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Massachusetts

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State Planning and Incentive Structures | Energy Efficiency Actions | Energy Supply Actions

State Planning and Incentive Structures

Lead By Example—Energy Efficiency in Public Facilities

Status: Completed

Details: Massachusetts Governor Deval Patrick signed the Green Communities Act (S.B. 2768) on July 2, 2008. The law mandates that new buildings owned or operated by the state must minimize their life-cycle costs by using energy efficiency and renewable energy.
In Executive Order 484, "Leading By Example - Clean Energy and Efficient Buildings," signed on April 18, 2007, Governor Patrick required a reduction in overall energy consumption in state-owned and leased buildings (at which the state pays directly for energy) by 20% by fiscal year 2012 and 35% by 2020 (based on a fiscal year 2004 baseline). The executive order also states that all state agency new construction and major renovations, effective immediately, must meet the MA LEED Plus green building standard established by the Massachusetts Sustainable Design Roundtable.

Lead By Example—Energy Efficient Appliance and Equipment Purchase Requirements for Public Facilities

Status: Completed

Details: Executive Office for Administration and Finance Bulletin 11 (August 2006) calls for state agencies to procure ENERGY STAR appliances as a part of a broader effort to implement all appropriate energy efficiency and conservation strategies as quickly as possible.

Lead By Example—Clean Energy Goals for Public Facilities

Status: Completed

Details: In Executive Order 484, "Leading By Example - Clean Energy and Efficient Buildings," signed on April 18, 2007, Governor Deval Patrick required state agencies to procure 15% of agency annual electricity consumption from renewable sources by 2012 and 30% by 2020. Additionally, state agencies must utilize bio heat products with a minimum blend of 3% bio-based materials for all heating applications that use #2 fuel starting with the winter of 2007-2008, and 10% bio-heat blend by 2012.

Lead By Example—Energy Efficiency and Alternative Fuel Goals for Public Fleets

Status: Completed

Details: Massachusetts Governor Deval Patrick signed the Green Communities Act (S.B. 2768) on July 2, 2008. The law requires the state to purchase hybrid or alternative fuel vehicles to the maximum extent feasible, with such purchases providing at least 5% of all new motor vehicles purchased by the state.
Executive Office for Administration and Finance Bulletin 13 (August 2006) empowers the Office of Administration and Finance to set minimum percentage requirements for E85 usage in state flex-fuel vehicles. It mandates that by fiscal year 2010, all agencies will use a minimum of 15% biodiesel in both on-road and off-road diesel engines. Executive Order 388 (1997) ordered that, in fiscal year 2001 and thereafter, at least 75% of non-excluded vehicles purchased by the state must be the cleanest alternative fuel vehicles "available and practicable," and that at least 10% of the non-excluded vehicles must be zero emission vehicles.

State and Regional Energy Planning

Status: Completed

Details: In August 2006, Massachusetts Governor Romney unveiled an energy plan that promotes efficiency and advanced technologies, while seeking to diversify and expand energy supply.

Determining the Air Quality Benefits of Clean Energy—Energy Efficiency/Renewable Energy Set Asides (NOX Budget Trading Program)

Status: Completed

Details: MA's set-aside program accounts for 5% or 643 tons of state NOx trading program budget. The state allows NOx-free projects that generate electrical or useful net thermal energy, including: solar photovoltaic or thermal, wind, some fuel cells, ocean thermal, wave, hydro, and geothermal. Biomass and landfill gas are not included. Allocations are awarded on an annual basis, and are awarded for one year at a time. Project performance is based on the period from May 1 to September 30. Multiple projects may be aggregated.

Determining the Air Quality Benefits of Clean Energy—Energy Efficiency/Renewable Energy Set Asides (CAIR Budget Trading Program)

Status: Completed

Details: Massachusetts's CAIR program includes both a Public Benefit set-aside (PBSA) to encourage Energy Efficiency Projects (EEPs) and Renewable Energy Projects (REPs), and a new unit set-aside to allow for addition of new units. Both of these types of set-asides were included in the State's NOX SIP Call trading program, which has a 5% set-aside.

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Energy Efficiency Actions

Energy Efficiency Portfolio Standards

Status: Completed

Details: On July 2, 2008, Governor Deval Patrick signed the Green Communities Act, a measure aimed at boosting use of alternative and renewable energy sources and energy efficiency measures. The Act requires Massachusetts to meet at least 25% of its electric load, including both capacity and energy, by the year 2020 with clean, demand side resources including: energy efficiency, load management, and demand response.

Public Benefit Funds for Energy Efficiency

Status: Completed

Details: On July 2, 2008, Massachusetts Governor Patrick signed the Green Communities Act (HB4373) which sets a standard for utilities to implement all cost-effective energy efficiency measures. Funding for energy efficiency consists of the current systems benefit charge, the majority of the revenues from Regional Greenhouse Gas Initiative (RGGI) auctions, and new charges on distribution rates as necessary.
A non-bypassable charge ($0.00025/kWh) funds energy efficiency, low income programs and the MA Renewable Energy Trust. The PBF charge is 0.05 cents/kWh, raising ~$40 million/year. The fund collected $1.09 billion during years 1998-2006, and is projected to collect $1.71 billion through 2012. Gas energy efficiency has also been offered through local distribution companies for over 20 years. Collections are $0.01/therm, with expenditures of $25M/year. The investments go towards the installation of high efficiency HVAC equipment and appliances, construction of high-efficiency homes and buildings, and more. In November 2005, the PBF was extended until 2012 and additional provisions were added to assist consumers with loans for energy-efficient appliances, windows, etc.

