SECTION 1. Subsection (b) of section 11F of chapter 25A of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by striking, in line 35, the following words:- and (7)
SECTION 2. Subsection (c) of section 11F of chapter 25A of the General Laws, as so appearing, is hereby amended by striking, in line 63, the number “25” and inserting in the place thereof the following number:- 30
SECTION 3. Subsection (c) of section 11F of chapter 25A of the General Laws, as so appearing, is hereby amended by striking, in line 65, the number “25” and inserting the place thereof the following number:- 30
SECTION 4. Subsection (c) of section 11F of chapter 25A of the General Laws, as so appearing, is hereby amended by inserting after “qualify;” in line 65, the following words:-
however, new facilities having a capacity greater than 30 megawatts shall qualify as Class I renewable energy generating sources as prescribed by the department pursuant to subsection (j)
SECTION 5. Subsection (c) of section 11F of chapter 25A of the General Laws, as so appearing, is hereby amended by striking, in line 66, the following words:-
and (iii) no such facility shall involve pumped storage of water or construction of any new dam or water diversion structure constructed later than January 1, 1998;
SECTION 6. Subsection (d) of section 11F of chapter 25A of the General Laws, as so appearing, is hereby amended by striking, in line 94, the following words:- pumped storage of water nor
SECTION 7. Section 11F of chapter 25A of the General Laws, as so appearing, is hereby amended by inserting, after subsection (i) the following new subsections:-
(j) The department shall adopt regulations allowing for each retail supplier, in satisfying its annual obligations under subsection (a), to provide a portion of the required minimum percentage of kilowatt-hours sales of energy generated by new renewable energy sources from energy generated by new hydroelectric facilities, or incremental new energy from increased capacity or efficiency improvements at existing hydroelectric facilities, having a capacity larger than 30 megawatts. The department may specify the maximum portion of the minimum percentage of kilowatt-hour sales from energy generated by new hydroelectric facilities having a capacity larger than 30 megawatts that satisfies a retail supplier’s annual obligations under subsection (a); provided, however, that the department shall specify the maximum portion as a percentage of the minimum percentage of kilowatt-hour sales from new renewable energy generating sources that shall encourage the incorporation of hydroelectric generation, from new facilities larger than 30 megawatts or existing facilities larger than 30 megawatts that have a new increased capacity, in the commonwealth’s renewable energy portfolio.
(k) No retail supplier shall be required to make alternative compliance payments pursuant to section 11F until the department has adopted regulations allowing for each retail supplier, in satisfying its annual obligations under subsection (a), to provide a portion of the required minimum percentage of kilowatt-hours sales of energy generated by new renewable energy sources from energy generated by new hydroelectric facilities as prescribed in subsections (b), (c), (d), and (j).
SECTION 8. Chapter 21A of the General Laws, as so appearing, is hereby amended by inserting after section 23, the following new section:-
Section 24. (a) There shall be within the office an energy policy and electricity cost reduction commission, which shall be an independent public entity not subject to the supervision and control of the office or any other executive office, department, commission, board, bureau, agency or political subdivision of the commonwealth. The commission shall promote public transparency regarding the effectiveness and economic cost of energy and electricity policies and programs implemented in the commonwealth. The commission shall be charged with researching and reviewing the economic and electricity cost implications of current and proposed energy and electricity policies in the commonwealth, as well as the impact these policies have on electricity reliability. The commission shall report to the legislature, as prescribed in this section, with comprehensive recommendations for reforms the commonwealth can implement to: (i) encourage business development and job creation, (ii) reduce the costs associated with energy programs funded, in whole or in part, by the commonwealth, particularly programs established pursuant to chapter 169 of the acts of 2008, (iii) reduce the cost of electricity for commercial, industrial, and residential customers, and (iv) increase electricity reliability.
(b) (1)The commission shall consist of 19 persons, as follows: the secretary of energy and environmental affairs and the secretary of housing and economic development, both of whom shall serve as the co-chairs; the attorney general; the inspector general; the commissioner of the department of energy resources or his designee; the chair of the department of public utilities or her designee; 1 person appointed by ISO-New England; 1 person appointed by associated industries of Massachusetts; 1 person appointed by the Massachusetts chapter of the national federation of independent business; 1 person appointed by the Massachusetts clean energy center; 4 persons who are experts in energy efficiency, 1 of whom shall be appointed by the speaker of the house, 1 of whom shall be appointed by the minority leader of the house, 1 of whom shall be appointed by the president of the senate, and 1 of whom shall be appointed by the minority leader of the senate; 5 persons appointed by the Governor, 1 of whom shall be a representative from organized labor, 1 of whom shall be a representative of a Massachusetts green business with 10 or fewer employees, 1 of whom shall be a representative of a Massachusetts green business with 10 or more employees, 1 of whom shall be a representative of an institution of higher education and who is also an expert in the structure of the regional wholesale electricity market, and 1 of whom shall be a representative of an institution of higher education and who is also an expert in energy efficiency.
