Tackling Climate Change and the Housing Crisis

A proposed bill intersecting real estate and renewable energy is headed to the state legislature for consideration. If passed, it will have major effects in Massachusetts, particularly around the dual housing and climate crises.

Led by HERO, the Housing and Environment Revenue Opportunities Coalition, this bill paves the way for both environmental and housing policy solutions. The bill calls for more funding to be diverted toward climate adaptation and green, affordable housing options for those at risk. 

Most unique is HERO’s pathway to get there. To raise adequate funding, the coalition aims to raise the Massachusetts deeds excise tax, nearly double it in fact, to raise annual revenue to approximately $300 million. Proceeds would be funneled into projects that directly support the intersections of energy efficiency and affordable housing. 

If you’re wondering what a deeds excise tax is in Massachusetts, you’re not alone. To put it simply, the excise tax is a fee paid to the state once a home is sold. The fee as of now, and for the last thirty years, has been roughly $2.30 for every $500 of home value. This equals out to $1,140 for a $250,000 home and scales upwards -- meaning a hefty fee for luxury home sales. 

According to HERO, the collected revenue would be split equally between environmental and housing efforts. Proponents of the bill are hopeful that more Massachusetts residents will be able to afford sustainable housing to mitigate greenhouse gas emissions. Not only would the programs help those in need find quality housing, but they would also support the nation-wide need to address climate change. 

The bill would effectively act as an all-in-one solution for the two major policy problems the Commonwealth is facing.Unfortunately, it seems that neither issue is easily solved by the solutions that Massachusetts has implemented in the past, as the dual housing and climate crises continue to grow at exponential rates. HERO is hopeful that this will change with the passing of this bill, which has already received both Senate and House support in its early stages. 

How Are Housing and Environmental Policy Related?

Both climate and housing conditions directly feed off of one another and are facing critical threat levels. With new developments being built that do not implement green energy, the climate crisis continues to worsen.  At the same time, new developments can price out vulnerable populations, leaving inadequate properties in vulnerable areas to those in need. Oftentimes those in the most vulnerable communities are the ones who are most likely to face the effects of climate change or  housing insecurity.

The good news is that, in effectively addressing just one of these issues, policies can also alleviate the other. For example, building new affordable housing that is energy efficient targets both the housing and climate crisis.. With this proposed bill, HERO aims to address both issues at the same time, recognizing how closely they’re related. 

FIND OUT MORE

https://energynews.us/2021/07/08/mass-bill-would-double-real-estate-fee-to-fund-clean-energy-affordable-housing/

Urgency Has A New Meaning

As spring transitions into summer in New England and emergency restrictions come to an end, the news has been trending to less urgent matters. However, that’s not saying much considering how ultra-urgent things have seemed for the past year. On another timeline where the road was less rocky, this week’s news might feel more urgent than it does today. 

Is a millionaire’s tax urgent when the state is rolling in billions of dollars in federal economic relief? Is the fact that businesses are scrambling to hire enough employees urgent if you’re being paid to stay home? Is the building of a fossil fuel-powered peaker plant urgent when a bank of batteries might suffice just fine? Is the Transportation Climate Initiative (aka TCI) urgent? Apparently not to Connecticut and ten other states that signed on and then off. We debrief on all these topics below. 

In a bright spot in this week’s news, two cities in the Bay State topped Safewise’s list of the 100 safest cities in the U.S. That’s something! 

Read all about the topics below and then charm your cronies with your clever conversance on current crises in Mass. politics. 

Politics

“Millionaire Tax” will be on the Ballot in 2022

A constitutional amendment that would raise the income tax on wealthy Massachusetts residents passed the Constitutional Convention, and the so-called “millionaire’s tax” will be included on the 2022 ballot. 

The proposal calls for an additional 4% tax on all household income above $1 million. This is in addition to the current flat income tax rate of 5%. The Department of Revenue estimated that the measure could generate as much as $1.9 billion in additional taxes. 

Senate President Karen Spilka and House Speaker Ron Marian defended the proposal in a joint statement. 

“As Massachusetts recovers from the COVID-19 pandemic, and as we prepare for our future, we have a unique opportunity to move towards a Commonwealth that truly works for all residents... We stand with the residents of Massachusetts in exploring new ways to increase revenue for the state as we envision and invest in an equitable and hopeful future for the Commonwealth.”

The proposal has the backing of the Raise Up Coalition, a group of labor, faith, and community organizations, who said in a statement:

“Long before the pandemic, Massachusetts needed new investments in our transportation and public education systems. These investments are needed now more than ever to lift up our economy for everyone and to ensure Massachusetts remains a great place to live, work, and raise a family. Massachusetts needs sustainable, long-term revenue for these investments that doesn’t require low- and middle-income families to pay more.” 

The proposal is getting some fierce blowback from business leaders who point to the fact that tax revenues are more than $1.8 billion ahead of projections through April and that the state is collecting another $5.3 billion in federal COVID-19 relief aid.

Read all about it at Boston Business Journal.

More Politics

• Tami Gouveia announces campaign for Massachusetts lieutenant governor

• Mass. Politicians In Hot Water: Baker, Walsh And The GOP

• An inspiration and mentor for women in politics, Betty Taymor dies at 100

• Battenfeld: Biden sets low bar for Irish ambassador, reportedly picking obscure Massachusetts Rep

• Poll: 70% of Americans now support same-sex marriage, 17 years after Massachusetts became first state to legalize - masslive.com

• Auto Parts Magnate Rick Green Hopes To Rev Up Mass. GOP

Business

Bay State Businesses “Scrambling” To Hire Workers, Pony Up Higher Pay

As the state opens for business, Massachusetts employers are “scrambling to hire enough workers to meet their reopening needs and the pent-up demand from patrons who want to go out again,” according to a story in the Boston Globe.

Some businesses in the state are increasing wages and adding hiring bonuses to attract applicants. Also being offered are deep employee discounts on products and services for new hires. 

According to the report, this comes at a time when weekly unemployment claims in the Bay State have fallen to their lowest levels since the pandemic-forced lockdowns. The shortage of workers could hamper economic recovery while increased wages are likely to lead to rising prices on some goods and services in Mass. 

Meanwhile, according to the US Labor Department, employers added 559,000 jobs in May. 

Here’s the full report: These companies are raising wages and offering bonuses to attract more workers in Mass.

More Business

• Remote Workers Face Uncertainty About Returning To 'Normal' As Offices And Businesses Reopen

• Business owners fear long-term impact of COVID on Mass. unemployment insurance fund, poll finds

• Mass Fintech Hub launches, with backing of MassMutual, Fidelity, others

• Mass. Restaurant Sales Back to 2019 Levels

• What to expect for the rest of 2021

Energy

Is Proposed “Peaker Plant” Already Obsolete?

A proposal for a 55-megawatt natural gas-powered “peaker plant” has come into question as environmental activists and local residents express concern over unnecessary greenhouse gas emissions and ground-level pollution. The group claims that future regulations will make fossil fuel burners non-competitive and leave consumers on the hook for the $85 million plant. 

In May, a group of 87 health care professionals sent plant operator Massachusetts Municipal Wholesale Electric Company (MMWEC) a letter urging them to consider battery storage rather than continuing with the current plan. 

A “peaker plant” runs only at times of peak demand — estimated to be no more than 250 hours per year. And many feel the plan is obsolete given advances in clean energy storage over the past six years since the plan was first proposed. The cost of utility-scale storage has fallen nearly 70% between 2015 and 2018, according to the U.S. Energy Information Administration. And it has fallen even further since. 

The MMWEC last month paused the plan for at least 30 days to address community concerns and reevaluate possible alternatives. The group contends that the facility’s emissions would be lower than those of 94% of fossil-fueled peaker plants in New England. Since then, two of fourteen municipal utilities that signed on to the project have filed paperwork asking to be released from the agreements. 

Energy News has more on this story.

More Energy News

• Massachusetts Debates Energy Efficiency Draft Plan

• OTR: Rep. Lori Trahan taking patient approach with green energy

• State “Green Team” award recognizes student efforts in environmental stewardship

• NH offshore wind power: develop renewable energy Gulf of Maine project

Transportation

Massachusetts & Rhode Island Only Two States Left in TCI Agreement

Connecticut is the latest state to drop out of the Transportation & Climate Initiative (TCI) agreement as Gov. Ned Lamont abandoned the program amid state budget negotiations on Friday. Only Massachusetts, Rhode Island, and Washington, D.C. are left.

TCI, a regional collaboration originally consisting of 13 Northeast and Mid-Atlantic states and the District of Columbia was developed to promote clean energy transportation. Under the plan, transportation fuel suppliers, or wholesalers bringing fuel into Massachusetts, would be required to purchase “allowances” (aka carbon credits) for any carbon dioxide their fuel produces. 

According to original estimates, CTI could bring in about $500 million a year in new revenue for Massachusetts alone, to be invested in clean transportation solutions.

Visit the Boston Herald for more info.

