A Timely Wish List

Two curves need some serious bending here in Massachusetts — the Covid-19 infection curve, and the state budget curve. Although there was a lot of push and pull going last week, it’s looking like the Covid Curve won’t trend downward until at least mid-January. And the state’s budget is unlikely to bend upward until mid-2022. Lawmakers wishes might come true with the news of a federal relief package coming our way, but it’s doubtful any of the funding needed will make it here in time to make a difference for the holidays.

Meanwhile, Massachusetts has lost its crown of Most Energy Efficient State in the U.S. to California. If you’re going to lose that crown to any state it might as well be the Golden State as it keeps the Bay State in good company. 

The real news, however, is that Massachusetts is and likely always will be a heavyweight contender on clean energy. Gov. Baker has been cheerleading a collection of Northeastern states to pass the Transportation and Climate Initiative — a cap-and-trade program for fuel companies in the Northeast modeled after the Regional Greenhouse Gas Initiative. It looks like we’re close to a deal that could save billions of dollars and countless lives in the coming decades.

And speaking of good company, Lowe’s Home Improvement has agreed to purchase 250MW of renewable energy from Massachusetts-headquartered Swift Current Energy in a 12-year power purchase agreement.

All this and a bag of chips in this week’s news. 

Covid Might Not Bend Until Mid January

With civilian vaccinations still months away, an updated Covid-19 projection model out of UMass Amherst, predicts that the total number of new coronavirus infections will continue to increase well into January. The model projects more than 40,000 new cases by Jan. 2. At just over 33,000 in the first week of December, that’s an increase of about 25%. 

In terms of deaths, the model — which is actually based on an ensemble of different models — predicts mortality will surpass 500 cases per week in Mass. before January with total deaths projected to hit 13,120 by Jan. 9. 

In an attempt to stem the evil tide, Gov. Charlie Baker and some cities and towns continue to re-tighten restrictions. Amid rising COVID-19 numbers in Massachusetts, a number of cities and towns in the state announced they are reverting to more restrictive phases of reopening.

Gov. Baker announced last week that the state would turn back to Phase 3, Step 1 of its reopening plan. And officials in Boston, Arlington, Brockton, Lynn, and Somerville, and Newton have all begun to roll the pace of reopenings back to Phase 2, Sept 2 for at least three weeks.  

If the public doesn’t heed the Governor’s new holiday safety guidelines, a full shutdown could become a reality before the year’s end.

Politics

What The New Federal Relief Bill Means for Mass.

Covid-19 deaths in the U.S. now surpassing 911 deaths on a daily basis. And nearly 8 million Americans have fallen into poverty since this summer. Nonetheless, Washington lawmakers have been in a Red vs. Blue tug-o-war over a second relief bill for weeks. 

Now Congressional and Senate leaders might be close to hammering out a $900 billion COVID-19 economic relief package that would mean billions in aid to small businesses, extended federal and state unemployment benefits, direct payments to Americans, and additional funds to renters and people needing food aid. In fact, by now, the deal might be in the history books.

So what does this mean for Massachusetts?

Direct payments to individuals appeared to be off the table until Senate Majority Leader Mitch McConnel realized that Republicans could lose their Senate majority if Georgia voters turned against the GOP before the senate seat runoffs on Jan. 5. Currently, Dems are willing to compromise on direct payments and are asking for one-time payments of $600 — half that of the previous round of checks called for by the CARES Act.

The bad news is, the direct payments are in lieu of financial assistance to state and municipal governments. However, Senate Ed Markey said Thursday he has high hopes that President-elect Joe Biden would facilitate a third relief package before winter’s end.

A $300-per-week federal jobless benefit would run until April 2021 — half of the $600 benefits provided by the CARES Act passed back in March. A $300-per-week extension runs out on Dec. 31.

The package also calls for $300 billion for the Paycheck Protection Program which attempts to stem the tide of layoffs by offering business owners with 300 or fewer employees forgivable loans to be used to cover employees' wages. 

An eviction ban set to expire at year’s end will be extended for another month. (The Mass. eviction moratorium expired in October.) 

Also, a report by Vox claims the package will provide $13 billion for a 15 percent increase in food stamps benefits as well as other food assistance programs.

And finally, to the relief of more than 40 million Americans paying back federal student loans, the package also calls for the deferral of payments until April 2021. 

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Business

Mass. Economy Not Expected to Improve Substantially Until 2022

With the state’s fiscal health teetering on a cliff, economists are saying that things might not improve until fiscal 2022. A lot depends on how quickly vaccines can be rolled out and how effective the jabs will be at “bending the curve.” It also depends on the flow of federal stimulus money. 

At a Tuesday hearing, Secretary of Administration and Finance Michael Heffernan waxed poetic saying: “Happy holidays, here’s to the new year. We hope there’s a vaccine. We hope there’s federal money.” Okay, so it wasn’t so poetic. 

Meanwhile, Department of Revenue Commissioner Geoffrey Snyder estimated that tax revenue for Fiscal 2022 will fall between $27 billion (a 1% decline) and $30 billion (and 8.8% gain). Several estimates from NGO experts also fell within the range of or slightly higher than the Department of Revenue estimate.

More details on the Mass. 2022 revenue projections can be found at Commonwealth Magazine’s website.

Check out last week’s news to learn more about the state’s fresh-squeezed 2021 budget. 

More Business

• Mass. Unemployment Rate Falls to 6.7 Percent

• Goldberg: Non-Renewals Will Tell Story of Damage to Bars, Restaurants

Energy

Mass. No Longer Most Energy Efficient State

For nine straight years, Massachusetts has held the gold medal for Most Energy-Efficient State In the Nation according to rankings provided by the American Council for an Energy-Efficient Economy (ACEEE). The Bay State is now number two compared to California. 

"In a year dramatically impacted by a global pandemic and associated recession, efforts to advance clean energy goals struggled to maintain momentum amid the loss of 400,000 energy efficiency jobs by the summer and disruptions to countless lives. Despite these challenges, some states continued to successfully prioritize energy efficiency as an important resource to help reduce household and business energy bills, create jobs, and reduce emissions. First place goes to California, which sets the pace in saving energy on multiple fronts with adoption of net-zero energy building codes, stringent vehicle emissions standards, and industry-leading appliance standards." — ACEEE annual scorecard

Massachusetts has been in the top 10 all 14 years that the ACEEE has published its annual scorecard. However, in recent years, California has spent millions of dollars to provide incentives for high-efficiency heat pump water heaters. And a recently signed executive order calls for phasing out the sale of new gasoline-powered vehicles by 2035.

Here’s a more extensive report from the Boston Globe. 

Lowe’s Taps Mass.-Based Swift Current Energy for 250MW of Solar

Massachusetts-headquartered Swift Current Energy is working on a 12-year power purchase agreement to supply Lowe’s home improvement with 250MW of renewable energy from its Black Diamond Solar park in Illinois. 

Currently under construction, the facility will house over 1 million solar panels with a total capacity of 593MW. The new installation is expected to go online by the summer of 2023.

Swift Current Energy has developed and commercialized more than 1GW of clean energy projects with more than 3GW under development.

Read more at PV-Tech.org. 

More Energy News

• Massachusetts solar loans program leaves banks with confidence to lend

• CommonWealth Magazine

• CommonWealth Magazine

• The Road To Net Zero In Massachusetts | Columns

• US Energy Department Puts $21 Million Into New Offshore Wind Energy Tech Projects

Transportation

Northeast States Agree on Cap-and-Invest Plan for Autos

After years of negotiation, a collection of Northeastern states are expected to unveil a final agreement Monday on the Transportation and Climate Initiative. TCI, a cap-and-trade program for fuel companies in the Northeast, would set decreasing limits on carbon emissions from autos. The program is modeled after the Regional Greenhouse Gas Initiative being applied to power plants. 

Under the agreement, fuel suppliers would be required to buy carbon credits to cover their emissions. Proceeds from the credits — estimated to be as high as $8.5 billion annually — would be earmarked for clean infrastructure projects.

Twelve states are involved in the pact championed by Massachusetts Gov. Charlie Baker. However, governors from Connecticut, Vermont, and Maine have expressed reservations about the plan. Other states involved include Delaware, Maryland, New Jersey, Pennsylvania, and Rhode Island, and Virginia, as well as the District of Columbia. 

