An Act To Create Affordable Heating Options for Maine Residents and Reduce Business Energy Costs
Maine Legislature, Session 126, LD 1425
Committee: Energy, Utilities and Technology
Sponsors: DUNPHY, FREDETTE, GIDEON, CLEVELAND, KATZ, SAVIELLO, THIBODEAU, YOUNGBLOOD
Amends: 35-A MRSA §10103, 35-A MRSA §10104, 35-A MRSA §10109, 35-A MRSA §10110, 35-A MRSA §10120, 38 MRSA §579, 38 MRSA §580-A, 38 MRSA §580-B

Legislative Document 
No. 1425 
H.P. 1013 
House of Representatives, April 17, 2013 
An Act To Create Affordable Heating Options for Maine Residents 
and Reduce Business Energy Costs 
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed. 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative DUNPHY of Embden.  (GOVERNOR'S BILL) 
Cosponsored by Representatives: FREDETTE of Newport, GIDEON of Freeport, Senators: 
CLEVELAND of Androscoggin, KATZ of Kennebec, SAVIELLO of Franklin, THIBODEAU 
of Waldo, YOUNGBLOOD of Penobscot. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  35-A MRSA §10103, sub-§1, ¶B, as enacted by PL 2009, c. 372, Pt. B, 
§3, is repealed and the following enacted in its place: 
B.  Reduce energy costs and improve security of the state and local economies. The 
trust shall administer cost-effective energy and energy efficiency programs consistent 
with applicable requirements of this chapter or other law to help individuals and 
businesses meet their energy needs at the lowest cost and generally to improve the 
economic security of the State by: 
(1)  Reducing the cost of energy to residents of the State; 
(2)  Maximizing the use of cost-effective weatherization and energy efficiency 
measures, including measures that improve the energy efficiency of energy-using 
systems, such as heating and cooling systems and system upgrades to energy 
efficient systems that rely on affordable energy resources; 
(3)  Reducing economic insecurity from the inefficient use of expensive fossil 
fuels; 
(4)  Increasing new jobs and business development to deliver affordable energy 
and energy efficiency products and services; 
(5)  Enhancing heating benefits for households of all income levels through 
implementation of cost-effective efficiency programs, including weatherization 
programs and affordable heating systems, that will produce comfort, improve 
indoor air quality, reduce energy costs for those households and reduce the need 
for future fuel assistance; 
(6) Simplifying and enhancing consumer access to technical assistance and 
financial incentives relating to energy efficiency and the use of alternative energy 
resources by merging or coordinating dispersed programs under a single 
administrative unit possessing independent management and expertise; and 
(7) Using cost-effective energy and energy efficiency investments to reduce 
greenhouse gas emissions; 
Sec. 2.  35-A MRSA §10103, sub-§1, ¶D, as enacted by PL 2009, c. 372, Pt. B, 
§3, is amended to read: 
D.  Actively promote investment in cost-effective energy and energy efficiency 
measures and systems that use alternative energy resources that reduce overall energy 
costs for consumers in the State. 
Sec. 3.  35-A MRSA §10103, sub-§2, ¶A, as amended by PL 2011, c. 637, §2 
and c. 655, Pt. MM, §18 and affected by §26, is repealed and the following enacted in its 
place: 
A.  The board consists of the following 11 voting members: 
(1)  The Director of the Governor's Energy Office; 
(2)  The Commissioner of Economic and Community Development or the 
commissioner's designee; 
(3)  The Commissioner of Environmental Protection or the commissioner's 
designee; and 
(4)  Eight members appointed by the Governor, reviewed by the joint standing 
committee of the Legislature having jurisdiction over energy matters and 
approved by the Senate.  Among these 8 members: 
(a)  One must represent the interests of commercial energy consumers; 
(b)  One must represent the interests of industrial energy consumers; 
(c)  One must represent the interests of small business energy consumers; and 
(d)  One must represent the interests of residential energy consumers and 
low-income energy consumers; and 
(e)  Four persons must collectively possess knowledge of and experience in 
financial matters and consumer advocacy and possess substantial 
management expertise or knowledge of or experience with conservation fund 
programs, carbon reduction programs or energy efficiency or climate change 
policy. 
The requirements of this subparagraph may be met through the appointment of 
one or more persons who satisfy more than one of the requirements, as long as at 
any one time the 8 members include among them members who adequately 
represent the identified interests and who possess the required knowledge, 
expertise and experience. 
