The Cammontoealth of Massachusetts House of Representatioos State House, Boston 02133-1054 March 10, 2016 Honorable Brian $. Dempsey Honorable Thomas A. Golden Honorable Bradley H. Jones State House, Room 243 State House, Room 473B State House, Room 124 Boston, MA 02133 Boston, MA 02133 Boston, MA 02133 RE: H.3854/8,20S8 dn Act providing for the establishment of a comprehensive adaptation management plan in response to climate change Dear Chairman Dempsey, Chairman Golden and Minority Leader Jones: We wish fo express our appreciation for your efforts to pass legislation that seeks to promote cost- effective solar energy growth and sets the Commonwealth on a path to meet its Global Warming Solutions Act (GWSA) requitements. Following the vote on H.3854 in November, our offices have been contacted by constituents, ‘municipalities and businesses that are concerned this legislation will lead to job losses, jeopardi environmental progress, and raise electricity bills. We respectfully request that you address these critical issues in the Conference Committee, and that the committee report 4 bill o raise the net metering caps as expeditiously as possible. In particular, we are concemed that sharp cuts to net metering credit value will irreparably harm Massachusetts’ solar industry and its 15,000 employees. Resetting all new solar projects to the wholesale net metering credit rate will make it prohibitively difficult to finance low-income, community shared solar or municipal projects. In addition, the transition to the wholesale rate for existing projects, while 20 ‘years down the road, will lead to major bill increases for municipalities and other solar customers. Finally, we have heard significant concerns about the provision creating a “minimum monthly reliability contribution” and the impacts that could have on existing solar customers and future solar growth, In our view, a strong net metering policy, at a minimum, calls for maintaining retail net metering credit value for preferred classes of projects, such as (1) community stiared solar, (2) projects that serve fow- income housing and low-income ratepayers and (3) municipalities until an official, publicly scrutinized analysis of costs and benefits has been completed. In addition, we ask the Conference Committee to ensure grandfathering of existing systems. We also are in favor of the inclusion of new or expanded programs to achieve solar equity for low-income residents. We support your desire to reduce costs. However, it is important to note that net metering credits are not subsidies, but rather compensation for the value provided by solar generation exported to the grid. Thestate’s Massachusetts Net Metering & Solar Task Force determined last year that for every dollar solar costs ratepayers, it retums $2.20 in benefits. Therefore, we hope you will look to reduce costs not by arbitrarily cutting the net metering credit value, but rether by reforming the SREC program, which was designed to be an incentive for solar development. We hope you can advance a bill to a floor vote at the earliest opportunity, in order to restore investments in our communities and allow businesses to rehire workers who lost theit jobs as a result of the net metering caps. Even more urgency has been added now that the Department of Energy Resources has reported that SREC Il has reached full capacity, so we must make progress on a successor program. ‘Thank you very much for your consideration. C Best Regards, 4 f 2 cer Lt KL DT Or hoe CorfAtkins Ruth B. Balser 14" Middlesex 12! Middlesex: a 4 / / i in 37" Middlesex Kay Kiem Kay Khon 11" Middlesex f. fel, Smitty Pignatelli 4! 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