Mass. bill would create $300 million Zero Carbon Renovation Fund for existing buildings

House bill No. 3577, filed Jan. 16, 2025, would create a Zero Carbon Renovation Fund in Massachusetts and authorize a transfer of at least $300 million to pay for energy-efficiency, electrification and low‑embodied‑carbon renovations of existing buildings, including affordable housing, low‑ and moderate‑income homes, municipal buildings and public schools.

The bill was filed by Rep. Andres X. Vargas of Haverhill and Rep. Manny Cruz of Salem and lists more than a dozen co‑petitioners. It would add Section 29 to Chapter 21A of the General Laws and designate the Executive Office of Energy and Environmental Affairs (EEA) as administrator, working in consultation with the Department of Energy Resources, the Massachusetts Clean Energy Center, the Governor’s Office of Climate Innovation and Resilience, the Executive Office of Housing and Livable Communities, the Massachusetts School Building Authority, the Executive Office of Economic Development, the Massachusetts Housing Partnership Fund Board and the Massachusetts Development Finance Agency.

Under the bill, eligible projects would include renovations to make buildings “highly energy efficient,” convert heating, hot water and cooking systems to all‑electric technologies, install on‑site renewable energy, and use low‑embodied‑carbon materials. The fund could also cover necessary remediation identified as prerequisites to a zero‑carbon renovation, such as mitigation of mold, asbestos, insect or animal infestation, lead paint abatement, electrical upgrades to meet current code or support electrification, accessibility upgrades required for compliance with the Americans with Disabilities Act and structural repairs to accommodate the renovation.

The proposed language gives priority to affordable housing and homes of low‑ or moderate‑income households, public schools and other buildings located in environmental justice communities (as defined in Chapter 30, Section 62) and in gateway cities. The bill also states that money credited to the fund may include transfers, deposits, gifts, grants or contributions and that any balance remaining at the close of a fiscal year would not revert to the General Fund but remain available for subsequent years.

The draft includes a specific budget line that would transfer not less than $300,000,000 to the Zero Carbon Renovation Fund. The bill directs that, "to the maximum extent feasible," fund monies be allocated and spent through existing programs that support decarbonization activities.

House documents list Telecommunications, Utilities and Energy as the reporting committee for the bill. As introduced, House bill No. 3577 is a legislative proposal and has not been enacted; it must proceed through committee consideration and the legislative process before becoming law.

If enacted as written, the fund would create a dedicated statewide source of financing for retrofits that state sponsors say are necessary to reduce emissions from existing buildings and to address preexisting building conditions that impede electrification and energy‑efficiency upgrades. The bill does not specify the final funding sources beyond the proposed transfer language, nor does it set program rules or application timelines — those details would be determined in implementing regulations and agency guidance if the bill becomes law.