Massachusetts House Passes Legislation that would Gut Mass Save and Set Back Energy Goals

As reported in Commonwealth Beacon this past week, "House Democrats have passed a major energy bill that aims to cut rising utility costs that have inflamed an affordability crisis in the state but would also pull back on the clean energy transition." What's being cut? The Mass Save program mostly. Mass Save is a statewide initiative largely funded by utility customers, and it provides residents, businesses, and renters with no-cost energy assessments, rebates, and incentives for energy upgrades. Through Mass Save, homeowners can receive 0% interest loans for qualifying energy-efficiency improvements.

The legislation passed the Massachusetts House on Thursday and will now pass to the state Senate. If approved, it would cut $1 billion from the program’s current $4.5 billion budget. Mass Save is credited with reducing overall energy demand and saving money for Massachusetts over the long term. It is currently one of the few tangible tools to advance the energy transition solely within the state’s control. In 2023 alone, Mass Save avoided 223,000 metric tons of CO2 emissions by promoting heat pumps, insulation, and energy efficient upgrades.

Critics of the Mass Save program point to its current funding source - the customers themselves. This can be considered a "hidden surcharge" akin to taxation. State representatives have called out a dearth of federal funding as the reasoning for this, but surely there is space in the state budget to support energy efficiency without the same scale of strain on consumers. For example, one funding solution could be to institute a statewide carbon tax that funds the program. Carbon taxes disincentivize fossil fuel use and create their own energy efficiency mechanisms. One downside to using a carbon tax to fund Mass Save is that the level of funding may not be dependable every year. Or, hear us out, if we stop asking ratepayer bills to fund Mass Save and move it to a state-tax-funded financial plan, the brunt of the burden could be paid by the wealthy based on their income! The people who cause the greatest climate impact from their objectively more consumptive lifestyles could support progress toward a livable future!

In addition to the possibility for other funding sources, when we reached out to an energy industry expert about the Mass Save cuts in the legislation, we were told that the proposed cut-backs "don't actually save money for Massachusetts residents in the end because they eliminate all of the energy efficient savings​​ from electric and gas bill reductions caused through the program, which net more savings than the program costs."​​​ Under the guise of affordability, legislators are attempting to remove Mass Save, where the numbers show that not having the program will cost ratepayers more​ over time.

As if taking funding from one of the few progressive climate programs in Massachusetts wasn't enough, the legislation also includes language to "ease political barriers to nuclear development by repealing a voter law that placed restrictions on it, and delay an offshore wind contracting deadline by two years to 2029." In case you're wondering, this is a redraft of the proposed Climate Rollback Bill that we reported on last fall. The only noticeable improvement is that the current draft does not include the Telecommunications, Utilities and Energy Committee's original proposal to change the state's binding mandate to reduce greenhouse gas emissions by 50% below 1990 levels by 2030. As of now, those mandates will be left in place, although the path to achieving them becomes increasingly less clear with diminished programs for energy efficiency.

Last week, climate activists poured into the State House on short notice to protest this legislation, which was noticed by mainstream news media. This is a great step! Now it's up to us to watch for the legislation's appearance in the Senate, and demand that our leaders consider the future over short term gains. Do you want to put pressure on the State House in the coming weeks? The State House Stand-Out gathers at the Massachusetts State House between 10 am and 2 pm on Tuesdays and Thursdays. If you're able to join in person, feel free to show up! If you're unavailable during those hours, you can email fossilfuels.standout.ma@proton.me to find out other ways to show support.