Bill > S2403

This bill establishes new sections within Chapter 25A of the General Laws to promote energy efficiency in the oil heat industry. It defines terms such as "fuel oil industry," "No. 1 distillate," "No. 2 dyed distillate," "oil heat fuel," and "program administrator." Beginning June 1, 2016, a systems benefit assessment of two and one-half cents ($.025) per gallon will be levied on all gallons of oil heat fuel sold for residential or commercial use in Massachusetts, with certain exemptions for uses like vessels, railroads, utilities, farmers, and the military. These collected funds will be managed by the commissioner of energy resources and disbursed to program administrators to design, market, and provide cost-effective energy efficiency programs for customers using oil heat for space or hot water heating. A minimum of 20 percent of these funds must be dedicated to low-income residential oil heat energy efficiency and education programs, to be implemented through existing low-income weatherization and fuel assistance networks. The Energy Efficiency Advisory Council will oversee these programs, advise the department on all aspects of oil energy efficiency funds and programs, and establish a target budget and assessment to fund these initiatives. Program administrators will integrate these oil heat energy efficiency programs into their existing investment plans, and programs will be designed to address all energy use in a building comprehensively, utilizing common designs, integrated programs, and a shared pool of vendors and contractors. Financial incentives may include low or zero-interest loans, direct rebates, or other incentives, with specific provisions for efficient new oil heating systems. The Energy Efficiency Advisory Council will also solicit input from the oil heat industry, consumer groups, and low-income advocacy groups, and will collaborate on an annual report detailing the use of assessment proceeds, program descriptions, consumer savings, cost-effectiveness, energy savings, and greenhouse gas emission benefits.