New MA Energy Policy Signed into Law, Informed by ISE Research

Massachusetts has a new state energy policy enacted with the help of Boston University’s Institute for Sustainable Energy (ISE).   The new policy, signed into law by Governor Charles Baker, calls for the purchase of up to 1600 MW of offshore wind and 1000-1200 MW of onshore renewable energy, including possible hydroelectricity purchases from Canada.  The bill also includes important advancement for energy efficiency in the state, including provisions to finance energy efficiency improvements with special, low-cost bonds issued by municipalities – a form of efficiency financing often called PACE (Property-Assisted Clean Energy).  

Among other sources of input, the ISE was part of a special group that included former senior state officials David Cash and Ann Berwick and a team of consultants led by Brattle Group Principal Judy Chang.  The group reviewed and synthesized all the studies received by the legislature in connection with the bill, formulated recommendations, and testified before a Senate Committee participating in bill negotiations.   The project was funded by the local Barr Foundation.

“We were very pleased to see the State adopt many of our team’s recommendations,” said Peter Fox-Penner,  Professor of Practice in the Questrom School of Business and Director of the ISE.  “We are also pleased that this bill shows that the state remains committed to implementing the Global Warming Solutions Act through strong but carefully crafted policies.”    Among the recommendations adopted in the legislation was a strong reliance on competitive procurement for new renewables via “tranches” of contracts whose price must decline over time.    The ISE is now looking forward to helping the City of Boston and the state with a new, longer-term plan to remove all greenhouse gases from the state’s energy supply.

View the Washington Post article and the Massachusetts State Legislation.