Energy Transformation at the State Level

Background and Challenge

Massachusetts has some of the highest energy costs in the United States, driven in part by its position at the end of the nation’s major natural gas pipelines. At the same time, the state has ambitious renewable energy efforts under way to meet its net zero greenhouse gas emissions goal by 2050. Balancing goals of affordability, emissions reduction, and equity is no small task. According to a report from the Massachusetts Office of Energy Transformation, “this process depends on a fundamental reimagining and restructuring of current energy regulations, financing mechanisms, and community engagement models and practices.”

Recognizing these conditions, the Massachusetts Executive Office of Energy and Environmental Affairs (EEA) established the nation’s first Office of Energy Transformation (OET) in March 2024 with a mission of “affordably, equitably, and responsibly accelerating the gas-to-electric transition, readying the electric grid, and ensuring a just transition for workers, business, and communities.” The OET acknowledged the need to gather broad input from affected parties and conducted stakeholder interviews to determine areas of greatest impact in advancing the energy transition. From these interviews, the OET organized Focus Area Working Groups (FAWGs), with approximately 60 members each—including members from energy, finance, labor, environmental justice, and development sectors. The scope and complexity of these intersecting efforts, combined with an urgent need for a “fundamental restructuring” of the energy landscape, would call for sophisticated collaboration and efforts to build alignment across differences.

Our Approach

CBI facilitated 3 of 4 FAWGs, which addressed 1) reducing reliance on the Everett Marine Terminal, a liquefied natural gas terminal, 2) decarbonizing peak energy systems that are inefficient because they are only enabled during periods of high demand, and 3) financing options for the transition that would mitigate the impacts on consumers’ electricity bills while supporting needed infrastructure upgrades. Beginning in December of 2024, CBI facilitated monthly working group meetings to ensure each remained committed to its original mandate across three phases: education and development of shared understanding, development of findings, and development of recommendations. CBI also facilitated an Energy Transformation Advisory Board (ETAB), which provided oversight and ensured continuity across the four working groups. CBI supported the FAWGs in developing a range of approaches to assess alternatives comprehensively, worked with technical consultants to integrate quantitative analyses into the FAWGs’ deliberations, and drafted and built consensus on FAWG findings and recommendations.   

Results

Upon completing the three phases, the FAWGs submitted findings and recommendations to the Energy Transition Advisory Board for approval. The Advisory Board approved the findings and recommendations of both the Everett Marine Terminal FAWG and the FAWG on financing the transition. These 2 FAWGS will “sunset,” and the Advisory Board approved the launch of a new FAWG that will explore a cross-cutting theme that emerged from all three FAWGs: how to reduce peak energy demand across both the gas and electric sectors. The Advisory Board also approved the findings of the Decarbonizing the Peak (DTP) FAWG, which will continue its work on development of recommendations.