22 July, 2022
On Thursday, the Massachusetts State Senate passed a $4.57 billion spending package to promote economic development in the Commonwealth and give relief to residents facing the continued effects of the COVID-19 pandemic and economic turbulence. The bill includes a broad-based tax relief package that will result in permanently lower taxes for many households and hundreds of thousands of residents receiving rebates from the state. The bill targets investment to sectors such as health care, housing, early education, agriculture, and tourism, which have been impacted by economic uncertainty. The bill also pursues economic growth by investing in climate resiliency, public lands, and clean energy.
“With this legislation, we are taking concrete steps to improve the quality of life for our residents, make Massachusetts more competitive nationally, tackle the dual threats of inflation and economic uncertainty, and build our economy of the future,” said Senate President Karen E. Spilka (D-Ashland). “Our tax relief package will make a meaningful impact for many Massachusetts residents and working families, and the rebates continue our commitment to putting money back in residents’ wallets. I’m particularly proud of our investments to stabilize the early education and child care sector, as well as the new funding we put towards higher education scholarships in high-demand fields like nursing, early education, special education, and cybersecurity. I would like to thank the entire Senate for their many contributions to this important legislation, especially Chairs Rodrigues, Lesser and Hinds.”
“This comprehensive economic development package passed by the Senate is a thoughtfully crafted and multi-faceted proposal that further strengthens our Commonwealth’s economic foundation as we emerge from the shadows of the pandemic during a time of uncertainty,” said State Senator Michael J. Rodrigues (D-Westport), Chair of the Senate Committee on Ways and Means. “Making an array of strategic investments to support critically important sectors like health care, housing, human services, early education, agriculture, and clean energy, while providing over $1 billion in targeted tax relief for middle class-households, low-income taxpayers, families with children and dependents, renters, and seniors, this bill will help our residents make ends meet, support the needs of our communities and build long-lasting economic security in all corners of the state. I want to thank Senate President Spilka for her leadership and steadfast support, Senators Lesser and Hinds for their meaningful contributions, and my fellow colleagues in the Senate for their input and efforts to further improve the bill.”
“Massachusetts has so much to offer as an innovation hub and education leader in our country, but it’s getting harder and harder to live and work here. Housing prices are skyrocketing, childcare costs are out of control, inflation is climbing, businesses everywhere are coping with supply-chain issues, and families know that their dollar is not going as far as it did only a few months ago,” said Senator Eric P. Lesser (D-Longmeadow), Senate Chair of the Joint Committee on Economic Development and Emerging Technologies. “Today, we passed our economic development bonding bill and tax relief package to bring much-needed financial relief to residents here in Massachusetts. This legislation prioritizes housing, climate resiliency, childcare access, workforce development, downtown revitalization, and the worker of the future. As policymakers, we must be prepared to meet the moment ahead of us and ensure that our Commonwealth continues to be a great place to work and live.”
“These crucial changes to our tax code will create much needed targeted relief to families across the Commonwealth grappling with how to make ends meet,” said Senator Adam G. Hinds (D-Pittsfield), Senate Chair of the Joint Committee on Revenue and Chair of the Senate Committee on Reimagining Massachusetts Post-Pandemic Resiliency. “As prices rise, we need to continue to invest in the people who need it most, including those who make our economy run.”
Tax Relief
This legislation includes $501 million in comprehensive tax relief for lower-and middle-income families, children, seniors, and renters and $510 million in one-time payments to middle-income filers. Notably, $250 in direct relief payments, would be sent in September 2022 to all single-filing taxpayers who earned between $38,000 and $100,000 in 2021, and $500 would be sent to married couples who earned between $38,000 and $150,000 that same year. Businesses would see relief through an investment of $100 million in the state’s Unemployment Compensation Fund.
