September 2024 Legislative Update

Administration Awards Grants to Address Stormwater Pollution in Coastal Areas

According to a press release issued by the Healey-Driscoll Administration, $628,702 in grant funding to assess and treat stormwater pollution to coastal waters and develop comprehensive coastal habitat restoration plans was awarded to local communities in August. The grants, provided by the Executive Office of Energy and Environmental Affairs’ (EEA) Office of Coastal Zone Management (CZM), were awarded to the Ipswich River Watershed Association, Needham, Newton, Rehoboth, Saugus River Watershed Council, and Wildlands Trust.

The Coastal Habitat and Water Quality (CHWQ) grants fund projects to assess, intercept, and treat stormwater runoff, which is a leading source of water pollution. Reducing stormwater pollution is essential for protecting coastal water quality and habitat, as well as keeping beaches open for swimming and shellfish beds open for harvest. A priority of the grant program is to support implementation of green stormwater infrastructure, which replicate natural processes to trap and filter stormwater prior to reaching local waterbodies. The CHWQ grants also support the development of comprehensive habitat restoration plans. Habitat restoration helps to protect and maintain critical environmental resources across the greater coastal watershed.

The following six projects have been funded through this year’s Coastal Habitat and Water Quality Grants:

• Ipswich River Watershed Association - $137,053 to develop a comprehensive habitat restoration plan to improve aquatic habitat and riverine conditions in the Ipswich River. This project will assess current habitat conditions through mapping of specific habitat types and develop strategies and recommendations to improve diadromous fish habitat in the river.

• Needham - $125,425 to advance assessment and planning for stormwater management along Alder Brook, a tributary of the Charles River. The project will reduce phosphorous inputs to the brook by capturing and treating stormwater before reaching the waterbody.

• Newton - $173,339 to advance permitting and engineering of green stormwater infrastructure along Cheesecake Brook. The proposed management techniques will aim to reduce phosphorous and bacteria impacts to the brook and the Charles River, which are currently impacted by these pollutants.

• Rehoboth - $87,500 to quantify calculations of nutrient levels in runoff, identify locations for stormwater best management practices (BMPs), update stormwater and zoning bylaws to reduce stormwater impacts, host BMP maintenance trainings to build capacity in the municipality, and conduct outreach with residents and local farmers on stormwater BMPs. This project holistically targets water quality improvements in the Palmer River Watershed.

• Saugus River Watershed Council - $56,700 to assess stormwater runoff volume and pollutant levels from municipal properties in the Saugus River watershed. Through GIS analyses and on-site field assessments, the Council will assess existing conditions, model climate scenarios, and investigate levels of impact to the Saugus River watershed. The data collected will inform site selection and initial designs for green stormwater infrastructure to address stormwater impacts in the region.

• Wildlands Trust - $48,685 to complete a habitat restoration plan in the Plymouth, Duxbury, and Kingston (PDK) Bay Area. Focusing on the 30 miles of coastline and numerous tributaries to the bay, the project will assess existing data, management plans, and community knowledge to identify opportunities to protect coastal habitat.

CZM is the lead policy and planning agency on coastal and ocean issues within the Executive Office of Energy and Environmental Affairs. Through planning, technical and grant assistance, and public information programs, CZM seeks to balance the impacts of human activity with the protection of coastal and marine resources. The agency’s work includes helping coastal communities address the challenges of storms, sea level rise, and other effects of climate change; working with state, regional, and federal partners to balance current and new uses of ocean waters while protecting ocean habitats and promoting sustainable economic development; and partnering with communities and other organizations to protect and restore coastal water quality and habitats.

To learn more about the work of CZM, please visit: https://www.mass.gov/orgs/massachusetts-office-of-coastal-zone-management-czm.

Revenue Collections Exceed Previous Year’s, Funding Questions Still on the Horizon for Next Session

The Massachusetts Department of Revenue (DOR) Commissioner announced that revenue collections for June totaled $4.495 billion, $357 million or 8.6% more than actual collections in June 2023, and $268 million or 6.3% above benchmark. Revenue collections for fiscal year 2024 totaled approximately $40.800 billion, $1.636 billion or 4.2% more than collections in fiscal year 2023, and $967 million or 2.4% above the fiscal year 2024 benchmark.

