An Act Relatmg to Net Energy Billmg and Distnbuted Solar and Energy Storage Systems
Maine Legislature, Session 131, LD 1986
Committee Amendment CA_A_S421 (Senate)
Amends: 2 MRSA §9, 35-A MRSA §3209-A, 35-A MRSA §3209-B, 35-A MRSA §3209-C, 35-A MRSA §3209-D, 35-A MRSA §3210-G

COMMITIEE AMENDMENT ,A "to S P 815, L D 1986, "An Act Relatmg to Net 
Energy Billmg and Distnbuted Solar and Energy Storage Systems" 
Amend the btll by stnkmg out everythmg after the enactmg clause and msertmg the 
followmg 
'Sec. 1. 2 MRSA §9, sub-§6-A is enacted to read 
6-A. DIStnbuted Solar and Energy Storage Program. The Distributed Solar and 
Energy Storage Program, referred to m this subsection as "the program," is established to 
provide fundmg to foster the continued growth of cost-effective distnbuted solar facilrttes 
and energy storage systems m this State The office, as fundmg allows, shall develop the 
program no later than July 1, 2024 
A As used m this subsectmn, the followmg terms have the followmg meanmgs 
(1) "Distributed solar fac1hty" means a solar generating facihty mterconnected to 
a transmission and distribution utihty as defined m Title 35-A, section 102, 
subsection 20-B 
(2) "Energy storage system" has the same meanmg as m Title 35-A, sectmn 3481, 
subsection 6 
B The program must be designed to obtam and provide available federal funds to 
support cost-effective distributed solar facihties and energy storage systems The office 
shall consult with the Pubhc Ut1htJ.es Comm.1ss1on m developmg and adm.1mstermg the 
program 
C In order to support the office's activities m admrmstenng the program, the office 
may request funds from the Pubhc Utihties Commiss10n for the office's admmistrative 
costs, which may mclude, but are not hmited to, costs associated with hrrmg 
consultants 
and office personnel 
and 
contractmg 
for 
techmcal analysis 
Notw1thstandmg Title 35-A, section 117, if the office requests fundmg m accordance 
with this paragraph, the comm1ss1on may provide fundmg, to the extent available, from 
the Public Utilities Commission Re1mbursement Fund under section 117 If the Pubhc 
COMMITTEE AMENDMENT 
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COMMI'ITEEAMENDMENT"~"to SP 815,LD 1986 
Utilities Commission Reunbursement Fund does not have sufficient fundmg, 
notwithstandmg Title 35-A, section 116, subsection 4, the commission may provide 
fundmg from the Public Utilities Commission Regulatory Fund m accordance with this 
paragraph 
D The office shall apply for available federal funds to fund the program, mcludmg, 
but not lunited to, funds from the Umted States Environmental Protection Agency's 
Greenhouse Gas Reduction Fund under 42 Umted States Code, Section 7434 Nothmg 
m tlns paragraph hmits other uses of federal funds received by the office consistent 
with applicable federal regurrements 
E Except as provided m paragraph C, ratepayer funds may not be used to tmplement 
the program or to provide fundmg under the program to distributed solar facilities or 
energy storage systems 
Sec. 2. 35-A MRSA §3209-A, sub-§9 is enacted to read 
9. Apphcablhty to pro1ects between one megawatt and 2 megawatts. A distributed 
generation resource with a nameplate capacity of at least one megawatt and not more than 
megawatts may be used for net energy billing under this section only if the requirements 
of paragraph A are met 
A On or before December 31, 2024, the proposed distributed generation resource must 
reach commercial operation by the date specified m the net energy billmg agreement 
or by the date specified wrth an allowable modificat10n to that agreement 
An entity proposmg the development of a distributed generat10n resource that does not 
meet the requirement of this subsection may petition the commiss10n for a good-cause 
exemption due to external delays outside of the entity's control, which the commission may 
grant If it fmds that without the external delays the entity could reasonably have been 
expected to meet the requirement 
Sec. 3. 35-A MRSA §3209-B, sub-§7, as enacted by PL 2021, c 390, §2, is 
amended to read 
Apphcablhty The apphcabihty of this section is hmited by the requirements of 
