AN ACT PROMOTING
LOCAL ENERGY INVESTMENT &
AN ACT TO PROMOTE
GREEN INFRASTRUCTURE &
REDUCE CARBON EMISSIONS
The Problem: Massachusetts has an old electrical grid that was built for
This presents challenges for distributed generation from solar and wind,
net metering, battery storage, and other modern technologies.
The grid modernization policies of DPU and ISO New England are not
moving fast enough, and our grid is becoming more antiquated every year
compared to new technologies.
GRID MODERNIZATION: THE PROBLEM
Insufficient progress on grid modernization will slow the growth of
renewable energy generation in Massachusetts.
Currently, about 18% of the electricity Massachusetts generates comes
from renewables and hydro, while over 65% comes from burning
imported fossil fuels (mostly natural gas).
Today’s grid cannot support the technologies we need to be using to get
to 100% renewable.
GRID MODERNIZATION: THE PROBLEM
The Solution: An Act Promoting Local Energy Investment & Infrastructure
H.2808 creates a new approach to grid planning that prioritizes local
The bill establishes a Grid Modernization Consumer Board to hold utilities
accountable and make sure they are meeting DPU guidelines and
working toward transmission, reliability, and distributed generation goals.
Utilities will be required to submit Grid Modernization Plans every three
years, and stick to those plans.
GRID MODERNIZATION: LEGISLATION
Carbon pricing is a method
of addressing climate
change by assigning a
monetary cost to a unit of
CARBON PRICING: A DEFINITION
Carbon pricing is a policy instrument that captures the external costs of
carbon emissions and ties them to their sources in the form of a price per
unit on carbon dioxide (CO2) emissions.
External costs: Climate change, air pollution, health care costs
Carbon pricing disincentivizes the use of fossil fuels and incentivizes the
generation of more renewable energy.
There are a few different types of carbon pricing, including cap-and-trade
and a carbon fee.
CARBON PRICING: HOW IT WORKS
An Act to Promote Green Infrastructure & Reduce Carbon Emissions
The bill puts an initial fee of $20/ton on carbon dioxide, and raises it to
$40/ton over 4 years.
If Massachusetts doesn’t meet our emissions targets, the fee continues
to rise by $5/ton per year.
70% of the fees collected go back to consumers and employers, with
built-in protections for low and moderate income households.
CARBON PRICING: LEGISLATION
H.2810 rebates 70% of fees back to consumers and employers.
Low and moderate income households receive higher rebates, as do rural
residents more dependent on cars.
Employer rebates are be based on their number of employees, and
businesses that face strong competitive pressures from outside the state
could receive higher rebates.
Consumers and employers can spend the rebate on anything, but we hope
they will spend some of it on things like rooftop solar or electric vehicles.
CARBON PRICING: REBATES
H.2810 uses 30% of the revenue collected for a Green Infrastructure
Fund, and would raise about $300 million in its first year.
The Fund would be spent on green infrastructure and renewable energy
Climate change resiliency
Large-scale solar and wind projects
Communities with median incomes in the bottom 33% would receive at
least 40% of the funds.
CARBON PRICING: GREEN INFRASTRUCTURE FUND
Carbon pricing has been in practice all over the world for decades, and
the data shows that it reduces emissions and has economic benefits.
Finland was the first country to establish a carbon fee in 1990, and
since then about two dozen countries have followed.
Denmark has cut their emissions by more than one-third since 1992,
with similar GDP growth to the United States.
A Harvard University study estimates a carbon fee in MA would save
hundreds of lives and $2.9 billion in health care costs by 2040.1
CARBON PRICING: EVIDENCE
1.Air Quality and Health Co-Benefits of a Carbon Fee-and-Rebate Bill. Harvard University, 2017.
AN ACT PROMOTING LOCAL ENERGY INVESTMENT
& INFRASTRUCTURE MODERNIZATION
AN ACT TO PROMOTE GREEN INFRASTRUCTURE
& REDUCE CARBON EMISSIONS