State Scorecard Rank
Massachusetts offers a variety of tax incentives and grant, rebate, bond programs to encourage consumer investments in energy efficiency. It enables PACE financing but does not have any active PACE programs. The state government leads by example by setting energy requirements for public buildings and fleets, benchmarking energy use, and encouraging the use of energy savings performance contracts. Massachusetts is one of the few states to require the release of residential building energy data at the time of closing. Research focused on efficient vehicles is conducted at several institutions in the state.
Financial incentive information for Massachusetts is provided by the Database of State Incentives for Renewables and Efficiency (DSIRE Massachusetts) and State Energy Office contacts. Information about additional incentives not present on DSIRE is listed here. In addition to the state-funded incentives on DSIRE and below, Massachusetts has enabled Property Assessed Clean Energy (PACE) financing, however, it does not have any active PACE programs. For additional information on PACE, visit PACENation.
Transit-Oriented Development (TOD) Bond Program: The Transit-Oriented Development (TOD) Bond Program is intended to increase compact, mixed-use, walkable development close to transit stations. To accomplish this objective, the Program authorization (Chapter 291 of the Acts of 2004) provides financing for pedestrian improvements, bicycle facilities, housing projects, and parking facilities within .25 (1/4) miles of a commuter rail station, subway station, bus station, bus rapid transit station, or ferry terminal.
Pathways to Zero Net Energy Program: The Pathways to Zero Grant Program is a $3.5 million Department of Energy Resources (DOER) initiative launched in 2014 to spur the development of Zero Net Energy Buildings (ZNEB) in Massachusetts. $3.0M is being used to support residential and commercial ZNEB projects through feasibility studies, integrated design, and construction funding, and $500,000 is being used for public awareness, workforce development, efforts to develop and standardize best practices, and DOER resources.
Leading by Example Grants: This program works with public partners across Massachusetts state government to provide leadership, technical assistance, guidance, and grant funding to ensure successful implementation of strategies outlined in Executive Order 484. LBE accomplishes this with a comprehensive set of energy and environmental initiatives.
Last Updated: July 2016
- Building type(s) affected: residential
SB 2746 requires the disclosure of information regarding the benefits of home energy audits to buyers of single-family homes or small multi-family homes at the time of closing.
DOER has been piloting a Building Asset Rating (BAR) reporting protocol to serve as a next step for cities that have a disclosure ordinance in place. The BAR pilot has completed assessments of 41 commercial office building and has developed protocols for these building assessments.
Through the Home Energy Labeling Information Exchange (HELIX) DOER is partnering with the Vermont Public Service Department and other Northeast states to make U.S. DOE Home Energy Score (HES) data accessible to local Multiple Listing Services (MLS) and other market interests (e.g., assessors, appraisers, lenders) through a publicly accessible database. The project will support the market valuation of energy efficiency in homes and kicked off in late April 2016. HELIX is supported by a U.S. DOE award of $786,103 (over three years), and by funds provided by DOER, as well as DOER staff time.
In addition, through the Energy Metrics to Promote Residential Energy Scorecards in the States (EMPRESS), the Rhode Island Office of Energy Resources (RI OER), and the National Association of State Energy Offices (NASEO) will further work to develop common building energy labeling infrastructure by harmonizing the Home Energy Rating System (HERS) used for new homes and the DOE Home Energy Score (HES) used for existing homes. Both HELIX and EMPRESS build from a DOE-funded two year pilot, called Home MPG, completed in 2014. Home MPG was a collaboration between DOER and three investor-owned utilities in which over 3866 homes received home energy performance scores (EPS) through the Mass Save home energy audit program, and 1593 of those homes (41%) received an updated EPS after completing efficiency upgrades.
Last Updated: July 2016
Massachusetts has several green building programs targeted at state buildings. Executive Order 484 (2007) requires a reduction in overall energy consumption in state-owned and leased buildings (at which the state pays directly for energy) by 20% by fiscal year 2012 and 35% by 2020 (based on a fiscal year 2004 baseline). In Fiscal Year 2015, continued progress in state buildings resulted in additional efficiency gains with a cumulative EUI reduction of 15% from a 2009 site EUI.
The executive order states that all state agency new construction and major renovations over 20,000 sq. ft. must meet the MA LEED Plus green building standard and perform 20% better than the current energy code. Currently, there are 49 LEED certified buildings in the state portfolio, including 2 Platinum and 29 Gold certifications. Several state buildings have now been built or designed to meet the zero net energy standard and energy use data collected over the next 2-3 years will allow stakeholders to assess the actual performance of these buildings.
The Green Communities Act (S.B. 2768) of 2008 mandates that new buildings owned or operated by the state must minimize their life-cycle costs by using energy efficiency and renewable energy.
