An Act To Enhance Maine's Clean Energy.Opportunities
Maine Legislature, Session 124, LD 1647
Sponsors: BERRY, BARTLETT, FITTS, FLAHERTY, FLETCHER, MARTIN, SHAW, VAN WIE, SHERMAN
Amends: 35-A MRSA §3210-C, 35-A MRSA §10110

124th MAINE LEGISLATURE' 
Legislative Document 
No. 1647 
H.P.1175 
House of Representatives, December 23, 
An Act To Enhance Maine's Clean Energy.Opportunities 
(EMERGENCY) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Received by the Clerk of the House on December 21,2009. RefelTed to the Committee on 
Utilities and Energy pursuant to Joint Rule 308.2 and ordered printed pursuantto Joint Rule 
401. 
Presented by Representative BERRY of Bowdoinham . 
. Cosponsored by Senator BARTLETT of Cumberland and 
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./JI.1J?ILC~{ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: FITTS of Pittsfield, FLAHERTY of Scarborough, FLETCHER of Winslow, 
HrNCK ofPOliland, MARTIN of Eagle Lake, SHAW of Standish, VAN WIE of New 
Gloucester, Senator: SHERMAN of Aroostook. 
Prinled 011 recycled paper 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournm~nt unless enacted as emergencies; and 
Whereas, this legislation needs to take effect before the expiration of the 90-day 
. period in order to ensure the proper implementation of the Efficiency Maine Trust Act; 
and 
W·hereas,in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the. following legislation as 
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immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
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lOBe it enacted by the People of the State of Maine as follows: 
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Sec. 1. 35-A MRSA §3210-C, suib-§3, as repealed and replaced by PL 2009, c. 
. 
415, Pt. A, §21, isamended to read: 
3. 
Commission authority. 
The commIssIon may· direct investor-owned 
transmission and distribution utilities to enter into long-term contracts for: 
A. Capacity resources; and 
B. 
Any available energy associated with capacity resources contracted under 
paragraph A: 
(1) To the extent necessary to fulfill the policy of subsection 2, paragraph A; or 
(2) 
If the commission determines appropriate for purposes of supplying or 
lowering the cost of standard-offer service or otherwise lowering the cost of 
electricity for the ratepayers in the State. Available energy contracted pursuant to 
this subparagraph maybe sold into the wholesale - electricity market in 
conjunction with solicitations for standard-offer supply bids. 
The commission shall direct investor-owned transmission and distribution utilities to 
enter into long-term contracts for capacity resources and any available energy associated 
with such resources to the. extent necessary to meet the energy efficiency targets 
articulated in the triennial plan as approved by the commission pursuant to section 10104, 
subsection 4. 
The commission may direct investor-owned transmission and distribution utilities to enter 
into contracts under this subsection only as agents for their customers and only in 
accordance with this secti9n. The commission may permit, but may not require, investor-
owned transmission and distribution utilities to enter into contracts for differences that are 
designed and intended to buffer ratepayers in the State from potential negative impacts 
from transmission development. To the greatest extent possible, the commission shall 
develop procedures for 
long~term contracts for investor-owned transmission and 
distribution .utilities under this subsection having the same legal and financial effect as the 
procedures used for standard-offer service pursuant to section 3212 for investor-owned 
transmission and distribution utilities .. 
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,The commission may enter into contracts for interruptible, dema,nd response or energy 
efficiency capacity resources. These contracts are not subject to the rules of the State 
Purchasing Agent. In a competitive solicitation conducted pursuant to subsection 6, the 
commission shall allow transmission and distribution utilities to submit bids for 
interruptible, or demand response or energy efficiency capacity resources. 
Capacity resources contracted under this subsection' may not exceed the amount 
necessary to ensure the reliability of the electric grid of this State, to meet the energy 
efficiency targets articulated in the triennial plan as approved by the commission pursuant 
to section 10104, subsection 4 or to lower customer costs as determined by the 
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commission pursuant to rules adopted under subsection 10; 
Unless the commission determines the public interest requires otherwise, a capacity 
resource may not be contracted under this subsection unless the commission determines, 
that the capacity resource is recognized as a capacity resource, for purposes of any 
regional or federal capacity requirements. 
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The commission shall ensure that any long-term contract authorized under this subsection 
is consistent with the State's goals for greenhouse gas red,uction under Title 38, section 
and the regional greenhouse gas initiative as de'scribed in the state climate action plan 
required in Title 38, section 577. 
