# 2011 Annual Report

of the Efficiency Maine Trust

December 1, 2011

## Table of Contents

Page Executive Summary .............................................................................................................................i

Introduction

.............................................................................. . ................................................ ... ....... 1



### Programs

.................. ............................................................................................................................8

Financial .............................................................................................................................................51

Other Initiatives

.............................................................................................................................. . .56

Appendices

....................................................................................................................................... . 59i 

# Executive Summary

This is the Annual Report of the Efficiency Maine Trust for Fiscal Year 2011 (FY11) . The period covered is July 1, 2010 to June 30, 2011.
As described in this report, the Trust managed funds to administer programs promoting energy efficiency and customer

- owne d alternative energy. As in previous years, a significant portion of the Trust’s funds derived from Maine’s electricity customers , through the S ystem B enefit C harge (SBC) and the Regional Greenhouse Gas Initiative (RGGI) and were deployed to help lower electric ity costs. In the aggregate, these electric programs avoided wasting 1. 67 billion kWh of electric consumption and lowered present and future electric costs in Maine by more than $127 million. Table ES

- 1 summarizes the results of the Trust’s electric efficiency programs and alternative energy programs:

Table ES

- 1

– FY11 Benefits and Costs of Efficiency Maine Electric Programs

In FY11, a notable change from past years was the influx of significant funds from the f ederal government’s American Recovery and Reinvestment Act (ARRA). Because the one

- time federal funds were not restricted to benefitting electricity customers, most of these funds were focused instead on
p rograms to lower Maine customer s ’ heating oil cost s. In the aggregate, these all

- fuels programs leveraged $46. 8 million in private investment s in Maine’s energy infrastructure and are projected to lower Mainers’ present and future energy costs by nearly $321.5 million. Table ES

- 2 summarizes the results of the Trust’s “all fuels” energy efficiency and alternative energy programs. Program Lifetime kWh Savings Efficiency Maine Costs Participant Cost Lifetime Energy Benefit Benefit To Cost Ratio Business Program 586,638,242 11,045,371 $ 10,145,729 $ 47,315,549 $ 2.23 Competitive Bid Projects 423,281,776 4,717,139 $ 8,461,453 $ 28,533,872 $ 2.17 High Performance School 6,077,578 853,448 $ 189,088 $ 535,054 $ 0.51 Residential Lighting 614,388,191 4,039,443 $ 6,534,669 $ 46,745,171 $ 4.42 Residential Appliances 39,036,190 1,533,022 $ 1,415,947 $ 4,391,481 $ 1.49 Low Income 5,972,672 325,515 $

- $ 465,922 $ 1.43 Education & Awareness

- 303,375 $

- $

- $

- Total 1,675,394,649 22,817,311 $ 26,746,885 $ 127,987,049 $ 2.58ii Table ES

- 2

– FY11 Benefits and Costs of Efficiency Maine All

- Fuels Programs Funded by the American Recovery and Reinvestment Act (ARRA)

As discussed in the F inancial section of this report, the Trust paid out $44.6 million in FY11 to fund the programs described above. Table ES

- 3 provides a summary of the Trust’s payments during the year.



### Table ES

- 3

– FY11 Payments Made

Expenditure Amount ($) Administrative 2,283,217 Residential Programs

**•** Low Income

**•** Non

- Low Income 15,345,702

**•** 292,073

**•** 15,053,629 1 Business Programs

**•** Medium and Large Businesses

**•** Small Businesses

**•** Prescriptive Incentives (All Businesses) 23,719,598

**•** 8,959,827

**•** 6,436,426

**•** 8,323,345 Enabling Strategies

**•** Financing and Training

**•** Codes and Standards

**•** Education and Awareness

**•** Evaluation 2,633,100

**•** 289,537

**•** 122,226

**•** 2,060,509

**•** 160,828 Capital Outlay 109,877 Inter

- agency Grants 515,670 Total Payments 44,607,167

The F inance and Administration section also reports on the results of the Financial Report and the Single Audit Report prepared by an independent auditor. The audit issues an Un qualified Opinion and finds no Q uestioned Costs.

1 See , the “Statement of Revenues, Expenditures and Changes in Fund Balance” on p. 10 and pp. 25

- 27 of Appendix G for more detailed explanation of the Trust’s FY11 expenditures. Program Lifetime Energy Savings (MMBTU) Efficiency Maine Costs Participant Cost Lifetime Energy Benefit BenefitTo-Cost

Ratio

Commercial Projects 251,069 1,462,555 $ 2,819,397 $ 9,363,039 $ 2.19 Competitive Bid Program (GHG Reductions) 3,434,218 $ 15,894,752 $ 197,588,241 $ 10.22 Commercial New Construction (ME Advanced Bldg) 9,481 224,022 $ 91,388 $ 231,934 $ 0.74 Retro-Commissioning 119,541 343,411 $ 416,682 $ 2,303,433 $ 3.03 Small Business Energy Audits 205,288 $

- $ EECBG Municipal Grants 3,373,243 $ 374,805 $ Home Energy Savings Program 4,820,173 8,588,496 $ 20,368,825 $ 101,335,965 $ 3.50 Replacement Heating Equipment 179,825 1,207,895 $ 456,127 $ 2,235,866 $ 1.34 Solar/Wind Rebate 80,595 571,528 $ 4,765,571 $ 1,583,307 $ 0.30 Renewable Resource Fund Supplement 469,027 $ 137,390 $ Building Operator Certification (BOC) Trainings 346,382 83,362 $ 1,559,556 $ 6,847,967 $ 4.17 Total 19,963,044 $ 46,884,493 $ 321,489,752 $ 4.81iii The audit finds that t he financial statements present fairly the respective financial position of activities , fund s and changes in financial position in conformity with accounting principles generally accepted in the United States of America

. The auditor reviewed the Trust’s internal control over fi nancial reporting and found no deficiencies consider ed to be material weaknesses or instances of noncompliance or other matters that are required to be reported under Government Auditing Standards

. The auditor’s discussion of the Trust’s oversight of sub

- grantees ’ compliance with federal standards finds that during the cours e of FY11 the Trust developed procedures and policies to enhance its controls over such compliance. It further finds that the Trust complied, in all material respects, with the req uirements of applicable laws, re gulations, contracts and grants that could have a direct and material effect on each of its major federal programs

.1 

# Introduction

This is the Annual Report of the Efficiency Maine Trust (the “Trust” or “Efficiency Maine”) for activities during fiscal year 2011 (FY11), which covered the period from July 1, 2010 to June 30, 2011. It provides detail on the budgets, strategies and results for all program activity undertaken by the Trust, and describes other activity related to studies, reports, and initiatives in which the Trust engaged during FY11. T he activities covered in the FY11 Annual Report are notable for occurring during the period in which administration of Efficiency Maine programs was transferred from the Energy Division of the Maine Public Utilities Commission to the independently managed Efficiency Maine Trust. In short, this is the report of the Trust’s first year on the job.

Establishment of the Trust
The Efficiency Maine Trust was created by statute in 2009. T he purposes of the Trust include:

**•** consolidating under one roof the funds f or Maine’s consumer efficiency programs for all fuel types

– electric, natural gas, and heating oil

– together with consumer alternative energy
programs;

**•** integrating delivery of electric and thermal efficiency measures so the customer can have a one

stop shopping experience;

**•** acquiring energy resources (efficiency and alternative energy) that cost less than traditional energy supply to help individuals and businesses meet their energy needs at the lowest cost; and,

**•** helping to transform the energy market in Maine so that energy efficient products, alternative energy equipment, and related energy services are more accessible and affordable to end

- use customers.
To promote “best practices” of energy program administration, the Efficiency Maine programs were

mo ved to an independent trust with the aim of maximizing the effective and efficient use of funds, insulating the program management from conflicts of interest and from political agendas, and encouraging faster responsiveness to customer needs and changes in the marketplace. The specific principles of administration enumerated in the authorizing statute are as follows:
The trust shall ... ensure that funds are expended for uses consistent with applicable state and federal law and so that the following principl es of administration are met:

A. Programs are consumer

- oriented such that the processes for participation and program design are targeted to serve the multiple needs of energy2 consumers in this State;

B. The effectiveness of programs is maximized by building up and centralizing expertise, addressing conflicts of interest, mitigating the influence of politics, promoting flexible, timely program management and providing a champion for funding cost

- effective energy efficiency;

C. The efficiency with wh ich programs are planned, designed, overseen and delivered is maximized; and

D. Sufficient checks and balances are provided to ensure consistency with public policy and accountability for meeting the principles set out in paragraphs A to C so that energy efficiency programs in the State are sustainable for the long term. 2

In order to uphold these best practices, a diverse stakeholder Board of Trustees (the Board) was established. The Board comprised individuals representing a variety of backgrounds and perspectives, including those of industry, business, residential consumers and environmental protection. The initial appointments to the Board were made in July, 20 09 and confirmed by the Senate the following month. The Board held its first meeting on S eptember 3, 2009

. The initial composition of the Board and officers, which governed Efficiency Maine programs during the period covered by this Annual Report, was as follows:

ADAM LEE, Chair President, Lee Auto Malls
NAOMI MERMIN, Vice

- Chair President, Naomi Mermin Consulting
MICHELLE ATHERTON, Treasurer Owner, New Form Building Systems, Inc.
JAMES ATWELL, P.E., Secretary Senior Project Manager, Sevee and Maher Engineers, Inc.

GLENN S. POOLE Manufacturing Support Manager

- Energy, Verso Paper JOHN ROHMAN , P.E., CID Chairman, Board of Directors, WBRC Architects

- Engineers TOM TIETENBERG, Ph.D. Mitchell Family Professor of Economics, Emeritus, Colby College JOHN KERRY (member ex

- officio) Director, Governor’s Office of Energy Independence and Security

DALE MCCORMICK (member ex

officio) Director, MaineHousing

2 35

- A MRSA 10104(2).3 The statute that established the Trust gave the Board specific duties. Chief among these is a fiduciary duty to hold the funds in trust for the benefit of the electric and natural gas utility customer s where funds are derived from those customers. 3

The Triennial Plan The Board is also responsible for developing a three

- year strategic plan, called the “Triennial Plan.”

The function of the Triennial Plan is to identify program initiatives, allocate bu dgets, and establish metrics by which to judge program effectiveness and efficiency. The Plan governs various revenue streams that come into the Trust:

**•** Electric Efficiency and Conservation Fund;

**•** Regional Greenhouse Gas Initiative (RGGI) Trust Fund;

**•** Natural Gas Conservation Fund;

**•** Heating Fuels Efficiency and Weatherization Fund; and,

**•** “Any state or federal funds or publicly directed funds accepted by or allocated to the trust ...” 4

The 10

- and 20

- year energy savings targets established by statute are far

- reaching and were incorporated into the strategy and budgets of the Triennial Plan. Among others, the targets include:

**•** Capturing all cost

- effective energy efficiency resources available for electric and natural gas utility ratepayers;

**•** Achieving electr icity and natural gas savings of 30 percent within a decade;

**•** Achieving heating oil savings of 20 percent in the same timeframe; and

**•** Weatherizing 100 percent of homes and 50 percent of businesses by 2030.

The Trust’s Board conceived of the Triennial Plan a s an actionable plan that starts Maine on the path to achieving these targets. The Triennial Plan covers Fiscal Years 2011, 2012, and 2013, which spans the period from July 1, 2010 through June 30, 2013. The Plan was developed through public consultation , expert analysis of the options, and the combined vision of the volunteer members of the board. Work began on the plan in November, 2009. A first draft was completed in March, 2010 and approved unanimously by the Board of Trustees early the following mo nth, whereupon it was presented for input to the committee of jurisdiction in the Maine legislature.

3 35

- A MRSA 10110(10). See also , Sec. 10111(2)(Natural Gas) a nd Sec. 10109(2)(A)(Regional Greenhouse Gas Initiative) of the same statute

. 4 35

- A MRSA 10104(4)

.

.4 On April 23, 2010 , the Triennial Plan was filed for approval with the Maine Public Utilities Commission (the Commission), where it was assigned docket numb er 2010

- 116. The Trust provided responses to more than 50 data requests and answered questions during a technical conference. After taking additional public comment, on July 19, 2010, the Commission issued a conditional approval of the Triennial Plan. T he order issuing the approval required the Trust to provide additional details by October 1, 2010. After the additional details were provided by the Trust in a Supplemental Filing, the Commission issued final approval of the Triennial Plan on February 2, 2011.
Concurrent with the Supplemental Filing process, the Trust also filed an Annual Update Plan with the Commission and the legislative committee of jurisdiction on December 30,2010, as required by the statute, to report significant changes to revenues, budgets or performance metrics. The first

- year Annual Update Plan reported the following significant changes that had occurred since the initial submission of the Triennial Plan:

**•** Changes in Revenue

o Receipt of the Multi

- Family Award from U

. S

. Department of Energy (DOE) of approximately $4.5 million

o Receipt of BetterBuildings Award from DOE of approximately $30 million

o Receipt of the Benchmark Study Subgrant from Maine State Planning Office of approximately $230,000

o De

- authorization of Solar

- Wi nd System Benefit Charge projected to reduce revenues by approximately $500,000 per year

o Likely reduction to RGGI revenues to $3

- 4 million per year, compared to original assumptions of $8.5 million, for the next year or two, as well as slightly lower SBC r evenues compared to original assumptions due to the slow economy and reduced electric load

**•** Changes in Performance Metrics

o Efficiency Maine projected that fewer total homes than originally projected would be retrofit ted using the federal Home Energy Saving s Program funds due to increased costs for customer incentives needed to spur lackluster demand in the slow economy.

Because the opportunities for cost

- effective energy savings in the State of Maine are abundant and varied, both in terms of the types of o pportunities (e.g., lighting, appliances, heating systems) and the consumer segments where they can be found (e.g., renters and homeowners of varying income levels, businesses and industry of varying sizes and structures) the Trust’s first Triennial Plan r eflected choices, consistent with the direction provided by the legislature, about how much money to invest and where to invest it. To guide these choices, the Triennial Plan strived to follow to be affordable, comprehensive, balanced, flexible, and enabl ing of future savings

– the five guiding principles.5 In addition to these guiding principles, the Triennial Plan was also statutorily required to provide metrics, also called measures of performance, by which the effectiveness and efficiency of the Plan an d its component programs could be assessed. 5

1. Reduce more than 3.3 trillion BTUs per year of electric, natural gas and heating fuel energy consumption by Maine consumers by the third year of the Triennial Plan; The overarching metrics of the Triennial Plan, covering the three years of FY2011, 2012, and 2013 are to:

2. Achieve a benefit to cost ratio of not less than 2:1 as measured using the Total Resource Cost test;

3. Avoid 500,000 tons of CO2 equivalent during the three

- year period;

4. From the base electric con servation assessment, expend at least 20% for the benefit of low income customers and at least 20% for the benefit of small business customers.
The estimated benefits of the energy savings projected from full implementation of the Triennial Plan include:

**•** R esult in nearly $840 million in energy savings to consumers and $1 billion increase in Maine’s Gross State Product, net present value.

**•** Provide better than a 4:1 benefit to cost ratio for dollars invested by the Trust, and a 2.3:1 benefit to cost ratio for all costs invested, including the consumer’s contribution spending ( i.e. , using the “Total Resource Cost” cost

- effectiveness test).

**•** Support more than 12,000 net “job

- years” of employment over the life of the energy efficiency

measures.

**•** Reduce nearly 300,000 tons of CO 2 emissions annually by the third year, the equivalent of removing 52,000 cars from circulation

.

**•** Leverage as much as $281 million in private investment in Maine’s building and energy infrastructure during a slow economy.

The Triennial Plan proposed to achieve these goals by implementing programs organized in three basic categories: (1) programs for business customers; (2) programs for residential customers; (3) cross

cutting programs. This Annual Report provides detail on the budgets, strategies and results for each of those three categories of activity during fiscal year 2011 (FY11).

Transition
July 1, 2010 was the date for the official transition of authority and responsibility for administration of

5 35

- A MRSA Sec

. 10104(3)

.6 Efficiency Maine programs from the Maine PUC to the Trust. While the Board of Trustees and their consultants worked to develop and finalize the Triennial Plan, efforts were also underway to hire new staff and make other arrangements for the transition.
Applying a national search consiste nt with the directives of the statute, a new executive director was hired in February and started work in March, 2010. The executive director in turn interviewed candidates for positions to fill the staffing needs of the new organization.

Of the new sta ff hired from the Maine PUC, only four who had previously served in state government in the administration of energy programs elected “ at their option, ... to continue as state employees” consistent with provisions placed in the authorizing statute. 6 All ot her employees at the Trust are not state employees. A Chief Financial Officer was added to oversee all accounting and contract administration, and a Communications Director was added to reduce costs associated with outside marketing services.

6 Public Law, Chapter 372, 124th Legislature, First Regular Session , Part C, Section C

- 2(9).7 On or be fore July 1, the Maine PUC transferred to the Trust all outstanding contracts, funds and regulations associated with the administration of Efficiency Maine programs. The staff and contractors of the Trust also took over responsibility for participating in the ISO

- New England Forward Capacity Market. Administratively, other changes included conducting a competitive solicitation for bank services, resulting in the selection of Camden National Bank and establishing new office space on Capitol Street in Augus ta to better serve the operational needs of the organization.8 

# Programs

FY 2011 was a record year for the programs at Efficiency Maine. The organization delivered programs that saved more energy, and more money, than in any prior year. The economic impa ct of the FY11 programs included:

**•** generating $11 6 million in total investments in energy infrastructure upgrades during a sluggish
economy;

**•** lowering present and future energy costs in Maine by an estimated $449 million, making business es more profitable and competitive and families more economically secure;

**•** reducing demand for electricity across the state enough to suppress the price paid by all Mainers on the grid for energy, capacity, carbon allowances, and renewable energy credits; and ,

**•** helping to create or retain jobs (a recent macroeconomic study estimated that every $1 million in electric efficiency program funding tends to generate 51 full

- time equivalent jobs for a year and that every $1 million in oil efficiency program funding te nds to generate 75 full

- time equivalent jobs for a year).

