Bill Summary – FastDemocracy

HOUSE . . . . . . . . No. 4501
        The Commonwealth of Massachusetts
                    ________________________________________
                       HOUSE OF REPRESENTATIVES, April 4, 2024.
    The committee on Telecommunications, Utilities and Energy, to whom
was referred the petition (accompanied by bill, House, No. 3187) of
Adrian C. Madaro and others relative to energy facilities siting
improvement to address environmental justice, climate, and public health,
and the petition (accompanied by bill, House, No. 3215) of Jeffrey N. Roy
for legislation to expedite permitting for electric decarbonization
infrastructure projects, reports recommending that the accompanying bill
(House, No. 4501) ought to pass.
                            For the committee,
                                                               JEFFREY N. ROY.
                                                      FILED ON: 2/7/2024
      HOUSE . . . . . . . . . . . . . . . No. 4501
                                The Commonwealth of Massachusetts
                                                      _______________
                                    In the One Hundred and Ninety-Third General Court
                                                       (2023-2024)
                                                      _______________
     An Act to expedite permitting for electric decarbonization infrastructure projects.
              Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
     of the same, as follows:
         SECTION 1. Section 69G of Chapter 164 of the General Laws is hereby amended by
 inserting after the definition of “electric company” the following: -
         “Energy storage system”, a commercially available technology that is capable of
 absorbing energy, storing it for a period of time and thereafter dispatching the energy and which
 may be owned by an electric distribution company; provided, however, that an energy storage
 system shall (i) reduce the emission of greenhouse gases; (ii) reduce demand for peak electrical
 generation; (iii) defer or substitute for an investment in generation, transmission or distribution
 assets; or (iv) improve the reliable operation of the electrical transmission or distribution grid;
 and provided further, that an energy storage system shall: (1) use mechanical, chemical or
 thermal processes to store energy that was generated for use at a later time; (2) store thermal
 energy for direct heating or cooling use at a later time in a manner that avoids the need to use
 electricity at that later time; (3) use mechanical, chemical or thermal processes to store energy
 generated from renewable resources for use at a later time; or (4) use mechanical, chemical or
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 thermal processes to capture or harness waste electricity and to store the waste electricity
 generated from mechanical processes for delivery at a later time.
        SECTION 2. Chapter 164, Section 69K1/2 of the General Laws is hereby amended in
 line 1 by inserting after the word “facility” the following: - by striking the first sentence and
 replacing it with the following:
        “Any applicant that proposes to construct or operate within the commonwealth a
 generating facility or an energy storage system designed for or capable of operating at a gross
 capacity of 100 megawatts or more as defined in section 1 including associated buildings,
 ancillary structures, and transmission interconnections that are not otherwise facilities, may
 petition the board for a certificate of environmental impact and public interest with respect to
 such generating facility or energy storage system.”
        Chapter 164, Section 69K1/2 of the General Laws is further amended by inserting the
 phrase “or energy storage system” after the phrase “generating facility” in each instance that it
 occurs, and replacing the word “facility” in the last sentence of paragraph one with the
 following: “generating facility or energy storage system”.
        SECTION 3.
        Chapter 164, Section L1/2 of the General Laws is hereby amended by inserting the
 phrase “or energy storage system” after the phrase “generating facility” in subsection (a)(1) and
 (a)(2), and by inserting at the end of subsection (a)(3) the following: “and, further provided, that
 no such filing shall be required with respect to an energy storage system.
        SECTION 4.
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        Chapter 164, Section 69O1/2 of the General Laws is hereby amended by striking the first
 sentence and replacing it with the following:
        “As expeditiously as possible, but in no event later than 180 days from the date of filing a
 petition for a certificate pursuant to section 69K.5 with regard to a generating facility or to an
 energy storage system the board shall, by a majority vote, render a decision upon the petition
 either by denying the petition or by granting the petition, or by granting the petition subject to
 such terms and conditions as the board may determine.”
        Chapter 164, Section 69O1/2 of the General Laws is further amended by inserting “or
 energy storage system” after each instance of the phrase “generating facility”.
        SECTION 5
        The General Laws are hereby amended by inserting after chapter 164B the following
 chapter 164C:
        CHAPTER 164C: EXPEDITED PERMITTING FOR ELECTRIC
 DECARBONIZATION INFRASTRUCTURE PROJECTS
        Section 1. Definitions.
