An Act To Clarify Certain Standards for the Efficiency Maine Trust's Triennial Plan
Maine Legislature, Session 129, LD 1757
Committee: Energy, Utilities and Technology
Sponsors: COOPER, SANBORN, BERRY
Amends: 35-A MRSA §10104, 35-A MRSA §10110, 35-A MRSA §10111, 35-A MRSA §10120

Legislative Document
No. 1757
H.P. 1251
House of Representatives, May 21, 2019
An Act To Clarify Certain Standards for the Efficiency Maine 
Trust's Triennial Plan
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative COOPER of Yarmouth.
Cosponsored by Senator SANBORN, H. of Cumberland and
Representative: BERRY of Bowdoinham.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  35-A MRSA §10104, sub-§3, as amended by PL 2013, c. 369, Pt. A, §9, 
is further amended to read:
3.  Performance metrics.  The trust shall develop quantifiable measures of 
performance metrics 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 performance metrics may include, but are not limited to, reduced energy 
consumption, increased use of alternative energy resources, reduced heating costs, 
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. 2.  35-A MRSA §10104, sub-§4, as amended by PL 2013, c. 369, Pt. A, 
§§10 to 13, 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 metrics 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 resources 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 
specify the appropriate participation of the State in national and regional carbon markets.  
The plan must be consistent with take into consideration the comprehensive state energy 
plan pursuant to Title 2, section 9, subsection 3, paragraph C.  The plan must include, but 
is not limited to, efficiency and conservation program budget allocations, objectives, 
targets, performance metrics, program designs, program implementation strategies, 
timelines and other relevant information.
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.  The triennial plan must identify all the maximum achievable 
cost-effective energy efficiency savings, as defined by rule by the trust, and related 
programs that could be implemented pursuant to sections 10110 and 10111, the costs 
and benefits of such programs and the basis and support for such identified costs and 
benefits.  The trust shall conduct an evaluation of all the maximum cost-effective 
potential for electrical and natural gas energy efficiency savings in the State at least 
once every 5 3 years.
(1)  Transmission and distribution utilities and natural gas utilities shall furnish 
data to the trust that the trust requests under this subsection to develop and 
implement the triennial plan or conduct the evaluation of all cost-effective 
potential for electrical and natural gas energy efficiency savings 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.
(2)  The Maine State Housing Authority and the Department of Health and 
Human Services shall furnish to the trust data pertaining to the identity, location 
and contact information, but not including income or asset information, of 
households that qualify for low-income programs, as determined necessary by the 
trust to develop and implement the triennial plan and to evaluate program 
effectiveness.  Data received pursuant to this subparagraph is deemed to be 
received by the commission and is subject to a protective order issued by the 
commission pursuant to section 1311-A.
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, advances the state 
energy efficiency targets in paragraph F and, reflects the best practices of program 
administration under subsection 2 and is consistent with the provisions of this section.  
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 an adjudicatory proceeding and 
issue an order either approving the plan and issuing the appropriate orders to 
transmission and distribution utilities and gas utilities or rejecting the plan and stating 
the reasons for the rejection to review the triennial plan.  The commission shall 
review the triennial plan to determine whether it will capture the maximum 
achievable cost-effective energy efficiency savings.  In conducting the review, the 
commission shall defer to the trust's calculations of energy savings as long as the 
calculations were conducted consistent with rules of the trust and are supported by 
evidence in the record and the trust used a reasonable and transparent process to 
make the technical determinations necessary to make those calculations.  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 metrics under subsection 3.  If the commission approves the 
triennial plan, the commission shall issue the appropriate orders to transmission and 
distribution utilities and natural gas utilities for the procurement of energy efficiency 
resources identified within the plan pursuant to section 10110, subsection 4-A and 
section 10111, subsection 2.  If the commission rejects the triennial plan, the 
commission shall issue an order stating the reasons for the rejection.  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 all elements of the triennial plan it 
determines to be cost-effective, reliable and achievable and shall incorporate into gas 
utility and transmission and distribution rates sufficient revenue to provide for the 
procurement of energy efficiency resources identified within the plan pursuant to 
section 10110, subsection 4-A and section 10111, subsection 2.  The commission 
shall approve or reject the entire plan or elements of the plan within 120 days of its 
delivery to the commission.  The board, within 30 days of final commission approval 
of its the triennial plan, shall submit the triennial 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 triennial plan.  