The State’s Enterprise Energy Management System (EEMS) project, awarded to EnerNOC in April 2010, was the first-phase of the largest public sector undertaking to measure real-time energy use information at 25 million square feet of buildings, tracking and comparing building energy consumption across a third of the state’s building portfolio and enabling responses to energy anomalies on a real-time basis. The EEMS project contract ended in 2015 and the innovative program’s second-phase, known as Commonwealth Building Energy Intelligence (CBEI), will build upon previous efforts and revamp the way state buildings use and respond to energy information. CBEI will include technological and strategic enhancements for advanced building energy metering tracking and analytics in an effort to drive operational efficiencies at state facilities. In March 2016, the Commonwealth signed a new $5.6 million, three-year contract with EnerNOC to provide these and other advanced energy intelligences services for millions of square feet of Commonwealth facilities. Enernoc will provide state facilities with access to real-time metering, building management system integration, utility bill management and building energy analytics, enabling them to optimize day-to-day energy management, identify energy anomalies as they occur, prioritize energy projects that target under-performing buildings and identify billing errors on utility bills. The new contract will be managed by the Division of Capital Asset Management and Maintenance (DCAMM), with close collaboration with DOER. The new contract provides substantial advancements in energy intelligence approaches, with the goal to significantly reduce energy use and costs at state facilities. When CBEI contract features are fully implemented, the program is expected to result in at least 5-10% energy use reductions, saving millions in energy costs.
The state’s Green Communities Division has also developed and implemented MassEnergyInsight, a free, web-based tool that helps cities and towns make informed, targeted decisions about energy efficiency investments. MassEnergyInsight provides communities with customized electricity, natural gas, and oil usage information to allow local officials to understand where their departments and buildings are wasting energy and act to reduce that waste.
Massachusetts is a partner in the US Department of Energy’s Better Buildings Challenge (BBC), a voluntary program which sets long range energy reduction targets for a select portfolio of buildings, requires the state to track and report detailed energy use at its facilities annually, and develop and document one or more showcase projects that demonstrate best practices and far-reaching energy strategies.
Announced in January 2013, the Accelerated Energy Program, a joint initiative of the Department of Energy Resources and Division of Capital Asset Management and Maintenance, is targeting a 25% reduction in energy, greenhouse gas emissions and energy costs at 58 million square feet of state buildings at 700 distinct sites, encompassing 4,800 buildings. By moving quickly to install energy efficient equipment and fixtures at smaller sites and developing comprehensive energy efficiency programs at larger campuses and buildings, the Commonwealth has, by its stated deadline of December 31, 2014, initiated efforts to implement energy efficiency in the entire identified portfolio. When all projects are fully complete, the state will have invested $470 million in dozens of energy conservation measures across a wide range of buildings types, from prisons, to hospitals, to parks and recreation facilities. These projects will enhance working conditions, and are projected to reduce energy use by 20% or more and reduce energy bills by $42 million annually, while leveraging some $24 million in utility incentives. To date, the Accelerated Energy Program (AEP) has completed 52 projects in over 25 million square feet of state buildings, or nearly half of the state portfolio. These completed projects represent an investment of $190 million and will save the Commonwealth approximately $13.8 million and 337,000 MMBTUs annually.
Two state buildings have/are participating in the Building Asset Rating (BAR) pilot, which is aimed at developing a low cost process for a building asset rating that will complement existing operational ratings. Additionally, DOER continues to fund and manage an effort to collect and report on monthly utility consumption for state facilities through the Mass Energy Insight system, which also provides monthly utility data for more than 240 municipalities.
Although not formally a requirement, as part of the efforts to push new building energy use far below code, the Commonwealth’s Division of Capital Asset Management and Maintenance recently finished construction on the state’s 2nd zero net energy designed building. This 45,000 square foot headquarters for the Division of Fish and Wildlife is modeled to use 60% less energy than a similar building built to code, and includes a host of innovative technologies and strategies. The state is also funding a number of other projects that are intending to achieve zero net energy status, including a lab building at Bristol Community College, new visitor center at Walden Pond, and several other projects that have received study funds from DOER’s Pathway to Zero grant program.
Last Updated: July 2016
The Green Communities Act requires the state to purchase hybrid and alternative fuel vehicles in such numbers that 50% of the fleet is hybrid or AFV by 2018. In addition, the Green Communities Act also requires the development of a fuel efficiency standard for the state fleet. This standard was developed and approved by DOER and the Operational Services Division and encompasses the state's entire light duty fleet of more than 2,800 vehicles. The standard is accompanied by an innovative calculator that allows fleet managers to input desired vehicles and immediately see whether or not their acquisitions will meet the standard. Additionally, DOER is in the process of issuing a detailed guidance document to help fleets understand and comply with the standard.