(2) Members of the commission shall serve terms of 2 years and until their successors are appointed.
(3) Vacancies in the membership of the commission shall be filled by the original appointing authority for the balance of the unexpired term.
(4) The chairs of the commission may designate on an annual basis 1 or more commission members as vice-chairs of the commission. The commission shall select any other officers it deems necessary.
(5) The members of the commission shall receive no compensation for their services, but shall be reimbursed for any usual and customary expenses incurred in the performance of their duties.
(6) The powers of the commission shall include, but not be limited to: (i) using voluntary and uncompensated services of private individuals, agencies and organizations as may from time to time be offered or needed; (ii) recommending policies and making recommendations to agencies and officers of the state and local subdivisions of government to effectuate the changes outlined in section (a); (ii) enacting by-laws for the commission’s own governance; and (iv) holding regular public meetings, fact-finding hearings, and other public forums as the commission deems necessary.
(7) The commission may request from all state agencies such information and assistance as the commission may require.
(c) (1) The commission shall issue an annual report which shall include, at minimum an analysis of the economic cost, electricity cost, and implication for electricity reliability of: (i) implementing administrative, regulatory, and legislative rulemaking as it pertains to electricity and the structure of the wholesale electricity market and (ii) meeting legislative and administrative goals and requirements related to greenhouse gas reductions, energy efficiency, and renewable energy generation, particularly goals established pursuant to Chapter 169 of the Acts of 2008.
(2) In so doing, the commission shall at minimum research, evaluate, consider and report on: (i) the accuracy of metrics used to assess the success of ratepayer and taxpayer funded, in whole or in part, programs established pursuant to Chapter 169 of the Acts of 2008, (ii) the accuracy of metrics used to assess the cost effectiveness of ratepayer and taxpayer funded, in whole or in part, programs established pursuant to Chapter 169 of the Acts of 2008 (ii) the cost impact of the mandatory renewable energy charge and the energy efficiency charge, established pursuant to Section 19 and 20 of Chapter 25 of the General Laws, on commercial, industrial, and residential electric service customers, (iii) the effectiveness and necessity of incentives awarded to electric distribution and gas distribution companies pursuant to Chapter 169 of the Acts of 2008, (iv) the economic impact of residential, commercial and industrial construction requirements for green communities, established pursuant to section 10 of chapter 25A, on municipalities that qualify as a green community, (v) the electricity cost implications and associated economic impact of scheduled and projected investments in smart meter technology and transmission infrastructure, (vi) the electricity cost implications and associated economic impact of scheduled increases in demand resources, aggregate net metering capacity, and renewable energy capacity, specifically scheduled and projected installations of wind and solar capacity, (vii) the structure of the regional wholesale electricity market and its impact on retail electricity costs, and (viii) the overall impact of the Commonwealth’s energy and electricity policies on economic growth in the Commonwealth, specifically net job creation and business development, establishment, and retention.
(d) (1) The commission shall consult with electric distribution companies, natural gas distribution companies, green businesses residing in the Commonwealth, and other interested parties, providing at least one opportunity for public comment, as well as the public review of the commission’s annual draft report prior to filing the report with the legislature.
(2) The commission shall convene its first meeting within 45 days of the passage of this Act and shall file its first report, along with any recommendations for legislative or regulatory reforms deemed necessary to effectuate the changes outlined in subsection (a), with the clerk of the house and the clerk of the senate, and with the house and senate chairs of the joint committee on telecommunications, utilities and energy, within 180 days of the commission’s first meeting. All subsequent annual reports shall be filed by the commission no later than December 31 of each year.
(e) Joint committees of the general court and the house and senate committees on ways and means when reporting favorably on bills referred to them that will amend or modify the commonwealth’s energy and electricity policies, shall include a review and evaluation conducted by the commission pursuant to this section.
(f) (1) Upon request of a joint standing committee of the general court having jurisdiction or the committee on ways and means of either branch, the commission on energy policy and electricity cost reduction shall conduct a review and evaluation of proposed amendments or modifications to the commonwealth’s energy and electricity policies, in consultation with relevant state agencies, and shall report back to the joint standing committee or committee on ways and means within 90 days of the request.