More Transportation News

• Gas prices rising in Massachusetts; Here's how much they rose in the past year - masslive.com

• Massachusetts Looks to Electrify Ridesharing, Increase E-bike Access

• Trying to put the brakes on car ownership

• Local startup hopes to revolutionize coastal transportation - Boston, Massachusetts

• MBTA looks at cars, tracks as cause of derailment that sidelined Springfield-built CRRC cars

• Evaluating the competition between autonomous vehicles and public transit

• Connecting Subway Lines Could Cost $850 Million, Take Nearly 10 Years

• Amtrak CEO opposes CSX-Pan Am Railways deal

Real Estate

Two Mass. Cities Top List of 100 Safest 

Home prices in Hopkinton, Massachusetts, and Franklin, Massachusetts are about to go up. The two cities have topped Safewise’s list of the top 100 safest cities in the country. 

More than two-thirds of the cities that made the list are in New England and the Mid-Atlantic region. And Massachusetts has the second-highest number of cities on the list with 17. 

Hopkinton, which is east of Worcester has a population of just over 18,500 and a median income of over $95,000. Franklin, just west of Foxboro, is home to more than 33,000 residents with a median income of just under $102,000.

“These crime-curbing communities have cause to celebrate,” writes Safewise. “The 100 cities in our roundup boast a collective violent crime rate that’s 92% lower than the national average. And, when it comes to property crime, our top 100 locales report 79% fewer property crimes per 1,000 people than most of the US.”

The full report can be found here.

More Real Estate

• Counties with the lowest home prices in Massachusetts

• Needham: May real estate deals topped by $40 million hotel transaction

• Nantucket Voters Reject Proposal to Limit Short-Term Rentals

Cannabis

Indoor Cannabis Cultivators Using 10% Of All Industrial Energy Use in the Bay State

According to estimates by the Northeast Sustainable Cannabis Project, indoor cannabis cultivation is responsible for about 10% of all industrial electricity consumption in Massachusetts. That’s pretty high.

According to Cannabis Business Times, the 10% estimate “is based on current indoor cultivation lighting standards and the assumption that half of the growing canopy square footage authorized for use is currently in use.” 

Back in 2018, the Massachusetts Department of Energy Resources estimated that the energy required to power grow lights for 660,000 square feet of canopy would negate the entire energy savings of $11 million from DOER's program to convert more than 130,000 streetlights statewide to LEDs. 

Since then, the Cannabis Control Commission has authorized more than 1.1 million square feet of indoor marijuana cultivation. That’s about four times the area of outdoor cultivation facilities in the state. Moreover, the cannabis sector in Mass. is expected to triple in size by the time supply and demand level out. 

More Cannabis News

• Massachusetts Cannabis Control Commission Launches New Delivery License - Cannabis & Hemp - United States

• https://patch.com/massachusetts/boston/massachusetts-marijuana-delivery-starts-next-week-patch-pm

• Green Thumb buys Massachusetts medical marijuana operator

• Senate narrowly votes to legalize marijuana in Connecticut

• Great Barrington Voters Reject Stricter Cannabis Zoning Bylaw, Downtown Parking Plan At Town Meeting

Our First Post-COVID Summer

As the pandemic winds down and Massachusetts comes out of hibernation, attention is turning to figuring out how we’re all going to have a great summer. But no matter how the summer shakes out, there are going to be some winners and some losers.

In politics, projecting winners and losers in the upcoming elections depends highly on who’s in and who’s out of each race. Voters are on the edge of their seats as announcements are expected to come this summer.

On the climate crisis front, renewable energy is winning market share while big oil is losing ground. The hospitality industry is winning now that emergency restrictions have all but ended, but Uber and Lyft are losing money due to a lack of drivers. And we’re not sure who’s going to be the winner and who’s going to be the loser in a battle between the Commonwealth and New Hampshire over income taxes on out-of-state workers.

And with that, let’s delve into Mass. political and business news-of-the-week: 

Politics

The Summer Blockbuster Coming To a Voting Booth Near You

“A blockbuster showdown for governor,” is the Boston Globe’s prediction for the upcoming gubernatorial race. The report also mentions the “wide-open race to be the state’s top prosecutor,” and a ”primary between a secretary of state on the verge of history and a fellow Democrat trying to unseat him.” It sounds like those dramatic narrators in 1980s movie trailers.

The story revolves around the state’s 2022 state election cycle. “It’s greased by uncertainty, and fueling the potential for a gamut of history-making races,” writes, the Globe’s Matt Stout, “and possibly, widespread change at the top of state government.”

The suspense is intense. An ensemble of six statewide constitutional officers, including Governor Charlie Baker, Attorney General Maura Healey, and Secretary of State William F. Galvin, have not yet said whether they’ll seek reelection, leaving room for a major twist and making the ending very hard to predict.

The Boston Globe has this detailed review of the blockbuster event of the summer coming soon to a voting booth near you.

More Politics

• Will Massachusetts Gov. Charlie Baker run for re-election?

• As the Massachusetts GOP battles for relevance, its leader doubles down

• Massachusetts House Majority Leader Claire Cronin quiet on possible appointment as ambassador to Ireland

• Massachusetts lawmakers consider ways to address student debt crisis

Business

A Biden administration official is siding with Massachusetts in a lawsuit brought by New Hampshire’s Gov. Chris Sununu over the state’s right to collect income tax from remote workers who live out of state. As you might guess, this case will have a rippling effect that could shape the future of remote work as numerous other U.S. states are also grappling with this dilemma. 

Currently, the Bay State requires out-of-state workers to pay 5% income tax. (Oddly, however, for those who commute to Mass., say, three out of five workdays, only 40% of the wages would be taxable.)

Sununu calls the new rule a “direct attack on the New Hampshire Advantage, attempting to pick the pockets of our citizens,” adding that more than 100,000 New Hampshire residents may be impacted by the rule. 

In a major turn of events in this case, Elizabeth Prelogar, the acting U.S. solicitor general, filed a brief Tuesday siding with Massachusetts. The brief states that the U.S. Supreme Court should not hear New Hampshire’s case against Massachusetts. 

“Individuals often have tax obligations to multiple sovereigns,” says Prelogar. “Although New Hampshire might prefer that its residents not pay personal income taxes to any government, an independent tax obligation falling on a state’s residents generally is not an injury to that state’s own sovereign prerogatives.”

Not everyone agrees. For example, Paul Diego Craney, spokesperson for nonprofit conservative think tank the Massachusetts Fiscal Alliance, says, “President Biden’s administration has continually advocated for new taxes, higher taxes, and more complex taxes,” adding that it “comes as no surprise that the president is now standing shoulder-to-shoulder with Governor [Charlie] Baker in their quest to tax workers who have virtually no ties to the state.” (We’re taking that with a grain of salt considering the group would likely find a different complaint if the Biden Administration sided with New Hampshire.)

Sununu remains confident the Supreme Court will hear the case. “Try as they might, overreach by Washington politicians and efforts by the Biden administration will not deter [New Hampshire] from fighting against Massachusetts’ unconstitutional attempt to tax our citizens,” Sununu said.

Read all about it at MassLive.com.

More Business

• Massachusetts launches summer restaurant campaign - Boston Business Journal

• Mass. businesses growing more concerned about worker shortage

• The Massachusetts Senate votes to spike these three tax breaks

• Mass. Food Delivery Fees: Restaurants Concerned Once Caps End 

• Here's how 13 Mass. companies are planning to go back to the office

• Boston nightlife buzzing after Massachusetts lifts COVID-19 restrictions

Energy

Big Oil Getting Swept Up In Renewables Movement

Big changes are afloat as big oil starts to examine the global repercussions of climate change. The industry is reeling recently from several major setbacks. As a sign of the time, the obstacles are coming not just from government regulators, but also from the corporate shareholders themselves. 

British oil giant BP (which got out of the solar business over a decade ago) sees the writing on the wall and is scurrying to bolster its renewable energy business. For one example, last summer, BP sold its petrochemicals business and partnered with Norway-based Equinor to develop four wind energy projects off the coast of Massachusetts. 

BP is also planning to significantly expand its renewables footprint with the purchase of 9 gigawatts of solar projects for $220 million and plans to increase its annual investments in wind and solar projects by 10-fold to around $5 billion a year. Meanwhile, the company is working on plans to reduce its oil and gas production.

The acquisitions and changes in direction are intended to help BP reach a goal of growing its renewable energy output to 20 gigawatts by 2025 and 50 gigawatts by 2030, and to achieve net-zero emissions by 2050. 

The Houston Chronicle has more on this story.

More Energy News

• Mayflower US offshore wind JV in pole position for key Massachusetts grid link

• Hot Question for Energy Storage Answered by Massachusetts Fire Appeals Board

• 3Q: The socio-environmental complexities of renewable energy

• FACT SHEET: Biden Administration Opens Pacific Coast to New Jobs and Clean Energy Production with Offshore Wind Development

Transportation

“Driver’s Wanted” — for Boston Rideshares

With covid restrictions lifted, the Mass. hospitality industry is optimistic about a resurgence. However, getting back to normal (or settling into a new normal) isn’t going to be as easy as chicken pie. There are bound to be numerous challenges.