The Operational Services Division, in collaboration with DOER and other stakeholders, recently rebid the statewide vehicle contract to provide public entities with greater access to fuel efficient vehicles. The new statewide vehicle contract has made an array of fuel efficient, hybrid and alternative fuel vehicles available for purchase by any state agency, campus, or municipality. Included on this contract are 23 models that get 30 mpg or better, 4 hybrid models that get 40 mpg or better in the city, 4 plug-in hybrid models, 2 electric only vehicles, and 3 vehicles that runs on Compressed Natural Gas (CNG).
In addition, DOER and the Operational Services Division are in the process of creating an Advanced Vehicle Technologies statewide contract that will provide access to after-market hybrid and alternative fuel conversion technologies, electric vehicle charging stations and idle reduction technologies. This contract, expected in summer 2016, will provide public entities with an expanded range of options for reducing vehicle petroleum consumption, particularly for vehicle types with limited fuel-efficient options available commercially, such as pick-up trucks and heavy duty vans.
Last Updated: August 2016
In 2007, Executive Order 484 was signed, setting aggressive targets for reductions in energy use and greenhouse gas emissions, and increases in use of renewable energy across state government operations. It included a provision that directed state agencies to implement ESPCs for all facilities larger than 100,000 square feet. The Department of Administration and Finance houses the ESPC Program under its sub-Department of Capital and Asset Management and Maintenance (DCAMM). Massachusetts offers some model documents, including a model contract.
Through the DCAMM-DOER Accelerated Energy Program which began in 2012, a total of some $470 million in energy investments will be made for projects across 58 million square feet of state buildings, resulting in a 25% energy reduction and a decrease in greenhouse gas emissions totaling 135,000 metric tons. All projects have been initiated as of December 31, 2014. Municipalities also utilize energy saving performance contracts. Between 2002 and the present, one hundred eighty-three Massachusetts local governmental bodies (municipalities, schools, regional schools) contracted for ESPC with reported contracts valued at almost $400 million. These projects will provide guaranteed energy cost savings of at least $20 million annually. Projects implemented in 2015 represent $40 million in project costs that will deliver nearly $2 million in annual energy cost savings over the next twenty years.
Additionally, DOER signed onto the DOE Better Buildings Performance Contracting Accelerator, pledging at least $350 million toward energy projects at state and municipal buildings between 2013 and 2016. Under this program to date, 93 state and municipal projects are underway, representing an investment of more than $265 million, or nearly 76% of the full commitment. Of these, 36 are state projects and 57 are municipal projects, estimated to save these entities more than $9 million and $5.8 million in annual energy costs, respectively.
Last Updated: July 2016
The Massachusetts Energy Efficiency Partnership (MAEEP) supports demonstration of energy efficiency technology and tools to the industrial, commercial, and institutional sectors. The MAEEP program leverages resources from U.S. DOE, the University of Massachusetts and Massachusetts electric utilities.
The Center for Energy Efficiency and Renewable Energy (CEERE) at the University of Massachusetts at Amherst provides technological and economic solutions to environmental problems resulting from energy production, industrial, manufacturing, and commercial activities, and land use practices. The university-based research program is built upon four subgroups of Renewable Energy Resources, Building Energy Efficiency, Industrial Energy Efficiency, and Environmental Technologies with unique abilities to service energy and environmental problems. The Center has 43 faculty and staff and is funded in part through U.S. DOE grants.
Massachusetts is also leveraging $4.5 million in grants to pilot programs to demonstrate energy-efficient technologies in the building sector.
In 2014, the Massaschusetts Clean Energy Center (CEC) in collaboration with DOER, launched the Mass. as First Customer Program, which aims to help young, innovative clean energy firms develop market and customers at public entities for their products, technologies and services. Working with DOER and DCAMM, the program has held 2 innovative technology vendor fairs, one targeted at all public agencies and one at public colleges and universities. Additionally, the Program is identifying a small subset of companies that have products ready to go to market and will work closely with state partners to identify potential host sites for both pilots and installations.
Massachusetts also supports an extensive system of clean energy R&D and market development centers and incubators, including: Institute of Energy and Sustainability, North Shore Innoventures, and other entrepreneurship incubators that do not focus on clean energy specifically but do support some energy efficiency businesses. In 2015, DOER worked with UMass again to expand services to residents and businesses through the Clean Energy Extension (CEE) program. The CEE works to reduce market barriers and accelerate the adoption of clean energy for Massachusetts cities and towns, businesses, institutions, farms, low income and multi-unit housing, and others. The CEE's mission is to provide outreach, technical assistance, and research to the market.