After receipt of the triennial plan, the joint standing committee of the Legislature 
having jurisdiction over energy matters may submit legislation relating to the 
triennial 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 and to users of all fuel types. The plan must set forth the costs 
and benefits of energy efficiency programs that advance the following goals, and 
funding necessary to meet those goals:
(1)  Reducing energy costs, including residential heating costs;
(2)  Weatherizing substantially all homes whose owners or occupants are willing 
to participate in and share the costs of cost-effective home weatherization to a 
minimum standard of weatherization, as defined by the trust, by 2030;
(3)  Reducing peak-load demand for electricity through trust programs by 300 
megawatts by 2020;
(4)  By 2020, achieving electricity and natural gas program savings of at least 
20% and heating fuel savings of at least 20%, as defined in and determined 
pursuant to the measures of performance metrics approved by the commission 
under section 10120;
(5)  Creating stable private sector jobs providing alternative energy and energy 
efficiency products and services in the State by 2020; and
(6)  Reducing Contributing to the effort to reduce greenhouse gas emissions from 
the heating and cooling of buildings in the State by amounts consistent with the 
State's goals greenhouse gas emission levels 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.
Except when specifically provided in the individual goals under this paragraph, the 
trust may consider expected savings from market effects not attributable to the trust 
as well as efforts by other organizations, including but not limited to federally funded 
low-income weatherization programs.
After the triennial plan is approved, the trust or any party to the triennial plan may 
petition for, or the commission may initiate on its own, consideration of revising the 
calculations of avoided energy costs upon a showing that, subsequent to the 
publication of the avoided cost study relied upon, changes in price forecasts would 
result in more than a 25% change in the value of avoided cost affecting a significant 
portion of the program activity in the triennial plan.
As used in this paragraph, "heating fuel" means liquefied petroleum gas, kerosene or 
#2 heating oil, but does not include fuels when used for industrial or manufacturing 
processes.
Sec. 3.  35-A MRSA §10104, sub-§5, ¶D, as enacted by PL 2009, c. 372, Pt. B, 
§3, is amended to read:
D.  The performance of the trust and individual programs and program delivery 
agents or service providers in meeting the objectives, targets and measures of 
performance metrics approved by the commission and contained in the triennial plan.
Sec. 4.  35-A MRSA §10104, sub-§6, as enacted by PL 2009, c. 372, Pt. B, §3, is 
amended to read:
6.  Updated plans.  Within 30 90 days of completion of the annual report under 
subsection 5, the director shall submit to the board an annual update plan describing any 
significant changes to the triennial plan under subsection 4 related to program budget 
allocations, goals, targets, measures of performance metrics, program designs, 
implementation strategies, timelines and other relevant information for the year ahead for 
all funds administered and managed by the trust. The director or any contractor, grantee 
or agency delivering programs may not execute any significant changes until the changes 
are approved by the board and, in the case of significant changes to programs using funds 
generated by assessments under this chapter, until the changes are also approved by the 
commission using the same standard as for the triennial plan.
All annual update plans must be presented to the commission and the joint standing 
committee of the Legislature having jurisdiction over energy matters.
Sec. 5.  35-A MRSA §10110, sub-§4-A, as amended by PL 2015, c. 255, §1, is 
further amended to read:
4-A.  Procurement of cost-effective energy efficiency and conservation resources.  
The commission shall ensure that transmission and distribution utilities on behalf of their 
ratepayers procure all through the trust the maximum achievable cost-effective electric 
energy efficiency and conservation resources found by the commission to be cost-
effective, reliable and achievable pursuant to section 10104, subsection 4, except that the 
commission may not require the inclusion in rates under this subsection of a total amount 
that exceeds 4% of total retail electricity and transmission and distribution sales in the 
State as determined by the commission by rule.  The cost of procurement of cost-effective 
electric energy efficiency and conservation resources is a just and reasonable element of 
rates.  The commission may issue any appropriate orders to transmission and distribution 
utilities necessary to achieve the goals of this subsection.  When determining the amount 
of maximum achievable cost-effective electric energy efficiency resources to be procured 
under this subsection, the commission shall:
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;
B.  Ensure that Apply the discount rate adopted by the trust and ensure that the 
calculations of avoided energy costs and the budget identified by the trust in its 
triennial plan as needed to capture all cost-effective electric energy efficiency 
resources are reasonable, based on sound evidence and make use of best practices 
across the region; and are consistent with rules adopted by the trust and are supported 
by evidence in the record.  Avoided energy costs must include but are not limited to 
the following elements:
(1)  Retail value of electricity supply including a wholesale risk premium;
(2)  Statewide average value of avoided marginal transmission and distribution 
costs;
(3)  Statewide average for line losses; and
(4)  Demand reduction induced price effects.