The summary tables below illustrate the total energy savings and lifetime avoided energy costs from each of the programs administered by Efficiency Maine in FY11. Each table also shows the costs of Efficiency Maine to provide education, training, technical support, financial incentives, quality control, measurement and verification, and evaluation of each program, as well as the customer (“participant”)
cost

- share to install energy upgrades. The Be nefit

- to

- Cost Ratio indicates the ratio of the benefits (from the lifetime avoided energy costs) to the combined costs of Efficiency Maine and the participant.

Table 1

– FY11 Costs and Savings for Programs Funded by the Electric and Natural Gas System Ben efit Charges (SBC) and by the Regional Greenhouse Gas Initiative (RGGI)

Program Lifetime kWh Savings Efficiency Maine Costs Participant Cost Lifetime Energy Benefit Benefit To Cost Ratio Business Program 586,638,242 11,045,371 $ 10,145,729 $ 47,315,549 $ 2.23 Competitive Bid Projects 423,281,776 4,717,139 $ 8,461,453 $ 28,533,872 $ 2.17 High Performance School 6,077,578 853,448 $ 189,088 $ 535,054 $ 0.51 Residential Lighting 614,388,191 4,039,443 $ 6,534,669 $ 46,745,171 $ 4.42 Residential Appliances 39,036,190 1,533,022 $ 1,415,947 $ 4,391,481 $ 1.49 Low Income 5,972,672 325,515 $

- $ 465,922 $ 1.43 Education & Awareness

- 303,375 $

- $

- $

- Total 1,675,394,649 22,817,311 $ 26,746,885 $ 127,987,049 $ 2.589 Table 2

– FY11 Costs and Savings for Programs Funded by American Recovery and Reinvestment Act (ARRA) Funds

This section of the Annual Report provides a short description of each of the programs referenced in these two tables. The descriptions are divided into four categories:

**•** Business Programs;

**•** Residential Programs;

**•** Alternative Energy Programs; and

**•** Enabling Strategies.

Each description generally includes a statement of the main purpose of the program, an indication of activities undertaken to implement the program, and a summary of any quantifiable results. Program Lifetime Energy Savings (MMBTU) Efficiency Maine Costs Participant Cost Lifetime Energy Benefit BenefitTo-Cost

Ratio

Commercial Projects 251,069 1,462,555 $ 2,819,397 $ 9,363,039 $ 2.19 Competitive Bid Program (GHG Reductions) 3,434,218 $ 15,894,752 $ 197,588,241 $ 10.22 Commercial New Construction (ME Advanced Bldg) 9,481 224,022 $ 91,388 $ 231,934 $ 0.74 Retro-Commissioning 119,541 343,411 $ 416,682 $ 2,303,433 $ 3.03 Small Business Energy Audits 205,288 $

- $ EECBG Municipal Grants 3,373,243 $ 374,805 $ Home Energy Savings Program 4,820,173 8,588,496 $ 20,368,825 $ 101,335,965 $ 3.50 Replacement Heating Equipment 179,825 1,207,895 $ 456,127 $ 2,235,866 $ 1.34 Solar/Wind Rebate 80,595 571,528 $ 4,765,571 $ 1,583,307 $ 0.30 Renewable Resource Fund Supplement 469,027 $ 137,390 $ Building Operator Certification (BOC) Trainings 346,382 83,362 $ 1,559,556 $ 6,847,967 $ 4.17 Total 19,963,044 $ 46,884,493 $ 321,489,752 $ 4.8110 

# BUSINESS PROGRAMS

Through its Busin ess Programs, Efficiency Maine administers a wide variety of offer ings for business and institutional electric customers of all sizes . This section of the Annual Report describes the Business Programs delivered in FY11 organized by the source of the funds used to pay for the programs. The first group of Business Programs described below w as paid out of funds generated by the System Benefit Charge (SBC) or Regional Greenhouse Gas Initiative (RGGI). These are programs that Efficiency Maine has offered for much of the past decade and will continue to offer into the future. The second group of Business Programs was paid out of funds received from the federal government, primarily through the American Recovery and Reinvestment Act (ARRA). Because the ARRA fu nds were a one

- time source of revenue, continuation of the ARRA

- funded programs is unlikely unless increased revenues are received

or resources are shifted from other programs.



## SBC and **RGGI**

**- Funded Business Programs** 

The FY11 activities and results of Efficiency Maine Trust’s Business Incentive Program, the Competitive Bid Program (for electric savings), and the Maine High Performance Schools Program are described in this section.



## BUSINESS INCENTIVE PROGRAM

Purpose: The Business Incentive Program provide s education, technical assistance , quality control and financial incentives for energy upgrades to businesses of all sizes . The financial incentives are delivered to these business customers through either the Prescriptiv e Program or the Custom Program. The purpose of Efficiency Maine’s Prescriptive Program is to provide financial incentives for a portion of the incremental cost of efficient electric equipment relative to standard equipment. Prescriptive rebates are offe red at fixed amounts for a prescribed list of the most common efficient electric equipment that can be used in nearly every business: lighting, lighting controls, refrigeration, HVAC units, variable speed drives, and equipment related to agricultural industry. Efficiency Maine ’s Custom Program also provides incentives as well as technical assistance for the purchase and installation of premium

- efficiency electrical equipment that is not on the prescribed list of the Prescriptive Program . The equipment in the11 Custom Program incentives may be used for new construction projects, renovation projects, or for the replacement of functioning, but less efficient, existing equipment.

FY11 Activities: To build up the capacity of the supply chain to help deliver Efficiency Maine's Business Program , in FY2011 the Trust continued to expand and enhance the Qualified Partners network. Qualified Partners are experienced vendors, contractors, suppliers and other professionals who supply or install energy

- efficient equ ipment. These Qualified Partners are familiar with the Business Programs and assist customers with the selection of qualifying equipment and to apply for cash incentives for their
energy

- efficiency project. There are more than 350 Qualified Partners who h ave successfully completed all requirements and are participating in the Business Program.
In June 2011, Efficiency Maine contracted with Opinion Dynamics Corporation to conduct an impact and process evaluation of the Business Incentive Program, with a pri mary focus on the FY2011 program year (July 1, 2010

- June 30, 201 1 ). The evaluation, to be completed by November 30, 2011, is designed to quantify and verify electric energy and demand savings, analyze program cost

- effectiveness, and examine the effectivene ss of program design and delivery. Methods used in the evaluation include: telephone surveys of participants and non

- participants, and in

- depth interviews with program staff and qualified partners, analysis of the program database and technical reference m anual (TRM), engineering reviews of project documentation, and site visits to conduct measurement and verification of project installations. The evaluation will report on program impacts in terms of verified gross energy and demand savings, net energy and demand savings, and the benefit

- cost ratio.

FY11 Results: In FY11, the Business Incentive Program had an energy savings goal of saving 39,000 megawatt

- hours (MWH) per year. The results of the program are projected to save 44,804 MWH per year, exceed ing the goal by 110% . Summary information about the program participation, costs and benefits appear in Table 3

.

Table 3

– Business Incentive Program Results Total Participants Total Projects Lifetime kWh Savings Efficiency Maine Costs Participant Costs Lifetime Energy Benefit Benefit

- to

- Cost Ratio 1205 1949 586,638,242 $ 11, 045 , 371 $ 10,145,729 $ 47,315,549 2.2 3

Other results of the FY11 Business Incentive Program include:

**•** Trained 175 new Qualified Partners ;

**•** Inspected 100% of all project s over $5,000 incentive

– 10% of projects under $5,000 for a t otal number of project s inspected of 421 ;

**•** Answered approximately 660 inco ming calls for customer support;12 **•** Added new p rescriptive LED lighting incentives for w all pack fi xtures, outside light fixtu res, parking g arage fixtures, refrigerated case light fixtures, s crew

- i n & pin b ased LED lamps ;

**•** Developed an on

- line incentive application process to improve administrative efficiency and ease of access for customers ;

**•** Developed a web

- based incentive applic ation tracking system for Qualified Partners enabling them to track incentive applications for their customers ;

**•** Participated in 15 targeted business trade shows ;

**•** Presented Business Program overview and E nergy Management P ractices at 30 b usiness and
t rade association meetings throughout the State

.

Table 4 indicates the breakdown of the measures installed through t he Business Incentive P rogram and the share of each that were funded through the Prescriptive or the Custom incentive structure :

Table 4

– Busin ess Incentive Program Measures Installed
Measure Prescriptive Custom Lighting 1562 92 HVAC 62 3 Compressed Air 0 33 Variable Frequency Drive 22 24 Miscellaneous 0 28 Agriculture 10 0 Motors 59 0 Refrigeration 54 0 Total 1769 180

FY12 Plans : The Business Incentive Program strategy and activities planned for FY12 are the same as in FY11. The budget for the program in FY12 appears in Appendix C

.



## COMPETITIVE BID PROGRAM ( ELECTRICAL REDUCTION )

Purpose: In FY11, Efficiency Maine’s Competitive Bid Program (formerly called the Large Impact Project s) provided grants for large

- scale kilo w att

- hours ( kWh ) reduction projects. The focus of the program is to leverage private investment to achieve significant electrical savings and to stim ulate economic growth in Maine.

These grants are targeted at many of the biggest energy consumers in the state. They are selected based on the quantity of electric energy, measured in kWh, saved per program dollar invested by Efficiency Maine. By and large these companies and institutions have limited capita l budgets with many13 competing needs. As a result , the p ayback requirements for capital projects are short . This reality creates a significant market barrier to approval and install ation of large energy efficiency projects

. The grants from Efficiency Maine’s Competitive Bid Program help buy

- down the up

- front capital cost of large energy upgrade projects, helping the projects meet corporate Return on Investment requirements and gain approval. This makes the projects possible, frees up operating budgets and returns cash to the businesses in a difficult economy.

FY11 Activities: The Competitive Bid Program used funding from the RGGI auction proceeds. These grants were awarded primarily on the basis of annual kilowatt

- hour per dollar of grant funds, while project readiness, economic viability and other factors were also considered. The grants awarded in FY11 ranged from $300,000 to $750,000 per project

. In September 2010, nine grants were awarded totaling $4.3 million and leveraging $8.5 million in private matching funds. The types of projects funded through the Competitive Bid Program include cost

effective renewable generation, innovative process en hancements, and efficient drives and pumps. Projects funded to date are collectively projected to reduce electricity consumption by 293 million kWh over the full life of the installed measures.
In April 2011, Efficiency Maine contracted with Navigant Con sulting, Inc. to conduct an impact evaluation of the Competitive Bid Program g rants. The evaluation, which will be completed by March 31, 2012, focuses on quantifying and verifying the reductions in electrical usage. Methods used in the evaluation of progr am impacts include project documentation reviews, telephone interviews with grant recipients, and site visits to conduct measurement and verification of project installations. The evaluation will report on program impacts in terms of: energy and demand sa vings, renewable energy installation, associated greenhouse gas emission reductions, job creation and cost

- effectiveness.

FY11 Results: A list of the Competitive Bid projects appears in Appendix D

. Highlights of the results from the Competitive Bid Pro gram activity include:

**•** Presented the recommendations of our technical team to independent review committee and award ed 9 grants.

**•** Negotiated contracts with 9 grantees assuring that customers had the cash flow to proceed with their projects but the Trust was not in an unreasonable risk position.

**•** Monitored project progress for this round and the previous round of competitive projects.

Table 5

– Competitive Bid Program (kWh) Results Total Participants Total Projects Lifetime k Wh Savings Efficiency Maine Costs Participant Costs Lifetime Energy Benefit Benefit

- to

- Cost Ratio 9 9 423,281,776 $ 4,7 17 , 1 39 $ 8,461,453 $ 28,533,872 2.1714 FY12 Plans : The Competitive Bid Program strategy and activities planned for FY12 are the same as in FY11. The budget for the program in FY12 appears in Appendix C

.



## MAINE HIGH PERFORMANCE SCHOOLS

Purpose: The Maine High Performance Schools (HPS) program was designed to incent energy efficiency design improvements in the lighting and mechanical systems in the construction of Maine schools. HPS was launched in 2005 as a result of a partnership of the Maine Department of Education, Bureau of General Service s, the Maine School Management Association, United States Department of Energy, and Efficiency Maine.

FY11 Activities: The HPS program is now rolled into Efficiency Maine’s commercial new construction program. This is not an active program in the sense that Efficiency Maine has discontinued promotion of new entrants to the program. However, several schools are still completing pre

- existing agreements from the original program, and for this reason funds are still reserved in the budget and payments
cont inue to be made to meet those prior commitments.

A total of twelve schools remain in the HPS queue as they complete the design and construction process, and nine schools are in stages of the HPS commissioning process, where the HPS measures are inspected and operation is optimized

.

FY11 Results: Five schools completed the design/construction/inspection process in FY 2011

. The schools completing their agreements in FY11 were: Brunswick Elementary, Ocean Avenue in Portland , Ashland Elementary, Dexter Elemen tary and Brewer Elementary.

Table 6

– High Performance Schools Results
Total Participants Total Projects Lifetime k Wh Savings Efficiency Maine Costs Participant Costs Lifetime Energy Benefit Benefit

- to

- Cost Ratio 5 5 6,077,578 $ 85 3 , 448 189,088 $ 535,054 0.51

FY12 Plans : The High Performance Schools strategy and activities planned for FY12 are the same as in FY11. It should be noted that this program is not accepting new project proposals and is only overseeing and paying for the completion of prior commitments. The budget for the program in FY12 a ppears in Appendix C.15 

# ARRA

- Funded Business Programs

The FY11 activities and results of Efficiency Maine Trust’s Commercial Project Grants, Competitive Bid Program ( for Greenhouse Gas Reductions ) , the Retro

- Commissioning Pilot Program, the Small Business Energy Audit Program, the Small Business Loan Program, and the Energy Efficiency and Conservation Block Grant (EECBG) Program for municipal re

- grants are described in this section.



## COMMERICAL PROJECT GRANT PROGRAM

Purpose: The Commercial Project Grant Program offer ed grants to support energy efficiency projects or renewable energy systems for business customers . This program allowed the participants to compete for grants of up to $50,000 on an individual project basis with a 1

- to

- 1 matching fund requirement

.

The objectives of the ARRA funded grants included: rapid energy savings along with sustainable positive economic impacts ; immediate as well as long

- term job creation and/or retention ; significant energy savings ; leveraging of funding from other sources, and; possibility of broad, long

- term impact on the state economy.

FY11 Activities: Efficiency Maine allocated approximately $2 million of its original allotment of ARRA funds to the Commercial Project Grant Progra m. In FY11, Efficiency Maine executed the second and final round of funding for the Commercial Project Grant program. Approximately $600,000 had been previously awarded under the first round of this program in FY 10, leaving $1,400,000 for th e FY 11 round of grant funding.

In April 2011, Efficiency Maine contracted with Navigant Consulting, Inc. to conduct an impact evaluation of the Commercial Project Grants. The evaluation, which will be completed by January 31, 2012, focuses on quantifying and verifying the energy savings achieved by grant recipients through energy efficiency and renewable generation projects implemented between March 2010 and November 2011. Methods used in the evaluation of program impacts include project documentation reviews, telephone interviews with grant recipients, and site visits to conduct measurement and verification of project installations. The evaluation will report on program impacts in terms of: energy and demand savings, renewable energy installation, associated greenhouse gas emission reductions, job creation and
cost

- effectiveness.

FY11 Results: A list of the Commercial Project Grants appears in Appendix E . Summary results are:

**•** 45 Commercial Project Gra nts awarded totaling $1,387,000;16 **•** L everaging $2.8 million in private funds ;

**•** Two days of custom site visits with DOE officials reviewing 8 completed projects ;

**•** Ongoing monitoring of all 63 projects including site visits to verify project progress ;

**•** US DOE commended Efficiency Maine’s practice of requiring a Building Energy Use Intensity index for Commercial Project Grant recipients

.

Table 7

– Commercial Project Grant Program Results
Total Participants Total Projects Lifetime Energy Savings (MMBTU) Efficiency Maine Costs Participant Costs Lifetime Energy Benefit Benefit

- to

- Cost Ratio

45 45 251,069 $ 1,4 62 , 555 $ 2,819,397 $ 9,363,039 2.1 9

FY12 Plans : The Commercial Project Grant Program strategy and activities planned for FY12 are the same as in FY11. It should be noted that there are no new funds for this program, and no new project proposals are being accepted in FY12. The activities for FY12 will consist of oversight and payment of prior commitments. The budget for the program in FY12 appears in Appendix C.



## COMPETITIVE BID PROGRAM (GREENHOUSE GAS REDUCTIONS)

Purpose: In fiscal year 2010 Efficiency Maine’s Competitive Bid Program provided grants for large

- scale greenhouse gas (GHG) reduction projects pursuant to Section 10109 (Regional Greenhouse Gas Initiative) of Title 35

- A of the Maine statutes

. The focus of the e ffort is to leverage private investment in large energy efficiency or clean alternative energy projects to lower energy costs, achieve significant emissions reductions, and stimulate economic growth in Maine. This program is a companion to the program of the same name that targeted electricity (kWh) savings.

The grants from this program are targeted to reach some of the biggest energy consumers , and largest employers, in the state. As discussed above, generally these companies and institutions have limit ed capita l budgets with many competing needs. T he payback requirements for projects are often so aggressive that the large upfront cost associated with many energy efficiency and alternative energy projects makes such projects difficult to get approved an d capitalized

. The competitive ly bid grants make these projects possible and in turn reduce operating budgets to make the businesses more competitive

. The Competitive Bid Program used funding from the 15% of RGGI auction proceeds permitted by statute to be used for greenhouse gas reduction and State Energy Program funding from American Recovery and Reinvestment act. These grants were awarded primarily on the basis of annual greenhouse gas17 reductions per dollar of grant funds, while project readiness, economic viability and other factors were also considered. The grants awarded ranged from $300,000 to $750,000 per project.

FY11 Activities:
Efficiency Maine’s key activities in the implementation of this program include:

**•** Presented the recommendations of our technical team to independent review committee and award 9 grants;

**•** Negotiated contracts with 9 grantees assuring that customers had the cash flow to proceed with their projects but the Trust was not in an unreasonable risk position; and,

**•** Monitored project progress for this round and the previous round of competitive projects.
In April 2011, Efficiency Maine contracted with Navigant Consulting, Inc. to conduct an impact evaluation of this program together with the competitively bid large electric projects . The evaluation, which will be completed by March 31, 2012, focuses on quantifying and verifying the reductions in greenhouse gas emissions reductions . Methods used in the evaluation of program impacts include project documentation reviews, telephone interviews with grant recipients, and site visits to conduct measurement and verification of project installations. The evaluation will report on program impacts in terms of: energy and demand savings, renewable energy installation, associated greenhouse gas emission reductions, job creation and cost

- effectiveness.

