HOUSE . . . . . . . . No. 4348
The Commonwealth of Massachusetts
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HOUSE OF REPRESENTATIVES, January 24, 2022.
The committee on Telecommunications, Utilities and Energy to whom
was referred the message from His Excellency the Governor
recommending legislation relative to power Massachusetts’s clean energy
economy (accompanied by bill, House, No. 4204), the petition
(accompanied by bill, Senate, No. 2227) of Marc R. Pacheco and Michael
D. Brady for legislation to expand offshore wind development in the
Commonwealth, the petition (accompanied by bill, House, No. 3294) of
Carolyn C. Dykema and others relative to the innovation and local
investment in the green economy, the petition (accompanied by bill,
House, No. 3302) of Dylan A. Fernandes and others relative to the
offshore wind industry, workforce development, fisheries and
environmental protection, the petition (accompanied by bill, House, No.
3310) of Thomas A. Golden, Jr., and Patricia A. Haddad relative to
making appropriations for the investment in and expansion of the offshore
wind industry, the petition (accompanied by bill, House, No. 3313) of
Thomas A. Golden, Jr., and Joanne M. Comerford relative to customer
access to a modern electric grid, the petition (accompanied by bill, House,
No. 3328) of Bradley H. Jones, Jr., Mathew J. Muratore and Steven S.
Howitt relative to energy storage, reports recommending that the
accompanying bill (House, No. 4348) ought to pass [Senator Tarr
dissents].
For the committee,
JEFFREY N. ROY.
 FILED ON: 1/12/2022
HOUSE . . . . . . . . . . . . . . . No. 4348
The Commonwealth of Massachusetts
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In the One Hundred and Ninety-Second General Court
(2021-2022)
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An Act advancing offshore wind and clean energy.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. Chapter 23 of the General Laws is hereby amended by adding the following
2 section:-
3 Section 26. For the purpose of promoting access to academic and technical skills that
4 prepare the workforce for high-skilled, high-wage and high-demand occupations in the
5 Commonwealth, the executive office of labor and workforce development shall provide the
6 department of elementary and secondary education, annually, not later than February 1, with a
7 list of occupations in high-skilled, high-demand and high-wage industries in Massachusetts,
8 including the related workforce needs and shortages in each region, that require an industry-
9 recognized certification or and industry for which such certification would materially enhance a
10 job applicant’s chances for employment or enhanced compensation. The list shall be based on
11 employment value, with the top 20 percent of occupations deemed occupations of high
12 employment value, provided, however, that no occupation shall be included on the list which has
13 an annual salary or wage less than 70 percent of the average annual salary or wage in the
14 Commonwealth, unless the certification for such an occupation is stackable to another industry
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15 certification and required for the next level of occupation. The executive office of labor and
16 workforce development shall work in consultation with the department of elementary and
17 secondary education for the purposes of making the list available to all school districts in the
18 Commonwealth and the public. Information provided to the department of elementary and
19 secondary education shall include, but shall not be limited to, recommendations on potential
20 courses and programming in public schools that can effectively contribute to providing
21 credentials in the top 20 percent of occupations in high-skilled, high-demand and high-wage
22 industries in the Commonwealth.
23 SECTION 2. Section 1 of chapter 23J of the General Laws, as appearing in the 2018
24 Official Edition, is hereby amended by adding after the definition of “fund” the following
25 definition:-
26 “Offshore wind company”, a business corporation, partnership, firm, unincorporated
27 association or other entity engaged in offshore wind development, manufacturing or
28 commercialization in the commonwealth and any affiliate thereof, which is, or the members of
29 which are, subject to taxation under chapter 62, 63, 64H or 64I.
30 “Offshore wind organization,” a non-profit institution, adult and community learning
31 service provider, labor organization, regional employment board, public higher education
32 institution, vocational-technical education institution or other entity engaged in offshore wind
33 development that does not satisfy the definition of offshore wind company.
