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H 3567

Safety software

2025-2026 Regular Session Introduced by Brandon Guffey and 3 co-sponsors

Requires utilities to pay cash for distributed energy credits after six months or within 30 days of account closure, with a deferral option and regulatory rules.

Referred to Committee on Labor, Commerce and Industry
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Bill Summary · H 3567

Summary — H 3567 (2025): “An Act relative to energy generation payments”

Status and sponsors
- Bill No.: H 3567 (House Docket No. 2772)
- Primary sponsor: Rep. Aaron L. Saunders; cosponsors: Jacob R. Oliveira and Sen. James B. Eldridge
- Prefiled: 12/12/2024; filed: 1/16/2025. Introduced/read first time and referred to committee in January–February 2025. Referred to Telecommunications, Utilities and Energy (and earlier to Labor, Commerce and Industry). Hearing scheduled for 10/09/2025 (1:00–5:00 PM, A‑2).
- Classification: Bill

Note on the record: the file included a large, unrelated draft from South Carolina concerning “third‑party safety software providers.” That South Carolina draft is not part of the Massachusetts bill described below; this summary covers the Massachusetts text (energy generation payments).

Purpose / intent
- Ensure that customers who accumulate monetary credits from distributed energy generation (credits under G.L. c.164, §139(a)(1)) receive payment for those credits after a fixed holding period or when closing their utility account, and to require the Department to adopt implementing regulations.

Key provisions (substantive)
1. Payment eligibility after six months
- A distribution company must pay a customer for a credit under G.L. c.164, §139(a)(1) if that credit has been carried forward for six months or more.
- To determine the “age” of credits, the bill requires applying any applicable costs against the most recently issued credit (i.e., costs are offset against newest credits first).

  1. Option to defer

    • A customer eligible for payment under the six‑month rule may choose to defer receiving the payment.

  2. Payment on account closing

    • A distribution company must pay any outstanding credit under §139(a)(1) within 30 days after the customer closes their account with the distribution company.

  3. Characterization of payments

    • Payments made under these provisions “shall not be considered” credits, rebates, environmental attributes, renewable energy credits (RECs), or other payments/offsets that could be construed as attributable to a renewable energy system. (This is intended to clarify that the cash payments are distinct from renewable attributes.)

  4. Regulatory implementation

    • The Department (presumably the Department of Public Utilities or other named department per statute) must promulgate regulations that include: a payment schedule (at least annually), methods of payment (including electronic transfer option), notice procedures informing customers of eligibility, and the administrative process for customer deferral of payments.

Who is affected
- Distribution companies (electric utilities) in Massachusetts: new payment, accounting, notification, and reporting/administrative duties.
- Customers with distributed generation systems or netting arrangements who accumulate monetary credits under G.L. c.164, §139(a)(1), including residential and commercial customers who may receive cash for long‑held credits or upon account closure.
- Potentially developers/operators of behind‑the‑meter generation and community/shared solar projects insofar as credit treatment and renewable attribute characterization are implicated.

Potential impacts and considerations
- For customers: improved ability to convert long‑held utility credits to cash (after six months) or to receive prompt payment upon account closing; option to retain credits by deferral remains.
- For utilities: cash‑flow and administrative impacts from more frequent payments and the need to track credit age/apply costs against most recent credits; need to implement secure electronic payment mechanisms and customer notices per forthcoming regulations.
- For renewable accounting: explicit language separating these payments from RECs/attributes reduces ambiguity about attribute ownership/transferability.
- Regulatory work: Department must issue regulations detailing timing, payment mechanisms, notices, and deferral processes before full implementation.

Legislative next steps
- Bill was referred to committee(s) and a public hearing is scheduled for 10/09/2025. Outcomes will depend on committee review, possible amendments, and subsequent floor action.

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

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