July 2024 Legislative Update

Senate Passes Housing Bond Bill Recognizing Infrastructure Connection

In a quick turnaround after the Massachusetts House of Representatives passed a housing bond bill at the start of the month, the Massachusetts Senate passed its version of the housing bond bill that authorized more than $5 billion in borrowing to spur housing production while proposing numerous housing policy changes. As reported by the State House News Service, the bill, based on legislation Governor Maura Healey filed in October, is designed to address the state’s low housing inventory and affordability.

Specifically, the Senate’s housing bill authorizes $5.1 billion in long-term capital spending on housing. Among some of the policy changes contained within the Senate proposal are changes to: allow for accessory dwelling units, or ADUs, by right in single-family zoning across the state; allowing tenants to seal previous eviction records in certain cases; expanding the designation to address housing availability in “seasonal communities,” and allowing a simple majority voting threshold for inclusionary zoning ordinances and bylaws at the local level. The legislation did not include a controversial real estate surcharge that drew heavy lobbying from housing advocates and industry alike.

UCANE, along with the American Council of Engineering Companies of Massachusetts and the Massachusetts Water Works Association, were pleased with the Senate’s proposal to significantly invest in the HousingWorks program ($300 million) with a dedicated use of $100 million for water infrastructure in support of housing growth. In communications with Senators prior to the release of the Senate’s housing bond bill, the triumvirate of groups, in supporting the HousingWorks program, stated “the ramping up and growth of this program in unison with the anticipated growth in need as a result of the significant increase in housing production” is a successful model.

Additionally, the Massachusetts Senate adopted an amendment, sponsored by Senator Mike Moore, to review the interbasin transfer act in light of housing and PFAS remediation efforts. In advocating for the language, UCANE, ACECMA, and the MWWA argued “[s]ince the ITA was passed exactly 40 years ago, it is time to study this law to see whether it is meeting its original goal – particularly where there is an ability to meet a community’s water needs for developing new, affordable housing and/or addressing PFAS.”. While it was not adopted, Senator John Cronin offered a separate amendment that proposed looking at funding the matching grant program for entry into regional water authorities. The program, which was established as part of Chapter 259 of the Acts of 2014, has never been funded. Finally, Minority Leader Bruce Tarr offered an amendment relative to the elimination of the entrance fee for joining the Massachusetts Water Resources Authority (MWRA) for municipalities in need. Although the MWRA has a temporary waiver in place, the amendment, which was not adopted, would have made it permanent.

As a reminder, the Massachusetts House of Representatives passed a five-year, $6.2 billion  housing bond bill, calling for $2 billion to fix the state's aging public housing stock and $1 billion to expand the MWRA’s service area into more suburbs with the goal of spurring housing production. The Senate proposal did not include the $1 billion proposed for the MWRA expansion program.  

The House and Senate will now enter conference committee negotiations in an effort to send a final bill to Governor Healey before July 31^st. To view the Senate’s housing bond bill, please visit: https://malegislature.gov/Bills/193/S2850.

House Passes Economic Development Bond Bill

While the Senate was passing its version of the housing bond bill, the Massachusetts House of Representatives passed an economic development bill that included an array of investments and policy initiatives that aim to bolster the life sciences, clean energy technology, and manufacturing industries, while retaining a larger focus on making Massachusetts more affordable and competitive. Funded at $3.4 billion in bond authorizations, with an additional $700 million worth of tax credits, the legislation is designed to push the Commonwealth towards a lead role for key industries of the future, according to a press release by the Office of the Speaker of the House.

Key bonding authorizations included $500 million for the Massachusetts Life Sciences Center to provide grants and loans in order to grow the life sciences industry in Massachusetts; $250 million for the Mass. Impact grant program to support large transformational projects that will drive economic growth; $200 million for the Massachusetts Clean Energy Center (MassCEC) to support the research and commercialization of climate technology across the state; $200 million for the MassCEC to invest in research, and in the implementation of offshore wind infrastructure. Of particular note to UCANE members, the House economic development bill proposes $400 million for MassWorks public infrastructure grants to municipalities.

In passing its proposed economic development, the House of Representatives also included a variety of tax credits including:

