An Act To Secure Maine's Energy Future Reference to the Joint SeleCt Committee on Maine's Energy Future suggested and ordered printed. .
Maine Legislature, Session 124, LD 0886
Sponsors: PINGREE, BARTLETT, ApAMS, BERRY, FITTS, HINCK, PIOTTI, SCHNEIDER
Amends: 5 MRSA §12004-G, 5 MRSA §12004-I, 30-A MRSA §4741, 35-A MRSA §4711, 35-A MRSA §10004, 35-A MRSA §10007, 35-A MRSA §10008, 35-A MRSA §10009, 35-A MRSA §10010, 35-A MRSA §100, 38 MRSA §580-B

FIRST P~GULAR SESSION-2009 . 
Legislative Document 
No. 886 
H.P.610 
House of Representatives, March 5,2009 
An Act To Secure Maine's Energy Future 
Reference to the Joint SeleCt Committee on Maine's Energy Future suggested and ordered 
printed. 
. 
Presented by Speaker PINGREE of North Haven. 
Cosponsored by Senator BARTLETT of Cumberland and 
111~~ 1J?1l!tLC~{ 
MILLICENT M. MacFARLAND 
C1~rk 
Representatives: ApAMS of Portland, BERRY of Bowdoinham, FITTS of Pittsfield, HINCK 
of Portland, MARTIN. of Eagle Lake, PIOTTI of Unity, Senators: President MITCHELL ·of 
Kennebec, SCHNEIDER of Penobscot. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRSA §12004-G, sub-§13-F, as enacted by PL 2007, c. 317, §1, is 
repealed. 
Sec. 2. 5 MRSA §12004-G, sub-§13-G is enacted to read: 
13-G. 
. Environment! 
Efficiency Maine 
Expenses Only 
Natural Resources Trust 
and Public 
Utilities 
35-AMRSA §10009 
Sec. 3. 5 MRSA §12004-I, sub-§20-B, as enacted by PL 2007, c: 317, §2, is 
repealed. 
Sec. 4. 30-A MRSA §4741, sub-§15, as amended by PL 1991, c. 871, §2, is 
further amended to read: 
15. 
State weatherization, conservation and fuel assistance agency for low-
income persons. The Maine State Housing Authority is designated the weatherization, 
energy conservation and fuel assistance agency for low-income- persons in the State and 
may apply for, receive, distribute and administer federal funds on behalf of the State for 
weatherization, energy .conservation and fuel assistance pursuant to the Weatherization 
Assistance for Low-income Persons Program administered through the United States 
Department of Energy and the Low-income Home Energy Assistance Program 
administered through the United States Department of Health and Human Services in 
accordance with rules adopted under the Maine Administrative Procedure Act; , 
Sec. 5. 35-A MRS A §3211-A, as amended by PL 2007, c. 317, §§3 to 13, is 
further amended to read: 
§3211-A. Electric efficiency and conservation programs 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A.. "Administrative costs" means costs of the commission trust that are funded 
pursuant to and associated with the implementation of this section, including, but not 
limited, to, costs of program planning and evaluation, costs of securing necessary 
expertise, costs associated with contract formation and administration and costs of 
monitoring and enforcing contractual obligations. 
B."Administration fund" means the conservation administration fund established by 
the commission trust pursuant to subsection 6. 
D. "Conservation programs" means energy efficiency programs developed by the 
commission trust pursuant to this section designed to reduce inefficient electricity 
use. 
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E. "Prior conservation efforts" means programs to promote conservation undertaken 
at the direction or with the authorization of the commission prior to March 1, 2002. 
F. 
"Program fund" means the conservation program fund established by the 
commission trust pursuant to subsection 5. 
G. "Service provider" means a public or private provider of energy conservation 
services or an entity selected by the commission trust to contract with such providers 
or otherwise arrange the delivery of conservation programs. 
I. "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. 
J. "Trust" means the Efficiency Maine Trust established in section 10009. 
K. "Complementary energy programs" means programs relating to energy other than 
programs to provide direct financial incentives, training' or education for the 
acquisition of energy efficiency resources. "Complementary energy programs" 
includes activities pursuant to subsection 5-A, research or general education about 
energy efficiency, interagency information-sharing forums and promotion of 
renewable energy. 
2. 
Programs. The commission trust shall develop and implement conservation 
programs to help reduce energy costs for electricity consumers in the State by the 
maximum amo:unt possible. The commission. trust' shall establish and, on a schedule 
determined by the commission trust, revise objectives and an overall energy strategy for 
conservation programs. Conservation programs implemented by the commission trust 
must be consistent with the objectives and an overall energy strategy developed by the 
trust and approved by' the commission and be cost effective, as defined by the 
commission trust by rule or order. In defining "cost effective," the commission trust may 
consider the extent to which a program promotes sustainable economic development or 
reduces environmental damage to the extent the commission trust can quantify or 
otherwise reasonably identify such effects. Consistent with the other requirements of this 
section, the commission trust, 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 conservati(;m to existing business activity in the State. 
A, 
The commission trust 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; 
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(3) 
Promote sustainable economic development and reduced environmental 
damage; 
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(4) 'Reduce the price of electricity over time for all consumers by achieving 
reouctions in demand for electricity during peak use periods; and 
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(5) Reduce total energy costs for electricity consumers in the State by increasing 
the efficiency with which electricity is consumed. 
B. The coinmission trust, with regard to the assessment imposed under subsection 4, 
shall: 
(1) 
Target at least 20% of ~ds to. programs for low-income residential 
consumers, as defined by the commission by rule; 
(2) Target at least 20% of funds to programs for small business consumers, as 
defmed by the commission by rule; and 
(3) 
To the greatest extent practicable, apportion remaining funds among 
customer groups and geographic areas in a mamier that allows all other customers 
to have a reasonable opportunity· to participate in one or more conservation 
programs . 
. C. The commission trust shall hold at least one public hearing and invite, accept, 
review and consider comments and suggestions from interested parties prior to 
adopting or substantially revising conservation programs or the objectives and overall 
strategy for conserVation programs .. 
D. 
The commission trust shan monitor' conservation pIanning and program 
development activities in the region and around the country .. 
E. The commission trust shall implement conservation programs by contracting with 
service providers in accordance with subsection 3. 
F. The commission trust 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 trust, to the extent possible, shall coordinate its efforts with the 
commission and other agencies of the State with energy-related responsibilities. 
H. 
The commission trust 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 trust. 
I. The commission trust 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 trust 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 trust shall encourage school facility managers to complete an 
energy efficiency training and certification program established and conducted by the 
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cormmsslOn under this section. 
To the extent the commission trust determines 
necessary and appropriate to meet the goals of this paragraph, the commission trust 
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 per:sons 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. 
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K. The com:rruSSlOn, in conjunction with the trustees of the Energy and Carbon 
Savings Trust, trust shall develop a triennial energy efficiency and conservation plan 
in accordance with section ~ 
10009, subsection e 5, paragraph D. The plan must 
seek to address the needs of all customer classes' of the transmission and distribution 
utiliti~sin the public interest. 
3. Implementation. The commission trust shall seek to implement the delivery of 
conservation programs in all regions of the State on an equitable basis and to citizens at 
all income levels. 
The commission trust may arrange the delivery of conservation 
programs by contracting with service providers. 
The commission trust shall select 
service providers in accordance with tllis subsection. 
,. 
A.. The commission trust shall select service providers through a competitive bidding 
process. 
B. To the extent practicable, the commission trust shall encourage the development 
of resources, infrastructure and skills within the State by giving preference to in-state 
service providers. 
