Governor Healey Enacts Transformative Clean Energy and Economic Development Laws: Streamlined Permitting, Equity Protections, and Extended Project Approvals
On November 20, 2024, Governor Maura Healey signed the Massachusetts Leads Act, engrossing House Bill 5100 (the “MA Leads Act”), which, among many funding provisions, contains two changes that will significantly benefit project developers. Not to be outdone, on November 21, the Governor signed Senate Bill 2967, An Act Promoting a Clean Energy Grid, Advancing Equity, and Protecting Ratepayers (the “Clean Energy Grid Act”). Together, these bills make sweeping changes in the siting and permitting of clean energy projects, provide unprecedented economic development funding, and extend the life of most project approvals. In this post, we focus on a few of the provisions that we consider of most interest to project developers, including a two-year extension of the permit process, a two-year extension of zoning protections for projects with special permits, and a relaxation of the requirements for what qualifies as the commencement of construction on previously disturbed land. Additionally, these legislative initiatives introduce a new streamlined siting and permitting system for clean energy projects, featuring strict deadlines for government approval of these projects. These are only a handful of the most significant changes.
The most important thing for project developers is the two-year permit extension provided by Section 280 of H 5100. That section extends “approvals[1] in effect or existence [between January 1, 2023 and January 1, 2025] . . . for a period of 2 years in addition to the lawful term of the approval” subject to the exceptions and limitations described in the MA Leads Act. Notably, unlike the Permit Extension Act of 2010[2] and the COVID-19 permit extension legislation[3], the MA Leads Act expressly provides that “any project covered by an approval in effect during the tolling period shall be governed by the applicable provisions of any local ordinance or by-law, in effect at the time of the granting of the approval, unless the owner or petitioner of such project elects to waive the provisions of this section.”
Equally important is the two-year extension in the duration of the protection against subsequent zoning changes afforded by a zoning special permit contained in Section 171 of H 5100, which amends Section 6 of General Laws Chapter 40A, the Zoning Act, by providing that “construction or operations under a special permit issued pursuant to section 9 or site plan approval pursuant to the local ordinance or by-law [will not be subject to] any subsequent amendment of the zoning ordinance or by-law, [provided] use or construction is commenced within a period of 3 years after the issuance of the special permit or site plan approval and, in cases involving construction, [provided] such construction is continued through to completion as continuously and expeditiously as is reasonable.” In so doing, the MA Leads Act extends the protection against subsequent zoning changes for a project possessing a special permit by two years. The MA Leads Act also adds an entirely new provision that liberalizes the activities that will qualify as “commencement of construction” of “previously disturbed land” under a special permit: “construction involving [the] development of previously disturbed land shall be deemed to have commenced upon substantial investment in site preparation or infrastructure construction, and construction of development intended to proceed in phases shall proceed expeditiously, but not continuously, among phases.” This latter clarification is a departure from case law interpreting Section 6 of the Zoning Act[4], which generally did not recognize mere site preparation as sufficient to protect a specially permitted project from subsequent zoning changes.[5]
It remains to be seen whether a developer can stack the two-year protection of the new Permit Extension Act onto the three-year protection afforded by the amendments to Section 6 of the Zoning Act to protect against subsequent zoning changes for five years from the date of issuance of a special permit.
The Clean Energy Grid Act, based on Senate Bill 2967, contains too many sweeping changes to describe here, but one notable change is that the Clean Energy Grid Act consolidates clean energy siting and permitting reviews. Paraphrasing Governor Healey's statement[6], she emphasized that the new legislation introduces significant reforms to the siting and permitting processes for clean energy infrastructure, including wind, solar, and energy storage projects. The law sets firm deadlines—12 months for municipal permitting and 15 months for state-level approvals handled by the Energy Facilities Siting Board (EFSB). Municipalities must issue a single, consolidated permit at the end of their process, while state permits will also be issued collectively. Appeals will now go directly to the state Supreme Judicial Court, eliminating lengthy delays caused by protracted appeals. Additionally, the Department of Energy Resources will establish site suitability criteria to safeguard natural resources during project siting. This streamlined approach accelerates clean energy development while balancing environmental protection and community interests.
Offsetting some of the consolidated and expedited review provisions are reforms described by the Governor’s press release as follows:
“Municipalities will be granted automatic intervenor status in EFSB proceedings. A fund to support municipalities, organizations, and individuals who lack the resources will benefit from a new fund to support their needs for qualified legal representation and expert analysis. The EFSB will also require a cumulative impact analysis for projects seeking to site in environmental justice communities, so that no neighborhood becomes overburdened with infrastructure that the entire state benefits from. The Office of Environmental Justice and Equity and the Division of Public Participation at the Department of Public Utilities – both established under Governor Healey – will be enshrined in law.”
