An Act To Reduce Electric Rates for Maine Businesses
Maine Legislature, Session 127, LD 1398
Committee Amendment CA_B_S423 (Senate)
Amends: 35-A MRSA §10109

COMMITTEE AMENDMENT "\>" to S.P. 519, L.D. 1398, Bill, "An Act To 
Reduce Electric Rates for Maine Businesses" 
Amend the bill by striking out everything after the title and before the summary and 
inserting the following: 
'Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 35-A MRSA §10109, sub-§3-A is enacted to read: 
3-A. Payments. The trust shall transfer to the commission $2,000,000 per year 
during fiscal years 2016-17, 2017-18 and 2018-19 to be used by the commission for 
disbursements to affected customers. 
Affected customers who use the disbursement 
toward an efficiency measure approved by the trust in the fiscal year in which it is 
received must receive $1 of assistance from the trust for every $3 that is applied by the 
affected customer toward the cost of the approved efficiency measure as long as the total 
of assistance from the trust and the disbursement allocated by the commission under this 
subsection for that customer for that fiscal year does not exceed 65% of the total measure 
cost. 
For the purposes of this subsection, "affected customer" means a customer who is not 
primarily in the business of selling electricity, is receiving service at a transmission or 
subtransmission voltage level as defined in section 10110, subsection 6 within the 
electrical utility transmission system administered by an independent system operator of 
the New England bulk power system or a successor organization and is an energy-
intensive manufacturer, as defined in reports prepared by the U.S. Energy Information 
Administration. The commission may also determine that a manufacturer not defined as 
an energy-intensive manufacturer in reports prepared by the U.S. Energy Information 
Administration is an affected customer if that manufacturer meets the other requirements 
of the definition under this subsection. 
A. No later than November 1st of each applicable fiscal year, the commission shall 
direct funds totaling $2,000,000 per year during fiscal years 2016-17, 2017-18 and 
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COMMITTEE AMENDMENT" i5" to S.P. 519, L.D. 1398 
2018-19 to be disbursed for the benefit of affected customers in proportion to their 
retail purchase of electricity as measured in kilowatt-hours for the prior calendar year. 
B. During fiscal years 2016-17, 2017-18 and 2018-19, an affected customer who 
receives a disbursement under this subsection is not eligible to receive financial or 
other assistance from the trust fund established in this section except as allowed 
under this subsection. 
This ineligibility does not apply to any trust program 
opportunity notices issued before July 1, 2016. 
C. 
The commission shall include in its annual report pursuant to section 120, 
subsection 7 to the joint standing committee of the Legislature having jurisdiction 
over public utilities matters a description of the commission's activities in canying 
out the requirements of this subsection, a list of affected customers receiving 
disbursements, a list of those who elected to use the disbursements toward efficiency 
measures and the results of the activities under this subsection. 
Sec. 2. 35-A MRSA §10109, sub-§4, as amended by PL 2013, c. 369, Pt. A, 
§§ 14 to 17, is further amended to read: 
4. Expenditures; projects. +he Except for transfers required under subsection 3-A 
and other costs authorized in accordance with this chapter, funds in the trust fund must be 
expended in accordance with this subsection. 
A. 
Dtwiag fiseal years 2013 14, 2014 15 ane 2015 Hi, aet less thaa 50% ef the 
tFHst The trust shall allocate 50% of the funds for residential programs and 50% for 
commercial and industrial programs. Trust funds reeeivee et1riag these years must be 
allocated for measures, investments, loans, technical assistance and arrangements that 
reduce electricity consumption, increase energy efficiency or reduce greenhouse gas 
emissions and lower energy costs at commercial or industrial facilities, and 35% ef 
the RlBSS reeeii.•ee 0)' the trust RlBS SHfiBg these years fftliSt ee liSee for investment in 
measures that lower residential heating energy demand and reduce greenhouse gas 
emissions. The measures that lower residential heating demand must be fuel-neutral 
and may include, but are not limited to, energy efficiency improvements to residential 
buildings and upgrades to efficient heating systems that will reduce residential energy 
costs and greenhouse gas emissions, as determined by the board. The trust shall 
transfer te the eemmissiea 15 % ef ftmes reeeivee ey the trast fu.Be euriag fiseal years 
2013 14, 2014 15 ane 2015 le, whieh the eemmissiea shall airest transmissiea ane 
eistrilmtiea titilities te eise1:1rse te ratepa-yers ia a manner that pre·,iees ma1dHR:lm 
eeaefit te the Ma-iae eeeamny ensure that measures to reduce the cost of residential 
heating are available for low-income households as defined by the trust. 