Sec. 2. 35-A MRSA §3210-C, sub-§6, as enacted by PL 2005, c. 677, Pt. C, §1, 
is amended to read: 
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6. Competitive solicitation process and contract negotiation. 
For purposes of 
selecting potential capacity resources for contracting pursuant to subsection 3, the 
commission shall conducta competitive solicitation no less often than every 3 years if the 
commission determines that the likely benefits to ratepayers resulting from any contracts 
entered into as a result of the solicitation process will exceed the likely costs. Following 
review of bids, the commission may negotiate with one or 'more potential suppliers. 
When only one bid has been offered, or when the commission forgoes a competitive 
solicitation, the commission shall ensure that negotiations are based on full project cost 
discloslire by the potential supplier. The commission shall negotiate contracts that are 
commercially reasonable and that commit all parties to commercially reasonable 
behavior. The commission need not conduct a competitive solicitation for contracts for 
energy efficiency capacity resources if those resources cost less than an equivalent, 
amount of electricity supply purchased at the statewide average retail price, as determined 
by the commission, and are delivered through the programs of the Efficiency Maine Trust 
established in section 10103 in a manner that is consistent with the triennial plan as 
approved by the commission pursuant to section 10104, subsection 4. 
Sec. 3. 35-A MRS A §3210-C, sub-§9, as enacted by PL 2005, c. 677, Pt. C, § 1, 
is amended to read: 
9. 
Contract payments. Contracts for capacity and related, energy entered into 
pursuant to this section must provide that payments will be made only after contracted 
amounts of capacity and related energy have been provided. This subsection does not 
apply to contracts for energy efficiency capacity resources and related energy. 
Sec. 4. 35-A MRSA §lOl03, sub-§l, GjfC, as enacted by PL 2009, c. 372, Pt. B, 
§3, is amended to read: 
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C. Ensure that all· expenditures of the trust, are cost-effective in terms of avoided 
energy costs as provided by rules adopted pursuant to section 10105, subsection 5, 
paragraph A; and 
Sec. 5. 35-A MRSA §lOl04, sub-§4, as enacted by PL 2009, c. 372, pt, B, §3, is 
arnended to read: 
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4. Triennial plan. The board shall vote on a detailed, triennial, energy efficiency, 
alternative energy resources an~ conservation plan that includes the quantifiable measures 
of performance developed under subsection 3 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 all energy 
efficiency, alternative energy r~sources and conservation programs administered by the 
'trust, including but not limited to the electric efficiency and conservation programs under 
section 10110, the natural gas efficiency and conservation programs under section 10111, 
the Regional Greenhouse Gas Initiative Trust Fund under section 10109, the Heating, 
Fuels Efficiency and Weatherization Fund under section 10119 and any state or federal, 
funds or publicly directed funds accepted by or allocated to the trust for the purposes of 
this chapter. The triennial plan must include provisions for the application of appropriate 
program funds to support workforce development efforts that are consistent with and 
, promote the purposes of the trust. Beginning January 1, 2011, the triennial plan must 
include an examination of the national and regional carbon markets and the appropriate 
participation of the State in these markets. 
The plan must be cons\stent with the 
comprehensive state energy plan pursuant to Title 2; section 9, subsection, 3, paragraph C .. 
A. The triennial plan must be developed by the trust,in consultation with entities and 
agencies engaged in delivering efficiency programs in the State, to authorize and 
govern or' coordinate, implementation of energy efficiency and weatherization 
programs in the State. 
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, ' (l), Transmission and distribution utilities and natural gas utilities shall furnish 
data to the trust that the trust requests under this subsection subject to such 
confidential treatment as a 'utility may request and the board determines 
appropriate pursuant to section 10106.' The costs of providing the data are 
deemed ,reasonable and prudent expenses of the utilities and are recoverable i,n 
rates. 
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B. 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. 
C. The board shall review and approve the trienriial plan by affirmative vote of 2/3 of 
the trustees upon a finding that the plan is consistent with the statutory authority for 
each source of funds that will be u,sed to implement the plan, the state energy 
efficiency targets in paragraph F and the best practices of program administration 
under subsection 2. The plan must include, but is not limited to, efficiency and 
conservation 
program 
budget 
allocations, 
objectives, 
targets, 
measures of 
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performance, program designs, program implementation strategies, timelines and 
other relevant information. 