Building Codes for Energy Efficiency—Commercial Programs

Status: Goes Beyond ECPA

Details: Massachusetts Governor Deval Patrick signed the Green Communities Act (S.B. 2768) on July 2, 2008. The law requires the State Board of Building Regulations and Standards to adopt, as its minimum standard, the latest edition of the International Energy Conservation Code as part of the State Building Code.
MA State Building Code, based on ASHRAE/IESNA 90.1-1999, 2000 IECC, and additional state-developed amendments, mandatory statewide; can use COMcheck-EZ to show compliance.

Building Codes for Energy Efficiency—Residential Programs

Status: Goes Beyond ECPA

Details: Massachusetts Governor Deval Patrick signed the Green Communities Act (S.B. 2768) on July 2, 2008. The law requires the State Board of Building Regulations and Standards to adopt, as its minimum standard, the latest edition of the International Energy Conservation Code as part of the State Building Code.
MA State Building Code, based on 1995 MEC with state-specific amendments, mandatory statewide; can use REScheck to show compliance. The Seventh Edition of the Code for Single and Two Family Dwellings became effective on April 1, 2007. It is based on the 2003 IRC and the IBC. There was a six month overlap period until October 1, 2007.

State Appliance Efficiency Standards

Status: Completed

Details: The Governor signed HB 4299 on November 22, 2005, which included efficiency standards on seven products, such as residential furnaces, boilers, and furnace fans. The bill is estimated to reduce electricity use by about 700,000 gigawatt-hours per year by 2020.

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Energy Supply Actions

Renewable Portfolio Standards

Status: Completed

Details: Massachusetts Governor Deval Patrick signed the Green Communities Act (S.B. 2768) on July 2, 2008. The law doubles the rate of increase in the RPS from 0.5% per year to 1% per year, with no cap. As a result, utilities and other electricity suppliers will be required to obtain renewable power equal to 4% of sales in 2009, rising to 15% in 2020 and 25% in 2030.
Governor Patrick’s goal is to increase installed solar power from 5 MW in 2007 to 250 MW by 2017.
Previous RPS requirements increased over time from 1% of energy from renewables in 2003, increasing 0.5% every year until 2009 (4%), when clean energy must increase by 1% each year.

Public Benefit Funds for Clean Energy Supply

Status: Completed

Details: A non-bypassable charge funds energy efficiency, low income programs, and the Massachusetts Renewable Energy Trust, which is administered by the Massachusetts Technology Collaborative. The charge is $0.0005/kWh, and raises approximately $40 million annually.

Output-Based Environmental Regulations

Status: Completed/Further Work In Progress

Details: Massachusetts has used output-based methods in several important regulations. The Massachusetts NOx cap and trade program (CAIR) employs useful output, including the thermal output of combined heat and power, to allocate emission allowances to affected sources (generators > 25 MW). This approach provides a significant economic incentive for combined heat and power within the emissions cap. Massachusetts also has a multipollutant emission regulation (NOx, SO2, Hg, CO2) for existing power plants, which uses an output-based format for conventional emission limits. In 2008, MA has proposed revising their CHP regulations, 310 CMR 7.00, adjusting emissions limits for CHP units in recognition of the "dual" usage of the fuel consumed by the engine or combustion turbine. Additionally, early reduction credits under MA's RGGI rule will be allocated on an output basis.

Interconnection Standards—Clean Distributed Generation

Status: Completed/Further Work In Progress

Details: The Massachusetts Department of Telecommunications and Energy (DTE) opened Docket DTE 07-6 in March 2007 to investigate standby rates and alternative rate structures that will promote the deployment of DG, issues not covered in docket 02-38-D discussed below. The DTE has since been dissolved (in April 2007); DTE issues are now taken up by the Department of Public Utilities. In February 2007, DTE approved (docket 02-38-D) revisions to the state's Model Interconnection Tariff that were included in the Distributed Generation Collaborative's 2006 annual report. The 18 approved proposed changes include expanding the size limit for systems eligible for the simplified interconnection process from 10 kW to 25 kW for three-phase facilities, and replacing the cap with a requirement that the aggregate generating facility capacity be less than 1/15th of the customer's minimum load. Massachusetts's Interim Uniform Interconnection Standards (first issued in 2003 and amended in 2004 and 2005) apply to all distributed generation operating in the state, including renewables, with simplified rules for systems under 10 kW.

Interconnection Standards—Net Metering

Status: Completed

Details: Massachusetts Governor Deval Patrick signed the Green Communities Act (S.B. 2768) on July 2, 2008. The law widens the state’s existing net metering provisions for installations of up to 2 MW, an increase over the current cap of 60 kW.
The Massachusetts net metering program was originally ordered by the Department of Public Utilities in 1982 and has been amended since then.

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