Appointed members serve 3-year terms.  If an appointed member is unable to 
complete the term, the Governor shall appoint a replacement for the remainder of 
the unexpired term. 
Sec. 4.  35-A MRSA §10103, sub-§4, as amended by PL 2009, c. 655, Pt. B, §3, 
is further amended to read: 
4.  Program funding.  The board may apply for and receive grants from state, 
federal and private sources for deposit into appropriate program funds including funds for 
both residential and business programs. The board may deposit in appropriate program 
funds the proceeds of any bonds issued for the purposes of programs administered by the 
trust.  The board may receive and shall deposit in appropriate program funds revenue 
resulting from any forward capacity market or other capacity payments from the regional 
transmission organization that may be attributable to by those projects funded by those 
funds.  The board shall deposit into appropriate program funds revenue transferred to the 
trust from the energy infrastructure benefits fund pursuant to Title 5, section 282, 
subsection 9 for use in accordance with subsection 4-A. The board may also deposit any 
grants or other funds received by or from any entity with which the trust has an 
agreement or contract pursuant to this chapter if the board determines that receipt of those 
funds is consistent with the purposes of this chapter. 
Sec. 5.  35-A MRSA §10103, sub-§4-A, ¶A, as enacted by PL 2009, c. 655, Pt. 
B, §4, is repealed and the following enacted in its place: 
A.  To ensure the steady transition to improving the State's economy, the trust shall 
pursue lower energy costs for people, communities and businesses in a manner that 
will not undermine the environment of the State and in accordance with the triennial 
plan.  In the expenditure of funds pursuant to this paragraph, the trust may provide 
grants, loans, programs and incentives on a competitive basis. 
Sec. 6.  35-A MRSA §10104, sub-§1, as enacted by PL 2009, c. 372, Pt. B, §3, is 
amended to read: 
1.  Generally.  In accordance with this section and other applicable law, the trust 
administers and disburses funds and coordinates programs to promote reduced energy 
costs, energy efficiency and increased use of alternative energy resources in the State. 
The trust is responsible for accounting for, evaluating and monitoring all activities of the 
trust and all programs funded in whole or in part by the trust. 
Sec. 7.  35-A MRSA §10104, sub-§2, ¶B, as enacted by PL 2009, c. 372, Pt. B, 
§3, is amended to read: 
B.  The effectiveness of programs is maximized by building up and centralizing 
expertise, addressing conflicts of interest, mitigating the influence of politics, 
promoting flexible, timely program management and providing a champion for 
funding cost-effective energy and energy efficiency programs; 
Sec. 8.  35-A MRSA §10104, sub-§3, as enacted by PL 2009, c. 372, Pt. B, §3, is 
amended to read: 
3.  Measures of performance.  The trust shall develop quantifiable measures of 
performance for all programs it administers and to which it will hold accountable all 
recipients of funding from the trust and recipients of funds used to deliver energy and 
energy efficiency and weatherization programs administered or funded by the trust.  Such 
measures may include, but are not limited to, reduced energy consumption, increased use 
of alternative energy resources, upgrades to more affordable heating systems, reduced 
capacity demand for natural gas, electricity and fossil fuels, 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. 
Sec. 9.  35-A MRSA §10104, sub-§4, as amended by PL 2011, c. 637, §3, is 
further amended to read: 
4.  Triennial plan.  The board shall vote on a detailed, triennial, energy efficiency, 
alternative energy resources and 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 
programs including programs to reduce energy costs for residents of the State, energy 
efficiency, alternative energy resources and conservation programs administered by the 
trust, including but not limited to the electric efficiency energy 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 specify the appropriate participation of the State in national and 
regional carbon markets.  The plan must be consistent 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 energy and energy efficiency programs in the State, to 
authorize and govern or coordinate implementation of energy and energy efficiency 
and weatherization programs in the State. 
(1)  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 in 
rates. 
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. 
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. 
C.  The board shall review and approve the triennial 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 used to implement the plan, the state energy 
efficiency targets in paragraph F G 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 
performance, program designs, program implementation strategies, timelines and 
other relevant information. 
D.  Prior to submission of the triennial 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.  The commission shall reject elements of the plan that propose to use funds 
generated pursuant to sections 3210-C, 10110, 10111 or 10119 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 the 
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 plan, shall submit the plan to the joint standing 
committee of the Legislature having jurisdiction over energy matters together with 
any explanatory or other 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. 
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 cost less than conventional energy supply; 
(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 into 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, 
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. 