Last Updated: July 2016
The Board of Building Regulations and Standards is in the process of adopting the 2015 IECC and ASHRAE Standards 90.1-2013, which are expected to go into effect in 2016. Massachusetts has implemented a variety of activities to ensure compliance.
In July 2015, the Board of Building Regulations and Standards (BBRS) began development of the MA 9th edition building code, which is expected to be effective between July 1, 2016 and January 1, 2017. The energy chapters the IECC 2015 and ASHRAE 90.1-2013 with strengthening amendments. The public comment period on this code is currently open and a BBRS vote on adoption is expected this summer. Until the IECC 2015 and ASHRAE 90.1-2013 takes effect the energy code remains the 2012 IECC and ASHRAE 90.1-2010, with state-specific amendments. The MA amendments add a HERS compliance path for units that receive a HERS rating of 65 or less, and a compliance path for buildings that use the Passive House software (PHPP). Massachusetts has achieved broad adoption of the 2009 MA Stretch Energy Code. It is currently adopted in 162 towns and cities representing over 50% of the state population. The MA stretch energy code requires residential new construction to follow the ERI path of the IECC 2015 with a HERS rating of 55 or less, and also includes renewable energy trade-offs to promote both solar PV and renewable heating.
Last Updated: July 2016
Massachusetts is in the process of adopting the 2015 IECC and ASHRAE standard 90.1-2013 as the baseline energy code. The IECC 2015 and ASHRAE standard 90.1-2013 adoption has an expected effective date between July 1, 2016 and January 1, 2017. Until the IECC 2015 and ASHRAE 90.1-2013 takes effect the energy code remains the 2012 IECC and ASHRAE 90.1-2010, with state-specific amendments. The MA amendments add a HERS compliance path for units that receive a HERS rating of 65 or less, and a compliance path for buildings that use the Passive House software (PHPP). Massachusetts has achieved broad adoption of the 2009 MA Stretch Energy Code. It is currently adopted in 162 towns and cities representing over 50% of the state population. The 2015 stretch code requires new commercial buildings over 100,000 square feet and new supermarkets, laboratories and conditioned warehouses over 40,000 square feet to demonstrate energy use per square foot at least 10% below ASHRAE 90.1-2013 using Appendix G on either a site or source energy basis.
Last Updated: July 2016
- Gap Analysis/Strategic Compliance Plan: Mass Save program administrators have hired a vendor to coordinate code compliance. The vendor conducted a series of focus groups in 2014. These focus groups guide training and circuit-ride assistance now in place.
- Baseline & Updated Compliance Studies: In the past two years Massachusetts’ utilities have completed a 2011-12 study of commercial building energy code compliance and a two-part residential building energy code compliance study. The first part of the residential study jointly funded by the Department of Energy Resources (DOER) and utilities sampled homes built to the 2006 IECC, homes built to ENERGY STAR (over a third of new construction), the second part assessed compliance to the 2009 IECC. These studies were initially based on PNNL protocol but adapted for HERS ratings and other logistical reasons. The residential studies show code compliance rates of over 90% for HERS rated (stretch code and ENERGY STAR homes), and over 80% in IECC 2006 homes. The IECC 2009 home compliance rate and the commercial compliance rate are unknown. Enforcement is performed by local building code officials. In the 140 towns and cities that have elected to adopt the state’s ‘stretch’ energy code, enforcement of the building energy code is greatly assisted by the integrated role of HERS raters in performing building envelope testing and documenting code compliance levels of energy performance. Code compliance in these communities is estimated at close to 100% for residential buildings, and energy savings are clearly documented by the performance-based HERS rating approach, which ties into ratepayer funded new construction incentives.
- Utility Involvement: A framework of savings attribution for utilities is being developed. Current utility sponsored trainings and compliance support are being implemented on a two-year pilot basis with a view to a broader program in coming years.
- Stakeholder Advisory Group: Utilities, the Mass Save compliance program vendor, and public safety offices of the state meet quarterly.
- Training/Outreach: The Green Communities Act requires the Board of Building Regulations and Standards (BBRS) and the DOER to develop specific energy efficiency training and certification for all local code officials.Trainings are funded by utility programs, with approximately 30 trainings scheduled in 2015.
Last Updated: July 2015
The state has a variety of policies to encourage CHP deployment, including an incentive program, inclusion of CHP as an eligible resource within the state's EERS, and an interconnection standard that applies to CHP. In 2015, six new CHP installations were completed.
Policy: Massachusetts Distributed Generation Interconnection Rules
Description: Massachusetts’ investor-owned utilities use an established interconnection process for all distributed generation, including CHP. There are three tiers of interconnection, corresponding with increased system scrutiny and fees. There is no set limit on system size, but a more extensive system impact study may be required on systems larger than 1MW, and is definitely required for systems larger than 5MW.