C. Notwithstanding paragraph A: 
(1) 
The com:rruSSlOn trust may sdect a service provider for one or more 
conservation programs without employing a competitive bidding process if the 
commission trust finds that the selection of the service provider will promote the 
efficient and effective delivery of conservation programs and is consistent with 
the objectives and overall strategy of the conservation programs; and 
(2) 
For the delivery of conservation programs to low-income residential 
c\~msumers, the commission trust, without employing a co~petitive bidding 
process,. may utilize the delivery system for the Weatherization Assistance for 
Low-income Persons Program administered through the United States 
Department of Energy and the network of for-profit and not-for-profit entities 
who have held contracts with transmission and distribution utilities to deliver 
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conservation serv.ices to low-income and residential customers. 
Notwithstanding Title 5, section 1831, the commission trust is not subject to rules 
adopted by the State Purchasing Agent in selecting service providers pursuant to this 
subsection. The commission trust shall adopt rules establishing procedures governing the 
selection of service providers under this subsection. The coinmission trust shall consult 
with the State Purchasing Agent in developing the rules. 
A trade association aggregator is eligible to participate in competitive bid processes under 
this subsection. 
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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 imd distribution utility associated with prior 
conservation efforts must result in conservation expenditures by each transmission and 
distribution utility, not including expenditures on assessments under subsection 4-A, that 
are fixed at a rate of 0.145 eent per kilowatt-hour. 
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 subsectiofl4 and their payment schedule; 
B. 
The funding for conservation programs provided by the Energy and Carbon 
Savings Trust Regional Greenhouse Gas Initiative Trust Fund pursuant to section 
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10010; 
C. ' The amount of payments received from a forward capacity mai-lcet, as defmed in 
section ~1 
1 0, subsection 1, paragraph B, as a result of conservation programs 
funded under this chapter and under section ~ 
10010; and 
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D. Any other predictable sources of funding for or investment in energy conservation 
and efficienov programs. 
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For the purposes of this subsection, 'igross op'erating revenue" means revenue derived 
from filed rates, except from sales for resale. The commission may correct any errors in 
the assessments linder 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 1st and assess 
each utility for its pro rata share for expenditure, including funds for energy conservation 
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 accordanc~ '.vith section 116. The commission shall separately 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 j oint 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. 
4-B. 
Transmission and subtransmission voltage level. 
After July 1, 2007, ' 
electricity customers receiving service at transmission and subtransmission voltage levels 
are not eligible 'for new conservation programs undertaken under this section, and those 
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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 of the assessment under subsection 4, the commission shall reduce 
the rates of such customers that are in effect on July 1, 2007 by 0.145 cent per kilowatt-
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hour at the time of the fIrst rate adjustment following the effective date of this s~bsection. 
For the purposes of .this section, "transmission voltage levels" means 44 kilovolts or 
more, and "subtransmission voltage levels" means 34.5 kilovolts. 
5. 
Conservation program fund. 
The commission trust shall establish a 
conservation program fund to be used solely for conservation programs. 
A. The commission shall deposit all assessments collected pursuant to this section, 
other than funds deposited in the administration fund or set aside for complementary 
energy programs, into the program fund subaccount within the trust. 
B. Any interest earned on funds in the program fund must be credited to the program 
fund. 
C. Funds not spent in any fIscal year remain in the program fund to be used for 
conservation programs . 
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D. The commission or the trust may apply for and receive grants from state, federal 
and private sources for deposit in the program fund and also may deposit in the 
program fund any grants or other funds received by or from any entity with which the 
commission or trust has an agreement or contract pursuant to this section if the 
commission determine? receives prior written consent from the trust that receipt of 
those funds would be consistent with the purposes of this section. If the commission 
or trust receives any funds pursuant to this paragraph, if they shall establish a separate 
account within the program fund to receive the funds and shall keep those funds and 
any interest earned on those funds segregated from other funds in the program fund. 
. Nothing in this subsection prohibits the commission from applying for and receiving 
grants to implement complementary energy programs from state, federal and private 
sources or from any entity with which the co~ssion has an agreement or contract 
pursuant to this section as long as the grants or funds are· not deposited in the 
. conservation program fund and are not used in programs that provide direct financial 
incentives, training or education for the acquisition of energy efficiency resources, as the 
trust is solely responsible for administering the fund and providing those incentives. 
5-A. Support for Energy Resources Council. Notwithstanding any other provision· 
of this section: 
A. The Energy Resources Council established under Title 5, section 3327 may apply 
to the commission for funding from the program fund commission funds set aside for 
,complementary energy programs to support projects and activities of the council 
related to energy conservation; and 
B. The commission may provide up to $200,000· in any fIscal year to the Energy 
Resources Council established under Title 5, section 3327 from the program fund if 
the funds are needed for particular projects or activities directed by the Legislature to 
be undertaken by the counci~, or the commission fmds the projects or activities ru;-e 
generally consistent with. the overall purposes of this section. 
5-B. Independent technical support for board of trustees. Notwithstanding any 
other provision of this section, the Maine Energy Conservation Board established under 
section 10007 may apply to the commission for funding trust shall set aside and make 
available funding from the program fund for staff independent expert technical support 
for the board; and, upon application of the board, the commission may provide up to . 
Board of Trustees of the Efficiency Maine Trust established under section 10009, 
subsection 3 in the amount of 1 % of the total amount in the program fund to the board for 
that purpose. 
6. Conservation administration fund. 
The commission trust shall establish a 
conservation administration fund to be used solely to defray administrative costs. The 
commission trust annually may deposit funds collected pursuant to this section into the 
administration fund up to a maximum in any fiscal year of $1,300,000 up to 9% of total 
funds received pursuant to subsections 4 and 4-Anot including any amounts held aside 
by the commission to fund complementary energy programs. Any interest on funds in the 
administration fund must be credited to the administration fund and any funds unspent in 
any fiscal year must either remain in the adillinistration fund to be used to defray 
administrative costs or be transferred to the program fund. 
6-A. Conservation oversight and evaluation fund. The commission shall establish 
a conservation oversight and evaluation fund to be used to defray the commission's 
projected costs of negotiating measures of performance with the Efficiency Maine Trust, 
reviewing and approving the trust's triennial plan under section 10009, subsection 5, 
paragraph D and contracting with expert 3rd-party resources to provide technical 
assistance or impartial evaluation of the performance Of energy efficiency programs 
administered by the trust. 
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7. Prior conservation efforts. Except as otherwise directed by the commission, 
transmission and distribution utilities shall continue to administer contracts associated 
with prior conservation efforts. 
Such contracts may not be renewed, extended, or 
otherwise m9dified by transmission and distribution utilities in a manner that results ·in 
any increased expenditures associated with those contracts. 
. 7-A.'Funds held in trust. All funds collected from electricity consumers pursuant 
to this section are collected under the authority and for the purposes of this section and 
are deemed to be held in trust for the purposes of benefiting electricity consumers. In the 
event funds are not expended or conti-acted for expenditure within 2 years of being 
collected from consumers, the commission shall return the value· of those funds to 
consumers by appropriate reductions in the assessment collected pursuant to subsection 4. 
8., Resolution of disputes. Upon receipt of an appropriate filing by a party to a 
contract relating to prior conservation efforts, the commission shall adjudicate a dispute 
relating to the interpretation or administration oUhe contract by the transmission and· 
distribution utility. 
In the case of a dispute filed after the effective date of this subsection, the commission 
shall refer the dispute to commercial arbitration in accordance with this paragraph. Each 
party to the contract shall select an arbitrator who is not a current employee of the party. 
