An Act Regarding Customer Costs and the Environmental and Health Effects of Natural Gas
Maine Legislature, Session 131, LD 2077
Committee: Energy, Utilities and Technology
Sponsors: ZEIGLER, LAWRENCE
Amends: 35-A MRSA §301, 35-A MRSA §2104, 35-A MRSA §4706-C

Legislative Document
No. 2077
H.P. 1336
House of Representatives, December 22, 2023
An Act Regarding Customer Costs and the Environmental and 
Health Effects of Natural Gas
Submitted by the Office of the Public Advocate pursuant to Joint Rule 203.
Received by the Clerk of the House on December 20, 2023.  Referred to the Committee on 
Energy, Utilities and Technology pursuant to Joint Rule 308.2 and ordered printed pursuant to 
Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative ZEIGLER of Montville.
Cosponsored by Senator LAWRENCE of York.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  35-A MRSA §301, sub-§7 is enacted to read:
7.  Prohibition on cost recovery for new gas service mains and gas service lines.  
Beginning February 1, 2025, any charge for costs associated with new gas service mains 
and gas service lines for residential and commercial gas service is unreasonable for 
inclusion in rates and prohibited in accordance with subsection 3.  Those costs must be 
recovered in full from the customer requesting the service. For the purposes of this 
subsection, "gas service line" means a pipe that runs between a gas service main and a 
customer's meter and "gas service main" means a large pipeline in which gas is carried for 
distribution through gas service lines.
Sec. 2.  35-A MRSA §2104, as repealed and replaced by PL 2001, c. 124, §1, is 
amended to read:
§2104.  Commission approval for gas companies to furnish service; prohibition on 
expansion
1.  Approval of commission required; generally.  Except as provided in subsection 
2, a A gas utility may not furnish its service in or to any municipality within the State 
without the approval of the commission.
2.  Approval not required; no other utility serving.  Notwithstanding section 2102 
or 2105, a gas utility authorized to furnish service and serving customers within the State 
is not required to obtain the approval of the commission to serve in any municipality in 
which no other gas utility is furnishing similar service unless the commission, in an order 
issued pursuant to subsection 3, specifically provides otherwise.
3.  Limited grant of authority.  The commission, in an order granting authorization 
to a person to operate, manage or control a gas utility in any municipality in this State, may 
expressly limit the area in which the gas utility may provide service without further 
approval of the commission only if:
A.  The commission finds that the financial and technical capacity of the gas utility is 
limited in a manner that public convenience and necessity require such limited 
authorization; or
B.  The person seeking authorization requests that the authorization be limited to a 
particular area.
4.  Prohibition on expansion of service.  Beginning January 1, 2025, the commission 
may not approve any gas utility to furnish service or serve a customer in any municipality 
that is outside of the gas utility's service area on June 30, 2024.
Sec. 3.  35-A MRSA §4706-C, sub-§2, as enacted by PL 2017, c. 83, §1, is 
amended to read:
2.  Promotional allowance allowed prohibited.  Notwithstanding sections 302-A and 
Beginning January 1, 2025, a gas utility, without prior notice or approval from the 
commission, may not offer or provide a promotional allowance to customers or potential 
customers.
Sec. 4.  35-A MRSA §4706-C, sub-§3, as enacted by PL 2017, c. 83, §1, is 
repealed.
Sec. 5.  35-A MRSA §4706-C, sub-§4, as enacted by PL 2017, c. 83, §1, is 
repealed.
Sec. 6. Public Utilities Commission inquiry; district geothermal systems. 
The Public Utilities Commission shall conduct an inquiry focused on the regulatory 
treatment of geothermal heat districts and alternative thermal technologies. By November 
6, 2024, the commission shall submit a report on the results of the inquiry, including 
findings, recommendations and suggested legislation, to the joint standing committee of 
the Legislature having jurisdiction over energy, utilities and technology matters. The 
committee may report out a bill to the 132nd Legislature in 2025.
