In 2022, Massachusetts adopted the Clean Energy and Climate Plan for 2025 and 2030 in which the Massachusetts Department of Environmental Protection (DEP) was tasked with the development of a program that would reduce heating emissions in all sector. In 2023, DEP proposed a potential framework for a state-wide Clean Heat Standard (CHS), which would place the existing annual compliance obligations on energy suppliers. The obligations in the framework correspond to emissions reductions for both fuel and electric suppliers, with obligations first falling to fuel suppliers, and then adding requirements for electric suppliers as electrification progresses.
With the vast majority of Massachusetts residents relying on fossil fuel for their heating, the CHS provides a way to reduce emissions as it promotes movement away from fossil fuels and towards electrification. Opponents of the CHS argue that residents will be forced to convert to electric systems and left facing higher heating bills. While the CHS does not require homeowners and businesses to make clean heat choices, consumers will incur the incremental costs of transitioning to clean energy as fuel and electric providers begin to increase the percentage of clean heat they provide. However, the electrification goals of Massachusetts’ Climate Plan will reduce the number of customer relying on fossil fuels for heating, which will increase the costs to remaining consumers regardless of the CHS. Currently, fossil fuel heating results in higher energy bills than electric heating according to the Department of Energy Resources. Long-term health and financial savings of the CHS may outweigh the short-term costs to consumers as the clean energy transition begins.