The trust shall use, and the commission shall give deference to, values for each 
element of avoided energy cost from a regional avoided energy supply cost study as 
long as the analysis has been developed through a transparent process, with input 
from state agencies, public advocates, utilities or energy efficiency administrators 
from at least 3 other states in New England and the analysis has been published not 
more than 24 months prior to the trust's filing of the plan. When values specific to the 
State are not available in the regional study, the trust may use, and the commission 
shall give deference to, regional values provided in that regional study or values 
determined from other sources when supported by evidence in the record; and
C.  Maximize total electricity savings for all ratepayers.
The commission shall consider gross efficiency savings for the purpose of determining 
savings that are cost-effective, reliable and achievable and.  The commission shall 
consider both whether the trust is taking reasonable steps to achieve high net and gross 
efficiency savings for the purpose of determining the appropriateness of the amount 
identified by the trust in its triennial plan as needed to capture all cost-effective electric 
energy efficiency resources, including but not limited to the use of national standard 
practices as identified by the trust by rule.
Rules adopted under this subsection are routine technical rules under Title 5, chapter 375, 
subchapter 2-A.
Sec. 6.  35-A MRSA §10111, sub-§1, as enacted by PL 2009, c. 372, Pt. B, §3, is 
amended to read:
1.  Program established.  In accordance with the goals and objectives of the triennial 
plan, the trust shall establish a cost-effective conservation program to promote the 
efficient use of natural gas.  Each gas utility in the State that serves at least 5,000 
residential customers shall contribute data and other relevant information to assist in the 
development of the program. In determining whether the program is cost-effective, the 
trust may consider whether it promotes sustainable economic development or reduces 
greenhouse gas emissions to the extent the trust can quantify or otherwise reasonably 
identify such effects.  The trust shall seek to encourage efficiency in natural gas use, 
provide incentives for the development of new, energy-efficient business activity cost-
effective energy efficiency measures in the State and take into account the cost and 
benefits of energy efficiency and conservation to existing business activity in the State.
A.  The trust shall consider, without limitation, a natural gas conservation program 
that:
(1)  Increases consumer awareness of cost-effective options for conserving 
energy;
(2)  Creates more favorable market conditions for the increased use of efficient 
products and services; and
(3)  Promotes sustainable economic development and reduces environmental 
damage.
B.  The trust shall apportion available funds such that:
(1)  A reasonable percentage of the available funds is directed to programs for 
low-income residential consumers, as defined by the trust. The trust shall 
establish the percentage based on an assessment of the opportunity for cost-
effective conservation measures for such consumers, including an assessment of 
the number of low-income residential consumers that may be eligible for such 
programs;
(2)  A reasonable percentage of the available funds is directed to programs for 
small business consumers, as defined by the trust. The trust shall establish the 
percentage based on an assessment of the opportunity for cost-effective 
conservation measures for such consumers. In defining "small business" for the 
purposes of this subparagraph, the trust shall consider definitions of that term 
used for other programs in this State that assist small businesses; and
(3)  To the greatest extent practicable, the remaining available funds are 
apportioned in a manner that allows all other consumers to have a reasonable 
opportunity to participate in one or more conservation programs.
Sec. 7.  35-A MRSA §10111, sub-§2, as amended by PL 2017, c. 358, §1, is 
further amended to read:
2.  Procurement 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, in accordance with the triennial plan, an amount necessary to capture all 
cost-effective energy efficiency that is achievable and reliable for those consumers who 
are eligible to receive funds from the natural gas conservation fund ensure that gas 
utilities on behalf of their ratepayers procure through the trust the maximum achievable 
cost-effective natural gas energy efficiency resources.  To the extent that such an analysis 
is available, the commission shall ensure that calculations of avoided energy costs used to 
determine the maximum achievable cost-effective energy efficiency resources use the 
result of a regional analysis as long as the analysis was conducted consistent with rules of 
the commission, was developed through a reasonable and transparent process with input 
from each energy efficiency program administrator or state and is supported by evidence 
in the record.  The commission may issue any appropriate order to the gas utilities 
necessary to achieve the goals of this subsection, including the collection of funds for the 
procurement of cost-effective energy efficiency resources.  The commission shall direct a 
gas utility that collects any portion of the assessment funds under this subsection from a 
customer that is a large-volume manufacturer and large-volume agricultural business to 
collect the assessment funds only on the first 1,000,000 centum cubic feet of natural gas 
used by that manufacturer or agricultural business in each year.  The limitation on the 
collection of the assessment funds from large-volume manufacturers and large-volume 
agricultural businesses may not affect the trust's determination of the amount necessary to 
capture all cost-effective energy efficiency that is achievable and reliable.  The limitation 
does not limit prohibit the eligibility of a large-volume manufacturer or large-volume 
agricultural business to participate in a natural gas conservation program.  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.