The selected arbitrators . shall then select a 3rd arbitrator. If the arbitrators can not agree 
on the 3rd arbitrator, each party shall submit to the commission a list of at least 3 
arbitrators who have no previous or current interest in the contract and,. to the extent 
practicable, have special competence and experience with respect to the subject matter 
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involved in the dispute. The commission shall choose. the 3rd arbitrator from among the 
persons on the lists provided by the parties. After their selection, the arbitrators shall 
promptly hear and determine the controversy pursuant to the rules of the American 
Arbitration Association for the conduct of commercial arbitration proceedings, except 
that if such rules conflict with any procedural rules established by the commission or 
applicable provisions of the laws of this State relating to arbitration, the applicable 
commission rules or provisions of state law govern the arbitration. The arbitrators shall 
submit their decision to the commission. 
A. 
The commission' shall accept or reject the decision within 30 days of its 
submission, unless the commission requires additional time, in which case it may 
extend its review for another 30 days. 
B. If the cOITh.:.ussion does not reject the decision within 30 days or, if it extends its 
review period an additional 30 days, within 60 days, the decision is deemed accepted. 
c. 
If the commission rejects the decision, the commission shall adjudicate the 
dispute. 
A decision by the commi.ssion under this subsection, including a decision, by the 
arbitrators that is deemed accepted. by the commission pursuant to paragraph B, is 
enforceable in a court oflaw. 
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. 
10. Rules. The commission trust shall adopt rules necessary to' implement this 
section subsection. Rules adopted under this section are routine technical rules as defmed 
in Title 5; chapter 375, subchapter II--A 2-A. 
t-h-Report. The commission shall report by December 1st of each year to the joint 
standing committee of the Legislature having jurisdiction . over utilities and energy 
matters. The relJort must include:. 
A. 
/\ description of' actions taken by the commission pursuant to this section, 
including descriptions of all conservation programs implemented during the prior 12 
months and all conservation programs that the commission plans to implement during 
the next 12 months, a description of hm\' the commission determines the cost 
effectiveness of each conservation program and its assessment of the cost 
effectiveness of programs implemented during the prior 12 months; 
B. An accounting of: 
(1) Assessments made. on each transmission and distribution utility pursuant to 
tIus section during the prior 12 months and projected assessments during the neJ(~ 
months; 
(2) Total deposits into and expenditures from the program fund during the prior 
months and projected deposits into and expenditures from the program fund 
durina- the neJd 12 months: 
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(3) The amount and source of any grants or funds deposited in the program fund· 
pursuantto' subsection 5, paragraph D during the previous 12 months and the 
projected amount and source of an)' such funds during the neJCt 12 months; and 
(4) Total deposits into and e)(pendi~es from the adniinistration fund during the 
prior 12 months and projected' deposits into and eJCpenditures. from the 
administration fund during the next 12 months; 
C. :Any recommendations for changes to la'll,' relating to energy conservation; and 
D, 
The status of the progress to'llards meeting the goals of subsection 2, paragraph J 
and the strategies that have been implemented to meet those goals. The report also 
must include an accounting, to the extent available, of the energy savings that hll',ze 
been achieved by school administrative units after their school facility managers have 
been certified pursuant to subsection 2, paragraph J. A school administrative unit is 
not. required to incur additional costs in order to supply information to the 
commission for its reuort. 
12. IBdepeBdem aBalysis of programs. . The commission shall arrange for at): 
independent evaluation of each maj or program implemented under this section. Each 
major program must be evaluated at least once every 5 years. The evaluation must 
include an accounting audit of the program and ari evaluation of the program's 
effectiveness in meeting the goals of this section. The evaluations must be conducted by 
a coinpetent professional vlith expertise in energy efficiency matters, including the 
management of cost effective energy efficiency programs. The commission shall include 
the results of all evaluations conducted under this subsection in the annual report 
submitted pursuant to subsection 11. For purposes of this subsection, "major program" . 
means a DFO!ITam 'llith an annual budeet of more than $500.000. 
Sec. 6. 35-A MRSA §4711, as enacted by PL 2005, c. 110, §1, is amended to 
read: 
. §4711. Natural gas efficiency and conservation programs 
1. Programs. In accordance with rules adopted by the commission, each natural gas. 
29. 
utility in the State that serves 5,000 or more residential consumers shall offer. cost-
effective conservation programs designed to promote the efficient use of natural gas. In 
. determining whether a program is cost-effective, the commission may consider the extent 
to which the progr.am promotes sustainable economic development or reduces greenhouse 
gas emissions to the extent the commission can quantify or otherwise reasonably identify 
such effects. Consistent with the other requirements of this section, a gas utility, in 
adopting and implementing conservation programs, shall seek to encourage efficiency in 
natural gas use, provide incentives. for the development of new, energy-efficient business 
activity in the State and take into account the cost and benefits of energy efficiency and 
conservation to existing business activity in the State. 
A. The gas' utility shall consider, without limitation, demonstrably cost-effective 
conservation programs that: 
(1) Increase consumer awareness of cost-effective options for conserving energy; 
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(2) Create more favorable market conditions for the increased use of efficient 
products and services; and 
(3) Promote sustainable economic development and reduced environmental 
damage. 
B. The gas utility shall apportion available funds under subsection 3 in accordance 
with rules adopted by the commission. The rules must require the gas utility or other 
person implementing natural gas efficiency and conservation programs authorized 
pursuant to this section to prepare a 3-year strategy and implementation plan, to be 
incorporated into the comprehensive triennial plan of the Efficiency Maine Trust 
required in section 10009, subsection 5, paragraph D, and annual update plans 
approved by the trust. The strategy and implementation plan and the annual update 
plans of each gas utility or other person implementing a natural gas efficiency 
program must be reviewed and approved by the Efficiency Maine Trust before any 
program may be implemented and before the costs associated with the program may 
be recovered. in rates. The commission may direct by rule that funds authorized 
pursuant to this section be collected and deposited in a subaccount within . the 
Efficiency Maine Trust authorized to be disbursed consistent with the trust's 
comprehensive triennial plan. 
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(1) . The commission shall ensure that a reasonable percentage of th~ available 
funds is directed to programs for low-income residential consumers, as· defined 
by the co~ssion by rule. The commission shall establish the percentage based 
on an assessment of the opportunity for cost-effective conservation measures for 
such consumers, including an assessment of the number of low-income 
residential consumers that may be eligible for such programs. 
(2) The .commission shall ensure that a reasonable percentage of the available 
funds is directed to programs for small business consumers, as defined by the 
commission by rule. The commission shall establish the percentage based on an 
assessment of the opportunity for cost-effective conservation measures for such 
consumers. In defining "small business" for the purposes of this subparagraph, 
the commission shall consider definitions of that term used for other programs .in 
this State that assist small bu~inesses. 
(3) The commission shall ensure that, to the greatest extent practicable,· the 
remaining available funds are apportioned in a manner that allows all other 
consumers to have a reasonable opportunity to participate in one or more 
conservation programs. 
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C. The commission rules under paragraph B must require each gas utility to provide 
to the Efficiency Maine Trust all data necessary for the trust to review and evaluate 
plans and program performance of the natural gas efficiency and conservation 
programs authorized pursuant to this section and an annual report on the financial and 
program performance of each individual program that the trust delivers. The report 
must reflect the findings of any independent evaluations conducted during the prior 
year. 
. Page 10- 124LROS71(Ol)-1 
2. Cost recovery. The commission shall include in rates for a gas utility all costs 
incurred in compliance with this section and commission rules adopted under this section, 
as long as such costs have been prudently incurred. 
3. Funding level. Each gas utility to which this section applies shall' undertake 
energy efficiency programs 
desi~ed to operate within a budget, upon full 
implementation, that is no less than 3 % of the gas utility's delivery revenues sufficient to 
implement all available energy efficiency and demand reduction resources in this State 
that are cost-effective, cost less than supply and are reliable and feasible as defIned 
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determined by the commission by rule oider not less often than once every 3 years, which 
order shall be timed to precede the next scheduled period of the comprehensive triennial 
plan under section 10009, subsection 5, paragraph D. 