The bill would further provide permanent tax relief by:
Increasing state matching of the earned income tax credit (EITC) from 30 per cent to 40 per cent of the federal credit, which supports low-income families
Increasing existing child and dependent tax credits from $180 to $310 per child or dependent and removing the cap on the number of eligible children and dependents
Increasing the rental deduction cap from $3,000 to $4,000, supporting renters
Increasing the senior circuit breaker tax credit cap from $1,170 to $2,340, supporting senior citizens and individuals who care for them
Increasing the Housing Development Incentive Program (HDIP) tax credit annual cap from $10,000,000 to $30,000,000, which helps Gateway Cities expand the diversity of available housing and promote neighborhood stabilization
Exempting estates valued under $2,000,000 from the estate tax and eliminating the ‘tax cliff’ by establishing a uniform credit of $99,600
Appropriations
The bill invests $965 million for health and humans services programs, including:
$400 million for hospitals that have become fiscally strained during the pandemic
$250 million for rate increases for human service providers
$195 million for nursing facilities and rest homes
$80 million for Community Health Centers
$22.5 million to reduce gun violence and related trauma throughout the Commonwealth, including:
$5 million for a grant program to support school safety infrastructure improvements
$2.5 million to provide behavioral health-related supports and resources in schools to reduce instances of gun violence
$17.5 million for reproductive and family planning services
It also invests $610 million for environmental and climate resiliency initiatives, including:
$150 million for the Massachusetts Clean Water Trust
$125 million for the conservation and improvement of publicly owned lands, and otherwise conserved lands
$125 million for the Massachusetts Clean Energy Center to accelerate the transition to and expansion of renewable energy
$100 million for ports and port infrastructure to support the clean energy economy
$100 million to promote and accelerate the adoption of electric vehicles, through the MOR-EV program as well as expanded electric vehicle charging infrastructure
It further invests $400 million for promoting the production of affordable housing, including:
$150 million to support the production of workforce housing
$150 million for the Affordable Housing Trust Fund
$100 million for the CommonWealth Builder Program
The bill also includes a significant investment of $150 million for early education and care providers through the continuation of the Commonwealth Cares for our Children (C3) stabilization grant program.
The bill also creates a new scholarship program, funded at $50 million, to promote the attainment of debt-free higher education for students pursuing careers in high-demand industries, such as health care, education, and cybersecurity.
Bond Authorizations
The bill authorizes $1.4 billion in capital expenditures, including:
$400 million for the MassWorks Infrastructure Program, which provides grants to municipalities and other public entities for infrastructure project
$373 million for the Massachusetts Technology Park Corporation (MassTech), which strengthens the competitiveness of the tech and innovation economy in Massachusetts by driving strategic investments and partnerships, including:
$75 million for a robotics capital program
$25 million for a program to support minority owned and operated start-ups
$268.8 million for housing related investments, including:
$95.2 million for housing authority capital improvements
$73.1 million for the Housing Stabilization and Investment Trust Fund
$29.5 million for the Housing Innovations Trust Fund
$11.7 million for the development of low- and moderate-income housing
$50 million for matching funds to improve broadband infrastructure
$50 million for a program to revitalize underutilized properties
$30 million for the Massachusetts Manufacturing Innovation Initiative, which supports innovation within the state’s manufacturing industry, including by offering technical assistance to manufacturers and attracting talent from outside of the state
$24 million for the Scientific and Technology Research and Development Matching Grant Fund
$10 million for the Rural and Small-Town Development Fund
$10 million for Tourism Destination Development Grants
$5 million for community planning grants
Additional Policy Items
The bill also establishes the following new programs and institutions:
A Center for Employee Ownership within the Massachusetts Office of Business Development (MOBD), as well as an advisory board on employee ownership to advise the Governor and the director of the Massachusetts Center for Employee Ownership on issues and policy matters pertaining to employee involvement and ownership
A Cybersecurity Center and a Center for Advanced Manufacturing within the Massachusetts Technology Collaborative
A commission on agricultural equity to develop recommendations for supporting racially equitable investments, policies and practices for farmers
A trust fund for the Healthy Incentives Program (HIP), which codifies into law a program that allows people to use SNAP benefits to buy healthy, local fruits and vegetables
A program in the Department of Agricultural Resources to assist farmers and inform them about state programs and funding opportunities
The bill directs the Massachusetts Emergency Management Agency (MEMA) to consider and develop plans for supporting agricultural, seafood and processed food production in its emergency preparedness planning efforts and also creates a study and report on the feasibility of the sale, lease, transfer or other disposition of the Hynes Convention Center.
