In response to sharply rising oil prices, Massachusetts Gov. Maura Healey issued an executive order on Oct. 5, 2026, redirecting funds intended for clean energy projects to provide home heating assistance this winter, according to a report published Oct. 8 by Utility Dive. The directive declares an energy emergency in the state and instructs agencies to use alternative compliance payments — fees that power suppliers pay when they miss clean energy targets — to supplement federal heating aid for low- and middle-income households. The order also temporarily slashes ratepayer costs tied to two renewable energy programs by 50% and eliminates charges for distributed solar incentives.
Home heating oil prices in Massachusetts hit $6.12 per gallon last week, up nearly 75% from a year earlier, based on the latest figures from the state's Department of Energy Resources. The governor's order directs the Department of Energy Resources and Department of Environmental Protection to identify alternative compliance payment funds that can boost federal money for the Home Energy Assistance Program this winter. It also creates a one-time payment for middle-income families who don't qualify for existing federal assistance but heat their homes with oil. The 50% cut to the Alternative Energy Portfolio Standard, which supports technologies like renewable thermal and flywheel energy storage, will deliver $20 million in additional relief to ratepayers, the governor's office said.
Larry Chretien, executive director of Green Energy Consumers Alliance, told Utility Dive that "we agree with the governor that oil prices have risen to the point at which the state needs to supplement federal support for low-income energy assistance," but said his organization would prefer the money come from the state's general fund rather than redirecting alternative compliance payments that should fund clean energy projects. Chretien noted that in recent years, the governor's team has put those funds to good use on battery storage, microgrids for environmental justice communities, and efficiency upgrades for government buildings — all investments that cut costs for ratepayers and taxpayers. A spokesperson for the Massachusetts Executive Office of Energy & Environmental Affairs confirmed that the governor plans to phase out the Alternative Energy Portfolio Standard program entirely, starting with the current 50% reduction.
Beyond the immediate heating relief, the executive order also calls for a comprehensive review of the state's net-metering compensation, program costs, and appropriate payment levels for solar energy. State agencies must examine reforms other jurisdictions have adopted and identify changes that could control costs while still supporting solar deployment in Massachusetts. Currently, utilities like Eversource, National Grid, and Unitil each set their own net-metering compensation rates. National Grid said in a statement it supports solutions that balance affordability with maintaining a safe and reliable energy system.
The order makes clear that Massachusetts still intends to double the amount of solar on the system by 2035, as mandated in a previous executive order, while ensuring ratepayers don't pay more than necessary to achieve that growth. The temporary elimination of ratepayer responsibility for the Solar Massachusetts Renewable Target program — which incentivizes residential and commercial solar projects — will be covered by alternative compliance payments instead of appearing on monthly bills. The moves reflect a tension between maintaining the state's clean energy commitments and providing immediate relief as fossil fuel prices spike, with the administration betting it can thread both needles at once.