One of those challenges is a dearth of rideshares in and around Boston. Visitors to the Bay State are saying that a lack of Uber and Lyft drivers is spoiling their vacations.

“I had to try Uber 3 times and couldn’t get a car. Lyft finally came through after about 15-20 minutes of trying,” said Lakesha Carter, who is visiting from Florida. “It was a little scary because I’m here as a solo traveler, just to explore the city and it almost felt like oh boy, what am I going to do if I don’t find a car?”

In a statement, Uber says the company is offering incentives to gig workers to get back into the driver’s seat. “In 2020, many drivers stopped driving because they couldn’t count on getting enough trips to make it worth their time,” adding that now in 2021, “there are more riders requesting trips than there are drivers available to give them.”

Source: Visitors to Boston say shortage of rideshares hurting travel

More Transportation News

• Boston's 'soul-crushing' traffic creeping back after pandemic dip

• MBTA to Shut Portion of Green Line D Branch in June for Work

• Domestic airfare prices climbing amid reluctance to travel overseas

• JetBlue will begin flying to two destinations from Worcester later this year

Cannabis

Trulieve Brand Cannabis Coming to Mass. June 3

Multi-state operator Trulieve Cannabis Corp. will be hawking its products at its Northampton, Massachusetts shop beginning June 3. Trulieve, which recently secured a $2.1 billion deal to merge with Harvest Health & Recreation Inc, recently obtained the Massachusetts Cannabis Control Commission's approval to begin recreational and medical marijuana sales at the location.

The merger with Harvest Health gives Trulieve operations in 11 states, with a cultivation and processing capacity of 3.1 million square feet spread across 22 facilities, plus 126 medical and recreational dispensaries. The combined company is expected to generate around $1.2 billion in 2021.

"As the first adult-use market on the East Coast, Massachusetts is a leader in the cannabis industry, and we are excited to open our doors here," Kim Rivers, CEO of Trulieve, said.

Read more at Benzinga.

More Cannabis News

• Innovative Industrial Properties Acquires Massachusetts Property and Enters Into Long-Term Lease with Temescal Wellness

• Taunton’s Freshly Baked becomes first cannabis company in Massachusetts to get approval to start home delivery

• Equity cannabis businesses in Massachusetts can now apply for delivery operator license

• Green Thumb Closes on Acquisition of Massachusetts Cannabis Operator Liberty Compassion Inc.

• Chicopee gives preliminary approvals to new $15 million cannabis cultivation business

• Massachusetts cannabis retailer ordered to pay fee, but lawsuit continues

• Chicopee gives preliminary approvals to new $15 million cannabis cultivation business

• Massachusetts amendment pushes for CBD in food, sale of hemp flowers

Growing Back

With nearly 50% of residents fully vaccinated, and the state rapidly expanding business and home vaccination programs, Massachusetts has gone from having one of the worst records on vaccination to one of the best in the country. As a result, most restrictions put in place to fight the pandemic will be lifted in the coming weeks — just in time for some summer fun in the sun.

In other news this week, Democrats in Massachusetts must now contend with an army of young adults who are fluent in social media marketing and venturing into politics. This is a fascinating trend that politicians ignore at their own risk.

On Beacon Hill, the idea of a $1,200 “Back To Work” bonus is being kicked around. In energy, Massachusetts is becoming the “Saudi Arabia of Wind.” The T is gearing up for a massive increase in ridership. Residential property taxes are on the rise along with home prices. And (federally legal) hemp is now being sold in (federally illegal) marijuana shops.

Let’s unpack this week’s news.

Politics

Democrats in Massachusetts Must Now Answer To Growing Demands from Savvy Teenagers

An influential new force is rising in Democratic politics. Even though they aren’t even old enough to vote, teenagers have been organizing to promote progressive candidates. 

To give you some idea of the power that this demographic is claiming, one only needs to look at Edward Markey’s surprise upset over Joe Kennedy in last year’s Democratic primary here in Massachusetts. Kennedy was the odds on favorite to win. That is until “an army of 16-year-olds,” as one political veteran put it, took to the internet to paint Kennedy as standing too far to the right on important issues.

The new movement is making centrist politicians in the Massachusetts Democratic establishment a bit nervous as these youngsters know their way around social media better than any of them. The young activists smell that fear and are empowered by it. 

Last year saw an explosion of new voter registrations as the number of 18 to 24-year-olds shot up to 20.9% in the 2020 primary from 6.7% in 2018, and 2.1% in 2016. That is according to data provided by Tufts’ Center for Information and Research on Civic Learning and Engagement. Considering that most elections are won by less than 10% of the vote this changes everything.

The teens are operating sophisticated grassroots campaigns using chat groups, direct messages, and automated and manual text messaging to mobilize their friends and followers into a volunteer PR army.

Last summer, teens on TikTok were able to pull a fast one on President Trump. They waged a campaign to reserve seats at a Trump rally in Florida. Trump even boasted about the numbers before the event. When the time came to count heads, the number was far less than expected. Although this is dirty politics, the success of that campaign has emboldened teens to put their collective weight behind candidates who they feel have their best interests at heart.

These efforts have been so successful that some candidates’ PR teams have reached out to leaders of the movement for campaign help. And for those candidates who stand to lose the most, bashing these teens is not an option as it could easily backfire, draw their ire, and result in serious damage to their careers.

The movement is sure to affect upcoming elections — such as the race for mayor of Boston. This is a fascinating story that candidates on all sides ignore at their own peril.

Boston.com has an in-depth report on the movement.  

More Politics

• Massachusetts Democratic Party planning in-person convention for Sept.

• Elections: What America can do to rebuild trust in the system

• Santiago Counts On Boston's Growing Latino Community To Elect Him Mayor. But Will It Be Enough?

• Could Charlie Baker Survive A Republican Primary? The governor's statewide popularity is enviable

Business

$1,200 “Back To Work” Bonus Proposed For 2022 Budget

Massachusetts lawmakers are considering putting a “Get Back to Work Bonus” in the fiscal year 2022 budget. The idea is to help employers who are having trouble filling positions while trimming the state’s unemployment bill. 

Budget amendment 811 was proposed by state Sen. Ryan Fattman. The plan calls for using funds from the $1.9 trillion federal American Rescue Plan to pay Mass. residents up to $1,200 to land and keep a job. Fattman essentially wants to “repurpose” the $300/month federal unemployment bonuses to incentivize people to get back to work. 

In a conversation with MassLive, Fattman had this to say:

“I’ve been contacted by a lot of businesses, local employers, restaurants, trucking companies, and they’re all struggling to find people to work for them. All this is designed to get people back to work into those positions so the economy can thrive.”

Although the state unemployment rate dropped to 6.5% in April, the bonus would be welcomed by Massachusetts businesses still scrambling to fill vacant positions ahead of the state's reopening on May 29.

According to a recent U.S. Census survey, millions of Americans are avoiding work for fear of contracting or spreading COVID-19. And many are content to collect unemployment benefits for as long as possible.

Other states are also considering similar measures. Connecticut and New Hampshire recently announced plans to award successful job hunters bonuses up to $2,000. Meanwhile, several red states are looking at axing the extra $300/month unemployment payments offered by the federal government claiming that the free cash incentivizes residents to stay home. 

Read all about it as MassLive.com.

More Business

• Mass. Outlines Final Reopening Plans Set For May 29; State Of Emergency Lifts Mid-June

• 'Massachusetts is open for business': Lifting of pandemic restrictions brings surprise, elation

• Massachusetts unemployment rate edges down, but job gains slow

• Massachusetts House proposal aims to relieve employers from major unexpected unemployment costs

Energy

Massachusetts Becoming the “Saudi Arabia of Wind”

Last week we told you about the final federal approval of the Vineyard Wind project. In two years, 62 turbines will begin generating about 800 megawatts of electricity. That’s enough to power 400,000 homes. 

As huge as that is, it’s not the whole story. All told, offshore wind developers, are planning to produce 9,100 megawatts from 13 offshore-wind projects along the East Coast within the next five years and then 30 gigawatts by 2030. That’s the equivalent of about 30 coal-fired power plants. 

As the price of generating wind energy plummets, Massachusetts is looking at a clean energy boom. Once the project is up and running, Vineyard Wind is projecting a cost of six and a half cents per kilowatt-hour. (Cape Wind has been charging over 20 cents per kilowatt-hour.)

Erin Baker, professor and faculty director of the Energy Transition Initiative at the University of Massachusetts says costs have fallen “much more in the last five years than any of the experts were predicting.” 

Baker co-authored an article in Nature in which she predicted that the cost of wind energy will be cut in half between now and 2050. And Kathleen Theoharides, the state’s energy and environment secretary, told conservative-leaning Intelligencer that Massachusetts is being dubbed the “Saudi Arabia of wind.” 

Check out Intelligencer’s detailed report here.