4. Rules. The commission shall adopt rules necessary to implement this section. 
Rules adopted under this seetien subsection are routine technical rules as defined in Title 
5, chapter 375, subchapter 2-A. 
&-Roeper!. The commission shall report by December 1st of each year to the joint· 
standing committee of the Legislature having jurisdiction over utilities and energy 
matters. The report must include: 
A 
A description of actions taken by gas utilities pursuant to this section, including 
descriptions of all conservation programs implemented during the prior 12 months 
and all conservation nrolITams that the e:as utilities DIan to imDlement durine: the next 
months: 
B. 
A description of how the commission determines the· cost effectiveness of each 
conservation program and its' assessment of the cost effectiveness of programs 
imDlemented durine: the Drior 12 months: 
25C. 
For each gas utility to which this section applies, total Empend~turesfor. its 
. conservation programs d:u.F..ng the prior 12 months and proj ected expenditures dunng 
the neJ(t 12 months; and 
D. 
Any recommendations for changes to the la'ivs relating to energy conservation 
bv e:as utilities. 
Sec. 7. 35-A MRSA §10004, sub-§2 is enacted to read: 
2. Efficiency Maine Trust. Any funds of the United States Department of Energy 
State Energy Program or other federally funded programs that are used to provide 
financial incentives, training or education for the acquisition of energy efficiency 
resources in the State must, after review and approval of the Board of Trustees of the 
Efficiency Maine Trust under section 10009, be transferred to a dedicated subaccount 
within the trust and incorporated into the trust's comprehensive trieimial plan required 
under section 10009, subsection 5, paragraph D. 
Funds from any federally funded 
programs must be assigned for delivery to one or more entities providing services under 
. an existing contract with the Efficiency Maine Trust or by competitive solicitation 
designed and administered by the trust. 
Sec. 8. 35-A MRSA §10007, as enacted by PL 2007, c. 317,§14, is repealed. 
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Sec. 9. 35-A MRSA §10008, as amended by PL 2007, c. 608, §§1 and 2 andc. 
695, Pt. A, §42, is repealed. 
Sec. 10. 35-A MRSA §10009 is enacted to read: 
§10009. Efficiency Maine Trust 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Board" means the Board of Trustees of the Efficiency Maine Trust. 
B. "Director" means the Director of the Efficiency Maine Trust. 
C. "Triennial plan" means the plan required under subsection 5, paragraph D. 
D. "Trust" means the Efficiency Maine Trust. 
E. "Trustee" means a member of the board. 
2. Establishment; purpose. The, Efficiency Maine Trust, as established in Title 5, 
section 12004-G,' subsection 13-G, is a nonprofit cOl]Joration with public and charitable 
pUl]Joses. The duties, activitfes and operations of the trust are within the provisions of the 
Unit.ed States Internal Revenue Code, Section 501(c)(3). Powers and duties of the trust 
apply to any predecessor authorized to administer efficiency funds up to the point that 
such powers and duties are transferred or assigned to the trust. The trust is established to: 
A. Provide uniform, integrated planning, program design and administration of: 
,(1) Conservation programs under section 3211-A; 
(2) Natural gas efficiency and conservation programs under section 4711; 
(3) The Regional Greenhouse Gas Initiative Trust Fund established in section 
10010, subsection 2; and 
(4) Any state or federal funds or publicly directed funds that may be accepted by 
or allocated to the trust for the purpose of investing in energy efficiency 
programs in the State; 
. 
B. Reduce energy costs and improve security of the state and local economies. The 
trust shall administer cost-effective energy efficiency programs to help families and 
businesses meet their energy needs at the lowest cost and generally to improve the 
economic security of the State by: 
(1) Ma'xilIDzing the use of cost-effective energy efficiency and weatherization; 
(2) 
Reducing economic insecurity from overdependence on price-volatile 
heating fuels; 
. 
(3) Increasing new jobs and business development to deliver energy efficiency 
products arid services; 
. 
(4) 
Enhancing heating benefits for low-income eligible' households through 
weatherization, thus improving, the comfort and indoor air gualityof these 
households and reducing the need for future fuel assistance; 
(5) 
Simplifying and enhancing consumer access to technical assistance and 
financial incentives for energy efficiency and weatherization by merging 
. dispersed, uncoordinated programs under a single administrative unit' possessing 
independent maJ?agement and expertise; and 
(6) Using cost-effective energy efficiency investments to reduce greenhouse gas 
emissions; .and 
C. Ensure that'all expenditures of the trust are cost- effective in terms of avoided fuel 
costs. 
3. Governance; board. The .trust is governed and . all of its powers exercised by an 
independent board consisting of 12 voting members and 4 nonvoting members. 
A. The commission shall appoint 9 voting members of the board: 
(1) 
Three who possess lmowledge of high-efficiency energy conservation 
programs, carbon reduction programs, policy or technology or substantial 
management expertise; 
.(2) One who represents 'commercial energy consumers; 
(3) One who represents industrial energy consumers; 
(4) One who represents small business energy consumers; 
(5) One who represents residential general ~nergy consumers; 
(6) One who represents low-income or fixed-income consumers; and 
(7) One member who represents environmental and climate change interests. 
. B. The Governor shall appoint 3 voting members of the board: 
(1) One who represents the Department of Environmental Protection; 
(2) One who represents the Governor's Office of Energy Independence and 
Security; and 
(3) One who represents the Maine State Housing Authority. 
C. The Governor shall appoint 3 nonvoting members of the board: 
(1) One who represents electric utilities; 
(2) One who represents natural gas utilities; and 
(3) One who represents the heating fuel industry. 
D. The chair of the commission serves as an ex officio, nonvoting member of the 
board. 
E. 
Each trustee may have a designee. 
A voting trustee or the voting trustee's 
designee may not have a financial interest in the delivery of energy efficiency or 
conservation. 
F. A trustee serves a 3-year term. If a trustee is unable to complete the term, the 
appropriate appointing authority shall appoint a replacement for the ren1ainder of the 
unexpired term .. Trustees may· serve a maximum of 2 consecutive tenns. 
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G. 
The board may meet periodically. If a trustee is absent from more than 2 
meetings of the board without notice, the appropriate appointing authority may 
appoint a replacement. 
H. The board shall elect a chair, a vice-chair, a secretary and a treasurer from among 
the voting members. Each officer serves for a one-year term and is eligible for 
reelection. 
I. A majority of the voting trustees constitutes a quorum. 
J. An affirmative vote of 2/3 of the voting members is required to approve a motion 
or action. 
K. The board may elect an executive committee of not fewer than 6 trustees who, in 
intervals between meetings of the board, may transact such business of the trust as the 
board may authorize from time to time. 
4. Administration of trust; director. The trust is administered and expenditures 
authorized by a director. 
A. The board shall appoint, using a full and competitive search process and after 
giving proper consideration to the qualifications in paragraph C, a full-time director 
for the trust. The director serves at the pleasure of the board. 
'28 
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B. The director serves as the president of the trust upon confmnation by the board. 
The director shall hire and organize staff resources for the trust. The director shall 
serve as the liaison between the board and any committee of the Legislature having 
jurisdiction over energy matters. The director shall establish an office for the trust 
located outside of State Government, shall manage the trust's programs, services and 
staff and shall perform other duties the board considers appropriate. The director or 
the director's designee shall select staff for the trust. 
C. To qualify as director, an individual must have demonstrated experience in the 
planning, design or delivery of energy efficiency programs or the management of 
organizations that plan, design or deliver those programs. 
5. Duties. The duties of the trust are as set out in this subsection. 
A. 
The trust is an independent fiscal agent for public investments in energy 
efficiency and weatherization programs and is not a state entity" The trust serves as 
administrator of the funds intended for use to promote energy efficiency in the State. 
