An Act Relating to Net Energy Billing and Distributed Solar and Energy Storage Systems
Maine Legislature, Session 131, LD 1986
Committee: Energy, Utilities and Technology
Sponsors: LAWRENCE, ZEIGLER
Amends: 2 MRSA §9, 35-A MRSA §3209-A, 35-A MRSA §3209-C

Legislative Document
No. 1986
S.P. 815
In Senate, May 22, 2023
An Act Relating to Net Energy Billing and Distributed Solar and 
Energy Storage Systems
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.
Cosponsored by Representative ZEIGLER of Montville.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  2 MRSA §9, sub-§6-A is enacted to read:
6-A.  Distributed Solar and Energy Storage Program.  The Distributed Solar and 
Energy Storage Program, referred to in this subsection as "the program," is established to 
provide funding to foster the continued growth of cost-effective distributed solar facilities 
and energy storage systems in this State.  The office, as funding allows, shall develop the 
program no later than July 1, 2024.
A. As used in this subsection, the following terms have the following meanings.
(1) "Distributed solar facility" means a solar generating facility:
(a) Interconnected to a transmission and distribution utility as defined in Title 
35-A, section 102, subsection 20-B; and
(b) That is colocated with an energy storage system.
(2) "Energy storage system" has the same meaning as in Title 35-A, section 3481, 
subsection 6.
B. The program must be designed to obtain and provide available federal funds to 
support cost-effective distributed solar facilities and energy storage systems.  The 
program must be consistent with the recommendations contained in the Final Report 
of the Distributed Generation Stakeholder Group dated January 6, 2023 and submitted 
by the office to the Joint Standing Committee on Energy, Utilities and Technology 
pursuant to Public Law 2021, chapter 390, section 4.  The office shall consult with the 
Public Utilities Commission in developing and administering the program.
C. In order to support the office in administering the program, the office may receive 
funds from the Public Utilities Commission. 
D. The office shall apply for available federal funds to fund the program, including, 
but not limited to, funds from the United States Environmental Protection Agency's 
Greenhouse Gas Reduction Fund.  Nothing in this paragraph limits other uses of federal 
funds received by the office consistent with applicable federal requirements.
Sec. 2.  35-A MRSA §3209-A, sub-§1, ¶B, as enacted by PL 2019, c. 478, Pt. A, 
§3, is amended to read:
B.  "Distributed generation resource" means an electric generating facility that uses a 
renewable fuel or technology under section 3210, subsection 2, paragraph B‑3 and is 
located in the service territory of a transmission and distribution utility in the State.  
"Distributed generation resource" does not include an electric generating facility with 
a nameplate capacity greater than 660 kilowatts that was placed in service prior to 
November 25, 2019.
Sec. 3.  35-A MRSA §3209-C is enacted to read:
§3209-C.  Net energy billing cost recovery
The commission shall ensure that net energy billing benefits and net energy billing 
costs are allocated in accordance with this section.
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings.
A. "Net energy billing" means net energy billing arrangements under section 3209-A 
or 3209-B. 
B. "Net energy billing benefits" means all benefits determined by the commission to 
be reasonably attributable to net energy billing, including but not limited to:
(1) Avoided energy and capacity costs.  In determining avoided energy and 
capacity costs, the commission shall use reasonable estimates of energy and 
capacity market prices and account for transmission and distribution line losses.  
The commission may determine different avoided costs for different time periods, 
including but not limited to peak and off-peak periods and summer and winter 
periods;
(2) Avoided transmission and distribution costs.  In determining avoided 
transmission and distribution costs, the commission shall use estimates of the 
marginal transmission and distribution costs and may determine different avoided 
costs for different time periods;
(3) Avoided fossil fuel costs.  The commission shall determine avoided fossil fuel 
costs based on estimated reductions in oil, gas or other fossil fuel use and estimated 
market prices for these fuels;
(4) Avoided transmission and distribution line losses;
(5) Demand reduction induced price effects; and
(6) Transmission and distribution plant extensions or upgrades funded by net 
energy billing customers.
C. "Net energy billing costs" means all legitimate and verifiable costs incurred by a 
transmission and distribution utility directly attributable to net energy billing.  "Net 
energy billing costs" does not include any costs incurred by a project sponsor, as 
defined in section 3209-A, subsection 1, paragraph D, a net energy billing customer or 
any other entity, as determined by the commission by rule.
2. Determination of costs and benefits. The commission shall annually determine the 
net energy billing costs and net energy billing benefits for the previous year. 
A.  When determining the avoided energy and capacity costs under subsection 1, 
paragraph B, subparagraph (1), the commission shall use any available regional 
avoided energy supply cost study that the commission finds has been developed 
through a transparent process, with input from state agencies, public advocates and 
utilities or energy efficiency administrators from at least 3 other states in New England.  
When relevant information specific to the State is not provided in the regional study, 
the commission may use the regional information in the regional study or information 
from other sources supported by evidence in the commission's record.
B. To the extent possible, the commission shall ensure net energy billing benefits 
accrue to ratepayers.
C. The commission shall allocate to each investor-owned transmission and distribution 
utility its pro rata share of net energy billing costs and net energy billing benefits.  The 
allocation must be based on each utility's total retail kilowatt-hour energy sales to 
ratepayers that pay net energy billing costs and receive net energy billing benefits. The 
commission may determine the means to be used for the allocation required under this 
subsection, which may include the direct transfer of funds between transmission and 
distribution utilities.
3. Reporting of costs and benefits. The commission shall submit a report by March 
31st each year to the joint standing committee of the Legislature having jurisdiction over 
utilities matters regarding net energy billing costs and net energy billing benefits, including 
costs authorized to be collected by transmission and distribution utilities in rates.
4. Rules.  The commission shall adopt rules necessary to implement this section. Rules 
adopted by the commission under this subsection are routine technical rules as defined in 
Title 5, chapter 375, subchapter 2-A.
SUMMARY
This bill:
1.  Establishes a mechanism for allocating net energy billing benefits and net energy 
billing costs;
2.  Excludes from use in net energy billing programs any electric generating facility 
with a nameplate capacity greater than 660 kilowatts that was placed in service prior to 
November 25, 2019; and
3.  Establishes the Distributed Solar and Energy Storage Program to provide funding 
to foster the continued growth of cost-effective distributed solar facilities and energy 
storage systems in this State.