An Act To Establish the Regional Greenhouse Gas Initiative Act of 2007
Maine Legislature, Session 123, LD 1851
Committee Amendment CA_A_H321 (House)
Amends: 5 MRSA §12004-G, 5 MRSA §12004-I, 35-A MRSA §10008, 35-A MRSA §10007, 35-A MRSA §3211-A

COMMITTEE AMENDMENT ·A" to H.P. 1290, L.D. 1851, Bill, "An Act To 
Establish the Regional Greenhouse Gas Initiative Act of 2007" 
Amend the bill by inserting after the enacting clause and before section 1 the 
following: 
19· 
' 
'Sec. 1. 5 MRSA §12004-G, sub-§13-F is enacted to read: 
13-F. 
Environment/ 
Natural 
Resources and 
Public Utilities 
Energy and 
Carbon Savings 
Trust 
Legislative per 
diem plus 
expenses 
Amend the bill by striking out section 1 and inserting the following: 
'Sec. 1. 5 MRSA §12004-I, sub-§20-B is enacted to read: 
20-B. 
Environment: 
Natural 
Resources and 
Public Utilities 
Maine Energy 
Conservation 
Board 
$50 per day plus 
expenses 
35-A MRSA 
§10008 
35-A MRSA 
§10007 
Sec. 2. 35-A MRSA §3211-A, sub-§l, ,C, as amended by PL 2003, c. 487, §2, 
is repealed. 
Sec.3. 35-A MRSA §3211-A, sub-§l,~, as enacted by PL 2001, c. 624, §4, is 
repealed.' 
Amend the bill by striking out section 3 and inserting the following: 
COMMITTEE AMENDMENT 
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to H.P. 1290, L.D. 1851 
'Sec. 3. 35-A MRSA §3211-A, sub-§2, as amended by PL 2005, c. 569, §§1 and 
2, is further amended to read: 
( 
2. Programs. The commission shall develop and, to the exieRt of available fHRds, 
implement conservation programs in aeeordaflee with this seetioR to help reduce energy 
costs for electricity consumers in the State by the maximum amount possible. The 
commission shall establish and, on a schedule determined by the commission, revise 
objectives and an overall energy strategy for conservation programs. Conservation 
programs implemented by the commission must be consistent with the objectives and an 
overall energy strategy developed by the commission and be cost effective, as defined by 
the commission by rule or order. In defining "cost effective," the commission may 
consider the extent to which a program promotes sustainable economic development or 
reduces environmental damage to the extent the commission can quantify or otherwise 
reasonably identify such effects. Consistent with the other requirements of this section, 
the commission, in adopting and implementing conservation programs, shall seek to 
encourage efficiency in electricity use, provide incentives for the development of new, 
energy-efficient business activity in the State and take into account the costs and benefits 
of energy efficiency and conservation to existing business activity in the State. 
A. 
The commission shall consider, without limitation, conservation programs that: 
(1) Increase consumer awareness of cost -effective options for conserving energy; 
(2) Create more favorable market conditions for the increased use of efficient 
products and services; 
(3) 
Promote sustainable economic development and reduced environmental 
damage; and 
(4) Reduce the price of electricity over time for all consumers by achieving 
reductions in demand for electricity during peak use periods~; and-
(5) Reduce total energy costs for electricity consumers in the State by increasing 
the efficiency with which electricity is consumed. 
B. 
The commission, with regard to the assessment imposed under subsection 4, 
shall: 
(I) Target at least 20% of available funds to programs for low-income residential 
consumers, as defined by the commission by rule; 
(2) Target at least 20% of available funds to programs for small business 
consumers, as defined by the commission by rule; and 
(3) 
To the greatest extent practicable, apportion remaining available funds 
among customer groups and geographic areas in a manner that allows all other 
customers to have a reasonable opportunity to participate in one or more 
conservation programs. 
C. 
The commission shall hold at least one public hearing and invite, accept, review 
and consider comments and suggestions from interested parties prior to adopting or 
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COMMITTEE AMENDMENT·A "to H.P. 1290, L.D. 1851 
substantially revising conservation programs or the objectives and overall strategy for 
conservation programs. 
D. 
The commission shall monitor conservation planning and program cievelopment 
activities in the region and around the country. 
E. 
The commission shall implement conservation programs by contracting with 
service providers in accordance with subsection 3. 
F. 
The commission shall monitor and evaluate the delivery of conservation 
programs by service providers and assess the cost-effectiveness of programs in 
meeting the objectives and overall strategy established by the commission. 
G. 
The commission, to the extent possible, shall coordinate its efforts with other 
agencies of the State with energy-related responsibilities. 
H. 
The commission shall secure sufficient technical and administrative expertise to 
carry out its responsibilities pursuant to this section by: 
(1) Contracting with appropriate entities with relevant expertise and experience; 
(2) 
Establishing one or· more advisory groups composed of persons with 
relevant expertise and experience; or 
(3) Any other reasonable means developed by the commission. 
1. 
The commission may coordinate its efforts under this section with similar efforts 
in other states in the northeast region and enter into agreements with public agencies 
or other entities in or outside of the State for joint or cooperative conservation 
planning or conservation program delivery, if the commission finds that such 
coordination or agreements would provide demonstrable benefits to citizens of the 
State and be consistent with this section, the conservation programs and the 
objectives and overall strategy for the conservation programs. 
J. 
The commission shall encourage school facility managers to complete an energy 
efficiency training and certification program established and conducted by the 
commission under this section. To the extent the commission determines necessary 
and appropriate to meet the goals of this paragraph, the commission may, in 
accordance with the requirements of this section, establish incentive mechanisms to 
encourage participation in this program. For purposes of this paragraph, "school 
facility managers" means persons employed by school administrative units in this 
State who are responsible for the design or operation of school administrative unit 
facilities or the heating, ventilation or air conditioning systems or equipment used in 
such facilities. 