Last Updated: June 2016
CHP in energy efficiency standards: Massachusetts passed an Energy Efficiency First Fuel Requirement bill that requires electric and gas utilities to prioritize cost-effective energy efficiency and demand reduction resources over supply resources. Demand side resources include "energy efficiency, load management, demand response and generation that is located behind a customer's meter including a CHP system with an annual efficiency of 60% or greater with the goal of 80% annual efficiency for CHP systems by 2020."
Massachusetts Department of Energy Resources has also established an Alternative Energy Portfolio Standard (APS). The APS sets targets for sales of “alternative” energy to retail customers by electricity suppliers. For the purposes of the APS, CHP is specifically included as an “alternative generation unit.”
CHP programs: A CHP program is implemented in Massachusetts through Mass Save, which is an initiative sponsored by the Massachusetts utilities and energy efficiency service providers to promote energy efficiency and help residents and businesses manage their energy use. The Mass Save CHP Program was launched in 2010 and it provides incentives to all utility customers considering CHP per kW depending on system size and efficiency.
Production goal: The Alternative Energy Portfolio Standard (APS) prioritizes CHP systems as part of the state’s goal to achieve 5% from electricity from alternative sources by 2020. According to the APS annual compliance report of 2013, almost all of compliance was met using efficient CHP technologies. This 5% goal can be translated into a kWh production goal and the state budget supports acquisition of generation from CHP through the APS.
Revenue streams: Within the Alternative Energy Portfolio Standard (APS), CHP system owners are eligible to earn a performance incentive (per kWh) that is linked to actual generation in the form of alternative energy credits (AECs).
Last Updated: June 2016
Incentives, grants, or financing: Through the Mass Save CHP Program, CHP system owners have access to three tiers of incentives – basic, moderate, and advanced – and each tier provides a greater reward to systems that are sized and designed to achieve ideal performance and cost-effectiveness. Incentives range from $750/kW to $1,200/kW and cannot exceed 50% of total project costs.
Net metering: In Massachusetts net metering was originally authorized for renewable-energy systems and combined-heat-and-power (CHP) facilities with a generating capacity up to 30 kilowatts (kW) by the Massachusetts Department of Public Utilities (DPU) in 1982. In 1997, the maximum individual system capacity was raised to 60 kW and customers were permitted to carry any net excess generation to the next bill. In July 2008, net metering was significantly expanded by S.B. 2768 and the DPU adopted rules implementing the law in June 2009.
The DPU adopted amended net-metering rules in July 2009. In August 2009, the DPU issued its model net metering tariff so that customers in Massachusetts are subject to the same net metering tariffs regardless of utility. The state's investor-owned utilities must offer net metering. Municipal utilities are not obligated to offer net metering, but they may do so voluntarily. The aggregate capacity of net metering is limited to 1% of each utility’s peak load.
CHP systems under 60 kW are eligible as "Class I" systems for net metering in Massachusetts.
Last Updated: June 2016
Some additional supportive policies exist to encourage CHP in Massachusetts. Massachusetts Environmental Policy Act (MEPA), which defines the state’s environmental review process for large building projects requires a detailed analysis and evaluation of the feasibility of CHP.
CHP is also being supported through the state's $40 million Resiliency Intiative. For example, grants have covered the cost of adding black start and island mode capability to major CHP systems located at critical public facilities.
The state also encourages the use of renewable-fueled CHP systems and waste heat to power (WHP), which qualify under its Renewable Energy Standard.
Last Updated: June 2016
Massachusetts is a leading state with a long, successful record of implementing energy efficiency programs for all customer sectors. The state created an aggressive funding mechanism and required electric utilities to provide energy efficiency programs during its restructuring of the industry in 1997. The natural gas utilities in the state have offered energy efficiency programs to customers since the late 1980s.
In 2008, the governor signed Chapter 169 of the Acts of 2008, An Act Relative to Green Communities. The new law altered the approval process and timeline for electric and natural gas utility energy efficiency plans and required the utilities to file the plans every three years. The law required the state’s regulatory authority, the Department of Public Utilities, to ensure that energy efficiency programs “are delivered in a cost-effective manner capturing all available efficiency opportunities, minimizing administrative costs to the fullest extent practicable, and utilizing competitive procurement processes to the fullest extent practicable.” In addition, the law directed the DPU to appoint and convene an Energy Efficiency Advisory Council (EEAC), whose members play a key role in designing, approving, and monitoring the energy efficiency programs of Massachusetts' investor-owned utilities. The EEAC’s primary mandate is achieving the goals outlined in the Green Communities Act and developing long-term vision, including recommendations concerning studies and research to achieve the goals of acquiring all cost-effective efficiency that is less than the cost of generation, and maximizing economic and environmental benefits that can be realized through increased energy efficiency.