Funds allocated or transferred to or deposited with the trust are not state ,funds. Fiscal 
duties of the trust include the disbursement of funds to companies, nonprofit 
organizations, trade associations and government agencies for the purchase or 
delivelY of cost-effective energy efficient products and services for the benefit of ' 
energy consumers in the State. Other duties include the accounting, evaluat~on and 
monitoring of all activities of the trust and all programs funded in whole or in part by 
the trust and the evaluation and monitoring of ali energy efficiency and 
weatherization programs approved by the trust in the triennial plan under paragraph 
D. 
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B. . The trust shall plan, design and administer programs to ensure that funds are 
expended for uses consistent with the state or federal statutory authorities that created 
the funds and so that the following principles of administration are met: 
(1) Programs are consumer oriented such that the processes for participation a~d 
program design are targeted to serve the multiple needs of energy consumers in 
this State; 
(2) The effectiveness of programs is maximized by building up and centralizing 
expertise, addressing conflicts of interest, mitigating the influence of politics, 
promoting flexible, nimble program management and providing a champion for 
funding cost-effective energy efficiency; 
(3) The efficiency with which programs are planned, designed, overseen and 
delivered is maximized; and 
(4) 
Sufficient checks and balances are provided to ensure consistency with 
public policy and accountability for meeting the principles set out in 
subparagraphs (1) to (3) so that energy efficiency programs in the State are 
sustainable for the long term. 
. 
C. The trust shall develop quantifiable measures of performance to which it will be 
held accountable by the Public Utilities Commission. Measures of performance must 
be negotiated between the trust and the commission and must be ratified by the 
commission, as provided in section 10012, prior to being incorporated into the 
triennial plan under paragraph D. The measures must be established for a 3-year 
period, with revisions allowable by mutual agreement. The trust shall also develop 
quantifiable measures of performance to which it will hold accountable all recipients 
of fundIng from the trust and recipients of funds used to deliver energy efficiency and 
weatherization programs that are incorporated in the triennial plan and approved by 
the trust. 
Such measures may include, but are not limited to, reduced energy 
consumption, reduced capacity demand for natural gas and electricity, reduced 
energy costs, reduced carbon dioxide emissions, program and overhead costs and 
cost-effectiveness, the number of new jobs created by the award of trust funds, the 
number of energy efficiency trainings or certification courses completed and the 
amount of sales generated. 
D. The board shall vote on a detailed, triennial energy efficiency and conservation 
plan and make a full report of the vote to the commission in accordance with this 
subsection. The triennial plan must provide integrated planning, program design and 
implementation strategies for the electric efficiency and conservation programs under 
section 3211-A, the natural gas efficiency and conservatiOn programs under section 
4711, the Regional Greenhouse Gas Initiative Trust Fund under section 10010 and 
any state or federal funds or publicly directed funds accepted by or allocated to the 
trust for the purpose of investing in energy efficiency programs in the State .. 
(1 ) 
The triennial plan must he developed by the trust, in consultation with 
entities and agencies engaged in delivering efficiency programs in the State, to 
authorize and govern implementation of energy efficiency and weatherization 
programs in the State. 
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(a) 
Electric' utilities shall furnish data to the trust Under this subsection 
subject to such provisions as the trust may request and the commission may 
order with regard to confidential or proprietary infonnation. The costs of 
providing the data are deemed reasonable and prudent expenses of the 
utilities and are recoverable in rates. 
(b) 
Expenditures by a natural gas utility for energy efficiency and 
weatherization measures may not be authorized for recovery in rates until the 
board reviews and approves an initial 3-year implementation plan to be 
incorporated into the triennial plan. In making its determination, the board 
shall consider if the utility's plan is consistent with the provisions of section 
4711, the best practices, of program administration, the state energy 
efficiency targets under subparagraph (6) and the objective of integrating 
delivery of them1a1 and electric efficiency programs to the maximum extent 
practicable. Natural gas utilities shall furnish data to the trust under this 
subsection subject to' such provisions as the trust may request arid the 
commission may order.· The costs of providing the' data are deemed 
reasonable and prudent expenses of the utilities and are recoverable in rates. 
(c) A designated state agency, conununity action agency or unit of local 
government eligible to apply for funds under 42 United States Code, Section 
6863(c) shall submit to the trust for review and approval an initial 3-year 
implementation plan to be incorporated into the triennial plan. An agency or 
unit of local government may not submit any annual plans or application to 
the federal government pursuant to 42 United States Code, Section 6864 or 
make expenditures for purposes of implementing federal Weatherization 
Assistance Program funds until the board reviews and approves the plan or 
application. In reviewing the plan or application the board shall consider' if it 
is consistent with the rest of the triennial plan, best practices of program 
administration, the state energy efficiency targets under subparagraph (6) and 
,the objective of integratmg delIvery of thennal and electric efficiency 
measures to the maximum extent practicable. 
. 
(2) In developing the triennial plan, the staff of the trust shall consult the board 
and provide the opportunity for the board to provide input on drafts of the plan . 
(3) The board shall review and approve the triennial plan upon a rmding that the 
plan is consistent with the statutory authority for eath source of funds that will be 
used to implement the plan, the state energy efficiency targets in subparagraph 
(6) and the best practices of program administration under paragraph B. The plan 
must include, but is not limited to, efficiency and conservation program budget 
allocations, objectives, targets, measures of, perfonnance, program designs, 
program implementation strategies, timelines and other relevant infonnation. 
(4) The board shall deliver the triennial plan to the commission for its review. 
The commission shall reject elements of the plan that propose to use ratepayer 
funds generated pursuant to section 3211-A, subsections 4 and 4-A or section 
4711 for failure to reasonably explain how these elements of the program would 
achieve the objectives and implementation requirements of section 3211-A, 
subsections 2 and 3 and section 4711, subsection 1 or the negotiated measures of 
- 2 
performance under section 10012, subsection· 1. 
Ratepayer· funds generated 
under these statutory authorities may not be used pursuant to the triennial plan 
unless and until those elements of the plan proposing to use ratepayer funds have 
been approved by the conmllssion. The cOnmllssion shall approve or reject the 
ratepayer elements of the triennial plan within 60 days of its delivery to the 
conmllssion. 
(5) The trust shall detei-mine the period to be covered by the triennial plan except 
that the period of the plan may not interfere with· the delivery of any existing 
contracts to provide energy efficiency services that were previously procured 
pursuant . to efficiency and conservation programs administered by the 
conmllssion. 
(6) It is an objective of the triennial plan to design, coordinate and integrate 
sustained. energy efficiency and weatherization programs. that are available to all 
energy consumers in the State, regardless of fuel type, that advance the targets of: 
(a) . Reducing by 20% the State's dependence on imported heating fuels by 
2020; 
(b) 
Capturing all cost-effective energy efficiency resources available for 
electric and natural gas utility ratepayers; 
(c) Saving residential and commercial heating consumers not less than $3 for. 
every $1 of program funds invested by 2020 in heating and cooling cost-
effective measures that cost less than conventional energy supply; 
(d) Building stable private sector jobs providing clean energy and energy 
efficiency products and serviCes in the State by 2020; and 
. 
(e) Reducing. greenhouse gas emissions from the heating and cooling of 
buildings in the State by amounts consistent with the State goals established 
. in Title 38, section 576. 
