the effective date of this section, a comprehensive
3631   inventory, in both technical terms and in plain English, of significant product and service
3632   shortcomings it determines to exist in marketing and sales, financing, contracting, installation,
3633   system monitoring, maintenance, repair, replacement and upgrades over the entire lifecycle of
3634   systems and contracts, central office operations and software, and disclosures, notifications and
3635   communications to customers; (ii) assessing the sufficiency of information, data and reporting
3636   regarding such shortcomings and methods to improve such information, data and reporting,
3637   consistent with privacy safeguards; (iii) providing a comparative analysis in plain English of the
3638   legal and financial benefits and costs, long term and short term, to consumers and companies of
3639   accessing and delivering residential solar by means of direct consumer ownership, power
3640   purchase agreement, leasing and community solar; (iv) evaluating, for financial value,
3641   transparency, and enforceability, the production and performance guarantees given by companies
3642   in residential solar contracts; (v) evaluating the feasibility and desirability of requiring
3643   compensation, credits or offsets in the event of system outages and failures; (vi) analyzing the
3644   effect of supply chain issues on the timeliness, quality and cost of installations, maintenance,
3645   repairs, replacements and upgrades; (vii) assessing the effectiveness and sufficiency of remedies
3646   available to consumers in the event of product and service shortcomings; (viii) evaluating the
3647   effects of the elimination of federal solar tax credits on the solar market in the commonwealth
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3648   and providing an analysis of actions to mitigate negative impacts associated with the expiration
3649   or reduction of federal solar tax incentives; and (ix) assessing the potential operational, financial
3650   and legal implications for consumers of virtual power plant operations that include the
3651   consumers’ residential solar systems.
3652  (d) The working group shall meet at regular intervals and conduct not fewer than three
3653   public hearings in conveniently accessible locations throughout the commonwealth. The
3654   department of energy resources shall provide administrative support for the operations of the
3655   working group. The working group shall convene its first meeting not later than February 1,
3656   2027, and shall submit a report, along with any recommendations for legislative and regulatory
3657   action at the state, regional and federal level, not later than January 31, 2028, to the governor, the
3658   clerks of the senate and the house of representatives, and the chairs of the joint committee on
3659   telecommunications, utilities and energy.
3660  SECTION 114. (a) The secretary of environmental affairs or a designee and the secretary
3661   of economic development or a designee shall convene and co-chair a working group on
3662   sustainable economic development zones which working group shall consist of the secretary of
3663   housing and livable communities or a designee, the chief executive officer of the Massachusetts
3664   Housing Finance Agency or a designee, the chief executive officer of the Massachusetts
3665   Development Finance Agency or a designee, the commissioner of energy resources or a
3666   designee, the chief executive officer of the Massachusetts clean energy technology center or a
3667   designee, the chair of the intergovernmental coordinating council established in section 81 of
3668   chapter 179 of the acts of 2022 or a designee, the attorney general or a designee and
3669   representatives of municipalities, business, utilities, low- and moderate-income populations,
3670   affordable housing developers, home builders, life sciences and laboratory developers and
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3671   operators, technology developers and operators, data center developers and operators, other
3672   commercial building owners and developers, environmental and land use organizations, labor,
3673   consumers, equity organizations and clean energy developers and providers to develop long-term
3674   solutions that align with the clean energy policies of chapter 21N of the General Laws to address
3675   delays in connecting new electric customers to the electric grid for the purposes of economic
3676   development and housing and develop recommendations for use by either the general court or
3677   the department of public utilities to accelerate these connections in identified areas to achieve the
3678   objectives and goals established by said chapter 21N, chapter 358 of the acts of 2020 and
3679   chapters 150 of the acts of 2024 and chapter 239 of the acts of 2024. The working group shall
3680   convene not later than 60 days after the effective date of this act.
3681  (b) The working group shall, at a minimum, identify: (i) the electric and thermal
3682   infrastructure needs of various economic development segments and housing development types
3683   in identified zones or areas; (ii) barriers to the rapid development of electric and thermal
3684   infrastructure necessary to support the development of the identified economic development
3685   segments and housing development types in clause (i); (iii) options to enable the anticipatory and
3686   accelerated build-out of electric and thermal infrastructure which shall align with achievement of
3687   the limits and sublimits on greenhouse gas emissions set pursuant to chapter 21N of the General
3688   Laws and the 2023 State Hazard Mitigation and Climate Adaptation Plan in identified areas; (iv)
3689   options to enable and finance the construction of clean thermal energy networks and on-site
3690   clean energy, including solar and storage for resilience, that support the needs of the local
3691   electric grid; (v) options for special tariffs or special contracts offered by electric or gas
3692   companies as defined in section 1 of chapter 164 of the General Laws to encourage economic
3693   development, support electric and clean thermal energy infrastructure build-out and connect to
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3694   on-site clean energy sources; (vi) options to ensure that costs incurred to support anticipated
3695   electrical and thermal needs in an identified area for economic development segments and
3696   housing development types in said clause (i) are not shifted to other customers; (vii) options that
3697   do not support or finance natural gas or other fossil infrastructure; (viii) recommendations that
3698   support and inform existing economic development and site prioritization programs including,
3699   but not limited, to priority designated sites and ReadyMass 100 properties; and (ix)
3700   recommendations to the general court and the department of public utilities, as appropriate, for
3701   changes to laws, regulations, department orders or current practices of government agencies and
3702   the electric or gas companies to accelerate the build-out of necessary electric and clean thermal
3703   energy infrastructure and support the anticipated electrical and thermal needs of the identified
3704   economic development segments and housing development types in said clause (i), including,
3705   but not limited to, financing and cost recovery mechanisms to minimize costs or reduce rates
3706   charged.
3707  (c) The working group shall submit recommendations to the senate and house committees
3708   on ways and means, the joint committee on telecommunications, utilities and energy, the joint
3709   committee on economic development and emerging technologies and the department of public
3710   utilities not later than 10 months after the effective date of this act. The department of public
3711   utilities shall act on the recommendations not later than 210 days after receipt thereof and
3712   provide an update to the general court on its actions and findings within 240 days after receipt
3713   thereof.
3714  SECTION 115. Sections 9 to 16, inclusive shall take effect on January 1, 2028.
3715  SECTION 116. Section 96 shall take effect on December 31, 2030.
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3716  SECTION 117. Section 17 shall take effect on January 1, 2040.
3717  SECTION 118. The department shall fully implement a commonwealth smart solar
3718   permitting platform pursuant to section 26 of chapter 25A of the General Laws and make it
3719   available within 12 months after the effective date of this section.
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