An Act To Lower Energy Costs and Increase Renewable Energy in Maine
Maine Legislature, Session 123, LD 2149
Committee: Utilities and Energy
Sponsors: PINGREE, BARTLETT, ADAMS, BEAUDETTE, BERRY, BLANCHARD, BLISS, BRAUTIGAM, BURNS, CAIN, CANAVAN, CAREY, CARTER, CONNOR, CONOVER, CROCKETT, CUMMINGS, DUCHESNE, EATON, EBERLE, FAIRCLOTH, FISCHER, FLETCHER, HA YES, HINCK, HOGAN, KOFFMAN, MARLEY, MAZUREK, NORTON, PEOPLES, PERRY, PIEH, PRATT, PRIEST, RECTOR, SCHATZ, SIMPSON, SIROIS, SMITH, SOCTOMAH, THERIAULT, TREAT, WATSON, WHEELER, BOWMAN, DAMON, DIAMOND, EDMONDS, MARTIN, MILLS, MITCHELL, ROTUNDO, SAVAGE
Amends: 35-A MRSA §3210-E, 10 MRSA §141, 30-A MRSA §4722

Legislative Document 
No. 2149 
H.P.1529 
House of Representatives, January 15, 2008 
An Act To Lower Energy Costs and Increase Renewable Energy in 
Maine 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by Representative PINGREE of North Haven. 
Cosponsored by Senator BARTLETT of Cumberland and 
!r/~ 
frI· 7J?tLC~{ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: ADAMS of Portland, BEAUDETTE of Biddeford, BERRY of Bowdoinham, 
BLANCHARD of Old Town, BLISS of South Portland, BRAUTIGAM of Falmouth, BURNS 
of Berwick, CAIN of Orono, CANAVAN of Waterville, CAREY of Lewiston, CARTER of 
Bethel, CONNOR of Kennebunk, CONOVER of Oakland, CROCKETT of Augusta, Speaker 
CUMMINGS of Portland, DUCHESNE of Hudson, EATON of Sullivan, EBERLE of South 
Portland, FAIRCLOTH of Bangor, FISCHER of Presque Isle, FLETCHER of Winslow, 
HA YES of Buckfield, HINCK of Portland, HOGAN of Old Orchard Beach, KOFFMAN of 
Bar Harbor, MARLEY of Portland, MAZUREK of Rockland, NORTON of Bangor, PEOPLES 
of Westbrook, PERRY of Calais, PIEH of Bremen, PRATT of Eddington, PRIEST of 
Brunswick, RECTOR of Thomaston, SCHATZ of Blue Hill, SIMPSON of Auburn, SIROIS of 
Turner, SMITH of Monmouth, SOCTOMAH of the Passamaquoddy Tribe, THERIAULT of 
Madawaska, TREAT of Hallowell, WATSON of Bath, WHEELER of Kittery, Senators: 
BOWMAN of York, DAMON of Hancock, DIAMOND of Cumberland, President EDMONDS 
of Cumberland, MARTIN of Aroostook, McCORMICK of Kennebec, MILLS of Somerset, 
MITCHELL of Kennebec, ROTUNDO of Androscoggin, SAVAGE of Knox. 
Be it enacted by the People of the State of Maine as follows: 
PART A 
Sec. A-I. 35-A MRSA §3210-E is enacted to read: 
§3210-E. Net energy 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Net energy" means the difference between the kilowatt-hours consumed by a 
customer and the kilowatt-hours generated by the customer's renewable generation 
facility over any time period determined as if measured by a single meter capable of 
registering the flow of electricity in 2 directions. 
B. 
"Net energy billing" means the billing and metering practice under which a 
customer is billed on the basis of net energy over the billing period, taking into 
account accumulated unused kilowatt-hour credits from the previous billing period. 
C. 
"Standard-offer provider" means a provider of standard-offer service chosen 
pursuant to rules adopted by the commission. 
D. "Transmission and distribution utility" means a person, and its lessees, trustees or 
receivers or trustees appointed by a court, owning, controlling, operating or managing 
a transmission and distribution plant for compensation within the State. 
2. Annualized customer net energy billing. A customer of a transmission and 
distribution utility that uses energy generated using a renewable fuel or technology as 
specified in section 3210, subsection 2, paragraph C, subparagraph (2), divisions (a) to 
(h) from a renewable generation facility with an installed capacity of 2 megawatts or less 
to serve its own electricity requirements may elect net energy billing. For purposes of 
this section, the renewable generation facility must be located on or in the vicinity of the 
customer's premises and used primarily to offset part or all of the customer's own 
electricity requirement. 
A. At the option of a customer, a transmission and distribution utility must bill on an 
annualized net energy basis according to this paragraph. 
(1) 
If the electricity generated during the billing period by the customer's 
renewable generation facility plus any kilowatt-hour credits from prior billing 
I 
periods exceed the customer's kilowatt-hour usage during the billing period, the 
excess must be applied to the customer's bill for the following billing period as a 
reduction in the customer's kilowatt-hour usage. 