More Energy News

• California and Massachusetts Schools Win DOE's 31st National Science Bowl

• Massachusetts gas facility needed to meet New England climate goals, backers say

• Program spins out new tech to monitor marine life near offshore wind farms

• Blue Energy's Big Future

• Why Is Wind Essential For Zero Emissions? (Video)

Transportation

MBTA Trains and Buses Expected To Get Crowded As Massachusetts Reopens

As COVID-19 restrictions are lifted across Massachusetts, public transportation is beginning to ramp up again. Subways and busses in the Bay State are expected to get crowded as commuters’ rideshare options — including services such as Uber and Lyft — have been evaporating.

The fact that a set of new Chinese-Made Subway Cars has malfunctioned for the fourth time isn’t helping matters. 

Crowded public transit vehicles pose a risk of spreading covid to the unvaccinated. To assure this doesn’t happen, MBTA riders will still be required to wear masks. 

Boston 25 News reports that the MBTA is “monitoring ridership and plans to quickly and safely build back service.”

Meanwhile, if you’re thinking of hitting the road next weekend, plan on leaving early. Officials are expecting Memorial Day traffic to increase substantially over 2020’s numbers as restrictions are lifted and residents with pent-up cabin fever begin to venture out.

More Transportation 

• Pedestrian deaths spiked nationwide during pandemic, but plummeted in Mass., data shows

• NASA partners with 5 US states on drone delivery, air taxis

Real Estate

Residential Property Taxes Are On the Rise

With the Mass. residential real estate market on fire, homeowners might be wringing their hands over the increased value of their properties. However, there’s a downside to the exploding valuations. That is along with the rise in home values comes a rise in property taxes (which have already been on the rise in recent years).

The state of Massachusetts requires property values to be reassessed every year. And according to SmartAsset, homeowners in Massachusetts already pay some of the largest annual property tax bills in the country with a median annual property tax bill of $4,899, with a higher-than-average effective tax rate of 1.17%.

Boston 25 News has more details on this story.

And for those who are interested, here are the 50 Massachusetts communities with the highest residential tax rates.

More Real Estate

• Median Home Sale Price In Massachusetts Soars Above Half A Million Dollars

• Most expensive homes for sale in Massachusetts Stacker Money

• Bill Gates divorce: How a Massachusetts hotel could be caught in the middle

Cannabis

CCC Issues Guidance For the Sale Of Hemp Products At Mass. Dispensaries

In an industry full of ironies, up until now, Mass. marijuana dispensaries were not allowed to sell hemp products such as CBD oil. That is even though marijuana is federally illegal while hemp (cannabis strains with negligible levels of THC) has been completely legal for more than two years. 

And there are still restrictions. In order to clarify requirements and restrictions the Massachusetts Cannabis Control Commission has issued Guidance for the Retail Sale of Hemp.

Under new rules, marijuana retailers are able to purchase “consumer-ready hemp products,” but only from hemp processors licensed by the Massachusetts Department of Agricultural Resources. And the products may only be sold in a dedicated section of the store.

Furthermore, hemp all products must be accompanied by an insert that includes the following warning language:

“This product was produced, packaged, and labeled by a Massachusetts hemp processor licensed by the Massachusetts Department of Agricultural Resources (MDAR). It is not regulated by the Massachusetts Cannabis Control Commission and the product may not be consistent with the requirements of M.G.L. c. 94G or 935 CMR 500.000. Consumers that have questions or concerns about this product are encouraged to contact the manufacturer, MDAR, or the appropriate state or federal agencies.”

Whitelisted products include hemp seed, hemp seed oils and powders, hemp clothing, and non-food CBD products — as long as no medical claims are made.

And although consumers can purchase CBD oil (and edibles such as gummies) at a myriad of shops throughout the state, the sale of hemp products is not permitted at marijuana treatment centers — only at dispensaries. 

Which leads to this question: What if a licensed marijuana grower grows “marijuana” with less than 0.3 percent THC? Does it count as hemp? Or can they sell it the same way they sell marijuana? As it stands, high-CBD, low-THC products produced by licensed growers are treated no differently than high-THC products. 

Read the complete guidance document for the retail sale of hemp at Mass. marijuana dispensaries here.

More Cannabis News

• Massachusetts company makes mark with cannabis-infused seltzer

• TILT Holdings Resets With a Unique B2B Cannabis Business Model

• 4Front Ventures Corp. Receives Unanimous Approval from Brookline Select Board to Begin Operations of Its "Mission Brookline" Dispensary in Massachusetts

• Michigan marijuana company plans to open 4 locations in western Massachusetts

• Sturbridge dispensary opens, plans second Cape location for fall

• Federal cannabis legalization bill coming this week

• Marijuana Dispensary Opening On Cape Cod With Live Music

The Race to Reopen

It’s mid-May and Massachusetts residents are eager to take advantage of some of the wonders that New England has to offer — activities that many of us had to forgo in 2020 — such as baseball games, camping trips, beach days, fireworks, and graduations. 

And now, the state of emergency put in place just over a year ago is coming to an end two months earlier than the Baker administration had originally planned.  

With few exceptions, we’re a week away from the end of the mask mandate in Massachusetts with most other emergency measures including business capacity and gathering limits officially ending on June 15. 

"The temporary limits and restrictions imposed on the private sector and on individuals were the most difficult decisions I've ever had to make," says Baker. "The loss and the isolation so many of our friends and families experienced is likely to impact all of us for a very long time."

Here is a list of places and situations that will still require face coverings after Memorial Day

Let us all rejoice and dig into this week’s curated list of Mass. political news.

Politics

Prominent Republican Figures Align With Trump Resistance Effort

The GOP is being ripped apart at the seams. There were lingering questions as to whether or not the wounds of the Big Lie and the Capitol riot were too big to heal. But now Republicans have answered those questions when they stripped Liz Cheney of her leadership position last week while moving a farcical Arizona recount into high gear. It’s now become painfully obvious that Trump’s grip on the party’s base is undeniable and that he now owns the Republican party.

The majority of Republicans are following Trump in lockstep as he works to exact revenge on his political enemies. However, a growing contingent of Republicans has banded together in a resistance movement. Among the 150 conservatives in the coalition is Former Governor Bill Weld.

Mitt Romney, another former Governor, is also helping to lead the resistance. Romney was recently awarded the JFK Profile in Courage Award by the John F. Kennedy Presidential Library and Museum for his “consistent and courageous defense of democracy.” Romney was the only Senate Republican with the nerve to vote to convict Donald Trump on impeachment charges in 2020. In fact, Romney is the first senator in history to vote to convict a president of his own party.

And although his name is not on the list of 150 Republican signatories on an open letter to the party, Mass. Gov. Charlie Baker, who has been critical of Trump, said Wednesday that he continues to believe in the "core values" of the Republican Party. 

"I've had my differences, as everybody knows, with plenty of folks in the party over the course of the time that I've been in public life. But I'm a big believer in what the party fundamentally stands for, based on what I believe it stands for," Baker said at a press conference from the Norwood laboratory of COVID-19 vaccine manufacturer Moderna.

According to recent polling, Baker is more popular with Democrats and independents than with voters in his own party. When asked if he agreed with Cheney that the Republican Party was "abandoning the rule of law and democratic principles" in fealty to Trump, Baker said Cheney was right in her defense of the election results.

"I made very clear that I felt the election process that took place back in November was fair, and that President Joe Biden won the election. And on these issues I believe Liz Cheney is absolutely right," said Baker, one of the few Republican leaders that didn’t vote for Trump in 2016 and 2020.

Last week, Baker took part in a bipartisan virtual meeting with President Biden and five other governors to discuss effective vaccination strategies. The following day, Baker said he has found governors to be less hyper-partisan than Washington politicians.

"One of the things I like about playing this role as governor is the fact that most governors will pick up the phone when you call them and help you try to solve whatever problem it is that you're trying to solve and vice versa because we have a lot of commonality on that, and I think in some ways it's something I wish there was a lot more of at the federal level," Baker said.

Read more at WBUR: Baker Says He Remains 'Big Believer' In GOP's Core Values After Cheney's Ouster

More Politics

• Child care tax credit, $571.2 million for UMass included in Senate $47.6 billion budget proposal

• Senate's $47.6B budget draws $1.55B from savings

• What does latest Census mean for Massachusetts politics?

• Baker Traveling to DC for COVID, Congressional Meetings

• Black women will be a force to be reckoned with in the 2022 midterm elections

• Biden picks angel Kelley for federal court opening in Massachusetts high schools return to in-person learning amid pandemic

Business

Massachusetts Launches Employer Vaccination Program

In an effort to expand vaccination efforts in the bay state, Massachusetts is launching an Employer Vaccination Program this week. The program lets companies reserve a block of time for their workforce at mass vaccination sites. 

Companies will also have the option of setting up a kiosk or table at the sites. And companies with 35 or more employees will be eligible for pop-up clinics at their place of business.

In order to take part in the program, employers must survey employees to confirm that they are willing to participate.