K. The commission, in conjunction with the trustees of the Energy and Carbon 
Savings Trust, shall develop a triennial energy efficiency and conservation plan in 
accordance with section 10007, subsection 6. The plan must seek to address the needs 
of all customer classes of the transmission and distribution utilities in the public 
interest.' 
Amend the bill by striking out section 5 and inserting the following: 
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COMMITTEE AMENDMENT" A" to H.P. 1290, L.D. 1851 
'Sec. 5. 35-A MRSA §3211-A, sub-§4, as amended by PL 2005, c. 459, §1, is 
further amended to read: 
4. Funding level; base assessment. The commission shall assess transmission and 
distribution utilities to collect funds for conservation programs and administrative costs in 
accordance with this subsection and shall make other assessments in accordance with 
subsection 4-A. The amount of all assessments by the commission under this subsection 
plus expenditures of a transmission and distribution utility associated with prior 
conservation efforts must result in tetal conservation expenditures by each transmission 
and distribution utility, not including expenditures on assessments under subsection 4-A, 
that:- are fixed at a rate 0[0.145 cent per kilowatt-hour. 
A. 
Are based OR the rele'raRt eharaeteristies of the traRsmissioR aRd distribHtioR 
utility's serviee territo,)', iReludiRg the Reeds ofeustomers; 
B. 
Do Rot exeeed .145 eeRt per kilowatt hour~ 
C. 
except as provided ia subsectioR 7 A, are RO less !baR 0.5% of the total 
transmissioR aRd distributioR re'reRues of the traRsmissioR aRd distributioR utility; 
aRd 
D. 
Are proportioRally equi'.'aleRt OR a per kilowatt hour basis to the total 
eORservatioR expeRditures of other traRsmissioR aRa distribHtioR utilities, uRless tDe 
commissioa fiRds that a differeat amouRt is justified. ' 
Amend the bill by striking out section 6 and inserting the following: 
'Sec. 6. 35-A MRSA §3211-A, sub-§4-A is enacted to read: 
4-A. 
Other assessments on transmission and distribution utilities. 
The 
commission shall assess each transmission and distribution utility based on the utility's 
gross operating revenue as necessary to realize all available energy efficiency and 
demand reduction resources in this State that are cost-effective, reliable and feasible after 
consideration of the following: 
A. The amount of assessments pursuant to subsection 4 and their payment schedule; 
B. 
The funding for conservation programs provided by the Energy and Carbon 
Savings Trust pursuant to section 10008; 
C. The amount of payments received from a forward capacity market, as defined in 
section 10008, subsection 1, paragraph B, as a result of conservation programs 
funded under this chapter and under section 10008; and 
D. Any other predictable sources o[funding for or investment in energy conservation 
and efficiency programs. 
For the purposes of this subsection, "gross operating revenue" means revenue derived 
from filed rates, except from sales for resale. The commission may correct any errors in 
the assessments under this subsection by means of a credit or debit to the following year's 
assessment rather than reassessing all utilities in the current year. The commission shall 
determine the assessments under this subsection annually prior to May 1 st and assess 
each utility for its pro rata share for expenditure, including funds for energy conservation 
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COMMITTEE AMENDMENT "A" to H.P. 1290, L.D. 1851 
programs, during the fiscal year beginning July 1 st. The commission may not charge any 
assessment under this subsection until the Legislature has approved the commission's 
budget in accordance with section 116. The commission shall separatel¥ identify any 
recommended assessment under this subsection in its presentation of budget 
recommendations contained in any current services budget legislation and any 
supplemental budget legislation to the joint standing committee of the Legislature having 
jurisdiction over public utilities matters pursuant to section 116. Each utility shall pay the 
assessment charged to that utility under this subsection on the same schedule that 
payment of assessments under subsection 4 is required.' 
Amend the bill by striking out section 7 and inserting the following: 
'Sec. 7. 35-A MRSA §3211-A, sub-§4-B is enacted to read: 
4-B. 
Transmission and subtransmission_ voltage level. 
After July l, 2007, 
electricity customers receiving service at transmission and subtransmission voltage levels 
are not eligible for new conservation programs undertaken under this section, and those 
customers are not required to pay in rates any amount associated with the assessment 
imposed on transmission and distribution utilities under subsection 4 or subsection 4-A. 
To remove the amount ofthe assessment under subsection 4, the commission shall reduce 
the rates of such customers that are in effect on July l, 2007 by 0.145 cent per kilowatt-
hour at the time of the first rate adjustment following the effective date of this subsection. 
For the purposes of this section, "transmission voltage levels" means 44 kilovolts or 
more, and "subtransmission voltage levels" means 34.5 kilovolts. 
Sec. 8. 35-A MRSA §3211-A sub-§5-B is enacted to read: 
5-B. Support for Maine Energy Conservation Board. Notwithstanding any other 
provision of this section, the Maine Energy Conservation Board established under section 
10007 may apply to the commission for funding from the program fund for staff support 
for the board; and, upon application of the board, the commission may provide up to 1 % 
of the total amount in the program fund to the board for that purpose.' 
Amend the bill by striking out section 9 and inserting the following: 
'Sec. 9. 35-A MRSA §3211-A, sub-§9, as enacted by PL 2001, c. 624, §4, is 
repealed and the following enacted in its place: 
9. Ratemaking and cost recovery. The assessments charged to utilities under this 
section are just and reasonable costs for rate-making purposes and must be reflected in 
the rates of transmission and distribution utilities.' 