Massachusetts' approach has resulted in one of the most ambitious fully-funded state savings targets, incremental electric savings targets ramping up from 2.5% to 2.6% from 2013-2015. The state’s three year plan also includes gas savings of about 1.1% of retail sales each year. Utility companies in the state manage and implement efficiency programs. The low-income residential demand-side management and education programs are implemented through the state’s low-income weatherization and fuel assistance program.
Massachusetts has decoupling in place for all of its gas and electric utilities. Utility companies can earn a shareholder incentive of approximately 5% of energy efficiency program costs for meeting energy saving, benefit-cost, and market transformation goals.
The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.
Last Updated: August 2015
Massachusetts has a restructured utility industry with competitive generation and retail markets. The distribution companies remain regulated and are required to offer energy efficiency and other demand-side management programs. The law governing these programs is Massachusetts General Law, Chapter 25 §19. The distribution utilities administer their own energy efficiency programs with collaborative input and oversight from the Massachusetts Energy Efficiency Advisory Council, a stakeholder body chaired by the state Department of Energy Resources (DOER). The Department of Public Utilities has regulatory responsibility.
All investor-owned gas and electric utilities and energy efficiency service providers have partnered together to sponsor the Mass Save initiative. Administrators work with the Massachusetts Department of Energy Resources to provide a wide range of services, incentives, trainings, and information promoting energy efficiency. A variety of electric and gas efficiency programs are also offered directly through IOUs and municipal utilities. Some municipal utilities also offer energy efficiency programs. Energy efficiency program funds must be allocated to customer classes, including the low-income residential subclass, in proportion to these customers’ contributions to those funds. At least 10% of the funding for electric energy efficiency programs and at least 20% of the funding for gas energy efficiency programs must be spent on low-income residential demand-side management and education programs.
In 2012, the state created a pilot self-direct program for large gas and electric customers. Five Largest Gas and Electric Customers Accelerated Rebate Pilot: Sections 5 and 54 of An Act Relative to Competitively Priced Electricity in the Commonwealth, requires the program administrators to implement a pilot program for their five largest energy users based upon specific customer locations in their respective service territories known as the voluntary accelerated rebate pilot program. Customers electing to participate shall be eligible for financial support of up to 100 per cent of the cost for qualified energy efficiency measures, as determined by the Program Administrator, using criteria included in the Three Year Plan. In addition, up to 15% of any accelerated rebate may be used for other improvements that support energy efficiency improvements made under a program approved by the department or emission reductions, including, but not limited to, infrastructure improvements, metering, circuit level technology and software
The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found at MassSaveData.com. Detailed information is available at the state Savings and Spending tables at ma-eeac.org. The self-direct pilot ended December 2015.
Last Updated: June 2016
The Green Communities Act requires that electric and gas utilities make acquiring all cost-effective energy efficiency a higher priority than using other resources. The Act created an Energy Efficiency Advisory Council (EEAC) that works with utility program administrators to establish statewide plans for gas and electric utilities for 3 years into the future. Utilities must “provide for the acquisition of all available energy efficiency and demand reduction resources that are cost effective or less expensive than supply” in coordination with the EEAC. Utilities prepare plans for the Department of Public Utilities that establish annual budgets and goals over a period of three years. Annual updates are preliminary. This process is open to the public.
Last Updated: June 2016
Summary: Electric: Yearly incremental savings targets began at 1.4% in 2010, ramping up to 2.94% by 2016. Natural Gas: Targets began at 0.63% in 2010, ramping up to 1.24% by 2016.
The Green Communities Act requires that electric and gas utilities procure all cost-effective energy efficiency before more expense supply resources, requiring a three year planning cycle. In January 2016, the DPU approved the third 3-year (2016-2018) electric and gas energy efficiency plans under the Green Communities Act, continuing the state’s progress toward the most ambitious energy savings targets in the country. The first electric efficiency procurement plancalled for incremental savings 1.0% in 2009, 1.4% in 2010, 2.0% in 2011, and 2.4% in 2012. The state's third three-year plan calls for savings to increase to 2.95% of annual sales in 2018. The energy efficiency investments in 2016-2018 are expected to save 4,118 annual GWh of electricity by 2018. The statewide totals are comprised of individual program administrator savings.
The state's natural gas plan will save 85.8 MMTherms over the 2016 to 2018 plan period (equivalent to 1.24% of sales), and 29.2 MMTherms in the year 2018 (1.25%).
Overall, the fully funded 2016-2018 electric and natural gas efficiency procurement plans will yield net consumer benefits of nearly $7.9 billion. The electric savings proposed in the current three-year plan represent a 5% increase relative to what was achieved in the previous three-year plan; proposed gas savings represent a 8% increase.