section 3209-A, subsection 7 and subsection 9 
Sec. 4. 35-A MRSA §3209-B, sub-§8 is enacted to read 
Lrm1tat10n After December 31, 2023, a distributed generation resource may be 
used for net energy billmg under this section only If the distributed generation resource is 
collocated with all of the distributed generation resource's net energy billmg customers and 
those customers are subscnbed to 100% of the facility's output under this section This 
hmitat10n does not apply to a distributed generation resource with a net energy billmg 
agreement that was executed on or before December 31, 2023 An amendment revision or 
reissuance of an agreement under this subsection that occurs after December 31, 2023 may 
not be mterpreted to affect the date on which the agreement was lilltially executed 
Sec. 5. 35-A MRSA §3209-C is enacted to read 
§3209-C. Net energy btllmg cost recovery 
COMMITTEE AMENDMENT 
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COMMITIEE AMENDMENT "A "to S P 815, L D 1986 
The comm.1ss1on shall ensure that benefits of d1stnbuted generation under net energy 
billmg are reported and net energy billing costs are allocated m accordance with this 
section 
1. Defimt:mns. As used m t1us sect10n, unless the context otherwise mdicates, the 
followmg terms have the followmg meanmgs 
A "Benefits of dis1nbuted generat10n under net energy btlhng" means all benefits 
determmed by the commiss10n to be reasonably attnbutable to distributed generation 
pro1ects under section 3209-A and 3209-B, mcludmg but not limited to 
(1) Avoided energy and capacity costs 
In determmmg avoided energy and 
capacity costs, the commission shall use reasonable est1mates of energy and 
capacity market prices and account for transmiss10n and distribution hne losses 
The commiss10n may determme different av01ded costs for different t1me penods, 
mcludmg, but not l1mited to, peak and off-peak periods and summer and wmter 
penods, 
(2) Av01ded transmission and d1s1nbution costs 
In determmmg avoided 
transmission and distribution costs, the comm1ss1on shall use estimates of the 
margmal transmission and distribution costs and may determme different av01ded 
costs for different ttme penods, 
(3) A v01ded fossil fuel costs The commission shall determme avoided fossil fuel 
costs based on estimated reductions m 011, gas or other fossil fuel use and estrmated 
market pnces for these fuels, 
(4) Avoided transm1ss1on and distribution lme losses, 
(5) Demand reduction mduced pnce effects, 
(6) Transmission and d1stnbution plant extensions or upgrades funded by net 
energy btlhng customers, and 
(7) Any other benefits 1dentrfied by the comm1ss10n 
B ''Net energy b1llmg" means net energy b1llmg arrangements under section 3209-A 
or 3209-B 
C ''Net energy billmg costs" means all legitimate and verrfiable costs mcurred by a 
transmission and distribution utility drrectly attnbutable to net energy b1llmg 
''Net 
energy billmg costs" does not mclude any costs mcurred by a pro1ect sponsor as defined 
m section 3209-A, subsection 1, paragraph D, a net energy billmg customer or any 
other enttty, as determmed by the commission by rule 
2. Determmat:mn of costs and benefits. The comm.1ss1on annually shall determme the 
net energy billmg costs and benefits of d1s1nbuted generatton under net energy b1lbng for 
the previous year 
A When determmmg the benefits of dis1nbuted generatton under net energy blllmg, 
the commission shall use any available regional av01ded energy suwly cost study that 
the commission fmds to be applicable to the determmat1on and has been developed 
through a transparent process, with mput from state agencies, pubhc advocates and 
uttlittes or energy efficiency admm1strators from at least 3 other states m New England 
When relevant mformatton specrfic to thIS State is not provided m the regional study, 
COMMITTEE AMENDMENT 
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COMMITIBE AMENDMENT" A" to SP 815, L D 1986 
the commission may use the reg10nal mfonnation m the regional study or mformatlon 
from other sources supported by evidence m the commission's record 
