Legislature enacts energy reform bill
Thursday, June 26 2008
The House and Senate have approved and sent to the governor a ground-breaking energy reform bill, the Green Communities Act.
The bill’s intent is to increase energy efficiency, update the renewable energy portfolio standard, increase public oversight of utilities, increase service quality of power companies, assist low-income energy customers, and increase the use of renewable generation and energy efficiency products.
After several months of negotiations over differences in House and Senate versions of the bill, the Senate approved a compromise bill (S. 2768) Tuesday, and the House approved it today.
House and Senate leaders struck language that would have preempted Home Rule authority with respect to the siting of certain clean energy facilities. Instead, the bill would establish a study commission that may make recommendations on the siting of such facilities.
The bill would establish a Green Communities program. A city or town that qualifies as a “green community” would be eligible for grants and loans to advance energy efficiency activities. Such assistance would be capped at $10 million per year and would principally be derived from funds generated by cap and trade pollution control programs, a mandatory kilowatt-hour charge on consumer bills, and the Massachusetts Renewable Energy Trust Fund.
In order to qualify as a “green community,” a city or town would have to:
• Provide as-of-right siting for renewable or alternative energy facilities in self-designated areas
• Adopt a streamlined permitting process to site such facilities
• Establish an energy use baseline inventory for municipal buildings and vehicles and reduce the baseline by 20 percent over five years
• Purchase fuel-efficient vehicles when available and practicable
• Require new residential and commercial construction to minimize, to the extent feasible, the life-cycle cost of the facility through energy efficiency and renewable and alternative energy technologies
The Green Communities program would be administered by the Division of Green Communities within a new Department of Energy Resources under the Executive Office of Environmental Affairs.
The division would serve as the principal contact between the state and municipalities on all energy-related matters under the jurisdiction of the Department of Energy Resources.The energy bill would also:
• Allow municipalities to construct, own and operate small renewable generation facilities to help control their energy bills
• Establish a Regional Greenhouse Gas Initiative Trust Fund to provide funds for the Green Communities program, to provide interest-free loans for for energy efficiency projects in municipalities that do not qualify as a “green community,” and to reimburse communities for property tax losses due to mandates of the Greenhouse Gas Initiative or the regulation of carbon dioxide emissions for electric generating stations
• Authorize municipal light plants to establish a “renewable energy charge” and enter into the Massachusetts Renewable Energy Trust Fund so customers may be eligible for grants from the fund for renewable energy projects
• Require local building inspectors to have a general knowledge of the energy requirements as part of the International Energy Conservation Code
• Establish several new processes for state and local entities to pursue solar energy and to procure energy management services for projects less than $100,000
• Allow communities to consider areas designated for Class I renewable energy facilities as a factor in designating a Economic Target Area
• Requires the Division of Green Communities to develop a competitive bidding process for the procurement of renewable or alternative electric generation for “green communities”
• Revise processes for state and local entities to procure energy management services
• Extend the financing term for municipalities for efficiency, alternative, or renewable improvements from 10 to 20 years
• Establish a special commission (with participation by the MMA) to investigate the development of “green building initiatives”
• Establish a special commission (with participation by the MMA) to make recommendations to improve the process by which a city or town may establish and operate a municipal-owned electric utility.
By MMA Senior Legislative Analyst Matthew G. Feher
2 comments:
It's great that they're working on a bill for residents in the community, but they should also try to focus on nonresidential buildings who are inefficient. These businesses, hotels, and schools are using the most energy, and by being forced to consume less energy and implement a demand response solutions, it could really help.
Nonetheless, great post, the Bill sounds great!
Mr. Murphy,
You didn't indicate if you were connected with EnerNOC or live in the area, but the introduction to the organization is appreciated.
A search of MR will indicate that I have posted comments about municipal energy consumption, building waste previously and successfully ruffled many local feathers.
Middleboro spent millions restoring an Historic Town Hall, but failed to insulate or install storm windows (or address glazing in any fashion). It's a magnificant building, worthy of preservation that houses 12 employees. The entire 2nd floor is a 2 story auditorium that is not isolated from HVAC.
The school department of an abutting city, Taunton retained a firm to save energy costs and realized $570,000 the first year.
Other towns surrounding Middleboro have taken proactive steps to reduce their energy costs and generate their own alternative power.
But Middleboro seems reluctant to save money or examine the issue.
Maybe some leadership is required or the costs need to increase more.
On the Environmental Stewardship page of EnerNOC, the following was included:
EnerNOC also offers our employees hybrid car subsidies and energy efficiency incentives to promote intelligent energy use. Employees who purchase hybrid cars receive monthly subsidies. With EnerNOC’s Green Green! program, EnerNOC encourages employees to install compact fluorescent light bulbs, commute environmentally (walk, bike, take public transportation, car pool, or drive a hybrid), replace old appliances with energy efficient equivalents, conduct home energy audits, and influence family and friends to follow EnerNOC’s environmental stewardship.
Sounds great to me!
I hope you'll continue to contribute other information you are aware of.
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