Last Updated: June 2016
Massachusetts is currently implementing decoupling for all of its gas and electric utilities pursuant to DPU Docket 07-50-A (July 2008). Target revenues are determined on a utility-wide basis, and can be adjusted for inflation or capital spending requirements if necessary. The Massachusetts DPU has approved decoupling plans for National Grid Electric Company (DPU 09-39), National Grid Gas Company (DPU 10-55), Bay State Gas Company (DPU 09-30) and Western Massachusetts Electric Company (DPU 10-70). Each distribution company is required to institute a decoupling mechanism with its next filed rate case.
Shareholder incentives are in place for electric and gas utilities. The shareholder incentive provides performance incentives for IOUs to earn a return (depending on PA performance against planned metrics) on the 3 year plan spending for meeting program goals. The incentive is based on a combination of elements including energy savings, benefit-cost analysis, and market transformation results. The shareholder incentive structure was most recently amended by DPU Order 11-120-A.
Last Updated: June 2016
- Cost-effectiveness test(s) used: TRC
- Uses a deemed savings database: yes (MA Technical Reference Manual)
The evaluation of ratepayer-funded energy efficiency programs in Massachusetts relies on both legislative mandates (Green Communities Act of 2008) and regulatory orders (DPU 8-50-A). The order follows the legislation. Evaluations are mainly administered by the Energy Efficiency Program Administrators through an Evaluation Management Committee which includes a representative from each PA, however, the Massachusetts’s Energy Efficiency Advisory Council oversees the evaluations. Statewide evaluations are conducted, with the exception of PA-specific pilots. There are no specific legal requirements for these evaluations. Massachusetts uses benefit-cost tests in connection with their ratepayer-funded energy efficiency programs. Massachusetts relies on the Total Resource Cost (TRC) test and considers it to be its primary test for decision making. Resource and non-resource benefits are determined through the EM&V process to be included in the TRC and approved by the DPU. The rules for benefit-cost tests are stated in the Green Communities Act of 2008 and DPU 8-50-A. Benefit-cost tests are required at the overall portfolio and total program levels screening.
In 2016, the Mass Save program administrators issued their second 3-year strategic EM&V plan outlining scopes and suggested outcomes of the studies planned through 2018. Impact, process and market assessments are all considered through a stakeholder process.
Last Updated: June 2016
Requirements for State and Utility Support of Low-Income Energy Efficiency Programs
In the late 1990s, Massachusetts restructuring law established a low-income conservation fund through a 0.25 mills per KWh charge on every electric customer, while a conservation charge on natural gas customers’ bills has funded natural gas low-income energy efficiency programs.
In 2010, the program received additional funding through the 2008 Green Communities Act, which required that 10% of electric utility program funds and 20% of gas program funds be spent on comprehensive low-income energy efficiency and education programs. The legislation further directed that these programs be implemented through the low-income weatherization and fuel assistance program network with the objective of standardizing implementation among all utilities.
In addition to the WAP-coordinated programs which directly serve low-income clients, the utilities fund the Low-Income Multifamily Retrofit Program, which provides cost-effective energy efficiency improvements to multifamily buildings, including nonprofit and public housing authorities. The program is targeted to 1–4 unit residential buildings where at least 50% of the units are occupied by low-income residents earning at or below 60% of area median income. Eligible projects involve efficiency upgrades for buildings with currently high energy consumption, specifically for space heating, hot water, air sealing, and insulation of building envelopes, lighting, and appliances.
Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs
Massachusetts relies on the TRC test as its primary test for DSM programs, but specifically calculates additional benefits from low-income programs in its benefit-cost ratio.
D.P.U. 08-50-B specifies that an Energy Efficiency Plan must include calculations of non-electric benefits, specifically those related to: “(A) reduced costs for operation and maintenance associated with efficient equipment or practices; (B) the value of longer equipment replacement cycles and/or productivity improvements associated with efficient equipment; (C) reduced environmental and safety costs, such as those for changes in a waste stream or disposal of lamp ballasts or ozone-depleting chemicals; and (D) all benefits associated with providing energy efficiency services to Low-Income Customers.”
In 2010, in its 2010–2012 Three-Year Plan Order, the Massachusetts Department of Public Utilities (DPU) ordered the program administrators to conduct a more thorough analysis of non-energy impacts through evaluation studies. The DPU, with few exceptions, approved these studies. A study for the Massachusetts Program Administrators, conducted by NMR Group, incorporates findings from a review of the Non-Energy Impacts (NEI) literature to quantify non-energy benefits (NEB), including NEBs for low-income programs.