While some states may be required to adopt the program via their legislature, Massachusetts can do so through executive action.

A study by Harvard University's T.H. Chan School of Public Health claims the plan found the improvement in air quality alone would prevent up to 1,000 deaths annually and reduce emissions up to 25% by 2032.

Read all about it at EEnews.net.

More Transportation News

• MBTA transit board approves service cuts despite opposition

• T board scales back service cuts, takes swipe at Beacon Hill

• Massachusetts transit agencies collaborate to implement new bus lanes, network

• Baker: Cancel Holiday Plans And Travel | Boston, MA Patch

• Biden Admin. Appoints Pete Buttigieg for Sec. of Transportation

Real Estate

Blackstone is Now King of the Hill in Cambridge Biotech

Blackstone Property Partners Life Sciences is acquiring 2.3 million square feet of lab office buildings from a Brookfield Asset Management real estate fund. The deal, valued at $3.45 billion, puts Blackstone at the top of the heap of biotech space in Cambridge. The deal is expected to go down in the first quarter of 2021.

The life sciences real estate sector is booming. More than $16 billion has been raised from private investors during the first half of 2020. Cambridge is one of the fastest-growing  biotech hubs in the country. 

Learn more at GlobeSt.com. 

More Real Estate

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Cannabis

The Massachusetts Cannabis Control Commission has appointed two new members. 

Nurys Camargo is a regional AT&T executive. Camargo previously directed youth violence prevention programs under the administration of former Governor Deval Patrick and founded a nonprofit to mentor Latinas. Camargo will assume the commission’s social justice seat for a five-year term beginning January 1.

Bruce Stebbins is a longtime Republican political operative who currently serves on the Massachusetts Gaming Commission. Stebbins will also be appointed to a five-year term on the cannabis commission as of January 1. 

The new appointments to the independent commission were made jointly by the offices of Governor Charlie Baker, Attorney General Maura Healey, and state Treasurer Deborah Goldberg.

MJ Biz Daily has more on this story.

More Cannabis News

• Innovative Industrial Properties Acquires Massachusetts and Washington Properties and Enters Into Long-Term Leases with 4Front

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• Brookline's NETA looking to open Route 9 medical marijuana outpost

More of the Latest Massachusetts News

• Massachusetts releases COVID-19 guidance for celebrating December holidays

Two Steps Forward and Back Again

Even when we’re making significant progress, Massachusetts seems to be experiencing setbacks in equal measure.

For instance, the Commonwealth seems to be all set in the energy department. Grid operators are saying they’ll have no problem meeting demand this winter. But shivering throngs of residents might not have a home to heat. That is if the Federal eviction moratorium expires on schedule on December 31. Even if folks can pay their rent or mortgage, they may not have enough money to pay their electric bills as unemployment balloons and relief shrivels. 

On the bright side, sarcastically speaking, trains, trolley’s and buses will be using a lot less energy this winter as ridership has plummeted and the MBTA plans stiff cuts in services. And with lawmakers in Washington squabbling over who gets what in federal assistance, things aren’t guaranteed to be getting better anytime soon. 

On a “lighter” note, one week after marijuana sales blew past the billion-dollar mark here in Mass., Maine has announced that marijuana is now it’s number one cash crop. Also this week, Congress passed the MORE Act which includes an attempt to decriminalize marijuana and remove it from the DEA’s list of Schedule I controlled substances. If these trends continue — and they will — the smart money is going to start piling into cannabis like children in a heap of autumn leaves.

Let’s unpack this week’s news: 

Politics

Mass. Reopening Turns Retrograde

Just last week, Gov. Charlie Baker had no plans to double down on COVID-19 restrictions. However, that was before we repeatedly smashed single-day coronavirus records with hospitalizations rising 44% the week after Thanksgiving. Health officials have reported 3,627 new coronavirus cases and 40 more deaths from COVID-19.

As a result, the Bay State’s reopening process has gone into retrograde. Baker announced Tuesday that he will roll back to Phase 3, Step 1 of the state’s reopening plan starting Sunday, Dec. 13, with reduced capacity for "pretty much everything." 

"The rate Massachusetts residents are getting infected and the rate at which they are needing medical care, if all continues to move at this pace, is simply not sustainable over time, and our health care system will be put at risk," Baker said. "We have to do more."

The exact details of the rollback can be found here. 

Hopefully, help is on the way. By the time you read this, trucks full of Covid-19 vaccines could be rolling into Massachusetts. 

The FDA’s advisory committee has recommended the approval of Pfizer’s vaccine for emergency use in the United States. Now we wait for the FDA to decide whether to accept the recommendation. Once this happens, doses of the vaccine could be in Massachusetts within days. Healthcare workers are expected to be among the first group eligible for the vaccine. 

According to a report at WWLP.com:

“The Baker administration plans to distribute 300,000 COVID-19 vaccines over the next three months to Massachusetts residents and workers who face the highest risks for the virus, starting its immunization rollout by focusing on health care workers, long-term care facilities, first responders and congregate care settings… The three-phase plan is scheduled to roar into action this month with the first 60,000 doses set to arrive by Dec. 15. About 300,000 doses, including both Moderna- and Pfizer-manufactured vaccines, should arrive by the end of the month.”

The general public should be able to get in line for vaccines by Mid-April. 

Details of the Governor’s plan to distribute vaccines can be found here.

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• ‘We need relief now’: Massachusetts leaders clamor for COVID stimulus

• https://www.masslive.com/politics/2020/12/serge-georges-jr-unanimously-confirmed-to-massachusetts-supreme-judicial-court.html

Business

Unemployment Continues to Rise

Again with the jump in jobless claims as the state rolls back its reopening plan. Nearly 34,000 Massachusetts residents filed for first-time unemployment benefits last week — up by more than 2,800 from the week prior. As the virus continued to spiral out of control, unemployment has jumped nationwide to 853,000 last week. 

Included in these figures are “gig workers” and the self-employed who qualify for aid via the Pandemic Unemployment Assistance program — which expires at the end of the month.

WBUR has more on this story.

More Business

• MA restaurant owners fear rollback to Phase 3, Step 1 is another hit to business

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• BBJ research: Bank deposits rise in the face of the pandemic

• BookIt.com agrees to pay back $550,000 to hundreds of MA travelers

• Northeast Arc ranks No. 9 in Top 100 Women-Led Businesses in Massachusetts

• Blue Cross Blue Shield of Massachusetts awarded AIM's 2020 Sustainability Award

Energy

ISO Predicts No Grid Problem This Winter

Electric grid operators ISO-New England are assuring the public that they expect no problems in meeting New England’s power demand this winter. ISO expects to be able to provide electricity “under both normal and short durations of extreme temperatures” — at least through February.

ISO-New England Vice President of System Operations & Market Administration Peter Brandien said that based on weather forecasts, “fuel inventory assessments, and decreasing peak energy usage trends, the ISO expects the region will have the electricity it needs to meet consumer demand and maintain system reliability this winter.” 

The grid operator said it expects peak demand will be greater than 20,000 megawatts under normal winter weather — a decline of 310 MW or 1.5 percent from last winter’s forecast.

More details can be found at WWLP.com.

More Energy News

• Poll: Majority of Mass. Voters Support Regional Greenhouse Gas Pact

Transportation

MBTA Waffling On Service Cuts 

After an outcry from riders, transit advocates, and political leaders including Boston Mayor Walsh, the MBTA is trying to work out a plan to scale back planned system-wide service cuts meant to plus the budget deficit created by pandemic emergency measures.

Mayor Walsh lambasted the agency’s plan going so far as to call on state officials to solve the issue, even if it meant raising taxes. 

Emergency measures sent the ridership and revenue into a sinkhole forcing transit officials to consider cuts of more than $100 million to bus, rail, and ferry service.

Proposed cuts could eliminate 25 of 169 bus routes, consolidate another 14, and shorten five. It would also entail eliminating bus and train service after midnight and reducing the frequency of some train and bus routes. “Ferry service would be torpedoed,” as the Boston Globe cleverly put it. 