• Life Sciences Tax Credit. Increases the annual amount of life sciences tax credits from $30 million to $50 million. It decreases the length of time that the certification for a life sciences company is valid from five years to three years, and also repeals the Angel Investor Tax Credit.
• Climatetech Industry Incentive Program and Tax Credit. Creates a program that is modeled after the life sciences tax incentive program, capped at $30 million per year, to expand the Climatetech industry. Companies would be able to claim credits for: net new permanent full-time employees; capital investments; and eligible research costs. It also creates a sales tax exemption for construction, remodeling, and remediation of certain Climatetech commercial facilities.
• Economic Development Incentive Program (EDIP) Tax Credit. Removes the $500,000 per calendar year cap on the total amount of refundable EDIP tax credits that may be awarded for a certified economic development project and removes the $5 million cumulative per year cap on refundable tax credits.
• Live Theater Tax Credit. Establishes a five-year live theater tax credit pilot program and tax credit, capped at $7 million per year, to support pre-Broadway, pre-off Broadway, national tour launches, and regional professional theater productions.
• Digital Interactive Media Tax Credit. Establishes a five-year digital interactive media tax credit pilot program, capped at $5 million per year, to support the production of video games in the Commonwealth. It also establishes a sales tax exemption for digital interactive media production companies and students for production expenses.
• Internship Tax Credit. Establishes a tax credit for employers, capped at $100,000 per employer and $10 million total credits annually, that employ for 12 weeks a recent graduate of a public or private institution of higher education in Massachusetts.

The House legislation also establishes a five-year surety bond assistance pilot program, subject to federal approval by the United States Treasury, to assist economically and socially disadvantaged businesses to secure contracts for capital projects in the form of technical or financial assistance. While the House Economic Development Bill also contained a wide variety of policy initiative as well; there was one that drew interest from a wide variety of media publications ranging from the Boston Globe and Boston Herald to the Springfield Republican: project labor agreements (PLAs). Pushed as a response to the City of Springfield’s saga and eventual court fight regarding the same, the included language authorizes public agencies or municipalities to use PLAs if it is in the best interest of the Commonwealth or a municipality, and directs the Massachusetts Department of Labor Standards to promulgate regulations to increase diversity of contractors in PLAs. Interestingly, almost every major print publication has sounded the alarm over the use of PLAs, citing an increase in costs and project length.

The Massachusetts Senate was expected to take up its economic development package the week after the July 4^th holiday. To review the House economic development bill, please visit: https://malegislature.gov/Bills/193/H4804.

Senate Passes Climate Bill; Concerns Raised About Cost and Gas Provisions  

The Massachusetts Senate passed comprehensive climate legislation in June to make systemic changes to the state’s clean energy infrastructure that will help the state achieve its net zero emissions by 2050 goals, expand electric vehicle (EV) use and infrastructure, and protect residents and ratepayers. According to a press release from the Office of the Senate President, the Senate’s climate bill aims to assist in the development of infrastructure essential for the fight against climate change, including new solar, wind, and storage facilities. It will also enhance the electric grid to support getting clean energy to residents efficiently and in the needed capacities to power homes, businesses, and vehicles.   

The Senate’s broad ranging climate legislation modernizes laws related to cost control for ratepayers; siting and permitting; decarbonization; electric transportation; clean tech innovation; emissions reduction in state operations; and natural gas infrastructure. Among some of the specific initiatives, the legislation would:

§  Ban Competitive Energy Suppliers Soliciting Individual Customers. To save residents’ money and protect residents from unfair and deceptive practices, the bill would ban competitive energy suppliers from enrolling new individual residential customers. According to the Attorney General’s Office and the Department of Public Utilities (DPU), data analyses show that consumers lost more than $577 million to competitive electric suppliers between July 2015 and June 2023. The Senate previously adopted this policy in April.  

§  Expedite Siting and Permitting. The siting and permitting provisions, modeled on the work of a commission of diverse stakeholders established by the Healey-Driscoll administration, will consolidate the review of clean energy siting and permitting and expedite the timeline of projects. Large projects that require state, regional, and local permits will be consolidated into a single permit that must be decided upon in 15 months. Small projects with multiple local permits will also be consolidated into a single permit and must be decided upon in one year. The legislation formally establishes the Office of Environmental Justice and Equity (EJE), the Office of Public Participation at the Energy Facilities Siting Board (EFSB), and the Division of Siting and Permitting at the Department of Energy Resources (DSPDER). Each office would be charged with engaging with communities and applicants in their respective areas to ensure a thorough and community-centered review.

 

§  Expand the MOR-EV Program. The legislation would expand the state’s MOR-EV program through 2027, which gives residents $3,500-$6,000 for the purchase of new or used electric vehicles. It would allow residents who own parcels within condominiums, homeowner associations, and historic districts to install EV chargers, and authorize condo boards to install EV chargers on community parcels.  It will bring coordination to EV infrastructure expansion, by centralizing the deployment of resources with the Electric Vehicle Infrastructure Coordinating Council (EVICC), and directing DPU to make it easier to install pole-mounted chargers that often are used in parking spots and on streets. Of note to UCANE, an amendment to the bill would also direct the EVICC to focus on what is needed to address charging for medium and heavy-duty trucks. 