Amend the bill by striking out section 10 and inserting the following: 
'Sec. 10. 35-A MRSA §10007 is enacted to read: 
-§10007. Maine Energy Conservation Board 
1. Establishment. The Maine Energy Conservation Board, as established in Title 5, 
section 12004-1, subsection 20-B and referred to in this section as "the board," is created 
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.. to H.P. 1290, L.D. 1851 
to assist the commission and the trustees of the Energy and Carbon Savings Trust in the 
development, coordination and integration of planning for the State's energy conservation 
efforts and to provide advice and counsel to the commission and the Energy and Carbon 
Savings Trust on energy conservation and carbon dioxide reduction matters! 
2. Composition of board. The board is composed of 7 voting members, none of 
whom may have a financial interest in energy efficiency or conservation delivery: 
A. 
A member representing commercial electrical consumers, appointed by the 
commission; 
B. 
A member representing industrial electrical consumers, appointed by the 
commission; 
C. A representative of the Office of the Public Advocate who represents the interest 
of residential electrical consumers; 
D. 
A member with significant knowledge of environmental issues and climate 
change policy appointed by the commission; 
E. 
A member representin~ small businesses in the State, appointed by the 
commission; 
F. The Commissioner of Envirenmental Protection or the commissioner's designee; 
and 
G. 
The director of the Governor's Office of Energy Independence and Security 
within the Executive Department or the director's designee. 
The commission may also appoint 3 nonvoting members representing transmission and 
distribution utilities. The chair of the commission and one trustee of the Energy and 
Carbon Savings Trust, appointed by the trustees, serve as nonvoting members. 
3. Terms; chair. The term of a voting member of the board is 3 years. If a voting 
member is unable to complete the term, the commission shall appoint a replacement for 
the remainder of the unexpired term. A voting member may serve a maximum of 2 
consecutive terms. The board shall select a chair and vice-chair from the board's voting 
membership. 
4. Meetings; voting. The board may meet up to 6 times annually. If a voting 
member of the board is absent from more than one meeting without notice to the chair or 
vice-chair, the commission may appoint a replacement. 
An affirmative vote of 5 
members is required for any action. 
5. 
Staff. 
The board may contract for technical expertise in energy efficiency 
programs and administrative services and may apply to the commission and to the Energy 
and Carbon Savings Trust for funding to support such staff services. The board may 
expend for such staff services an amount not to exceed 1 % of the total amount in the 
conservation program fund established under section 3211-A, subsection 5 and the 
Energy and Carbon Savings Trust Fund established in section 10008. 
6. Triennial energy efficiency and conservation plan. The board shall vote on a 
detailed triennial energy efficiency and conservation plan developed jointly by the 
commission and the trustees of the Energy and Carbon Savings Trust pursuant to section 
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to H.P. 1290, L.D. 1851 
3211-A, subsection 2, paragraph K and section 10008, subsection 7, referred to in this 
subsection as "the plan," and make a full report of the vote to the commission and the 
trustees of the Energy and Carbon Savings Trust in accordance with this subsection. 
/ 
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A. In developing the plan, the commission and the trustees of the Energy and Carbon 
Savings Trust shall consult the board and provide the opportunity for the board to 
provide input on drafts of the plan. 
B. The board may review efficiency and conservation program budget allocations of 
the commission and the Energy and Carbon Savings Trust and provide general 
guidance to the commission and the trustees of the Energy and Carbon Savings Trust 
on program implementation. 
C. The board may present any recommended changes to the plan to the commission 
and the trustees of the Energy and Carbon Savings Trust for review and final 
approval. 
The commission and the trustees may adopt modifY or reject any 
recommended changes presented by the board. 
D. 
With respect to efficiency and conservation programs administered by the 
commission, the first plan must be developed and adopted to address all programs 
implemented on or after July 1, 2010.' 
Amend the bill by striking out section 11 and inserting the following: 
'Sec. 11. 35-A MRSA §10008 is enacted to read: 
§10008. Energy and Carbon Savings Trust 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Carbon dioxide allowance" has the same meaning as in Title 38, section 580-A, 
subsection 2. 
B. 
"Forward capacity market" means the program established by the regional 
transmission organization that is in effect on the effective date of this paragraph and 
compensates providers of electrical capacity with payments for the availability or 
reduction of capacity as determined by the regional transmission organization. 
C. "Regional transmission organization" means the independent systems operator 
that administers and oversees the wholesale electricity markets in which the State 
participates. 
D. "Trade association aggregator" means an entity that gathers individual members 
of a trade association together for the purpose of receiving electrical efficiency 
services or bidding on electrical efficiency contracts. 
E. "Trust" means the Energy and Carbon Savings Trust established in subsection 2. 
F. "Trust fund" means the Energy and Carbon Savings Trust Fund established in 
subsection 2. 
G. "Trustee" means a trustee of the trust. 
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COMMITTEE AMENDMENT "A" to H.P. 1290, L.D. 1851 
2. Establishment of trust; trust fund. The Energy and Carbon Savings Trust and 
the Energy and Carbon Savings Trust Fund are established effective October 1, 2008 to 
support the goals and implementation of the carbon dioxide cap=and-trade program 
established under Title 38. section 580-B. The trust fund is established as(a nonlapsing 
fund administered by the trust for the purposes established in this section. The trust is 
authorized to receive, and shall deposit in the trust fund and expend in accordance with 
this section, revenue resulting from the sale of carbon dioxide allowances, pursuant to 
Title 38, section 580-B, and any forward capacity market or other capacity payments 
from the regional transmission organization that may be attributable to projects funded by 
the trust. The trust fund may not be used for any other purpose, and money in the trust 
fund is considered to be held in trust for the purposes of benefiting consumers. 
