City Council - Government Operations Committee Hearing on Docket #1223

• Governing Body: Boston City Council Committee on Government Operations
• Meeting Type: Committee Hearing
• Date: August 04, 2026, at 10:00 AM
• Chair: Councilor Ruthzee Louijeune (Vice Chair)
• Councilors Present: Council President Liz Breadon, Councilor Erin Murphy, Councilor Edward Flynn, Councilor John Fitzgerald.
• Panelists: Oliver Sellers-Garcia (Commissioner of the Environment Department), Chris Kramer (Director of the Municipal Energy Unit, Environment Department).

The committee discussed Docket #1223, titled: "An ordinance authorizing the city of Boston acting through its environment department to amend the distributed energy resource revenue revolving fund."

Key Provisions of the Amendment:

• Expanded Revenue Sources: The fund will now capture revenue from all city-owned buildings, expanding beyond the previous limitation to Boston Public Schools (BPS) combined heat and power units.
• Demand Response Integration: The amendment allows the fund to capture revenue from demand response programs, where the city is paid to reduce energy usage during peak grid stress.
• Expenditure Expansion: Funds can now be used for measures that expand the city's enrollment in demand response programs and maintain distributed energy resources across all city facilities.

Official Definitions Provided:

• Demand Response: A series of actions to reduce electricity use during times of high grid stress (e.g., dimming lights, adjusting HVAC).
• Renewable Energy Certificate (REC): A certified unit of electricity generated by a clean resource.
• Distributed Energy Resource (DER): Decentralized electricity generation or storage, such as solar arrays or batteries, located close to where the energy is used.

The Environment Department provided the following financial details regarding the revolving fund:

• Current Fund Balance: Approximately $2,500 (noted as being under $10,000).
• Projected Revenue Increase: The amendments are expected to generate $150,000 in additional new annual revenue, bringing the total projected annual revenue to approximately $200,000 (up from a $50,000 baseline).
• Avoided Compliance Costs: Completed efficiency projects are estimated to avoid approximately $500,000 per year in federal compliance costs related to the Building Energy Reporting and Disclosure Ordinance (BERDO).
• Historical Expenditures: Funds have historically been transferred to BPS to support operations and maintenance contracts for combined heat and power plants.

• Council President Liz Breadon inquired about the generation of RECs and the use of battery storage. Chris Kramer clarified that current solar arrays are not generating RECs due to equipment issues, but the amended fund could help finance necessary upgrades. Commissioner Sellers-Garcia noted the city is seeking state grants for battery deployment.
• Councilor Erin Murphy raised concerns about high temperatures in school buildings (reaching 90-95 degrees). The administration confirmed that revenue from other city buildings could be reinvested to improve BPS facilities.
• Councilor Edward Flynn asked how the plan supports students in older buildings with challenging HVAC systems. Commissioner Sellers-Garcia explained that demand response revenue helps fund smart building management and heat pump installations, which provide both heating and cooling while improving air quality.
• Councilor Ruthzee Louijeune confirmed that the program applies strictly to city-owned properties and clarified the city's dual role as both a participant in and enforcer of BERDO regulations.

• Public Testimony: No individuals signed up or were present to provide public testimony.
• Outcome: No formal vote was taken during the hearing. The matter remains in committee.
• Adjournment: The hearing was adjourned by Vice Chair Louijeune.