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“First in Revolution”

Liability language stalls Marblehead's last Green Communities step

Light commissioners heard residents urge them to accept a $0.0005-per-kilowatt-hour charge, then declined to act until a permanent state contract gets explained.

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The town had come to 80 Commercial St. on Sept. 1 with a short list. Community Development and Planning Director Brendan Callahan and town planner Jacinta Williams told the Marblehead Light Commission that after eight years of work, nearly every requirement for Green Communities designation was met or nearly met, and that one utility action remained. Three residents stood up and asked commissioners to take it.

Then commissioner Mike Hull opened the agreement the Marblehead Municipal Light Department would have to sign and started reading from it.

"If in fact we default, who is responsible for paying back any grant money that's taken by anybody?" Hull asked.

No one in the room could answer. The Commission did not vote.

"We are not going to take a vote on this item today," chair Jean-Jacques Yarmoff said. "We have not identified the vote on this in the agenda."

That leaves the decision that has stalled Marblehead's designation since 2018 exactly where it was: with five separately elected light commissioners who must decide whether to levy a Renewable Energy Trust charge of $0.0005 per kilowatt-hour — five-hundredths of a cent — on every electric bill in town. State rules require the charge of communities served by a municipal light plant. Under M.G.L. c. 25, §20, once a light plant elects to impose it, the election cannot be undone.

Who pays if a grant goes bad

Hull did not argue against clean energy. He argued about the paper.

Reading from a version of the membership agreement he said he had downloaded from the Massachusetts Clean Energy Center website that day, Hull said the arrangement runs in perpetuity and is irrevocable, that Beacon Hill could raise the charge later, and that the eligibility language appeared to let entities beyond the town seek money from the trust fund. He then read a passage describing what happens in an event of default, saying the light plant and the electing municipality would be jointly and severally liable to repay the Renewable Energy Trust fund.

"So it falls on the light department," Hull said. "It falls on the ratepayers."

The discussion did not establish that reading as the operative one. Yarmoff said the version in Hull's hands may not be the right form of contract at all. He said he had previously circulated a tripartite agreement — a structure used where a light department serves neighboring towns, or where the light board does not set rates and the Select Board signs as the rate-setting body — and that he had since been advised it does not apply here. Marblehead's situation, he said, calls for a two-party agreement between the light department and the Massachusetts Clean Energy Center.

He said he intends to put the liability and amendment questions to the center's lawyers and bring answers back, and that he has invited a Department of Energy Resources representative to a future meeting to address who may apply for grant money. On that last point Yarmoff offered a partial answer of his own: he said he had reviewed the state's public grant database covering roughly 1,100 awards since the program began, and that all of them went to municipalities for public buildings.

Hull also objected to the charge itself, calling it another tax on ratepayers. "That's your opinion," Yarmoff replied.

Residents press the numbers

Public comment ran the other way.

Keith Webster of 118 Rockaway Ave. told commissioners he wanted to argue the economics and leave the grants and the environmental case aside. Previous reporting calculated that applying the charge to the 98,811 megawatt-hours the light department sold in 2024 would collect roughly $49,400 a year. Webster set that against two measures identified in Marblehead's own Energy Reduction Plan — reducing equipment schedules and optimizing ventilation — at the schools, which he put at $54,173 a year in avoided energy costs against a charge he rounded to $50,000. Both figures are estimates, and the savings depend on projects the town has not yet done.

"We're not being asked to spend $50,000 for sustainability," Webster said. "We're being asked to make an investment that can be offset by something that we know we've already identified at one building."

Eileen Mathieu, who identified herself as chair of Sustainable Marblehead's clean energy and public policy working group, took on the objection commissioners had raised before: that they would levy a permanent charge and then find the town without staff to chase, administer and close out grants. She pointed to the tier three override voters passed in June, which she said permanently funds a community development and planning department with a director, a town planner, a planner devoted to sustainability and a grant manager inside the tax levy. She pointed to the Select Board's unanimous Aug. 26 vote supporting the Light Commission in taking the remaining steps to apply.

"So I feel like the ball's in your court," Mathieu said.

Michelle Phillip of Sustainable Marblehead made the case in comfort rather than dollars — double-pane windows at the library, better conditions for town employees, air conditioning in classrooms — "all for the cost of $5 a year," she said. Previous reporting put the average customer's annual cost at about $4.

Eight years, zero dollars

Williams walked commissioners through what the town says it has finished. Marblehead has by-right zoning for light manufacturing and research in its business and unrestricted districts, an expedited permitting process, an Energy Reduction Plan adopted on the town and school sides, a zero-emissions-vehicle purchasing policy that goes beyond the state's minimum and the Stretch Energy Code, adopted at 2018 Town Meeting as part of the first designation push.

Two things besides the utility charge are still open. The town must identify at least 50,000 square feet of vacant or substantially underutilized land or building space as of the application date, and town counsel must certify the siting and permitting criteria in writing. Callahan said the effort was paused while Marblehead worked through its MBTA Communities zoning obligation, was revived in recent weeks and is aimed at a December application if the remaining pieces come together.

The money at stake is real but modest at first. The town has been told its initial award would likely run about $140,000 to $160,000, calculated by state formula after designation, with project plans subject to state approval. Swampscott has drawn about $1.57 million since 2010, Salem about $1.56 million, Beverly about $1.29 million and Peabody $515,592 since 2024. Marblehead's line reads $0.

The Energy Reduction Plan identifies about a dozen candidate projects — HVAC optimization, controls and scheduling work, lighting, weatherization and electrification at schools and municipal buildings. Previous reporting found that the plan's savings total, 14,488 million British thermal units against a 62,442 million-British-thermal-unit baseline, comes to about 23.2%, clearing the state's 20% requirement, and that the plan's own table labels the same total 44.7% by adding a building-side percentage to a vehicle-side percentage drawn from different denominators.

Later in the same meeting, commissioners did vote — repeatedly, by roll call, on an unrelated offshore-wind power purchase through the Massachusetts Municipal Wholesale Electric Co. Hull voted no each time; the motions carried. The Green Communities item drew no motion at all.

The Commission's next regular meeting is Sept. 29. Yarmoff said the contract would come back then, with answers. He did not say a vote would.

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