Massachusetts Governor Maura Healey signed Senate Bill No. 2967, “An Act Promoting a Clean Energy Grid, Advancing Equity, and Protecting Ratepayers,” into law on November 20, 2024. This law reforms the siting and permitting of clean energy facilities; expands the electric vehicle (EV) charging network; provides battery storage incentives, solicitations, and procurements; and provides additional support for offshore wind, among other things.
Siting and Permitting
The law seeks to expedite the siting and permitting of clean energy infrastructure and clean energy projects by consolidating the review process for solar, wind, and battery storage projects.
Large projects (25 megawatts or more of generation or 100 megawatt hours of storage) that previously required state, regional, and local permits will be consolidated into a single permit from the state Energy Facilities Siting Board, and the decision must be issued within 15 months to expedite the siting of clean energy projects.
Small projects (less than 25 megawatts of generation or less than 100 megawatt hours of storage) that previously required multiple local permits will be consolidated into a single permit issued by the municipality, and the decision must be issued within 12 months. A local government could file a request for the Energy Facilities Siting Board to review a small project if they do not have the resources to conduct the review within 12 months.
The law also creates new offices, including the Office of Environmental Justice and Equity, the Office of Public Participation at the Energy Facilities Siting Board, and the Division of Siting and Permitting at the Department of Energy Resources, to enhance community input and ensure an equitable review of the projects.
The Energy Facilities Siting Board must first consider maximizing the efficiency of current infrastructure through the use of innovative technologies before approving new construction.
The newly created Facility Siting Division within the Department of Public Utilities (DPU) must establish an online clean energy infrastructure dashboard to facilitate public understanding of both recent performance and long-term and cumulative trends and outcomes of clean energy deployment.
Offshore Wind
The law allows for long-term contracts for offshore wind to be 15- to 30-year terms instead of the previous 20-year maximum and may include terms and conditions for renewable energy credits for offshore wind that exceed the term for generation under the contract.
It also directs the Massachusetts Department of Energy Resources (DOER) to review the effectiveness of existing solicitations and procurements and make recommendations regarding the future procurement of clean energy resources for the purposes of ensuring compliance with statewide greenhouse gas emissions limits and labor standards for clean energy projects including offshore wind.
The law requires DOER, in consultation with the DPU and the Massachusetts Clean Energy Center, to issue guidance on how a municipality or group of municipalities with an approved municipal load aggregation plan can enter into a long-term contract to purchase electricity from an offshore wind developer.
The law also expands existing tax credits for offshore wind by lowering job requirements from 200 to 50 full-time employees to be eligible for tax credits and refundable credits for capital investment.
If you have any questions regarding the content of this alert, please contact Paul Corey, partner, at pcorey@barclaydamon.com, or another member of the firm’s Regulatory Practice Area or Energy or Renewable Energy Teams.