Sec. 7. Public Utilities Commission inquiry; costs associated with gas 
system expansion. The Public Utilities Commission shall conduct an inquiry focused on 
customer costs associated with gas system expansion and implications for gas use in the 
State. In conducting the inquiry, the commission shall:
1. Request for information. Issue a request for information to appropriate 
stakeholders and consider relevant information and documents submitted in response to the 
request for information;
2. Projected impacts. Consider the projected impacts on gas consumption in the State 
over the next 10, 20 and 30 years from factors related to climate change, including but not 
limited to the mandatory greenhouse gas emissions reduction levels in the Maine Revised 
Statutes, Title 38, section 576-A, and policies, including energy efficiency, beneficial 
electrification and weatherization policies. As part of its consideration under this 
subsection, the commission shall review:
A. How the State's gas utilities are considering and preparing for potential reductions 
in the number of gas utility customers and declines in overall usage attributable to 
factors related to climate change and how the gas utilities should be preparing;
B. The projected impacts of declining gas consumption levels on distribution service 
rates paid by gas utility customers, especially low-income customers and customers 
with high energy burdens; 
C. The projected impacts of increasing distribution service rates on gas utilities' 
customer base, especially low-income customers and customers with high energy 
burdens; and
D. The projected demographic composition of gas utilities' diminishing customer base 
over the next 10, 20 and 30 years;
3. Potential rate and regulatory reforms. Consider potential rate and regulatory 
reforms to protect gas utility customers from risk associated with continued gas system 
expansion, particularly stranded gas system investments, including but not limited to:
A. Changes to depreciation schedules to better reflect the projected useful life of gas 
investments; and
B. Criteria by which the commission ought to balance the risk of stranded asset costs 
for gas investments between gas utility shareholders and gas utility customers; and
4. Draft report. Publish a draft report related to the inquiry and accept and consider 
public comments.
By November 6, 2024, the commission shall submit a report to the joint standing 
committee of the Legislature having jurisdiction over energy, utilities and technology 
matters. The report must set forth the commission's findings with respect to the costs of gas 
system expansion and risks to gas utility customers and recommendations with respect to 
rate and regulatory reforms to protect gas utility customers from risks associated with 
continued gas system expansion. The committee may report out a bill based on this report 
to the 132nd Legislature in 2025.
Sec. 8. Report on indoor air quality and health impacts of fossil fuel 
combustion and leakage. The Department of Health and Human Services, Maine Center 
for Disease Control and Prevention, in collaboration with the Public Utilities Commission, 
the Efficiency Maine Trust, the Office of the Public Advocate and the Department of 
Environmental Protection, shall study:
1. Levels. The levels of indoor air pollution generated by indoor fossil fuel combustion 
and leakage from indoor fossil fuel appliances in the State;
2. Health effects. The health effects from indoor air pollution generated by indoor 
fossil fuel combustion and leakage from indoor fossil fuel appliances in the State;
3. Types of indoor air pollution. The types of indoor air pollution associated with 
indoor fossil fuel combustion and leakage from indoor fossil fuel appliances, including 
carbon monoxide, nitrogen oxides, particulate pollution, methane, benzene or other air 
pollutants that may be toxic;
4. Methane gas leakage. The total greenhouse gas emissions associated with methane 
gas leakage from indoor fossil fuel appliances in the State; and
5. Recommendations. Prior recommendations to reduce indoor air pollution, reduce 
negative health effects and reduce greenhouse gas emissions generated by indoor fossil fuel 
appliances.
For the purposes of this section, "indoor fossil fuel appliances" includes, but is not 
limited to, stoves, furnaces, boilers and hot water heaters fueled by natural gas, propane, 
heating oil or other fuels derived from petroleum.
By November 6, 2024, the Maine Center for Disease Control and Prevention shall 
submit a report to the joint standing committee of the Legislature having jurisdiction over 
energy, utilities and technology matters, the joint standing committee of the Legislature 
having jurisdiction over the environment and natural resources matters and the joint 
standing committee of the Legislature having jurisdiction over health and human services 
matters based on the study under this section. The committees may each report out a bill 
based on the report to the 132nd Legislature in 2025. 
SUMMARY
This bill provides that, beginning February 1, 2025, any charge for costs associated 
with new gas service mains and gas service lines for residential and commercial gas service 
is unreasonable for inclusion in rates and prohibited.  It provides that, beginning January 1, 
2025, the Public Utilities Commission may not approve a gas utility to furnish service or 
serve customers in a municipality that is outside of the utility's service area on June 30, 
2024.  Beginning January 1, 2025, it prohibits a gas utility from offering or providing a 
promotional allowance to customers or potential customers.
The bill requires the Public Utilities Commission to conduct inquiries related to district 
geothermal systems and costs associated with gas system expansion and to submit related 
reports to the joint standing committee of the Legislature having jurisdiction over energy, 
utilities and technology matters.  The bill also requires the Department of Health and 
Human Services, Maine Center for Disease Control and Prevention, in collaboration with 
other state entities, to submit a report on indoor air quality and health impacts of fossil fuel 
combustion and leakage to several joint standing committees of the Legislature.