Read more at WCVB: COVID-19 employer vaccination program begins in Massachusetts

More Business

• Massachusetts senators seek to legalize sports betting in budget amendments

• 'A win for Massachusetts': Sec. of Commerce Gina Raimonda says American Jobs Plan will bolster business sectors rebounding from COVID

• Gunmaker Troy Arms relocating to Tennessee cites 'changing climate' in Massachusetts

• Union Nurses in Massachusetts Are Waging the Longest Current Strike in the US

• $300 unemployment benefit: Massachusetts businesses face labor shortage as laid-off workers 'happy taking benefits until Labor Day'

• Live theatre making its return to Massachusetts

Energy

It’s official. After hundreds of hours of public hearings and the review of more than 33,000 public comments, the federal Bureau of Ocean Management has given the green light to the Vineyard Wind project. 

Located 15 miles off the southern coast of Martha's Vineyard, the massive project is the first commercial-scale offshore wind farm in the U.S. The project is integral to Mass. efforts to become carbon neutral by 2050 and is expected to create thousands of jobs here in the bay state. 

Offshore wind is also a central part of President Biden's clean energy agenda. Biden is calling a staggering $2.5 trillion in spending on renewable energy projects over the next decade.

Construction will begin this year and start supplying power by 2023. Once completed, the facility is expected to power more than 400,000 Massachusetts homes and businesses. 

Read more at WCVB: Feds grant approval to 84-turbine Vineyard Wind project off coast of Massachusetts

More Energy News

• Massachusetts Kicks Off Third Offshore Wind Solicitation | Morgan Lewis - Power & Pipes - JDSupra

• State Energy Secretary Explains How Massachusetts Became A Leader On Climate Change

• Proposed Massachusetts power plant put on hold for 30 days

• Massachusetts gas price average jumps 5 cents, to $2.91

Transportation

MassDOT Chosen for NASA Development Partnership

NASA announced Friday that the Massachusetts Department of Transportation’s Aeronautics Division has been selected for the space agency’s Advanced Air Mobility (AAM) Community Planning and Integration Partnership Opportunity. The program gives the MassDOT the opportunity to partner, collaborate, and exchange information with other agencies from Ohio, Minnesota, Orlando, and North Central Texas also chosen for the program. 

Many industry experts believe electric vertical takeoff and landing (eVTOL) aircraft will be available later this decade. The program seeks to develop a green, quiet, and equitable mobility option for these next-generation air vehicles. 

MassDOT Aeronautics Administrator Dr. Jeffrey DeCarlo had this to say about the program:

“MassDOT Aeronautics is pleased to have been accepted by NASA for this partnership opportunity as we have been collaborating with other entities already in an effort to make the Commonwealth of Massachusetts an early adopter location for advanced air mobility operations. Massachusetts is looking to be at the forefront of early community demonstrations, policy solutions, and initial operations and we feel privileged to be working with team members who are true visionaries and global thought leaders from academia, industry, and government.” 

Information from NASA on the program can be found on their website.

More Transportation News

• Massachusetts exit renumbering project moves to Interstate 495

• AOPA opposes $1,000 'climate fee' for Massachusetts landings

• Top crash locations in Mass.: These intersections are most common spots for car crashes

• VTA unveils solar canopies

• Why Gas Prices Are Rising in Massachusetts and Could Go Higher

• MBTA completes three of seven weeks of accelerated work on Green Line B Branch Station Consolidation Project

• Why You Can't Get an Uber or Lyft in Boston Right Now

Real Estate

Alexandria Real Estate Equities closes $130 million purchase of the Watertown Mall

The Watertown Mall, just minutes outside of Boston, was purchased by Alexandria Real Estate Equities. The Mall houses 260,867-square-feet of shop space on 17.8 acres and, unlike most malls in the U.S. today which are turning into ghost towns, the Watertown Mall is 98% occupied and hosts more than 2.7 million customers annually. More than 344,000 residents live within a three-mile radius of the facility which is adjacent to the 1-million-square-foot Arsenal Yards mixed-use redevelopment project.

More Real Estate

• As housing prices continue to soar, is this now a bubble?

• IBM plans move to Lowell as it sheds real estate - Boston Business Journal

• Boston and Worcester named two of the best cities to be a real estate agent in 2021

• In Cambridge, Massachusetts, Local Control Means Restrictive Zoning

• Boston Had Sixth-Most Competitive Housing Market in April

• Watertown Mall sells for $130 million to Alexandria Real Estate Equities

Cannabis

Largest Marijuana Dispensary On East Coast Opens in Boston

Ascend, Downtown Boston’s first retail marijuana shop, had its grand opening Thursday. The 16,000 square-foot adult recreational dispensary is said to be the largest on the East Coast. 

There is limited parking in the area and customers are encouraged to use public transportation. Ascend is located on Friend Street, right near North Station and the TD Garden. Customers can order online for pickup or delivery and “budtenders” are standing by to answer questions concerning the shop’s menu of cannabis products.

Ascend is also planning to open dispensaries in New Bedford and Newton.

Check out CBD Local’s report here: Downtown Boston's First Retail Marijuana Shop Has Grand Opening; Said To Be Largest Dispensary On East Coast

More Cannabis News

• Cannabis commission eyes enhancements to social equity program, mentorships

• Massachusetts cannabis stores will soon be allowed to sell hemp products

• Innovative Industrial Properties, Inc.(IIPR) Acquires Pennsylvania Property and Expands Real Estate Partnership with Parallel

• AmeriCann Reports Record Quarterly Revenue and Positive EBITDA

• Cannabis community host agreements being exploited by some Mass. cities and towns

• Smokescreen: Mass. Lacks Transparency in Money Cannabis Firms Pay to Cities and Towns

• Massachusetts cannabis firms forced to pay $2.6 million in unlawful fees, study shows

• Curaleaf acquires Los Sueños for $67M, expands Colorado marijuana footprint

Our Uneven Progress

The mayoral race is simmering in Boston as the reopening of the state commences. Ironically, although the state suffers record-high joblessness, employers are having trouble filling newly opened position and the state’s hospitality industries continue to atrophy with hotels alone predicted to shed another 14,000 jobs this year. 

And for the masses of unemployed labor workers in the Bay State, one possible deterrent to job hunting is the generous unemployment benefits that have been doled out over the past year. 

In energy and transportation news, the state has opened up an RFP that, once awarded, will eventually double the state’s current wind generation. Also, the Fed is making billions of dollars in grants available for improvements and expansion to public transportation infrastructure. Both of these ambitious projects will create plentiful well-paying jobs.

Meanwhile, the state has begun to open up thousands of acres of agricultural land to hemp and marijuana growers, and a judge smacked down a federal eviction ban.

Let’s get inside and unpack this week’s news: 

Politics

Mayoral Candidate Jon Santiago On The Scrum

The Scrum, GBH News' political podcast, with Adam Reilly and Peter Kadzis, has been hosting an ever-expanding roster of guests. In the latest episode, Jon Santiago talked about laying the groundwork to win Boston’s 2021 mayoral contest. (Former mayor Marty Walsh is off to Washington after being confirmed by the Senate to head the U.S. Labor Department.)

In the Scrum interview, Santiago expressed his hopes to land key endorsements from elected officials and also to win the support of labor unions. Santiago also made some revelations about his personal history. He said that he has no intention of criticizing former Mayor Marty Walsh’s stewardship of the city but he did criticize acting Mayor Kim Janey’s decision to delay Boston’s reopening.

Listen to the podcast here: Jon Santiago On The State Of the Mayor's Race, Marty Walsh's Legacy and Kim Janey's Tenure

More Politics

• Mass. Senate President Karen Spilka seeks input on intergenerational care

• The Massachusetts millionaire’s tax is back, and it’s a little different this time

• Massachusetts Passes One Of The First State-Wide Laws On Facial Recognition

• Massachusetts Plays Catch Up In Offering 'Early College' Courses In High School

Business

Business Leaders Press For Speedy Reopening As Hospitality Industry Continues to Shed Jobs

The Bay State is moving ahead with reopening plans this week. However, some business leaders are complaining that Gov. Charlie Baker isn’t moving fast enough and are asking that the current reopening timeline be moved up by about a month. Baker’s plan calls for Massachusetts’ to be fully functional again by Aug. 1.

“This is all about balance,” said Jon Hurst, president of the Retailers Association of Massachusetts. “We’ve done very well on vaccinations and we need to start moving toward reopening. Worst-case scenario, I hope we’re at 100% by July 4th weekend.”

One of the big challenges now is getting people to come back to work after a nice, long, paid stay-cation. Although unemployment numbers are up nationwide, Mass. businesses are having trouble filling job vacancies.

Although service industry hirings are on the rise again, The American Hotel & Lodging Association projects that Massachusetts could lose more than 14,000 hotel jobs in 2021 due to ongoing reticence to travel post-pandemic. (That’s in addition to the nearly 17,000 hotel jobs lost in the state over the past year.)

All told, about 70% of the 43,000 hotel workers lost their jobs since 2019. In the wider hospitality and leisure industries, about 59% or 225,000 jobs were lost after emergency measures kicked in. That is according to the U.S. Bureau of Labor Statistics. 

More Business

• Baker-Polito Administration Celebrates COVID-19 Business Relief Program, Awards Final Round of Grants

• Western Mass. expected to see busy summer for tourism, but picture more uncertain for Boston

• State Updates Tax Relief For Certain Businesses

• State sues marketing firm for role in opioid crisis

Energy

Mass. RFP Expected To Double Wind Output

This big news in Mass. energy this week: A 1,600-megawatt procurement will double the amount of energy Massachusetts utilities have under contract since a 2016 clean energy law kicked in. 