FY11 Results: In FY 2011, nine grants were awarded totaling $3.2 million and leveraging $15. 8 million in private matching funds. The grants from this program have resulted in investment in cost

- effective renewable generation, heat recovery technology, and efficient drives and processes. Projects funded to date are listed in Appendix D and are collectively expected to prevent the emission of 620,008 tons of CO 2 over the lifetime of the projects.

Table 8

– Competitive Bid Program (GHG) Results Total Participants Total Projects Lifetime tons of CO2 Savings Efficiency Maine Costs Participant Costs Lifetime Energy Benefit Benefit

- to

- Cost Ratio 9 9 620,008 $ 3, 434 , 218 $ 15,894,752 $ 197,588,241 10.2 2

FY12 Plans : The Competitive Bid (GHG) Program strategy and activities planned for FY12 are the same as in FY11. The budget for the program in FY12 appears in Appendix C.18 

## COMMERCIAL NEW CON S TRUCTION PROGRAM

– MAINE ADVANCED BUILDINGS

Purpose: Efficiency Maine’s program for new construction of commercial buildings , usually referred to as “ Maine Advanced Buildings , ” provides easy

- to

- follow guidelines and incentives to design buildings that are 15

- 20% more energy

- efficient than the Maine Uniform Building and Energy Code requires.

The g uidelines help achieve savings on both electric and fossil fuel usage, without the e xpense and complexity of sophisticated computer

- based modeling. The guideline s promote the use of cost

effective, off

- the

- shelf building technologies, which have been proven to reduce energy usage and improve building performance.

To be eligible for progr am participation the project must involve a new building or the substantial renovati on of a commercial, institutional, or industrial building, or the expansion of an existing building. Major renovations usually consist of significant rework to the interior layout and finishes, changes to the exterior envelope, and/or the replacement of mechanical and electrical systems.

FY11 Activities: This program has been ramping up over FY11 and currently has 11 projects under construction. These projects will be compl eted over the next few months and full program results will be reported in FY12. Key activities included:

**•** 8 presentations conducted for architects and engineers promoting the program, each presentation eligible for continuing education credit;

**•** All projec ts received on

- site monitoring and technical support

.
FY11 Results: Main deliverables of the program in FY11 were:

**•** Four new construction projects completed cov er ing 180,000 sq.ft. ;

**•** Eleven projects under construction ;

**•** FY11 program effor ts will be more fully realized in FY12 which should yield a positive impact on the benefit to cost ratio

.
Table 9

– Commercial New Construction Program Results
Total Participants Total Projects Lifetime Energy Savings (MMBTU) Efficiency Maine Costs Participant Costs Lifet ime Energy Benefit Benefit

- to

- Cost Ratio

4 4 9,481 $ 244 , 022 $ 91,388 $ 231,934 0. 7419 FY12 Plans : The Commercial New Construction strategy and activities planned for FY12 are the same as in FY11. The budget for the program in FY12 appears in Appendix C.



## RETRO

- COMMISSI ON ING PILOT PROGRAM

Purpose: This ARRA funded pilot program was launched in April 2010 to determine whether measurable energy savings could be achieved by offer ing building owners the opportunity to improve the efficiency of their building operations through a “tune

- up” of their existing building energy systems.

Through this program , Efficiency Maine offered participants a cost share of up to 50% for engineering

s tudies to determine i f systems were working properl y. When savings opportunities were identified, the participant and Efficiency Maine shared the cost of adjusting the energy management system and resulting energy savings were measured

.

The overall objec tives of the pilot program include the following

**•** Demonstrate the validity of re tro

- commissioning as a viable energy saving measure by implementing re

- commission ing at 29 buildings;

**•** Improve the ability of building operations staff to identify wasteful energy use;

**•** Ensure savings created persist over the expected lifetime ;

**•** Ensure quality control to the building owner from a well

- delivered re tro

- commissioning process ;

**•** Provide insight to aid in developing a full

- scale re tro

- commissioning program.

FY11 Acti vities: The main activit ies of the program were:

FY11 Results: This program has been ramping up over FY11 , with new projects underway as the year ended. More complete results will be reported in FY12. Progress at the end of FY11 is reflected in Table 10

.
Table 10

– Retro

- Commissioning Results
Total Participants Total Projects Lifetime Energy Savings ( MMBTU ) Efficiency Maine Costs Participant Costs Lifetime Energy Benefit Benefit

- to

Cost Ratio

29 29 119,541 $ 343 , 422 $ 416,682 $ 2,303,433 3.0 3

FY12 Plans : The Retro

- Commissioning Program strategy and activities planned for FY12 are the same as in FY11. The budget for the program in FY12 appears in Appendix C.20 

## SMALL BUSINESS ENERGY AUDIT PROGRAM

Purpose: Efficiency Maine’s Small Business Energy Audit program offer s Maine’s small businesses the chance to evaluate their energy

- efficiency opportunities. High up

- front costs, limitations on time and knowledge, and limited access to capital are particularly difficult barriers for small business customers. The objectives of an energy audit are to identify and develop modifications that will reduce the energy use and/or cost of operating a building. E nergy audits should provide the owner/operator with suffici ent information to determine the best opportunities to reduce the build ing’s energy use and/or cost and a general sense of how the savings will compare to the cost.

In FY11, t he Efficiency Maine Small Business Energy Audit Program was open to commercial, n on

- profit and manufacturing facilities located in Maine that meet energy use and facility type criteria and meet the following requirements:

**•** The business uses 25 kW per month or less OR

**•** uses 8,000 kWh per month or less OR

**•** spends $1,200 per month or less on electric bills AND

**•** the facility must be 1,000 square feet or larger

In FY11, the Audit Program offered three levels of audits:

**•** Level 1 audit

– W alk

- through analysis for facilities 1,000 to 4,999 sq. ft

**•** Level 2 audit

– Energy survey and analysis for facilities 5,000 to 9,999 sq. ft

**•** Level 3 audit

– Targeted scoping audit for facilities 10,000 to 50,000 sq. ft.

FY11 Results: The summary results of the Small Business Energy Audit Program in FY11 appear in Table 11

.

Table 11

– Small Business Energy Audit Program Results
Total Participants Total Audits Lifetime Energy Savings Efficiency Maine Costs Participant Costs Lifetime Energy Benefit Benefit

- to

- Cost Ratio 136 136 N/A $ 205, 288 N/A N/A N/A

FY12 Plans : The Small Business Program Energy Audit strategy and activities planned for FY12 are the same as in FY11. The budget for the program in FY12 appears in Appendix C.21 

## SMALL BUSINESS LOAN PROGRAM

Purpose: Efficiency Maine provides loans up to $35,000, currently at 1% interest for up to 5 years, to help small businesses finance approved energy conservation measures such as : electrical equipment including lighting, machinery, HVAC and refrigeration; heating equipment, regardless of fuel type; and insulation

. An energ y audit identifying recommended energy efficiency measures is required.

FY11 Activities : Efficiency Maine has arranged with the Finance Authority of Maine (FAME) to perform underwriting of loan applications.

FY11 Results: The summary results of the Small Business Loan Program are provided in Table 12

.

Table 12

– Small Business Loan Program Results
Total Participants Loan Value Lifetime Energy Savings Efficiency Maine Costs Participant Costs Lifetime Energy Benefit Benefit

- to

- Cost Ratio 20 new loans $537,000 N/A N/A N/A N/A N/A

FY12 Plans : The Small Business Loan Program strategy and activities planned for FY12 are the same as in FY11. The budget for the program in FY12 appears in Appendix C.



## ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT (EECBG) PROGRAM

Purpose: The U.S. Department of Energy (DOE) provided Efficiency Maine with $9.6 million under its State of Maine Energy Efficiency and Conservation Block Grant (EECBG). The DOE stipulated that at least 60% of the grant funds be passed through to municipal and county governments for energy

- efficiency improvements. In September 2009, Efficiency Maine formally requested applications from units of local and county government for energy

- efficiency and conservation projects. Applicants were advised to submit either a custom project application (capped at $85,000 for an individual municipality or $500,000 for regional projects) or a planning project pursuant to a template, (cap ped at $10,000). Custom projects were awarded on a competitive basis, while template planning projects were non

- competitive, but subject to available funding.

FY11 Activities: A total of $5,756,100 was set aside for program grants, which were to be disbursed in two rounds of request for applicants (RFAs). During the prior fiscal year (FY10) , Efficiency Maine completed the first round of grant awards for 49 custom projects and 3 4 template projects. Examples of the custom projects include: interior lighting, heating ventilation and air conditioning (HVAC)22 equipment, light emitting diode (LED) street lights, windows, wind turbines, solar thermal systems
, and insulating and air

- se aling building envelopes.
At the end of June 2010, statements of interest were received from eligible municipalities for the second round of EECBG funding. Through the summer of 2010 (during FY11) , Efficiency Maine awarded approximately $1.6 million to 47 municipalities for custom projects. In the RFA, Efficiency Maine explained that among other things: m unicipalities must provide a minimum 10% match (cash or in

- kind);
p reference would be given to municipalities that implemented template planning grants ( and thus were presumed to be working from a plan) ; and, municipalities would not be eligible if they had previously been awarded c ustom p rojects grants in the September 2010 RFA. Examples of eligible energy upgrade projects for funding under the RFA include d : interior and exterior lighting, occupancy sensors, insulation and air sealing building envelopes, replacing or retrofitting heating systems, g eothermal system, and street lights

.

FY 11 Result s : A list of grants made under this program is provi ded in Appendix F

. Summary information about the results of this program include:

**•** Awarded grants totaling $4.8 million to 83 municipalities;

**•** Completed 39 planning and custom energy saving projects :

o 12 of the completed projects were for developing community energy plans; and,

o 27 of the completed projects were for custom, energy efficiency m easures for municipal buildings;

**•** Estimated annual energy savings per project range from 6.25 million BTUs to 91 billion BTUs; and,

**•** Estimated annual electric savi ngs per project range from 221 kWh to 5.1 million MWh.

FY12 Plans : The EECBG Program strategy and activities planned for FY12 are the same as in FY11. The budget for the program in FY12 appears in Appendix C. It should be noted that no new funds are

av ailable for the kind of all

- fuels projects that were funded through this program, and that all existing funding has been committed and new project proposals are not being accepted. Program activities will focus primarily on oversight and payment as projec ts are completed.23 

## UNITIL NATURAL GAS PROGRAMS

Purpose: On July 1 , 2010 Efficiency Maine and Unitil Corporation entered into a contract in which Unitil agreed to continue delivering natural gas energy efficiency programs targeting Commercial and Industrial customers (as well as residential low

- income customers). This continuation of efficiency program services by Unitil allowed for a smooth transition f or Unitil’s C&I customers

.

FY11 Results: Summary information about the program participation, costs and energy savings appear in the annual report submitted by Unitil in Appendix J

.

FY12 Plans : The Natural Gas Program strategy and activities planned for FY12 are the same as in FY11, but the delivery channel will change. Efficiency Maine has assumed responsibility for all program delivery and is consolidating C&I program delivery into one deliver y team. The program budget in FY12 appears in Appendix C.24 

# RESIDENTIAL PROGRAMS

Through its Residential Programs, Efficiency Maine administers programs to increase efficient use of electricity and heating fuels in Maine homes . In some cases the program s are designed and implemented specifically for the benefit of low

- income customers, while other programs are designed for open access to all residential customers regardless of income. As with the Business Programs, above, this section of the Annual Repo rt describes the Residential Programs delivered in FY11 organized by the source of the funds used to pay for the programs. The first group of programs described below were paid out of funds generated by the System Benefit Charge (SBC) assessed on electric and natural gas utility customers or by the Regional Greenhouse Gas Initiative (RGGI). The second group of programs were paid out of funds received from the federal government, primarily through the American Recovery and Reinvestment Act (ARRA). Because the ARRA funds were a one

- time source of revenue, continuation of the ARRA

- funded programs is unlikely unless increased revenues are received or resources or shifted from other programs.



# SBC/RGGI

- Funded Residential Programs

The FY11 activities and results of Efficiency Maine Trust’s Residential Lighting Program, Energy Star Appliance Program, and the Low

- Income Appliance Replacement Program are described in this section.



## RESIDENTIAL LIGHTING PROGRAM

Purpose: Lighting accounts f or 5

- 10% of total energy use in the average American home and costs $50 to $150 per year in electricity (aceee.org). Compa ct fluorescent light bulbs (CFL s) use 75% less electricity for the same light output and last 6

- 10 times longer than trad itional inca ndescent bulbs. CFL s save enough in electricity that they pay for themselves in a matter of months. However, due to CFLs ’ higher initial cost and lack of consumer awareness, mos t people still buy incandescent bulbs

. Efficiency Maine’s Residential Lightin g Program works to overcome these barriers by collaborating with Energy Star lighting manufacturers and retailers to lower the price of CFLs and educate consumers on the benefits of efficient lighting. This program is used by customers of all income level s.

FY11 Activities: In FY11, the program reimburse d retailers for lowering their CFL prices. In addition, Efficiency Maine’s field team visits retailers throughout the state to educate retail staff and consumers. In a change from prior years, the FY11 i mplementation strategy reallocated all of the television advertising budget into further reducing the purchase price on store shelves, and the impact was25 signi ficant. During a time when CFL s lost market share nationally, Mainers pur chased nearly twice as many CFL s than in any prior year

– nearly enough to put 4 CFLs into every household in the state. The
program was able to do this while decreasing program costs per bulb compared to prior years

. Other activity specifics include:

**•** Negotiated Memoranda o f Understanding with lighting manufacturers and retailers representing more than 400 stores throughout the state ensuring that 100% of Efficiency Maine’s mark down dollars were passed on to consumers in the form of lower CFL prices (typically a $1.25 per C FL reduction) ;

**•** Conducting 136 in

- store demonstrations educating consumers and retail staff on the benefits of efficient lighting and appliances ;

**•** Completing 4,643 store visits verifying marked down lighting pricing, training store staff, encouraging off

- she lf merchandising and rest ocking coupons (as appropriate); and,

**•** Re

- purposing $500,000 television advertising budget t o increase markdowns making CFL s ’ initial cost lower than that of incandescent s and motivating retailers to invest in off

- shelf merchandisin g (floor displays, end cap displays, larger signs).

FY11 Results: The shift in strategy in FY11 resulted in unprecedented consumer purchases

. Summary results for the program were as follows:

Table 13

– Residential Lighting Program Results
Total Participants Total Units Lifetime kWh Savings Efficiency Maine Costs Participant Costs Lifetime Energy Benefit Benefit

- to

- Cost Ratio N/A Approx 1.9 million CFLs 614,388,191 $ 4,0 39 , 443 $6,534,669 $46,745,171 4.4 2

FY12 Plans : The Residential Lighting Program strategy and activities planned for FY12 are the same as in FY11. The budget for the program in FY12 appears in Appendix C.



## ENERGY STAR APPLIANCE PROGRAM

Purpose: Efficiency Maine worked with appliance retailers throughout the state to educate sales staff on the benefits of Energy Star appliances and offer rebates for customer purchases of new, qualified units . The $25

- 50 rebates function as a prompt for consumers to ask why a particular appliance qualifies while others do not, which creates an opportunity for sales staff to explain the long

- term financial benefits of efficient appliances.26 Advances in residential appliance technology give homeowners the opportunity to save significant amounts of energy and water when they are in the market to pu rchase a new unit . Energy Star clothes washers , for example , consume about 37% less energy and 50% less water than regular washers saving consumers about $135 per year on utilities. Likewise, an Energy Star refrigerator use s 20% less than a

non

- Energy Sta r unit and save s $100 per y ea r compared to a 1980’s refrigerator. Energy Star dehumidifiers use 15% less energy than a conventional one and can save users $20 per yea r

. 7

FY11 Activities: A summary of the residential Appliance Program activities includes: It is often the case that consumers make appliance purchasing decisions without unde rstanding the energy cost implications.

**•** Worked with retailers representing nearly 200 stores statewide to distribute rebate forms to customers who buy Energy Star refrigerators, clothes washers and dehumidifiers ;

**•** Issued r ebates rang ing from $25 per dehumidifier to as much as $75 per refrigerator or clothes washer ( which amount was reduced to $50 per unit for the second phase of the program) ;

**•** 136 in

- store demonstrati ons educating consumers and retail staff on the benefits of ef ficient appliances and lighting; and,

**•** 979 store visits to label ENERGY STAR appliances, install/restore signs, train store staff, and restock
coupons.

FY11 Results: This was Efficiency Maine’s second year rebating Energy Star appliances . The program was highly successful. Mainers purchased more than 24,000 energy efficient refrigerators, clothes washers and dehumidifiers saving millions of dollars through avoided energy costs

. Summary results are as follows:

Table 14

– Residential Energy Star Appliance Program Results
Total Participants Total Units Lifetime kWh Savings Efficiency Maine Costs Participant Costs Lifetime Energy Benefit Benefit

- to

- Cost Ratio N/A 24,056 39 , 036 , 19 0 $ 1,5 33 ,02 2 $1,415,947 $4,391,481 1. 49

FY12 Plans : The Energy Star Appliance Program strategy and activities planned for FY12 are the same as in FY11. The budget for the program in FY12 appears in Appendix C.

7 See, www.energystar.gov

.27 

## LOW INCOME APPLIANCE REPLACEMENT PROGRAM

Purpose: The purpose of this program is to improve efficient use of electricity in low

- income eligible homes in Maine, and to satisfy the statutory requirement that at least 20% of the base level system benefit charge on electricity be used for the benefi t of low income customers

.

FY11 Activities: As in prior years, t he Low Income Appliance Replacement Program in FY11 was implemented through a Memorandum of Understanding with MaineHousing which administered this program through Maine’s Community Action Programs (CAPs). Through on

- site visits, the CAPs monitor refrigerators and freezers in Low Income Home Energy Assistance Program

- eligible homes and replace them for free with high

- efficiency refrigerators if the old units are found to be highly inefficie nt. Free CFL s are also installed where approved . Residents are given information on how to save energy as part of the visits.