MBTA officials said they would provide details of the final draft of the proposed cuts in the coming days. A vote could come as early as next week. 

Below is more news and commentary on the MBTA woes:

• MBTA, MassDOT announce Tobin Bridge bus lane pilot

• Massachusetts announces Tobin Bridge dedicated bus lane pilot

• Can Emergency Funding Save US Transit Agencies?

Real Estate

Up To 14 Million Evictions Could Follow Expiration of Eviction Moratorium

The Centers for Disease Control and Prevention eviction moratorium is set to expire on December 31. And more than 14 million American households are currently at risk of receiving eviction notices with  4.9 million of them likely to be kicked out into the cold in January, alone. That is according to a report by global investment bank and advisory firm, Stout. 

Meanwhile, public health officials predicted that evictions could worsen the Covid-19 crisis resulting in a vicious cycle. 

Asked whether he would consider resuming the state’s eviction moratorium, Mass. Gov. Charlie Baker said the commonwealth should have enough resources to assist tenants and landlords who are behind on payments. 

Currently, renters in the U.S. are already burdened by an estimated $25 billion in past-due rent debt.  

Read all about it at Boston Business Journal. 

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Cannabis

Marijuana Delivery Rules Expose Rift In Mass. Cannabis Industry

Newly approved home delivery rules have caused a rift in the Massachusetts cannabis industry. The Massachusetts Cannabis Control Commission voted to approve the revised regulations on November 30. Many dispensaries across the state are protesting the revised regulations. 

Most unhappy are the brick-and-mortar dispensaries which would be prevented from making their own deliveries until 2024. 

The CCC created two classes of adult-use marijuana delivery licenses —  marijuana couriers, and marijuana delivery operators. Third-party marijuana couriers will be permitted to pick up and deliver cannabis products to consumers from a retail dispensary. And marijuana delivery operators would be permitted to inventory products without having to operate a retail storefront essentially putting them in direct competition with local marijuana dispensaries.

The Commonwealth Dispensary Association (CDA) plans to challenge the new regulations in court. 

Check out the report at the Berkshire Edge. 

Cannabis Now Most Valuable Crop in Maine

Move over potatoes and blueberries. Cannabis is now Maine’s most valuable crop.  Medical marijuana sales in the state rose from over $100 million in 2019 to more than a quarter of a billion dollars in 2020. Potatoes bring in around $180 million, and blueberries a mere $26 million according to Maine Revenue Services.

According to state sales tax figures, medical marijuana sales added up to more than $220 million from January through October. That’s more than double the previous year, Maines cannabis industry is on pace to hit $266 million in sales for 2020. 

It has been a record-breaking year for the cannabis industry as a whole. 

Learn more at the Portland Press Herald.

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Public Transit Collides with COVID-19

This week in Massachusetts news, the Covid-19 pandemic continues to ravage the state, the economy and now the MBTA. While the state insists recently proposed service cuts are necessary and temporary, most residents are in disbelief and living in fear that the axed services will never return. 

Worse yet, but not as widely discussed, the number of small businesses open in Massachusetts has plummeted by a staggering 37 percent this year as small business revenue has decreased nationwide by 44 percent since January 15, 2020. 

The hospitality industry has been especially hard hit with a 64 percent decrease in revenue for small businesses in the industry. One particularly sad sign of the decline is the unloading of the iconic Commonwealth Hotel by Xenia Hotels & Resorts just four years after the company acquired the property. The landmark hotel was sold at a cavernous loss of $23 million. 

In the good news column — at least if you’re a stakeholder in the cannabis industry — within the same week, the U.S. House of Representatives passed a landmark marijuana policy reform bill while the U.N. removed cannabis from its most prohibitive controlled substances classification. The changes are bound to increase the flow of investment capital into the Green Rush.

Let’s get to work. 

Transportation

The big news in transportation these past few weeks has been the looking cuts in MBTA services. The proposed cuts, called “unnecessary” in an extensive op-ed at CommonWealth Magazine penned by Chris Lisinski, have been extremely unpopular. 

An online survey of 1,340 Massachusetts residents showed that 64 percent somewhat or strongly oppose the proposed cuts in service. Moreover, although MBTA General Manager Steven Poftak has stated that the cuts are not permanent, 54 percent said they didn’t think the eliminated services would be restored after the pandemic abates.

A laundry list of service cuts has been proposed by the MBTA in order to deal with a $579 million budget shortfall as ridership has been decimated during the pandemic. Cuts include less frequent subway and commuter trains, the elimination of 25 bus routes, and the cancellation of ferry service.

The Fiscal and Management Control Board plans to vote on the package soon.

More Transportation News

• MBTA service cuts called unnecessary

• Poftak: MBTA Cuts "Not Permanent," Target "Primarily Non-Essential Services" 

• Poll shows little support for MBTA service cuts CommonWealth Magazine

• POLL: Proposed MBTA CUTS are UNPOPULAR — Virus cases at RECORD HIGH — ELLIS seeks NEW TRIAL

• Possible commuter rail service cuts to impact MetroWest, Milford riders

• State to explore options for passenger trains between Middleboro/Lakeville and the Cape.

• Some ferry service must be maintained

• Green Line Extension project to move forward amid MBTA proposed budget cuts, service changes for 2021

• Renumbering of exits along Mass. Pike scheduled to begin on Dec. 13

• How have pandemic bus lanes worked out in Chicago, Boston, and SF?

Business

The Number Of Open Small Businesses In the Bay State Falls By a Staggering 37%

The number of small businesses open in Massachusetts has declined by a staggering 37 percent since January 15, 2020, as nationwide revenue for small businesses has plummeted by an even more unbelievable figure of 44 percent. That is according to data published by a nonpartisan research organization at Harvard University. Interestingly, revenue for small businesses offering professional and business services decreased by only 4.4 percent.

Both CBS Local and the Boston Herald have more details on this story.

More Business News

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Real Estate

Landmark Hotel Commonwealth Sold At $23 Million Loss

Boston’s beleaguered hotel industry is in shock after Hotel Commonwealth, a popular Kenmore Square hotel was sold at a loss. Florida-based Xenia Hotels & Resorts sold the luxury hotel to Ohana Real Estate Investors for $113 million. That’s $23 million less than Xenia paid for the property just four years ago.

The Boston Globe had this to say about the news:

“It’s a rare reversal in price for a trophy piece of Boston real estate, which for the most part has only gone up in value over the last decade. But it has been an unusual nine months in the real estate market, especially for hotels, whose bookings have evaporated amid a pandemic that has largely shut down both business and leisure travel.”

According to a report by hotel consulting firm Pinnacle Advisory Group, Boston has suffered the sharpest drop in business of any of the 25 largest hotel markets in the country. 

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Politics

Kimberly Budd sworn in as chief justice of the Supreme Judicial Court

Kimberly Budd has been sworn in as Supreme Judicial Court Chief Justice. Budd served on the SJC since 2016, where she has co-authored more than 85 decisions and has served on several judicial committees. Budd was unanimously confirmed by the Governor’s Council to lead the high court last month. 

Councilor Marilyn Devaney said during the Governor’s Council hearing last month:

“[Justice Budd] has all the attributes. She is compassionate. She has empathy. She has all the qualifications, and she has the demeanor and temperament that we need in that position.”

Budd replaces her mentor, the late chief justice Ralph Gants. She is the first Black woman to lead the high court. 

Read more at MassLive.com.

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Energy

Offshore Wind “Lynchpin” of Mass. Clean Energy Transition

Energy and Environmental Affairs Secretary Kathleen Theoharides, the Baker administration’s top energy official, recently said at a conference of regional power generators, market regulators, and other energy experts that she expects offshore wind to be the “linchpin of the state’s clean energy transition.” That is according to a report in the Lowell Sun. 

However, she says the state will need help from the incoming Biden Administration in order to meet the state’s goal of net-zero carbon emissions by 2050. 

Theoharides said: 

“To fully address the issues of climate change, we feel strongly we need every level of government working in this space and I am hopeful there will be increasingly emphasis on this in the new administration, but I have no doubts that it will continue to be a challenge given the politically divisive nature of climate action.” 

