Bill > H2909

This bill establishes the "Oil Heat Energy Efficiency Fund" to promote energy efficiency and reduce consumption for residential and commercial customers who use oil heat for space or hot water heating. Starting June 1, 2016, a systems benefit assessment of two and a half cents per gallon will be placed on all gallons of oil heat fuel sold for residential or commercial use in Massachusetts, with certain exemptions for fuel used by railroads, utilities, farmers, and the military. This assessment will be collected by wholesale distributors and deposited into the newly created fund. The fund will be administered by the commissioner of energy resources, in coordination with the secretary of administration and finance, and overseen by the Energy Efficiency Advisory Council (EEAC). The money in the fund will be used exclusively for designing, marketing, and providing cost-effective energy efficiency programs, including incentives and services for demand-side management, such as replacing or upgrading heating systems, insulation, and air sealing. At least 20 percent of the funds must be spent on comprehensive low-income residential oil heat energy efficiency and education programs. The bill also outlines requirements for program administrators to develop investment plans every three years, which will be reviewed for cost-effectiveness, and mandates annual reports on the fund's use and program outcomes.