As a further update to our blog series on the landmark 2024 Massachusetts Clean Energy Bill, this
post summarizes some changes to Massachusetts law affecting natural
gas use. Previous posts addressed how the Clean Energy Bill created
a Council to address embodied carbon, aims to transform the
deployment of electric vehicles ("EVs") and EV charging
infrastructure in Massachusetts (here, here and here) and introduced changes to permitting and siting.
The new law addresses natural gas through several different
avenues, with some changes intended to limit the expansion of
natural gas distribution systems in the Commonwealth:
- The Clean Energy Bill modifies the statutory definition of "gas company" to allow companies to make, sell, or distribute "utility-scale non-emitting thermal energy, including networked geothermal and deep geothermal energy." This expanded definition allows natural gas utilities, which were originally restricted from providing alternative forms of energy, to provide heating and cooling to their customers through other means. Networked geothermal projects, which provide heat by connecting water-filled pipes in the street to building heat pumps, are already operating at a small scale in Massachusetts; in June 2024, Eversource Energy began delivering cooling and heating to 36 buildings in Framingham, MA, through its networked geothermal pilot project, the first of its kind owned by a utility.
- The Bill substantially modifies the Massachusetts "right to service law," which previously required natural gas utilities to provide service to any customer in their service area who requests it, with few exceptions. The Department of Public Utilities ("DPU"), which is empowered to issue orders directing corporations to supply petitioners with gas service, previously had little discretion to decline requests to expand natural gas service based on the impact of emissions. Under the new law, the DPU may now consider the Commonwealth's established greenhouse gas emissions limits, the interest in avoiding stranded costs borne by ratepayers, and the availability of adequate substitutes for gas-fired services before approving requests to expand natural gas service to new customers.
- The bill also introduces reforms to the state's Gas System Enhancement Plans program, incentivizing utilities to replace aging or leaking natural gas infrastructure. On or before October 31st of each year, gas distribution companies are permitted to submit annual Gas System Enhancement Programs ("GSEPs") for replacement of aged (non-cathodically protected steel, cast-iron, and wrought-iron) infrastructure during the following calendar year. The 2024 Clean Energy Bill modifies this program to prioritize short-term remediation or retirement of stretches of pipeline rather than encouraging extensive repairs or full replacement of natural gas pipeline systems that may become obsolete or unnecessary.
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