A. The commission shall appoint 3 trustees for the Energy and Carbon Savings 
Trust. The commission shall appoint a diverse set of trustees who possess knowledge 
of high-efficiency energy conservation programs, carbon reduction programs or 
policy or substantial management expertise. 
B. A trustee serves a 3-year term. If a trustee is unable to complete the term, the 
commission shall appoint a replacement for the remainder of the unexpired term. 
Trustees may serve a maximum of 2 consecutive terms. 
C. The trustees may meet periodically and may participate in all meetings of the 
Maine Energy Conservation Board, as established in section 10007. If a trustee is 
absent from more than one meeting of the trustees without notice. the commission 
may appoint a replacement. An affirmative vote of two-thirds of the trustees is 
required for any action. 
D. The trustees have a fiduciary duty to the customers of the State's transmission and 
distribution utilities in the administration of the trust fund. Upon accepting 
appointment as a trustee, each trustee must acknowledge the fiduciary duty to use the 
trust funds only for the purposes set forth in this section. 
E. The trustees shall ensure that the goals and objectives of the trust, as established 
in this section and in rules adopted by the trust, are carried out. The trustees shall 
represent the interests of the trust in the development of the triennial energy 
efficiency and conservation plan pursuant to section 10007. subsection 6. 
3. Trust inviolability. The trustees may take legal action in the name of the trust to 
oppose efforts to reduce, impair, postpone or terminate the amount of revenues arising 
from the regional greenhouse gas initiative established under Title 38, chapter 3-B. 
The State pledges to, contracts with, and agrees with the purchasers of carbon dioxide 
allowances and trustees for the proceeds of those allowances that neither the State nor any 
of its agencies, including the commission, may limit, alter, amend. reduce or impair the 
trust. its funds or any rights under the trust or ownership of the trust or security interest in 
the trust. The State acknowledges that such owners, holders and trustees may and will 
rely on this pledge, contract and agreement and that any such limitation, alteration, 
amendment. reduction or impairment without adequate provision will irreparably harm 
such owners, holders and trustees. 
4. 
Money invested. 
Any revenue received from the sale of carbon dioxide 
allowances, pursuant to Title 38. section 580-B, and any forward capacity market 
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COMMITTEE AMENDMENT" A" to H.P. 1290, L.D. 1851 
payments administered by the regional transmISSIon organization or other capacity 
payments that may be attributable to projects funded by the trust are the property of the 
trust and must be deposited in the trust fund. Money in the trust fund not currently needed 
to meet obligations under Title 38, section 580-B or for the purposes ofthis{section must 
be deposited with the Treasurer of State to the credit of the trust fund and may be 
invested as provided by law. Interest on these investments must be credited to the trust 
fund. 
5. Ceiling on energy efficiency spending. There is established a ceiling on energy 
efficiency spending from the trust equal to $5 per carbon dioxide allowance. Until that 
price ceiling is adjusted or removed, only the first $5 of each carbon dioxide allowance 
sold and deposited in the trust fund may be awarded to or directed to qualified projects 
for purposes of energy efficiency improvements. While the ceiling is in place, revenue 
received by the trust from an allowance value above $5 must be transferred to the 
commission for use used by the commission pursuant to sections 301 and 1322 for 
rebates to electric ratepayers calculated on a per-kilowatt-hour basis. 
6. Administration· of trust fund; expenditures; projects. The trust fund must be 
administered in accordance with this subsection. 
A. The trust fund must be administered and expenditures authorized by a program 
administrator selected by the trustees whose qualifications must include demonstrated 
expertise in the management of electricity efficiency programming and supervision of 
energy efficiency personnel. The administrator shall report to the trustees. The 
administrator shall hire and organize staff resources for the trustees. 
B. During the years 2009, 2010 and 2011, not less than 85% of the trust fund must be 
allocated for measures, investments and arrangements that reduce electricity 
consumption, and not more than 15% must be allocated for fossil fuel conservation 
measures, investments and arrangements. Subject to the apportionment between fossil 
fuel and electricity conservation pursuant to this subsection, the trust shall fund 
conservation programs that give priority to measures with the highest benefit-to-cost 
ratio, as long as cost-effective collateral efficiency opportunities are not lost, and that: 
(1) Reliably reduce greenhouse gas production by fossil fuel combustion in the 
State at the lowest cost in trust funds per unit of emissions; or 
(2) Reliably reduce the consumption of electricity in the State at the lowest cost 
in trust funds per kilowatt-hour saved. 
C. 
Expenditures from the trust fund relating to conservation of electricity and 
mitigation or reduction of greenhouse gases must be made predominantly on the basis 
of a competitive bid process for long-term contracts, subject to rules adopted by the 
trust. Rules adopted to implement the competitive bid process under this paragraph 
may not include an avoided cost methodology for compensating successful bidders. 
Bidders may propose contracts designed to produce greenhouse gas savings or 
electricity conservation savings, or both, on a unit cost basis. Contracts must be 
commercially reasonable and may require liquidated damages to ensure performance. 
Contracts must provide sufficient certainty of payment to enable commercial 
financing of the conservation measure purchased and its installation. 
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D. The trustees may target bid competitions in areas or to participants as they 
consider necessary, as long as the requirements of paragraph B are satisfied. 
E. Nonelectric savings programs must be used to maximize fossil-fueled energy 
efficiency and conservation and associated greenhouse gas reductions, subject to the 
apportionment between fossil fuel and electricity conservation set forth in paragraph 
B. 
F. The size of a project funded by the trust is not limited as long as funds are 
awarded to maximize energy efficiency and support greenhouse gas reductions and to 
fully implement the triennial energy efficiency and conservation plan developed by 
the commission and the trustees pursuant to section 10007, subsection 6. 
