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H 3540

Income tax credit

2025-2026 Regular Session Introduced by Robert Williams

Mandate equitable allocation and tracking of clean energy benefits so EJ and low-income communities receive benefits proportional to their populations.

Referred to Committee on Ways and Means
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Bill Summary · H 3540

Summary of H.3540: An Act advancing clean energy equity

Overview

H.3540, introduced February 27, 2025 by Rep. Steven Owens, is a Massachusetts bill titled “An Act advancing clean energy equity.” The measure focuses on ensuring that the benefits of clean energy spending are equitably distributed across the Commonwealth, with particular emphasis on environmental justice communities and low-income areas. The bill would amend Chapter 21A and establish new responsibilities for the Undersecretary of Environmental Justice and Equity, in coordination with relevant state agencies and stakeholder groups.

Purpose and intent

  • Guarantee an equitable allocation of clean energy benefits across the state, proportional to the share of the population residing in environmental justice populations or designated low-income communities.
  • Develop and implement a formal definition of “clean energy benefits” that accounts for net burdens, and include benefits from clean energy programs, pollution reduction, transportation, economic development, and energy cost reduction.
  • Create a framework to track, monitor, and report on the allocation of clean energy benefits, ensuring alignment with social benefits and burdens considerations.

Key provisions

Section 1: Expanded oversight and definitions

  • Adds two new paragraphs to Section 29 of Chapter 21A (as amended by 2024’s Chapter 239).
  • The Undersecretary of Environmental Justice and Equity:
    • Oversees equitable allocation of clean energy benefits across the Commonwealth.
    • Ensures allocation is proportional to EJ populations or designated low-income communities.
    • Sets compliance goals and issues compliance reports on the same schedule as emission limits under Chapter 21N, Section 4(g), regarding delivery of benefits to EJ communities.
    • Consults with a defined working group of EJ stakeholders, the Environmental Justice Council (Chapter 30, Section 62L), local governments, clean energy advocates, public health experts, and other appropriate stakeholders.
    • Develops, reviews, and updates a definition of clean energy benefits, including net burden considerations and cross-program benefits (state programs, pollution reduction, transportation, economic development, energy cost reduction).
    • Establishes a framework for tracking and monitoring benefit allocation; coordinates with agencies overseeing clean energy programs to integrate definitions into program reviews.
    • Requires program reviews to detail amounts, allocation, barriers to participation, and measures to reduce barriers (e.g., community partnerships, multilingual options, low/no-cost financing).
    • Requires alignment with social benefit/burden definitions in Section 30 and coordination with the Energy Efficiency Advisory Council (Chapter 25, Section 22) and the Grid Modernization Advisory Council (Chapter 164, Section 92C).
    • Addresses rental-property-specific challenges and protections related to clean energy installations.
    • Calls for regular updates to benefit levels every five years, beginning in 2025.
    • Allows adoption of regulations as necessary for implementation.

Section 2: Stakeholder engagement timeline

  • The first stakeholder group meeting must occur no later than January 1, 2026.

Who/what is affected

  • Undersecretary of Environmental Justice and Equity (new oversight role).
  • Environmental Justice communities and designated low-income communities.
  • State agencies overseeing clean energy programs (to integrate the defined framework).
  • EJ Council, Energy Efficiency Advisory Council, Grid Modernization Advisory Council.
  • Renters and rental properties affected by clean energy resource deployment.

Procedural and timeline notes

  • Referred to the House Committee on Telecommunications, Utilities and Energy on February 27, 2025.
  • Hearing rescheduled to October 16, 2025 (1:00 PM–5:00 PM) in Committee A-1 and via virtual session; updated to reflect a later end time.
  • Related bill reference: HD 1885 (replaces).

Potential impact

  • Aims to improve equity in access to clean energy benefits, reduce barriers to participation, and ensure benefits correlate with EJ and low-income populations.
  • Requires robust data collection, monitoring, and periodic updates, potentially influencing how clean energy programs are reviewed and redesigned.
  • Could lead to added administrative requirements for state agencies and program administrators, with a focus on tenant protections and inclusive outreach.

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

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