Sweeping Energy Legislation Heads to Governor's Desk
 |
The Senate passed the legislation on Tuesday; the bill now goes to Gov. Deval Patrick for his signature.
"This legislation promotes the critical need for energy efficiency while expanding the development of alternative fuels, other emerging technologies and alternative methods of energy service," said state Sen. Benjamin B. Downing, D-Pittsfield, in a press release. "In addition to broadening our state's energy policy, this measure creates a long-term plan to reduce our dependence on fossil fuels and is critical to economic development and environmental stewardship."
The measure, called the Green Communities Act, was spearheaded by Speaker Salvatore DiMasi and was supported by Senate President Therese Murray, the governor and leading lawmakers on the energy committee.
In a statement praising the bill's passage, Environment Northeast, a non-profit research and policy organization addressing climate change, said it makes the state a national leader in energy policy.
"With this bill, Massachusetts has hitched its wagon to the energy efficiency express," said Daniel Sosland, executive director. "A move that will save consumers billions of dollars, combat the climate crisis, and grow a clean, green energy economy."
One of the bill's key provisions is a requirement for the state's electric and gas utilities to invest first in energy efficiency before turning to more costly power plant generation. This provision will greatly expand state energy efficiency programs, allowing more homeowners and businesses to take advantage of incentives for lighting upgrades, additional insulation and more efficient appliances and equipment, reducing their bills in a time of ever rising prices.
Specifically for cities and towns, the legislation directs the Department of Energy Resources' new Division of Green Communities to establish a green communities program. This will give municipalities the opportunity to take advantage of loans and grants provided by the state to finance the cost of energy efficiency improvements and renewable and alternative energy projects.
By maximizing investments in efficiency, Massachusetts could save consumers billions of dollars over the next decade, while keeping those dollars in the local economy, helping businesses grow, and creating new jobs for workers on all rungs of the job ladder. The Division of Energy Resources estimates that every $125 million invested in efficiency programs yields $500 million in savings, creates 2,000 non-utility jobs, and generates hundreds of million of dollars in economic growth.
Massachusetts currently spends around $6 billion on conventional electric supply — about 40 times more than it spends on efficiency resources even though supply costs nearly four times as much, according to Environment Northeast. To help right this imbalance, the bill allocates at least 80 percent of auction revenues from the sale of emissions allowances under the Regional Greenhouse Gas Initiative to help fund increased investments in energy efficiency programs.
The Green Communities Act also:
- Directs the state to replace state-owned and operated vehicles with more fuel-efficient vehicles.
- Directs the secretary of energy and environmental Affairs to establish a program whereby homeowners or tenants can purchase renewable energy products for the home with no up-front payment, and pay them off monthly on their utility bill.
- Establishes a five-year pilot program, requiring distribution companies to enter into cost-effective renewable energy contracts, over 10 to 15 years.
- Codifies the Office of the Ratepayer Advocate under the attorney general to intervene in proceedings on behalf of Massachusetts ratepayers.
- Encourages net metering to promote on-site generation through financial incentives.
- Establishes a commission to examine the environmental and economic impact of instituting a green building plan for the state.
To download the legislation, go here.