Amendments
A number of notable amendments were adopted during the floor debate, including those that would:
Assist small business owners by creating one simplified portal where businesses can apply for state grants
Provide Massachusetts consumers with a ‘right to repair’ their cell phones, by requiring manufacturers to make the documentation, tools, and parts needed to repair devices available to consumers and independent repair shops
Support the Commonwealth’s veterans by increasing the annual payment for disabled veterans and their surviving families to $3,000
Establish a Hunger-Free Campus Initiative to address food insecurity on college campuses
Support families that have experienced housing insecurity by allowing certain tenants who have been evicted to seal the records of their eviction case
Ensure students can obtain academic transcripts for the courses they have completed and paid for, rather than having their entire transcript withheld for outstanding fees
Expand the ability of homeowners to add accessory dwelling units to their property as an innovative way to address the housing crisis
Allow restaurants to offer ‘happy hour’ discounts on alcoholic beverages if a town approves this policy via local option
Allow state candidates for public office to use campaign funds for expenses related to child care services
Expand the ciders that are eligible for the reduced cider tax rate, by raising the ABV limit from six per cent to eight and a half per cent
Empower farmer distilleries to sell wine and distilled products
A version of this legislation having previously passed the House of Representatives, a conference committee will now be appointed to address any differences between the two bills.
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MASSACHUSETTS LEGISLATURE PASSES MAJOR CLEAN ENERGY LEGISLATION
(BOSTON – 07/21/2022)The Massachusetts Legislature today passed a sweeping clean energy bill, An Act driving clean energy and offshore wind. The legislation bolsters green transportation, green buildings, and clean power production, including offshore wind, solar, storage and networked geothermal, while creating thousands of new jobs and economic benefits in the process. This bill builds upon the Next Generation Climate Roadmap bill, which was passed earlier this legislative session and overhauled the state’s climate laws by putting Massachusetts on a path to reach net-zero limit on greenhouse gas emissions by 2050.
“At the beginning of this legislative session, we codified into law the goal of reaching net zero carbon emissions in Massachusetts by 2050. Today, and as the end of the session nears, the Legislature has again passed historic climate legislation that brings the Commonwealth closer to achieving that ever-important goal,” said House Speaker Ronald J. Mariano (D-Quincy). "This legislation will make Massachusetts a national leader in energy generated from offshore wind, while creating thousands of new jobs in the process. I want to thank Chairman Jeff Roy and each member of the conference committee, my colleagues in the House, as well as Senate President Karen Spilka and our partners in the Senate for prioritizing the well-being of our climate, and for working diligently to get this done.”
“From searing heat to rising seas, climate change poses a very real threat to Massachusetts residents,” said Senate President Karen E. Spilka (D-Ashland). “To leave future generations with a livable planet, Massachusetts must take on the role of a national and international leader in the fight against climate change. Reaching our goal of net-zero carbon emissions by 2050 will require us to take the important steps outlined in this legislation to expand our clean energy capacity, encourage the adoption of electric vehicles, reduce emissions from buildings, and foster high-paying, green jobs for our workforce. I’d like to thank my House partner, Speaker Mariano, Senators Barrett and Creem and all of the conferees for their focus and continued determination to bring this legislation over the finish line, as well as to all of the Senators who played a role in this bill's creation and passage.”
“Massachusetts has an opportunity to meet the urgency of the climate crisis through our nation-leading innovation, workforce, and energy resources,” said Representative Jeffrey N. Roy (D- Franklin), House Chair of the Joint Committee on Telecommunications, Utilities and Energy. “This timely and comprehensive piece of legislation is carefully calibrated to provide a portfolio of robust clean energy, including offshore wind, and decarbonize our largest-emitting industries, all while attracting a world-class supply chain, intensive workforce training initiatives, and the investment necessary to prepare our electric distribution system for the energy needs of the future.”
