Energy Efficiency Policy in Massachusetts

The Commonwealth of Massachusetts has long been a leader in developing and implementing some of the most progressive energy efficiency policies and programs in the nation. The Green Communities Act of 2008 requires that "electric and natural gas resource needs shall first be met through all available energy efficiency and demand reduction resources that are cost effective or less expensive than supply."

The Energy Efficiency Advisory Council (EEAC) was established under the Green Communities Act and plays a key role in designing and approving the Commonwealth's utility and municipal energy efficiency programs. Members are comprised of various stakeholders groups and experts including advocates for low-income residents, organized labor, business and manufacturing, the environment, independent experts and various state agencies. Utility companies have a non-voting role in the EEAC.

Electric efficiency programs run by investor-owned utilities are funded through a Systems Benefit Charge (SBC) 2.5 mills/kWh. Gas programs are not subject to an SBC, but are now subject to the same "least cost procurement" mandate.

Massachusetts has also implemented building energy codes that significant increase energy efficiency in buildings statewide. The state building code requires new construction to comply with IECC 2009 starting in 2010. The state has adopted an appendix to the code, also known as a "stretch code," that will allow towns and cities to adopt a code with higher energy efficiency requirements, building energy performance ratings, and independent, third-party testing.

State Offices

Massachusetts Department of Public Utilities (DPU)
Massachusetts Division of Energy Resources (DOER)

Program Administrators

Cape Light Compact
National Grid
NSTAR
Unitil
Western Massachusetts Electric Company

Key Policies

Green Communities Act
Stretch Energy Code
Zero Net Energy Buildings Initiative
Executive Order 484: Clean Energy and Efficient Building