Coordination of Ratepayer-Funded Low-Income Programs with WAP Services
Since 1994, the Massachusetts Department of Housing and Community Development has designated Action, Inc., a non-profit charitable organization, to represent the subgrantee network and facilitate efforts to leverage nonfederal funding for the WAP network. The WAP network in Massachusetts currently administers utility-funded Demand Side Management (DSM) programs that provide full-scale weatherization as well as Appliance Management Programs (AMPs) for low-income households. Coordination occurs through the Massachusetts Low-Income Energy Affordability Network (LEAN), which was established by the lead agencies of the low-income weatherization and fuel assistance program network. LEAN works to standardize eligibility requirements, procedures, and standards to enable delivery of various programs through CAP agencies throughout the state.
Last updated: April 2017
The top 5 energy users in each utility were able to opt in to the self-direction option. However, the pilot program ended in December of 2015.
Last Updated: July 2016
Guidelines for Third Party Access
There has been an ongoing process to develop a statewide energy efficiency database that would potentially include customer energy use data, but there is no regulation in place to date.
Requirements for Provision of Energy Data
To date, there is no regulation in place for provision of meter data. The interactive program data tool at MassSaveData.com, which is administered by the PAs, includes customer energy use data by sector (residential, low income, and C&I) and separately by municipality. MassSaveData.com only presents estimated annual aggregate sales numbers. Chapter 465 of the Acts of 1980 allows residential energy audit report information to be given to tenants or subsequent purchasers. DOER is in the process of updating the regulation to systematize that process. Although provision of energy use data to customers is not required, 86% of the state's electric customers and 71% of the state's gas customers have access to Green Button data through voluntary utility participation.
In the City of Boston and the City of Cambridge there are building disclosure ordinances and those cities have requested that the electric and gas utilities provide multi-tenant building data in aggregated form. There are no statewide requirements.
Energy Use Data Availability
The state does not have a standardized system through which access to individual or aggregated energy use data may be requested except in the cities of Cambridge and Boston.
Last Updated: June 2016
The state's comprehensive set of policies includes tailpipe emissions standards, targets to reduce vehicle miles traveled, significant levels of transit funding, and a dedicated transit revenue stream.
Massachusetts adopted California’s Low-Emission Vehicle Program in 2006, committing to a 30% reduction in average new vehicle greenhouse gas emissions from 2002 levels by 2016. The state has also adopted California's Zero-Emission Vehicle (ZEV) program, which requires increasing production of plug-in hybrid, battery electric, and fuel-cell vehicles from 2018 to 2025.
Last Updated: July 2015
Transportation and Land use Integration: The issuance of Executive Order 385 (“Planning for Smart Growth”) in 1996 led to the creation of a number of smart growth initiatives that targeted concentrated growth and the revitalization of urban centers. However, it wasn’t until 2000, when the state passed the Community Preservation Act, that smart growth planning was solidified in the law and a program was established to support communities’ preservation of open space. Massachusetts subsequently adopted Chapter 40R, the Smart Growth Zoning Law, which provides financial incentives for municipalities to increase density and build affordable housing in areas with good access to transit. The Commonwealth Capital program, initiated in 2005, applies several smart growth criteria to municipalities’ applications for state funding.
VMT Targets: In 2009, the state implemented language from Chapter 90E, mandating the accommodation of biking and pedestrian traffic in future transportation construction plans. This was followed by the launch of Massachusetts Department of Transportation’s GreenDOT program aimed at reducing the state’s contribution of transportation sector greenhouse gas emissions.
Complete Streets: Massachusetts Chapter 90E provides for the accommodation of bicycle and pedestrian traffic in the planning, design, and construction, reconstruction or maintenance of any project undertaken.
Freight Plans and Goals: The state completed a state freight plan in 2010.
Last Updated: July 2015
The Massachusetts Offers Rebates for Electric Vehicles (MOR-EV) Program offers rebates of up to $2,500 to customers purchasing PEVs.
Last Updated: July 2015
Policy: M.G.L. Chapter 25B, § 1, et seq., Appliance Efficiency Standards Act
Description: Having originally adopted standards in 1986, Massachusetts was one of the first states to adopt appliance standards after California paved the way in 1974. In 2005, Massachusetts expanded its appliance standards legislation to cover seven products. The federal Energy Policy Act of 2005 and the Energy Independence and Security Act of 2007, however, introduced standards that preempted state standards for five of those products. New products that are considered for state standards are adopted through the Division of Energy Resources (DOER).
In 2009, Massachusetts developed an application for a waiver of federal standards for gas furnace (and fans) minimum efficiency in order to implement its own, more stringent, standard; it is the only state to have done so. Their waiver application helped spur manufacturer interest in a negotiated federal standard. Federal standards preempted Massachusetts’ standard for furnaces in 2013 and furnace fans will be preempted in 2017.
Last Updated: July 2016