“The changes we’re after make for an unusually long list, because they track the lengthening list of concerns our constituents bring to us,” said Senator Michael J. Barrett (D-Lexington), Senate Chair of the Joint Committee on Telecommunications, Utilities and Energy. “The climate problem takes many forms, and with this bill we respond in kind. People worried about the issue will find grounds for hope here.”
Offshore wind
To incentivize the development of the offshore wind industry in Massachusetts, this legislation establishes a Massachusetts Offshore Wind Industry Investment Program, administered by the Massachusetts Clean Energy Center (MassCEC), consisting of annual tax incentives, grants, loans, and other investments through the fund, and assistance from MassCEC in accessing other state or federal economic investment programs. It also creates the Massachusetts Offshore Wind Industry Investment Trust Fund, which can be used to promote the manufacture, fabrication, and assembly of domestic supply chain components of the offshore wind industry; stimulate increased financing for permanent manufacturing facilities; advance clean energy research, technology, and innovation, and; prepare individuals for offshore wind careers by supporting workforce training at a range of educational institutions and through regional employment boards.
With the goal of making the Massachusetts offshore wind bidding process more competitive, the legislation modifies the price cap to set clear criteria to allow for offshore wind project proposals that are cost-effective and promote economic development in the Commonwealth. Under this legislation, the price cap will be removed if three or more offshore wind developers submit bids, and if less than three companies bid a modified price cap would remain in place. Preference will be given to bids that invest in local manufacturing, provide employment opportunities for underrepresented populations, and mitigate environmental impacts. Ultimately, a contract would only be approved if deemed cost-effective and beneficial to ratepayers.
The legislation also establishes a commercial fisheries commission to provide input on best practices for avoiding, minimizing, and mitigating impacts to wildlife related to offshore energy generation and transmission.
“I'm proud of the work that Massachusetts has done today, once again ensuring we are at the forefront of the fight against climate change. This legislation prioritizes offshore wind generation, grid preparedness, electric vehicle incentives, and innovation and job development in the clean energy sector,” said Representative Tackey Chan (D-Quincy), House Chair of the Joint Committee on Consumer Protection and Professional Licensure. “I want to thank Chair Roy, Minority Leader Jones, and my fellow conferees for working together to move Massachusetts further into the 21st century green economy.”
“We began this session by enacting an ambitious law that requires the Commonwealth to reduce emissions 50 percent by 2030 and to achieve net-zero emissions by 2050. Now, less than 18 months later, we have passed another landmark climate bill, a far-reaching piece of legislation that touches multiple sectors—transportation, electricity, buildings, and natural gas—and sets us on a path to reach those emissions-reduction obligations,” said Senate Majority Leader Cynthia Creem (D-Newton), chair of the Senate Committee on Global Warming and Climate Change. “Thank you to President Spilka for making climate change a Senate priority, to Senator Barrett and his staff for their tireless work to produce this impressive bill, and to all my fellow conferees for coming together to meet the urgency of the climate crisis.”
Solar energy
To support the advancement of solar power, the bill permits agricultural and horticultural land to be used to site solar panels as long as they do not impede the continued use of the land for agricultural or horticultural use, eliminates the so-called ‘donut hole’ for on-site solar energy net metering to promote residential solar, and loosens the so-called single parcel rule to help expand solar on sites where it already exists.
In addition to wind and solar power, the bill addresses other innovative sources of clean energy such as fusion energy and geothermal power. Acknowledging the harmful health and environmental impacts of utility-scale biomass power plant facilities, this legislation removes biomass from the list of energy-generating sources that are allowed to receive certain state incentives for generating clean electricity. To ensure that the Commonwealth has adequate storage systems to accommodate increasing amounts of clean energy that Massachusetts will be adding to its energy portfolio, this bill directs a study of how to optimize the deployment of long-term energy storage systems.
“The climate bill we have passed today provides a blueprint for reducing greenhouse gas emissions in Massachusetts by making critical investments in the offshore wind industry and offering additional incentives to promote more clean energy jobs and research,” said House Minority Leader Bradley H. Jones, Jr. (R-North Reading). “I was honored to serve on the conference committee that negotiated the final compromise language. While this is not a perfect bill, it does move the Commonwealth closer towards meeting its goal of achieving net-zero emissions by 2050.”