When determining the maximum achievable cost-effective natural gas energy efficiency 
resources, the commission shall ensure that a discount rate and calculations of avoided 
energy costs are consistent with rules adopted by the trust and are supported by evidence 
in the record.  Avoided energy costs must include but are not limited to the retail value of 
natural gas supply including a wholesale risk premium and demand reduction induced 
price effects.  The trust shall use, and the commission shall give deference to, values for 
each element of avoided energy cost from a regional avoided energy supply cost study as 
long as the analysis has been developed through a transparent process, with input from 
state agencies, public advocates, utilities or energy efficiency administrators from at least 
other states in New England and the analysis has been published not more than 24 
months prior to the trust's filing of the triennial plan.  When values specific to the State 
are not available in the regional study, the trust may use, and the commission shall give 
deference to, regional values provided in that regional study or values determined from 
other sources when supported by evidence in the record.  After the triennial plan is 
approved, the trust or any party to the triennial plan may petition for, or the commission 
may initiate on its own, consideration of revising the calculations of avoided energy costs 
upon a showing that, subsequent to the publication of the avoided cost study relied upon, 
changes in price forecasts would result in more than a 25% change in the value of 
avoided cost affecting a significant portion of the program activity in the triennial plan.
The assessments charged to funds collected from 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 ensure that the value of those funds is 
returned to consumers.
For purposes of this subsection, "large-volume manufacturer" means a customer that is a 
gas utility ratepayer engaged in manufacturing in the State and purchases at least 
1,000,000 centum cubic feet of natural gas per year.  For purposes of this subsection, 
"large-volume agricultural business" means a customer that is a gas utility ratepayer that 
purchases at least 1,000,000 centum cubic feet of natural gas per year and is engaged in 
the commercial growing or harvesting of plants or commercial aquaculture, as defined in 
Title 12, section 6001, subsection 1, in the State.
Rules adopted by the commission under this subsection are routine technical rules as 
defined in Title 5, chapter 375, subchapter 2-A.
Sec. 8.  35-A MRSA §10120, sub-§1, as enacted by PL 2009, c. 372, Pt. B, §3, is 
amended to read:
1.  Performance metrics.  The trust shall incorporate measures of performance 
metrics in the triennial plan.  The measures of performance metrics must define the 
electricity, natural gas and heating fuel savings targets established in section 10104, 
subsection 4, paragraph F and specify the measures metrics for assessing progress in 
meeting the targets. The commission shall ratify measures of performance metrics 
incorporated in the triennial plan if it finds that these measures metrics 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 metrics in the triennial plan at any time by 
mutual agreement.
Sec. 9.  35-A MRSA §10120, sub-§4 is enacted to read:
4.  Regional analysis of avoided costs.  The commission shall participate in any 
New England-wide process to establish a common analysis for determining the avoided 
costs of energy efficiency resources.  The commission shall, at a minimum, provide input 
on the scope of work for any analysis, provide information specific to the State that may 
be useful for the analysis and review and provide feedback on drafts or other regional 
work products.  The trust shall pay that portion attributable to the State of the cost of 
developing an avoided cost analysis.  This subsection does not limit the ability of the trust 
to participate in the development of a regional avoided cost analysis.
SUMMARY
This bill amends the Efficiency Maine Trust Act to:
1.  Make changes to the Efficiency Maine Trust's triennial plan, including requiring 
the Maine State Housing Authority and the Department of Health and Human Services to 
provide data to the Efficiency Maine Trust regarding households that qualify for low-
income programs to assist the trust with developing and implementing the triennial plan.  
Data received by the trust is subject to a protective order to preserve confidentiality;
2.  Clarify the process for the adjudicatory proceeding for the approval or rejection of 
the triennial plan by the Public Utilities Commission;
3.  Extend from 30 days to 90 days the amount of time the Director of the Efficiency 
Maine Trust has to provide the Efficiency Maine Trust Board with an annual update plan 
describing significant changes to the triennial plan;
4.  Establish standards of review to be used by the commission when reviewing the 
triennial plan;
5.  Remove the requirement that the trust preserve the opportunity for carbon 
emission reductions to be monetized and sold into a voluntary carbon market; and
6.  Require the commission to participate in a New England-wide process to establish 
a common analysis for determining the avoided costs of energy efficiency resources.