What the Passage of the Economic Development & Climate Bills Means
The Massachusetts legislature has recently passed the long-awaited economic development bill as well as a climate bill. Both address innovation and environmental challenges facing the Commonwealth while at the same time position Massachusetts as a leader in technological advancements, clean energy, and equitable growth, something Governor Maura Healey (D) has long pressed for during her governorship.
Economic Development Bill (HB5100):
This bill is a $3.96 billion bond bill that authorizes funding to bolster the state’s economy largely through life sciences, climate technology, and infrastructure improvements. At its core, it is a robust commitment to infrastructure and innovation to meet this moment of generative AI and climate change. With substantial funding earmarked for transportation and broad technologies, these investments aim to enhance connectivity and ramp up business operations across the commonwealth.
Significant investments in the bill are $580 million for the Massachusetts Life Sciences Breakthrough Fund (aka Life Sciences 3.0) which will go towards grants for clean energy startups, AI projects, and tax credits for the life sciences industry. The credits have increased throughout the negotiating process from $30 million to $40 million. Additionally, $400 million is being allocated to the MassWorks Infrastructure Program, supporting public infrastructure projects like constructing libraries, expanding telecommunication access, and improving bridges/roads. $200 million is set aside for the Clean Energy Investment Fund and $200 million will go to the Massachusetts Offshore Wind Industry Investment Trust Fund. $133 million is earmarked for the Scientific and Technology Research and Development Matching Grant Fund.
Found in this omnibus bill are also over 300 outside sections addressing the Massachusetts economy such as state assistance for small business owners with collateral so they can qualify for bonds. The legislature has also agreed to launch a new tax credit of $7 million to local theaters, providing artists tools to succeed. The bill also expands the allowance of alcoholic beverages at farmers markets to include beer and not just wine or cider. The bill expands the allowance of liquor licenses to non-US citizens too.
Perhaps the most important policy change involving community development is the reclassification of a parcel of land in Everett that was formally designated as a port area, now allowing a professional soccer stadium to be built. Reflecting on the economic history of the city, the bill also will rename the Boston Convention & Exhibition center to honor former Boston Mayor Thomas Menino. Online ticket sales are also targeted in this bill - the policy change will ban automated ticket purchasing software (aka bots) on online ticket sellers’ websites so that consumers aren’t competing with inflated prices.
In terms of education, the econ dev bill also updates the teacher certification process with the intent to diversify the education sector. The bill requires public high schools to provide information on FAFSA to students before they graduate too, giving them the opportunity to receive financial aid they may not have known about.
Attention was also given to public health policies in the commonwealth. Foreign-trained physicians are now allowed to practice in underserved communities and Massachusetts has been admitted to the National Nurse Licensure Compact which means that nurses from other states will not have to get another license to work in Massachusetts.
And lastly, campaign finances are now allowed to be used towards child-care while a parent is out campaigning.
The House voted 137-8 to accept the compromise bill, with Republican Reps. Nick Boldyga (R-Southwick), David DeCoste (R-Norwell), John Marsi (R-Dudley), Joseph McKenna (R-Sutton), Norman Orrall (R-Lakeville), Kelly Pease (R-Westfield), Alyson Sullivan-Almeida (R-Abington), and Steven Xiarhos (R-Barnstable) cast dissenting votes. The Senate accepted the report on a voice vote. The House then voted 139-4 to enact the bill. After rejecting a Republican-led attempt to reopen the bill for further amendments, the Senate approved the measure 39-1. Sen. Ryan Fattman (R-Sutton) cast the lone no vote.
Supporters:
The passage of the economic development bill has been met with optimism from democrats and business leaders alike, especially those in the life sciences and clean energy sectors. They see it as a crucial step towards bolstering the state’s economy and fostering innovation in key industries. Pharma giant Takeda has welcomed the bill, saying that the initiatives align with the biotech community that are looking to thrive in Massachusetts. Besides businesses in the science sector, the bill is seen as a success by transit advocates, commercial real estate stakeholders, and rural communities as it addresses critical interests of all.
Opposers:
Fiscal and conservative tax payer groups have raised concerns about the financial implications of the bill. They have emphasized the need for a more sustainable economic strategy that prioritizes small businesses without excessive government intervention or spending. Although the bill includes provisions aimed at supporting small businesses, some owners feel the measures may not go far enough to address their specific needs as it focuses on larger initiatives that could overshadow unique challenges faced by smaller enterprises.
Also, certain environmental groups like the Conservation Law Foundation have expressed concerns about how the pollution of the construction of a soccer stadium (and consequent traffic) would harm local ecosystems in the nearby Mystic River. Adjacent municipalities like Boston, Somerville, and Charlestown are also wary of gridlock traffic the stadium could bring.
Consumer groups and Stubhub worry Massachusetts' new ticket transfer law will harm event-goers as it could lead to restrictions on how tickets can be transferred or resold, limiting options for consumers who wish to share or sell their tickets. Specifically Stubhub has come out against the provision saying that it will reinforce monopolistic practices by giants like Ticketmaster.
