An Act To Improve Efficiency Maine Trust Programs To Reduce Heating Costs and Provide Energy Efficient Heating Options for Maine's Consumers
Maine Legislature, Session 125, LD 1864
Committee Amendment CA_A_S508 (Senate)
Amends: Title 35-A, Section 10111, 35-A MRSA §10111, 35-A MRSA §10121

COMMITTEE AMENDMENT" A " to S.P. 649, L.D. 1864, Bill, "An Act To 
Improve Efficiency Maine Trust Programs To Reduce Heating Costs and Provide Energy 
Efficient Heating Options for Maine's Consumers" 
Amend the bill in section 2 in subsection 2 in the 2nd line (page 1, line 13 in L.D.) by 
striking out the following: "independent" and inserting the following: 'independent' 
Amend the bill in section 2 in subsection 2 by striking out all of paragraph B (page 1, 
lines 37 to 39 in L.D.) and inserting the following: 
'B. The board shall elect a chair, a vice-chair, a secretary and a treasurer from among 
the members. Each officer serves for a one-year term and is eligible for reelection.' 
Amend the bill by striking out all of section 3 (page 2, lines 4 to 13 in L.D.) and 
inserting the following: 
'Sec. 3. 35-A MRSA §lOl04, sub-§4, ~-l is enacted to read: 
B-1. 
In developing the triennial plan, the trust shall provide the joint standing 
committee of the Legislature having jurisdiction over energy matters an opportunity 
to provide input on the plan, which may occur at the same time the trust consults with 
other entities in the development of the plan. 
Sec. 4. 35-A MRSA §lOl04, sub-§12 is enacted to read: 
12. Budget transparency. The trust shall provide on January 30th and July 30th of 
each year to the joint standing committee of the Legislature having jurisdiction over 
energy matters a report that includes the trust's revenues and program expenses for the 
current fiscal year and program budgets for the next fiscal year for all the trust's funds and 
programs, whether or not subject to legislative allocation. The report must indicate any 
significant departures from the triennial plan approved pursuant to subsection 4 or an 
updated plan approved pursuant to subsection 6. 
After receiving a report, the joint 
standing committee of the Legislature having jurisdiction over energy matters may report 
out legislation relating to the trust. In accordance with applicable provisions of Title 5, 
chapter 149, the trust shall also prepare and submit to the State Budget Officer for 
COMMITTEE AMENDMENT 
COMMITIEE AMENDMENT" A "to S.P. 649, L.D. 1864 
inclusion in the budget of the State Government the amount of any funds administered by 
the trust that require legislative allocation in the budget. The joint standing committee of 
the Legislature having jurisdiction over energy matters shall make recommendations to 
the joint standing committee of the Legislature having jurisdiction over appropriations 
and financial affairs with regard to any proposed allocation of the trust's funds in any 
budget legislation. Within 30 days after enactment of legislation that includes an 
allocation of funds that affects the trust's triennial plan, the trust shall make any necessary 
adjustments to the triennial plan.' 
Amend the bill by striking all of sections 6, 7 and 8 and inserting the following: 
'Sec. 6. 35-A MRSA §10111, sub-§2, as enacted by PL 2009, c. 372, Pt. B, §3, is 
amended to read: 
2. Funding level. The natural gas conservation fund, which is a nonlapsing fund, is 
established to carry out the purposes of this section. The commission shall assess each 
gas utility that serves at least 5,000 residential customers an amount that is no less than 
3% of the gas utility's delivery revenues as defined by commission rule. In accordance 
with the triennial plan, the commission may assess a higher amount. 
All amounts 
collected under this subsection must be transferred to the natural gas conservation fund. 
Any interest on funds in the fund must be credited to the fund. Funds not spent in any 
fiscal year remain in the fund to be used for the purposes of this section. 
The assessments charged to gas utilities under this section are just and reasonable costs 
for rate-making purposes and must be reflected in the rates of gas utilities. 
All funds collected 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 
natural gas consumers served by the gas utilities assessed under this subsection. In the 
event funds are not expended or contracted 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 this 
subsection. 
Rules adopted by the commission under this subsection are routine technical rules as 
defined in Title 5, chapter 375, subchapter 2-A. 