Generally, for small projects, all local permits are to be issued by the municipality as one consolidated permit, and all state permits are to be issued as one consolidated permit by the EFSB within one year of application. For larger projects, the EFSB will issue one consolidated permit within 15 months of application. Under Section 33 of the Clean Energy Grid Act, small and large clean energy projects that go through the one-stop siting and permitting process are exempt from environmental review under the Massachusetts Environmental Policy Act, M.G.L. c. 30, §§ 62-62L.
The one-stop siting and permitting provisions for permits issued by municipalities for small clean energy infrastructure facilities (including anaerobic digestion, solar and wind generating facilities under 25 MW, storage facilities under 100 MWh, and smaller distribution and transmission infrastructure) can be found in section 23 of the act, which adds a new section 21 to M.G.L. c. 25A. One-stop siting and permitting for state approvals of small clean energy infrastructure facilities is covered by Section 74 of the Clean Energy Grid Act, which adds Sections 69U and 69V to M.G.L. c. 164 governing the EFSB. Under those new provisions, the Department of Energy Resources is required to establish “standards, requirements, and procedures governing the siting and permitting of small clean energy infrastructure facilities by local governments. . .” Among many other provisions, the new statute provides that: “[l]ocal governments shall issue a single, final decision on a consolidated small clean energy infrastructure facility permit application submitted pursuant to subsection (c), including all decisions necessary for a project to proceed with construction within 12 months of the receipt of a complete permit application . . . [and] [i]f a final decision is not issued within 12 months of the receipt of a complete permit application, a constructive approval permit shall be issued by the local government that includes the common conditions and requirements established by the department for the type of small clean energy infrastructure facility under review.” Any such permit is “reviewable by a de novo adjudication of the permit application by the director of the energy facilities siting division of the department of public utilities.”
Siting and permitting of large clean energy generation facilities (anaerobic digestion, solar and wind projects greater than 25 MW) and large clean energy infrastructure facilities (storage over 100MWh, and larger transmission and distribution facilities) is governed by Sections 53-74 of S 2967 which amends the EFSB statute at M.G.L. c. 164, § 69G et. seq. Notably, section 74 of the Clean Energy Grid Act, which establishes a new section 69T of c. 164, provides that “in no instance shall the board take more than 15 months from the determination of application completeness to render a final decision on an application . . [and] if no final decision is issued within the deadline established by the board for the type of large clean energy infrastructure facility, the board shall issue a permit granting approval to construct…”
These legislative changes represent a pivotal moment for Massachusetts as it accelerates its clean energy transition while addressing equity and economic development. By streamlining permitting processes, extending project approval timelines, and ensuring protections for environmental justice communities, the two Acts signed by Governor Healey aim to remove barriers that have historically delayed renewable energy projects. The introduction of one-stop permitting and strict deadlines for approvals will provide much-needed predictability for developers, enabling faster deployment of critical infrastructure like wind, solar, and energy storage. At the same time, including equity-focused measures ensures that the benefits of clean energy growth are shared across all communities, particularly those historically burdened by environmental harm. These reforms position Massachusetts as a leader in clean energy innovation and demonstrate a commitment to balancing economic growth with social and environmental responsibility.
Stand by for future posts on the many other provisions that may be of interest, such as lengthening the permissible duration of offshore wind contracts and expanding tax credits for those projects.
[1] The definition of “approvals” is quite broad, but it does not cover: approvals issued by the United States government or its agencies, approvals whose duration is set under federal law, approvals issued by the division of fisheries and wildlife under M.G.L. c. 131, certain determinations by the Department of Energy Resources related to renewable energy projects, certain agreements entered into by and approvals issued by the Massachusetts Department of Transportation or Massachusetts Bay Transportation Authority, and enforcement orders, consent decrees or settlement agreements.
[2] Section 173 of Chapter 240 of the Acts of 2010 as extended by Sections 74 and 75 of the Acts of 2012.
[3] Section 17 (b) (iii) of Chapter 53 of the Acts of 2020.
[4] See, Alexander v. Bld’g Inspector of Provincetown, 350 Mass. 370, 374-375 (1966).
[5] N.B., however, that the MA Leads Act did not change M.G.L. c. 40A, § 9, which provides: ”Zoning ordinances or by-laws shall provide that a special permit granted under this section shall lapse within a specified period of time, not more than 3 years, which shall not include such time required to pursue or await the determination of an appeal referred to in section seventeen, from the grant thereof, if a substantial use thereof has not sooner commenced except for good cause or, in the case of permit for construction, if construction has not begun by such date except for good cause.”