In a press release announcing the same, however, Commissioner Geoffrey Snyder noted that:

“The increase in fiscal year 2024 revenue collections in comparison to fiscal year 2023 is mostly driven by an increase in the additional 4% tax levied pursuant to Article XLIV of the Amendments of the Constitution of the Commonwealth (the income surtax). The increase in the surtax was partially offset by decreases in sales and use tax, corporate and business excise, and ‘all other’ tax. The decrease in sales and use tax was primarily driven by a decrease in regular sales tax, reflecting, in part, lower collections from building supply dealers and firms in the construction industry. The decrease in corporate and business taxes was driven by a decrease in return payments and an increase in refunds, partially offset by an increase in estimated payments. The decrease in ‘all other’ tax is mostly attributable to a decrease in estate tax, a category that tends to fluctuate.”

On July 24, 2024, DOR certified that the preliminary estimate of surtax revenue collected in fiscal year 2024 was $2.199 billion. On the same day, DOR also certified that the preliminary estimate of capital gains tax revenue collected in fiscal year 2024 was $2.070 billion, which generated a total fiscal year 2024 transfer of approximately $590.8 million to the Stabilization Fund, the State Retiree Benefits Trust Fund, and the Pension Liability Fund. 

The observations on the income tax surcharge remain poignant as the proceeds from the same may only be used for education or transportation purposes. As the Massachusetts legislature looks towards the upcoming 2025-2026 legislative session, attention is expected to be drawn towards the Commonwealth’s transportation infrastructure funding needs. Largely driven by the cost of running, maintaining and expanding the MBTA, there has been a growing concern that the income tax surtax will not be sufficient, on its own, to address the Commonwealth’s transportation funding needs. Immediately preceding the shutdowns associated with COVID, the Massachusetts House of Representatives passed a transportation funding initiative that was soon overwhelmed by the impacts associated with the pandemic. Expect to see a bevy of competing analyses or initiatives focused on this issue in the coming months.

Attorney General Releases Annual “Labor Day Report”

On Labor Day, Attorney General Andrea Joy Campbell released the Office's (AGO’s) annual Labor Day Report, highlighting the efforts taken to ensure that workers in the Commonwealth receive fair pay, benefits, and safe working conditions.  In Fiscal Year 2024 (FY2024), which runs from July 1, 2023 to June 30, 2024, AG Campbell’s Fair Labor Division (FLD) took civil enforcement actions against 638 employers, helping 40,370 workers across Massachusetts and assessing more than $31.5 million in restitution and penalties. The retail/sales industries faced the highest rate of enforcement actions (26.2%), and “Failure to Make Timely Payments” was the most common type of violation (487 citations). The construction industry saw $2.7 million dollars in fines issued which impacted slightly over 1,100 employees – numbers below other industries identified in the report.

Also highlighted in the report, the AGO secured its first conviction for labor trafficking since “An Act Relative to the Commercial Exploitation of People” was enacted in 2012. This law established human trafficking for sexual servitude and forced labor as criminal acts under state law. Additionally, the FLD successfully spearheaded a coalition of 27 labor enforcement agencies in calling on the United States Department of Homeland Security (DHS) to extend the protection period of the Deferred Action Program for noncitizen victims and witnesses of labor violations from two years to four years. Some labor investigations may take several years to reach a resolution, and worker witnesses and victims losing their protections against deportation during that time could seriously jeopardize investigations and result in employers who break the law going unpunished. Shortly after receiving the letter, DHS announced it would extend the program’s period of protection from deportation from two years to four years. 

The annual Labor Day Report, which often highlights the various priorities of the respective Attorney General, also pointed to AG Campbell’s outreach relative to youth employment. In FY2024, FLD assessed more than $3.6 million against employers that violated the Commonwealth’s child labor laws. In June, the AGO’s Healthy Summer Youth Jobs grant program, which uses healthcare and child labor settlement money to provide grants for health-focused employment for young people, awarded nearly $375,000 of this funding to more than 30 organizations across the Commonwealth. Finally, in addition to its enforcement efforts, the AGO hosted or participated in nearly 200 worker- and employer-focused community engagement events and conducted 206 compliance visits during FY2024.

To review a copy of the Attorney General’s Labor Day Report, please visit: https://www.mass.gov/doc/labor-day-report-2024/. As always, more information about the state’s wage and hour laws is also available in multiple languages at www.mass.gov/ago/fairlabor. 

News in Brief

Not Yet Done; Massachusetts Legislature Eyes Potential Return to Formal Session. As previously reported in last month’s Construction Outlook, the Massachusetts legislature left a variety of initiatives in conference committee negotiations as both branches jockeyed for position during the last hours of formal session. Bills addressing a variety of health care issues, clean energy siting and permitting as well as the omnibus economic development bill, among others, were left awaiting final action. While certain measures (i.e. maternal health and long term care legislation) have been passed during informal sessions, other measures like the economic development bill contain bond authorizations and potentially controversial energy siting initiatives that require roll call votes have not been. Accordingly, leadership in both branches of the Massachusetts legislature have indicated that they will likely meet in a special formal session to address a myriad of these matters. While a timetable has not been specified, stay tuned for more information about these matters in the coming months.

