BOSTON --Massachusetts would dramatically increase its reliance on renewable energy under a new bill whose provisions include creating tax deductions for hybrid cars and requiring that a percentage of power sold to consumers come from alternative sources.
Gov. Deval Patrick and House Speaker Salvatore DiMasi unveiled the legislation at a joint Statehouse press conference. Senate President Therese Murray also backs the initiative.
The bill is a reworked version of legislation first proposed by DiMasi nearly a year ago. The final bill includes initiatives from Patrick and the Senate.
"We are today embarking on a new era of energy reform that is bold, innovative and will forever change how we purchase, use and create our energy here in Massachusetts," DiMasi said.
Under the bill, anyone buying a hybrid or alternative fuel car would get a $2,000 tax deduction. Businesses would be eligible for a 15 percent or $300 tax credit to offset the purchase of solar-powered water heating systems.
And new buildings would be encouraged to meet "green building" codes under the bill. Those codes include using energy efficient lighting, heating and cooling systems.
The state would also be required to replace older, gas-guzzling cars and trucks with more fuel-efficient vehicles.
The bill sets out ambitious new clean air goals -- requiring Massachusetts by the year 2020 to derive 20 percent of the electricity it uses from renewable sources like wind power, while cutting emissions of greenhouse gases by 20 percent.
Patrick said the bill is part of a larger initiative to make Massachusetts a leader in environmentally-friendly innovation.
"This is a journey and the industry around clean technology has responded with new companies, new kinds of investment, new promise for our economic and our energy future," Patrick said.
The bill includes DiMasi's original "green communities" proposal, designed to let cities and towns apply for state loans and grants to pay for energy efficient improvements. It would also create an expedited permitting process for clean energy facilities.
Environmental Affairs Secretary Ian Bowles said the new, expanded bill is deliberately ambitious.
He said it's designed to encourage companies and consumers to find ways to meet their energy requirements first through energy efficiency options and also mandates that energy distributors consider all available energy resources when purchasing power.
"It's a big bold thing to do. We need to do it. It's good for greenhouse gas emissions. It's good for costs. It makes all the sense in the world," he said.
The bill would also:
-- Create a pilot program requiring energy distribution companies to enter into renewable energy contracts for 10 to 15 years to make Massachusetts a national leader in renewable energy distribution;
-- Require state regulation and oversight of steam companies to help prevent accidents like recent steam pipe explosions in Boston.
Attorney General Martha Coakley said the bill would help her office continue to expand its work on behalf of ratepayers.
"Winters in Massachusetts are tough. They are expensive and it is one of the single biggest problems facing the commonwealth," she said.
Environmental advocates applauded the bill.
"This energy bill includes a much-needed boost in energy efficiency measures to reduce electricity demand and bring consumers savings," said Sue Reid, director of the Conservation Law Foundation's Massachusetts Clean Energy and Climate Change Initiative.
The bill is expected to come up for a debate and vote on the floor of the House next Thursday before heading to the Senate.