Sec. 7. 35-A MRSA §10121, as amended by PL 2011, c. 314, §§2 to 4, is further 
amended to read: 
§10121. Energy Efficiency and Renewable Resource Fund 
1. 
Funding for energy efficiency and renewable resource research and 
development; community demonstration projects; rebates for cost-effective energy 
efficiency and renewable energy technologies. The trust by rule shall establish and 
administer a program allowing retail consumers of electricity to make voluntary 
contributions to fund energy efficiency and renewable resource research and 
development, to fund community demonstration projects using energy efficiency and 
renewable energy technologies and to fund rebates for cost-effective energy efficiency 
and renewable energy technologies. The program must: 
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COMMITTEE AMENDMENT" An to S.P. 649, L.D. 1864 
A. 
Include a mechanism for customers to indicate their willingness to make 
contributions; 
B. Provide that transmission and distribution utilities collect and account for the 
contributions and forward them to the trust; 
C. Provide for a distribution of the funds through a competitive bid process to the 
University of Maine System, the Maine Maritime Academy or the Maine Community 
College System for energy efficiency and renewable resource research and 
development; 
D. 
Provide for a distribution of the funds through a competitive bid process to 
Maine-based nonprofit organizations that qualify under the federal Internal Revenue 
Code, Section 501(c)(3), consumer-owned transmission and distribution utilities, 
community-based 
nonprofit 
organizations, 
community 
action 
programs, 
municipalities, quasi-municipal corporations or districts as defined in Title 30-A, 
section 2351, community-based renewable energy projects as defined in section 
3602, subsection 1 and school administrative units as defined in Title 20-A, section 1 
for community demonstration projects using energy efficiency and renewable energy 
technologies; 
E. Provide for an annual distribution of 35% of the funds to the Maine Technology 
Institute to support the development and commercialization of energy efficiency and 
renewable energy technologies; and 
F. 
Provide rebates for cost-effective energy efficiency and renewable energy 
technologies as determined by the trust. 
2. Fund established. There is established the Energy Efficiency and Renewable 
Resource Fund, referred to in this section as "the fund." The fund is a nonlapsing fund 
administered by the trust. All funds collected by the trust pursuant to subsection 1 must 
be deposited in the fund for distribution by the trust in accordance with subsection 1. The 
trust may seek and accept funding for the program established pursuant to subsection 1 
from other sources, public or private. Any funds accepted for use in the program 
established pursuant to subsection 1 must be deposited in the fund. Funds not spent in 
any fiscal year remain in the fund to be used for the purposes of this section. Any interest 
earned on funds in the fund must be credited to the fund. 
The trust may allocate funds pursuant to subsection 1, paragraphs C, D and F from the 
fund to most effectively meet the objectives of the triennial plan pursuant to section 
10104, subsection 4. 
3. Report. The trust shall report by December 1st of each year to the joint standing 
committee of the Legislature having jurisdiction over utilities and energy matters on the 
fund. The report must include: 
A. A description of actions taken by the trust pursuant to subsections 1 and 2 during 
the prior 12 months; 
B. An accounting of total deposits into and expenditures from the fund during the 
prior 12 months; and 
COMMITTEE AMENDMENT 
COMMITIEE AMENDMENT" A" to S.P. 649, L.D. 1864 
C. 
A description of any research and development or community demonstration 
project that received a distribution from the fund during the prior 12 months, 
including its objectives, current status and results. 
4. Rulemaking. The trust shall adopt rules to implement this section. The rules 
must include, but are not limited to: 
A. 
Selection criteria for the competitive bid process pursuant to subsection 1, 
paragraphs C and D, including, but not limited to, the cost-effectiveness of the project 
or development and the likelihood that the renewable energy technology will be 
adopted on a broader scale in this State; and 
B. 
Qualification criteria for rebates for energy efficiency and renewable energy 
technologies pursuant to subsection 1, paragraph F, including, but not limited to, 
cost-effectiveness and quality assurance requirements. 
Rules adopted under this subsection are routine technical rules pursuant to Title 5, chapter 
375, subchapter 2-A. 