G. No more than 5% of trust fund receipts in anyone year may be used for the total 
administrative costs: 
(1) Of the trust related to this section; 
(2) Of the Department of Environmental Protection in administering the 
allowance auction under Title 38, chapter 3-B; and 
(3) Of the Attorney General, including activities pertaining to the tracking and 
monitoring of allowance trading activity and managing and evaluating the trust's 
funding of conservation programs. 
Of the trust fund receipts used for administrative costs under this paragraph, no more 
than 40% in anyone year may be used for the administration of the trust. 
H. In order to minimize administrative costs and maximize program participation 
and effectiveness, the trustees and the commission shall, to the greatest extent 
feasible, coordinate the delivery of and make complementary the energy efficiency 
programs under this section, section 3211-A and section 321 O-C. 
I. Notwithstanding Title 5, section 1831, the trustees are not subject to rules adopted 
by the State Purchasing Agent in selecting service providers pursuant to this section. 
The trustees shall consider delivery of efficiency programs by means of contracts 
with service providers that participate in competitive bid processes for reducing 
energy consumption within individual market segments or for particular end uses. 
J. 
A trade association aggregator is eligible to participate in competitive bid 
processes under this subsection. 
K. 
Notwithstanding any other provision of this section, the Maine Energy 
Conservation Board established under section 10007 may apply to the trust for 
funding from the trust fund for staff support for the board, and upon application of 
the board the trust may provide up to I % of the total amount in the trust fund in any 
fiscal year to the board for that purpose. 
L. 
Trust fund receipts may fund research approved by the Department of 
Environmental Protection in an amount of up to $100,000 per year to develop new 
categories for carbon dioxide emissions offset projects, as defined in Title 38, section 
580-A, subsection 6, that are located in the State. Expenditures on research pursuant 
to this paragraph are not considered administrative costs under paragraph G. 
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COMMITTEE AMENDMENT" Pro. to H.P. 1290, L.D. 1851 
7. Triennial energy efficiency and conservation plan. The trustees, in conjunction 
with the commission, shall develop a triennial energy efficiency and conservation plan in 
accordance with section 10007, subsection 6. 
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8. Rulemaking. The trustees shall adopt rules for establishing and administering the 
trust, the trust fund and its programs. These rules must include: 
A. 
Provisions for the expenditure of funds, including, but not limited to, the 
development of program budgets, criteria for energy efficiency and conservation 
programs and other consumer benefit programs, the process for project selection and 
approval, minimum requirements for project monitoring and verification and the cost-
effectiveness tests to be used for measuring and comparing program benefits and 
costs subject to subsection 6, paragraph B; and 
B. Provision for the independent evaluation of program expenditures to ensure cost-
effectiveness of projects to improve energy efficiency or to reduce greenhouse gases. 
Rules adopted pursuant to this subsection are major substantive rules pursuant to Title 5, 
chapter 375, subchapter 2-A.' 
Amend the bill in section 13 in §580-A by inserting after subsection 7 the following: 
'8. Combined cycle system. "Combined cycle system" means a system composed 
of one or more combustion turbines, heat recovery system generators and steam turbines 
configured to improve overall efficiency of electrical generation or steam production.' 
Amend the bill in section 13 in §580-A to renumber the subsections to read 
consecutively. 
Amend the bill in section 13 in §580-B by striking out subsections 6, 7 and 8 and 
inserting the following: 
'6. 
Waiver of enforcement; suspension of compliance obligation. 
The 
commissioner has authority, under the exceptional circumstances set out in paragraphs A 
and B, to waive or suspend requirements of this chapter. 
A. If the regional greenhouse gas initiative results in price levels for allowances that 
will result in immediate and irreparable harm to the operations of a carbon dioxide 
budget unit regulated under this chapter, including but not limited to the termination 
of business at that location, the commissioner may, in consultation with the Attorney 
General and the chair of the Public Utilities Commission, grant a temporary waiver of 
enforcement not to exceed one year for any violation by an individual regulated 
carbon dioxide budget unit of a requirement ofthis chapter. 
B. In cases of emergency events that are beyond the control of a carbon dioxide 
budget unit, the commissioner may temporarily suspend the compliance obligation 
under a particular permit until such time as the emergency no longer is in effect. 
The department shall adopt rules for the implementation of this subsection. Rules adopted 
pursuant to this subsection are major substantive rules as defined in Title 5, chapter 375, 
subchapter 2-A and must be submitted to the Legislature by January 15,2008 for review 
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COMMITTEE AMENDMENT .. It" to H.P. 1290, L.D. 1851 
by the Joint Standing Committee on Natural Resources during the Second Regular 
Session of the 123rd Legislature. 
7. 
Allocation of carbon dioxide emissions allowances. The department shall 
allocate 100% of the annual carbon dioxide emissions allowances for public benefit to 
produce funds for carbon reduction and energy conservation, as specified in Title 35-A, 
section 10008. Except as provided in subsection 8, the department shall sell the carbon 
dioxide emissions allowances at public auction, in accordance with rules adopted under 
subsection 4. Revenue resulting from the sale of allowances must be deposited in the 
Energy and Carbon Savings Trust Fund established under Title 35-A, section 10008. 
8. Combined heat and power incentive; set aside. The department shall set aside a 
portion of the State's annual carbon dioxide emissions allowances in an allowance 
account for carbon dioxide budget units that are combined heat and power units and are 
located at integrated manufacturing facilities. The department shall use these allowances 
for existing carbon dioxide budget units to reflect only that portion of each unit's 
emissions related to electricity and thermal power generated at a carbon dioxide budget 
unit that is a combined heat and power unit, whether it is a combined cycle system or 
other energy generation configuration of which the carbon dioxide budget unit is a part, 
that are not transmitted across the facilities of a transmission and distribution utility. 
