Energy and Clean Technology Alert: “Green Jobs” and “Global Warming” Bills Get Patrick’s Signature
8/13/2008
After signing into law the Global Warming Solutions Act last Friday, Governor Deval L. Patrick today did the same for the Green Jobs Act, legislation that Patrick says adds to the progress in “making Massachusetts a world-class center for clean energy.” The Green Jobs Act draws $43 million from the state’s competitive investment fund to support the emerging green economy in Massachusetts, and the Global Warming Solution Act sets ambitious targets aimed at reducing greenhouse gas emissions.
The bills follow a series of clean energy initiatives in the 2007-2008 legislative session, dubbed the “greenest ever” by Ian Bowles, the Secretary of Energy and Environmental Affairs. During this legislative cycle, Massachusetts joined the Regional Greenhouse Gas Initiative and passed legislation to hold the first auction of emission credits. Lawmakers also advanced a number of other measures, including a first-in-the-nation comprehensive oceans management planning bill, the Green Communities Act, a $1.7 billion Environmental Bond bill, and the Clean Energy Biofuels Act.
Green Jobs Act
The Green Jobs Act creates the Massachusetts Clean Energy Technology Center (the “Center”) to direct the development of the clean energy sector in the Commonwealth. Operating under the Executive Office of Energy and Environmental Affairs (EOEEA), the Center will work to create clean energy jobs; promote research and workforce training in clean energy technology in the state’s public colleges and universities; support the expansion of existing clean energy companies; and foster collaboration between industry, state government, research universities and the financial sector to advance clean energy technology in Massachusetts.
The Center will also oversee the newly created Massachusetts Alternative and Clean Energy Investment Trust Fund (the “Fund”). The Fund’s goal is to reduce overall energy costs while protecting the environment, by making the following investments:
- stimulating public and private financing for the construction of state-of-the-art clean energy research and development facilities;
- providing grants to state educational institutions to develop clean energy curriculum;
- developing clean energy technologies by investments in research and manufacturing; and
- matching grants to colleges and universities to attract federal funding for R&D in clean energy.
To make such investments in clean energy projects with state dollars, the Fund must follow certain guidelines. Applications for state funding will be evaluated on several factors, including: the proposed project’s potential to expand clean energy employment in Massachusetts; the ability to leverage additional funding to the state through private sources or the federal government; the potential for environmental advancements and cost containment; the potential to attract more renewable energy; and the prospect of improving economic self-sufficiency for low and moderate income individuals and communities in the clean energy industry.
The Green Jobs Act also directs state funding to several areas of the clean energy sector, including the allocation of $5,000,000 annually from the Renewable Energy Trust Fund to the Massachusetts Alternative and Clean Energy Investment Trust Fund. The new law also authorizes the Secretary of EOEEA to make the following expenditures in FY09:
- $1,000,000 on the newly established Clean Energy Seed Grant Program, which will award grants to clean energy researchers, companies, nonprofits and community-based organizations, and institutions. This program will also build public-private partnerships with clean energy investors, entrepreneurs, and institutions based in Massachusetts;
- $1,000,000 for a workforce training and development program, targeting public colleges and universities, vocational-technical schools and community based organizations; and
- $1,000,000 for a “pathways out of poverty” initiative that will award five grants to clean energy companies that serve low and moderate income citizens.
Legislators took note of the Green Jobs Act’s passage in the context of the Green Communities Act and the Clean Energy Biofuels Act. In speaking about the Green Jobs Acts on the House floor last week, Representative Daniel Bosley (D-North Adams), the Chairman of the Joint Committee on Economic Development and Emerging Technologies, noted that it was the final bill in the “clean, green trilogy this year.”
Global Warming Solutions Act
Governor Patrick also signed the Global Warming Solutions Act, the second of its kind in the nation, which advocates say would sharply reduce the state’s greenhouse gas emissions and curb global warming. The law implements greenhouse gas emissions caps at 20 percent below 1990 levels by 2020 and 80 percent below 1990 levels by 2050. For those failing to comply, the law imposes fines of as much as $25,000 per day for violations.
In other highlights, the bill also:
- establishes the Green Building Revolving Loan Fund, which will provide low-interest financing for new construction or major renovation projects that exceed the energy efficiency requirements of the state building code by 30 percent; and
- prohibits permits for new construction or expansion of existing construction where emission rates exceed 1,100 pounds of carbon dioxide per megawatt-hour.
These new laws make clear that Massachusetts is striving to be the national leader in the clean energy arena. We will continue to alert you as new policy goals are set, bills are passed, and rules and regulations are implemented.
Click Here to view our July 2, 2008 Alert on the Green Communities Act.
For additional information, please contact a member of the Mintz Levin Energy and Clean Technology Practice Group.
Thomas R. Burton
Chair, Energy and Clean
Technology (Boston)
(617) 348-3097
TRBurton@mintz.com
Evan M. Bienstock
Corporate (Boston)
(617) 348-3090
EMBienstock@mintz.com
Ralph A. Child
Member, Environmental (Boston)
(617) 348-3021
RChild@mintz.com
Richard A. Kanoff
Of Counsel, Energy Regulatory and
Project Development (Boston)
(617) 348-3070
RAKanoff@mintz.com
Patrick J. Kealy
Corporate (Boston)
(617) 348-1679
PJKealy@mintz.com
David L. O’Connor
Senior Vice President for
Energy and Clean Technology,
ML Strategies (Boston)
(617) 348-4418
DOConnor@mlstrategies.com
Paul J. Scapicchio
Senior Vice President
of Government Relations,
ML Strategies (Boston)
(617) 348-3031
PJScapicchio@mlstrategies.com
Sahir C. Surmeli
Member, Corporate (Boston)
(617) 348-3013
SSurmeli@mintz.com
Stanley A. Twarog
Member, Corporate (Boston)
(617) 348-1749
STwarog@mintz.com
David P. Dutil
Member, Corporate (Washington)
(202) 434-7425
DDutil@mintz.com
David J. Leiter
Senior Executive Vice President
of Government Relations,
ML Strategies (Washington)
(202) 434-7346
DJLeiter@mlstrategies.com
Chuck A. Samuels
Member, Federal/Energy
Efficiency (Washington)
(202) 434-7311
CASamuels@mintz.com
Faith L. Charles
Member, Corporate (New York)
(212) 692-6770
FLCharles@mintz.com
Daniel I. DeWolf
Member, Co-Chair, Ventures and
Emerging Company Group
Corporate (New York)
(212) 692-6223
DDeWolf@mintz.com
Peter Zlotnick
Member, Litigation (New York)
(212) 692-6887
PBZlotnick@mintz.com
Jason Altieri
Member, Corporate (Palo Alto)
(650) 251-7730
JAltieri@mintz.com
Brady Berg
Member, Corporate (Palo Alto)
(650) 251-7758
Gabriel Schnitzler
Real Estate (Palo Alto)
(650) 251-7720
GSchnitzler@mintz.com
BBerg@mintz.com
Jeremy B. Hayden
Of Counsel, Corporate (San Diego)
(858) 320-3024
JBHayden@mintz.com
Carl A. Kukkonen III
Member, Intellectual Property
(San Diego)
(858) 320-3035
CAKukkonen@mintz.com
Michael D. Van Loy
Intellectual Property (San Diego)
(858) 320-3059
MDVanLoy@mintz.com
Susan L. Foster
Corporate (London)
+44 (0) 20 7776 7330
SFoster@mintz.com