        As used in this chapter the following words shall, unless the context clearly requires
 otherwise, have the following meanings:
        (1) “Advisory Opinion”, A written recommendation from a state and local governmental
 authority that would otherwise have jurisdiction over the permittee, or as provided at the request
 of the Office, regarding the siting of a proposed electric decarbonization infrastructure project,
 including its impacts and any methods or conditions to minimize such impacts. Advisory
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 opinions of the state and local authorities are not final decisions and are not subject to judicial
 review or other delays in the Office’s review.
        (2)     “Agency”, an agency, department, board, commission or authority of the
 commonwealth, and any authority of any municipality which is specifically created as an
 authority under special or general law.
        (3)     “Applicant”, an electric company or developer of a RPS Class 1 project, as
 defined in section 11F of Chapter 25A, that applies for a consolidated permit pursuant to this
 chapter.
        (4)     “Best management practices”, broadly accepted industry practices that have been
 determined by the office pursuant to this chapter to be the most effective and practical means of
 avoiding, minimizing, or mitigating adverse environmental impacts caused by electric
 decarbonization infrastructure projects similar to the qualifying project.
        (5) “Board”, the energy facilities siting board.
        (6)     “Consolidated permit”, a permit issued by the office pursuant to this chapter 21P
 and the rules and regulations promulgated by the office.
        (7)     “Cumulative impact analysis”, a written report that assesses whether the proposed
 facility is necessary to meet local energy use needs and that such need cannot be accomplished
 through less harmful means and considers the potential for harmful exposure, public health or
 environmental risk, or other effect occurring in a specific geographical area, including from any
 environmental pollution emitted or released routinely, accidentally, or otherwise, from any
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 source, and assessed based on the combined past, present, and reasonably foreseeable emissions
 and discharges affecting the geographical area;
        (8)     “Department”, the department of environmental protection.
        (9)     “Director”, the director of the office.
        (10)    “Distributed generation”, means as defined section 1 of Chapter 164.
        (11)    “Distribution”, means as defined in section 1 of Chapter 164.
        (12)    “Distributed energy resources”, means as defined in section 1 of Chapter 164.
        (13)    “Electric company”, means as defined in section 1of Chapter 164.
        (14)    “Electric decarbonization infrastructure project”, electric sector infrastructure
 projects that: (i) improve grid reliability, communications, and resiliency; (ii) enable increased,
 timely adoption of and interconnection to renewable energy and distributed energy resources;
 (iii) deploy energy storage and electrification technologies necessary to decarbonize the
 environment and economy; (iv) prepare for future, climate-driven impacts on the transmission
 and distribution systems; (v) accommodate increased transportation electrification, increased
 building electrification, and other potential future demands on distribution, interconnection and,
 where applicable, transmission systems; (vi) accelerate the retirement of fossil fuel infrastructure
 assets including natural gas distribution systems; or (vii) otherwise facilitate or expand the
 commonwealth’s capacity to realize its statewide greenhouse gas requirements and goals.
        (15)    “Electric-sector modernization plan”, a plan required by and approved pursuant to
 section 92B of Chapter 164 of the General Laws.
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         (16)       “Energy storage system”, means as defined in section 1 of Chapter 164.
         (17)       “Environmental impact report”, means as defined in section 62B of chapter 30.
         (18) “Environmental justice community advocate”, the environmental justice community
 advocate established under Section 14 of this chapter.
         (19)       “Executive office”, the executive office of energy and environmental affairs.
         (20)       “Generation facility”, means as defined in section 1 of Chapter 164.
         (21)       “Host community”, any municipality within whose jurisdictional boundaries a
 qualifying project is proposed.
         (22)       “Municipality”, a city, town, or other political subdivision of the commonwealth.
         (23)       “Non-renewable energy”, means as defined in section 1 of Chapter 164.
         (24)       “Office”, the electric decarbonization infrastructure permitting office created by
 this chapter.
         (25)       “Permittee”, an electric company that has received a consolidated permit pursuant
 to this chapter.
         (26)       “Qualifying project”, an electric decarbonization infrastructure project
         (27) “Ready for load date”, the first date when the applicant can operate the project at the
 proposed capacity.
         (28)       “Renewable energy”, means as defined in section 1 of Chapter 164.
         (29)       “Secretary”, the secretary of the executive office.
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        (30)    “Standard conditions”, permit conditions designed to avoid, minimize, or mitigate
 potential adverse environmental impacts from the siting, design, construction, and operation of
 electric decarbonization infrastructure projects, which are codified in the office’s regulations and
 shall be applicable to all projects that receive a consolidated permit pursuant to this chapter 21P.
