For Immediate Release:                                                                  Contact: Colleen McGlynn

June 24, 2008                                                                                                      (617) 722-1410

 

 

Senate Approves Comprehensive Energy Bill

Provision Included to Protect Salem’s Tax Base

 

Boston, MA - Senate Majority Leader Frederick E. Berry (D-Peabody) announced today that the Massachusetts Senate has passed An Act Relative to Green Communities.  This wide-ranging legislation includes a provision that will help the City of Salem in the event that tax revenues from its power station diminish as a result of the Regional Greenhouse Gas Initiative (RGGI) mandates.  It will make reimbursements available for local property tax receipts, including payments in lieu of taxes that are reduced.

 

The Senate passed a bill in January that would insure the same reimbursements, but the House of Representatives has not taken any action on the legislation.  The inclusion of the same proposal into this new bill has provided a new opportunity for it to reach Governor Patrick’s desk.  Senator Berry has consistently been the key Senate advocate for these tax reimbursements, as he continues to aggressively support financial protection for the City of Salem.

 

“I felt strongly that this bill should include a provision that protected the financial interests of host communities, such as Salem,” said Senator Frederick E. Berry after the bill’s passage.  “This is a win-win situation for the Commonwealth.  Massachusetts becomes a leader in the fight against global warming without compromising the fiscal health of our cities and towns.”

 

The regulation of CO2 emissions has caused concern for communities who host fossil fuel power plants, such as Salem.  Power plant operators including Virginia-based Dominion energy that owns the Salem Power Station have cited the potential high costs of doing business under RGGI as a factor in the possible devaluation of their property.   Under RGGI, fossil fuel burning plants will have to purchase an authorization called an allowance to emit a fixed amount of CO2; the cost of these allowances has not yet been established.  The proceeds from sale of these allowances will be diverted to the RGGI Auction Trust Fund.  The trust fund will support and subsidize programs that promote alternative and renewable energy use.

 

Governor Patrick pledged Massachusetts participation in the Regional Greenhouse Gas Initiative last January and this bill codifies the Commonwealth’s agreement.  The multi-state compact starts in 2009 and creates incentives for energy efficiency and renewable energy use as a means of reducing dependency on fossil fuels and curbing carbon dioxide emissions.

 

The bill now moves to the House of Representatives for consideration. 

 

 

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