Legislation Synopsis

The Renewable Energy Trust was created by the Massachusetts Legislature with the intent that a modest investment today in renewable energy technologies and industries will provide a healthy return in future economic, environmental and other public benefits for the Commonwealth. The Trust was established as part of a new law, the Electric Utility Industry Restructuring Act, which took effect March 1, 1998. The money for the Trust comes from a systems benefit charge paid by ratepayers of investor-owned utilities in Massachusetts. The average residential ratepayer pays approximately 50 cents a month, or $6 a year.

The key sections of legislation related to the establishment of the Renewable Energy Trust are:

Chapter 25, Section 20 of the General Laws
(copy of statute)

Chapter 40J, Section 4E of the General Laws
(copy of statute)

Shea Lawsuit

A lawsuit was filed by eight Massachusetts ratepayers (the so-called "Shea" case) with the Massachusetts Supreme Judicial Court on March 2, 1998, challenging the constitutionality of two separate charges which fund the Renewable Energy Trust and energy efficiency programs.

On April 19, 2000 the SJC unanimously upheld the constitutionality of those portions of the State’s electric industry restructuring legislation (Chapter 164 of the Acts of 1997)
that funded energy efficiency and renewable energy programs. Read the Shea Opinion>>

The legal challenge delayed implementation of the Renewable Energy Trust.