Mass. House voting Thursday on major energy affordability bill

BOSTON — The Massachusetts House plans to vote Thursday on a long-awaited energy affordability proposal that would take a $1 billion bite out of the Mass Save program and attempt to hold utility companies accountable in a volatile energy landscape.

A House leader said Bay Staters would see “immediate cost savings” because of the cuts to Mass Save, the state’s energy efficiency program. Customers would also get rebates when electric utilities and energy suppliers are penalized for not purchasing enough renewable energy.

The wide-ranging bill also addresses nuclear energy, offshore wind, and solar power.

Following a winter blizzard and months of elevated energy costs, the House Ways and Means Committee released the new bill on Tuesday. It “will save ratepayers $9 billion over the next 10 years by cutting unnecessary funding for Mass Save, diverting environmental compliance payments from electricity suppliers back to residents, and by positioning Massachusetts to further diversify and modernize its energy grid,” said House Speaker Ron Mariano and Ways and Means Chairman Aaron Michlewitz.

The bill is a redraft of the legislation (H 4744) that the House’s energy committee supported in the fall, but it does not include the committee’s proposal to change the state’s binding mandate to reduce greenhouse gas emissions by 50% below 1990 levels by 2030. 

The latest draft is the product of meetings House leaders held with all members, Michlewitz said.

The $1 billion cut to the Mass Save budget would come primarily from its marketing, advertising and administrative budgets, Michlewitz said, based on reports of inefficiencies in those departments. It would also require a Mass Save eligibility review and require the Office of Inspector General to review and report on the program by July 2027. 

Michlewitz said it was time to “look under the hood” of Mass Save “to see how we can be more efficient with the program, and also understand why it has grown exponentially over the last decade.” 

Under the bill, the Department of Energy Resources, in consultation with the Massachusetts Clean Energy Center, would have to return 70% of alternative compliance payments (ACPs) to ratepayers until July 1, 2029. Electric utilities and energy suppliers pay penalties, known as ACPs, if they don’t meet the state’s renewable energy purchasing requirements.

After July 1, 2029, Michlewitz said, “a permanent trigger” would require ACP payments to be returned to ratepayers under certain conditions. 

Michlewitz expects Bay Staters will see “immediate cost savings” as a result of the ACP rebates and Mass Save cuts. Those provisions, along with a reduction in net metering credit amounts and certain charge reforms, are anticipated to save ratepayers almost $3 billion, according to the Ways and Means Committee.

Energy affordability has become a central policy and political issue on Beacon Hill and in the 2026 gubernatorial race. Gov. Maura Healey has filed her own energy affordability plan and in January pledged to oppose any major rate hikes proposed by utilities. She also announced that the state would spend $180 million as part of a bid to temporarily reduce residential electric and gas bills this winter. 

“There’s no magic bullet and no one policy initiative that’s going to allow, or force our energy bills to go down,” Michlewitz said Monday evening. “And in fact, it’s more about just trying to make sure they don’t continue to go up at the rate that they have been over the last couple of years.” 

The bill features longer-term cost-saving attempts as well. Michlewitz named provisions that would expand clean energy procurement authorities for the Department of Energy Resources, allow high-voltage transmission lines on state highways, and allow a smart solar permitting platform to expedite reviews so more projects can launch faster. The state would also be able to develop an energy storage incentive program. 

Bill addresses nuclear energy, offshore wind, and solar power

The bill addresses alternative energy sources but does not touch the 2030 climate mandates. Environmental advocates in the fall slammed the Telecommunications, Energy and Utilities Committee bill for its proposed rollbacks.

“This is overall a better version of the affordability bill, but it includes a ruinous attack on the Mass Save program and doesn’t make any attempt to rein in gas system costs,” Caitlin Peale Sloan, the Conservation Law Foundation’s vice president for climate and energy, said in a statement Tuesday. “In a time when the federal government is doing all it can to bow down to expensive, price-volatile fossil fuels, we need state leaders to have the courage to lead. The reality is that clean energy is affordable energy. We have to go all in on building clean energy and leveraging energy efficiency — that’s what families and businesses are asking of our legislature.” 

Michlewitz said the state is under strain as it tries to cut energy costs and build clean energy. The Trump administration is “crippling our ability to diversify our energy sources, particularly around wind and solar,” Michlewitz said. “We are very excited that we are now connected to the hydropower from Quebec, but all these other pieces being undercut by our federal partners, or a lack of partnership in these spaces, has put a lot of strain on the ability for us to provide cost savings while also continuing to diversify our energy sources.” 

Between President Donald Trump taking aim at the offshore wind sector and utility costs skyrocketing across Massachusetts, the state’s energy horizon has exploded since a 2021 climate law codified the state’s commitment to net zero emissions by 2050. The law requires that emissions reductions reach at least 50% below 1990 levels in 2030. In its 2025 Massachusetts Climate Report Card, the state emphasized that the Trump administration has made progress more difficult due to a reduction in federal aid, preemption of state-level climate initiatives and efforts to halt offshore wind development.

The Ways and Means proposal would extend to mid-2029 (from mid-2027) the deadline for the state to secure additional “cost-effective long-term contracts” for offshore wind energy generation, according to a committee summary. Massachusetts has been on a decade-long quest for offshore wind power and so far has landed one lasting contract for about 800 megawatts: with Vineyard Wind, which is nearing completion and generating power for the electrical grid.

The bill would also require the state to establish an offshore wind pre-development and project acceleration program as a way to partner with offshore wind developers, the committee said.

The bill attempts to remove a barrier to nuclear energy in Massachusetts: it would repeal a 1982 law that requires voter approval for new nuclear power plants and low-level radioactive waste facilities. Michlewitz said the provision, proposed in Healey’s bill last year, “gives us another potential option to diversify our energy sources.”

Along with allowing smart solar permitting, the bill would codify the Solar Massachusetts Renewable Target program and create some solar consumer protections. The proposal touches on the thermal energy sector by authorizing gas companies to develop geothermal energy infrastructure for single customers.

Bill adds accountability rules for companies

Michlewitz pointed to the bill’s accountability provisions, like placing consumer protection around competitive electric suppliers and giving municipalities the option to opt-out of competitive electric supply. It would also increase reporting requirements for electric and gas companies, natural gas suppliers, and others. 

An electric rates task force would make recommendations on the cost of electricity in the state, with a report due by September 2027. The bill would also require gas companies to implement default budget billing for residential customers. Distribution and gas companies would have to provide discounted rates for low-income customers and eligible moderate-income customers. 

Boston University Statehouse reporter Jamie Perkins contributed reporting for The Light.