Senator Pacheco secures two major climate amendments in Senate economic development bill

Amendments target emissions from transportation and the built infrastructure

Boston – Dean of the Massachusetts Senate, Marc R. Pacheco, announces that the Senate has passed a comprehensive economic development bill featuring two major climate amendments sponsored by Senator Pacheco.

Senator Pacheco sponsored two amendments to S.2856, An Act relative to strengthening Massachusetts’ economic leadership, both focused on combating the climate crisis by supporting Massachusetts efforts to meet its net zero emissions requirement by 2050.

“These two amendments deal with issues that I have long fought for and take crucial measures towards our Commonwealth meeting its 2050 emissions requirements,” said Senator Pacheco. “While I am pleased to see these amendments adopted in this bill, I will continue to advocate for critical measures like these as we face the existential threat of our climate crisis and the devastating impacts it will have on Massachusetts.”

Amendment 136, Establishing a Clean Fuel Standard, will mandate the Department of Energy Resources (DOE) to create a clean fuel standard aimed at significantly reducing carbon emissions from transportation fuels. DOE will establish rules, regulations, and procedures necessary for implementing the clean fuel standard.

DOE will ensure compliance and offset implementation by using a market-based mechanism for generating and trading credits awarded to fuel providers with lower-carbon-intensity fuels, which could be traded to offset carbon deficits. The credit mechanism will ensure providers are granted some flexibility in meeting the carbon reduction targets as they develop and adapt to new clean fuel standards.

Public entities generating credits, including utilities and state agencies, will be required to invest a percentage of their credit value into clean energy and transportation projects in disadvantaged communities to bolster existing incentives, like building out the electric vehicle infrastructure, along with supporting environmental justice efforts in the communities that need it the most.

“In the Massachusetts Climate Report Card released by the Office of Climate Innovation and Resilience last year, the transportation sector was credited with making up 37% of greenhouse gas emissions in Massachusetts, making it the largest source of our emissions,” said Senator Pacheco. “With that being the case, this amendment is critical to addressing the substantial impact this sector has on our overall emissions to meet the requirements we have set for Massachusetts.”

Amendment 139, Establishment of the Clean Energy and Climate Action Fund, will create a fund to facilitate energy-efficient retrofits and upgrades that will contribute to meeting Massachusetts climate action requirements by reducing emissions from the built environment.

The fund will be specifically credited with various sources of funding, including appropriations, bond proceeds, federal grants, loans, and private donations that will go toward projects that will not just reduce emissions but also lower the energy costs for ratepayers and boost the clean energy economy.

“This fund will expedite the crucial process of reducing emissions from our built environment, which makes up 35% of Massachusetts greenhouse gas emissions,” said Senator Pacheco. “Putting this fund in the hands of the Massachusetts Clean Energy Technology Center will ensure that funds will be distributed responsibly, efficiently, and effectively to maximize project impact.”

The amendment calls for the Massachusetts Clean Energy Technology Center to use their expertise in clean energy technology and project management to promulgate regulations governing the use of the funds, along with administering them.

“Along with its environmental impact, this action fund also stimulates the clean energy economy by incentivizing the adoption of energy-efficient technologies and services while also creating demand and spurring innovation,” said Senator Pacheco.

With separate versions of the bill having passed the Senate and the House of Representatives, the two branches will now reconcile the differences.