E. The trust shall report by December 1st of each year to the cOnmllssion and the 
joint standing conunittee of the Legislature having jurisdiCtion over utilities and 
energy matters. The report must include: 
(1) A description of actions taken by the trust pursuant to tlns section, including 
descriptions of all energy efficiency, weatherization· and conservation programs 
implemented during the pnor 12 months and all programs that the cOnmllssion 
plans to implement during the next 12 months, a description of how the trust 
determines the cost-effectiveness of each program and its assessment of the cost-
effectiveness of programs implemented during the prior 12 months;· 
(2) An accountingof: 
(a) Assessments made on each transmission and distribution utility pursuant 
to section 3211-A, subsections 4 and 4-1\ during the prior 12 months and 
projected assessments during the next 12 months and total deposits into and 
expenditures from the program fund during the prior 12 months and projected 
deposits into and expenditures from the program funds during the next 12 
months; 
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(b) 
Funding for conservation programs by natural gas utilities pursuant to 
section 4711, subsection 3, including: 
0) A description of actions taken by natural gas utilities pursuant to 
section 4711, including descriptions of all conservation programs 
implemented during the prior 12 months and all conservation programs 
that the natural gas utilities plan to implement during the next 12 months; 
(in A description of how the trust determines the cost-effectiveness of 
each conservation program and its assessment of the·cost~effectiveness of 
programs implemented during the prior 12 moriths; 
(iii) 
For each natural gas utility to which this section applies, total 
expenditures for its conservation programs during the prior 12 months 
and projected expenditures during the next 12 months; and 
(c) Total deposits into and expenditures from the Heating Fuels Efficiency 
and Weatherization Fund under section 10011; 
(d) Total funds received and expended in the State on energy efficiency and 
weatherization pursuant to the Weatherization Assistance Program of the 
United States Department of Energy and the Low-income Home Energy 
Assistance Program of the Uriited States Department of Health and Human 
Services; 
(e) The amount and source of any grants or funds deposited in the program 
fund pursuant to section 3211-A, subsection 5, paragraph D during the 
previous 12 months and the proj ected amount and source of any such funds 
during the next 12 months; and 
. 
(f) Total deposits into and expenditures from the conservation administration 
fund under section 3211-A, subsection 6 during the prior 12 months and 
projected 
deposits 
into 
and 
expenditures 
from 
the 
conservation 
administration fund during the next 12 months; 
(3) 
Any recommendations for changes to the laws . relating to energy 
conservation; and 
(4) The performance of the trust and individual programs and program delivery 
agents or service providers in meeting the objectives, targets and measures of 
performance approved by the commission and contained in the triennial plan. 
The report must be approved by the board before being presented to the commission 
and the joint standing committee of the Legislature having jurisdiction over utilities 
and energy matters. 
F. Within 30 days of completion of the annual report: 
(1) 
The staff of the trust shall submit to the board an annual update plan 
describing any significant changes to the triennial plan under paragraph D related 
to program budget allocations, goals, targets, measures of performance, program 
designs, implementation strategies, timelines and other relevant information for 
the year ahead for all subaccounts administered and managed by the trust. The 
staff, any contractor, grantee or agency delivering programs may not execute any 
l3 
significant changes until approved by the board and, in the case of significant 
changes to programs using ratepayer funds, also by the commission using the. 
same standard as for the triennial plan; and 
(2) A natural gas utility or an agency administering weatherization or efficiency 
programs for low-income persons shall submit to the trust an annual update plan 
describing any significant changes to the triennial plan related to program budget 
allocations, goals, targets, measures of performance, program designs and 
timelines and other relevant information for all efficiency and weatherization 
programs the utility or agency administers. Expenditures for any significant 
changes to the approved plan may not be authorized until the board has reviewed 
and approved any subsequent annual update plan. 
All annual update plans must be presented to the commission and the joint standing 
committee of the Legislature having jurisdiction over utilities and energy matters. 
G .. The trust shall do all things necessary or convenient to carry out the lawful 
purposes of the trust. 
6. Powers. The trust shall execute its duties consistent with this subsection. 
A. The trust is authorized to receive and shall hold in separate sub accounts funds for: 
(1) 
Transfers into the conservation program fund and the. conservation 
administration fund, pursuant to section 3211-A. subsections 5 and 6; . 
(2) Transfers from a natural gas utility collected pursuant to section 4711 .for 
conservation programs; 
(3) Transfers from the Heating Fuels Efficiency and Weatherization Fund under 
section 10011; 
(4) Bonds issued under section 10011, subsection 5 for the purpose of energy 
efficiency and weatherization; 
(5) Federal funds for weatherization and energy efficiency; 
(6) The Regional Greenhous~ Gas htitiative Trust Fund und·er section 10010; and 
(7) 
Any other source, including· but not. limited to state programs, federal 
_ programs, nonprofit foundations, civil penalties, alternative compliance payments 
or any other funds that are intended to be used for energy weatherization and 
efficiency programs or related education, training or certification initiatives. 
B. The trust shall adopt bylaws, through the board, consistent with this section for 
the governance of its affairs. 
. 
. C. The trust shall fix, through the board, the compensation of all employees of the 
trust. 
D. Notwithstanding Title 5, section 1831, the trust is not subject to rules adopted by 
the State Purchasing Agent in selecting service providers pursuant to this subsection. 
The trust shall adopt rules establishing procedures governing the selection of service 
providers under this section. The trust shall consult with the State Purchasing Agerit 
in developing the rules. 
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E. The board shall adopt rules for establishing' and administering the trust and its 
programs. These rules must include: 
(1) Provisions for the expenditure of trust 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, niinimumreguirements for project monitoring and verification and 
the cost-effectiveness tests to be used for measuring and comparing program 
benefits and costs subject to paragraph:8; and 
(2) Provisions for the independent evaluation of program expenditures to ensure 
cost-effectiveness of projects to improve energy efficiency or to reduce 
greenhouse gases. 
F. The trust shall operate as a nonprofit organization consistent with its composition 
and broad public purposes. ill the operation or, dissolution of the trust, no part of the 
net earnings of the trust may benefit any member, officer or employee except that the 
trust may pay reasonable compensation for services rendered and otherwise hold, 
manage and dispose.of its property in furtherance of the purposes of the trust. 
Rules adopted pursuant to this subsection are major substantive rules pursuant to Title 5, 
chapter 375, subchapter 2-A. 
. 
Sec. 11. 35-A MRSA §10010 is enacted to read: 
§10010. Regional Greenhouse Gas Initiative Trust Fund 
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 
L 
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 cont~acts. 
K "Trust" means the Efficiency Maine Trust established in section 10009. 
F. "Trust fund" means the Regional Greenhouse Gas fuitiative Trust Fund. 
G. "Trustee" means a trustee of the Efficiency Maine Trust. 
2. 
Establishment of Regional Greenhouse Gas Initiative Trust Fund. 
The 
Regional Greenhouse Gas fuitiative Trust Fund is established and is the successor to the 
fund that was established under section 10008 effective July 1, 2008 .. The trust fund is 
established 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.
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A. 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. 
'B. . The trustees shall ensure that the goals and objectives of the trust fund, as 
established in this section and in rules adopted by the trust; are carried out. The 
trustees shall represent the interests of the trust fund in the development of the 
triennial energy efficiency and conservation plan pursuant to section 10009, 
subsection 5, paragraph D. 
3. Ceiling on energy efficiency spending. There is established a ceiling on energy 
efficiency spending from the trust fund subaccount holding revenue from the sale of 
carbon dioxide allowances pursuant to Title 38, section 580-B 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 valued above $5 must 
be transferred to the commission for use by the commission pursuant to sections 301 and 
1322 for rebates to electric ratepayers calculated on a per-kilowatt-hour basis. 
4. Expenditures; projects. For the subaccount holding revenue from the sale of 
carbon dioxide allowances pursuant to Title 38, section 580-B, the funds from the trust 
fund must be expended in accordance with this subsection. ' 
A. 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 shallfunci 
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. 
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B. 
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. 
' 
C. 
The trustees may target bid competitions in areas or to participants as they 
consider necessary, as long as the requirements of paragraph A are satisfied. 
D. 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 
A. 
