May 2025 Legislative Update

Healey-Driscoll Administration Delays Enforcement of Advanced Clean Truck Rule

While the mid-month of April brought the annual tax deadline, it also brought news that the Massachusetts Department of Environmental Protection (DEP) will exercise its “enforcement discretion” to enable the purchase of medium- and heavy-duty trucks under the Advanced Clean Trucks (ACT) program that was implemented on January 1, 2025. The temporary relief applies to model years 2025 and 2026 and requires that manufacturers make internal combustion engine (ICE) trucks available to distributors seeking them. According to the MassDEP, this approach gives manufacturers more flexibility and eases the challenges dealers are facing, while keeping the state on track to achieve critically important emissions reductions.

The MassDEP’s action comes after UCANE, its members and a broader of coalition of thirty-five (35+) plus associations waged a concerted effort to delay both the Heavy-Duty Omnibus (HDO) and the ACT rules since last August. While the coalition was successful in delaying the HDO rule last October, it took a little while longer for the ACT rule to be delayed. To that end, the coalition, as recently as March 31^st, sent a leader to Governor Maura Healey, Speaker Ron Mariano and Senate President Karen Spilka asking them to include this delay within the fiscal year 26 budget. In doing so, over fifty (50+) associations and businesses wrote:

“Unfortunately, the Commonwealth’s recent implementation of the Advanced Clean Truck (ACT) rule has adversely impacted our ability to acquire sorely needed medium and heavy trucks. While these state regulations stipulate an increasing percentage of zero-emission vehicle (ZEV) truck sales starting in Model Year 2025 and stronger NOx standards effective January 1, 2026, the necessary technology and infrastructure are not yet in place to support these initiatives. Notwithstanding the significant shortage of the electric infrastructure necessary to charge them, medium and heavy-duty electric trucks remain prohibitively expensive even with their reduced capacity. Further, assuming enough electric trucks were somehow sold to meet the ACT standard, the fact remains that there exist few, if any, HDO compliant diesel trucks to purchase now or in the foreseeable future. In short, these regulations are simply ahead of technology advancements, the necessary infrastructure to support it, and manufacturing capacity.

As local media have highlighted, the recent implementation of the ACT rule has essentially stopped the sale of new medium- and heavy-duty trucks throughout the Commonwealth. Not only does this mean that thousands of cleaner, safer trucks are not replacing older, dirtier trucks in the public and private sectors, but we are losing sales tax revenue from the same decline. Using current estimates from the decimated truck market in Massachusetts, we have already lost millions in tax revenue that could be otherwise used to fund a wide variety of important government programs during the fiscal year 2026 budget cycle.”

The Healey-Driscoll Administration’s actions came as Congress begins to follow through on the Trump Administration’s efforts to revoke California’s ACT and HDO rule through Congressional action in the form of the Congressional Review Act (CRA). Under the CRA, Congress can revoke a regulation, or similar policy decision, of an agency if certain analyses were not completed. Resolutions to revoke the California waivers for the ACT and HDO waivers were passed in the United States House of Representatives (H.J. Res. 87 and H.J. Res 89) at the end of April. Again, while there is a question as to whether the Congressional Review Act (CRA) governs these types of waivers, the United States Senate, through resolutions filed in its chamber, (S.J.Res 46 and S.J. Res 47), will attempt to undo the ACT and HDO rules in the month of May.

Despite this outcome, UCANE and its members will need to remain vigilant on a number of fronts. First, the Massachusetts enforcement delay is temporary – notwithstanding the fact the HDO rule was only delayed until January 1, 2026. Second, it is likely that should Congress pass the aforementioned resolutions, there will be numerous court challenges to the same. Third, emissions reduction is an issue everyone cares about. UCANE and members of the broader coalition, both public and private sector members, will need to continue to be engaged so that the voice of end-users of medium- and heavy-duty trucks remain at the forefront.

With many thanks to the Healey-Driscoll Administration for their action on this issue, you may review the DEP’s announcement at: https://www.mass.gov/news/massachusetts-announces-flexibilities-for-clean-trucks-requirements.