FY11 Results: Table 15

– Low Income Appliance Replacement Program Results
Total Participants Total Units Lif etime kWh Savings Efficiency Maine Costs Participant Costs Lifetime Energy Benefit Benefit

- to

Cost Ratio 585 homes visited 534 refrigerators, 6,761 CFL s 5,972,672 $ 3 25 ,51 5 $0 $465,922 1. 43

FY12 Plans : The Low Income Appliance Replacement Program strategy and activities planned for FY12 are under review for likely alteration from the FY11 strategy and activities. In order to more directly assist low income customers in reducing their heating costs, the Trust is proposing for the remainder of FY12 to shift to a strategy of weatherizing homes of LIHEAP customers who use electric heat. The budget for the program in FY12 appears in Appendix C.



## ARRA

- Funded Residential Programs

The FY11 activities and results of Efficiency Maine Trust’s Home Energy Savings Progr am, Natural Gas Program, Heating Equipment Replacement Program, BetterBuildings (PACE Loan) Program, are described in this section.28 

## HOME ENERGY SAVINGS PROGRAM

Purpose: This program was designed to raise awareness about the benefits of home weatherization and promote customers to implement efficiency upgrades that would save at least 25 % of their home heating use

.

Maine has some of the oldest housing stock in the country . It is a cold climate, and Maine is more dependent on oil to provide residential heat ing than any state in the country. This makes Maine vulnerable to fluctuations in oil prices. Using a portion of ARRA funds received in 2009, Efficiency Maine invested in piloting a whole

- house weatheriz ation program called the Home Energy Savings Program.

In May 2011, Efficiency Maine contracted with The Cadmus Group, Inc. to conduct an evaluation of the HESP program . The evaluation, which will be completed by the end of 2011 , focuses on quantifying and verifying the energy savings achieved by the HESP participants who completed energy audits under the program from December 1, 2009, through December 31, 2010. Methods used in the evaluation of program impacts include site visits to measure and verify proje ct installations, engineering and simulation modeling, and statistical billing analysis. The evaluation will report on program impacts in terms of: energy and demand savings, renewable energy installation, associated greenhouse gas emission reductions, jo b creation and cost

- effectiveness. The evaluation also includes a telephone survey of 100 participants to examine customer motivations, barriers, and experiences.

FY11 Activities: Program funding was fully committed by the end of FY11 , and the results cl early demonstrate d that whole house energy efficiency programs are cost

- effective and scalable. Activities for this program included:

**•** Offering rebates to homeowners who upgraded the energy efficiency of their home following an energy audit:

o 30% rebate of job cost , up to a maximum of $1,500
, for a project achieving at least 25% energy efficiency improvement ;

o 50% rebate of a job cost , up to maximum of $3,000
, for a project achieving at least 50% energy efficiency improvement;

o A time

- limited bonus of $1,000 w as also available for a portion of the year to attract interest to the program;

**•** Dr iving awareness of the benefits of home weatherization and driving demand for home energy upgrades through: TV ads & public service announcements, radio ads and interviews, p rint advertising, PR articles, web ads, website, direct mail, phone campaigns, trade shows, trade29 associations, collaboration with non

- governmental organizations and community groups , speaking engagements, and fairs;

**•** Developing nationally

- recognized weathe rization sales training for Participating Energy Advisors (who conducted the requisite home energy audit); and,

**•** Recruiting and training 100 new Participating Energy Advisors.

FY11 Results: Following the guidance of the program, nearly 5,000 Maine homes re ceived energy audits through the HESP program

. Subsequent to those audits, t housands of homeowners were able to upgrade their homes and are now saving the equivalent of over one million gallons of oil per year. Homeowners also report having fewer drafts, ice dams and frozen pipes. The average home that participated in this program is projected to sav e 40% on energy , or more than $1,400 per year assuming average oil consumption and prices as of 2011

. After factoring in the total cost of the upgrades ( the incentive from Efficiency Maine , the homeowner payments for the energy upgrades, and program delivery), the cost of the energy that will be saved over 20 years is equivalent to $1.16/gallon of heating fuel.

As a start

- up program, less than 75 projects we re completed by July 1, 2010 when the Trust’s FY11 began. On May 26, 2011, the program had received enough home retrofit rebate reservations to commit all of its budget . At that time the program closed its doors to any new participants. By September 30, 2011, three months after the end of FY11, the Trust accepted its last project completions and awarded its last incentives. To provide a comprehensive picture of the project over its full period of activity, this Annual Report presents results of the full period from January 1, 2010 to September 30, 2011.
The combined economic activity in the home builder / supplier / contractor trades generated by this program is estimated at more than $28 million. Summary energy saving benefits and costs are in Table 16

.

Table 16

– Home Energy Savings Program Results ( 1/1/10

- 9/30/11 )
Total Units Lifetime Energy Savings (MMBTU) Efficiency Maine Costs Participant Cost Lifetime Energy Benefit Benefit

To

- Cost

Ratio

3127 4,820 , 173 $ 8,588,496 $2 0,368,825 $ 101,335,965 3

. 50

FY12 Plans : The Home Energy Savings Program strategy and activities planned for FY12 are the same as in FY11. The budget for the program in FY12 appears in Appendix C. It should be noted that federal funds for this program have been exhausted and no f urther rebates are being offered. The Trust’s main program strategy in FY12 for home energy retrofits is to direct homeowners to the PACE loan program.30 

## HOME ENERGY SAVINGS PROGRAM ( for Natural Gas Customers )

Historically, Unitil Corporation (formerly Nor thern Utilities) administered its own energ y efficiency programs. In FY 11, Efficiency Maine and Unitil agreed to invest the natural gas efficiency funds into Efficiency Maine’s Home Energy Savings Program (described above)
, targeted specifically to Unitil’s customers. This took the form of a n increase in the incentive cap for Unitil customers.

Tier Eligible Projects Statewide Rebate Unitil Customer Rebate 1 Reduce heating costs by 25% 30% of job cost up to $1,500 30% of job cost up to $6,500 2 Reduce heating costs by 50% 50% of job cost up to $3,000 50% of job cost up to $8,000

By “piggybacking” the administration and delivery of the natural gas program onto another program (HESP) , all of the funds were available to be used in the form of fina ncial incentives for the natural gas customer s . The results ( which are included as part of the Home Energy Savings Program numbers above) were as follows:

Table 17

- FY11 Natural Gas HESP Program Results Total Participants Total Units Lifetime Savings (20 yr life) Efficiency Maine Costs Participant Costs Lifetime Energy Benefit Benefit

- to

Cost Ratio

206 206 16,115MMbtu/yr (46%) 322, 300MMbtu $367,000 ( SBC ) $1,027,324 ( ARRA ) $1,394,324 T otal $1,561,953 $8 ,100,000 2.7

FY12 Plans : The Natural Gas HESP Program strategy and activities planned for FY12 were the same as in FY11 for the first half of the year, but for the second half of the year a new prescriptive menu of weatherization incentives for this program will be offered to natu ral gas heating customers through the Residential Direct Install component of the ARRA BetterBuildings Grant . The budget for the program in FY12 appears in Appendix C under Residential Direct Install

.31 

## REPLACEMENT HEATING EQUIPMENT PROGRAM

Purpose: Funded by a grant from the U.S. Department of Energy, this fuel

- neutral program offered rebates from $100 to $500 for energy efficient boilers, furnaces, water heaters and air conditioners. The goal was to encourage homeowners faced with heating equipme nt failure to purchase the most energy efficient replacement for multiple fuel types

.

FY11 Activities:

**•** Worked with retail stores to promote in

- store purchases , supplying training, point

- of

- sale signs, brochures and rebate forms ;

**•** Collaborated with HVAC pr ofessionals to promote the program to homeowners ;

**•** Designed the Efficiency Maine website to describe the program, enable customers to make on

line reservations and download rebate claim forms ;

**•** Maintained the web site with updates about outstanding fund bal ance , providing notice to all consumers and vendors when the limited funds were fully committed

.
FY11 Results:

From June 2010 to June 2011 , more than 1,500 homeowners selected energy efficient heating system components , encouraged by their installers and the incentives provided by the Efficiency Maine
program

. Total number of units of efficient heating appliances installed achieved 99% of Efficiency Maine’s goal. I nstallers also gained experience with new technology as an increasing number of
custome rs started to ask about heating system efficiency. The energy saved over the full life of the installed measures is estimated to be the equivalent of 1.7 million gallons of heating oil.

Table 18

– Replacement Heating Equipment Program Results
Total Partic ipants Total Units Lifetime Savings (MMBTUs) Efficiency Maine Costs Participant Costs Lifetime Energy Benefit Benefit

- to

Cost Ratio

1546 1546 179,825 $ 1,20 7 , 895 $ 456,127 $ 2,235,866 1.34

FY12 Plans : The Replacement Heating Equipment Program strategy and activities planned for FY12 are the same as in FY11. The budget for the program in FY12 appears in Appendix C. It should be noted that the federal money used to fund this budget were exhausted in ear ly FY12.32 

## ARRA “ BetterBuildings ” Grant

Purpose: The purpose of Efficiency Maine’s project under the ARRA BetterBuildings grant is to sustain delivery of home energy savings by introducing attractive and accessible financing for energy upgrades to Maine homeowners.

This multi

- faceted project is designed to address several major hurdles that home energy efficiency and weatherizat ion programs have faced in Maine and elsewhere in the U.S. The project objectives are:

1. Financing: Launch and implement a variety of financing products, including Maine PACE loans, to provide financing for residential retrofits statewide.

2. Home Retrofits: R etrofit efficiency and weatherization improvements in 1,500 homes per year for 12 years, in addition to the retrofits already offered in our existing programs, with retrofits resulting in an average of 25% energy savings per home.

3. Sustainability: Sustain funding over 10 years beyond the grant period to support home retrofits by establishing track record of program performance based on gathering and aggregating data that will prove the value of weatherization and attract investors who will support the progr am beyond the grant period.

4. Scalability and Replicability: Develop best practices and share guidance with other jurisdictions on how to develop, deliver and document a residential retrofit program that is carbon market ready and private investment ready.

FY11 Activities:

PACE Loan Program

Efficiency Maine conducted two public hearing s on proposed draft rules for the implementation of the Maine PACE L oan program, consistent with the Maine PACE Act passed earlier in the year by the state legislature. Prov isions of the regulation related to underwriting standards, consumer disclosure, quality assurance, terms and conditions received input from key stakeholders including the Maine Bankers Association, Maine Credit Union League, unions, and municipalities, am ong others

.

As required by the Maine PACE Act, municipalities wishing to make PACE loans available to homeowners in their jurisdiction have the authority to opt in to the program to establish or participate in a PACE program. To opt in, municipalities ar e asked to adopt a local PACE ordinance, establish a contract with Efficiency Maine regarding administrative roles and responsibilities, and commit to provide education and community outreach regarding residential energy efficiency retrofit programs availa ble to citizens.33 The Trust provided municipalities with two versions of a PACE model ordinance for their consideration. Version 1 provides for self

- administration. Version 2 provides for PACE program administration by the Trust.

An important part of the p roject is outreach and engagement with municipalities and community organizations across t he State. Additionally, Trust s taff held direct conversations with Maine’s lending institutions, realtors, labor unions, and environmental groups to collect feedback on details of the proposed rules.

The Trust also invested considerable time and effort during the year to design the administrative process and structure for issuing and servicing loans. Despite an open competitive solicitation process and repeated conv ersations with financial institutions, the Trust was unable to find a service provider in Maine to tackle this unique and unprecedented assignment. In the end, the Trust contracted with AFC First, a company with experience issuing and servicing small resi dential energy loans in several other states. As the “master servicer,” this contractor provides all “ back

- office ” administrative operations for the loans funded out of the BetterBuildings grant. The master servicer is responsible for running a call
cent er for inquiries about the Maine PACE program, conducting loan origination, researching applicant information for meeting underwriting standards, packaging closing documents, providing closing services, and recording PACE agreements in the registry of deed s. The master servicer is also responsible for loan servicing, managing delinquency, discharging PACE mortgages, and providing statistical data reporting.

During the year the Trust worked to develop education and outreach materials for distribution to tow ns and their residents about the process for receiving a PACE loan. The Trust established a webpage of
resources at www.efficiencymaine.com/PACE that includes Model Ordinances that municipalities can use to opt into the PACE Program, background information on the PACE law and the revolving loan program, and FAQs providing some basic answers to what PACE is and how it will work in Maine. The website also links interested customers to an online calculator tool that helps estimate if energy upgrades would be a worthwhile investment at a given home, a searchable database of all energy auditors in the st ate who are certified by the Building Performance Institute (BPI), and case studies of other Maine residents who have recently weatherized their homes.

BetterBuildings Sub

- Grantee Activities

Two organizations joined Efficiency Maine in developing a winning submission to the US DOE for the competitive solicitation for funding under the BetterBuildings Program.34 T he first sub

- grantee in the project is MaineHousing, who proposed two initiatives related to home weatherization. MaineHousing had been working to establish an independently validated methodology for calculating avoided carbon emissions specific to weatherization of single and multi

- family units. The methodology is now accredited under the globally recognized Voluntary Carbon Standard , and is desig ned to be made available for adoption by other weatherization programs across the country.

MaineHousing’s project includes preparing the workforce for the collection of carbon data, testing different approaches for ease and cost

- effectiveness, and ensurin g that energy auditors are trained to collect data and test the different approaches listed in the methodology ensuring that carbon related data from the low income Weatherization Assistance Program and other weatherization programs are market ready.

The project is working to create a step

- by

- step guidance document about carbon savings quantification which it has now used to prepare for and sell carbon savings from weatherization in order to leverage private dollars.

In a related initiative, MaineHousing worked this year to develop a data repository as a central database to store all energy conservation and renewable energy data used in conservation programs. The design is intended to allow participating systems to interface with the data repository, both contributing data for combined analysis and reporting, and retrieving data to support business operations.

The second sub

- grantee in the BetterBuildings proposal was the non

- profit Maine Green Energy Alliance (MGEA). MGEA’s initiative was designed to pi lot innovative marketing and community outreach strategies for promoting market

- based home weatherization in eight communities. MGEA partnered with pre

- existing community groups to raise awareness about the benefits of home weatherization and the availabi lity of incentives through Efficiency Maine’s HESP program. After six months of operation, MGEA and the Trust mutually agreed that results of the pilot were not meeting expectations and the initiative was discontinued. The funds that had been originally budgeted for the MGEA project were re

purposed and used for payment of rebates for customers completing home energy upgrades and for promotion of the PACE loan program

.

FY 11 Results : FY11 was a period for creating the foundation of a multi

- year loan progr am. Efficiency Maine had initially hoped to launch the loan program mid

- way through FY11. In the event, it proved more important to take the time necessary to properly establish the rules and program design of the program, enlist collaboration of municip alities, and to contract for the necessary loan servicing and marketing services. Establishing the program rules through a formal regulatory process slowed the progress of the program’s implementation. On top of this, the extended process of contracting for a Master Servicer resulted in pushing the kick

- off of this project into April 2011 instead of fall of 2010 as had been anticipated. As a result, by the end of the fiscal year (June 30), minimal loan activity had35 occurred. As of the time of writing th is annual report, more than 100 municipalities

– constituting well more than half of the state’s population, have opted in to the PACE program. M ore than 100 homeowners have taken out loans worth more than $1.2 million to finance home energy upgrades , and the rate of uptake was rising as the program moved into FY12

.

FY12 Plans : The ARRA BetterBuildings Grant Program strategy and activities planned for FY12 are the same as in FY11, except as noted above. The budget for the program in FY12 appears in Appendix C.



## Low

- income Weatherization Assistance Program (WAP)

Maine State Housing Authority is the designated administrator of the Weatherization Assistance Program that provides grants to low

- income homeowners and renters to reduce energy costs. This program is funded with federal funds . Weatherization improvements may include insulation, weather

str ipping, caulking, and some safety

- related repairs. MaineHousing offers this program to consumers through Community Action Program agencies who screen people for eligibility as part of the Low

Income Home Energy Assistance Program (LIHEAP) application proc ess. Up to 15% of MaineHousing’s LIHEAP budget may also be spent on weatherization. The Efficiency Maine authorizing statute requires the Trust to report on activities of the WAP in the annual report.

Table 19

– Weatherization Assistance Program Results

GRANT PERIOD PRODUCTION BUDGET PRODUCTION EXPENSES UNITS

ARRA 4/1/2009-3/31/2012 $32,071,307 $28,580,896 5,049 DOE 2009 Regular 1/1/2009-3/31/2012 $3,279,552 $3,279,552 505 DOE 2010 Regular 4/1/2010-3/31/2012 $1,631,600 $1,631,600 326 SERC (ARRA) 1/1/2011-3/31/2012 $5,569,639 $237,060 21 DOE 2011 Regular 4/1/2011-3/31/2012 $1,700,901 $224,219 71 2010 LIHEAP Wx 10/1/2009-9/30/2010 $3,414,820 $3,414,820 789 2011 LIHEAP Wx 10/1/2010-9/30/2011 $5,536,767 $5,536,767 917 2012 LIHEAP Wx 10/1/2011-9/30/2012 $0 Total $53,204,586 $42,904,914 7,678 Total funds received/expended by MaineHousing on Weatherization Production (includes amounts from LIHEAP spent on weatherization)36 

# ALTERNATIVE ENERGY PROGRAMS

Through its Alternative Energy Programs, Efficiency Maine administers a wide variety of offer ings for business, institutional and residential customers. This section of the Annual Report describes the Alternative Energy Programs delivered in FY11. Unlike prior sections of the report, this section is not organized by the source of the funds used to pay for the programs.

Anothe r point to note is that while the Trust operates under a general directive to ensure that all programs meet a stringent cost

- effectiveness test based on energy savings , the alternative energy programs inherited by the Trust at the beginning of FY11 had nev er been subject to, and had not been operated in such a way as to meet the same stringent test. The electric SBC

- funded Solar/Wind Rebate
program was a statutorily mandated program for Efficiency Maine to operate, but the statutory authority made no menti on of meeting a cost

- effectiveness standard. The Renewable Resource Fund was also a statutorily mandated program that directed Efficiency Maine to promote “research and development” and “demonstration projects” of emerging technologies, activities which a re known to rarely be cost

- effective in terms of avoided energy costs, yet may serve a valuable public policy purpose.