The department shall adopt rules setting forth the proper treatment of combined heat and 
power units. The rules may distinguish between combined heat and power units that 
commence operation after July 1, 2007 and those that commence operation before July 1, 
2007. Rules adopted pursuant to this subsection are routine technical rules as defined in 
Title 5, chapter 375, subchapter 2-A.' 
Amend the bill in section 13 in §580-B by striking out subsection 10 and inserting the 
following: 
'10. Annual report. The department and the trustees of the Energy and Carbon 
Savings Trust established pursuant to Title 35-A. section 10008 shall submit a joint report 
to the joint standing committees of the Legislature having jurisdiction over natural 
resources matters and utilities and energy matters by March 15, 2009 and each year 
thereafter. The report must assess and address: 
A. The reductions of greenhouse gas emissions from carbon dioxide budget units, 
conservation programs funded by the Energy and Carbon Savings Trust pursuant to 
Title 35-A, section 10008 and carbon dioxide emissions offset projects; 
B. The improvements in overall carbon dioxide emissions and energy efficiency 
from sources that emit greenhouse gases including electrical generation and fossil 
fuel fired units; 
C. The maximization of savings through systemic energy improvements statewide; 
D. Research and support of new carbon dioxide offset allowance categories for 
development in the State; 
E. Management and cost-effectiveness of the State's energy conservation and carbon 
reduction programs and efforts funded by the Energy and Carbon Savings Trust 
established pursuant to Title 35-A, section 10008; and 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT '11 " 
to H.P. 1290, L.D. 1851 
F. The extent to which funds from the Energy and Carbon Savings Trust established 
pursuant to Title 35-A, section 10008 serve customers from all classes of the State's 
transmission and distribution utilities. 
The department and the trustees of the Energy and Carbon Savings Trust may include in 
the report any proposed changes to the program established under this chapter. 
The joint standing committee of the Legislature having jurisdiction over natural resources 
matters may submit legislation relating to areas within the committee's jurisdiction in 
connection with the program. The joint standing committee of the Legislature having 
jurisdiction over utilities and energy matters may submit legislation relating to areas 
within the committee's jurisdiction in connection with the program.' 
Amend the bill by striking out sections 14 and 15 and inserting the following: 
'Sec. 14. Major substantive rulemaking; authority for legislation. Major 
substantive rules provisionally adopted pursuant to the Maine Revised Statutes, Title 
35-A, section 10008 must be submitted to the Legislature by January 15, 2009 for review 
by the joint standing committee of the Legislature having jurisdiction over utilities and 
energy matters during the First Regular Session of the 124th Legislature. The joint 
standing committee is authorized to.submit legislation to the First Regular Session of the 
124th Legislature regarding establishment and administration of the Energy and Carbon 
Savings Trust. 
Sec. 15. Ceiling on energy efficiency spending. Eight months prior to the 
expiration of the first compliance obligation period established under rules of the 
Department of Environmental Protection pursuant to the Maine Revised Statutes, Title 
38, section 580-B, the Public Utilities Commission, following the receipt of public input 
and consultation with the trustees of the Energy and Carbon Savings Trust under Title 
35-A, section 10008 and based on an analysis of the efficacy of energy efficiency, rebates 
or other funded purposes in reducing energy costs, shall provide its recommendation to 
the joint standing committee of the Legislature having jurisdiction over utilities and 
energy matters regarding changing or removing the energy efficiency spending ceiling 
established in Title 35-A, section 10008, subsection 5.' 
Amend the bill by striking out sections 17 and 18 and inserting the following: 
'Sec. 17. 
Report; feasibility of consolidating energy efficiency 
responsibilities. The Office of the Public Advocate shall study the feasibility of 
integrating the programmatic responsibilities and organizational structure and functions 
with respect to energy efficiency and conservation within the Public Utilities Commission 
and the Energy and Carbon Savings Trust under Title 35-A, section 10008. In its study, 
the Office of the Public Advocate shall also consider the responsibilities of the Maine 
Energy Conservation Board, established under Title 35-A, section 10007, in relation to 
the Public Utilities Commission and the Energy and Carbon Savings Trust. The Office of 
the Public Advocate shall submit a report of its findings, including any recommended 
legislation, by January 15,2008 to the Joint Standing Committee on Utilities and Energy. 
After receipt and review of the report, the committee may submit legislation on this issue· 
to the Second Regular Session of the 123rd Legislature. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT .. A " 
to H.P. 1290, L.D. 1851 
Sec. 18. Staggered terms. Notwithstanding the Maine Revised Statutes, Title 
35-A, section 10007, subsection 3, ofthe original appointments of voting members of the 
Maine Energy Conservation Board, one member serves an initial term of one year, one 
member serves an initial term of2 years and one member serves an initial term of3 years. 
An initial term of one or 2 years may not be considered a full term for purposes of 
limiting the number of terms for which a member may serve. 
Sec. 19. Temporary transfer of funds authorized. For purposes of funding 
activities of the Energy and Carbon Savings Trust under the Maine Revised Statutes, Title 
35-A, section 10008, the Public Utilities Commission may, upon request of the trust, 
transfer to the Energy and Carbon Savings Trust Fund, established pursuant to Title 35-A, 
section 10008, subsection 2, on October 1, 2008, up to $175,000 of previously collected 
but unallocated funds in the conservation program fund under Title 35-A, section 321 I-A, 
subsection 5. Notwithstanding any other provision oflaw, there is no limitation on the use 
of funds transferred to the trust under this section for the administrative costs of the trust. 