G.  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)  Reducing heating costs for residents of the State; 
(2)  Weatherizing, as defined by the trust, 100% of residences and 50% of 
businesses by 2030 and interim goals established by the trust; 
(3)  Reducing peak-load electric energy consumption by 100 megawatts by 2020; 
(4)  Reducing the State's consumption of liquid fossil fuels as a share of gross 
state product by at least 30% by 2030; 
(5)  By 2020, achieving electricity and natural gas savings as a share of gross 
state product of at least 30% and heating fuel savings as a share of gross state 
product of at least 20% as defined in and determined pursuant to the measures of 
performance ratified by the commission under section 10120; 
(6) Capturing all cost-effective energy efficiency resources available for electric 
and natural gas utility ratepayers; 
(7) 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 cost less than conventional energy supply; 
(8) Building stable private sector jobs providing clean energy and energy 
efficiency products and services in the State by 2020; and 
(9) 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 into 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, 
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. 10.  35-A MRSA §10109, sub-§3, as enacted by PL 2009, c. 372, Pt. B, §3, 
is repealed. 
Sec. 11.  35-A MRSA §10109, sub-§§3-A and 3-B are enacted to read: 
3-A.  Investing in affordable energy costs.  The portion of revenue dedicated to the 
Regional Greenhouse Gas Initiative Trust Fund under subsection 2 generated from 
residential consumers must be used for investment in projects that lower residential 
heating energy demand consistent with greenhouse gas reduction.  The program must be 
technology-neutral and may include, but is not limited to, energy efficiency 
improvements, upgrades to advanced heating systems including efficient natural gas 
systems, efficient propane systems, wood pellet systems, efficient heating oil systems, 
heat pumps, renewable energy systems and any other system that will significantly reduce 
residential energy costs and greenhouse gas emissions, as determined by the board.  The 
board shall give priority to measures with the highest benefit-to-cost ratio and may 
develop specific programs for extremely high-cost regions of the State. 
3-B.  Reducing business electricity prices.  The portion of revenue dedicated to the 
Regional Greenhouse Gas Initiative Trust Fund under subsection 3 generated from 
business and industrial consumers must be used for rebates or prospective rate reductions 
calculated on a per-kilowatt-hour basis pursuant to sections 301 and 1322.  The 
commission may request a transfer from the trust for the purposes of this subsection.  The 
commission shall adopt rules to implement this subsection and may provide for a 
nonuniform electric rate reduction to maximize the benefit to the State's economy. The 
rules must establish a system under which proceeds from the sale of carbon dioxide 
allowances may be returned to electric ratepayers as direct credits on their bills at times 
of heightened price pressure in regional carbon dioxide allowance markets due to an 
extraordinary circumstance. Rules adopted under this subsection are routine technical 
rules as defined in Title 5, chapter 375, subchapter 2-A. 
Sec. 12.  35-A MRSA §10109, sub-§4, as amended by PL 2009, c. 565, §6 and 
affected by §9, is further amended to read: 
4.  Further expenditures.  The trust fund must be expended used to make further 
expenditures 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 shall fund 
conservation programs that give priority to measures with the highest benefit-to-cost 
ratio, as long as cost-effective collateral efficiency opportunities are not lost, and that: 
(1)  Reliably reduce greenhouse gas production by fossil fuel combustion in the 
State at the lowest cost in funds from the trust fund per unit of emissions; or 
(2)  Reliably reduce the consumption of electricity in the State at the lowest cost 
in funds from the trust fund per kilowatt-hour saved. 
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 
board under section 10105.  Rules adopted by the board 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 board 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 fuel energy 
efficiency and conservation and associated greenhouse gas reductions, subject to the 
apportionment between fossil fuel and electricity conservation set forth in paragraph 
A.  Community-based renewable energy projects, as defined in section 3602, 
subsection 1, may apply for funding from the trust as nonelectric savings programs. 
E.  The size of a project funded by the trust fund is not limited as long as funds are 
awarded to maximize energy efficiency and support greenhouse gas reductions and to 
fully implement the triennial plan. 
F.  No more than $800,000 of trust fund receipts in any one year may be used for the 
costs of administering the trust fund pursuant to this section. The limit on 
administrative costs established in this paragraph does not apply to the following 
costs that may be funded by the trust fund: 
(1) Costs of the Department of Environmental Protection for participating in the 
regional organization as defined in Title 38, section 580-A, subsection 20 and for 
administering the allowance auction under Title 38, chapter 3-B; and 
(2) Costs of the Attorney General for activities pertaining to the tracking and 
monitoring of allowance trading activity and managing and evaluating the trust's 
funding of conservation programs. 