E. 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 trust pursuant to section 10009, subsection 5, paragraph D. 
F. No more than 5% of trust fund receipts in any one year may be used for the total 
administrative costs: 
(1) Of the trust related to this section; 
(2) 
Of the Department of Environmental Protection for participating in the 
regional organization as dermed in Title 38, section 580~A, subsection 20 and Jor 
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. 
G. In order to minimize administrative costs and maximize prograrri 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 3210-C and section 3211-A. 
H. 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. 
I. 
A trade association aggregator is eligible to participate in competitive bid 
processes under this subsection. 
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J. 
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 F. 
. Sec. 12. 35-A MRSA §100n is enacted to read: 
§10011. Heating Fuels Efficiency and Weatherization Fund 
1. Heating fuels efficiency and weatherization charge. A heating fuels efficiency 
and weatherization system benefit charge. must be assessed on each barrel of #2 heating 
oil, kerosene or equivalent quantity of propane that is transferred by a terminal facility 
licensed under Title 38, section 545, firsttransported into this State by a person. required 
to register pursuant to Title 38, section 545-B or first transported into this State by a 
vendor of propane or kerosene. 
. 
2. Collection of charges; transfer to trust. Any system benefit charge assessed 
. under subsection 1 must be paid monthly to the commission and upon receipt by it 
transferred to the Heating Fuels Efficiency and Weatherization Fund, which is a state-
sources subaccount of the Efficiency Maine Trust established in section 10009. The 
. 18 
commission shall by order establish a process for collecting the charge and transferring it 
to the trust. 
' 
3. 
Exemptions; waivers; rebates. The comrrnSSlOn shall by order establish a 
process and criteria for applying exemptions, rebates or waivers of the charge assessed 
under subsection 1 to individual customers or consumer groups that do not use fuels 
covered by .the charge for space heating or domestic hot water, as long as electric 
generation, industrial process and manufacturing uses and transportation uses are not 
subject to this system benefit charge. The commission shall consider employing fee 
exemptions, rebates or waivers for low-income and fixed-income consumers if the 
commission finds that these groups have sufficient access to efficiency and 
weatherization funds from other sources. 
Any commission order issued under this 
subsection expires in 365 days unless it is reissued or amended within that period. 
4. Schedule. The heating fuels efficiency and weatherization system benefit charge 
must be assessed according to this subsection . 
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A. . Beginning July 1, 2009 and until June 30, 2010, the charge per ban'el or its 
equivalent is $1.05. 
B. Beginning July 1, 2010 and until June 30, 2011, the charge per barrel or its 
equivalent is $1.26. 
C. Beginning July 1, 2011 and until June 30, 2012, the charge per barrel or its 
equivalent is $1.47. 
D. Beginning July 1, 2012 and until June 30, 2013, the charge per barrel or its 
. 
equivalent is $1.68. 
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E. Beginning July 1, 2013 and until June 30, 2014, the charge per barrel or its 
equivalent is $1.89. 
F. Beginning July 1, 2014 and until June 30, 2015, the charge per barrel or its 
equivalent is $2.10. 
G. Beginning July 1, 2015 and until June 30, 2016, the charge per barrel or its 
equivalent is $2.31. 
. 
H .. Beginning July 1, 2016 and until June 30, 2017, the charge per barrel or its 
equivalent is $2.52. 
I. Beginning July 1, 2017 and until June 30, 2018, the charge per barrel or its 
equivalent is $2.73. 
J .. Begi!1!1ing July 1, 2018 and until June 30, 2019, the charge per barrel or its 
equivalent is $2.94. 
After April 1, but before June 1 of 2010 and 2011, the commission may issue an order, 
after a public hearing and written comment, to postpone the charge increase for that year 
upon a rmding that it would be in the best interest of the State's economy to do so. The 
commission may not postpone the increase for more than one year. At the end of the year 
iIi which the charge increase is postponed, the charge returns to the schedule in this 
subsection. 
5. Heating fuels efficiency and weatherization bond. The Maine State Housing 
Authority with· the prior written consent of the trust may issue· revenue bonds in the 
amount of $10,000,000 each year for 5 years beginning on the effective date of this 
subsection. 
The proceeds of the bonds must be transferred to the Heating Fuels 
Efficiency and Weatherization Fund at the Efficiency Maine Trust and held in a separate 
subaccount as a revolving loan fund. 
.. Federal funds for energy efficiency and weatherization. All money from the 
Federal Government directed to the State for purposes of promoting energy efficiency 
and weatherization other than for low-income consumers must be administered by the 
Efficiency Maine Trust and deposited in the Heating Fuels Efficiency and Weatherization 
Fund federal-sources subaccount as long as any criteria or limitations associated with the 
use of such federal funds is consistent with the objectives, criteria and programs used by 
the trust to implement this section. 
7. Use of money. Money from the Heating Fuels Efficiency and Weatherization 
Fund must be used in accordance with this subsection. 
A. All funds deposited in the Heating Fuels Efficiency and Weatherization Fund 
must be administered by the Efficiency Maine Trust to reduce heating· fuel 
consumption consistent with the purpose and targets of the trust and the triennial 
energy efficiency and conservation plan under section 10009, subsectionS, paragraph 
D. 
. 
B. Funds from the Heating Fuels Efficiency and Weatherization Fund may only be 
used for programs that provide cost-effective energy. efficiency and weatherization 
.7. 
measures for the benefit of heating fuel consumers or to efficiency service providers 
serving those customers and in accordance with subparagraphs (1) to (4). 
(1) Program categories must include low-income,. single-family and 2-family 
residential units, multifamily residential units, small business, commercial and 
institutional and such other categories as the Efficiency Maine Trust determines 
appropriate. 
(2) Within program categories, the Efficiency Maine Trust may differentiate 
between programs for new construction and in existing bUildings. 
. (3) The Efficiency Maine Trust shall define small business based on the nature 
and amount of energy consumed by the customer. 
(4) Funds derived from this section may also be used to pay a proportionate 
share of the Efficiency Maine Trust's lidrnlnistrative costs. 
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C. Only energy efficiency and weatherization programs that are approved by the 
Efficiency Maine Trust are eligible for funding from the Heating Fuels Efficiency 
and Weatherization Fund. 
D. Program designs approved by the Efficiency Maine Trust must contain: 
(1) Incentives to consumers to purchase and install the maximum amount of 
cost-effective efficiency and weatherization products and services identified by a 
certified assessor, except in the case of programs to deliver education, training or 
. certifications; 
(2) A schedule of customer copayments and loan options for prescribed products 
and services. 
Programs for low-income consumers may provide exemptions 
from the copayment and schedule; 
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(3) A plan for integrating delivery of heating fuel efficiency and weatherization 
measures with electric efficiency measures; and 
(4) A system for the equitable allocation of costs among the contributing funds 
or subaccounts administered by the trust where more than one thermal, electric or 
carbon-reducing efficiency opportunity is achieved. 
E. For the first 2 years of the Heating Fuels Efficiency and Weatherization Fund, the 
portfolio of programs· administered by the Efficiency Maine Trust must include a 
market-based program designed to deliver an integrated efficiency and weatherization 
package for residential customers that includes, put is not limited to: 
(1) An initial assessment of the building shell, heating, ventilation and air-
conditioning systems and electrical uses to determine what measures are cost-
effective and appropriate for funding by the program. Any assessment must be 
performed by an individual certified to a level of training as determined by the 
Efficiency Maine Trust; 
. 
(2) Cost buy-downs and financing to encourage the purchase of precertified 
high-efficiency new space heating or water heating equipment; 
(3) 
Cost b~y-downs and financing incentives to encourage cost-effective 
weatherization improvements to the building shell; 
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(4) 
Cost buy-downs and financing incentives to encourage installation of 
precertified efficient lighting systems and electrical equipment; and 
(5) A post-installation assessment and report pursuant to specifications approved 
by the trust. 