Energy and Environmental Affairs Secretary Kathleen Theoharides said this in a statement:

"This new solicitation will not only procure more affordable offshore wind energy for residents than ever before, but will also direct greater investment in economic development while requiring offshore wind developers to create comprehensive plans to ensure the Commonwealth's environmental justice and minority communities share equitably in the benefits of this growing industry." 

Currently, Vineyard Wind I and Mayflower Wind, are under contract to provide 1,600 megawatts. The new 140-page RFP seeks bids of "at least 400 MW and up to 1600 MW of Offshore Wind Energy Generation" and requires bidders to submit workforce diversity, equity, and inclusion plans, as well as potential impacts on environmental justice populations and host communities. Moreover, the nominal levelized price of any proposal must be less than $77.76 per megawatt-hour.

There seems to be a difference of opinion among stakeholders as to the numbers. Some claim the price cap should be set at the $77.76 per MWh price that DPU approved. Others such as National Grid are gunning for a lower $70.26 per MWh price cap.

Bids for the lucrative contract are due by Sept. 16. No preferred bid size has been specified. 

Here are numerous sources on this story:

• Massachusetts launches 1.6GW offshore wind tender

• Mass. sees more competition on offshore wind infrastructure

• Massachusetts opens 1.6GW offshore shoot-out

• Offshore Wind Pricing Plan Stirring Crosscurrents

More Energy News

• Avangrid sees Vineyard Wind approval coming, power onshore in 2023

• Agilitas Energy starts work on 3 MW/9 MWh lithium-ion battery for Rhode Island

• Clean energy roadmap not strong enough, activists say

• Largo Resources Picks Site for 1.4 GWh Battery Plant

• Stop & Shop's Green Energy Facility Marks Five Years of Turning Food Waste Into Sustainable Energy

Transportation

Sen. Markey Pitches Investments in N.E. Railways

“If we build it, they will come,” says Sen. Ed Markey who is pitching investments in passenger rail for Massachusetts and other under-connected communities across the Northeastern U.S. by reintroducing the BRAIN (Building Rail Across Intercity Networks To Ride Around Interior of the Nation) TRAIN Act. 

Under the proposed bill the U.S. Department of Transportation would create a competitive grant program offering up to $5 billion in annual grants to fund rail projects including the East-West rail effort to link Springfield and Western Massachusetts with communities stretching from New Haven to Buffalo.

This is in addition to President Biden’s $2 trillion American Jobs Plan which earmarks $85 billion to modernize public transit plus another $80 billion for Amtrak upgrades.

Rail expansions throughout the state will cost between $2.4 and $4.6 billion. Estimates suggest the investment could draw a quarter to a half-million new riders annually.

Read all about it at MassTransitMag.com.

More Transportation News

• Massachusetts Port Authority revisiting climate action plans | Local News | gloucestertimes.com

• A potential Red Line-Blue Line connector is back in the spotlight

• Advocates Say The BRAIN TRAIN Act Could Transform Massachusetts. Will It Pass?

• Regional Transit Authorities Win Funding Victory in House Budget -

• $1,000 Landing Fee Proposed For Massachusetts Private Aircraft

• Study Sees Big Financial Benefits For CT and MA From Improved Passenger Rail Lines

Real Estate

Federal Judge Strikes Down Eviction Ban

In his ruling on a lawsuit brought by real estate industry groups, a federal judge has struck down an emergency ban on evictions in the United States, putting millions of renters at risk of being ousted from their homes. US District Judge Dabney Friedrich ruled that the eviction ban clearly overstepped the authority of the CDC.

The Biden administration, which extended the ban originally instituted under the Trump administration, says it plans to appeal Wednesday’s decision.

This action is “the latest in a string of decisions that chip away at eviction bans that have protected renters, and frustrated landlords, for more than a year,” according to the report in the Boston Globe.

A similar eviction ban in Massachusetts expired in mid-October of 2020. 

More Real Estate

• https://patch.com/massachusetts/wakefield/bizposts/local-update/218753/ma-homeowners-eligible-for-3-252-mortgage-relief

• New home prices climbing higher with lumber business ‘crisis’

• Housing starts slowed in Greater Boston, Massachusetts in 2020

• Frenzied Real Estate Bidding Drives Mass. Home Prices Up

• MA home inspector warns buyers against waiving inspections

• Local Officials And Congressional Leaders Decry Investors Who Put Affordable Housing At Risk

• Hunt Real Estate buys All American Properties

• A Revamped Penthouse Loft Hits the Market at $2.9M in Boston, MA

Cannabis

Bay State Opens Up Agricultural Reserves To Cannabis

The Massachusetts Department of Agricultural Resources (MDAR) has released guidance under a 2020 plan to allow cannabis and hemp cultivation on more than 73,000 acres of land belonging to the state Agricultural Preservation Restriction (APR) and Farm Viability Enhancement programs.

According to the agency website, the APR program, instituted in 1979, pays farmland owners the difference between fair market value and the agricultural value of their farms in exchange for permanent deed restrictions that conserve the land for agricultural use.

And according to the state website, the Farm Viability Enhancement Program provides business and technical assistance to farmers through grant funding in exchange for signing an agricultural covenant on the property.

In a document titled, “Hemp and Marijuana Production on APR and Farm Viability Protected Lands, Apr. 28, 2021,” the Mass. Department of Agricultural Resources writes:

“After reviewing these concerns and evaluating the evolving state of the law as it relates to the legalization of medical and adult use marijuana in Massachusetts and cultivation of hemp in the United States, the Department has been reviewing its policies related to hemp and marijuana and evaluating whether the Department may recognize such activities as horticultural uses in a manner consistent with the laws and intent of the APR Program.” 

More details are available at these fine hemp and cannabis industry news outlets: 

• Massachusetts Opens Up Hemp & Cannabis Cultivation on Protected Farmlands

• Massachusetts Farmland Unlocked For Cannabis Cultivation

• Massachusetts opens land for hemp farming

More Cannabis News

• Massachusetts sets marijuana sales records around 4/20 holiday

• The Grow-Off cannabis competition is coming to Massachusetts, putting a spotlight on craft and small growers - masslive.com

• Uber's interest in cannabis delivery highlights sector's potential and pitfalls

• What Is Biden's Beef With Cannabis?

• How High Are Taxes on Recreational Marijuana in Your State?

A Newer Normal

According to the 2020 federal census, the Massachusetts population has passed the seven million mark. Bay State residents now account for 0.1% or one one-thousandth of all humans on earth. And that number doesn’t include the state’s massive student population.

Things are looking up for most of those seven million as the state’s economy came roaring back in the first quarter of 2021, and at a much faster pace than the national average. That is according to economic analysts at MassBenchmarks. “Real gross domestic product in Massachusetts increased at an 11.3 percent annualized growth rate in the first quarter, compared to the 6.4 percent growth rate in the nation's economy,” they say.

This trend is expected to continue into the foreseeable future for a number of encouraging reasons. For starters, CDC data shows that New England is a national leader in vaccination rates. Witness the fact that mass vaccination sites are beginning to tear down as the state moves to a community outreach-style vaccination program. All the hard work is paying off as more than one-third of residents have been fully vaccinated and the state has seen its lowest single-day covid case count since November. 

Citing progress in the Battle of the Bend, Gov. Baker lifted the outdoor mask mandate on April 30th. And by May 10th amusement parks, water parks, and theme parks will be allowed to reopen at 50% capacity, and ballparks, indoor stadiums, and arenas will be permitted up to 25 percent capacity — as long as social distancing is maintained. Road races and other large outdoor organized group athletic events will also be permitted, Baker said on Tuesday. The governor is gunning to have COVID restrictions fully lifted by Aug. 1.

Also happening this past week, the House passed its version of the state budget, and Massachusetts continues to be a national leader in alternative energy technology and cannabis banking. And, strangely, who would have ever guessed that the Commonwealth would actually welcome news of increasing traffic in Boston? File under “The New Normal.”

Now, let’s get on with this week’s Policy Note.

Politics

Massachusetts House Approves Its Version of Fiscal 2022 Budget

Last week we told you about the Mass. House of Reps. deliberation over more than 1,100 proposed amendments to the fiscal 2022 state budget. They seem to have ironed it all out and passed the plan on to the Senate for further deliberation. 

The proposed $47.7 billion spending plan aims to set the state on a path toward post-pandemic economic recovery and the shoring up of the state’s education systems plus $94 million in funding for regional transit authorities.

One of the amendments to the budget raises the state’s existing requirement for 4,000 megawatts of offshore wind power to at least 5,600 megawatts and requires electric companies to enter into long-term contracts for offshore wind power by June 30, 2027. The budget also includes $10 million in offshore wind career training.  which takes effect July 1. 

Read all about it at MassLive.com.

