Proposed Amendments to Massachusetts Energy Bill
An issue that has received much attention on both the state and federal levels is the creation of a long range energy policy. Here in Massachusetts, both the House and Senate have passed legislation to promote renewable energy resources and energy efficiency. Because there are two competing bills, a conference committee has been formed to create a composite bill.
It has been our goal to achieve 20 percent renewable power resource usage by the year 2020 by allowing municipalities to construct, own and operate small renewable energy generation sources.
Some elements that are certain to be in the final version include measures to promote local generation of renewable energy, such as solar panels and wind turbines, by making them more cost-effective for communities and municipalities. It will also create a framework for utilities to offer long term contracts to renewable energy developers, and offers resources to help communities plan and implement energy saving or renewable energy projects.
The bill is indicative of the Legislature’s commitment to protecting the environment for future generations. However, we may not be going far enough to help individuals. With oil near $100 a barrel and gas prices rising, many people are struggling to pay their home heating bills, and communities throughout the Commonwealth are feeling the financial pressure from sky-rocketing energy costs.
To tackle some of these concerns, the Senate Republican Caucus offered several amendments to protect communities and consumers. These amendments use government incentives to encourage people to change their behavior and become more environmentally conscious.
Here are just a few of the amendments that were proposed:
- ALTERNATIVE FUEL VEHICLES –This amendment would provide a sales tax exemption for purchases of alternative fuel vehicles that meet certain fuel mileage ratings, fuel efficiency standards and other criteria. The exemption would provide savings to consumers while offering them an incentive to drive a low-emission hybrid vehicle.
- HOME HEATING DEDUCTION – This amendment would allow taxpayers to deduct up to $800 on their state income taxes for eligible heating fuel costs incurred between November 21, 2007 and March 21, 2008. Individuals with income of less than $50,000 and families with income up to $75,000 would be eligible for relief.
- STATE/MUNICIPAL PARTNERSHIP –This amendment provides an incentive for cities and towns to develop plans to reduce energy consumption by 20 percent over a 5-year period. Subject to appropriation, communities that adopt such a plan and experience a one-year increase in energy costs of greater than 10 percent would be eligible for a state grant to cover half the cost of the increase for that year.
- MUNICIPAL FUEL RELIEF – This amendment would exempt police cruisers, fire engines, public works trucks and other city or town-owned vehicles from the state’s 21 cents per gallon fuel excise tax. This exemption would save cities and towns an estimated $6.6 million to $9.8 million annually.
- CONSUMER SURCHARGE SUNSET – This amendment would retain the original deregulation law’s provisions sunsetting the mandatory surcharge of $0.0025 per kilowatt-hour paid by electricity consumers not serviced by a municipal light plant on December 31, 2012. This extends the surcharge indefinitely, while adding an additional surcharge for gas customers, which this amendment repeals.
- MUNICIPAL AND RESIDENTIAL LOANS – This amendment allows cities and towns to borrow money at a low interest rate for energy conservation, alternative energy or renewable energy improvements to public buildings. Additionally, it provides low-interest loans to homeowners for energy conservation, alternative energy or renewable energy improvements to residential properties which would be repaid over a 20 year period in the form of a betterment tax.
I agree with my Senate colleagues that the state can be an influence in achieving energy efficiency and partner with municipalities to reach this common goal. Unfortunately, some of my colleagues have missed a clear opportunity to help everyday people to conserve energy and solve environmental changes. Instead, they ignored the financial struggles of those trying to pay high energy bills and allowed the long-term solution of changing individuals’ behavior slip through our fingers. We must do more to find real solutions to our environment.
I will be working to help the state pursue environmentally-friendly policies, without compromising our competitiveness or harming local businesses and consumers in the process.