Unemployment Rate Increase. According to the Executive Office of Labor and Workforce Development (EOLWD), local unemployment rates increased in twenty-two of twenty-four labor market areas in the state during the month of July 2024 compared to June 2024. Compared to July 2023, the unemployment rate was up in all twenty-four labor market areas. The largest percentage increase occurred in the area around the Town of Barnstable (2.2%). The largest percentage decreases occurred in the Boston-Cambridge-Newton (0.3%), Worcester MA-CT (-0.9%), and Springfield MA-CT (-0.7%) areas. From July 2023 to July 2024, thirteen areas gained jobs with the largest percentage increases seen in the Boston-Cambridge-Newton (+1.1%), Worcester MA-CT (+1.9%), and Springfield MA-CT  (+1.3%) areas. The statewide seasonally adjusted preliminary jobs estimate showed a decrease of -2,300 jobs in July, and an over-the-year gain of 41,200 jobs. The United States Bureau of Labor Statistics, from which much of the data is acquired, reported the nation’s seasonally adjusted unemployment rate for June 2024 increased by 0.2 percentage points over-the-month to 4.3%. For a broader range of tools to examine the Commonwealth’s employment measures, please visit the Massachusetts Department of Economic Research at: https://lmi.dua.eol.mass.gov/lmi.

Learn More about the EPA Grant Process. The United State Environmental Protection Agency (EPA) holds periodic webinars to assist potential applicants with information about the EPA’s grant process. While the EPA holds “live” sessions for attendees, they also record the same for future viewing after the fact. A recent session held on June 18 was intended to help grant applicants learn how to find and successfully apply for competitive EPA grants. EPA officials also provided an overview of the competition process from application through evaluation and selection. To view this informative session and the materials distributed at the same, please visit: https://www.epa.gov/grants/competition-process-webinar-june-18-2024.

Environmental Justice Trust Included in Fiscal Year 2025. One of Attorney General Andrea Joy Campbell’s policy initiatives, a new Environmental Justice Trust (Trust), was signed into law by Governor Maura Healey as part of the fiscal year 2025 budget recently. The Trust, proposed by AG Campbell, Representative Brandy Fluker-Oakley, and Senator Adam Gomez, will support projects that address environmental harms in disadvantaged communities across the Commonwealth. Funded through civil penalties obtained in judgments and settlements from state cases in the AGO’s Environmental Protection Division (EPD), the Trust will benefit community health by addressing economic, environmental, or health-related burdens people face every day. Under the new law, the Trust will be administered by the AGO and can be used for: the restoration of any natural resource; the investigation, remediation or mitigation of any environmental pollution or harm at any property located in a disadvantaged community; any project to benefit the community health or well-being, including those related to economic, environmental or health needs of a disadvantaged community; and an academic or government-funded research project related to environmental protection or conservation of natural resources in a disadvantaged community. 

Framingham Issue Highlights Importance of Ongoing Water Infrastructure Investment. As reported by the MetroWest Daily News, the City of Framingham had a significant "sanitary sewer overflow" at the end of July. A sanitary sewer overflow is defined as "an unintentional overflow, spill, release, discharge or diversion of untreated or partially treated sewage from the city’s public sanitary sewer." The overflow event took place at 72-74 Main St., and lasted until 9 p.m. During that period, the City of Framingham estimated that about 675,000 gallons of untreated sewage and waste was spilled in the area. In a clever nod to the Olympics in Paris, the MetroWest Daily News noted that an Olympic-sized swimming pool also holds about 660,000 gallons of water. In a subsequent City Council meeting held in late August, the City of Framingham’s Director of Public Works explained that replacement of the twenty (20) feet section of leaking sewer pipe, located in wetlands, required 13 septic pumper trucks, 22 staff, including 5 managers, and cost $110,000. The Director of Public Works further explained that normally $110,000 the same amount of funding would normally pay for the replacement of approximately four hundred (400) feet of sewer pipe. From initial analysis, it appears that the underlying issue resulted from a cast iron sewer pipe that ran through wetlands, which are more acidic and prone to eating away at such pipes. Again, as municipalities consider ongoing infrastructure improvements, investing in water infrastructure continues to be of critical importance.