Also, according to the report, Federal Energy Regulatory Commissioner, Republican Neil Chatterjee predicted that the Biden administration would bring renewed focus on climate and energy policy stating that it is “clear that energy and environmental policy issues are going to be top priorities for the incoming administration.” 

Chatterjee was recently demoted by President Donald Trump from chairman of FERC.

More Energy News

• Massachusetts projects aim to reduce dependence on natural gas

• Op-ed: Hydrogen is the missing piece of Mass. clean energy economy

• Solar energy saved Vermont $17 million in 2019

• Local municipalities applying for solar energy grant

• Agilitas Energy closes sale of US solar projects to CarVal | Renewable Energy

• Federal review of Vineyard Wind delayed again

• Investment firm acquires 12-project East Coast solar portfolio from Agilitas Energy

• Giant New GE Wind Turbine Can Power A Home For A Day In Just 7 Seconds

• Offshore Wind Looks at Crowded Future in New England

• ‘A huge setback’: Candlewood Mountain solar project dealt blow

• Marblehead among 19 Mass. utilities to sign hydroelectric power deal

Cannabis Industry

This big news for the Massachusetts cannabis industry is global this week. 

First off, in an historic move, the U.S. House of Representatives has passed the MORE Act by a vote of 228-164, largely along party lines. The measure goes beyond decriminalization “including several social and criminal justice measures that would help lift up the communities of color ravaged by the War on Drugs, while helping build an equitable cannabis industry in which the people of color disproportionately impacted by prohibition have a seat at the table,” says Rolling Stone. 

The bill must still run the Senate gauntlet and be signed by the president. Whether or not those things will come to pass are anyone’s guess. 

Second, The United Nations’ Commission on Narcotic Drugs (CND) has removed Marijuana From its Most Strict Global Drug Category. The move, which was recommended by the UN-based World Health Organization, has U.S. Support. Cannabis, which has been on Schedule IV since 1961, is now a Schedule I controlled substance. 

Cannabis policy reform advocates say the move “demonstrates an evolution in how the international community views cannabis policy, as it formally recognizes the medical value of the plant and it could promote further research into its therapeutic potential.” 

Read more at industry news source Marijuana Moment. 

More Cannabis Industry News

• Down to three, Massachusetts Cannabis Control Commission plots path forward

• What’s holding up marijuana home delivery?

• How to diversify the medical marijuana industry 

• CommonWealth Magazine

• HIV survivor wants to expand medical marijuana discounts for people with HIV/AIDS facing hardships

• Black market may be marijuana legalization’s biggest challenge

• MariMed Announces Launch of Nature’s Heritage™ Solventless Concentrates in Massachusetts

• New Cannabis Store Opening Near Hudson's Retail Hub

• With new licenses approved, Berkshires dispensaries seek delivery partnerships

• Home Cannabis Cultivation Continues, Despite Opposition From Many Marijuana Companies

COVID-19 News

We have quite a bit of news on the Covid-19 pandemic this week:

• Coronavirus in Massachusetts: Households, not restaurants, drive COVID surge

• White House task force suggests Mass. should roll back reopening

• Churches linked to dozens of coronavirus clusters in Massachusetts, but no new restrictions coming

• Massachusetts bars, restaurants suffer as coronavirus spreads mostly in households

• WALSH: SHUT DOWN would be ‘LAST RESORT’ — RESTAURANTS face TOUGH WINTER — LOWELL to open FIELD HOSPITAL

• Baker Expects 300,000 Vaccine Doses in Mass. by End of Month

• State’s 2d surge is not the same as 1st

• 97 Massachusetts cities and towns are now at high risk for coronavirus [+chart]

• See how Massachusetts' COVID-19 risk map has evolved week-by-week

• Will Massachusetts Shut Down Again? New Town-by-Town COVID Hot Spots, Travel Order

• Massachusetts vaccine rollout will be 'lumpy,' Charlie Baker to reveal details Monday

• Massachusetts Commonwealth Secretary William Galvin proposes national COVID-19 vaccination day

• The Pfizer COVID vaccine is coming, but some Massachusetts hospitals don't have the freezers needed to store them at minus 112 degrees

• First doses of Pfizer vaccine could be available in Massachusetts Dec. 15: top doctor

• More than one-third of Massachusetts residents unlikely to get COVID vaccine, according to new poll

• Most of Moderna’s coronavirus vaccine will be made in Massachusetts, co-founder says

On Budgeting in a Pandemic

It would be a massive understatement to say that it’s challenging to ascertain an accurate annual budget for a Commonwealth the size of Massachusetts when there’s a global pandemic raging and literally no one knows what the future holds. The state has been running on a stopgap budget since the beginning of Fiscal 2021 (beginning of July) while lawmakers fumble with vacillating revenue projections. 

The much-dreaded second wave of Covid-19 cases is blowing up the state’s unemployment numbers once again. And there’s talk of another statewide shutdown casting increased uncertainty about whether or not revenue projections are accurate. 

Nonetheless, both houses of the state legislature have finally passed a $46 billion budget for fiscal 2021. 

Also now in question is the ambitious Transportation and Climate Initiative. In its current state, the proposed measures were based on pre-pandemic travel statistics. But travel in the state has plummeted due to emergency measures — and more are on the horizon.

The initiative, intended to reduce carbon emissions, was this close to being signed, sealed, and delivered. However, Governor Baker and some of the other governors of the Northeast and Mid Atlantic states taking part in the pact are now questioning the wisdom of passing a program that was based on an economy that now seems like a past life. 

It’s a mad, mad world. 

Let’s have a look at this and other news from around the state. 

Politics

Senate Approves $46B Budget

Last week, the Mass. House of Representatives approved a $46 billion budget proposal. This week, the Senate has approved its version of the budget. According to Senate leaders, the proposed budget — an increase of about 5.5% over the prior fiscal year —  is centered around an effort to build a more equitable economic recovery by making investments in early education and childcare, food security, housing support, and public health.

Although the budget is for the fiscal year that began back on July 1, due to uncertainty of the economic impacts of the pandemic, the state has been running on a temporary budget. 

Governor Baker is expected to sign off on the final budget. 

Massachusetts Officially Breaks Turnout Record by Nearly 300,000 Votes

All of the ballots for the 2020 election have been tallied and certified and the grand total of voters fell just short of a record-breaking 3.7 million. To be exact, 3,657,972 ballots were cast in the election — or about 76 percent of the number of registered voters — busting the previous record set in 2016 by about 300,000 votes. 

Earlier this year, in response to the pandemic, lawmakers expanded early and mail-in voting, methods which accounted for almost 2.6 million ballots. Secretary of State Bill Galvin has voiced his support for making expanded mail-in voting options permanent.

Economy

Unemployment On the Rise Again

This past October, the Massachusetts unemployment rate fell to its lowest level since June — down to 7.4 percent, from 17.7 percent in June. However, along with Covid-19 cases, unemployment claims are again on the rise. 

According to the latest data from the U.S. Labor Department, more than 60,000 Mass. residents filed first-time claims last week. That number, which is more than 10,000 higher than the previous week, includes both traditional unemployment claims as well as independent contractors and gig workers who have been filing under emergency rules.

The higher numbers are being attributed to business closings due to new restrictions imposed in early November including a stay-at-home advisory and a 9:30 p.m. curfew for most activities.

More than six percent of the Massachusetts workforce was receiving unemployment compensation at the end of last month. That’s one of the highest rates in the country.

More Economic News:

• VIDEO: Phase 4 Businesses In Massachusetts Eager For COVID Vaccine

• Is Massachusetts Going to Shut Down Again? The Latest on Travel Ban, Thanksgiving Guidelines

Transportation

Baker Voices Pessimism on Transportation and Climate Initiative 

Gov. Charlie Baker and fellow governors taking part in the Transportation and Climate Initiative are reevaluating support of a controversial carbon tax. The program is a regional pact between 11 Northeast and Mid-Atlantic states designed to reduce greenhouse gas emissions. 

Last Tuesday during a press conference at the State House, Baker pointed out that travel patterns have shifted as more people work from home. 

Baker stated:

"We're living at a point in time right now that's dramatically different than the point in time we were living in when people's expectations about miles traveled and all the rest were a lot different… Modeling, I think, is an import part of figuring out how people feel about the cost-benefit associated with the program and the product and it's certainly something that we think is an important part of helping states make decisions." 