F-1.  Trust fund receipts may be used to fund: 
(1) Costs of the Department of Environmental Protection for participating in the 
regional organization as defined in Title 38, section 580-A, subsection 20 and for 
administering the allowance auction under Title 38, chapter 3-B.  The 
department's projected costs must be forwarded from the trust fund at the 
beginning of each fiscal year and may include, among other costs, the 
administration and oversight of the State's participation in the carbon dioxide 
cap-and-trade program as authorized in Title 38, chapter 3-B; and. 
(2) Costs of the Attorney General for activities pertaining to the tracking and 
monitoring of allowance trading activity and managing and evaluating the trust's 
funding of conservation programs. 
G.  In order to minimize administrative costs and maximize program participation 
and effectiveness, the trustees shall, to the greatest extent feasible, coordinate the 
delivery of and make complementary the energy efficiency programs under this 
section and other programs under this chapter. 
H.  The trust 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. 
J.  Trust fund receipts may must 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 F-1. 
Sec. 13.  35-A MRSA §10110, sub-§2, as amended by PL 2011, c. 637, §6, is 
further amended to read: 
2.  Programs.  The trust shall develop and implement conservation and energy 
programs to help reduce energy costs for electricity residential energy consumers in the 
State by the maximum amount possible.  The trust shall establish and, on a schedule 
determined by the trust, revise objectives and an overall energy strategy for conservation 
residential energy programs, including conservation programs.  Conservation and energy 
programs implemented by the 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 board by rule.  In defining "cost-effective," the board may 
consider the extent to which a program promotes sustainable economic development or 
reduces environmental damage to the extent the board can quantify or otherwise 
reasonably identify such effects.  Consistent with the other requirements of this section, 
the trust, in adopting and implementing conservation programs, shall seek to reduce total 
residential energy costs, encourage efficiency in electricity use, provide affordable energy 
through electricity and provide incentives for the development of new, energy-efficient 
business activity in the State and take into account the costs and benefits of energy 
efficiency and conservation to existing business activity in the State. 
A.  The trust shall consider, without limitation, conservation and energy programs 
that: 
(1)  Increase consumer awareness of cost-effective options for conserving 
affordable energy; 
(2)  Create more favorable market conditions for the increased use of energy-
efficient products and services; 
(3)  Promote sustainable economic development and reduce environmental 
damage;  
(4)  Reduce the price of electricity over time for all consumers by achieving 
reductions in demand for electricity during peak use periods; and 
(5)  Reduce total energy costs for electricity consumers in the State by increasing 
the efficiency with which electricity is consumed. 
B.  The trust, with regard to the assessment imposed under subsection 4, shall: 
(1)  Target at least 20% of funds to programs for low-income residential 
consumers, as defined by the board by rule; 
(2)  Target at least 20% of funds to programs for small business consumers, as 
defined by the board by rule; and 
(3)  To the greatest extent practicable, apportion remaining funds among 
customer groups and geographic areas in a manner that allows all other customers 
to have a reasonable opportunity to participate in one or more conservation 
programs. 
C.  The 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 trust shall monitor conservation and energy planning and program 
development activities in the region and around the country. 
E.  The trust shall implement conservation and energy programs by contracting with 
service providers in accordance with subsection 3. 
F.  The trust shall monitor and evaluate the delivery of conservation and energy 
programs by service providers and assess the cost-effectiveness of programs in 
meeting the objectives and overall strategy established by the trust. 
G.  The trust, to the extent possible, shall coordinate its efforts with other agencies of 
the State with energy-related responsibilities. 
H.  The 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 trust. 
I.  The 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 and energy 
planning or conservation and energy program delivery, if the trust finds that such 
coordination or agreements would provide demonstrable benefits to citizens of the 
State and be consistent with this section, the conservation and energy programs and 
the objectives and overall strategy for the conservation and energy programs. 
J.  The trust shall encourage school facility managers to complete an energy 
efficiency training and certification program established and conducted by the trust 
under this section.  To the extent the trust determines necessary and appropriate to 
meet the goals of this paragraph, the 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 persons 
employed by school administrative units in this State who are responsible for the 
design or operation of school administrative unit facilities or the heating, ventilation 
or air conditioning systems or equipment used in such facilities. 
