On July 2, 2008, Governor Deval Patrick of Massachusetts signed The Green Communities Act, SB 2768, which expands alternative and renewable energy and energy efficiency efforts. The legislation includes a variety of strategies for increasing alternative and renewable energy and energy efficiency across multiple sectors, including electricity, buildings, and transportation.

A number of provisions in the bill relate to renewable and alternative energy. SB 2768 mandates that the state’s renewable portfolio standard will grow one percent each year beyond the current standard of 4 percent in 2009, so that renewable energy will provide 15 percent of electricity generation by 2020 and 25 percent by 2030. The groundwork was also established for the Department of Energy Resources to establish an alternative energy portfolio standard requiring that a percentage of electricity be derived by approved alternative energy sources, including gasified coal with carbon capture and sequestration. The legislation also establishes long-term contracts for renewable energy providers and approved of net metering provisions.

Among the energy efficiency measures in the legislation are mandates for electric and natural gas utilities to invest in energy efficiency programs, the creation of a council to oversee the implementation of energy efficiency programs, adoption of new building energy codes, and the creation of the Green Communities program to support municipal efficiency and conservation programs. Under the Green Communities program, the state will develop a plan to reduce total energy consumption 10 percent by 2017. SB 2768 directs utilities to invest in energy efficiency measures to meet increased electricity demand whenever doing so is more cost-effective than buying new power or constructing additional power plants. The bill also mandates that by 2020, 25 percent of the state’s electric load will be met using demand side resources including energy efficiency, load management, combined heat and power, and others measures. In addition, fossil fuel use in buildings will be reduced 10 percent below 2007 by 2020 through improved building equipment and efficiency measures. The legislation also calls for half of the state government fleet of vehicles to be made up of hybrid or alternative fuel vehicles by 2018.

Additionally, the legislation authorizes the auction of all allowances issued under the northeast Regional Greenhouse Gas Initiative. Funds collected from the auction are directed to support the administration of the cap-and-trade program, as well as a variety of energy efficiency programs.

Press Release [1]

SB 2768 [2]

RGGI [3]