Meanwhile, advocates of the measure are still urging its passage. Earlier in the day, more than a dozen Massachusetts environmental, health and transportation groups joined 200 organizations in penning a letter to Northeast governors, including Baker, urging them to launch the Transportation and Climate Initiative program. Additionally, Mass. Director of Transportation Chris Dempsey said the program would "address climate change and improve the quality of life of Massachusetts residents."

Paul Craney, of the conservative Massachusetts Fiscal Alliance, on the other hand, called the initiative "elitist" stating, quote: "Climate alarmists that are still pushing the regressive TCI gas tax scheme need to understand that the world we live in now is not the same world we lived in when TCI was first introduced."

Studies have shown transportation is the largest source of air pollution in Mass. accounting for more than 40 percent of the state’s greenhouse gas emissions. However, with a massive reduction in travel, Baker believes those numbers need to be reevaluated.

Official estimates put the increase in gas prices due to the measure at between 5 and 17 cents per gallon in the first year. 

Governors in New Hampshire, Connecticut, and Vermont are also voicing concerns about the plan. An agreement was originally expected by the year's end. However, with support waning, the fate of the initiative is unclear. 

Read all about it at MassTransitMag.com.

More Transportation News

• Rail News - MassDOT awards grants for rail industrial projects. For Railroad Career Professionals

• Massport to Slash Its Workforce By 25 Percent Amid COVID Pandemic

• Pollack punts on Allston I-90 project

• Legal Settlement to Restore Carpool Lane, Add New Bus Lane on Tobin Bridge

• MBTA Joins the Boston Foundation and the Massachusetts League of Community Health Centers to Make Using the T Easier for Neighborhood Residents

• Transit advocates say MBTA's temporary cuts will have permanent effects

• Senate still not taking up transportation revenues

Energy

At the Third Annual MassEVolves Recognition Ceremony, held this week, several companies and higher education institutions across Massachusetts were recognized for their work in promoting the expanded use of electric vehicles in their communities and across the state.

To receive recognition, MassEVolves participants are required to create and execute an EV Action Plan. The plan must outline steps being taken to help Massachusetts residents gain greater access to electric vehicles. 

Participants Recognized for 2020 MassEVolves program:

• Analog Devices

• AstraZeneca

• Bard College at Simon's Rock

• Boston University

• Braintree Electric Light Department

• Bristol Community College

• EMD Serono Research

• Energy New England

• Hampshire College

• Holyoke Community College

• Millipore Sigma

• Tufts University

• University of Massachusetts Amherst

• University of Massachusetts Dartmouth

• University of Massachusetts Boston

• University of Massachusetts Medical School

• Woods Hole Oceanographic Institution

• Worcester Polytechnic Institute

• Worcester State University

Read more at Yahoo Finance. 

Videos from the event are accessible at massevolves.org/2020-recognition-event.

More Energy News

• Massachusetts Organizations Honored for Efforts to Expand Adoption of Electric Vehicles in the Commonwealth

• Powering through the coming energy transition

• U.S. advanced battery startup Form Energy nabs $70 million in funding: CEO

Real Estate

The median home prices for single-family properties and condos in Massachusetts hit record highs for October. According to a report released Tuesday by The Warren Group, single-family home sales are up 27 percent and the cost of a single-family home rose 17 percent. The median price of a home in Mass. is now $455,000. The median price of a condo went up 10.8 percent to $410,000 with a rise in sales of 17 percent year-over-year.

Tim Warren, CEO of The Warren Group had this to say about that:

“Despite higher COVID-19 infection rates, consumers across Massachusetts continued their real estate buying binge in October. Strong demand from buyers, scant supply from sellers, and rock bottom interest rates continued to push the median single-family home price higher, and it has now been above $450,000 for four consecutive months.”

Read all about it in Real Estate News.

More Real Estate News

• HUD Announces Over $5 Million in Targeted Funding for Massachusetts Coronavirus Relief

• These four Massachusetts ZIP codes are among the most expensive in the US

Business

Although the House of Representatives approved sports betting in its economic development bill, the Senate has nixed the notion. The proposed amendment to legalize sports betting in the state was expelled without a roll call vote. 

The amendment, proffered by Minority Leader Bruce Tarr would have allowed licensed casinos, racetracks, and online operators to take bets on sporting events. 

Experts estimate the annual revenue from sports betting in Massachusetts might have ranged from about $20 million to $35 million. For comparison, casino and slot parlors in the state currently average about $21 million in revenue each month. 

The dead amendment had earmarked revenue from application fees to be used to create a new economic recovery fund.

More Business News

• Senate Rejects Sports Betting, Adds TNC Fees To Budget

• Fastest-growing minority-owned companies in Massachusetts on BBJ's Fast 50

• These 36 Massachusetts firms made Deloitte's Technology Fast 500 in 2020

• Nominate A Massachusetts Business Of The Year | Across Massachusetts, MA Patch

• HubSpot: No. 1 on list of largest companies in Massachusetts in 2020

Cannabis 

Hemp Farmers Eyeball Marijuana Dispensary Sales 

The 79 licensed hemp farmers and 19 hemp processors in Massachusetts are anxious to get their products onto marijuana dispensary shelves in the state. They’ve been lobbying for the inclusion of a budget amendment to allow them to do just that. 

However the proposal “carries complex policy implications that highlight the unusual regulatory system governing different aspects of the cannabis plant,” according to Commonwealth Magazine. 

Currently, the FDA prohibits the use of CBD in foods and dietary supplements. Furthermore, the state Department of Agricultural Resources prohibits the sale of raw hemp flower which is commonly used for smoking, vaping, and cooking because it could easily be confused with marijuana (which is now legal for all adults).

On a related note, as we reported last week, earlier this month it was announced that state-licensed dispensaries had passed the $1 billion mark in cannabis sales. 

Commonwealth Magazine has more on this story.

More Cannabis News

• Boston approves new marijuana stores near Boston College and Berklee, overriding objections from schools

• State cannabis official offers help amid approval delays for Springfield shop 6 Brick’s

• 'Green Wednesday': Mass. marijuana stores prepare for start of gift-buying season

More of the Latest Massachusetts News

Video: Mass. Gov. Charlie Baker's coronavirus update Wednesday, Nov. 18

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• As Mass. Schools Go Remote, How Many Students Aren't Logging On?

• MA Travel Order: Mass. to Require Quarantine for Travelers From Connecticut, NJ

• Long lines as Massachusetts residents rush to get coronavirus tests before Thanksgiving

• New York discourages travel to Massachusetts

• Which students in Massachusetts are learning remotely? New poll finds major socioeconomic disparities.

• Citizens Bank to close dozens of Stop & Shop branches

No End In Sight

We’re not even going to talk about the election. There’s a much more pressing matter for the residents of Massachusetts this week. A ghastly resurgence of Covid-19 now threatens the lives and livelihoods of all of us here in the Bay State. We were hoping to be done reporting on this months ago. 

One of the institutions hit hardest by pandemic-related emergency measures is the MBATA — which is considering massive cuts to services early next spring that will inevitably and adversely affect untold numbers of commuters and the carless. 

Meanwhile, over at the Boston Herald, contributor David Gahl has pointed out a major loophole in the state’s hallmark climate bill, ‘Creating a 2050 Roadmap to a Clean and Thriving Commonwealth.’ Language in Section 15 could be exploited to end the longstanding separation of utilities and power generation companies — with potentially dire consequences.

On a debatably brighter note, the state recently passed the $1 billion mark in legal cannabis sales bringing in over $200,000 in tax revenue. However, that news is sullied by the fact that the state’s social equity programs are sorely lagging.

Let’s talk about these things...

A Grim Milestone: 10,000 Covid-19 Deaths

Back in late winter and early spring when everyone was freaking out about the specter of the “novel coronavirus,” who would have guessed that ten months later the problem would be far worse but that far less would be being done about it? It seems more is being done to manage the economic and financial fallout than is being done to prevent a humanitarian disaster of epic proportions. 