“This legislation responds to a matter of urgency for our state and our world, and does so by creating the robust infrastructure needed to domesticate the alternative energy production we need here, where it can provide not only the benefits of reducing carbon emissions, but also create jobs and economic opportunity for our ports and our residents,” said Senate Minority Leader Bruce Tarr (R- Gloucester). “Passing this bill is important, but we must also not lose the focus we need to source greater supplies of clean energy, store and manage that energy, and deliver it to consumers who depend on it. The bill also takes important steps to ensure that in reaching for the next horizons of alternative energy, we do not jeopardize our irreplaceable commercial fishing industry, which provides food for people here and abroad.”
Grid readiness
The legislation also modernizes Massachusetts’ electrical grid and energy storage infrastructure. It requires utility companies to proactively upgrade the transmission and distribution grid to improve reliability and resilience and accommodate the anticipated significant shift to renewable forms of energy.
Green transportation
As the transportation sector is the largest source of fuel emissions in Massachusetts, the bill takes steps to encourage the use of electric vehicles, including expanding and codifying the state’s MOR-EV electric vehicle incentive program into statute, which provides rebates to individuals who purchase electric vehicles.
Under the bill, the rebate amount will increase by $1,000, to $3,500 for passenger cars and light-duty trucks. Moreover, electric vehicle purchasers who trade in their emission-producing vehicles will be eligible for an additional incentive of $1,000. The program may include a point-of-sale rebate model for individual purchases that offers consumers savings at the point of purchase or lease. The bill also makes used vehicles eligible for rebates. Further, the bill directs the Department of Energy Resources (DOER) to conduct an outreach campaign to promote awareness about the MOR-EV program among consumers and businesses in underserved and low-income communities, as well as in communities with high proportions of high-emission vehicles.
To expand access to electric vehicle charging stations, this bill convenes an interagency coordinating council to develop and implement a charging infrastructure deployment plan in an equitable and comprehensive manner.
The Department of Public Utilities (DPU) would be required to set vehicle electrification and greenhouse gas emission requirements for electric vehicles for transportation network companies. In addition, to ensure that zero-emission vehicle charging remains affordable for consumers, the bill requires all electricity companies to submit proposals to DPU for how they will offer reduced electricity rates for consumers who charge their zero-emission vehicles at off-peak times.
Finally, the bill takes historic steps to address emissions that come from MBTA bus fleets. Starting in 2030, this bill requires every passenger bus that is purchased or leased by the MBTA to be a zero-emission vehicle. By the end of 2040, the MBTA will be required to operate exclusively zero-emission vehicles. Underserved and low-income communities would be prioritized for the equitable deployment of these zero-emission buses.
Building decarbonization
To tackle the difficult issue of emissions from the building sector, the bill creates a 10-municipality demonstration project allowing all-electric building construction by local option. Participating municipalities must receive local approval before applying into the demonstration project. The measure has two important provisos: first, each community must first meet certain affordable housing or multifamily development thresholds; and second, each must exempt life sciences labs and health care facilities from the all-electric requirement.
The bill makes targeted enhancements to the Mass Save program, which provides rebates and incentives for owners and renters related to efficient appliances and other home energy improvements. Under the bill, priority for Mass Save projects will be given to those that maximize net climate, environmental, and equity impacts. Beginning in 2025, Mass Save funds will also be limited in most instances from going to any fossil fuel equipment.
This bill requires DPU to conduct an adjudicatory proceeding prior to approving any company-specific plan under the DPU’s future of heat proceedings. In addition, the bill requires DPU to convene a stakeholder working group to develop regulatory and legislative recommendations for how Massachusetts can best align the Commonwealth’s gas system enhancement program with the state’s 2050 net-zero goal. The working group must submit its final recommendations to the Legislature by July 31, 2023.
Having been passed by the House and Senate, An Act driving clean energy and offshore wind now goes to Governor Baker for his signature.