Once the trust has collected $175,000 in the Energy and Carbon Savings Trust Fund 
through the sale of carbon dioxide emissions allowances and any forward capacity market 
or other capacity payments from the regional transmission organization that may be 
attributable to projects funded by the trust, the trust shall transfer to the conservation 
program fund an amount equal to the amount transferred from the conservation program 
fund to the trust under this section. 
Sec. 20. Rulemaking; legislative direction. 
1. Because the State has a number of integrated manufacturing facilities that produce 
electricity and heat or steam for use in manufacturing other products and that may sell 
electricity transmitted on the electric grid, rules adopted by the Department of 
Environmental Protection pursuant to the Maine Revised Statutes, Title 38, chapter 3-B 
must be designed in a way that recognizes the highly efficient production and 
consumption of energy at these facilities, prevents harm from regulatory uncertainty and 
unintended or unnecessary effects on these facilities and ensures their availability, as 
needed from time to time, to enhance the reliability ofthe electric grid serving this State. 
2. Because it is the Legislature'S intent that all revenues derived from the sale of 
carbon dioxide emissions allowances be used for high-efficiency electricity and fossil 
fuel conservation to reduce greenhouse gases and minimize the costs of carbon reduction 
to Maine electric consumers, rules adopted by the Energy and Carbon Savings Trust 
under Title 35-A, section 10008 must be designed to ensure that proceeds deposited in the 
Energy and Carbon Savings Trust Fund accruing from the sale of carbon dioxide 
emissions allowances be expended solely for energy efficiency and related improvements 
that serve to enhance the reliability of the State's electric grid. 
3. Rules adopted by the Department of Environmental Protection pursuant to Title 
38, chapter 3-B must establish a system under which proceeds from the sale of carbon 
dioxide emissions allowances may be returned to the electric customers as direct credits 
on their bills at times of heightened price pressure in regional allowance markets, thereby 
ameliorating grid instability at those times. 
4. Because certain carbon dioxide budget units have substantially reduced carbon 
dioxide emissions from their facilities prior to the effective date of this Act and operate as 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT .. p" to H.P. 1290, L.D. 1851 
highly efficient resources, rules adopted by the Department of Environmental Protection 
pursuant to Title 38, chapter 3-B must require such carbon dioxide budget units to meet 
only the compliance obligation for that portion of power sold to the grid and require that 
allowances associated with such units' so-called "behind-the-meter" electricil generation 
must be retired from the system. Such rules must be designed to recognize that full 
operation of generating units in existence on the effective date of this Act, including 
highly efficient cogeneration facilities, is essential for the stability of the State's electric 
grid at times of peak demand for electricity.' 
Amend the bill by inserting after section 19 the following: 
'Sec. 20. Appropriations and allocations. The following appropriations and 
allocations are made. 
PUBLIC UTILITIES COMMISSION 
Conservation Administration Fund 0966 
Initiative: Provides funds for 2 Utility Analyst positions and general operating expenses. 
OTHER SPECIAL REVENUE FUNDS 
2007-08 
2008-09 
POSITIONS - LEGISLATIVE COUNT 
2.000 
2.000 
Personal Services 
$167,106 
$236,277 
All Other 
$15,087 
$13,599 
OTHER SPECIAL REVENUE FUNDS TOTAL 
$182,193 
$249,876 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment makes the following changes to the bill. 
1. It amends the provision of the bill regarding additional assessments on 
transmission and distribution utilities to fund efficiency programming to require that prior 
to making such assessments the Public Utilities Commission shall consider: the amount 
and timing of the existing assessments to fund conservation programs; the funding for 
conservation programs through the Energy and Carbon Savings Trust; forward capacity 
market payments; and other predictable sources of funding for or investment in energy 
conservation and efficiency programs. It also specifies that any such assessments may 
not be charged until the Legislature has approved the commission's budget and requires 
that the commission identify these assessments in its presentation of its budget 
recommendations in any current services budget legislation or supplemental budget 
legislation. It specifies that these additional assessments must be paid on the same 
schedule that payment of assessments to the commission is required for the current 
conservation program assessment. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" f+" to H.P.1290, L.D.ISSI 
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.. 
2. It amends the provisions of the bill regarding the Maine Energy Conservation 
Board in several ways. It changes the composition of the board as follows: it removes 3 
trustees of the Energy and Carbon Savings Trust from the board as voting members, 
while retaining one trustee on the board as a nonvoting member; and it idds as voting 
members a representative of small business, the Commissioner of Environmental 
Protection or the commissioner's designee and the director of the Governor's Office of 
Energy Independence and Security or the director's designee. The amendment removes 
the Public Utilities Commission's responsibility for staffing the board and authorizes the 
board to contract for technical expertise and administrative services. 
3. It amends the provision in the bill regarding the energy efficiency and conservation 
plan. It specifies that the plan must be a triennial plan developed jointly by the Public 
Utilities Commission and the trustees of the Energy and Carbon Savings Trust with input 
from the Maine Energy Conservation Board. It requires that the commission and the 
trustees consult the board in development of the plan and authorizes the board to submit 
recommended changes to the plan to the commission and the trustees for review. It 
requires the board to vote on the plan and make a full report of its vote to the commission 
and the trustees. It specifies that with respect to the commission's conservation programs, 
the first triennial plan must address programs implemented on or after July 1,2010. 
4. It amends the provisions of-the bill governing the Energy and Carbon Savings 
Trust to provide an effective date of October 1, 2008; to remove the Public Utilities 
Commission's responsibility for the management, administration, staffing and rulemaking 
of the trust and other trust-related responsibilities, while retaining the provision that 
requires the commission to appoint the 3 trustees; to specifY that legal action in the name 
of the trust is to be taken by the trustees; and to provide initial funding for the trust 
through a temporary transfer of funds from the conservation program fund to the trust to 
be repaid when the trust receives revenue as a result of the regional greenhouse gas 
initiative. 