(2) The commission’s review and report on proposed changes shall include a detailed evaluation and explanation of the potential environmental and economic impacts of said changes on residents and businesses in the commonwealth, as well as the impact of said changes on electricity reliability. In so doing, the report shall address, at minimum the impact of proposed changes on: (i) business development and retention in the commonwealth, (ii) net job creation, (iii) the costs associated with energy programs funded, in whole or in part, by the commonwealth, particularly programs established pursuant to chapter 169 of the acts of 2008, (iv) the cost of electricity for commercial, industrial, and residential customers, and (v) electricity reliability.
(3) No change in energy or electricity policy shall be implemented until such a review has been undertaken and a report filed with the legislature pursuant to this section.
(4) The party or organization on whose behalf the bill was filed shall provide the commission on energy policy and electricity cost containment with any economic cost, electricity cost, electricity reliability, or environmental impact data that they have. All interested parties supporting or opposing the bill shall provide the commission on energy policy and electricity cost containment with any information relevant to the commission’s review.
SECTION 9. Notwithstanding any general or special law to the contrary the division of energy resources shall, not less than once every five years, complete a review of all renewable energy portfolio standards and issue a report detailing how those standards are impacting economic growth in the Commonwealth, specifically net job creation and business development, establishment, and retention. Said report shall be filed with the clerk of the house and clerk of the senate, and with the house and senate chairs of the joint committee on telecommunications, utilities and energy.
SECTION 10. Paragraph 1 of section 83 of chapter 169 of the acts of 2008 is hereby amended by striking out the first sentence and inserting in the place thereof, the following sentence:-
Commencing on July 1, 2009, and continuing for a period of 5 years thereafter, each distribution company, as defined in section 1 of chapter 164 of the General Laws, shall be required twice in that 5 year period to competitively solicit proposals from renewable energy developers and, provided at least three reasonable proposals have been received, enter into cost-effective long-term contracts.
SECTION 11. Paragraph 2 of section 83 of said chapter is hereby amended by striking out the third sentence and inserting in the place thereof, the following sentence:-
The electric distribution company shall select a reasonable method of soliciting proposals from renewable energy developers.
SECTION 12. Paragraph 2 of section 83 of said chapter is hereby amended by striking out the fourth sentence and inserting in the place thereof, the following sentence:-
The distribution company may consult with the department of energy resources regarding its choice of contracting methods.
SECTION 13. Section 83 of chapter 169 of said chapter is hereby amended by striking out the third paragraph and inserting in the place thereof, the following paragraph:-
The department of public utilities and the department of energy resources shall each adopt regulations consistent with this section. The regulations shall: (a) allow renewable energy developers to submit proposals for long-term contracts conforming to the contracting methods specified in the second paragraph; (b) require that contracts executed by the distribution company under such proposals are filed with, and approved by, the department of public utilities before they become effective; (c) provide for an annual remuneration for the contracting distribution company up to 4 per cent of the annual payments under the contract to compensate the company for accepting the financial obligation of the long-term contract, such provision to be determined by the department of public utilities at the time of contract approval; and (d) require that the renewable energy generating source to be used by a developer under the proposal meet the following criteria: (1) have a commercial operation date, as verified by the department of energy resources, on or after January 1, 2008; (2) be qualified by the department of energy resources as eligible to participate in the RPS program, under said section 11F of chapter 25A, and to sell RECs under the program; and (3) be determined by the department of public utilities to: (i) provide enhanced electricity reliability within the commonwealth; (ii) contribute to moderating system peak load requirements; and (iii) be cost effective to Massachusetts electric ratepayers over the term of the contract. As part of its approval process, the department of public utilities shall consider the attorney general’s recommendations, which shall be submitted to the department of public utilities within 45 days following the filing of such contracts with the department of public utilities. The department of public utilities shall take into consideration both the potential costs and benefits of such contracts, and shall approve a contract only upon a finding that it is a cost effective mechanism for procuring renewable energy on a long-term basis. For the purposes of this section, cost effective shall mean proposals that are likely to result in net ratepayer savings as compared to current and projected future market prices of energy and RECs over the course of the contract period. If, after competitive solicitation, no proposal received by a distribution company is determined to provide such savings, cost effective shall mean proposals that are the least costly in terms of electric service rates.
SECTION 14. Paragraph 4 of section 83 of said chapter is hereby amended by striking out, in the first sentence, the following words:- be obligated to
SECTION 15. Paragraph 5 of section 83 of said chapter is hereby amended by inserting in the first sentence, after the word “customers,” the following words:- at the contracted price
SECTION 16. Paragraph 9 of section 83 of said chapter is hereby repealed.
SECTION 17. Sections 10 through 16, inclusive, of this act shall be effective on September 1, 2011.
SECTION 18. Section 24 of Chapter 21A is hereby repealed.
SECTION 19. Section 9 of this act shall be effective on December 31, 2023.
SECTION 20. Section 18 of this act shall be effective on December 31, 2023.
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