An Act To Transform Maine's Heat Pump Market To Advance Economic Security and Climate Objectives
Maine Legislature, Session 129, LD 1766
Committee: Energy, Utilities and Technology
Sponsors: LAWRENCE, GIDEON, JACKSON, POULIOT, CAMPBELL, HICKMAN, HUBBELL, PLUECKER
Amends: 10 MRSA §1415-G, 35-A MRSA §10103, 35-A MRSA §10104, 35-A MRSA §10110, 35-A MRSA §10119

Legislative Document
No. 1766
S.P. 597
In Senate, May 21, 2019
An Act To Transform Maine's Heat Pump Market To Advance 
Economic Security and Climate Objectives
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator LAWRENCE of York.  (GOVERNOR'S BILL)
Cosponsored by Speaker GIDEON of Freeport and
Senators: President JACKSON of Aroostook, POULIOT of Kennebec, Representatives: 
CAMPBELL of Orrington, HICKMAN of Winthrop, HUBBELL of Bar Harbor, PLUECKER 
of Warren.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  10 MRSA §1415-G, sub-§1, as amended by PL 2011, c. 300, §2, is 
further amended to read:
1.  Residential construction, remodeling and renovation.  Except as provided in 
this section, during the construction, remodeling or renovation of a multifamily 
residential structure, a person may not install electric resistance space heating equipment 
as the primary heating system if that construction, remodeling or renovation is funded in 
whole or in part by public funds, guarantees or bond proceeds and the structure's 
calculated heating load exceeds 1.3 watts per square foot per year as determined by the 
commission by rule.  For purposes of this section, "multifamily residential structure" 
means a residential structure with more than one dwelling unit and "electric resistance 
space heating equipment" does not include electric thermal storage space heating 
equipment, a high-performance air source heat pump meeting the performance standards 
of the Efficiency Maine Trust or a geothermal heat pump.
Sec. 2.  35-A MRSA §10103, sub-§4, as amended by PL 2013, c. 369, Pt. A, §5, 
is further amended to read:
4.  Program funding.  The board may apply for and receive grants from municipal, 
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 those 
projects funded by those funds, except that, from fiscal year 2019-20 to fiscal year 2024-
25, such payments must be used to promote high-performance air source heat pump 
technology and deposited in the Heating Fuels Efficiency and Weatherization Fund 
established in section 10119.  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. 3.  35-A MRSA §10104, sub-§8, as enacted by PL 2009, c. 372, Pt. B, §3, is 
amended to read:
8.  Approval of Maine State Housing Authority plans.  After July 1, 2010, the 
Maine State Housing Authority, prior to applying for federal funds on behalf of the State 
pursuant to Title 30-A, section 4741, subsection 15 for weatherization, energy 
conservation and fuel assistance pursuant to the Weatherization Assistance for Low-
income Persons Program administered through the United States Department of Energy 
and the Low-income Home Energy Assistance Program administered through the United 
States Department of Health and Human Services, shall submit to the board for its review 
and input the authority's implementation plans for the use of such funds.  The plans must 
describe the amount of budget available to support the heat pump goal established in 
section 10119, subsection 2, paragraph A, subparagraph (2), the plans' strategy for 
promoting that goal and an estimate of the number of units that will be installed. The 
plans must provide for coordination by the Maine State Housing Authority in its use of 
such funds with the programs administered by the trust under this chapter.  The Maine 
State Housing Authority shall include consider in its plans any recommendations of the 
board to the extent the recommendations are consistent with the applicable federal 
guidelines governing the use of the funds.
Sec. 4.  35-A MRSA §10110, sub-§1, ¶C, as enacted by PL 2009, c. 372, Pt. B, 
§3, is amended to read:
C.  "Conservation programs" means programs developed by the trust pursuant to this 
section designed to reduce inefficient increase the efficiency of electricity use.
Sec. 5.  35-A MRSA §10110, sub-§4-A, ¶A, as enacted by PL 2013, c. 369, Pt. 
A, §20 and affected by §30, is amended to read:
A.  Consider electric energy efficiency resources that are reasonably foreseeable to be 
acquired by the trust using all other sources of revenue, including, but not limited to, 
the Regional Greenhouse Gas Initiative Trust Fund under section 10109, federal or 
state grants or settlement funds designated by the board for programs implemented 
under this section, except that forward capacity market payments deposited in the 
Heating Fuels Efficiency and Weatherization Fund established in section 10119 may 
not be considered;
Sec. 6.  35-A MRSA §10119, as amended by PL 2009, c. 652, Pt. A, §49, is 
further amended to read:
§10119.  Heating Fuels Efficiency and Weatherization Fund
1.  Fund established; use of money. The Heating Fuels Efficiency and 
Weatherization Fund, referred to in this section as "the fund," is established.  The fund is 
a nonlapsing fund and is administered by the trust in accordance with this section.  Any 
interest earned on funds in the fund must be credited to the fund, and funds not spent in 
any fiscal year remain in the fund to be used in accordance with this section.  The trust 
may receive and deposit in the fund funds from the following sources:
A.  Any funds collected from an assessment on heating fuels;
B.  Federal funds and awards that may be used for the purposes of this section;
C.  The proceeds of any bonds issued for the purposes of this section;
D.  Principal and interest received from the repayment of loans made from the fund;
E.  Any interest earned on investment of fund balances; and
F.  Any other funds from public or private sources received in support of the purposes 
for which the fund is established.; and
G.  Payments from the forward capacity market or other payments by the regional 
transmission organization.