The number of confirmed Covid-19 cases in Massachusetts is screaming past 175,000 as you read this. And 10,000-plus Mass. residents are now dead since the first confirmed passing back in mid-March — an 87-year-old veteran. This past April, around 2,000 people a day were being diagnosed with the virus. After a brief summer downturn, that number has since doubled to 4,000 statewide.

Boston Mayor Marty Walsh is warning that a second shutdown of the economy would be "far worse" than the first. Here’s what he had to say:

"What we're seeing in Tennessee and other parts of the country and other parts of the world, honestly, we cannot afford to have that in Boston. If we do, we're going to have to shut everything down again. The first one was bad on business. I think the second one will be far worse."

Boston.com has some Mass. Covid-19 charts and graphs for those who are interested in following along as the crisis continues to unfold.

MBTA Slashing Services as Funds “Fall Off Cliff”

Over the past couple of weeks, this column has bemoaned the MBTA’s budget woes and pondered possible courses of action. Fare revenues have been razed by pandemic response measures. And now the agency is proposing to cut $142 million from its spending by summer 2022.

As reported by the Boston Globe, here are just a few of the changes being proposed:

• All bus and subway service would end at midnight rather than 2am.

• Subway frequency would decline by about 20 percent.

• The most frequent bus routes would be reduced by an average of 5 percent.

• A number of bus routes would be consolidated or shortened.

• 25 bus routes would be eliminated.

• Ferry service between downtown Boston and Hingham, Hull, and Charlestown would stop operating as soon as March.

• Commuter rail service would no longer operate on weekends.

• Six commuter rail stops would be closed.

Needless to say, not everyone agrees on whether or not these changes are a good idea, but the consensus seems to be that there is no other choice. 

Just take a look at some of these headlines:

• WHDH - VIDEO: Local officials holding ‘Save Our Trolley’ rally in response to proposed MBTA service cuts

• Boston Herald: MBTA's austerity measures the right route to take

• CBD Local - Walsh: Major MBTA Service Cuts Could 'Damage Our Recovery'

• Boston Globe Proposed MBTA cuts would make nagging concerns even worse

Information about changes to specific routes is available online at mbta.com/forging-ahead. The MBTA’s plan will go out for public comment over the next month, before the agency’s oversight board votes in December.

Solar Industry Wary of “Poison Pill” provision

In a Boston Herald op-ed by David Ghal, “Poison pill provision undermines Massachusetts climate legislation,” that deserves to be quoted at length, the author writes:

“Buried deep within a hallmark climate bill, ‘Creating a 2050 Roadmap to a Clean and Thriving Commonwealth’ (H.4993), is an anti-competitive provision that would allow electric and gas utilities to construct, operate and own solar projects. On its face, it appears helpful but in reality, it’s a time machine back to the 1990s when utilities had a monopoly on energy services and left customers with inflated, artificially high energy bills.”

Gahl goes on to state that the current law enabled solar to go from .002% of the Commonwealth’s in-state electricity generation in 2010 to over 17% today with powering being generated by more than 400 solar companies that employ over 10,000 Massachusetts residents. 

According to Gahl:

“The [existing] law was specifically designed to separate the duties of electricity generation from power delivery. Utilities would focus on delivering power, while encouraging private companies to compete in electricity markets to supply power to residents, helping us incorporate clean energy sources while also building a local economy to support these businesses.”

Gahl then makes an even better point: Section 15H of the climate bill would end the longstanding prohibition on utilities owning power plants and permit them to “get back into the power plant business under the auspices of serving local governments.” The move, says Gahl, could allow profit-motivated utilities to “resume their reign over both electricity delivery and production.” 

According to Gahl, there is no evidence that utilities can serve municipal customers better than the independent market. “In fact,” says Galh, “the utility industry’s record is the exact opposite… and that there is already a successful program in place that “encourages independent solar companies to serve local governments by offering them low-cost clean power to meet their energy goals.”

Unlike nearly all of the bill’s major provisions, says Gahl, Section 15H “was never part of stand-alone legislation; nor was it subject to a hearing or testimony from stakeholders. Instead, it takes advantage of the pandemic to tacitly reintroduce vertically integrated monopolies at the expense of our local solar industry and Commonwealth residents.”

Gahl is calling on lawmakers to drop Section 15H, from any final legislation.

You can read the entire op-ed here, but our summary does it justice.

Cannabis Sales Blast Past the $1 Billion Mark

While much of the state’s economy is feeling the crush of Covid, there is arguably at least one bright spot. Massachusetts has officially surpassed $1 billion in adult-use cannabis sales. And, so far, legal marijuana has brought in about $200 million in tax revenue.

Exactly four years after Mass. voters chose to legalize marijuana for medicinal use, and two years after retail pot shops opened, the Massachusetts Cannabis Control Commission reported exactly $1,000,521,905 in sales.

Commission Chairman Steven J. Hoffman had this to say about the momentous milestone:

“This sales milestone represents licensees’ ability to successfully support a safe, accessible and effective adult-use industry, and I am pleased the resulting tax benefits will have a significant impact on communities throughout the commonwealth. These numbers also speak to commission licensing and enforcement staff working around the clock to make sure these businesses and their products comply with all of our regulations, especially the health and safety provisions.”  

However, not all aspects of the state cannabis program are full steam ahead. One of the most important pieces of the puzzle — social equity programs — are severely lagging behind goals set by the Mass. legislature and the CCC. 

Still, to this day, people of color and people from communities disproportionately harmed by the Failed War on Drugs are grossly underrepresented in the state’s cannabis industry. That is according to Shanel Lindsay, who has served on the Cannabis Advisory Board and is the CEO of Ardent Life. Lindsay said:

“Despite the fact that we worked tirelessly for over five years, minority ownership is almost non-existent. So yes, we should be angry and offended when, as we’re starting to make small steps towards equity in these delivery licenses, that like clockwork the same corporate interests focused only on preserving their unearned monopoly come in to push back on equity and to crush us.” 

VIDEO: Equity advocates tired of waiting on marijuana delivery framework

The state’s adult-use cannabis industry has employed nearly 6,000 workers making Massachusetts one of the leading states for cannabis employment. Nationwide, legal cannabis operations now employ nearly a quarter of a million Americans.

On Election Day 2020, another four states joined the ranks of those with recreational marijuana programs bringing the total number of states with legal cannabis to 15. Voters in Arizona, Montana, New Jersey, and South Dakota all passed adult-use cannabis ballot initiatives. Mississippi joined the ranks of the now 34 states with medical marijuana programs. 

Also this week, Gallup released a poll that showed that 68% of Americans now support state and federal marijuana policy reforms. How long will it be before the Federal government stops dragging its feet on this issue? Someone needs to tell Senate Republicans to concede on this matter. Let’s face it. They lost the war on drugs. And at great cost to the American people. 

More of the Latest Massachusetts News

• Boston's real estate industry sees greater predictability under President Biden

• Waterton Enters Boston Market

• Boston Properties Announces 138,000 Square Foot, 10-Year Lease With Translate Bio in Waltham, Massachusetts

• State House News Service - Mass. Economy Should Be Well-Positioned for Rebound, Rating Agencies Say

• Boston Globe - Baker says he would veto any attempt to change law that allows him to name an interim senator

• CommonWealth Magazine - Tribe chairman arrested for extortion related to Taunton casino

The Historic Week Before Another Historic Week

If the pundits are to be believed, we are nearing the most consequential election of our lifetimes next Tuesday. But Massachusetts made its own history this week, with the nomination of Supreme Judicial Court Justice Kimberly Budd to become the next Chief Justice, replacing the late-Chief Justice Ralph Gants. And with home prices skyrocketing, Massachusetts set another September record for median single-family home prices rising to $472,000. Before election-pocalypse gets to all of us, let’s take a look back at what caught our eye this week.

DPU Orders Utilities to Develop Plans to Phase Out Natural Gas

In order for Massachusetts to reach its goal of net-zero greenhouse gas emissions by 2050, the Massachusetts Department of Public Utilities has ordered the state’s natural gas utilities to come up with plans to phase out their businesses over the next 30 years “while simultaneously safeguarding ratepayer interests; ensuring safe, reliable, and cost-effective natural gas service; and potentially recasting the role of LDCs [local distribution companies] in the Commonwealth.” 