F. Other eligible measures for the Heating Fuels Efficiency and Weatherization Fund 
may include, but are not limited to: 
, (1) Training or certification of energy auditors, insulation installers, mechanical 
heating system installers, and maintenance technicians and building energy 
inspectors; and 
(2) Loans for the purchase or lease of commerdal equipment that is uniquely 
used in the installation and maintenance of high-efficiency heating mechanical 
systems or building shell efficiency measures. 
G. 
The full amount of the debt service from the heating fuels efficiency and 
weatherization revenue bonds under subsection 5 and the costs of administering those 
bonds must be paid each year from the heating fuels efficiency and weatherization 
fee, collected monthly under this section. 
H. The Efficiency Maine Trust shall establish minimum certification or other criteria 
and processes that are used to detennine eligibility of service providers, including oil 
dealers, natural gas and' electric utilities, community action agencies, energy auditors 
and assessors and' other qualified individuals who act as general contractors and 
liaisons between customers, the trust and other service providers. 
Sec. 13. 35-A MRS A §10012 is enacted to read: 
§10012. Commission oversight Of Efficiency Maine Trust 
1. Negotiated measures of performance. The commission shall negotiate measures 
of performance with the Efficiency Maine Trust to be incorporated in the triennial plan 
under section 10009, subsection 5, paragraph D. 
Upon presentation of proposed 
measures of performance by the trust, the commission shall ratify the final measures of 
performance if it fmds that these measures satisfy the best practices described in section 
10009, subsection 5, paragraph B and are in the public interest. The commission and the 
trust may revise one or more of the 3-year measures of performance at any time by 
mutual agreement. 
2. Independent evaluation of programs. The commission shall arrange for an 
'independent evaluation' of each major program administered by the trust or incorporated 
into the triennial plan under section 10009, subsection 5, paragraph D. Each major 
, program must be evaluated at least once every 3 years. The evaluation inust include an 
accounting audit of the programs and an evaluation of each program's effectiveness. The 
evaluation must measure actual and lifetime energy saved, carbon dioxide saved, energy 
costs saved, demand or capacity reductions, other quantifiable benefits, cost of programs 
and administration, cost-effectiveness of programs, jobs created and other measures that 
, the evaluator, in, consultation with the commission, may' establish. The evaluations must 
be conducted by a competent professional with expertise in energy efficiency matters, 
including the management of cost-effective energy efficiency programs. For purposes of 
this subsection, "major program" means a program with an annual budget of more than ' 
$500,000. 
3. Report to Legislature. The commission snaIl submit a report of the independent 
evaluation conducted pursuant to subsection 2 to the joint standing committee of the 
Legislature having jurisdiction over utilities 'and energy matters. 
4. 
Funding. The commis~ion shall establish a 'fu~d to be used to defray the 
commission's costs of providing negotiating measures of performance with the Efficiency 
Maine Trust, reviewing and approving the trust's triennial plan under section 10009, 
subsection 5, paragraph D and contracting expert 3rd-party resources to provide technical 
assistance or impartial evaluation of the performance of all energy efficiency programs 
administered by the trust. Funds for this purpose must be set aside from the electric 
efficiency and conservation program fund under section 3211-A, subsection 5, the natural 
gas efficiency and conservation program funds under section 4711, the Heating Fuels 
Efficiency and Weatherization Fund under section 10011, the Regional Greenhouse Gas 
Initiative Trust Fund under section 10010 and any federal funds used to deliver efficiency 
or weatherization programs in the State, in proportion to each source's total funding level 
that is administered by the trust or incorporated into the trust's triennial plan. 
Sec. 14. 38 "MRSA §580-B, sub-§7, as enacted by PL 2007, c. 317, §17, is 
amended to read: 
-1. 
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 -l-OO(fg. 10010. 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 fr~m the sale of allowances must be deposited in 
the Energy and Carbon Savings Regional, Greenhouse Gas Initiative Trust Fund 
established under Title 35-A, section -l-OO(fg. 10010. 
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·Sec. 15. 
3~r MRSA §580-B, sub-§7-A, as enacted by PL 2007, c. 608, §7, is 
amended to read: 
7-A. Voluntary renewable energy market set-aside. The department shall set 
aside a:, portion of the State's annual carbon dioxide emissions' budget in a voluntary 
, 32 
renewable market set-aside account. The allowances from this account must be retired in 
an amount equal to the amount of carbon dioxide emissions reduced by the voluntary 
purchase of eligible renewable energy credits by persons in the State up to the amount 
, held ih the set-aside account. For purposes of this subsection, "eligible renewable energy 
credits" means renewable energy credits generated within the states that are participating 
in the regional greenhouse gas initiative. 
Before February 1, 2010, the portion of the State's annual carbon dioxide ermSSlOns 
budget that is set aside in a voluntary renewable market set-aside account pursuant to this 
subsection may not exceed 2% of that budget. 'fl!.e department shall report to the joint 
standing committee of the Legislature having jurisdiction over utilities and energy 
matters by January 15, 2010 as to whether that 2% cap is appropriate. By January 31, 
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2010, the Energy and Carbon Savings Efficiency Maine Trust, established under'Title 35-
A, section WGQ& 10009, in consultation with the department, shall establish the cap on 
the portion of the State's annual carbon dioxide emissions budget that is set aside in a set-
aside account. 
Sec. 16. 38 MRSA §580-B, sub-§10, as enacted by PL 2007, c. 317, §17, is 
amended to read: 
10. Annual report. The department and the trustees of the Energy and Carbon 
Savings Efficiency Maine Trust established pursuant to Title 35-A, section WGQ& 10009 
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 Marcl:J. 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 Efficiency Maine 
Trust pursuant to Title 35-A, section WGQ& 10009 and carbon dioxide emissions 
offset proj ects; 
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 inaximization 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 eneI:gy c~~servation and carbon 
reduction programs and efforts fmlded by the Energy and Carbon Savings Efficiency 
Maine Trust established pursuant to Title 35-A, section WGQ& 10009; and 
F. The extent to which funds from the Energy and Carbon Savings Efficiency Maine 
Trust established pursuant to Title 35-A, section WGQ& 10009 serve customers from 
all Classes of the State's transmission and distribution utilities: 
The department and the trustees of the Energy and Carbon Savings Efficiency Maine 
Trust may inClude in the report any proposed changes to the program established under 
this chapter. ' 
The j oint 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. 
Sec. 17. Staggered terms. Notwithstanding the Maine Revised StatUtes, Title 35-
A, section 10009, subsection 3, paragraph F, initial appointments to the Board of Trustees 
of the Efficiency Maine Trust must be made,as follows: 
1. Of the trustees appoInted by the Public Utilities Commission, 3 must be appointed 
for I-year terms, 3 must be appointed for 2-year terms and 3 must be appointed for 3-year 
terms; and 
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2. Of the trustees appointed by the Governor, 2 must be appointed for I-year terms, 2 
must be appointed for 2-year terms and 2 must be appointed for 3-year terms. 
SU~ARY 
This bill establishes the Efficiency Maine Trust to provide a consolidated and 
integrated approach to the planning and administration of energy efficiency programs. 
Under this bill, the administration of the following is trarisferred to the Efficiency Maine 
Trust: 
1. Electric conservation and efficiency programs under the jurisdiction of the Public 
Utilities Commission pursuant to the Maine Revised Statutes, Title 35-A, section 3211-A; 
2. Natural gas conservation and efficiency programs under Title 35-A, section 4711; 
3. Federal funds and programs for energy efficiency and weatherization; 
4. A new Regional Greenhouse Gas Initiative.Trust Fund, which replaces the Energy 
and Carbon Savings Trust; and 
5.A new heating fuels efficiency and weatherization fee and fund program. 
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