        (31)    “Special conditions”, permit conditions deemed necessary by the office to avoid,
 minimize, mitigate, or offset any potential significant site-specific adverse environmental
 impacts that may be caused or contributed to by the siting, design, construction, or operation of a
 qualifying project and are unable to be addressed by standard conditions and best management
 practices.
        (32) “Total project costs”, all project costs incurred by the applicant up to the ready for
 load date.
        (33)    “Transmission”, means as defined in section 1 of Chapter 164.
        Section 2. Establishment of Office; Authority.
        (a)     No later than 90 days after the enactment of this chapter, the board shall establish
 the office, consisting of a director appointed by the board and such staff as are necessary to
 undertake the duties of the office under this chapter.
        (b)     The office shall exercise its authority by and through the board and director as
 specified in this chapter. The director and staff shall collectively have expertise in electric
 sector decarbonization, permitting requirements for electric infrastructure projects, technical and
 engineering expertise in electric decarbonization infrastructure projects, community engagement
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 and environmental justice policy, and such other areas as are necessary to carry out the purposes
 of this chapter.
         Section 3. Funding of the Office.
         (a)        The office shall establish fees for any review of an application for a consolidated
 permit under this chapter or a violation of this chapter or regulation promulgated hereunder.
 Such fees shall be set such that they are reasonably expected to cover such reviews and the costs
 of salaries, services, equipment or other expenses that are incurred by the office including the
 salaries of the director and all staff, during such review. The application fee shall be sufficient to
 pay for an expert independent of the applicant or applicants to investigate, evaluate and render an
 opinion on the appropriateness and need of the site or sites proposed by the applicant or
 applicants, on any site or sites alternative to those proposed by the applicant or applicants and on
 compliance with standard conditions and any special conditions applicable to the project and the
 site. Such an expert shall be engaged by the office unless there is no objection to the proposed
 site or sites by any person during the public comment period and in any event at the request of
 any other person who timely filed comments during the public review process or of any other
 person who timely filed comments during the review of a consolidated permit and who can
 demonstrate substantial adverse impact from the issuance or denial of a consolidated permit
 unique from any such impacts on the general public.
         (b)        There shall be established and set up on the books of the commonwealth a
 separate fund. The office shall be the trustee of the fund and shall expend monies to finance
 operational activities of the office. The fund shall be credited any appropriations, bond proceeds
 or other monies authorized by the general court and specifically designated to be credited
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 thereto, application fees for permits issued under this chapter and such additional funds as are
 subject to the direction and control of the office. All available monies in the fund that are
 unexpended at the end of each fiscal year shall not revert to the General Fund and shall be
 available for expenditure in the subsequent fiscal year. The office shall record all expenditures
 made by the office on the Massachusetts management and accounting reporting system
 according to regulations established by the state comptroller.
        (c)       The office shall, for the purposes of compliance with state finance law, operate as
 a state agency as defined in section 1 of chapter 29 and shall be subject to the provisions
 applicable to agencies under the control of the governor including, but not limited to, chapters 7,
 7A, 10 and 29; provided, however, that the comptroller may identify any additional instructions
 or actions necessary for the office to manage fiscal operations in the state accounting system and
 meet statewide and other governmental accounting and audit standards. Unless otherwise
 exempted by law or the applicable central service agency, the office shall participate in any other
 available commonwealth central services including, but not limited, to the state payroll system
 under section 31 of said chapter 29 and may purchase other goods and services provided by state
 agencies in accordance with comptroller provisions. The comptroller may chargeback the office
 for the transition and ongoing costs for participation in the state accounting and payroll systems
 and may retain and expend such costs without further appropriation for the purposes of this
 section. The office shall be subject to section 5D of chapter 29 and subsection (f) of section 6B
 of chapter 29.
        (d)       In addition to the foregoing, the office shall annually seek funding from state
 appropriations to fund a dedicated reviewer at the Massachusetts Historical Commission who
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 shall conduct reviews of qualifying projects pursuant to section 106 of the National Historic
 Preservation Act, when applicable.
        (e) An electric company shall provide to each municipality within its service area a list of
 all electric decarbonization infrastructure projects and their sites under consideration within that
 municipality and abutting municipalities, which list shall be updated every six months. The
 municipality shall within 90 days of receipt of the list provide to the electric company any
 objections to each such project or site. Upon receipt of any such objections, the municipality and
 electric company shall undertake to resolve such objections within 90 days thereafter. No
 application by the electric company in its own name or by any person acting for, at the behest of,
 in coordination with, as a proxy fo