Bill would create GREEN Initiative to retrofit low‑ and moderate‑income housing in gateway cities

A bill filed Jan. 15 in the Massachusetts House would create the Gateway Cities Renewable, Efficient, and Electrified Neighborhoods Initiative, known as the GREEN Initiative, to retrofit low‑ and moderate‑income housing in qualifying gateway municipalities. Representative Natalie M. Higgins (4th Worcester) and Representative Michael P. Kushmerek (3rd Worcester) filed the bill as House No. 3504.

The bill would place the GREEN Initiative within the Department of Energy Resources and allow the department to contract with the Massachusetts Clean Energy Center to administer all or part of the program. It directs electric and gas distribution companies and municipal aggregators with certified clean energy plans to transfer money into a new GREEN Initiative Account each year to administer the initiative, collect data and provide incentives and rebates; transfers in any year would be capped at $30 million. The bill also gives the Department of Public Utilities authority to adjust charges assessed to electric and gas customers under sections 19 and 21 of chapter 25 to help meet the objectives of the energy efficiency plans named in the text.

Under the bill, projects would be carried out by municipal governments, nonprofit organizations or other sponsor organizations that apply to the department. Each project must retrofit low‑income units (defined as households earning below 50 percent of area median income) or moderate‑income units (households earning 50 to 80 percent of area median income) so they are highly energy efficient, use clean heating technologies (for example, air‑source or ground‑source heat pumps and solar hot water systems) and clean cooking technologies (for example, induction or radiant electric stoves). Where possible, retrofits should be powered by on‑site renewable electricity.

The bill defines “highly energy efficient” by reference to passive house elements such as continuous insulation, airtight envelopes, high‑performance windows and balanced heat‑and‑moisture‑recovery ventilation. It directs the department to prioritize retrofits of buildings with six or fewer housing units, and to assist sponsors in assessing technology options and identifying qualified contractors. The department is instructed to work with the Department of Public Utilities and other state agencies to provide a single application pathway for sponsor organizations, building owners and tenants to qualify for applicable state, utility and federal financial assistance.

To limit displacement risk and encourage longer‑term affordability, the bill authorizes incentive structures to encourage property owners to maintain units as low‑ or moderate‑income housing after retrofits, and it specifically includes tenant‑owner weatherization agreements intended to prohibit rent increases for a reasonable period after a retrofit unless those increases are demonstrably unrelated to the weatherization work.

The GREEN Initiative Account may also accept grants and gifts from foundations, individual donors and state or federal agencies without the $30 million annual limit. The department may cover pre‑weatherization costs such as electrical service upgrades when necessary so that efficiency and electrification upgrades can be completed. The bill requires the department to set participation goals for minority business enterprises and women business enterprises in projects funded by the initiative.

Sponsor organizations must hold at least one public event to share project results, make project information available online in the predominant languages spoken in the community, and provide interpretation services at public events; the department would provide financial assistance for translation and interpretation. The department must collect quantitative and qualitative data on energy savings, utility bill savings, indoor and outdoor air quality improvements, reductions in greenhouse gases and other pollutants, and resident comfort and safety. The bill requires the department to publish evaluations no later than one year after the end of the second year and every two years thereafter and to protect personally identifying information about owners and tenants.

The bill also requires the department to convene a task force to advise implementation. The task force would include representatives of the Executive Office of Energy and Environmental Affairs; the Department of Energy Resources; the Department of Public Utilities; the Department of Environmental Protection; the Massachusetts Clean Energy Center; the Department of Housing and Community Development; the Executive Office of Labor and Workforce Development; the Department of Public Health; at least two low‑ or moderate‑income residents of qualifying municipalities; and at least two nonprofit representatives from qualifying municipalities. The task force must hold at least four public hearings in qualifying municipalities during the first year after the law’s effective date and at least two hearings in each subsequent year.

House No. 3504 also defines terms used in the bill, including “gateway municipality” (as defined in section 3A of chapter 23A), “smaller qualifying municipality” (a municipality meeting gateway criteria except with a population of 35,000 or less), and “renewable energy generating source” (as defined in section 11F of chapter 25A). The bill was filed with the House and listed under Telecommunications, Utilities and Energy.

If enacted, the measure would create a multiagency program and an annual funding stream (subject to the $30 million cap) designed to accelerate energy efficiency, electrification and renewable generation in low‑ and moderate‑income housing in qualifying Massachusetts municipalities.