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H 3521

Family Court Judges, additional

2025-2026 Regular Session Introduced by Paula Calhoon and 2 co-sponsors

The act requires utilities to create Virtual Power Plant programs coordinating distributed energy resources to reduce peak load, with equity focus for low-income and environmental

Referred to Committee on Judiciary
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Bill Summary · H 3521

Summary — H.3521 (House No. 3521) — "An Act maximizing and optimizing small‑scale assets in communities"

Status & Sponsors
- Lead sponsor: Rep. Jack Patrick Lewis (filed/prefiled 12/05/2024; introduced 01/14/2025). Referred to Telecommunications, Utilities and Energy (2/27/2025). Hearing scheduled 10/09/2025 (A‑2). A new draft accompanied H.4744 (11/13/2025).
- Note: the bill docket lists an official title apparently unrelated to the bill text ("Family Court Judges, additional"). The body of the bill is focused on distributed energy resources (DERs) and virtual power plants (VPPs); an unrelated sentence about the Judicial Merit Selection Commission appears in the file and likely is extraneous.

Purpose
- Establish statewide deployment goals for distributed energy resources and require utilities to implement virtual power plant programs to coordinate customer‑sited DERs for peak load reduction and other grid services, with an emphasis on equitable participation by low‑income and environmental justice communities.

Key provisions
1. New Section 3C to Chapter 21N (energy goals)
- Secretary (of energy/environment) must set a goal that DER capacity equals or exceeds 20% of the Commonwealth’s total electric load by December 31, 2035.
- DERs include solar PV, energy storage, and other clean technologies (as defined in Ch.164 §1).
- Secretary must consult with the Department of Public Utilities (DPU) and Department of Energy Resources (DOER) to:
- develop a comprehensive plan, interim targets, barrier analysis and policy recommendations;
- annually track and report progress;
- ensure equitable distribution across communities.
- Secretary may adopt more ambitious targets or accelerate timelines.

  1. New Section 149 to Chapter 164 (Virtual Power Plant programs)

    • Defines “virtual power plant” (aggregation of DERs operated to provide grid services).
    • Requires each electric company to establish a VPP program to coordinate customer‑sited DERs for peak reduction and other services.
    • Utilities must file a VPP program proposal with DPU within 180 days of the section’s effective date.
    • Program must be implemented via a standard‑offer, open‑access tariff and include, at minimum:
      • participation for third‑party aggregators and direct customers;
      • compensation (upfront and performance‑based);
      • enhanced incentives and supports for low‑to‑moderate income and environmental justice populations (e.g., higher payments, upfront assistance, discounts, reduced/no‑cost enrollment, outreach, ownership pathways);
      • measurement & verification and consumer protection provisions.
    • DPU must review filings within 120 days, set annual procurement targets, consider performance incentives for distribution companies, and ensure programs maximize ratepayer benefits (peak reduction, renewable integration, avoided infrastructure).
    • Electric distribution companies (EDCs) are prohibited from owning resources that participate or acting as aggregators under the program.
    • Municipal light plants may opt in via an informational filing with DOER and DPU.
    • DPU to promulgate implementing regulations.

  2. Amendment to Chapter 164 §1E

    • DPU is directed to consider financial performance‑based incentives/penalties and metrics to facilitate DER interconnection; if approved, DPU must include a monitoring/review framework.

Who is affected
- Electric distribution companies/utilities (must design and file VPP programs; cannot own participating resources).
- DER owners and third‑party aggregators (new market and compensation pathways).
- Ratepayers (potential benefits from peak reduction, avoided infrastructure costs; program costs could affect rates depending on design).
- Low‑to‑moderate income households and environmental justice communities (explicitly targeted for enhanced incentives and enrollment assistance).
- Municipal light plants (may opt into programs).

Timeline & procedural notes
- DER capacity target: 20% of total electric load by Dec 31, 2035.
- Utilities: file VPP proposals within 180 days of the section taking effect; DPU review within 120 days of filing.
- DPU rulemaking and establishment of annual procurement targets will follow filing/approval.

Potential impacts and considerations
- Could accelerate deployment of distributed solar, storage, and aggregated DERs; improve grid flexibility and reduce peak demand.
- Raises implementation questions about compensation design, cost allocation/rate impacts, interconnection timelines, data/privacy, and aggregator oversight.
- Prohibiting utility ownership of participating resources aims to avoid conflicts of interest but may affect deployment models and investor participation.
- Equity provisions target increased participation and benefits for underserved communities but require careful program design to be effective.

Related/ancillary items
- Identified related bill HD 4155 (replaces).
- A revised draft was accompanied under H.4744 (11/13/2025).

Compiled from official sources — confirm details with the bill’s official record.

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