## SOLAR/WIND REBATE PROGRAM

The Solar/ Wind Rebate P rogram was funded with ARRA funds in the second half of FY2011 . The shift in funding source emerged due to the expiration of the statutory authorization to use funds previously collected through an SBC for the Solar/W ind R ebate P rogram that was in effect until December 31, 2010. Maintaining rebates at prior levels through the second half o f FY2011 was critical to minimize disruption to the renewable energy related businesses and jobs that have developed in the past six years of rebate availability.

With new program guidance from the Legislature, Efficiency Maine is undertaking a rule making process in December 2011 to develop the new approach to incentiviz e cost

- effective alternative energy installations in future years. The new incentive program will also incorporate quality assurance systems to ensure best practices for installations in the state for long

- term system operation and maximized fiscal return for program participants.

FY11 Activities: The Trust administered a rebate program for solar thermal, solar PV, and small wind projects that met established criteria for project eligi bi lity. In all cases, these are for limited size systems that are on the “customer’s side of the meter.” This means they are helping the customer offset their consumption of power from the grid, and that the systems are not sized or intended for commercial generation of electricity for sale onto the grid.37 FY11 Results: The rebate program assisted Maine customers in installing a total of 371 alternative energy systems in FY11.

**•** Solar thermal installations

– 245

**•** Solar PV installations

– 116

**•** Small wind installations

– 10

If the Trust were a utility providing all energy needs of its customers, it might apply the “Utility Cost Test” to evaluate cost

- effectiveness. This test only compares the program cost s of Efficiency Maine Trust with the valu e of the energy saved. It would not take account of the customer’s contribution to the project cost (which is very high with these projects) nor any federal subsidies such as tax credits. While approximate, the Trust estimates that solar thermal projects would satisfy this cost

- effectiveness test in 5.2 years of operation, while the solar PV projects would satisfy the test after 4.1 years and the wind projects would satisfy the test after 12 years of operation. In the event, the Trust has also run its

mo re stringent Total Resource Cost test which generates the Benefit

- to

- Cost ratio in Table 20 below.

Table 20

– Solar/Wind Rebate Program Results Total Participants Total Projects Lifetime Energy Savings (MMBTU) Efficiency Maine Costs Participant Costs Lifetime Energy Benefit Benefit

- to

Cost Ratio

371 371 80,595 $ 571, 528 $ 4,765,571 $ 1, 583,307 0.30

FY12 Plans : The Solar/Wind Rebate Program strategy and activities planned for the first half of FY12 will be the same as in FY11. In the second half of the year, the program strategy will be determined by the pending rulemaking. Incentives are expected to remain a primary tool for promoting installation of
customer

- sited renewable systems, but a new approach to screening for cost

- effectiveness is likely to cause a shift in the type and quantity of technologies that are installed. The budget for the program in FY12 appears in Appendix C.



## Renewable Resource Fund ARRA Supplement

On May 25 , 2010 , prior to the Trust taking over respon sibility of the p rograms of Efficiency Maine , a Request for Proposals ( RFP ) for Renewable Energy Demonstration Projects using ARRA funding was issued

. The RFP was structured similarly to past RFP’s using funding from the Vo luntary Renewable Resource Fund, seeking proposals for community demonstration projects involving renewable energy technologies

. Because of the availability of ARRA funding , the RFP’s scope was expanded to allow uses38 of the funds for: feasibility studies for renewable power installations, thermal measures and renewable source of power including fuel cells, tidal power, solar photovoltaic arrays, solar thermal installations, wind, geothermal, hydro power, bi omass, or municipal solid waste

- to

- energy (in conjunction with recycli ng )

. As prescribed in state statute in effect during FY11, t he following entities were eligible for funding : University of Maine System ; Maine Maritime Academy; Maine Community College System; Maine

- based nonprofit organizations that qualify under the fed eral Internal Revenue Code , Section 501(c)(3);

c onsumer

- owned transmiss ion and distribution utilities; c ommunit y

- based nonprofit organizations;

c ommunity action programs; municipalities; q uasi

- municipal corporations or districts as defined in Title 30

- A, section 2351 ; c ommunity

- based renewable energy projects as defined in Title 35A, section 3602, subsection 1; and s chool administrative units as defined in Title 20

- A

. On September 21, 2010, the Trust awarded ten projects under the RFP

.

FY11 Activities:

**•** Awarded 10 grants to eligible projects. Examples of projects funded include: wood pellet boiler systems and stoves; photovoltaic systems; restoration of a hydro facility; and demonstration of a geothermal system.

**•** Negotiated and monitored ten grants.

FY11 Results : Due to the nature of these projects, including that the federal funds were primarily aimed at promoting demonstration projects, there were no expectations of high energy savings levels or benefit

- to

- cost criteria. Moreover, several of the p rojects were feasibility studies that generate no immediate energy savings or displacement. As such, the Trust does not have aggregate energy savings data and parts of the results table, below, indicate that the data is N/A.

Table 2 1

– Renewable Resource Program Demonstration Project Results

Total Participants Total Projects Lifetime Energy Savings Efficiency Maine Costs Participant Costs Lifetime Energy Benefit Benefit

- to

- Cost Ratio 10 10 N/A $ 429,064 $ 137,390 N/A N/A

FY12 Plans : The Renewable Resources Program strategy and activities planned for the first half of FY12 will be the same as in FY11. In the second half of the year, the program strategy will be determined by the pending rulemaking (as with the Solar/Wind Rebate Progra m). The two funding streams are being merged together. The budget for the program in FY12 appears in Appendix C.39 

## Wind Anemometer Program

Purpose: Efficiency Maine utilized a portion of the American Recovery and Reinvestment Act (ARRA) State Energy Program (SEP) grant funds and United State s Department of Agriculture (USDA) Renewable Development Assistance Grant (REDA) for the Wind Anemometer Program. In August 2010, Efficiency Maine contracted with Unity College to assist in meeting the following o bjectives of the program:

1. P rovide education and outreach to farmers and rural small businesses interested in farm and/or community

- based wind energy applications;

2. Offer strategically sited anemometer set

- ups and data analysis to qualified farms and small businesses to assist in identifying appropriate wind resources; and,

3. Apply the anemometer data to improve the Maine wind map to facilitate accurate wind resource mapping in Maine.

FY11 ACTIVITIES : Unity College, with assistance from Maine Rural Partners, completed the publicized anemometer application process, screening farm and rural small business

- owned sites for suitability of anemometer test sites. F ifteen site applications were reviewed, screened for eligibility and public wind data set needs , and t he two best potential sites were selected

. Unity College and its crew installed anemometer towers at the Brigeen/Bullard Farm in Turner and at Sherbourne Farm in Dexter.

The first year of data from a site in Mercer was analyzed, together with output from public data sets contributed by the University of Maine and Fox Islands Cooperative. The data suggest that the wind shear factor in Maine is far greater than had been realized, research being collaborated with similar findings in the M id w est. This is a very important discovery, as it explains higher wind noises than had been modeled by developers and begs consideration of higher towers, even for smaller turbines.

The final year of the grant (with 1 year of data from the Turner and Dexter locations and a 2nd year at the Mercer location gathered and analyzed with other available data) will enable Unity College and collaborating anemometrists to provide confirmation of this apparent finding, which may have far

reaching implications for the furtherance of w ind power applications in Maine and elsewhere.

Unity College and Maine Rural Partners will work with each of the pilot farms during the coming year to explore business models that might enable turbines to be erected if desired.40 FY11 Results:

**•** 15 proposed, wind anemometer test site applications were received; and,

**•** Utilizing a screening process, 2 test sites, Brigeen/Bullard Farm in Turner and Sherbourne Farm in Dexter, were selected.

FY12 Plans: The Wind Anemometer Program strategy and activities for FY12 will be the same as in FY11. It should be noted that federal funds for this program have been exhausted and no new site applications are being accepted. The activities for FY12 will consist of oversight and payment of prior commitments. The bu dget for the program in FY12 appears in Appendix C.41 

# ENABLING STRATEGIES

EDUCATION AND AWARENESS

Efficiency Maine’s education and training programs influence all age groups and market sectors in Maine. Through this work, Efficiency Maine reinforces message s about the benefits of energy efficiency for people of all ages. Efficiency Maine is increasingly emphasizing it s determination to measure the value and impact of education and awar eness programs. Examples of advances in this area include :

**•** Measurement of energy saving outcomes from training, as with the Builder Operator Certifi cation (BOC); and

**•** Assessing the energy saving results from behavior changes promoted through educational programs as with the Schools for Energy Efficiency Program (S EE)

.

Power Sleuth

The Power Sleuth program was funded with SBC and RGGI funds in FY11. The fourth and final module of the Power Sleuth Energy Education Curriculum, titled Maine Saves Energy , was completed in a companion project with the Maine Math and Sci ence Alliance. The Power Sleuth curriculum developed standards

- based curriculum materials and a web site for grades 4

- 8. The lessons are research

- informed and aligned with the 2007 Maine Learning Results: Parameters for Essential Instruction . These four modules are available to teachers free of charge, and this year alone more than 800 modules have been downloaded from the Power Sleuth web site.

The curriculum has received statewide and national praise, including:

**•** P resented at the National Science Teache rs Association conference

**•** Presented at the Maine Science Teachers Association statewide conference

**•** P resented in a statewide virtual conference for educators

**•** Lawrence Berkley National Labs requested development of six lesson plans, based upon their favorabl e review of Power Sleuth42 **•** The State of Montana is utilizing Power Sleuth for teacher in

- service training

**•** U Maine Farmington uses Power Sleuth in graduate training (EDU 523)

Maine Energy Education Program (MEEP)

The Maine Energy Education Program brings a selection of 18 different educational programs to schools in every Maine county. In Aroostook County, the program is named Be Energy Wise Program, or “ BEEP, ” and is offered in schools and communities. In FY11 the program was funded with a blend of SBC funds plus $30,000 of State Energy Program funds from the Governor’s Office of Energy Independence and Security (OEIS). The programs encourage active participation and each event is supported by consistent student/faculty follow

- up. Examples of pr ogram topics include:

* E lectricity and the Environment * Great Energy Debate

* Kill

- A

- Watt Challenge * Global Energy Game

* Jr. Solar Sprint * Kid Wind

* Energy Patrols (BEEP) * Energy/Environment/Economics (BEEP)

This year, MEEP/BEEP reached more than 12,000 students and involved more than 750 teachers in 590 workshops and community events across Maine.

Memberships/Sponsorships

CEE: The Consortium for Energy Efficiency (CEE), a nonprofit public benefits corporat ion, develops initiatives for its North American members to promote the manufacture and purchase of energy

efficient products and services. CEE’s goal is to induce lasting structural and behavioral changes in the marketplace, resulting in the increased ad option of energy

- efficient technologies. CEE’s membership comprises energy efficiency program administrators like Efficiency Maine from around the country

. CEE prepares national studies, conducts workshops and performs analysis to help energy efficiency program administrators perform their duties more effectively and efficiently . Efficiency Maine’s membership dues for 2011 were $14,200.

NEEP EM&V FORUM: Launched in 2008, the Evaluation, Measurement, & Verification (EM& V) Forum is a project facilitated by Northeast Energy Efficiency Partnership ( NEEP ). The pur pose of the EM&V Forum is to support the development and use of consistent protocols t o evaluate, measure, verify, and report the savings, costs, and emission impacts of energy efficiency and other demand

- side resources.43 The Forum's activities are directed by a Three

- Year Plan (2009

- 2011) guided by the Forum Project Committees , and ultimately recommended by the Forum Steering Committee and the NEEP Board of Directors. Efficiency Maine supported funding for NEEP 2011 activities in the amount of $33,833.

Maine Green Schools Program

Efficiency Maine partners with fellow state agencies whenever possible. One exam ple of this effort is the Maine Green Schools program where the Maine Department of Environmental Protection receives an annual grant of approximately $15,000 from the federal Environmental Protection Agency and then works with Efficiency Maine to deliver mini

- grants to schools for energy efficiency projects. This year the schools that participated are:

School Project

o Lincoln Middle School H igh

- efficiency hand dryers (2)

o Lincoln Academy H igh

- efficiency hand dryers (4)

o Hanson and Lebanon Elementary O ccupancy sensors (17)

o Auco ci s co School Attic insulation

o Oak Hill Middle School Occupancy sensors, lighting, weatherization

o Casco Bay High School O ccupancy sensors (6)

Maine Green Schools also completed a four

- year energy use survey and energy benchmarking project, collecting data from over 100 Maine schools. From this data, an energy benchmarking flyer was developed, distributed to all participating schools, and is being used as an instructional tool for commercial building facility managers.

FY12 Plans : The Education and Awareness Program strategies and activities planned for FY12 are similar to what was done in FY11. For FY12, the Trust will continue to promote Power Sleuth, the Be Energy Wise Program, and the Maine Green Schools project. The Trust is reviewing memberships and sponsorships very carefully to ensure (a) that there is a strong nexus between the activities that are funded and the Trust’s core objectives of lowering energy costs through energy efficiency and alternative energy, (b) that the costs offer a good value, and (c) that there is not some other way the Trust could achieve the benefits at a lower cost. The budget for this suite of program s in FY12 appears in Appendix C.44 

## TRAINING

BOC Building Operator Certification (BOC)

Efficiency Maine used ARRA funds in FY11 to fund the BOC Program. The BOC Program has been provided for several years now in Maine in cooperation with the Northwest Energy Efficiency Council (NEEC). The BOC program offers a series of classes over several months that train facility managers to improve energy efficiency, reduce maintenance costs, and enhance building occupant comfort and safety. The courses instruct students in the use of advanced building equipment and contro ls, while emphasizing how energy savings can be achieved by preventive maintenance and better management of systems and equipment. BOC certification requires demonstrated competence in evaluating building energy consumption, HVAC and energy inspection, li ghting surveys, indoor air pollutant sources, and facility electrical distribution. Over 7,000 building operators across the country hold the BOC credential.

In FY 2011, the Maine BOC program trained 36 facility managers and operators in courses offered at Maine’s community colleges. These facility managers have converted their learning into savings of more than 5 million kWh per year from improved building operation and efficiency, based on their BOC experience. More than 500 facility managers also pa rticipated in the 2011 BOC webinar series introducing new technologies and progressive energy efficiency concepts.

FY11 Results:

Table 2 2

– BOC Program Results
Total Participants Total Units Lifetime Energy Savings (MMBTUs) Efficiency Maine Costs Participant Costs Lifetime Energy Benefit Benefit

- to

Cost Ratio

36 N/A 346,382 $ 83,362 $ 1,559,556 $ 6,847,967 4. 17

Community Colleges

– Energy Workforce Development

Efficiency Maine is administering four pass

- through grants to community college s for workforce development, funded through the American Recovery and Reinvestment Act (ARRA). On each campus
, the se programs each have a slightly different focus or approach

. They are designed to deliver training in areas with new occupational potential, such as technical energy auditor and installer training and renewable energy certifications. The programs offer enhanced training in the building trades to broaden the traditional knowledge base to include renewab le energy options, thereby increasing the range of job potential and professional opportunity. The four campus locations and a brief overview of their programs follow :45 Northern Maine Community College: $225,000

Through the Community Level Workforce Develo pment Support Grant the c ollege is infusing advanced energy concepts across its construction and transportation program clusters through a three

- pronged approach by:

**•** Revising the current building energy systems curricula to include green energy, building methods, energy audits and weathe rization of existing structures;

**•** Renovating space fo r a building science laboratory; and,

**•** Purchasing equipment to strengthen the College’s wind power technology program, the f irst of its kind in New England.

Ea stern Maine Community College (EMCC) : $350,000

Eastern Maine Community College, in partnership with the United Technologies Center, the neighboring regional public technical secondary school, and in collaboration with the University of Maine and other institutions wit hin the Maine Community College System, is developing a hands

- on academic laboratory program in Building Science. This rounds out a component of the EMCC vision to implement new degree programs that respond to the changing needs of the community. The lab oratory program builds upon existing programs, is vertically aligned with programs at the technical high school and the University of Maine, complements existing programs at other c ommunity c olleges, and is connected to existing workforce training programs. The components of the program include:

**•** Building Performance Institute (BPI) Building Analyst Professional curriculum for energy auditors ;

**•** New curricula for existing courses to supplement them with green construction skills

- related material ;

**•** New curricula for heat pump technology instruction in Refrigeration, Air Conditioning, and Heating program at EMCC and in the Heating & Plumbing program at the United Technologies Center ;

**•** New curricula for wood

- fueled heating appliance utilization for the Building Science Laboratory Program ;

**•** New curricula for radian t thermal transfer applications; and,

**•** New curricula for use of Structural Insulated Panels (SIPs) in construction.46 Kennebec Valley Community College (KVCC) : $350,000

Grant funds awarded through Efficiency Maine are supporting the development and implementation of the Renewable Energy Management (REM) program component of the College’s Energy Services and Technology Center. The Center serves th e region and the State of Maine as a premiere resource for training and education for energy efficiency and renewable energy technology. The KVCC goal is to accelerate development of the sustainable energy industry in Maine by coordinating, enhancing, and training a skilled energy efficiency and renewable energy workforce. The program is designed to:

**•** Forge strong industry, education and government partnerships with entities that have a stake in energy efficiency, renewable energy technology and the broade r “green energy” economy ;

**•** Provide access to a comprehensive, coordinated curriculum which provides a one

- st op approach to energy education;

**•** Provide access to expert customized classroom and distance learning on theory, inventory, evaluation, planning, desi gn, construction, installation and maintenance of renewable energy concepts such as passive solar, solar thermal, biomass/wood, micro

- turbines, geothermal, heat pumps and other energy efficient and renewable technologies for resident ial and commercial appl ications;

**•** Train skilled technicians ready to meet the growing workforce demands in the rapidly expanding field of energy efficiency and renewable energy technology;

**•** Research and develop energy efficient and renewable energy technologies, products and servi ces in a state

- of

- the

- art training center designed around LEED standards; and,

**•** Strengthen and grow Maine’s network of companies, education providers, state agencies, industry associations, non

- profits and others who are working to build Maine’s green econo my.