D.Prior to submission of the tri~nnial plan to the commission, the trust shall offer to 
provide a detailed briefing on the draft plan to the joint standing committee of the 
Legislature having jurisdiction over energy matters and, at the request of the 
committee, shall provide such a briefing and opportunity for, input from the 
committee. After providing such opportunity for input and making any changes as a 
result of any input received, the board shall deliver the plan to the commission for its 
review and approval. The commission shall open a proceeding and' issue an order 
either approving the plan or rejecting the plan and stating the reasons for the 
rejection. T~e commission shall reject elements of the plan that propose to use funds 
generated pursuant to sections 321O-C, 10110, 10111 or 10 119 if the plan fails to 
reasonably explain how these elements of the program would achieve the objectives 
and implementation requirements of the programs established under those sections or 
the measures of performance under subsection 3. 
Funds generated under these 
statutory authorities may not be used pursuant to ,the triennial plan unless those 
elements of the plan proposing to use the funds have been approved by th~ 
commission. The commission shall approve or reject any elements of the triennial 
plan within 60 days of its delivery to the commission. The board, within 15 days of 
final commission approval of its pi'an, shall submit the plan to the joint standing 
committee ofthe Legislature having jurisdiction over energy matters together with 
any explanatory orother supporting material as the committee may request and, at the 
request of ,the committee, shall provide a detailed briefing on the final plan. After 
receipt of the plan, the joint standing committee of the Legislature having jurisdiction 
over energy matters may'submit legislation relating to the plan. 
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E. The trust shall determine 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 commission. 
F. 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: 
(1) Weatherizing 100% of residences and 50% of businesses by 2030; 
(2) Reducing peak-load electric energy consumption by 100 megawatts by 2020; 
(3) Reducing the State's consumption of liquid fossil fuels by at least 30% by 
2030; 
(4) By 2020, achieving electricity and natural gas savings of at least 30% and 
heating fuel savings of at least 20% as defined in and determined pursuant to the 
measures of performance ratified by the commission under section 10120; 
(5) Capturing all cost-effective energy efficiency resources available for electric 
and natural gas utility ratepayers; . 
(6) Saving residential and commercial heating consumers not less than $3 for 
every $1 of program funds invested by 2020 in cost effective heating and cooling 
measures that oost less than conventional en en!''.' SUDDlv: 
(7) Building stable private sector jobs providing clean energy and energy 
' efficiency products and services in the State by 2020; and 
(8) Reducing greenhouse gas emissions from the heating and cooling of buildings 
in the State by amounts consistent with the State's goals .established in Title 38, 
section 576. 
. 
The trust shall preserve when possible and appropriate the opportunity for carbon 
emission reductions to be monetized and sold into a voluntary carbon market., Any 
program of the trust that supports weatherization of buildings must be voluntary and 
may not constitute a mandate that would prevent the sale of emission reductions 
generated through weatherization measures intI? a voluntary carbon market. 
As used in this paragraph, "heating fuel" means a fossil fuel used for the purposes of 
heating buildings or for domestic water heating, including liquefied petroleum gas, 
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kerosene or #2 heating' oil; but not including fuels when used for industrial or 
manufacturing processes, and "liquid fossil fuel" means any liquid fossil fuel or 
heating-fuel used for a purpose other than for transportation. 
Sec. 6. 3S-A MRS A §10:H.OS, sub-§7, as enacted by PL 2009, c. 372, Pt. S, §3, is 
amended to read: 
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7. Recommendations; advisory groups~ The trust may make recommendations to 
the Governor, the Legislature and other public officials regarding energy efficiency, 
, weatherization and renewable energy programs. 
The trust may establish technical 
advisory groups as needed for the purposes of gatheri,ng, technical knowledge on any 
aspect of energy conservation or policy and may consult with or retain independent legal 
counsel. 
Sec. 7. 3S-A MRSA §10107, as enacted by PL 2009, c. 372, Pt. S, §3, is amended' 
to read: 
§10107. Conflicts of interest; financial disclosure statements 
Each trustee is an "executive employee" for purposes of Title 5, sections 18, 18-A 
arid 19. A trustee or employee of the trust or a spouse or dependent child of any of those 
, individuals may not receive any direct personal benefit from the activities of the trust in 
assisting any private entity. This section does not prohibit corporations or other entities 
with which a trustee. is associated by reason of ownership or employment from 
participating in program activities with the trust if ownership or employment is made 
known to the board and the board or director trustee abstains from voting on matters 
, relating to that participation. 