(2) If the customer's kilowatt-hour usage exceeds the electricity generated by its 
renewable generation facility during the billing period plus any kilowatt-hour 
credits pursuant to subparagraph (1), the customer must be billed for the excess 
kilowatt-hour usage at the applicable retail rate for electricity service. 
(3) A customer may accumulate unused kilowatt-hour credits and apply them 
against kilowatt-hour usage over a 12-month period. At the end of each 12-
month period, the customer must be compensated for any remaining unused 
kilowatt-hour credits at the electric power supplier's or the basic generation 
service provider's avoided cost of wholesale power. 
(4) Net energy billing applies only to kilowatt-hour usage charges. A net energy 
billing customer is responsible for all other charges applicable to the customer's 
rate class and recovered either through fixed amounts or over units other than 
kilowatt-hours. 
B. A customer that has elected net energy billing may obtain generation service from 
any competitive electricity provider that agrees to provide service on a net energy 
basis. If the customer obtains service from the standard-offer provider, the standard-
offer provider must provide service on a net energy basis. 
3. Separate meters. Nothing in this section prohibits a transmission and distribution 
utility from installing additional meters to record purchases and sales separately; 
however, a customer that elects to be billed on a net energy basis may not be charged for 
the cost of the additional meters or other necessary equipment. 
4. Development of standard contract. Each transmission and distribution utility 
shall develop a standard contract for annualized customer net energy billing consistent 
with the provisions of this section. 
5. Notification required. A transmission and distribution utility shall notify the 
commission if the cumulative capacity of renewable generation facilities subject to the 
provisions of this section reaches 0.5% of its peak demand. Upon notification, the 
commission shall determine whether net energy billing should continue or be modified. 
6. Waiver. 
Upon the request of a person subject to this section or upon its own 
motion, the commission may, for good cause, waive certain requirements of this section 
as long as the waiver is not inconsistent with the purposes of this section. 
Sec. A-2. Development of statewide standards for interconnection. The 
Public Utilities Commission shall develop statewide standards for the interconnection of 
new homes' and businesses' renewable generation facilities with the energy grid. 
In 
developing standards under this section, the commission shall take into consideration 
those standards developed by other states and by professional associations for the 
advancement of technology. The standards developed pursuant to this section must allow 
customers to use a single, nondemand, nontime-differentiated meter. By January IS, 
2009, the commission shall submit the standards, together with any necessary 
implementing legislation, to the joint standing committee of the Legislature having 
jurisdiction over utilities and energy matters. After receipt and review of the standards, 
the joint standing committee may submit legislation to the First Regular Session of the 
124th Legislature. 
Sec. A-3. Cooperative ownership of small community renewable energy 
projects. The Public Utilities Commission shall adopt rules to allow communities to 
develop shared renewable energy facilities and to permit net energy billing to users 
connected to those facilities, regardless of the physical distance of the communities from 
the facilities. Rules adopted pursuant to this section are routine technical rules as defined 
in the Maine Revised Statutes, Title 5, chapter 375, subchapter 2-A. 
PARTB 
Sec. B-1. 10 MRSA §141S-J is enacted to read: 
§1415-J. Time-or-use meters; installation required 
Effective January I, 2009, any new construction of a commercial or residential 
building must include the installation of a time-of-use meter designed to monitor and 
record the amount of electricity used and the time of such use. 
Sec. B-2. Time-of-use meters; statewide distribution. The Public Utilities 
Commission shall develop a proposal to implement the statewide distribution of time-of-
use meters to all consumers of electric energy in the State by October 1, 2010. By 
January 15, 2009, the commission shall submit its proposal, together with any necessary 
implementing legislation, to the joint standing committee of the Legislature having 
jurisdiction over utilities and energy matters. After receipt and review of the proposal 
under this section, the joint standing committee may submit legislation to the First 
Regular Session of the 124th Legislature. 
Sec. B-3. Time-of-use rates. The Public Utilities Commission shall develop a 
proposal to authorize transmission and distribution utilities to charge time-of-use rates 
that vary depending on whether the energy consumption occurs during peak load times or 
off-peak load times. 
The proposal must include a provision that would allow the 
commission to grant a waiver from the variable rate structure for certain households and 
businesses that cannot adjust energy consumption around peak load times of day, 
including, but not limited to, retirees, home businesses, restaurants and any other entity 
that can show an inability to adjust energy consumption. By January 15, 2009, the 
commission shall submit its proposal, together with any necessary implementing 
legislation, to the joint standing committee of the Legislature having jurisdiction over 
utilities and energy matters. After receipt and review of the proposal under this section, 
the joint standing committee may submit legislation to the First Regular Session of the 
124th Legislature. 
PART C 
Sec. C-t. 30-A MRSA §4722, sub-§I, ~AA, as amended by PL 2007, c. 466, Pt. 