Sou thern Maine Community College (SMCC) : $375,000

Southern Maine Community College has established the SMCC Sustainability and Energy Alternatives Center and Program, an effort dedicated to interdisciplinary learning in building science and clean energy technology. The program trains Maine people across program trades in the theory and practice of building science, energy efficiency, weatherization and renewable energies. It prepares Maine people to help create and fill the jobs in Maine’s new en ergy economy and incorporates the highest standards of learning with a strong emphasis on work

- ready credentials and nationally recognized certifications.

In addition to diverse curricula development, the larger goals of the project have created:47 **•** The Susta inability and Energy Alternatives Center (SEA). A facility equipped with a pressurized house and building science and renewable energy equipment. The Center: 1) Offers high

quality, hands

- on building science and sustainable energy education programs, 2) Provides up

to

- date continuing education programs for existing workers along career pathways that lead to state and national certifications in energy efficiency and sustainable technology, and 3) Builds demand for energy efficient services by providing ong oing public education programs, including seminars on state and federal incentives. Center staff coordinates trainings, seminars and open houses and partnerships with other training organizations.

**•** The Sustainability Advisory Board of Practitioners and Edu cators. SMCC has created a permanent advisory board named the Sustainability Advisory Board. It includes current clean energy practitioners and employers, education and training partners, community

- based organizations, and SMCC faculty and staff. The Bo ard guides the development of the program, aligns trainings with recognized certifications and keeps the program adaptive and responsive to workforce needs

.

FY12 Plans: The Training Program strategy and activities planned for FY12 are the same as in FY11. The budget for the program in FY12 appears in Appendix C and reflect the fact that the federal funds that were used to pay for this program in FY11 will be exhausted during FY12

.



## INNOVATION FUND PROGRAM

Purpose: Efficiency Maine’s Innovation Fund aims to support pilot programs for assisting in the commercialization of energy efficiency products or new ways of delivering cost

- effective measures. Through the Innovation Fund, Eff iciency Maine is applying RGGI funds to support market players seeking to demonstrate technologies or program designs that, if they were deployed at scale, could show substantial energy savings opportunities for the state.

FY11 Activities:

**•** The Innovation Fund Program Request for Proposals resulted in eight proposals for review with one award made in the amount of $100,000;

**•** The first grant was awarded to Investment Engineering, based in Yarmouth, Maine , to install several micro

- combined heat and power (CHP) projects to demonstrate technical and financial48 information about the CHP systems that will allow building owners to make informed decisions about potential use of this equipment; and,

**•** The p roject will be completed and results reported in F Y2012.

FY12 Plans: The Innovation Fund Program strategy and activities planned for FY12 are the same as in FY11. The budget for the program in FY12 appears in Appendix C.



## EVALUATION OVERVIEW

Purpose: The purpose of Efficiency Maine’s Program Evaluation strategy is to provide independent third

- party analysis and verification of program performance and outcomes. The key objectives of Program Evaluations are to :

**•** D ocument and verify the program impacts on energy and demand savings and program cost

effectiveness relative to goals ;

**•** U nderstand why effects occurred and identify opportunities for improvement in program design and implementation ;

**•** A ssess program ef fects on the energy marketplace; and,

**•** Inform ad justments in program strategies and allocation of resources

.

FY11 Activities:

Table 2 3

- Program Evaluations Initiated During FY11 Program Type Prime Contractor Evaluation Budget Funding Source Contract Start Contract End

Home Energy Savings Program Impact The Cadmus Group, Inc. $150,000 ARRA

- SEP 4/18/11 11/30/11

Commercial Project Grants Impact Navigant Consulting, Inc. $150,000 ARRA

- SEP 4/18/11 12/31/11

Large Project Grants Impact Navigant Consulting, Inc. $150,000 ARRA

- SEP 4/18/11 3/31/12

Business Incentive Program Impact & Process Opinion Dynamics Corporation $200,000 Conservation Program Fund (SBC) 6/15/11 11/30/11

Data collection and anal ysis methods utilized in these evaluations include , but are not limited to :

**•** Review of program databases, project documentation and program materials ;49 **•** In

- depth interviews with program staff and stakeholders ;

**•** S urveys of program participants, non

- participants and trade allies ; and,

**•** Site visits, including on

- site installation verification , monitoring a nd metering

.

FY11 Results: During FY11, Efficiency Maine conducted competitive solicitations and selected independent third

- party evaluators for four evaluation projects. Each of these evaluati ons will be completed during FY 12.

FY12 Plans: The Evalua tion Program strategy and activities planned for FY12 are the same as in FY11. The budget for the program in FY12 appears in Appendix C.



## CODES AND STANDARDS

Commercial Building Energy Consumption Baseline Study

An often over

- loo ked activity in code compliance is establishing a baseline of the energy performance in buildings that were constructed without a state adopted energy code. It is important for Maine to measure the current energy performance of recently constructed (five years and newer) struc tures to compare the effectiveness of the newly adopted energy code, the training efforts surrounding the adopted energy code, and finally the effectiveness of the code compliance efforts.

The Commercial Building E nergy C onsumption B aseline S tudy of small and medium sized commercial buildings was commissioned by the Efficiency Maine Trust on behalf of the Maine State Planning Office and conducted by Energy & Resource Solutions (ERS) during May and June of 2011. The study provides information regarding basel ine construction practices for commercial buildings started between 2006 and 2010 throughout the State of Maine. The study was funded through a targeted U.S. Department of Energy grant received by the State Planning Office.

To implement the study, Effici ency Maine , in consultation with building industry stakeholders, develop ed a building b enchmarking initiative that would assess the energy performance of commercial and residential buildings. The study results determined the energy use intensities (EUIs) of the buildings and compared them to the most recent Commercial Buildings Energy Consumption data. In addition,50 the study identified building practices that are inconsistent with Maine’s Building and Energy Code and recommended training topics to address the deficiencies.

FY12 Plans: The Codes and Standards strategy and activities planned for FY12 will focus on how the Trust can assist municipalities, code enforcement officials and contractors to comply with applicable building energy codes and will continue to monitor voluntary and mandatory standards or certification programs as they are developed and implemented both within and outside of Maine

.51 

# Finance and Administration

Financial Report

On October 12, 2011, the Trust’s certified public accountant issued its audit of financial statements as of the year ended June 30, 2011. A copy of the Financial Report is attached in Appendix G to this report. The report was unanimously accepted by the Board of Trustees.
The financial audit was conducted to gain reasonable assurance that the financial statements are free of material misstatements. The audit examined, on a test basis, evidence supporting the amounts and disclosures in the financial state ments, and assessed the accounting principles used and significant estimates made by management, as well as evaluated the overall financial statement presentation.
Using the Governmental Accounting and Financial Reporting Standards of the Governmental Acco unting Standards Board (GASB), the audit found that,
[T]he financial statements ... present fairly, in all material respects, the respective financial position of the governmental activities and major fund of Efficiency Maine Trust, as of June 30, 2011, and the respective changes in financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America. 8

As illustrated in detail in the Financial Report in Appendix G , 9

8 Macdonald Page, Efficiency Maine Trust

– Financial Report, June 30, 2011 , October 12, 2011, p. 4. highlights of the Trust’s FY11 funding is provided in Table 2 4 , below.

9 Id, p. 10 and pp. 25

- 2752 

### Table 2 4

– FY11 Funding

Fund Source Funding Amount ($) System Benefit Charges 10

**•** Electric

**•** Solar

- Wind Rebate

**•** Natural Gas 13,730,391

**•** 12 , 896 , 891

**•** 411,173

**•** 422,327 Renewable Resources Fund 435,631 Federal Funds American Recovery and Reinvestment Act (ARRA)

**•** ARRA State Energy Program (SEP)

**•** Appliance Rebate Fund (Replacement Heating Equip)

**•** Energy Efficiency Community Block Grant (EECBG)

**•** BetterBuildings (PACE Revolving Loan Fund) Annual State Energy Program Other 41,117 , 343

**•** 13,617,628

**•** 843,318

**•** 4,888,686

**•** 21,485,083 11

**•** 218,292

**•** 64,336 State Grants 203,710 Forward Capacity Market 2,234,609 Regional Greenhouse Gas Initiative (RGGI) 6,336,339 Interest on Accounts and Loans and Other Revenue 87,692 Sub

- total FY2011 Funding 64,145,715

Other Financing Sources 13,938 Balance from Maine PUC FY10 Carried Forward 24,277,153 Beginning Fund Balance from Trust FY10 Carried Forward 128,776 Total Funding 88,565 , 582

The Trust spends its funds to implement energy efficiency and alternative energy programs. The Trust’s major program areas during FY11 were residential programs, business programs, and enabling strategies. These program areas, and the individual initiativ es within each one, are described in detail in the Program section of this Annual Report.
A summary of the Trust’s payments made in FY11 appears in Table 2 5 , below. 12

10 See Appendix I, SBC Payments by Utility. It is important to note that during this year of transitioning program administration f rom the Maine PUC to the Trust, the Trust elected to use a cash basis for accounting of expenditures. (During FY12 the Trust is moving to an accrual basis to more easily reflect encumbrances in the account statements.) As a result, a significant portion of funds committed to medium and large energy projects or contracts that were to be paid out in installments were carried forward into FY12 in cases where the projects are not complete and/or did not invoice their final installments before the end of the f iscal year. Additionally, the Trust received just over $20 million in funds in FY11 to capitalize the residential PACE Loan Fund. This loan fund is designed to be spent over a period of three years as customers elect to borrow the money for weatherizatio n.

11 The Statement of Revenues, Expenditures and Changes in Fund Balance on p. 10 of Appendix G indicates that a total of $39,497,118 was received in this fund. This amount reflects $18 million that hit the account twice as a result of routing 60% ($18 million) of the total through muni cipalities to comply with requirements of the federal Energy Efficiency and Conservation Block Grant Program

. The net amount of revenue for the Trust was $21,497,118. 12 See for more detail, Macdonald Page, Efficiency Maine Trust

– Financial Report, June 30, 2011 , October 12, 2011, p. 10 and pp. 25

- 27.53 Because the loan fund was not launched until just three months before the end of the fiscal year, less than $250,000 in loans were paid out during this reporting period even though the full $20 million appeared on the ledger for FY11. Finally, two pro grams that were expected to launch in FY11 were held back and are being launched in FY12 instead. This combination of factors explains the difference between total payments made and total funds held by the Trust in FY11.



### Table 2 5

– FY11 Payments Made

Expenditure Amount ($) Administrative 2,283,217 Residential Programs

**•** Low Income

**•** Non

- Low Income 15,345,702

**•** 292,073

**•** 15,053,629 13 Business Programs

**•** Medium and Large Businesses

**•** Small Businesses

**•** Prescriptive Incentives (All Businesses) 23,719,598

**•** 8,959,827

**•** 6,436,426

**•** 8,323,345 Enabling Strategies

**•** Financing and Training

**•** Codes and Standards

**•** Education and Awareness

**•** Evaluation 2,633,100

**•** 289,537

**•** 122,226

**•** 2,060,509

**•** 160,828 Capital Outlay 109,877 Inter

- agency Grants 515,670 Total Payments 44,607,167



## Single Audit Report

The Trust also received the Single Audit Report from its independent auditor for the fiscal year ending June 30, 2011. This report complements the Financial Report by providing a review and report on internal control over financial reporting and on compliance and other matters in accordance with Government Accounting Standards. The auditor issued an “Unqualified Report” and identified no “Questioned Costs.” The report is attached to this document as Appendix H

.

The auditor reviewed the Trust’s internal control over financial reporting and found no “deficiencies that we consider to be material weaknesses... [or] instances of noncompliance or other matters that are required to be reported under Government Auditing Standards .” 14

13 The Statement of Revenues, Expenditures and Changes in Fund Balance on p. 10 of Appendix G indicates that a total of $33,053,629 was paid out of this fund during FY11. This amount reflects $18 million tha t was routed through municipalities to comply with requirements of the federal Energy Efficiency and Conservation Block Grant Program but remains available for future expenditure for the Trust’s residential revolving loan fund using the BetterBuildings gra nt

. The net amount of payments for the Trust for non

- low

- income residential programs was $15,053,629.54 As described i n the audit report, the auditor also reviewed the Trust’s compliance with the types of requirements described in OMB Circular A

- 133 Compliance Supplement that could have a direct and material effect on each of the Trust’s major federal programs. The audit comprised examining, on a test bas i s, evidence about the Trust’s compliance with applicable laws, regulations, contracts and grants. Regarding compliance, the Single Audit Report finds,

In our opinion, Efficiency Maine Trust complied, in all material res pects, with the compliance requirements [of applicable laws, regulations, contracts and grants] that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2011. 15

Regarding the Trust’s internal control ove r compliance the auditor identified a significant deficiency in connection with the Trust’s oversight of a sub

- grantee, the Maine Green Energy Alliance (MGEA), but concluded that it was not a material weakness and that there were no other material weakness es identified. 16

During the first few months of the fiscal year, the Trust’s subrecipient monitoring policies were ineffective in determining whether subrecipients had financial and compliance policies and procedures in place to comply with requirements set forth in OMB Circular A

- 133, Audits of States Local Governments, and Non

- Profit Organizations and OMB Circular A

- 133, Compliance Supplement. Citing the fact that the Trust was in the midst of setting up its own organization, the report noted that,

17

The audit further reports that the Trust took prompt steps to address the concern. “During the year, the Trust ... made changes to the policies to address areas of risk” and that the Board adopted an

14 Mac d onald Page, Efficiency Maine Trust

– Single Audit Report, June 30, 2011 , October 12, 2011, p .1. 15 Macdonald Page, Efficiency Maine Trust

– Single Audit Report, June 30, 2011 , P. 3. 16 Id., p. 4. The audit report offers the following definitions: A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing the assigned functions, to pervert, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness is defined as a deficiency such that there is a reasonable possibility that material noncompliance with a requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness ... yet important enough to merit attention by those charged with governance.
17 Id., p. 8.55 updated ARRA Compliance and Monitoring Plan, including a com pliance checklist, during its September 12, 2011 meeting. 18

The Single Audit Report also contains as an attachment a Corrective Action Plan submitted by the Trust to the US Department of Energy to demonstrate how the Trust was addressing both the specific

o versight of the MGEA grant as well as the ongoing efforts to improve oversight of the compliance of other federal sub

- grantees. Specifically, the Corrective Action Plan indicates that:

**•** the Trust staff met with and assisted MGEA’s executive director and treasurer to develop and implement its own Corrective Action Plan;

**•** MGEA’s auditor reviewed the results of the MGEA Corrective Action Plan and a favorable report (finding that approximately $270,000 in previously Questioned Costs had been satisfactorily

res olved) was made to the Trust’s Board and accepted by the Board; 19

**•** the Trust staff redrafted sections of its ARRA Compliance and Monitoring Plan concerning the selection, risk evaluation and monitoring of subrecipients, which was reviewed by the Board’s Fina nce Committee and adopted by the full Board;

**•** the Trust staff have been implementing this improved Compliance and Monitoring Plan by sending a detailed checklist request for information to subrecipients of federal grants;

**•** the Trust staff are also now implem enting enhanced steps through the grant kick

- off meetings and provision of copies of federal regulations to assist subrecipients in proper compliance. 20

Finally, the audit also reviewed the Trust’s schedule of federal awards and reported, “In our opinion, t he schedule of expenditures of federal awards is fairly stated in all material respects in relation to the financial statements as a whole.” 21

18 Id. 19 Id. ̧p. 8. The Trust’s Single Audit Report favorably reports the Trust’s prompt oversight of problems identified with the MGEA sub

- grant and positive resolution of the concerns that had been raised:
The Trust’s management team took immediate steps to foll ow

- up on a corrective action plan for the subrecipient. After completion of the corrective action plan by the subrecipient, the Trust engaged the subrecipient’s audit firm ... to determine whether the corrective action plan had been implemented [and] whethe r certain questioned costs had been resolved. The agreed upon procedures report was issued in September 2011 showing satisfactory completion of the corrective plan and resolution of the questioned costs. 20 Trust Corrective Action Plan, Letter to US DOE, October 27, 2011 with enclosure. 21 Mac d onald Page, Efficiency Maine Trust

– Single Audit Report, June 30, 2011 , p. 4.56 

# OTHER INITIATIVES

ISO

- NE FORWARD CAPACITY MARKET

Purpose: Efficiency Maine Trust has been participating in ISO

- New England’s Forward Capacity Market since its inception in 2006. The forward capacity market is a market

- driven approach toward ensuring there is enough generation on the electrical grid to meet the peak demands each summer and winter. Efficiency Maine and other providers of demand resources offset the need for generation during these peak periods, and can participate in this market. One megawatt of saved energy is given the same value as one megawat t produced by a generator.

At the most basic level there are four steps to the forward capacity market. The ISO

- NE forecasts the peak demand that will need to be met three years ahead of time, hence a forward market. They then ask for a show of interes t from owners of new or existing generation units, energy efficiency programs, or distributed generation projects who are interested in providing capacity during this future year. ISO

NE then puts those potential market participants through a qualification process to ensure each is a viable source of providing or reducing energy during peak load hours. Finally ISO

- NE runs a descending clock auction for all qualified participants. Those who own the most cost

- effective resources are given a capacity obligati on, and are guaranteed revenue for the capacity they provide.

As a market participant t he Trust assumes three areas of respons ibility : (1) to report on our progress meeting existing capacity obligations from prior auctions; (2) to show the ISO

- NE that Eff iciency Maine’s
program results meet the ISO

- NE measurement and verification protocols and (3) to assess the risks and rewards of future auctions, and participate accordingly.

Each month Efficiency Maine reports to ISO

- NE on the increasing amount of capac ity our programs have delivered to date. All measures we have helped customers install are recorded in our custom database. The database takes into account how often those pieces of equipment are in operation, and adds up the total amount of aggregate capa city. To ensure the accuracy of this report the ISO

- NE requires an annual independent certification to review the processes behind Efficiency Maine’s monthly reports. All aspects of Efficiency Maine’s tracking, verification, and reporting activities are r eviewed and certified for their accuracy and compliance with the rigorous requirements of ISO New England's measurement and verification manual.