5. It amends the circumstances under which the Commissioner of Environmental 
Protection may grant a waiver of enforcement for violations of the carbon dioxide cap-
and-trade program. The bill authorizes the commissioner to grant waivers if the regional 
greenhouse gas initiative auction results in price levels that are expected to be excessive, 
or that are excessive and will result, or that are expected to result, in immediate and 
irreparable harm. The amendment authorizes the commissioner to grant a temporary 
waiver of enforcement, not to exceed one year, if the regional greenhouse gas initiative 
results in price levels for allowances that will result in immediate and irreparable harm. 
6. It amends the provisions regarding combined heat and power units. The bill 
requires the Department of Environmental Protection to set aside a portion of the 
emissions allowances for carbon dioxide budget units that are combined heat and power 
units located at integrated manufacturing facilities. The amendment clarifies that the 
department is required to use the allowances for emissions related to electricity and 
thermal power generated at a unit that is a combined heat and power unit and to clarifY 
that a combined heat and power unit may be a combined cycle system or other energy 
generation configuration. It also clarifies language authorizing department rules to 
distinguish between combined heat and power units that commence operation after July 
1,2007 and those that commence operation before July 1,2007. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to H.P. 1290, L.D. 1851 
7. It amends the provIsIon regarding the submittal of an annual report by the 
Department of Environmental Protection and the Energy and Carbon Savings Trust by 
clarifying that the joint standing committees of the Legislature having jurisdiction over 
natural resources matters and utilities and energy matters may individually submit 
legislation relating to areas within each committee's jurisdiction. 
8. It adds a provision to the bill that directs the Office of the Public Advocate to 
study the feasibility of integrating the programmatic and organizational responsibilities 
and functions with respect to energy efficiency and conservation within the Public 
Utilities Commission and the Energy and Carbon Savings Trust and consider the 
responsibilities of the Maine Energy Conservation Board in relation to the commission 
and the trust. The Office of the Public Advocate is required to submit a report by January 
15, 2008 to the Joint Standing Committee on Utilities and Energy, and the committee 
may submit legislation on this issue to the Second Regular Session of the 123rd 
Legislature. 
9. It adds an appropriations and allocations section to the bill. 
FISCAL NOTE REQUJRED 
(See Attached) 
COMMITTEE AMENDMENT 
Approved: 05/23/07 
~ae 
123rd MAINE LEGISLATURE ( 
LD 1851 
LR2605(02) 
An Act To Establish the Regional Greenhouse Gas Initiative Act of 2007 
Fiscal Note for Bill as Amended by Committee Amendment "Ii " 
Committee: Natural Resources 
Appropriations/Allocations 
Other Special Revenue Funds 
Revenue 
Other Special Revenue Funds 
Transfers 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
2007-08 
$182,193 
$0 
$0 
2008-09 
$249,876 
$0 
$0 
Projections 
2009-10 
$803,102 
$16,062,040 
$0 
Projections 
2010-11 
$803,102 
$16,062,040 
$0 
This bill establishes a statewide carbon dioxide cap and trade program for fossil fuel fired electrical generating units 
within the state. It also authorizes the sale of carbon dioxide emission allowances and creates an Energy and Carbon 
Savings Trust effective October 1, 2008. The sale of carbon dioxide offset allowances will be deposited as dedicated 
revenue in the Energy and Carbon Savings Trust Fund. The specific amount and timing of the collection of the Other 
Special Revenue Funds revenue will depend on when the first auction takes place and the negotiated price per carbon 
dioxide emission allowance. Both are unknown at this time but the revenue could be collected at the end of fiscal year 
2008-09 or beginning in fiscal year 2009-10. 
Based on the assumption that allowances could trade at $3 per ton, the estimated annual revenue would be 
$16,062,040 beginning in fiscal year 2009-10, of which not more than 5% or $803,102 would be available for 
administrative costs for the DEP to administer allowance auctions, PUC-related activities of the Trust and the Maine 
Energy Conservation Board and for the AG for enforcement activities. This legislation allows the Maine Energy 
Conservation Board to hire staff and apply to the PUC and the Energy and Carbon Savings Trust for funding to 
support such staff. It allows the Board to expend up to I % of the Conservation Fund for staff services, which is 
estimated to be approximately $130,000 for fiscal year 2007-08, $160,000 for fiscal year 2008-09 and $170,000 iI 
fiscal year 2009-10. It also provides up to $100,000 annually from Trust Fund revenue to fund research approved by 
the DEP for the development of new categories of carbon dioxide emissions offset projects. 
LR2605(02) - Fiscal Note - Page 1 of 2 
This legislation authorizes a temporary transfer of up to $175,000 of funds from the PUC's Conservation Fund for use 
by the Energy and Carbon Savings Trust. It further provides for repayment of such funds as soon as sufficient funds 
have accumulated in the Energy and Carbon Savings Trust Fund. It also modifies existing assessment provisions of 
the PUC to achieve additional energy efficiency and demand reduction and exempts certain transmission and sub-
transmission classes of customers from paying certain assessments. 
( 
The bill imposes several requirements on the PUC that can not be absorbed within existing resources. The bill 
includes an additional Other Special Revenue Funds allocation of $182, 193 to the PUC in fiscal year 2007-08 and 
$249,876 in fiscal year 2008-09 to provide funds for two Utility Analyst positions to assist in meeting the 
requirements of this legislation. 
The Public Advocate within the Executive Department can absorb the additional costs associated with meeting 
specified study requirements set forth in the bill. 
LR2605(02) - Fiscal Note - Page 2 of2