More Politics

• OTR: What does latest Census mean for Massachusetts politics? 1 HR – WCVB Boston

• Warren reflects on 2020 loss and gender in new memoir

• Fitch Rates Massachusetts' $600 Million GO Bonds 'AA+', Outlook Stable

Business

$28.6 Billion in Restaurant/Service Grants Up For Grabs — But Hurry!

Massachusetts restaurants and service businesses are now eligible for grants up to $10 million via the state’s new $28.6 billion Restaurant Revitalization Fund. The program is part of President Joe Biden’s $1.9 trillion American Rescue Plan. 

According to the National Restaurant Association, about 93% of Mass. restaurant workers were let go in more than 211,000 layoffs and furloughs. That’s about a 20% to 25% drop in 2020 according to Stephen Clark, vice president of government affairs for the Massachusetts Restaurant Association.

The following businesses are eligible to apply for the grants:

• Restaurants

• Food stands, food trucks, food carts

• Caterers

• Bars, saloons, lounges, taverns

• Snack and nonalcoholic beverage bars

• Bakeries (onsite sales to the public comprise at least 33% of gross receipts)

• Brewpubs, tasting rooms, taprooms (onsite sales to the public comprise at least 33% of gross receipts)

• Breweries and/or microbreweries (onsite sales to the public comprise at least 33% of gross receipts)

• Wineries and distilleries (onsite sales to the public comprise at least 33% of gross receipts)

• Inns (onsite sales of food and beverage to the public comprise at least 33% of gross receipts)

• Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products.

With so many Mass. businesses in need of relief, the $26 billion is expected to dry up quickly. Applicants need to visit the Small Business Administration website.

Also of note, included in the House budget is an added $2 million for the Massachusetts Tourism Trust Fund. If the line item makes its way into the final budget it would bring the total to $7.2 million more than the previous year. It would also loosen restrictions on how much government funding regional tourism councils could receive. 

Again, MassLive.com has more on this story as well. 

Also read: How Massachusetts Restaurants Fared in the First Quarter of 2021 and Massachusetts tourism, cultural groups could see funding boost from Mass. House lawmakers

More Business

• These are the best hospitals in Massachusetts according to safety report

• Massachusetts Supreme Court issues confusing decision on Section 230

• Hotel industry group predicts slow job recovery

• Another class of biotech companies are about to go public in Massachusetts

Energy

Biden’s Moonshot Offshore Wind Ambitions Could Cut Electric Costs In Half by 2050

With President Biden floating a moonshot offshore wind project, researchers at the U.S. Department of Energy and the University of Massachusetts Amherst estimate that the future costs of onshore and offshore wind combined could be cut by a third by 2035 and nearly halved by 2050. 

“We’re on the precipice of a revolution that we’ve been waiting for, for too long,” says Bill White, head of offshore wind at Avangrid Renewables, a partner in Vineyard Wind, the first scheduled major offshore wind farm on this side of the Atlantic. 

According to developers, Vineyard Wind will generate enough power for 400,000 homes and cut emissions equivalent to taking 325,000 cars off the road each year. Combined with Mayflower Wind, another 800 MW project south of Martha’s Vineyard, ratepayers will save $3.8 billion over the 20-year life of their contracts.

Take a long breath for a deep dive into this topic here: Biden’s new moonshot: An offshore wind industry to rival Europe’s

More Energy News

• Solar Power + Bees = Extra Benefit for Massachusetts

• Environmental justice advocates hold Massachusetts accountable

• Construction deal reached for $15m Massachusetts biomass project

• Some worry wind and solar will gobble up forests and farms

• On course to create a fusion power plant

• Utilities testing geothermal heating and cooling | Local News | gloucestertimes.com

• Environmentalists surprisingly divided over clean energy projects in Mass., Maine and elsewhere

Transportation

When Increasing Boston Traffic Is Good News

Who would have ever suspected that increasing traffic in Boston could be welcome news? It’s all part of the so-called “new normal” brought on by a global pandemic and subsequent emergency lockdowns. While sitting in traffic is never fun, the uptick in traffic is another promising sign that the Mass. economy is on the road to recovery. 

Although traffic has been increasing in the Bay State and in Boston, in particular, it hasn’t yet U-turned to pre-pandemic levels. Between March 29 and April 11, traffic volume was down between 5 and 14 percent from 2019 levels. That is according to the state Department of Transportation. Although that sounds bad, compare it to last April when traffic plummeted by about 60 percent.

The Boston Globe has this report: Traffic is getting worse in Massachusetts (but it's not back to pre-pandemic levels... yet)

More Transportation News

• Listen: What Biden's Infrastructure Plan Means For Transportation In Massachusetts

• Post-pandemic behaviors may dictate new transportation options - Boston Business Journal

• Massachusetts exit renumbering project moves to Interstate 93

• There's really nothing blocking the path to free buses

• MBTA Control Board commits to funding Transit Priority Group as part of FY22 budget

Real Estate

Home Prices Continue to Rise

Just when you think stock and crypto prices can’t go any higher… they do. And the same is now true for residential real estate here in Massachusetts. We’ve been telling readers for weeks now about how the Commonwealth’s homes market is blasting off. Home prices in the state are now well on their way to the moon. 

According to data from the Massachusetts Association of Realtors (MAR), the median sale price of a single-family home launched to $485,000 in March, up 16.9 percent from 2020. Condo prices are also on the rise, up nearly 7 percent, to $459,450. March saw 3,385 single-family home sales closed (up from 2,779 in Feb.) and 5,804 new properties listed in February (up from 3,393 in Jan.). Also, 1,922 condos were sold in March (up from 1,298 in Feb.). That’s 26 percent more than were sold in Mar. 2020.

President of MAR, Steve Medeiros said in a statement. “We're seeing a very busy, competitive spring market this year as more buyers line up and sellers are feeling more comfortable putting their homes on the market compared to this time last year,” adding, “While prices are increasing along with mortgage rates, we're encouraged by the increase of new listings and seeing some more inventory come on the market."

WBUR has this report: Frenzied Real Estate Bidding Drives Mass. Home Prices Up

More Real Estate

• Realtor: 4 things first-time Massachusetts home buyers need to do

• Standard Communities Acquires L.P. Interest in Boston Affordable Property, Increasing Its Presence in Massachusetts

• State weighs appeal of Superior Court decision on Boston waterfront - Boston Business Journal

• This Sudbury Home Costs More Than A Castle In France

Cannabis

Massachusetts Banks Lighten Up To Marijuana

Last week we told you how the U.S. House had passed the SAFE Banking act — again. Should it survive the Senate and be signed by President Biden, the measure would make it far less risky for banks to do business with marijuana-touching businesses by preventing federal agencies from penalizing those that offer financial services to cannabis concerns.

While the fate of the bill remains uncertain, banking is already becoming easier for Mass. marijuana. That is according to a report at the Boston Business Journal which says at least six financial institutions are now servicing the sector with at least one lending directly to cannabis clients.

Cases in point:

• In 2018, only three Mass. banks were open for business to the cannabis industry — Medford-based Century Bank, Swansea’s BayCoast Bank, GFA Federal Credit Union in Gardner. 

• Last month, Eastern Bank announced it would acquire Century and take over its cannabis division. 

• Recently, Northern Bank & Trust in Woburn announced it would be hiring a security deposit relations manager who would be tasked with growing the bank’s cannabis clientelle.

• Hudson-based Avidia Bank which is affiliated with a hemp and CBD payment company out of Arkansas has begun working with cannabis clients.

• Several financial institutions including BayCoast, GFA, and Century have been lending to real estate companies involved in the cannabis sector.

Steven Hoffman, chairman of the Mass. Cannabis Control Commission says that he continues to discuss the matter with at least three more banks starting due diligence around entering the industry.

“I know any bank that is servicing the cannabis business is taking some risk, given federal law,” Hoffman said. “I’m grateful for those who have stepped up because they have made an incredible contribution to public safety.”

The Boston Business Journal has more on this story.

More Cannabis News

• Ascend opens first recreational marijuana dispensary in downtown Boston

• Massachusetts opens land for hemp farming

• Top Massachusetts Court in a Haze Over Local Control of Cannabis

More of the Latest Massachusetts News

• Massachusetts Tops List Of The Best States For Working Moms, Study Says

• Massachusetts is one of the best pizza states in America, according to Food & Wine

• Massachusetts bars will no longer have to serve food in latest state guidelines

• Largest Software Development Firms in Massachusetts - Boston Business Journal

• Man engineers so-called 'perfect grass' seed: Made in Mass.

Positive Signs Continue for Post-COVID Massachusetts

With more than half of the population of Massachusetts now fully vaccinated, and the cleanup of the economic train wreck caused by the pandemic well under way, things are looking up for businesses in the Commonwealth. Another $30 million-plus in small business grants were handed out this past week while lawmakers try to decide how best to spend the reservoir of federal money that will be flowing into the state this summer.  

Over the past week, the House has been picking through the next budget and has scared up more than a thousand potential amendments to be debated and decided upon before the spreadsheets can be passed on to the Senate. With 1,157 proposed amendments, to be exact, it’s a lot of important work.