To date, Efficiency Maine has accumulated more than 50 megawatts ( MW ) of summer demand savings, and this numbe r grows each month. During fiscal year 2011 , Efficiency Maine participated in two57 f orward auctions. In August 2010, Efficiency Maine took on an obligation to supply 39.58 MW in June of 2013 during the fourth Forward Capacity Auction (FCA 4) at a price of $ 2.951 per kilowatt per month. The Trust anticipate s $1.4 million in revenues from this auction between June of 2013 and May of 2014. In June 2011 , Efficiency Maine took on an obligation to supply 21.306 MW in June of 2014 during FCA 5 at a price of $ $3.20 9 per kw/month , and anticipate s $820,541 in revenues from this auction between June of 2013 and May of 2014.

Th e chart below shows a summary of th e amount of demand savings that Efficiency Maine has delivered, is obligated to deliver via the FCM auctions, and the amount of revenue expected from this market. Revenues are estimates based on past performance of Efficiency Maine program s and the price of its Capacity Supply Obligation (CSO). Actual revenue will vary based on fees and incentives should Efficiency Maine’s programs exceed the CSO.58 

## HEATING FUELS STUDY

On December 15, 2010, the Trust issued its report, the Final Report: Heating Fuels Efficiency & Weatherization Fund , to the L egislature pursuant to the directive of Public Law 2009 , Chapter 372, Section C

- 2 (14 )

. The Trust initiated a stakeholder outreach and engagement process that consisted of two formal stakeholder workshops , meetings with numerous associations and energy companies, and two rounds of written comments. Overall, more than 1 00 stakeholders representing over 40 organizations including oil dealers, utilities, energy contractors and auditors, small businesses, environmentalists, entrepreneurs, low

- income advocates, elected officials, and manufacturers participated in the Trust’s
process

. Recognizing Maine’s recent history of concern with rising heating oil prices, t he report describes how the Trust’s programs could evolve , hypothetically, if funding resources were sustained. The report described the Trust’s proposed program design to reach more than 25,000 homes and businesses annually, introducing a suite of low

- cost, basic improvement options that are accessible for all Maine consumers. On a parallel track, the report contemplated maintaining a program to achieve deep savings of 25% or more, using energy audits, developing a priority list of improvements, and providing modest rebates towards the cost of energy upgrades. Finally, the report review ed the funding options available

an d briefly discussed the advantages and disadvantages of each.
The report concluded that if the Legislature should decide to maintain funding for the Heating Fuels Efficiency and Weatherization Fund, the establishment of a fee on heating fuels would offer a more reliable and sustainable mechanism than the other options reviewed by the Trust.

T he report noted widespread agreement among stakeholders on the desire to help Maine consumers lower their heating bills and on the value of improving the efficiency o f building envelopes to reach this objective. However, there is not a consensus about how or when to establish a funding stream that could sustain weatherization programs. The report relayed the Trust ’s interest in working with the Legislature, the Governo r’s Office and the many stakeholders who offered their time and insights to the report process to craft an approach that could provide sustained, reliable funding for these programs while ensuring that the benefits to Maine residents and businesses signifi cantly outweigh the costs.59 

# APPENDICES

## APPENDIX A

FY 2011 EFFICIENCY MAINE PROGRAM IMPACTS

SBC AND RGGI FUNDED PROGRAMS

ARRA FUNDED PROGRAMS

## APPENDIX B EFFICIENCY MAINE PROGRAM EXPENDITURES

Program Incentive Technical Support Marketing Administrative Total
Business Program 6,064,412 $ 3,894,139

$ 390,233

$ 696,586

$ 11,045,371

$ Competitive Bid Projects 4,403,402 $

-

$

-

$ 293,839

$ 4,697,241

$ High Performance School 645,124 $ 153,437

$

-

$ 54,887

$ 853,448

$ Residential Lighting 2,737,593 $ 1,012,534

$ 34,432

$ 254,883

$ 4,039,443

$ Residential Appliances 1,186,600 $ 199,178

$ 34,432

$ 112,812

$ 1,533,022

$
Low Income 301,081 $

-

$

-

$ 24,434

$ 325,515

$ Education & Awareness

- $

-

$ 284,068

$ 19,307

$ 303,375

$ SBC & RGGI Sub Total 15,338,213 $ 5,259,288

$ 743,165

$ 1,456,747

$ 22,797,414

$ Commercial Projects 1,387,060 $

-

$ 35,941

$ 39,553

$ 1,462,555

$ Competitive Bid Program (GHG Reductions) 3,270,118 $ 34,908

$ 35,941

$ 93,251

$ 3,434,218

$

Commercial New Construction (ME Advanced Building) 85,618 $ 129,819

$ 8,585 $ 224,022

$ Retro-Commissioning 190,108 $ 144,133

$ 9,170 $ 343,411

$ Small Business Energy Audits

- $ 199,596

$ 5,692 $ 205,288

$ EECBG Municipal Grants 3,279,718 $

-

$ 93,524 $ 3,373,243

$

Home Energy Savings Program 6,024,706 $ 1,984,572

$ 357,371

$ 221,848

$ 8,588,497

$ Replacement Heating Equipment 1,066,936 $ 72,125

$ 36,353

$ 32,481

$ 1,207,896

$ Solar/Wind Rebate 531,246 $ 24,436

$ 15,846 $ 571,528

$ Renewable Resource Fund Supplement 456,023 $

-

$ 13,004 $ 469,027

$ Building Operator Certification (BOC) Trainings

- $ 81,051

$ 2,311 $ 83,362

$ ARRA Sub-Total 16,291,534 $ 2,670,640

$ 465,606

$ 535,265

$ 19,963,045

$ Total 31,629,747 $ 7,929,928

$ 1,208,771

$ 1,992,012

$ 42,760,459

$

## APPENDIX C Efficiency Maine Trust FY 2012 Budget Approved by the Board of Trustees September 7, 2011

September 7, 2011 Board Approved FY 2012 Budget Totals 

## Administration, Personnel and General Costs 2,982,501


## Residential Programs 5,410,140



## Non-Low Income Residential Programs Weatherization & Efficiency 2,881,701 Lighting Appliances & Electronic 4,581,696 Appliance Rebate 1,047,901 Heating Appliance Rebate Program 419,682 Renewable Resource Program 83,200 Refrigerator Recycling 2,000,000 Solar/Wind Rebate Program 1,073,330 Wind Anemometer Program 77,154 PACE - Home Energy Loan Fund 20,114,715 Residential Lighting & App - MPRP 225,000 Residential Direct Install 900,349 38,814,868


## Business Programs Medium and Large Businesses Business Incentive Prgm - Med & Lge 1,977,542 Large Project Impact Fund 12,527,428 Maine Advanced Building Program 1,066,668 Retro Commissioning 354,930 Maine High Perform Schools (MHPS) 568,000 Renewable Resource Fund Spplmnt 350,958 Maine Green Schools - DEP MOU 22,338 Large Impact - MPRP Projects 1,050,000 State House Energy Audit 200,000



### Subtotal Med & Large Businesses 18,117,864 

## Small Businesses Business Incentive Prgm - Small 1,670,420 Commercial Audits 462,810 Direct Install 2,057,392 Grants to Municipalities 3,067,839 Multifamily Retrofits 750,000 

### Subtotal Small Business 8,008,461 

## Prescriptive Business Incentive Prgm - Prescptv 5,454,350 Commercial Grants 822,011 Bus Incent Prgm - Prescptv - MPRP 225,000 

### Subtotal Prescriptive 6,501,361


## Subtotal Business Programs 32,627,686 

## Low-Income Residential Programs

Subtotal All Residential Programs

## APPENDIX C Efficiency Maine Trust FY 2012 Budget Approved by the Board of Trustees September 7, 2011

September 7, 2011 Board Approved FY 2012 Budget Totals


## Enabling Strategies Financing, Training, etc. Commercial Loans 548,240 On-Bill Pilot Program 284,964 BOC Trainings 465,420 PACE Service Center 797,877 PACE Customer Service Provider 1,145,954 MSHA Carbon Quantification 270,152 MSHA - Data Repository 600,000 Call Center Services 324,620 EffRT Data Base Upgrade 509,300 FCM Contractor Services 371,159 Other Contractor Services 228,529 Other Training Services 5,550 Subtotal Financing & Training, etc. 5,551,765



## Codes and Standards

Baseline Study Building Code - SPO 107,774 Subtotal Codes and Standards 107,774



## Education & Awareness Workforce Develop - Comm Coll. 1,105,916 UMS 2Yr Outreach & Educ Program 14,671 MMSA (Power Sleuth, ME Math/Sci) 53,970 Marketing 1,004,275 PACE Admin & Marketing - state 397,729 MEEP 934 Energy Education 437,550 Contingencies 50,000 Subtotal Education & Awareness 3,065,045



## Innovation Innovation Programs 1,072,572



## Evaluation Independent M&V Program Review 570,000 PACE EM&V 275,000 CCI (MHPS Technical Advisor) 43,075 Weatherization & M&V 150,000 Industrial & Commercial M&V 300,000 NEEP - DOE Project 20,514 NEEP - EM&V Projects 125,000 Subtotal Evaluation 1,483,589 

## Subtotal Enabling Strategies 11,280,745

## APPENDIX C Efficiency Maine Trust FY 2012 Budget Approved by the Board of Trustees September 7, 2011

September 7, 2011 Board Approved FY 2012 Budget Totals 

## Estimated Direct Program Costs 82,723,299 Proof 

## Payments to State Agencies MPUC - Oversight & Evaluation Fund max 1% of revs, sec 10120, 3. 245,849 DECD 35% of RRF 197,971 DEP (allow 3% revs + $100,000 research) 235,000 678,820 

## Subtotal Current Expenditures 86,384,620



## Interfund Transfers

Admin Fund, 10103 ss 5 1,327,197 Conservation Admin Fund, 10110 294,976 Federal Multifamily Fund 750,000 

## Subtotal Interfund Transfers 2,372,173 

## Estimated Total Expenditures 88,756,793 

## Subtotal Transfers to State Agencies

### Appendix D FY11 Competitive Bid Projects

Applicant Town Project Grant Project Cost

Huhtamaki Waterville Retrofit motors and pumps $400,000 $1,250,000 Irving Forest Products Dixfield Install a back pressure steam turbine $706,543 $1,413,085 Madison Paper Industries Madison New grinding stones $725,000 $1,450,743 Moose River Lumber Moose River Install a back pressure steam turbine $450,000 $1,300,000 SAPPI Skowhegan Multiple Variable Frequency Drives $300,888 $601,000 State of Maine Bureau of General Services Augusta Install a back pressure steam turbine as part of the new pellet system on the East Campus $750,000 $4,095,000

The Jackson Laboratory Bar Harbor Install a back pressure steam turbine $369,011 $738,022 Twin Rivers Paper Madawaska Multiple Variable Frequency Drives $301,960 $603,920 University of Maine - Orono Orono Retrofit multiple measures in Alfond Arena $300,000 $1,413,085

Applicant Town Project Grant Project Cost

Colby Waterville Replace oil boilers with biomass gasifiers $750,000 $11,000,000

GAC Chemical Searsport Multiple measures including lighting, boiler upgrades, & steam pipe insulation $314,200 $628,400

General Dynamics Saco Convert oil boilers to natural gas $100,000 $200,000 Mt Abram Greenwood Snowmaking Retrofit $128,940 $257,880 Stonyvale Farms Exeter Install 1 MW Biogas Anaerobic Digester $650,000 $2,990,375 Twin Rivers Madawaska Heat Recovery $372,818 $745,635 University of Maine - Orono Orono Install a new natural gas boiler $700,000 $2,760,855 University of New England Biddeford Install a new energy control system $154,160 $308,320 University of Southern Maine Portland Convert oil boilers to natural gas $100,000 $273,405 Electric (kWh) Savings Projects

Greenhouse Gas (GHG) Reduction Projects

# Appendix E: Commerical Project Grants

Grantee Town Project Award Matching Funds Total Project

Costs Air & Quality Inc. Freeport Install photovoltaic system w/smart monitoring package $9,941 $18,467 $28,408

Alfond Youth Center Waterville Install biomass boiler system $50,000 $416,483 $467,483 Alfond Youth Center Waterville Install lighting $17,262 $17,263 $34,525 Anchorage By the Sea Ogunquit Integrate & install solar thermal system $49,877 $78,013 $127,890 Basics Fitness Center South Portland Install a closed loop antifreeze solar water heating system w/flat plate solar hot water collectors & two 105 gallon storage tanks & solar pump station $11,235 $11,235 $22,470

Bath Area Family YMCA Bath Install pool cover, upgrade lighting, install automated lighting control & timing systems $34,162 $40,312 $74,474

Becky's Diner Portland Install a flat plate domestic hot water system $12,224 $12,225 $24,449

Billy's Chowder House Wells Purchase & install 12 kW Vegawatt cogeneration system $45,690 $45,690 $92,380

Black Dinah Chocolatiers Isle au Haut 3.2 kilowatt grid-tied photovoltaic system $6,425 $11,936 $18,361 Black Dinah Chocolatiers Isle au Haut Closed loop antifreeze solar hot water system $9,860 $9,861 $19,721

Bob's Overhead Doors Lewiston Replace uninsulated garage doors $26,950 $27,450 $54,400 Boothbay Region YMCA Boothbay Harbor Install propane heating system $50,000 $171,765 $221,765

Bowdoin College Brunswick Double size of solar thermal domestic hot water installation $50,000 $67,550 $117,550

Breakwater School Portland Replace boiler, install zone control system $50,000 $100,935 $150,935

Brixham Montessori Friends School York Air sealing & insulation, upgrade domestic hot water system $4,863 $4,863 $9,726

Center City Plaza Associates Portland Replace all lights $20,597 $20,597 $41,194 City of Portland Portland Energy efficiency upgrades for Central Maintenance Building $48,973 $102,880 $151,853

Coffee by Design, Inc. Portland Install grid-tied photovoltaic system $17,361 $32,244 $49,605 Five Town CSD Camden Install wind turbine at Camden Hills Regional High School $50,000 $460,000 $510,000

Fogarty's Restaurant & Bakery South Berwick Purchase & install 5 kW Vegawatt cogeneration system $24,433 $24,433 $48,866

Greater Portland Landmarks Portland Upgrade HVAC systems at Safford House $50,000 $122,050 $172,050 Habitat for Humanity/7 Rivers Maine Brunswick Insulate building $37,975 $40,017 $77,992

HillHouse Assisted Living Brunswick Modify & upgrade heating system, insulate attic & foundation, modify walls, windows & doors $50,000 $67,145 $117,146

Katie Made Bakery Portland Install a closed loop antifreeze solar water heating system $5,976 $5,977 $11,953

Leisure Gardens/Leisure Village Brunswick Install solar thermal domestic hot water system $50,000 $66,000 $116,000

Lepage & Eaton Countertops Waterville Add soy based "green" spray foam insulation $4,820 $6,000 $10,820

Lewis & Malm Architecture Bucksport Install low temperature heat pump HVAC system $11,355 $11,355 $22,710

Maine Children's Home for Little Wanderers Waterville Building Automations/Controls $17,625 $17,625 $35,250

Mechanical Services Presque Isle Install supplemental solar domestic hot water heater & space heating system $16,360 $26,520 $42,880

Northeast Radiant Tech., LLC Gardiner Install a grid-tied photovoltaic system $12,991 $24,164 $37,155 Penobscot Bay YMCA Rockport Upgrade building heating and automated control systems $20,650 $20,650 $41,300

R. H. Foster Energy Hampden Upgrade HVAC, lighting & cooking equipment $50,000 $78,300 $128,300

Red River Camps, LLC Portage Install off-grid solar power battery system & replace appliances $14,416 $14,416 $28,832

Sanford-Springvale YMCA Sanford Install propane heating system $50,000 $62,250 $115,250 Sea & Reef Aquaculture LLC Franklin Upgrade & reconfigure energy system $50,000 $103,082 $153,082

South Berwick Water District South Berwick Install turbine pumps $41,000 $115,000 $156,000 St. Joseph's College of Maine Standish Improve HVAC system $22,325 $27,817 $50,142

Page 1

# Appendix E: Commerical Project Grants

Grantee Town Project Award Matching Funds Total Project

Costs
The Birchwood Motel Camden Install solar thermal system $25,313 $37,962 $63,282

The Highlands Retirement Community Topsham Install solar hot water system $50,000 $53,250 $103,250

The Iris Network Portland Renovating upper floors, install windows $50,000 $76,157 $126,157

Town of Scarborough Scarborough Replace old boiler w/propane gas boiler, install underground propane storage tanks $42,750 $42,750 $85,500

Town of Veazie Veazie Install updated windows and lighting in Comm. Center $8,583 $9,000 $17,583

University of New England Biddeford Install parking lot LED fixture replacements $34,347 $34,347 $68,695

University of New England Biddeford Solar thermal project $50,000 $52,640 $102,640 Woodard & Curran Freeport Install spray foam insulation in roof & rigid insulation in exterior walls $30,721 $30,721 $61,442

TOTALS $1,387,060 $2,819,397 $4,211,466

Page 2

### Appendix F - EECBG Municipal Energy Grants

Grant Recipient Grant

Amount Project

Addison $76,847 Install wind turbine, solar hot water, and LED lighting, energy audit town building Alfred $41,055 Repair 23 "1860" original windows; Add insulation in crawlspace, exterior walls, insulate and seal the attic scuttle, and replace the fire escape door on the second floor with an insulated steel door. Replace 40 T12 lamps with 40 T8 lamps

Allagash $14,980 Install occupancy sensors, replace 45-T12s with T8s, weatherstrip entry door, install controls, install 2 electric water heaters, and replace 4 commercial ceiling fans. Anson $34,776 Weatherize and air seal all town buildings; Insulate walls, attics and basements of all town buildings and, install four (4) propane heating units to replace oil furnace in the public works garage. Baileyville $41,055 Install 3 new boilers, change out T12s to T8s, replace window and weatherize existing windows and doors.

Bar Harbor $10,000 Develop & implement Community Energy Plan Bath (Regional) $500,000 Regional audit/energy retrofit program. Complements Efficiency Maine's Home Energy Savings Program.

