Baker-Polito Administration Sets Ambitious Emissions Reduction Goal for Energy Efficiency Plan
Efficiency Goal Will Help Commonwealth
Achieve 2030 Emissions Reduction Target
BOSTON – Building on its national leadership on
energy efficiency and climate action, the Baker-Polito Administration today
announced it has established an ambitious greenhouse gas emissions (GHG)
reduction goal for the next three-year Mass Save®
Energy
Efficiency Plan. The goals, established as part of comprehensive,
nation-leading climate legislation signed into law by Governor Baker in March,
will help the Commonwealth meet its ambitious goal to reduce GHG emissions 50%
below 1990 levels by 2030. The GHG reduction goal for the three-year energy
efficiency plan, established in a letter
issued by Energy and Environmental Affairs Secretary Kathleen Theoharides to
the Mass Save program administrators, builds
upon the framework established in the Administration’s 2050 Decarbonization
Roadmap (2050 Roadmap) and 2030 Interim Clean Energy and Climate Plan (2030
Interim CECP). The goal requires the Commonwealth’s utility companies to pursue
an ambitious emissions reduction goal through Mass Save in a cost-effective and
equitable manner while creating jobs and opportunities for economic development
throughout Massachusetts.
“Massachusetts
continues to lead the nation in ambitious clean energy and energy efficiency
policies with programs like Mass Save, helping residents save money on their
energy bills while making substantial progress on our climate goals,” said
Governor Charlie Baker. “The goals we are setting today will help spark
innovative efficiency solutions and lead to significant reductions in harmful
greenhouse gas emissions to combat the effects of climate change.”
“In establishing
this emissions reduction goal, our Administration is laying the groundwork for
significant investments in energy efficient infrastructure and job creation
across the Commonwealth,” said Lieutenant Governor Karyn Polito. “These
investments will reduce air pollution in our cities and towns, create new
economic opportunities, and lower energy costs for our residents and businesses
across the state.”
The GHG reduction
goal for the 2022-2024 Joint Statewide Energy Efficiency Plan for electric
utility companies requires the reduction of 504,955 metric tons of C02e
emissions, while the emissions reduction for gas utility companies requires the
reduction of 335,588 metric tons of CO2e.
“Massachusetts
remains a national leader in energy efficiency, but we continue to pursue
innovative approaches to make our buildings more efficient, drive investment to
our cities and towns, and help our state meet its ambitious target of Net Zero
emissions by 2050,” said Energy and Environmental Affairs Secretary Kathleen
Theoharides. “The goals set today will not only help residents and
businesses increase efficiency and reduce emissions, but also ensure that
equity is a central priority in our efficiency programs as we continue to
transition to a clean energy future.”
The climate
legislation signed by Governor Baker requires both economy-wide and sector
limits, which will be first set for 2025, and then 2030. The Mass Save program
prepares three-year investment plans, one for gas programs and another for
electricity and delivered heating fuels. Those plans include goals and
reporting requirements for three sectors: residential, residential income
eligible ratepayers, and commercial customers.
The Mass Save
energy efficiency programs are funded by utility customers. All residents and
businesses located in investor-owned utility territories in Massachusetts pay
into a fund through their utility bill, which supports these programs. The
three-year plan directs how these funds will be spent on financial incentive
programs for homes and businesses. The development, implementation, and
evaluation of Three-Year Plans is overseen by the Energy Efficiency Advisory
Council (EEAC), which is chaired by the Department of Energy Resources (DOER).
A resolution, created by the EEAC in March of this year, details the EEAC’s
priorities for the upcoming three-year plan, as well as provides specific
recommendations to support these priorities.
The letter sent by
Secretary Theoharides to the utility companies that administer the Mass Save
Program details the goals and priorities for the 2022-2024 Energy Efficiency
Plans, which are currently in development and which must be voted on by the
Energy Efficiency Advisory Council and submitted to the Department of Public
Utilities (DPU) by October 31, 2021. It is anticipated that Mass Save will
achieve the GHG emission reduction goals by increasing the number of buildings
retrofitted and weatherized each year, making significant investment in
electrification of existing buildings to transition customers away from fossil
fuels, reducing support for fossil-fuel heating incentives, phasing out LED
light-bulb incentives, increasing equitable program investments in
environmental justice communities and low-moderate income households, and
increasing workforce development investments to expand diversity in the
workforce. The goals build on the Administration’s effort to promote long-term
decarbonization in coordination with the EEAC and its priorities, such as
promoting passive home adoption and air source heat pumps.
“Energy efficiency
measures are the most cost-effective way for residents and businesses to lower
their energy bills and to lower our greenhouse gas emissions,” said
Department of Energy Resources Commissioner Patrick Woodcock. “DOER looks
forward to our continued partnership with the Mass Save Program Administrators
and the EEAC to design a plan that meets this ambitious mandate.”
The final 2022-2024
Energy Efficiency Plans, filed with the DPU in October 2021, are required to be
designed to achieve the GHG goals established in the Secretary’s letter and
should focus on programs that accelerate the market transformation needed to
achieve Net Zero emissions by 2050. The plan should reflect the GHG reduction
goals and include a performance incentive mechanism that ensures that the
electric and gas utilities are incentivized to achieve these goals.
On
March 26, 2021, Governor Baker signed comprehensive climate change legislation that significantly
increased protections for Environmental Justice communities across
Massachusetts, authorized the Administration to implement a new, voluntary
energy efficient building code for municipalities, and allowed the Commonwealth
to procure an additional 2,400 Megawatts (MW) of clean, reliable offshore wind
energy by 2027. Recognizing the significant impact of climate change on
Environmental Justice communities overburdened by poor air quality and
disproportionately high levels of pollution, the legislation statutorily
defined Environmental Justice and environmental burdens, including climate
change as an environmental burden.
The
legislation also expanded Massachusetts Environmental Policy Act (MEPA) review
to require an Environmental Impact Report for all projects that impact air
quality within one mile of an Environmental Justice Neighborhood and required
the Department of Environmental Protection to conduct a stakeholder process to
develop a cumulative impact analysis as a condition of permitting certain
projects.
For additional
information on the next three-year Energy Efficiency Plan, please click here.
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