34 SECTION 3. Section 2 of said chapter 23J, as so appearing, is hereby amended by
35 striking out subsection (b) and inserting in place thereof the following subsection:
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36 (b) The center shall be governed and its corporate powers exercised by a board of
37 directors consisting of 14 directors: 1 of whom shall be the secretary of energy and
38 environmental affairs or their designee, who shall serve as a chair; 1 of whom shall be the
39 secretary of housing and economic development or their designee; 1 of whom shall be the
40 secretary of administration and finance or their designee; 1 of whom shall be the secretary of
41 labor and workforce development or their designee; 1 of whom shall be the president of the
42 University of Massachusetts or their designee; 1 of whom shall be the executive director of the
43 Massachusetts Workforce Alliance; 1 of whom shall be the commissioner of the department of
44 energy resources; 2 of whom shall be appointed by the Speaker of the Massachusetts House of
45 Representatives, 1 of whom shall be a union representative; 2 of whom shall be appointed by the
46 President of the Massachusetts Senate, 1 of whom shall have knowledge of electricity
47 distribution, generation, supply or power marketing; and 3 of whom shall be appointed by the
48 governor, 1 of whom shall be a venture capitalist or a chief executive officer of a Massachusetts-
49 based clean energy corporation with expertise in clean energy technologies in the
50 commonwealth, 1 of whom shall be the president of a Massachusetts community college or their
51 designee, and 1 of whom shall be the president of a private college or university or their
52 designee. Each of the 3 directors appointed by the governor, the two directors appointed by the
53 Speaker of the Massachusetts House of Representatives and, and the two directors appointed by
54 the President of the Massachusetts Senate shall serve for a term of 5 years. A director shall be
55 eligible for reappointment. A director may be removed from their appointment by the governor
56 for cause. A person appointed to fill a vacancy in the office of an appointed director of the board
57 shall be appointed in a like matter and shall serve for only the unexpired term of the director.
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58 SECTION 4. Said section 2 of said chapter 23J is hereby further amended, in line 66, by
59 striking out the word “Six” and inserting in place thereof the following word:- Seven.
60 SECTION 5. Section 3 of said chapter 23J of the General Laws, as appearing in the 2018
61 Official Edition, is hereby amended by inserting the following new paragraph:-
62 (32) to serve as a focal point, and provide state-wide coordination, for offshore wind
63 initiatives; provided, however, that said responsibilities may include, but not be limited to: (i)
64 working with public and private higher education institutions in the commonwealth to coordinate
65 and strengthen offshore wind research activities in the commonwealth; (ii) strengthening
66 collaborative research and development between universities and companies located within the
67 commonwealth, (iii) addressing critical barriers facing offshore wind companies in the
68 commonwealth; (iv) assessing and reporting on infrastructure requirements that support the
69 growing offshore wind industry in the commonwealth; (v) supporting and growing an offshore
70 wind supply chain in the commonwealth; (vi) supporting and developing offshore wind training
71 initiatives; and (vii) supporting and growing offshore wind innovation and entrepreneurship in
72 the commonwealth.
73 SECTION 6. Said chapter 23J of the General Laws, as so appearing in the 2018 Official
74 Edition, is hereby further amended by adding after section 8 the following new section:-
75 Section 8A. (a) There shall be established and placed within the center a commonwealth
76 offshore wind industry investment program which shall be administered by the center. The
77 purpose of the program shall be to develop and expand offshore wind industry-related
78 employment opportunities in the commonwealth and to promote renewable energy-related
79 innovations and economic development benefits to the commonwealth by supporting and
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 80 stimulating siting, development, manufacturing and commercialization in the offshore wind
81 industry. Offshore wind companies certified pursuant to subsection (b) and offshore wind
82 organizations certified pursuant to subsection (c) shall be eligible for participation in the
83 program.
84 (b) The center may, upon a majority vote of the board, certify an offshore wind company
85 as a certified offshore wind company upon: (i) the timely receipt, as determined by the center, of
86 a certification proposal supported by independently verifiable information, signed under the
87 pains and penalties of perjury by a person expressly authorized to contract on behalf of the
88 offshore wind company and which shall include, but not be limited to: (A) an estimate of the
89 projected new state revenue the offshore wind company expects to generate during the period for
90 which the company seeks certification, together with a plan, including precise goals and
91 objectives, by which the offshore wind company proposes to achieve the projected new state
92 revenue; and (B) documentation of an agreement, if any, between the offshore wind company
93 and banking institutions with which the offshore wind company shall have agreed to establish
94 accounts and by which the banking institutions shall have agreed to commit a specified
95 percentage of the funds deposited in the accounts for loans made thereby to companies under the
96 small business capital access program established pursuant to section 57 of chapter 23A; and (ii)
97 findings made by the center, based on the certification proposal, documents submitted therewith
98 and any additional investigation by the center, and incorporated in its approval, that: (A) the
99 offshore wind company shall meet all statutory requirements and any other criteria that the center
100 may prescribe including, but not limited to criteria in the following areas: the offshore wind
101 company's potential for leveraging additional funding or attracting additional resources to the
102 commonwealth; the offshore wind company's potential to promote offshore wind manufacturing
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103 in the commonwealth; and the offshore wind company’s potential to create employment in the
104 commonwealth; and (B) a certified offshore wind company shall meet the new state revenue and
105 employment growth projections, as specified in the certification proposal, over the period for
106 which it receives benefits.