When 
promoting electricity cost and consumption reduction, the trust may consider 
measures at commercial and industrial facilities that also lower peak capacity 
demand. Subject to the apportionment 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 and heating energy costs by fossil 
fuel combustion in the State at the lowest cost in funds from the trust fund per 
unit of emissions; or 
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COMMITfEE AMENDMENT "l> "to S.P. 519, L.D. 1398 
(2) Reliably reduee the eoflSUffifltiofl of eleetrieity increase the efficiency with 
which energy in the State is consumed at the lowest cost in funds from the trust 
fund per kilov,ratt hour unit of energy 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. 
Community-based renewable energy projects, as defined in section 3602, 
subsection 1, may apply for funding from the trust to the extent they are eligible 
under paragraph A. 
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. 
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. 
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COMMITTEE AMENDMENT" 1:>" to S.P. 519, L.D. 1398 
J. 
Trust fund receipts must, upon request by the Department of Environmental 
Protection, 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, subparagraph (1). 
Sec. 3. Initial disbursement proceeding. The Public Utilities Commission 
shall conduct an expedited proceeding to determine the initial allocation of disbursements 
to each affected customer, as defined in the Maine Revised Statutes, Title 35-A, section 
10109, subsection 3-A, allowed under that subsection. The commission must direct the 
initial distribution of funds to the benefit of such customers no later than November 1, 
2016.' 
SUMMARY 
This amendment is the minority report and it strikes and replaces the bill. This 
amendment provides that $2,000,000 of the Regional Greenhouse Gas Initiative Trust 
Fund revenue is to be returned to certain affected customers in the form of an annual 
disbursement during fiscal years 2016-17, 2017-18 and 2018-19. 
The amendment 
requires that the Public Utilities Commission determine the allocation of disbursements 
based on an affected customer's proportion of the customer's retail purchase of electricity 
as measured in kilowatt-hours for the prior calendar year. This amendment defines 
"affected customer.'' Affected customers that elect to use the disbursement toward an 
efficiency measure approved by the Efficiency Maine Trust would receive $1 of 
assistance from the trust for every $3 that is applied toward the measure by the affected 
customer as long as the total of assistance from the trust and the disbursement allocated 
by the commission does not exceed 65% of the total cost of the measure. 
This 
amendment also specifies that, other than the $1 for every $3 invested assistance, during 
the fiscal years in which the disbursements are allotted an affected customer is not 
eligible to receive financial or other assistance from the trust fund, except in relation to 
program opportunities noticed prior to July I, 2016. This amendment requires that the 
commission include in the commission's annual report a description of its activities in 
relation to the disbursement process, a list of affected customers receiving disbursements 
and those affected customers who elect to use the disbursement toward efficiency 
measures and the results of the program. 
This amendment requires that any revenue remaining after providing disbursements 
and accounting for other costs authorized be allocated in a proportional share to 
residential programs and commercial and industrial programs. This amendment adds that 
the remaining money be allocated to measures that also increase energy efficiency and 
that measures to reduce the cost of residential heating are available to low-income 
households. It also allows the trust to consider measures at commercial and industrial 
facilities that lower peak capacity demand when promoting electricity savings. 
J,i'I~CALNOTE REQtJIIID 
(See ... 
....., 
COMMITTEE AMENDMENT 
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Transfers 
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Revised: 03/22/16 feac::.. 
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LD1398 
LR 1934(03) 
An Act To Reduce Electric Rates for Maine Businesses 
Fiscal Note for Bill as Amended by Committee Amendment ''B' '5- ~12.. ~ 
Committee: Energy, Utilities and Technology 
l· 
J) 
Fiscal Note Required: Yes 
Fiscal Note 
Transfer from Efficiency Maine Trust 
FY 2015-16 
FY 2016-17 
Projections 
FY 2017-18 
Projections 
FY 2018-19 
Other Special Revenue Funds 
$0 
$2,000,000 
$2,000,000 
$2,000,000 
Fiscal Detail and Notes 
The bill transfers $2,000,000 in each of fiscal years 2016-17, 2017-18 and 2018-19 from the Regional Greenhouse 
Gas Initiative Trust Fund (RGGI Fund) within Efficiency Maine Trust to the Public Utilities Commission (PUC) to be 
used for disbursements to certain customers. The RGGI Fund has sufficient resources to make these transfers. This 
bill also directs the RGGI Fund to expend 50% of its funds for residential programs and 50% for commercial and 
industrial programs. There is no estimate at this time on the amount of funds to be expended from the RGGI Fund. 
The bill also requires the PUC to conduct an expedited proceeding to determine the inital allocation of disbursements 
to certain customers. The PUC has sufficient budgeted resources to conduct a proceeding and make disbursements to 
customers. 
LR1934(03) - Fiscal Note - Page 1 of 1