In an Oct. 29 press release, DPU Chairman Matthew Nelson said:

"As the Baker-Polito administration has committed to an aggressive goal of net zero emissions by 2050, this investigation will analyze the future role of natural gas as part of Massachusetts' energy system… The commonwealth continues to lead the nation on climate change mitigation, and this order will help assess how to best achieve deep emissions reductions while ensuring a safe, modern and cost-effective heating distribution system for Massachusetts ratepayers."

National Grid, which has 925,000 natural gas customers in Massachusetts issued this statement:

”We know this cannot be achieved by maintaining the status quo. Though we do not have all the answers, we believe our electric and gas networks, which play a vital role in the lives of our customers, can be useful in achieving net zero emissions.  We are eager to collaborate on solutions and look forward to expanding on our many decarbonization initiatives in pursuit of a cleaner and fairer energy system that leaves no customer or community behind.”

The DPU said the investigation could recast the role of gas utilities in the state. And Attorney General Maura Healey, who asked the DPU to reevaluate their future plans in early June, said that the investigation is “nation-leading.” 

Here are some figures related to the state’s energy supply as of this week:

• 68% of the region’s electricity came from plants powered by natural gas.

• 17% came from nuclear power

• 8% came from hydro

• 7% came from renewable energy sources such as solar and wind

• 51% of Massachusetts households heat their homes with natural gas

• 27% heat their homes with oil

• 15% heat their homes with electricity

• 3% heat their homes with bottled gas

The DPU order requests that gas utilities provide status updates on their progress on March 1 and again on September 1, 2021, and to submit proposals, recommendations, and plans for achieving state climate goals by March 1, 2022.

The Baker administration is expected to release roadmaps for achieving greenhouse gas emission targets before the end of this year. 

Commonwealth Magazine has a full report. 

Three Alternatives to East-West Rail Being Considered

Three alternatives to an east-west passenger rail have been proposed by Mass. officials in an attempt to speed up Springfield to Boston commutes. The three alternatives are a combination of using existing tracks and building new rails.

One of six original alternatives to build high-speed passenger rail service on the Mass Pike, was abandoned due to projected high costs.

Maureen Mullaney, Program Manager for the Franklin Regional Council of Governments Transportation and GIS called the final three alternatives are exciting and revolutionary but added that it could take “quite a while” before any of the plans come to fruition but that it will be worth the wait. A proposed high-speed passenger rail could cost several billion dollars and take a decade or more to complete and would require state, federal, and local agencies to be on board with the plan.

The proposed projects will require federal investment and partnership between the Federal Railroad Administration, Amtrak, Massachusetts Department of Transportation and others, according to Mullaney. 

Read more at Athol Daily News.

Fenway Sports Group Announces Real Estate Development Plans

Fenway Sports Group Real Estate and WS Development have announced plans to redevelop four properties surrounding Fenway Park. The properties are located on Jersey, Lansdowne and Van Ness streets, and Brookline Avenue. Also being considered is a plan to build out over the Massachusetts Turnpike behind Lansdowne Street.

The developments may include housing, retail, office, and lab space, and possibly a hotel, including new office space for the Boston Red Sox organization.

Planning for the redevelopment has been ongoing for years. However, developers said that while extensive planning has begun, many details are still being considered such as cost, square footage, building heights, and the exact mix of what they intend to build. 

Click here to read more on this story by Ballpark Digest.

Supreme Judicial Court Nixes Workers’ Comp for Medical Marijuana

In other SJC news, justices ruled on Tuesday that employees who use medical marijuana to treat work-related injuries cannot be reimbursed through workers’ compensation. According to the ruling, workers’ comp insurers could, in theory, be charged with a federal crime to aid or abet cannabis use. 

According to the ruling by Justice Scott Kafker: “It is one thing to voluntarily assume a risk of federal prosecution, it is another to involuntarily have such a risk imposed upon you.”

Maine’s highest court issued a similar ruling two years ago. However, six states have allowed workers’ comp reimbursement to some extent: Connecticut, Minnesota, New Hampshire, New Jersey, New Mexico and New York. 

According to the Mass. Cannabis Control Commission, as of last year, there were more than 60,000 medical marijuana patients in the state and nearly 1.3 million ounces of cannabis were sold to medical patients.  

Read more at Courthouse News.

Boston Biz Journal Posts 4-Year Recreational Cannabis Retrospective

Boston Business Journal has published a retrospective timeline of the past four years of legal recreational marijuana sales in Massachusetts. The report lists some of the highlights from the past four years of recreational marijuana sales in the state. 

After four years in operation, here are some current facts about Mass. recreational marijuana:

• As of Oct. 9, a total of 689 licenses have been approved in Massachusetts

• 268 are licensed dispensaries

• The CCC has received 904 completed applications to operate in over 160 municipalities

• As of Oct. 10, 77 dispensary locations have commenced operations in the state

• In the past two fiscal years ending June 2020, the state collected $122 million in taxes (far below expectations)

• Of the 900-plus applicants only 42 identified as women-owned and 73 identified as minority-owned

• Only 67 social equity participants and 46 economic empowerment participants had submitted completed licenses

To read the full four-year retrospective visit MassLive.com.

More of the Latest Massachusetts News

• Small landlords oppose Boston proposal to block evictions in the city

• Massachusetts marijuana commission delays delivery rules

• Mass. clean energy leaders are optimistic about future growth

• Hydro power cleared to pump up power in Massachusetts

• ‘Streets are for people’: Boston reflects on the role of roadways after COVID-19

• Largest Clean Energy Companies in Massachusetts - Boston Business Journal

• Massachusetts town makes push to save transit lifeline with Boston

• Report paints poor picture of bridges - including 177 in Central Massachusetts

• ‘An unprecedented, unusual circumstance’: How COVID-19 is rattling the school bus industry in Mass.

• Covid-19 raises questions about MBTA commuter rail's future

• Griffith Properties and Artemis Partnership Buys Boston Building for $72 Million

• Sept. surge fueled 18% jump in single-family home prices in Mass.

• MBTA making changes to Commuter Rail schedule as pandemic impacts ridership

Substantial Budget Shortfalls Predicted for Next Year

Even with better-than-expected revenue during the past three months, economists are warning Massachusetts lawmakers that tax collections could fall below projections by as much as 12 percent for this fiscal year ending July 1, 2021. 

According to Revenue Commissioner Geoffrey Snyder, tax collections are expected to fall between $1.2 billion and $3.6 billion below projections. Moreover, those figures are based on lowered projections made after the coronavirus crisis started. 

Snyder's and other economists presented their projections at a hearing this past Wednesday. 

Compounding the problem is the fact that Mass. unemployment currently remains among the highest in the nation at 11.2 percent. 

As Eileen McAnneny, president of the business-backed Massachusetts Taxpayers Foundation pointed out, most of those gains realized so far this fiscal year have come from federal aid including the expanded unemployment benefits to the tune of $15.8 billion.

To help close the gap, President of Massachusetts Budget and Policy Center, Marie-Frances Rivera, along with a coalition of Mass. workers’ unions are imploring lawmakers to raise taxes on the state's wealthiest residents.  

Patch.com has more on this story.

Tight Budgets Expected to Put a Drag on Commuters

In the wake of revenue shortfalls, commuters in Massachusetts can expect increased fares, reductions in services, and slowed pace of repairs to the state’s transportation infrastructure. 

Like many agencies across the country, the MBTA is experiencing lower than expected fare revenue as a result of the pandemic. While ridership levels are slowly increasing, the agency expects continued uncertainty. 

The Massachusetts Bay Transportation Authority is considering a number of budget cuts including reducing and potentially eliminating some services after seeing a decline in ridership of up 95%.

Despite the fact that the MBTA has received more than $800 million as part of the CARES Act, the agency has been unable to balance its 2020 budget. The agency is estimating a budget deficit between $308 and $577 million for the 2022 fiscal year (which begins next October). 

A fare cap was instituted in 2016 by Gov. Charlie Baker that limits fare hikes to no more than 7 percent in a two-year period. Fares were increased in 2019 and cannot be raised again until 2021. 