Sec. 8. 3S-A MRS A §10110, sub-§5, as enacted by PL 2009, c. 372, Pt. S, §3, is 
amended to read: 
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5. Other assessments on transmission and distribution utilities. In accordance 
with the . triennial plan, 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 Regional Greenhouse Gas 
Initiative Trust Fund pursuant to section 10109; 
C. The amount of payments received from a forward capacity market as a result of 
conservation programs funded under this chapter; and 
D. 
Any other predictable sources of funding for or iI1vestment in conservation 
programs. 
Foj' the purposes of this subsection, I'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 
assessnient rather than reassessing all utilities in the current year. The commission shall 
determine the assessments under this subsection annually prior to May June 1 st and 
assess each utility for its pro rata share for expenditure, including funds for energy 
conservation programs, during the fiscal year beginning July I s1. 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 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 joint standing committee of the Legislature having 
jurisdicti~n over public utilities matters pursuailt to section 116 the triennial plan has 
bee~ reviewed by the joint standing committee of the Legislature having jurisdiction over 
energy matters and subsequently approved by the commissi·on in accordance with section 
10104, subsection 4, paragraph D. 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. 
Sec. 9. 35-A MRSA §10110,sub-§6, as enacted by PL 2009, c. 372, P1. B, §3, is 
amended to read: 
6. Transmission and subtransmission voltag~ 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 except to 
the extent that those programs are funded pursuant to long-term contracts for energy 
efficiency capacity resources and any available energy associated with such resources 
under section 321 O-C and in a manner that reflects the amount of such capacity resource 
and available energy procurement that is attributable to those customers as a whole, as 
determined by the commission. Those customers are not required to pay in rates any 
amount associated with the assessment imposed on transmission and distribution utilities 
un,dersubsection 4 or subsection 5. 
To remove the amount of the assessment under 
subsection 4, the commission shall reduce the rates of such customers by 0.145 cent per 
kilowatt-hOl.ir. For the purposes' of this section, "transmission voltage levels" means 44 
kilovolts or more, and "subtransmission voltage levels" means 34.5 kilovolts. 
Sec. 10. 3S-A MRSA §1011S, sub-§3 is enacted to read: 
3. Use of funds. All funds received pursuant to this section must be expended in 
accordance with the requirements of sections 10103, 10104 and 10105,· uriless 
specifically prohibited by federal law Or regulation. Funds to be expeilded for programs 
or projeCts related to weatherization and energy~efficient use of fossil fuels for heating' 
must be deposited in the Heating Fuels Efficiency and Weatherization Fund established in 
section 10119 and expended in accordance with that section. The trust may transfer any 
federal funds received pursuant to 42 United States Code, Sections 6321 to 6326 (2009) 
to the appropriate state agency as it considers necessary -to the extent that such funds are 
designated for a purpose that falls outside the energy efficiency and alternative energy 
programs.that the trust oversees and administers. 
Emergency clause. . In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
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SUMMARY 
This bill requires. the Public Utilities Commission to direct investor-owned 
transmission and distribution utilities to enter into long~term contracts for capacity 
resources and any available eriergy associated with such resources to the extent necessary 
to meet the energy efficiency targets articulated in the Efficiency Maine Trust's triennial 
plan. It specifies when .the commission need not conduct a competitive solicitation for 
contracts for energy efficiency capacity resources and amends the laws governing 
contracts for capacity resources and related cncrgy .. It defines "heating fuel" and "liqiJid 
fossil fuel"for purposes of the targets of the triennial plan. It includes in the Efficiency 
Maine Trust's triennial plan an examination of the national and regional carbon markets 
and the appropriate participation of the State in these markets. 
It allows the trust to 
consliit with or retain independent legal counsel. It provides that the commission may not 
charge any assessment under the triennial plan until the plan has been reviewed by the 
joint standing committee of the Legislature having jurisdiction over energy matters and 
approved by the commission. It specifies when electricity customers receiving service at 
transmission and subtransmissionvoltage levels are eligible for new conservation 
programs. 
It amends the laws governing the administration by the trust of celiain 
federally funded energy programs. 
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