K.  The trust shall provide programs developed in partnership with energy providers, 
such as transmission and distribution utilities, to provide consumers with information 
on energy options to promote energy efficiency and increased use of alternative 
energy resources in the State. 
Sec. 14.  35-A MRSA §10110, sub-§4, as enacted by PL 2009, c. 372, Pt. B, §3, 
is amended to read: 
4.  Funding level; base assessment.  The commission shall assess transmission and 
distribution utilities to collect funds for conservation and energy programs and 
administrative costs in accordance with this subsection and shall make other assessments 
in accordance with subsection 5.  The amount of all assessments by the commission 
under this subsection plus expenditures of a transmission and distribution utility 
associated with prior conservation efforts must result in conservation and energy 
expenditures by each transmission and distribution utility, not including expenditures on 
assessments under subsection 5, that are fixed at a rate of 0.145 cent per kilowatt-hour in 
2013 dollars. 
Sec. 15.  35-A MRSA §10110, sub-§5, as amended by PL 2009, c. 518, §10, is 
further amended to read: 
5.  Other assessments on transmission and distribution utilities.  In accordance 
with the triennial plan, the commission shall assess propose an assessment on each 
transmission and distribution utility based on the utility's gross operating revenue as to 
the extent the commission determines that such an assessment is necessary to realize all 
available energy efficiency and demand reduction cost-effective energy 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 investment in conservation 
programs. 
For the purposes of this subsection, "gross operating revenue" means revenue derived 
from filed rates, except from sales for resale.  The commission may correct any errors in 
the assessments under this subsection by means of a credit or debit to the following year's 
assessment rather than reassessing all utilities in the current year.  The commission shall 
may determine the assessments under this subsection annually prior to June 1st and assess 
each utility for its pro rata share for expenditure, including funds for energy and energy 
conservation programs, during the fiscal year beginning July 1st.  The commission may 
not increase any assessment under this subsection until the Legislature has approved the 
Efficiency Maine Trust's budget.  Following the commission's approval of the triennial 
plan pursuant to section 10104, subsection 4 or any update plan pursuant to section 
10104, subsection 6, the commission shall may present any recommended increase in the 
assessment under this subsection to the joint standing committee of the Legislature 
having jurisdiction over public utilities matters.  An increase in an assessment under this 
subsection after December 31, 2013 may not be collected until the Legislature has 
approved the Efficiency Maine Trust's budget, including specifically any increase in 
assessment proposed by the commission under this subsection.  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. 16.  35-A MRSA §10110, sub-§6, as enacted by PL 2009, c. 372, Pt. B, §3, 
is repealed. 
Sec. 17.  35-A MRSA §10110, sub-§6-A is enacted to read: 
6-A.  Business electricity price relief.    After December 31, 2013, industrial 
electricity customers receiving service are not eligible for new conservation programs 
undertaken under this section, and those customers are not required to pay in rates any 
amount associated with the assessment imposed on transmission and distribution utilities 
under subsection 4 or subsection 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-hour. 
Sec. 18.  35-A MRSA §10110, sub-§7, as enacted by PL 2009, c. 372, Pt. B, §3, 
is amended to read: 
7.  Energy and conservation program fund.  The trust shall establish a an energy 
and conservation program fund to be used solely for cost-effective energy and 
conservation programs. 
A.  The commission shall deposit all assessments collected pursuant to this section, 
other than funds deposited in the administration fund, into the program fund. 
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 
energy and conservation programs. 
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 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, it 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. 
Sec. 19.  35-A MRSA §10120, sub-§1, as enacted by PL 2009, c. 372, Pt. B, §3, 
is amended to read: 
1.  Measures of performance.  The trust shall incorporate measures of performance 
in the triennial plan. The measures of performance must define the electricity, natural gas 
and heating fuel savings targets established in section 10104, subsection 4, paragraph F G 
and specify the measures for assessing progress in meeting the targets. The commission 
shall ratify measures of performance incorporated in the triennial plan if it finds that these 
measures satisfy the requirements of this chapter, including the principles described in 
section 10104, subsection 2, and are in the public interest. The commission and the trust 
may revise one or more of the measures of performance in the triennial plan at any time 
by mutual agreement. 