Some of the proposed cuts include:

• Ending subway service at midnight

• Reducing train frequency

• Eliminating commuter rail service on weekends and after 9 p.m. on weekdays

• Eliminating some “non-essential” bus routes

Meanwhile,  according to data from the Massachusetts Department of Transportation, toll revenue has also declined by roughly one-third during the pandemic putting at risk repairs to the state’s roadways and infrastructure projects including repairs to the Tobin Bridge, highway system tunnels in Boston, and maintenance on I-90.

Here are some facts and figures as reported by MassLive.com.

• For the first eight months of 2019 MassDOT brought in roughly $245 million in revenue. 

• Toll revenue during the first eight months of 2020 is down approximately $80 million, to $163 million as of August.

• Revenue from the Western Turnpike dropped to $60 million for  January 2020 to August 2020 compared to $92 million for the same period last year.

• State highway extension and the tunnel system toll revenue totaled $129.6 million between January and August 2019. That number fell to $77.3 million during the first eight months of 2020.

• Toll revenue on the Tobin Bridge of $24.3 million between January and August 2019 fell to $17.3 million for the same period in 2020.

• In March, trips on the Massachusetts Turnpike, the tunnel system and the Tobin Bridge combined were down to fewer than a million a day compared to 1.5 million per day prior to the pandemic.

Learn more at the Daily Free Press, MassLive.com, and Mass Transit Magazine.

Curaleaf Receives CCC Approval for Acquisition of Alternative Therapies Group

The Massachusetts Cannabis Control Commission has approved Curaleaf Holdings, Inc.’s acquisition of Alternative Therapies Group.

Curaleaf is one of the leading vertically integrated cannabis operations in the country.

Joseph Lusardi, Chief Executive Officer of Curaleaf, said in a statement:

"We appreciate the work of the Commission, and we are pleased to have secured the final regulatory approval for our acquisition of ATG's Amesbury cultivation and manufacturing licenses and facility, paving the way for a successful completion of the transaction, and we thank the Commission. As we look ahead, the integration of ATG's cultivation and processing facility will expand our cannabis grow capacity in Massachusetts by 60%, allowing us to better address the rising demand we continue to see among medical and adult-use customers as well as expand Curaleaf's wholesale market presence. Overall, these enhanced production capabilities will provide a powerful growth engine for our business in 2021 and beyond as new harvests come online."

ATG operates a 53,600 square foot cultivation and processing facility in Amesbury, Massachusetts with dispensaries located in Amesbury, Salisbury, and Salem. Curaleaf also operates dispensaries in Provincetown and Ware, as well as a co-located medical and adult-use dispensary in Oxford, and a medical dispensary in Hanover. 

Read the company press release here.

Business is Still Booming For Cannabis

The Massachusetts marijuana industry has generated $273 million in sales since reopening roughly four months ago, after a short closure due to pandemic-related restrictions. And according to data from the Cannabis Control Commission, more than the $217 million in sales were generated in the four months prior to the shutdown. 

The WBUR website has more on this story.

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State Budget Closes with $700 Million Deficit

Gov. Charlie Baker filed a proposed closeout budget with the Legislature Wednesday that shows the state is ending fiscal 2020 with a close to $700 million budget gap claiming that the deficit is due to the COVID-19 pandemic and resulting lower-than-anticipated sales tax revenues, deferral of business taxes, lower gaming revenue, and lower gasoline taxes. 

To cover costs, Baker proposes to bridge the budget gap by diverting money from excess capital gains taxes which are currently earmarked for the state’s $3.5 billion rainy day fund, and that $108 million that was not spent in fiscal 2020 be carried over into fiscal 2021. Further, the governor proposes $424 million in new spending to cover costs incurred by the state Medicaid program. 

The bill now goes to the House for consideration. 

Read more about the proposal at Commonwealth Magazine.

The High Cost of the Coronavirus Response 

Massachusetts has spent $838 million of the $1.1 billion supplemental budget bill appropriated for combating the Covid-19 virus, according to a report released on Wednesday.

The biggest expenditure, according to the report from Secretary of Administration and Finance Michael Heffernan to the House and Senate Ways and Means Committees was $350 million for personal protective gear — slightly less than lawmakers’ earlier projection of $356 million.

The report includes a breakdown of expenditures incurred by the state:

• $20 million designated by the Baker administration to “address racial disparities in health during the 2019 coronavirus pandemic,” has yet to be released

• Also, an additional $111 million meant for health providers, hospitals, and nursing home payments has yet to be released

• Only $29 million of the projected $44 million budget assigned for a contract tracing program has been utilized by the state

• $47 million spent on field hospitals by the state is considerably less than the anticipated $85 million

Other Local Aid

The supplemental budget bill also allocated funds to cities and towns in Massachusetts to aide programs with the following grants:

• $846,000 for virtual learning programs

• $1 million to local boards of health

• $2.5 million to re-open schools

• $7.2 million for food distribution

• $25.7 million mostly channeled through the state’s rental assistance program, for housing programs

The remaining funds may be utilized by the state for Fiscal Year 2020, as the books have yet to be closed on the year ended June 30th.

Delve deeper at the Boston Patch.

Eviction Protection Bill Clears Housing Committee

The Joint Committee on Housing has cleared a path for an eviction protection bill just 18 days before the state’s eviction ban is set to expire. The bill’s authors seek to extend the current eviction moratorium. Should the bill pass, rent increases would be frozen until one year after the official end of the state of emergency.

According to the report in Commonwealth Magazine, all 14 Democrats on the panel voted to advance the bill while Republican Reps. David DeCoste and Will Crocker voted no, and Republican Sen. Patrick O’Connor of Weymouth abstained. 

Several changes were made to the initial draft that was filed at the end of  June including an allowance for landlords to apply for a tax credit from the state that would be equal to the amount of rent owed. In order to receive the credit, landlords would have to forgive the debt of tenants who can’t pay because of COVID-19–related financial hardship.  

Moreover, the bill would allow landlords with fewer than 15 units to pause mortgage payments for up to six months. Those payments would then be added to the end of their loan. 

Also, under the bill, eligibility for the Residential Assistance for Families in Transition program would be expanded to make low-income households that would be eligible to receive up to $10,000 to be used to pay rent.

Revised Ridership Estimates Put Federal Funding of East-West Rail Service In Jeopardy

A recent presentation to the East-West Passenger Rail Study Advisory Committee has revealed more details about the project. Consultants for MassDOT stressed in the presentation that the latest estimates of ridership might put required federal funding at risk at only about one-tenth of the level required to be considered “competitive.” 

Ethan Britland, the study’s project manager had this to say:

“Federal funding rules say that a (benefit-cost analysis) of 1.0 or higher makes it more competitive for federal funding, so we’re only at about 10 percent. As we all know, these are very expensive cost estimates, so federal participation, we feel, is key for any future project development that may happen. But with BCAs this low, it would be challenging for federal competition.”

And Kimberly Robinson, executive director of the Pioneer Valley Planning Commission stated:

“It is imperative that we look at the economic benefits of this type of infrastructure development. It is key to really understanding the full picture, because what we’re building, I believe, is opportunity and opportunities in many different ways.”

New projections suggest that passenger rail expansion into Palmer, Springfield, Chester and Pittsfield Massachusetts would attract 278,000 to 469,000 riders per year at a cost ranging between $2.4 billion and $4.6 billion.

Currently, the MBTA does not offer rail service west of Worcester. However, existing tracks currently carry freight and Amtrak trains all the way to Chicago.

The project team will submit a draft report summarizing its findings and the advisory committee’s recommendations Oct. 16. The document will then be released for a 30-day public comment period.

‘Cultivating Talent’ Cannabis Industry Job Fair 

On Oct, 9th from 2-4:30 pm, the “Cultivating Talent” job fair, aimed at those seeking employment in the cannabis industry will be held outdoors at Cambridge’s Starlight Square.

Employment opportunities include patient services, customer service, cultivation, security, logistics, retail, and quality assurance.

Attendees must be at least 21 years old, wear face masks and maintain a 6-foot distance from others. Do NOT attend if feeling ill. Capacity will be monitored. 

Interested parties may register online. Resumes are preferable, but not required.

Register online for the Cultivating Talent cannabis industry job fair. 

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