The Massachusetts Fiscal Alliance today called on Governor Maura Healey to withdraw the state’s new Large Building Energy Reporting (LBER) mandate, a burdensome requirement as part of a larger Net Zero by 2050 state mandate, that threatens employers and drives jobs out of Massachusetts.

The new rule, which was quietly embedded in 2022 legislation titled An Act Driving Clean Energy and Offshore Wind, forces building owners with over 20,000 square feet of space to report detailed energy usage data to the state, including oil, propane, wood, and even on-site renewable generation. Utility companies are also required to report the buildings utility energy usage. This reporting is likely laying the groundwork for an energy use tax or energy rationing, as the state’s rapidly dwindling generation capacity is outstripped by every increasing demand being powered by state electrification mandates.

Earlier this year, some property owners received an undated letter from Energy Resources Commissioner Elizabeth Mahoney, ordering them to register their properties and begin complying with the new mandate.

“Large property owners already have every incentive to use energy efficiently because it directly impacts their bottom line. This new reporting requirement isn’t about helping businesses, it’s about arming regulators with data they’ll use to justify the next round of costly mandates. The state is effectively making businesses braid the rope they’ll be hung with,” said Paul D. Craney, Executive Director for the Massachusetts Fiscal Alliance.

Craney warned that these requirements are a precursor to energy rationing or a de facto carbon tax, threatening the competitiveness of Massachusetts’ economy and discouraging new investment.

“If you’re a manufacturer or an AI company looking to expand, why would you come to Massachusetts when the state is signaling that government bureaucrats are monitoring your energy use? The message couldn’t be clearer: we’re not open for business. Take your jobs and investments elsewhere,” noted Craney.

MassFiscal urged Governor Healey to retract the letter sent by her administration and abandon implementation of LBER. The organization is also renewing its call for the state to replace the binding Net Zero by 2050 mandate with an aspirational goal, allowing flexibility without punishing ratepayers or employers.

“Governor Healey has already started to soften her rhetoric on energy after hearing from angry ratepayers. But the problem facing ratepayers isn’t messaging, it’s policy. Massachusetts will never be affordable or competitive again until the Net Zero mandate is repealed. Mandates come at a cost, and that cost is being borne by working families,” closed Craney.

A full op-ed from MassFiscal on this issue appeared in today’s Boston Herald, titled “Healey Must Reverse Course on Net Zero by 2050.”