Belfast $36,225 Insulate and air seal city hall. Belfast $10,000 Develop & implement Community Energy Plan Belgrade $29,600 Air seal and insulate four municipal buildings, install one oil furnace and one oil boiler Berwick $10,000 Develop & implement Community Energy Plan Bethel $20,550 Install Waste Treatment Plant VFD motor for agitator Blue Hill $10,000 Develop & implement Community Energy Plan Blue Hill $36,225 Conduct audit, retrofits and feasibility study Bowdoinham $10,000 Develop & implement Community Energy Plan Bowdoinham $36,225 Insulate and air seal the attic, stairwell and foundation walls, and install waterproofing system.

Brewer $78,968 Replace HVAC in library, install windows where single pane or wall air conditioners; T5 lighting upgrade in auditorium Brooklin $10,000 Develop & implement Community Energy Plan Brooks $85,000 Community Weatherization Model - Complements Efficiency Maine's Home Energy Savings Program

Brooksville $40,512 Community Weatherization Model - Complements Efficiency Maine's Home Energy Savings Program

Bucksport $85,000 Hire technical consultant for wood pellet boiler, install wood pellet boiler at waste treatment plant

Calais $85,000 R-46 roof installation at Public Safety building Cape Elizabeth $85,000 Lighting retrofits in school and community center buildings Caribou $71,100 LED street and airport lighting Casco (Regional) $247,576 Energy retrofits at RSU 61 High School including windows,door, and HVAC upgrade Chebeague Island $52,362 Weatherize town buildings, install efficient water heating and HVAC heat exchanger

China $60,300 2 recycling balers, wood pellet furnace at transfer station, 4 solar air units, insulate town office, two wood pellet furnaces at town offoce Columbia $20,630 Heating/weatherization retrofits at town transfer station Columbia Falls $34,650 Installing 2 boilers and 1 hot water tank with smart controls. Corinth $41,055 Remove dehumidifiers; Insulate and air seal attic and box sills; Install 5-ton geothermal FHA ducted system; and, Install 1000 foot vertical, 6” bore holes with 1.25” grouted piping and connect to geothermal heat pump.

Cumberland $74,762 3 evacuated tube solar HW systems; 4 HVAC units Damariscotta $82,000 Bike/pedistration pathway as part of US Route 1 rebuild project Dayton $73,656 66 panel solar PV system on town hall Dixfield $24,150 Lighting upgrades, thermal neutralizers, controls, electric water heater, insulation and weatherstripping.

Eliot $10,000 Develop & implement Community Energy Plan Falmouth $75,995 Energy retrofits at municipal bldgs/solar thermal installation Farmingdale $11,205 Replace old boiler with a Peerless boiler.

### Appendix F - EECBG Municipal Energy Grants

Grant Recipient Grant

Amount Project

Farmington $31,547 Solar Air install Fayette $10,000 Develop & implement Community Energy Plan Fort Fairfield $58,290 Install LED street lights Fort Kent $85,000 Install new windows and interior lighting Freeport $80,847 Complex efficiency projects at multiple buidlings and locations, public education plan Frenchville $45,000 Repair roof, insulate ceiling and walls, replace service doors, repair floor and upgrade lighting

Frenchville $9,020 Develop & implement Community Energy Plan Gardiner $17,500 Install 40 induction light fixtures in park Gorham $78,960 PV installation at Municipal Center building Gray $10,000 Develop & implement Community Energy Plan Gray $41,055 Develop a community energy plan. Conduct energy audits to identify retrofits and streetlights.

Greenville $79,305 4 solar thermal collectors Hallowell $34,776 Reduce recycling transport costs, fuel usage and increase volume recycled materials collected and processed. LED Streetlights Hampden $84,146 Install more efficient oil furnaces Harrison $10,000 Develop & implement Community Energy Plan Hiram $10,000 Develop & implement Community Energy Plan Hiram $39,680 Seal and insulate town office and town library and retrofit town office boiler. Houlton $41,055 Lighting and sensor upgrades to the Houlton Town Office, Police & Fire Department, Gentle Memorial Building, John A. Millar Civic Center and the Town Garage. Hudson $41,055 Replace the existing heating system; upgrade the town office attic insulation, install high performance T-8 lamps in the town office and hallways, replace the existing water heat with electric, instantaneous water heater; and, replace 6 existing single pane windows with double pane windows.

Kennebunk $81,000 Design and install traffic coordiantion equipment; install R-49 insulation in town hall roof Kennebunkport $41,055 Install roof insulation; install new overhead door panels, mechanical components and add weather-stripping tothe panels; replace the existing light fixtures with high bay light-emitting diode (LED) light fixtures; install a destratification fan; and, install a programmable thermostat.

Lisbon $85,000 Install building insulation, windows, and high-efficiency natural gas boiler Machias $10,000 Develop & implement Community Energy Plan Madawaska $41,055 Replace 85 post-top (street light) fixtures with LED lighting along the Town of Madawaska’s Main Street.

Madison $85,000 Install buding insulation, 38 LED street lamps, and solar lighted stop signs Manchester $41,055 Install a 9.2 kW photovoltaic system on the town office building. Mars Hill $24,150 Implement recommendation of audit on Mars Hill & Blaine Community Center Mechanic Falls $10,000 Develop & implement Community Energy Plan Mechanic Falls $36,225 Install solar panels on municipal buildings Mercer $10,000 Develop & implement Community Energy Plan Mercer $41,055 Install pellet furnace Monmouth $4,000 Energy audit for Custom Hall Montville $44,733 Install building insulation, 36 solar PV panel system New Gloucester $9,886 Develop & implement Community Energy Plan New Gloucester $36,225 Insulate heating pipes, upgrade lighting, reduce infiltration and heat loss by air sealing and insulating foundation walls, joists, and attic, weatherseal doors and windows, retrofit the ventilation system, install fan convector and hot water zone, insulate and install Empire heater, install 5 Airius 25 thermal equalizers, and upgrade window AC unit. North Yarmouth $10,000 Develop & implement Community Energy Plan North Yarmouth $5,000 Expand energy audits to include more buildings Norway $85,000 Solar Bee aerators at wastewater treatment plant lagoon Oakland $46,817 Wind turbine/replace baler at town transfer station Old Town $85,000 Install 76 LED light fixtures in park and downtown; develop energy conservation strategy Orland $41,055 Upgrade town pump stations

### Appendix F - EECBG Municipal Energy Grants

Grant Recipient Grant

Amount Project

Orono $41,055 Install a heat plant exchange; and, replace 388 T-12 fixtures to T-8s in six municipal buildings, including the Fire Department, Police Department, Town Office, Tredwell Building, Keith Anderson Community Building, and the Municipal Pool. Palmyra $30,000 Insulate ceiling, walls and floor of town hall; install foam boards on the outside walls and foam panel in the window tops; build enclosure on outside door to create air lock on entry door; re-route and repair ducts and insulate; repair air intakes on furnace; and, remove windows, block openings and spray foam on the windows in the crawl space. Paris $28,500 Lighting and building envelope improvements, upgrading domestic hot water and ventilation in Town Office and Town Garage Perry $85,000 Install efficient doors, appliances, and lights; install wood pellet boiler; energy audit of school

Phippsburg $10,000 Install baseboard heating from hot air Pittsfield $84,425 Install insulation, high-efficieny oil boiler, solar HW system, public outreach Plantation of Grand Lake Stream $35,000 Install heating system & insulate Town Office and Community Building

Poland $17,575 Replace 297 T-12s with 297 super T-8s; and install occupancy sensors Porter $10,000 Develop & implement Community Energy Plan Presque Isle $85,000 Update methane gas feasibility study; purchase and install landfill vacumn valves and methane analyzer

Raymond $36,044 Install building insulation; project administration and technical assitance to implement project

Reed Plantation $29,250 Install building insulation, high efficiency oil boiler Rockland $9,180 Develop & implement Community Energy Plan Rockland $35,211 Conduct study at the landfill to determine if there is potential to harvest landfill gas. Rockport $10,000 Develop & implement Community Energy Plan Rockport $36,225 Install roof insulation, upper wall insulation, basement wall insulation and air sealing around doors and windows in the Rockport Opera House. Rumford $10,000 Develop & implement Community Energy Plan Saco $85,000 Install 79 LED light fixtures, 13 panel solar PV, HVAC, insulation Saint Francis $30,758 Improvements to building envelope, thermal de-stratification fans, lighting improvements, outside air temperture reset control added to exiting boiler and 24-hour timer installated on hot water heater.

Saint Francis $5,540 Develop & implement Community Energy Plan Searsmont $35,711 Install an 8.3 kW photovoltaic solar system on the municipal building. Sedgwick $10,000 Develop & implement Community Energy Plan Sedgwick $36,225 Upgrade lighting, insulation Skowhegan $49,500 Install efficient indoor lighting South Berwick $10,000 Develop & implement Community Energy Plan South Berwick (Regional) $500,000 Regional weatherization program- RLF/audits/training - complements Efficiency Maine's Home Energy Savings Program Stockton Springs $10,000 Develop & implement Community Energy Plan Stoneham $10,000 Develop & implement Community Energy Plan Stonington $48,730 Replace windows, retrofit lighting, install occupancy sensors, install LED exit lighting, and insulate parts of the building. Strong $10,000 Develop & implement Community Energy Plan Strong $36,225 Retrofit the Forster Memorial Building: One counter, two office and 13 basement windows, six digital programmable thermostats, on-demand propane water heater, lighting retrofit and occupancy sensor in foyer, wood pellet boiler and related heating system improvements (Maine Forest Service Wood Heat Grant), and attic insulation. Retrofit the Fire Station: lighting retrofit and building insulation. Retrofit Town Garage: lighting retrofit. Community Energy Opportunity Planning: Geneva Energy Steam feasibility and community wind feasibility.

Thomaston $77,273 52 panel solar PV installation Thorndike $10,000 Develop & implement Community Energy Plan Thorndike $36,225 Renovate orreplace heating system and energy efficiency upgrades. Union $10,000 Develop & implement Community Energy Plan

### Appendix F - EECBG Municipal Energy Grants

Union $36,225 Insulate ceiling and pipes, install digital thermostats, install 2 tankless water heaters, cap gable ends, weather seal windows and doors, update AC unit, replace steel doors and window, and replace boiler.

Unity $82,500 Community Weatherization Model -complements Efficiency Maine's Home Energy Savings Program

Vassalboro $10,000 Develop & implement Community Energy Plan Vassalboro $36,225 Replace demand boiler in town garage with high efficiency cold start boiler; Iistall 20 gallon electric water heater with timer in town garage; convert exit signs to LEDs in town garage, Riverside and North Vassalboro fire stations, and town office; replace existing demand boiler at the Riverside fire station with cold-start boiler with smart controls and indirect fired hot water tank; install lighting fixtures and sensors at the Riverside and North Vassalboro fire stations, library, town garage, and town office; upgrade efficiency with smart controls in the existing boiler at North Vassalboro fire station; and, Install outdoor lighting controls.

Veazie $30,000 Retrofit project to replace windows and lighting Waldoboro $36,225 Conduct energy retrofits at town buldings based on audit results. Waldoboro $10,000 Develop & implement Community Energy Plan Warren $81,349 Install building insulation Washington County $10,000 Develop & implement Community Energy Plan

Waterboro $28,980 Audit study on the town library, the South Fire Station, the original town hall and the current town hall facility; employees will attend an energy training and/or energy conference for information regarding the development of the new energy chapter; and, develop the new energy chapter in the Town of Waterboro’s new master comprehensive plan.

Waterville (Regional) $170,000 Community Weatherization Model- complements Efficiency Maine's Home Energy Savings Program

Westbrook $85,000 HVAC installation Windham $10,000 Develop & implement Community Energy Plan Windham $36,225 Retrofit, energy audits, lighting, etc. Install gas conversion burner at North Windham Fire Station; change out 380 T-12s to T-8s in all the town buildings; and, retrofit the town library’s building envelope and incorporate heating and hot water improvements, as outlined in the Windham Town Library Energy Assessment Report.

Winthrop $73,656 66 panel solar PV system 15.2 KwH Yarmouth $55,344 Waste Treatment Plant aerator motors and controls York $10,000 Develop & implement Community Energy Plan

## Appendix G

Efficiency Maine Trust Financial Report,

June 30, 2011

by Macdonald Page October 12, 2011

## Appendix H

Efficiency Maine Trust Single Audit Report , June 30, 2011

by Macdonald Page October 12, 2011Appendix I

Assessment Quarter: Apr-Jun 2010 July-Sep 2010 Oct-Dec 2010 Jan-Mar 2011

Billing Date: 30-Jul-10 31-Oct-10 31-Jan-11 30-Apr-11 Name Total - FY11 Bangor Hydro-Electric Co 445,662.00 $ 514,480.00

$ 486,313.00

$ 497,097.00

$ 1,943,552.00

$ Central Maine Power Co 2,229,382.00 $ 2,772,828.00

$ 2,408,849.00

$ 2,633,059.00

$ 10,044,118.00

$ Eastern Maine Electric Coop 30,300.00 $ 33,886.00

$ 32,450.00

$ 35,045.00

$ 131,681.00

$ Fox Island Electric Coop 2,921.00 $ 4,006.00

$ 3,338.00

$ 3,262.00

$ 13,527.00

$ Houlton Water Co 21,992.00 $ 23,508.00

$ 23,310.00

$ 26,124.00

$ 94,934.00

$ Kennebunck Light & Power 33,649.10 $ 39,233.62

$ 34,139.32

$ 38,532.72

$ 145,554.76

$ Madison Electric Works 7,911.00 $ 9,916.00

$ 9,068.00

$ 10,888.00

$ 37,783.00

$ Maine Public Service Co 106,349.00 $ 118,838.00

$ 109,204.00

$ 129,032.00

$ 463,423.00

$ Swan's Island Electric 642.00 $ 966.00

$ 694.00

$ 698.00

$ 3,000.00

$ Van Buren Light & Power Co 4,621.37 $ 4,611.29

$ 4,779.74

$ 5,305.53

$ 19,317.93

$ Northern Utilities - Unitil

- $

- $

Totals 2,883,429.47 $ 3,522,272.91

$ 3,112,145.06

$ 3,379,043.25

$ 12,896,890.69

$

State Budget Projections FY 2012 FY 2013 Bangor Hydro-Electric Co 2,049,344 $ 1,985,426

$ Central Maine Power Co 10,590,844 10,260,519 Eastern Maine Electric Coop 138,849 134,518 Fox Island Electric Coop 14,263 13,818 Houlton Water Co 100,101 96,979 Kennebunck Light & Power 153,478 148,691 Madison Electric Works 39,840 38,597 Maine Public Service Co 488,648 473,407 Swan's Island Electric 3,163 3,065 Van Buren Light & Power Co 20,369 19,734

Assessment Quarter: Apr-Jun 2010 July-Sep 2010 Oct-Dec 2010 REPEALED

Billing Date: 30-Jul-10 31-Oct-10 31-Jan-11 Dec 2010 Name Total - FY11 Bangor Hydro-Electric Co 18,201.00 $ 21,358.00

$ 19,551.00

$

-

$ 59,110.00

$ Central Maine Power Co 102,534.00 $ 121,565.00

$ 110,842.00

$

-

$ 334,941.00

$ Maine Public Service Co 5,972.00 $ 6,305.00

$ 4,845.00

$

-

$ 17,122.00

$

- $

Totals 126,707.00 $ 149,228.00

$ 135,238.00

$

-

$ 411,173.00

$

Assessment Quarter: Apr-Jun 2010 July-Sep 2010 Oct-Dec 2010 Jan-Mar 2011

Billing Date: 30-Jul-10 31-Oct-10 31-Jan-11 30-Apr-11 Name Total - FY11
Northern Utilities - Unitil 53,269.97 $ 134,481.64

$ 234,575.77

$ 422,327.38

$

- $

- $

Totals

- $ 53,269.97

$ 134,481.64

$ 234,575.77

$ 422,327.38

$ FY12 Projection 523,889.00 $ FY13 Projection 523,889.00 $ Natural Gas PUC Assessments and Revenue Collections - FY 2011

System Benefit Charge (SBC)

Solar/ Wind Rebate FundAppendix I

PUC Assessments and Revenue Collections - FY 2011

Name 30-Jul-10 Total - FY11
American Powernet 121.84 $ 121.84 $ Katahdin Services Company 194.94 $ 194.94 $ Constellation Energy 5,380.45 $ 5,380.45 $ Independence Power Market 313,555.24 $ 313,555.24 $

- $

- $

Totals 319,252.47 $

-

$

-

$

-

$ 319,252.47

$ Alternative Compliance Mechanism (ACM )

### Appendix J - Unitil Maine Gas 7/1/2010 to 11/18/2011

Unitil Maine Gas Energy Efficiency Programs Budget Goal Q4 Total Total Balance * 7/01/10-6/30/11 7/01/11-11/18/11 Program Expenses ($)

Low Income MF Weatherization $98,325 $71,073 $2,156 $73,229 $25,096 Res Weatherization (Support) $25,958 $13,579 $1,139 $14,718 $11,240 Large C&I Custom $182,488 $24,187 $3,236 $27,423 $155,065
Small C&I Custom $118,325 $50,194 $2,157 $52,351 $65,974
C&I GasNetworks $147,487 $97,642 $105,836 $203,478 ($55,991) SC&I Multifamily Weatherization $103,325 $92,800 $2,157 $94,957 $8,368 Total $675,908 $349,474 $116,681 $466,155 $209,753
Program Participation (# of projects or rebates)
Low Income MF Weatherization 1 1 0 1 Res Weatherization (Support) 0 0 0 0 Large C&I Custom 4 0 0 0
Small C&I Custom 10 0 0 0
C&I GasNetworks 35 32 21 53 SC&I Multifamily Weatherization 1 2 0 2 Total 51 56 21 56
Program Savings (Lifetime mmbtu)
Low Income MF Weatherization 33,785 106,295 0 106,295 Res Weatherization (Support) 0 0 0 0 Large C&I Custom 66,229 0 0 0
Small C&I Custom 39,488 0 0 0
C&I GasNetworks 73,168 72,580 31,720 104,300 SC&I Multifamily Weatherization 37,819 24,415 0 24,415 Total 250,489 203,290 31,720 235,010

* Balance equals Budget/Goal minus Total spent minus Committed Funds Period 7/01/2010 to 11/18/2011