Climate and energy bill returns to governor’s desk for final approval

The House and Senate responded to Gov. Charlie Baker’s amendments to a climate and clean energy bill with a revised bill that incorporates some, but not all, of the governor’s proposed changes.

The Legislature passed a wide-ranging climate and clean energy bill on July 21, but the governor returned it with amendments on July 29, giving the House and Senate two days to respond to his proposals before the end of the legislative session.

On Sunday evening, the Legislature passed an amended bill (H. 5060) as its final attempt of the session to advance clean energy, climate and offshore wind efforts.

The Legislature rejected the governor’s addition of $750 million to advance and further invest in clean energy to assist and accelerate the transition to clean energy, citing concerns that such a change could make the bill’s many provisions susceptible to line-item vetoes.

Baker also sought to modify certain parameters and criteria for newly created programs and funds. Including a demonstration program that would allow 10 municipalities to prohibit fossil fuel use in new building construction or major renovation projects. The governor sought to extend the program’s effective date until at least 50% of the Commonwealth’s annual electric consumption was generated by clean energy sources, but the Legislature responded with language similar to the original version enacted on July 21.

In response to the governor’s concerns, the House and Senate did agree to eliminate an offshore wind price cap, which had been only modified by the original legislation. The price cap ensures that new offshore wind projects in Massachusetts produce electricity below a certain cost — specifically lower than the price of power offered by the project that came online prior to the new bid. The Legislature’s original language would have adjusted conditions to simplify and encourage bids when there are only one or two bids, the amended version would eliminate the price cap.

The bill is once again before the governor awaiting his signature.