The trust may annually deposit funds received pursuant to this section into the 
administration fund, to a maximum in any fiscal year of 10% of the revenues received 
under this section.
2.  Program.  All funds deposited in the fund must be administered by the trust in 
accordance with the following.
A.  All funds deposited in the fund must be administered by the trust to reduce 
heating fuel consumption consistent with the purpose and targets of the trust and the 
triennial plan to achieve the following goal goals:
(1) By 2030, to provide cost-effective energy efficiency and weatherization 
measures to substantially all homes and businesses whose owners wish to 
participate in programs established by the trust under this section.; and
(2)  From fiscal year 2019-20 to fiscal year 2024-25, to install 100,000 new high-
performance air source heat pumps in the State to provide heating in residential 
and nonresidential spaces. "High-performance air source heat pump" means an 
air source heat pump that satisfies minimum heating performance standards as 
determined by the trust.
B.  Funds from the fund may be used only for programs that provide cost-effective 
energy efficiency and heating or weatherization measures for the benefit of heating 
fuel customers or to efficiency service providers serving those customers and in 
accordance with the following this paragraph.
(1) Program categories must may include low-income, single-family and 2-family 
residential units, multifamily residential units, small business, commercial and 
institutional and such other categories as the trust determines appropriate;.
(2) Within program categories, the trust may differentiate between programs for 
new construction and existing buildings; and.
(3) Cost-effective energy efficiency measures must include measures that 
improve the energy efficiency of energy-using systems, such as heating and 
cooling systems, through system upgrades or conversions, including conversions 
to energy-efficient systems that rely on renewable energy sources or systems that 
rely on effective energy efficiency technologies.
(4)  Eligible program measures may include, but are not limited to, training or 
certification of energy auditors, insulation installers, mechanical heating system 
installers and maintenance technicians and building energy inspectors.
C.  Program designs approved by the trust must may contain:
(1) Incentives to consumers to purchase and install cost-effective efficiency and 
weatherization products and services identified by a certified energy auditor, 
except in the case of programs to deliver education, training or certifications;
(2) A schedule of customer copayments and loan Loan options for prescribed 
products and services. Programs, including specially designed loans for low-
income and moderate-income consumers may provide exemptions from the 
copayment and schedule for the purchase and installation of a high-performance 
air source heat pump;
(3) A plan for integrating delivery of heating fuel efficiency and weatherization 
measures with electric efficiency measures; and
(4) A system for the equitable allocation of costs among the contributing funds or 
subaccounts administered by the trust when more than one efficiency opportunity 
is identified, except that for purposes of advancing the goal of paragraph A, 
subparagraph (2), payments from the forward capacity market deposited in the 
fund must be used to supplement, and not supplant, heat pump incentive amounts 
approved through the triennial plan for electric efficiency and conservation 
programs.
D.  Other eligible program measures may include, but are not limited to, training or 
certification of energy auditors, insulation installers, mechanical heating system 
installers and maintenance technicians and building energy inspectors.
3.  Rulemaking.  The board may adopt rules to implement this section.  Rules 
adopted pursuant to this subsection are routine technical rules as defined in Title 5, 
chapter 375, subchapter 2-A.
4.  Effective date.  This section takes effect July 1, 2010.
SUMMARY
This bill establishes a goal to install 100,000 new high-performance air source heat 
pumps in the State to provide heating in residential and nonresidential spaces.  It defines 
"high-performance air source heat pump" as an air source heat pump that satisfies 
minimum heating performance standards as determined by the Efficiency Maine Trust.
The bill directs forward capacity market payments received by the Efficiency Maine 
Trust to the Heating Fuels Efficiency and Weatherization Fund to promote high-
performance air source heat pumps.  It directs the Maine State Housing Authority to share 
information with the Efficiency Maine Trust Board about the extent to which federally 
funded weatherization programming is available to meet the heat pump goal.  It clarifies 
that in the construction, remodeling or renovation of a multifamily residential structure 
funded in whole or in part by public funds, guarantees or bond proceeds, high-
performance air source heat pumps may be used as the primary heating system without 
requiring a waiver from the Public Utilities Commission.