Sec. 8. Report. The Governor's Office of Energy Independence and Security or its 
successor shall provide to the joint standing committee of the Legislature having 
jurisdiction over energy matters by January 15, 2013 a report of its assessment of the 
Efficiency Maine Trust's effectiveness in delivering natural gas conservation programs 
pursuant to the Maine Revised Statutes, Title 35-A, Section 10111. The assessment must 
include, but need not be limited to: 
1. 
The annual cost of the natural gas system benefit charge on the average 
residential, commercial and industrial customer; 
2. The number of programs operated by the Efficiency Maine Trust that are designed 
to benefit natural gas customers in the service territory of the natural gas utility that is 
assessed the natural gas system benefit charge; and 
3. 
The proportion of the natural gas system benefit charge that is delivered as 
benefits to customers and the proportion that is expended on administrative costs. 
Sec. 9. Efficient heating equipment report. The Efficiency Maine Trust shall 
report to the joint standing committee of the Legislature having jurisdiction over energy 
matters by March 31, 2013 its findings and recommendations relating to efficient heating 
options for residential and small business consumers. The report must be based on the 
results of the Efficiency Maine Trust's competitive heating equipment innovation project, 
low-income heating equipment installations and any other relevant research or activities 
conducted by or available to the trust. The report must include information on the cost-
effectiveness of different heating equipment options and whether and to what degree the 
Efficiency Maine Trust's programs are assisting consumers in this State in improving the 
efficiency of their heating systems. 
The report must include a description of what 
constitutes efficient electric heating equipment and provide any findings of the Efficiency 
Maine Trust regarding the effectiveness of emerging electric technologies, as well as any 
findings regarding efficient use of oil, gas, wood or other fuels. The report must identify 
any market barriers or impediments to consumers installing more efficient heating 
systems, as well as any administrative, funding or policy barriers affecting the Efficiency 
Maine Trust's ability to assist consumers in installing efficient heating systems. The 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A .. to S.P. 649, L.D. 1864 
report must specifically identify options for any changes in statute or rules needed to 
provide loans or utility on-bill financing to consumers for efficient heating equipment. 
Sec. 10. 
Pilot program. 
Notwithstanding any other provision of law, in 
accordance with this section, a transmission and distribution utility may develop and 
implement, upon approval of the Public Utilities Commission, a pilot program within its 
service territory to measure the effectiveness of efficient electric heating systems and may 
advertise the availability of its pilot program to its customers. 
1. Approval; rate-making treatment. A transmission and distribution utility must 
submit its proposed pilot program to the Public Utilities Commission for approval. The 
commission shall examine the proposal and, if it finds the proposal is reasonably 
designed and consistent with the provisions of this section, shall approve the pilot 
program. 
For rate-making purposes under the Maine Revised Statutes, Title 35-A, 
chapter 3, the commission shall treat the activities of a transmission and distribution 
utility under an approved pilot program as regulated activities of the utility. 
2. 
Program elements. 
Under an approved pilot program, a transmission and 
distribution utility: 
A. May provide efficient electric heat pumps or electric thermal storage units to up 
to 500 residential or small business customers within its service territory; 
B. Must determine that the overall energy costs to each customer participating in the 
pilot program will decrease as a result of participation in the pilot program, as 
measured by the customer's overall energy costs, regardless of the source of energy, 
and the financing costs associated with participation in the pilot program; 
C. May provide on-bill financing to customers participating in the pilot program on 
terms and conditions and cost of capital approved by the Public Utilities Commission. 
The terms of any financing may not exceed 5 years and any delinquency or bad debt 
expenses must be recovered through the pilot program, as approved by the 
commission, and may not be recovered from the transmission and distribution utility's 
ratepayers; 
D. May offer rebates to participating customers to be applied to the total installation 
cost of the efficient electric heat pumps or electric thermal storage units; and 
E. May enroll customers in the pilot program only until December 31, 2013. 
3. Measurement and analysis; report. Each transmission and distribution utility 
that implements a pilot program under this section shall measure and report to the Public 
Utilities Commission by November 15, 2013 on: 
A. The overall reduction in energy use by participating customers; 
B. The reduction in energy costs for participating customers; 
C. The repayment experience of participating customers; 
D. The effectiveness of the heating equipment installed under the pilot program; 
E. The extent to which participating customers also took advantage of any programs 
offered by the Efficiency Maine Trust; and 
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COMMITTEE AMENDMENT" A" to S.P. 649, L.D. 1864 
F. The effect of the program on the electric grid, including effects during off-peak 
and peak times and seasons. 