House Passes FY26 Budget; Funding Stays Relatively Consistent

In late April, the Massachusetts House of Representatives approved its fiscal year 2026 (FY26) budget proposal, totaling $61.58 billion. This figure reflects an increase of $81.9 million in spending added over three days of debate. The FY26 House budget is $3.8 billion (6.6%) more than the FY25 budget and $498 million (1%) less than Governor Healey’s proposed budget. Like the Governor’s plan, the House relies on $1.3 billion in one-time funding and new revenue sources, such as the income tax surcharge on earnings over $1 million. (Note: The surtax spending in the House’s budget proposal is divided between education ($1.85 billion) (61%) and transportation ($765 million) (39%).

According to the Massachusetts Taxpayers Foundation (MTF), the House adopted seven consolidated amendments, adding $74.7 million in new spending. The consolidated amendments included 788 earmarks which amounted to 98 more earmarks than the previous budget year. In addition, the House introduced 35 new outside policy sections and revised 5 others through 21 amendments.

Key Funding Highlights for UCANE’s Areas of Interest:

Level funding of $63.3 million for the Clean Water Trust’s contract assistance.
$1.5 million for the Commonwealth Sewer Rate Relief Fund.
$5.9 million for the underground storage tank program.
Slightly over $54 million in funding for the Massachusetts Department of Environmental Protection (MassDEP).
$150,000 for a study of Western Massachusetts’ drinking water infrastructure needs by the Pioneer Valley Planning Commission.

The Massachusetts Senate will present its own budget in May. Following that, a Conference Committee will be formed to reconcile differences between the House and Senate versions before the July 1 deadline marking the start of FY26.

For more details on the House FY26 budget, visit: https://malegislature.gov/Budget/HouseBudget

Coalition Submits Letter to Congressional Delegation in Support of Water Infrastructure Funding

In an effort to continue raising the profile for funding water infrastructure, UCANE joined a coalition of engineers, drinking water providers, advisory boards, business organizations, and other advocacy groups in a joint letter to members of the Massachusetts Congressional delegation. All members of the Water Infrastructure Advisory Committee (WIAC), signatories sought to highlight the water infrastructure needs of the Commonwealth while also asking the Congressional delegation to take certain actions.

In particular, UCANE, with its coalition members, asked the Congressional delegation to undertake the following activities:

“Advocating for Increased Federal Support: Reauthorize and expand the State Revolving Fund (SRF) programs to ensure equitable access to low-interest loans and grants while maintaining flexibility to address emerging priorities.

Simplifying SRF Application Processes and Requirements: Streamline requirements to make funding more accessible, especially for smaller communities with limited resources. Look at requirements, though well-intentioned, may drive up the cost of infrastructure projects (Build America, Buy America).

Creating a Dedicated Fund for Earmarks: Establish a separate fund for congressionally directed spending to address newly identified needs without compromising SRF resources. In 2020 the Drinking Water State Revolving Fund base grant federal was $25,549,000, in 2024 it was down to $10,078,000. Our SRF is losing capacity at a time when there is urgency to install PFAS treatment to comply with drinking water standards. The drop in the base grant also threatens staffing levels at MassDEP. We support congressionally directed spending, but it should not impact funding that benefits municipalities across the Commonwealth; therefore, we are pleased to see that the recently passed Continuing Resolution returns SRF funding to pre-earmark levels.

Funding Lead Service Line Replacement: Increase dedicated funding for replacing lead service lines, a critical public health priority.

Supporting Compliance with Emerging Regulations: Provide targeted funding to help utilities meet PFAS standards and other regulatory requirements without overburdening ratepayers.”

Organizations who signed this Congressional letter with UCANE included the American Council of Engineering Companies of Massachusetts; Boston Society of Civil Engineers; Massachusetts Coalition for Water Resources Stewardship; Massachusetts Municipal Association; MWRA Advisory Board; Massachusetts Water Environment Association; Massachusetts Water Works Association, and The 495/MetroWest Partnership. The letter was delivered to the Congressional delegation on the last day of March. A copy of the letter may be viewed at: https://tinyurl.com/526m9hjm.

Healey-Driscoll Administration Launches Initiative to Support Businesses Impacted by Trump’s Tariffs

The Healey-Driscoll Administration launched the Massachusetts Tariff Response and Business Operations Support Initiative to align state resources to aid Massachusetts businesses in response to President Donald Trump’s recent tariff policies and the ongoing uncertainty they cause for consumers and businesses across the country.