In other news, real estate in Massachusetts is on fire and setting price records as inventory becomes more and more scarce. With companies like Apple and Amazon planning to expand their footprints, Boston is fast becoming the San Francisco of the East Coast.

Also in this week’s news we’ll tell you about 12 of the top 10 greenest cities in Greater Boston and the recent passage by the U.S. House of Representatives of the SAFE Banking Act which could be a major breakthrough in federal cannabis policy reform. On top of that, you’ll find a couple dozen more links to other important stories impacting the Bay State this week.

So sit down and relax and dig in. This will only take a few minutes and then you can get on with your day.

Politics

1,157 Amendments Filed For House Budget Proposal

Last week we told you about the $47.6 billion budget plan proposed by the Massachusetts House. Items on the wishlist of nearly 1,200 amendments include earmarking of funds for public schools, social services, and local economies hit hard by the pandemic.

Right out of the gate, the House budget is $2 billion more than Gov. Baker’s proposed budget. Plus it’s a yearly tradition for lawmakers to pile on local funding proposals for their home districts.

Here are some of the amendment proposals as reported by MassLive.com:

• Funding increases for community centers, hospitals, volunteers and nonprofits who have helped Western Massachusetts residents navigate the challenges of the COVID-19 pandemic. 

• Relief to farmers and other businesses hit hard by the economic downturn.

• $100,000 to Volunteers in Medicine Berkshires, a Great Barrington-based clinic that serves seniors, immigrants and low-income residents without insurance. 

• $3 million to preserve the Rural Schools Aid funding for grants to cities, towns, regional school districts, county agricultural schools, vocational schools, and other schools.

• $40 million for districts that saw fluctuating enrollment numbers during the 2020-21 school year.

• An amendment to allow farmers to deduct 25% of the value of certain food donations as charitable contributions on their taxes.

• $30 million additional funds for the Food Security Infrastructure Grant (FSIC) program — $25 million to for-profit applicants and $5 million for nonprofit applicants — bringing the total up to $38.6 million.

• $500,000 for the UMass Center of Springfield. 

We won’t list the other 1100+ amendments here, but we’ll certainly update this story as it develops. 

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Business

$30.4 Million More In Grants Awarded To Bay State Businesses

Another $30.4 million in grants has been doled to more than 600 Bay State businesses — 100 of which have not received any prior aid — through the COVID-19 business relief program administered by the Massachusetts Growth Capital Corporation (MGCC). The grant program is part of the Baker-Polito Administration’s effort to foster economic recovery. 

This brings the grand total to over $680 in grants to more than 15,000 businesses across the state. Of the 600-plus recent grants, 126 were minority-owned, 115 woman-owned.

Last week, the Administration announced the award of 37 grants totaling $5 million to cities, towns, and non-profits through the Regional Pilot Project Grant Program. This week, the Administration awarded $1.6 million to 59 tourism organizations, chambers of commerce, and cities and towns through the new Travel and Tourism Recovery Grant Pilot Program.  

Also, as part of the Partnerships for Recovery 125 communities are working with consultants to be granted a portion of $9.5 million awarded through the Local Rapid Recovery Planning program. The state has also invested $21.1 million in municipal projects through the Shared Streets and Spaces program since June 2020.

Read all about it at ABC6.com

More Business

• Could Mass. make the film tax credit permanent? Proposal added to House budget

• Massachusetts has a ban on assault weapons. Some lawmakers don’t want them made here, either.

• Apple plans to add hundreds of jobs in Massachusetts over the next five years

• Business owners in MA call on lawmakers to address unemployment insurance hikes

• Bank of America pledges $1 million to King Boston efforts, the biggest corporate gift so far

Energy

The 12 Greenest Towns of Greater Boston

Out of 40 towns and cities within the 128/95 border, 12 have been dubbed the “greenest” of them all in a report by Boston Magazine. Municipalities were assessed on 19 indicators including “the percentage of the town or city’s fleet of ordinary passenger vehicles and light trucks are electric.” 

Communities received zero to five points for each indicator with a maximum possible score of 95 points. Actually, 12 municipalities made the Top 10:

10. Belmont (70 points) 

9. Salem and Brookline (tie 75 points) 

8. Lexington and Winchester (tie 76 points)

7. Somerville (77 points)

6. Melrose (78 points)

5. Medford (80 points)

4. Boston (81 points)

3. Newton (82 points)

2. Arlington (87 points)

1. Cambridge (90 points)

The full list of 40 cities and towns in the running can be found here. 

And a full list of the 19 green city indicators can be found here.

Check out the complete story at Boston Magazine. 

More Energy News

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• Baker-Polito Administration Files New Legislation to Improve Road Safety

• Mass. utilities: Gas plant would allow for more renewables

• Massachusetts Gov. Charlie Baker’s Executive Order Aims to Electrify Transportation, Buildings

• How Solar Energy Policies Could Help More Low-Income Residents

• CleanCapital: ‘Deploying energy storage is mission-critical to the energy transition’

Transportation

Sagamore Bridge Repairs Completed Ahead of Schedule, Bourne Bridge Next

Sometimes it seems like road repair work can go on forever. For a change, work to maintain the structural integrity of the Sagamore Bridge is getting done ahead of schedule. According to a report at the Boston Herald, all lanes on the Sagamore are now open. 

With that out of the way, the U.S. Army Corps of Engineers New England District will now move its equipment over to the Bourne Bridge and start repair work that had initially been scheduled for the fall. 

Starting Saturday, the Bourne Bridge will be reduced from two lanes in each direction to a single 12-foot lane in each direction 24 hours a day until Memorial Day weekend — just in time for summertime Cape traffic. 

The U.S. Army Corps of Engineers New England District said in a statement:

“Motorists planning to use the Bourne Bridge during this timeframe should be aware that travel delays are likely to occur during the morning and afternoon peak travel periods each day. Signs, traffic control devices and police details will be used at all times that work is being performed on the bridge.”

More Transportation News

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• MassDOT To Install Roundabout At Brockton Intersection

• Taking the 'Commuter' Out of America's Rail Systems - Governing

• In Transit Expansion, Don't Forget Bikes and Buses

• Study finds ride-sharing intensifies urban road congestion

Real Estate

Home Sales Continue To Set Records

Massachusetts homes are on fire — metaphorically speaking, of course. Home prices in the state have set records again in March according to the Warren Group, a real estate analytics firm. There were 3,849 single-family home sales in Massachusetts last month. That’s a four-year high for the month of March, and a 2.5 percent increase over a year ago. 

Those numbers would be even higher if the inventory wasn’t at its lowest point since at least 2004 according to the Massachusetts Association of Realtors. (That’s when the Association began reporting data.)

As a result of the lack of inventory, the median price for a single-family home jumped a whopping 14.4 percent from $402,000 in March of 2020 to $460,000, setting a new record for the month.

You’ll find an in-depth report at Boston.com. 

More Real Estate

• New England Stop & Shop portfolio sells for $295M - Boston Business Journal

• Developers vying to build on parcel just south of downtown

• Buyer Beware: Massachusetts Flood Disclosure Law Criticized

• The Davis Companies and Boston Development Group JV to Co-Develop 5-Acre Life Science Campus Near Watertown Square

Cannabis

U.S. House of Representatives Passes SAFE Banking Act

The U.S. House of Representatives signed off on a cannabis banking reform bill just in time for 4/20 — an annual day of celebration of human rights or another excuse to party depending on how it’s spun. 

The bill which is designed to protect banks from being penalized for working with state-legal marijuana businesses passed the House in a rare bipartisan vote of 321-101. The SAFE Banking Act has now been approved by the House four times since it was first passed in 2019.

Industry stakeholders are hoping that the bill passes while the democrats have control of both branches of Congress and the White House. Although Democrats now hold a thin majority in the Senate, its passage there is not guaranteed, nor is Biden’s signature. And if Republicans regain control of either the Senate or the House in 2022, the chances of passage are even slimmer.

Federal cannabis policy reform is a long time coming and banking is, by far, the largest source of friction for the cannabis industry. David Torrisi, president of the Commonwealth Dispensary Association, says that access to banking and capital is “probably the largest barrier of entry for getting into this industry.”

This issue is no longer just a regional matter. Medical marijuana is now legal in 36 states, seven of which also permit adult recreational use. Most banks are reluctant to do business with cannabis concerns due to the drug’s Schedule I status over at the U.S. Drug Enforcement Agency. As a result, many marijuana dispensaries are forced to operate on a cash-only basis, even paying their taxes with a truckload of cash. 

(To be fair to the DEA, DOJ, FBI, et al, they were only doing their job. Only Congress can repeal the federal prohibition of marijuana and they’ve been dragging their collective feet for half a century.)

The SAFE Banking Act, should it pass, will shield banks from penalties — such as racketeering charges — for working with marijuana companies. 

Marijuana Moment has a full report.

More Cannabis News

• Ex-Fall River Mayor Jasiel Correia's trial, implications for Mass. marijuana business

• With marijuana legal in New York, and other states close behind, will Mass. dispensaries along state borders survive?

• The 96-year-old co-founder of this Massachusetts cannabis dispensary wanted to give people jobs and 'a better way of life' - masslive.com

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