What Wasn’t Included:
The Senate backed proposal to increase the age people can be tried in juvenile court to above 18. Additionally, the Senate conceded its push for happy hour where municipalities could decide to implement discounted drinks or not. The House has cited public safety as its primary concern over bringing back happy hour.
Climate Bill (SB2967):
The passage of the climate bill will make sweeping changes to clean energy policies in Massachusetts, specifically in terms of permitting bureaucracy. The state has long been plagued with the issue of wanting to make good on clean energy projects, but getting stuck in the weeds of different regulations set by state, regional, and local governments. To combat this slow down, the bill allows for a consolidated application and permitting process which would require action within 15 months; 12 months for smaller projects. The Energy Facilities Siting Board would handle consolidated permits for large clean energy projects, while municipalities would handle permits for smaller projects. Additionally the bill forms a new Division of Clean Energy Siting and Permitting within the Dept. of Energy Resources to develop standard conditions, provide guidance, and support local governments in permitting.
The climate bill also requires the Dept. of Public Utilities (DPU) to develop a clean energy infrastructure dashboard to present comprehensive data and promote rapid clean energy deployment. A new office of Environmental Justice and Equity within the Executive Office of Energy and Environmental Affairs will be established to enforce environmental justice principles, guide community benefit plans, and conduct cumulative impact analyses for energy infrastructure projects. Another office to be established is the Division of Public Participation within DPU, supported by a new Intervenor Support Fund to help individuals, local governments, and community organizations advocate on permitting and citing issues.
Along with the establishment of new departments and funds, the bill would mandate that distribution companies offer discounted rates to moderate-income customers, in addition to existing discounts for low-income customers. It also prohibits condo associations, homeowners’ associations, and historic district commissioners from unreasonably restricting the installation of electric vehicle chargers.
Finally, the bill directs the Massachusetts Clean Energy Technology Center to study opportunities for carbon dioxide removal innovation and activities within the Commonwealth and its coastal areas.
The Senate accepted the conference report 38-2 with all 36 Democrats and 2 Republicans voting in the affirmative and 2 Republicans voting in the negative. The House approved the conference report by 128-17. 120 House Democrats voted yea and 12 did not vote. 4 House Republicans voted yea with 17 nays and 3 no votes.
Supporters:
As expressed in a press release from the Governor’s Office, electric companies, conservation groups, and business associations show strong support for the expeditious permitting of clean energy projects. They cite that not only will this allow Massachusetts to meet its climate targets, but will also create new jobs in the energy sector.
Opposers:
Rep. Boldyga argued about compromising the safety of oceans, whales, and the fishing industry with offshore wind. Offshore wind has been in the spotlight lately after a wind turbine broke off into the ocean, leaving harmful debris in the ocean and on Nantucket shores. The broader political context over offshore wind also played a role. With a shift in national energy policy expected following the election of Donald Trump, some Republicans viewed this bill as misaligned with the future.
There were also criticisms regarding how the bill was crafted and whether it adequately addressed potential risks associated with the rapid changes to infrastructure it proposes. Some amendments proposed by Republicans aimed at studying these risks were rejected, leading to frustration about insufficient vetting of the legislation. Rep. Steven Xiarhos proposed an amendment to create a commission tasked with studying the risks associated with onshore electric infrastructure linked to offshore wind energy projects. Another amendment proposed by House Minority Leader Brad Jones (R-North Reading) sought to initiate a study on car battery recycling which was intended to ensure that the legislation addressed environmental impacts related to batteries from EVs. It also did not gain traction and was not included in the final bill.
The fact that these two conference bills passed after formal sessions ended July 31st is unprecedented in the Massachusetts legislature (besides in 2020 due to pandemic disruptions). Typically any bills that have bonding provisions have a constitutional requirement for a roll call vote. Roll calls can’t happen in informal sessions because they deal with controversial and complex bills that should not be taken up during campaign season, where legislators are distracted with reelection. The Legislature scheduled formal sessions to debate these bills. How? The Senate adopted an order allowing roll call votes on outstanding conference committee reports, effectively circumventing the standard. The House adopted an order to suspend the rules through a voice vote.
Separate from any constitutional issues, the economic development bill and climate bill were both bonding bills which will deeply affect the fiscal health of the state for a long time to come. Since House and Senate leadership called for formal sessions, Republicans didn’t get to play hardball by doubting the presence of a quorum, which would usually grind informal sessions to a halt.
The passage of the economic development bill and the climate bill represents a significant milestone for the Massachusetts Legislature, showing its commitment to getting things done, despite the unnerving procrastination felt by many government affairs professionals. By investing billions in life sciences, infrastructure, and sustainable technologies, these bills position the state as a forward-thinking leader in addressing complex challenges like climate change and AI.
Despite some opposition and concerns from fiscal conservatives and environmentalists (who said the bills don’t go far enough), the bills do demonstrate a collaborative effort to balance economic growth with environmental stewardship. The unprecedented legislative maneuvering to pass the bills outside the typical formal session was unexpected but leaving many relieved that the legislature will act when push comes to shove.