Sec. 20.  38 MRSA §579, first ¶, as amended by PL 2007, c. 608, §3, is further 
amended to read: 
The department may participate in the regional greenhouse gas initiative as described 
in the climate action plan required in section 577. The commissioner or the 
commissioner's designee and the members chair of the Public Utilities Commission or the 
chair's designee are authorized to act as representatives for the State in the regional 
organization as defined in section 580-A, subsection 20, may contract with organizations 
and entities when such arrangements are necessary to efficiently carry out the purposes of 
this section and may coordinate the State's efforts with other states and jurisdictions 
participating in that initiative, with respect to: 
Sec. 21.  38 MRSA §580-A, sub-§9-A is enacted to read: 
9-A.  Cost containment reserve.  "Cost containment reserve" means an allowance or 
allowances that are offered for sale at an auction by the State for the purpose of 
containing the cost of carbon dioxide allowances. A cost containment reserve allowance 
offered for sale at an auction is separate from and additional to carbon dioxide allowances 
allocated by the department under this chapter. 
Sec. 22.  38 MRSA §580-B, sub-§3, as enacted by PL 2007, c. 317, §17, is 
amended to read: 
3.  Base annual budget.  The base annual carbon dioxide emissions budget is 
established at 5,948,902 tons of carbon dioxide.  Beginning with the year 2015, the 
annual carbon dioxide emissions budget must decline by 148,722 tons per year until 2018 
so that the annual carbon dioxide emissions budget for 2018 is 10% below the base 
annual carbon dioxide emissions budget. Commencing January 1, 2014, the base annual 
carbon dioxide emissions budget is established at 3,276,000 tons of carbon dioxide. 
Beginning with the year 2015, the annual carbon dioxide emissions budget must decline 
by 2.5% each year through the year 2020. 
Sec. 23.  38 MRSA §580-B, sub-§4, ¶A-1 is enacted to read: 
A-1.  Provisions for the establishment of a mechanism for cost containment reserve 
allowances; 
Sec. 24.  38 MRSA §580-B, sub-§4, ¶F, as enacted by PL 2007, c. 317, §17, is 
amended to read: 
F.  Provisions to manage the carbon dioxide allowance auction developed in 
coordination with other states and jurisdictions in the regional greenhouse gas 
initiative and in a manner that is consistent with provisions adopted by those states 
and jurisdictions and, including but not limited to provisions that, to the extent 
feasible, that: 
(1)  Ensure close monitoring of allowance transactions in a manner that guards 
against collusion and market manipulation; 
(2)  Ensure ongoing authentic price discovery and minimize price volatility; 
(3)  Facilitate open participation for bidding to all individuals or entities that meet 
the financial requirements jointly adopted by the participating states; 
(4)  Minimize administration and transaction costs and provide for an open and 
transparent user-friendly system; 
(5)  Provide that ongoing monitoring of market activity is undertaken by entities 
that have complete financial independence from any market participant; 
(6)  For purposes of civil and criminal enforcement authority under section 349, 
establish a contract term at the time an allowance is purchased at the regional 
auction for violations of market rules jointly adopted by the participating states 
and jurisdictions or through another method of ensuring state jurisdiction; and 
(7)  Guarantee that the Attorney General, the Public Utilities Commission and the 
commissioner have access to all auction information and information concerning 
allowance trading activity, including reports provided to the regional organization 
by a market monitor. 
Sec. 25.  38 MRSA §580-B, sub-§10-A is enacted to read: 
10-A.  Administration.  The costs of the department's oversight and administration 
of, and participation in, the regional organization must be provided from the Efficiency 
Maine Trust's administrative budget pursuant to Title 35-A, section 10109, subsection 4, 
paragraph F-1. 
Sec. 26.  Report.  By December 31, 2014 the Commissioner of Environmental 
Protection, in consultation with the director of the Governor's Energy Office, shall submit 
to the joint standing committee of the Legislature having jurisdiction over energy, utilities 
and technology matters and the joint standing committee of the Legislature having 
jurisdiction over environment and natural resources matters a report on the effectiveness 
of the Maine Revised Statutes, Title 38, section 580-B and including recommendations 
for improvements. 
Sec. 27.  Effective date.  This Act takes effect December 31, 2013. 
SUMMARY 
This bill amends the Efficiency Maine Trust laws by including energy cost reduction 
as a central mission of the trust.  Specifically, it allows all energy sources to be eligible 
for funding to lower the cost of energy for Maine residents.  In addition, the bill reduces 
electricity rates for industrial consumers by redirecting cap-and-trade auction revenue to 
reduce electricity rates.  The bill provides additional flexibility for funding through an 
assessment that addresses all energy challenges in the State.  Finally, the bill amends the 
regional greenhouse gas initiative laws and makes modifications to the structure of the 
Efficiency Maine Trust Board.