107 (c) The center may additionally certify an offshore wind organization and shall establish
108 similar requirements for the certification of an offshore wind organization as required by
109 subsection (b) of section 8A, providing that the requirements may take into account differences
110 between offshore wind companies and organizations, and differences between different types of
111 offshore wind organizations.
112 (d) A certified offshore wind company or certified offshore wind organization may, upon
113 a majority vote of the board or governing body, be eligible for the following benefits which shall
114 be awarded by the board on a competitive basis: (1) benefits from the offshore wind tax incentive
115 program established by subsection (e); (2) grants, loans or other investments over $5,000,000
116 from the Massachusetts Offshore Wind Industry Investment Fund established by section 9A; (3)
117 assistance from the center in accessing economic incentive programs within the Massachusetts
118 office of business development, including access to the technical, human, financial, training,
119 educational and site-finding resources necessary to expand or locate in the commonwealth; (4)
120 assistance from the center in obtaining federal grants; (5) preference for pre-permitted industrial
121 land as identified by the Massachusetts Development Finance Agency.
122 (e) There shall be established an offshore wind industry tax incentive program. The
123 center, in consultation with the department, may annually authorize incentives, including those
124 established in subsection (w) of section 6 of chapter 62 and section 38II of chapter 63, that shall
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125 not exceed $30,000,000 annually. The center may, in consultation with the department, limit any
126 incentive to a specific dollar amount or time duration or in any other manner deemed appropriate
127 by the department; provided, however, that the department shall only allocate any such
128 incentives among commonwealth certified offshore wind companies pursuant to subsection (b)
129 and shall award such tax incentives pursuant to subsection (d). The center shall establish similar
130 requirements as required by this section to provide said tax incentive program to offshore wind
131 organizations, providing that the requirements may take into account differences between
132 offshore wind companies and organizations, and differences between different types of offshore
133 wind organizations.
134 The center shall provide an estimate to the secretary of administration and finance of the
135 tax cost of extending benefits to a proposed project before certification, as approved by the
136 commissioner of revenue, based on reasonable projections of project activities and costs. Tax
137 incentives shall not be available to a certified offshore wind company or offshore wind
138 organization unless expressly granted by the secretary of administration and finance in writing.
139 (f)(1) Certification granted pursuant to subsection (b) and (c) shall be valid for 5 years
140 starting with the tax year in which certification is granted. Each certified offshore wind company
141 shall file an annual report with the center detailing whether it has met the specific targets
142 established in the proposal pursuant to subclause (A) of clause (i) of subsection (b). Each
143 certified offshore wind organization shall be governed by any reporting requirements required by
144 the center pursuant to subsection (c).
145 (2) The certification of an offshore wind company may be revoked by the center after an
146 independent investigation and determination that representations made by the certified offshore
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147 wind company in its certification proposal are materially at variance with the conduct of the
148 offshore wind company after receiving certification; provided, however, that the center shall
149 review the certified offshore wind company at least annually; provided, further, that a project
150 with an actual return on investment that is less than 70 per cent of the return on investment
151 projected in the certification proposal shall be deemed to contain a material variance for a
152 revocation determination. If the center determines not to revoke certification upon a finding that
153 the actual return on investment for the project is less than 70 per cent, the center shall provide its
154 reasons for the decision in writing to the secretary of administration and finance, the
155 commissioner of revenue and the clerks of the house of representatives and the senate, who shall
156 forward the same to the house and senate committees on ways and means, the joint committee on
157 revenue, the joint committee on telecommunications, utilities and energy, and the joint
158 committee on economic development and emerging technologies. The center shall post these
159 reasons on the internet for public access. The center shall establish similar requirements for the
160 revocation of the certification of an offshore wind organization as required by this section,
161 providing that the requirements may take into account differences between offshore wind
162 companies and organizations, and differences between different types of offshore wind
163 organizations.
164 (3) Under this subsection, revocation shall take effect on the first day of the tax year in
165 which the center determines that a material variance commenced. The commissioner of revenue
166 shall, as of the effective date of the revocation, disallow any credits, exemptions or other tax
167 benefits allowed by the original certification of tax benefits under this section. The department
168 shall issue regulations to recapture the value of any credits, exemptions or other tax benefits
169 allowed by the certification under this section. If the original certification allowed sales and use