Specifically, the Massachusetts Tariff Response and Business Operations Support Initiative (TRBO) has been established in response to the ongoing uncertainty and rapid changes surrounding U.S. federal tariffs, which continue to impact manufacturers across industries. As businesses face rising costs, supply chain disruptions, and sourcing challenges, the TRBO aims to align state support and resources to help manufacturers navigate these dynamic conditions and adapt as necessary. Their goal is to strengthen the resilience of local manufacturers through informed planning, strategic connections, and responsive assistance.

Launched in partnership with the quasi-public economic development agency Massachusetts Technology Collaborative through its Center for Advanced Manufacturing (CAM), the TRBO will assist Massachusetts manufacturers’ response to new and changing tariffs. Initial action items include a survey for companies to share how they are impacted by the tariffs so that the state can help them develop response plans, identify their continuity needs, and connect them to alternative supply chains here in Massachusetts and across the region.

The TRBO initiative follows Governor Healey’s multiple convenings and meetings with businesses and business leaders about the impact of President’s Trump’s policies, including tariffs, on the Massachusetts economy. This includes a business roundtable held April 9^th with leaders of prominent organizations representing hundreds of businesses of all sizes and spanning all industries across the state, as well as representatives from the manufacturing, finance, and contracting industries.

As outlined by the Healey-Driscoll Administration, TRBO is built on four critical focus areas:

· T – Tariff Impact Analysis: Monitoring how tariffs are impacting Massachusetts-based manufacturers through data collection

· R – Response Strategy Development: Facilitating resources from the ecosystem to support plans to mitigate risks

· B – Business Continuity Support: Coordinating and aligning partners with available state or ecosystem resources

· O – Operations Support for Supply Chain Resiliency: Supporting adaptability of supply chains in new tariff environments

As many items used in construction are acquired from international sources, UCANE will remain vigilant on the impacts that any tariffs have on membership. Do not hesitate to let Joe Nolan, Executive Director for UCANE, and UCANE Board Members know of any impacts that recent tariffs have had. In the meantime, to complete the TRBO survey and learn more about this important initiative, please visit: https://cam.masstech.org/TRBO.

Healey-Driscoll Administration Awards Nearly $1 Million to Five Ipswich River Communities to Improve Water Supply and Treat PFAS

The Healey-Driscoll Administration awarded $950,000 in grants at the end of April to help five communities enhance their public water supplies, improve water availability, and remove per- and polyfluoroalkyl substances (PFAS) from drinking water. According to the MassDEP press release announcing the awards, PFAS, or “forever chemicals,” are persistent and harmful chemicals that can cause adverse health outcomes. The grants, administered by the MassDEP, will help maintain and improve access to clean and safe drinking water for communities in the Ipswich River Basin.

This is the second year for this grant program, which aims to guide water management in the Ipswich River Basin for both the long-term water supply needs of communities and the protection of the aquatic ecosystems.

The following communities and water suppliers were awarded funds this year:

Modeling and Connection to Salem Beverly Water Supply Board (SBWSB). Hamilton and Wenham - $279,775. This project consists of conducting computer simulations to identify possible limitations of wheeling a portion of SBWSB’s water supply through Wenham and up to the new connection with Hamilton, the bidding process for a new interim water supply connection between Hamilton and Wenham to obtain supply from the SBWSB, conducting a pilot study on recommended treatment strategies for removing PFAS from Wenham’s two groundwater sources, and recommending the most favorable treatment strategy for Hamilton’s School Street well.

MWRA Connection. Town of Wilmington - $154,208. This project consists of completing the planning and design of a booster water pump station to increase the capacity of the Town’s MWRA connection so that Wilmington can supply MWRA water up to their maximum daily demand.

PFAS Treatment. Town of Ipswich - $370,000. This project consists of providing 30 percent design documents for a new Ipswich Water Treatment Plant (WTP), consisting of final design criteria, preliminary drawings, an outline of technical specifications, and a preliminary opinion of probable construction costs. This project also funds monitoring associated with Ipswich’s proposed Lynch wells.

Construction of an Alternative Source Interconnection Lynnfield Center Water District (LCWD) - $138,160. This project consists of reimbursement of funds spent on completing the design, the bidding and award of a contract to connect the Wakefield and LCWD systems, and the funding to assist LCWD in applying for and meeting the requirements of MWRA membership, including all necessary certificates and permits.

For more details on the grant projects for 2025, please visit: www.mass.gov/info-details/water-management-act-grant-programs-for-public-water-suppliers#ipswich-water-supply-and-pfas-grant-