Bill > S2263

This bill establishes a Clean Heat Standard in Massachusetts designed to reduce greenhouse gas emissions in the thermal sector by creating a system of tradeable "clean heat credits." The bill defines obligated parties as natural gas utilities and heating fuel sellers who must retire a specific number of clean heat credits annually to meet emission reduction goals. Clean heat credits can be obtained by implementing approved clean heat measures like heat pumps, geothermal systems, and heat pump water heaters, with a strong emphasis on equitable implementation. The program specifically requires that at least 20% of clean heat credits must come from low-income customers and another 20% from moderate-income customers, ensuring that vulnerable populations are not disproportionately burdened by the transition. The Massachusetts Department of Environmental Protection will oversee the program, establish credit requirements, designate a default delivery agent, and create an Equity Advisory Group to help guide implementation. The bill includes enforcement mechanisms, such as financial penalties for non-compliance, and requires annual reporting to legislative committees about the program's progress and equity outcomes. Importantly, the clean heat credits must represent actual greenhouse gas reductions in Massachusetts and cannot include switching between fossil fuels or using renewable natural gas or hydrogen.

Transportation and Infrastructure

https://malegislature.gov/Bills/194/S2263