§  Natural Gas Infrastructure Replacement Reform.In one of the more controversial sections of the Senate climate bill, the Massachusetts Department of Public Utilities (DPU) will be directed to consider greenhouse gas impacts when it weighs a petition by a gas company to expand its territory. Gas companies will be allowed to pursue geothermal projects and networked heat pump systems, new opportunities that are undergoing successful testing in communities in Framingham and Lowell.  As the gas system needs continued upgrades, the legislation will shift the system from automatically replacing leak-prone pipes, to instead considering more targeted repairs, or decommissioning the line altogether if a more climate friendly alternative exists. A coalition of labor and business groups have strongly opposed this measure as decreasing the safety of the Commonwealth’s gas system while driving up costs for consumers – despite overall efforts to reduce the cost of energy.

While the Senate legislation is now before the House of Representatives, its’ prospects as drafted are unclear. House leadership has repeatedly stated that they are interested in the siting and permitting reforms, but not an entirely new climate bill at this time. Either way, the Massachusetts legislature has until July 31 to come to an agreement on new climate/energy related measures. To view the Senate’s climate legislation, please visit: https://malegislature.gov/Bills/193/S2838.

City of Boston Launches New Planning Department

Late June saw Boston Mayor Michelle Wu mark the first official day of the City of Boston’s new Planning Department. According to a press release from the Mayor’s Office, this is the first time in 70 years that Boston has had a Planning Department, restoring planning as a core function of City government.

The establishment of the Planning Department is a part of Mayor Wu’s vision to transform planning and development in Boston, and complements other initiatives including a home rule petition to end urban renewal and establish a new mission focused on resilience, affordability, and equity; the establishment of the Planning Advisory Council; city wide zoning reform, including the “Squares + Streets” initiative to increase the availability of housing near transit, the modernization of the development review process and a design framework for guiding future development. 

The Planning Department is charged with developing comprehensive short and long term plans for Boston’s built environment, establishing a consistent and predictable zoning code for the city, advancing exceptional and inclusive design standards, providing predictability to guide development that is responsive to community needs, and planning for the effective use of public real estate. It is through these actions that the Department will address Bostons’ greatest challenges of resilience, affordability, and equity. The Planning Department will work to build trust with communities through transparent processes that embrace predictable and responsible growth.

The new Planning Department includes the divisions of planning & zoning, development review, urban design, and real estate, as well as support staff. Moving forward, the Planning Department budget will be reviewed through the City’s budget process, like all other City departments. Staff of the Department will support the BPDA Board, which will remain the City’s Planning Board, reviewing development projects, planning and zoning initiatives, and land acquisitions and dispositions. Planning Department staff will also support the other parts of the Planning Cabinet, which includes the Boston Civic Design Commission, Zoning Commission and provide recommendations to the Zoning Board of Appeal. The majority of BPDA staff have transitioned into jobs with the City of Boston and are now employees of the new Department. 

News in Brief

MassDOT to Hold Hearing on Vulnerable User (Sideguard) Regulations. The Massachusetts Department of Transportation (MassDOT) will hold a hybrid public hearing on Friday July 12, 2024 at 10:00 a.m. and accepted written public comment until 5:00 p.m. on the same day, concerning the implementation of a state law governing the use of certain safety equipment on state contracted trucks. Specifically, the proposed regulatory action is required under Chapter 358 of the Acts of 2022 which amended Mass. Gen. Laws ch. 90, §7, and provides that a motor vehicle, trailer, semi-trailer or semi-trailer unit classified as a class 3 or above by the Federal Highway Administration, with a gross vehicle weight rating of 10,001 pounds or more, that is leased or purchased by the Commonwealth on or after January 1, 2023, or operated under a contract with the Commonwealth on or after January 1, 2025, shall be equipped with lateral protective devices, convex mirrors, crossover mirrors and backup cameras. UCANE, as well as other organizations, will be submitting testimony on the issue in an effort to ensure a reasonable compliance system that benefits all parties subject to these new regulations. For additional information, please visit: www.mass.gov/info-details/truck-safety-devices.

Senate Passes Wide Ranging Plastics Bill; Includes Flushable Wipes Notice. A bill that combines a half-dozen environmental actions, touching on extended producer responsibility for several materials, plastic bans and access to both bulky plastic and organics recycling, was passed by the Massachusetts Senate on the same day they took on a broad climate and energy bill. The legislation, Senate Bill 2833, An Act to Reduce Plastic, would ban single-use plastic bags and require a 10-cent charge for paper bags, make straws and plasticware available by request only, ban state agencies from buying plastic bottles that are smaller than 21 fluid ounces, create a statewide recycling program for large plastic durables such as car seats, and create a study on how well the state is doing in providing access for organics recycling. The legislation also also calls for a 21-person commission to create a report on packaging, paint, mattresses and electronics by March 2026, and require better labeling of non-flushable wipes – specifically identifying which of these products can and cannot be actually flushed. A copy of the legislation, whose prospects in the House remain unknown, can be found at: https://malegislature.gov/Bills/193/S2833.