The Public Utilities Commission shall analyze the reports submitted under this subsection 
and shall submit those reports, together with any analyses, findings or recommendations 
of the commission related to the reports and the pilot programs to the joint standing 
committee of the Legislature having jurisdiction over energy matters by January 15, 
2014.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment accomplishes the following: 
1. It preserves that portion of the bill that renames and expands the Renewable 
Resource Fund to include energy efficiency, but removes all the other changes made by 
the bill to that fund; 
2. It preserves that portion of the bill that clarifies that the Efficiency Maine Trust is 
a body corporate and politic and a public instrumentality of the State, but removes the 
changes to the board made by the bill; 
3. It replaces the portion of the bill relating to the Efficiency Maine Trust budget to 
clarify and maintain the current allocation process for those funds of the trust that are 
collected by the Public Utilities Commission for use by the trust and subject to allocation. 
It directs the joint standing committee of the Legislature having jurisdiction over energy 
matters to make recommendations to the joint standing committee of the Legislature 
having jurisdiction over appropriations and financial affairs with respect to any proposed 
allocation of the trust's funds. It also adds a requirement that the trust provide semiannual 
budget reports to the joint standing committee of the Legislature having jurisdiction over 
energy matters that include all the trust's revenues and expenses for the current and next 
fiscal years and that identify any significant departures from the trust's triennial plan. 
That committee is authorized to report out legislation relating to the trust upon review of 
the report; 
4. It adds a provision directing the Efficiency Maine Trust to provide the joint 
standing committee of the Legislature having jurisdiction over energy matters an 
opportunity to provide input during the development of the trust's triennial plan; 
5. It preserves that portion of the bill that adds a standard indemnification provision 
for trustees of the Efficiency Maine Trust; 
6. It preserves that portion of the bill that directs the Efficiency Maine Trust to 
develop in partnership with energy providers and transmission and distribution utilities 
programs to provide customers with information on energy options to promote efficiency 
and alternative energy resources; 
7. It replaces the portions of the bill that created an efficient electric heat program 
and horne heating equipment rebate program with an authorization for transmission and 
distribution utilities to develop and implement pilot programs to measure the 
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COMMITTEE AMENDMENT" A" to S.P. 649, L.D. 1864 
effectiveness of electric heat pumps and electric thermal storage units. 
The pilot 
programs are subject to review and approval by the Public Utilities Commission. Each 
transmission and distribution utility may provide up to 500 heating units within its service 
territory. 
It also directs the Efficiency Maine Trust to report to the joint standing 
committee of the Legislature having jurisdiction over energy matters by March 31, 2013 
on its findings and recommendations relating to efficient heating options for residential 
and small business consumers; and 
8. It adds additional provisions that provide that natural gas conservation programs 
administered by the Efficiency Maine Trust must ensure that the programs benefit the 
consumers served by the gas utilities assessed under the natural gas conservation 
programs and directs the Governor's Office of Energy Independence and Security or its 
successor to assess the trust's effectiveness in delivering these programs. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
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Approved: 03126112 ;tvae 
LD 1864 
LR 2796(02) 
An Act To Improve Efficiency Maine Trust Programs To Reduce Heating Costs and Provide Energy 
Efficient Heating Options for Maine's Consumers 
Fiscal Detail and Notes 
Fiscal Note for Bill as Amended by Committee Amendment "A" S-50'&' 
Committee: Energy, Utilities and Technology 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue Funds 
This bill amends the Efficiency Maine Trust Act to change the governance and budget structures; to place an equal 
emphasis on programs regarding alternative heating energy sources and energy efficiency; to establish cost-effective 
heating programs; and to expand a voluntary renewable resource fund to include energy efficiency. Any additional 
costs to the Efficiency Maine Trust can be absorbed within existing budgeted resources. 
LR2796(02) - Fiscal Note - Page 1 of 1