MA S1998

Establishes a Renewable Heating Standard requiring natural gas sellers to reduce carbon intensity of gas delivered by 2% starting in 2027, 7.5% by 2030, and 20% by 2035

Creates a Renewable Heating Solutions Development Fund administered by the Department of Energy Resources, funded by alternative compliance payments, to support investment in renewable heating fuels and thermal resources

Provides 30% refundable tax credits for businesses and individuals purchasing qualified renewable heating equipment (heat pumps, renewable hydrogen/propane systems) and geothermal district heating infrastructure, available for tax years 2024-2028

Defines qualified renewable heating fuels as renewable natural gas, renewable hydrogen, and renewable propane derived from biogas, biomass, or other sustainable feedstocks with lower lifecycle greenhouse gas emissions than fossil fuels

Requires the Department of Energy Resources to establish gas quality standards for injection of renewable fuels into pipelines by July 1, 2025, and conduct an inventory of existing and potential renewable heating fuel sources