A, §50, is further amended to read: 
AA. Certify transfers of multifamily affordable housing property that qualify for the 
deduction under Title 36, section 5122, subsection 2, paragraph Z or Title 36, section 
5200-A, subsection 2, paragraph Q. The affordability restrictions that apply under 
this paragraph must be contained in a declaration signed by the transferee and 
recorded in the appropriate registry of deeds at the time of the sale or transfer. 
(1) 
For the purposes of this paragraph, "multifamily affordable housing 
property" means a decent, safe and sanitary dwelling, apartment building or other 
living accommodation that includes at least 6 units, that meets at least one of the 
following affordability restrictions and for which those affordability restrictions, 
as applicable, expire in 10 years or less from the date of the sale or transfer of the 
property: 
(a) At least 20% of the units have restricted rents affordable to households 
earning no more than 80% of the area median income as determined by the 
United States Department of Housing and Urban Development; 
(b) The property is assisted by the United States Department of Housing and 
Urban Development, the United States Department of Agriculture or the 
Maine State Housing Authority; or 
(c) The property qualifies for low-income housing credits under the United 
States Internal Revenue Code of 1986, Section 42. 
(2) For the purposes of this paragraph, property does not qualify as multifamily 
affordable housing property unless: 
(a) The transferee agrees to maintain the property as multifamily affordable 
housing property for an additional 30 years from the scheduled expiration; 
(b) 
If the existing federal, state or other assistance is not available to 
maintain the property as multifamily affordable housing property, the 
transferee agrees to ensure that 112 of the units are affordable to persons at 
60% of the area median income as determined by the United States 
Department of Housing and Urban Development for 30 years from the 
expiration of the then-existing affordability restrictions; or 
(c) The transferee agrees to an alternative affordability agreement approved 
by the Maine State Housing Authority; and 
Sec. C-2. 30-A MRSA §4722, sub-§l, ~B, as enacted by PL 2007, c. 326, §3, 
is amended to read: 
BB. Make a loan, or contract with a financial institution to make a loan on behalf of 
the Maine State Housing Authority, to payoff an existing loan or to pay amounts past 
due on an existing loan on an owner-occupied single-family residence to assist a 
homeowner who is in default of the existing loan or in danger oflosing the residence 
through foreclosure. Prior to receiving a loan under this paragraph, a homeowner 
must receive counseling with a 3rd-party, nonprofit organization approved by the 
United States Department of Housing and Urban Development, a housing financing 
agency of this State or the regulatory agency that has jurisdiction over the creditor~~ 
and 
Sec. C-3. 30-A MRSA §4722, sub-§l, ~CC is enacted to read: 
Cc. Administer a home energy audit program that provides low-interest loans to 
homeowners to make home heating and energy efficiency upgrades. 
Sec. C-4. Issuance of bonds. Pursuant to the Maine Revised Statutes, Title 30-A, 
chapter 201, the Maine State Housing Authority shall issue bonds in an amount not to 
exceed $5,000,000 to establish a home energy audit program and provide low-interest 
loans to homeowners In accordance with Title 30-A, section 4722, 
subsection 1, 
paragraph CC. 
SUMMARY 
Part A of this bill accomplishes the following. 
1. It incorporates into the Maine Revised Statutes rules adopted by the Public Utilities 
Commission regarding standards for net energy billing, except that it credits the customer 
for the excess kilowatt-hours and increases the maximum alJowed energy to be produced 
by private renewable energy facilities from 100 kilowatts to 2 megawatts. 
2. It requires the Public Utilities Commission to develop statewide standards for the 
interconnection of new homes' and businesses' renewable energy facilities with the 
energy grid. 
3. It requires the Public Utilities Commission to adopt rules to alJow communities to 
develop shared renewable energy facilities and to permit net energy billing to users 
connected to the facility, regardless of the physical distance of the communities from the 
facility. 
Part B ofthis bill accomplishes the following. 
1. It requires that, beginning January 1, 2009, any new construction of a commercial 
or residential building must include the installation of a time-of-use meter designed to 
monitor and record the amount of electricity used and the time of such use. 
2. It requires the Public Utilities Commission to develop a proposal to implement the 
statewide distribution of time-of-use meters to all consumers of electric energy in the 
State by October 1, 2010. 
3. It requires the Public Utilities Commission to develop a proposal to authorize 
transmission and distribution utilities to charge time-of-use rates that vary depending on 
whether the energy consumption occurs during peak load times or off-peak load times. 
The proposal must include a provision that would allow the commission to grant a waiver 
from the variable rate structure for certain households and businesses that cannot adjust 
energy consumption around peak load times of day. 
Part C of this bill accomplishes the following. 
1. It authorizes the Maine State Housing Authority to issue bonds in an amount not 
to exceed $5,000,000 to establish a home energy audit program and to provide low-
interest loans to homeowners to make home heating and energy efficiency upgrades.