B The commiss10n shall allocate to each mvestor-owned transmission and distribution 
utihty its pro rata share of net energy billing costs If the commission fmds that a benefit 
of distributed generation under net energy billmg provides a monetized net financial 
benefit to an mvestor-owned transmission and distribution utility that the commission 
does not otherwise account for when settmg rates for the utility, the net fmanc1al benefit 
must be aQPhed to offset the net energy billing costs allocated under thlS paragraph 
The allocat10n must be based on each utihty's total retail kilowatt-hour energy sales to 
ratepayers that pay net energy billing costs The commission may determme the means 
to be used for the allocation reguired under this subsection, and those means may 
mclude the direct transfer of funds between transmission and distnbution utilities 
3. Reportmg of costs and benefits The commission shall submit an annual report no 
later than March 31st to the 1omt standmg committee of the Legislature havmg mnsdiction 
over utihties matters descnbmg net energy billmg costs and benefits of distributed 
generation under net energy blllmg determmed by the commission under subsection 2 The 
report must mclude, but 1s not limited to, costs authonzed to be collected by transmiss10n 
and distnbution utilities m rates and benefits directly received by ratepayers 
The 
commiss10n shall d1stmguish costs and benefits that are monetized from costs and benefits 
that are not monetized If costs or benefits are monetized, the commission shall specify the 
entitles to which the monetized value accrues, which may mclude, but are not hmited to, 
electricity customers, electricity SUQPIY providers and transmission and distnbution 
utllrties 
4. Rules. The commission shall adopt rules necessary to implement this section Rules 
adopted by the commission under this subsection are routme techrucal rules as defmed m 
Title 5, chapter 3 7 5, subchapter 2-A 
Sec. 6. 35-A MRSA §3209-D is enacted to read 
§3209-D D1Str1buted generation procurement 
The commission may direct an mvestor-owned transmission and distribut10n utility to 
enter mto one or more contracts for energy or renewable energy credits from distributed 
generation resources m accordance with this sect10n The commission may not regurre a 
distributed generation resource to contract for the sale of energy or renewable energy 
credits under this section 
Definrtion. As used m this section, the followmg term has the followmg meanmg 
A "Distributed generation resource" means an electric generating facility that uses a 
renewable fuel or technology under section 3210, subsection 2, paragraph B-3, is 
located m the service temtory of a transmission and distribution utility m the State and 
(1) Has met or is reasonably hkely to meet the regurrements of section 3209-A, 
subsection 7, paragraph E, as determmed by the commiss10n, or 
(2) Has a nameplate capacity of at least one megawatt and not more than 2 
megawatts and 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" f' to SP 815, L D 1986 
(a) Is a member of a cluster study conducted by the transm1ss10n and 
d1stnbution utility with which the d1str1buted generation resource 1s seeking to 
mterconnect, or 
(b) Is hkely to receive regurred transm1ss1on approval from the New England 
mdependent system operator on or before April 30, 2024 
Competitive sohc1tations and m1tial procurement. The comm.1ss1on may conduct 
one or more compet1t1ve sohc1tations ID order to select d1str1buted generation resources for 
contracts under this subsection 
A No later than January 31, 2024, the comm.1ss1on shall detenmne whether to conduct 
a competitive sohc1tation pursuant to this subsection 
B If the comm.1ss10n conducts a compet1t1ve sohcitat10n under paragraph A and 
determmes that an mit1al procurement of energy or renewable energy credits 1s m the 
pubhc IDterest, the comm.1ss1on shall select d1str1buted generation resources for 
contracts under this sect10n 
Add1tional contractmg authonty After conductmg one or more competitive 
sohcitat1ons under subsection 2, the comm.1ss10n may drrect an IDvestor-owned 
transm1ss1on and d1stribut10n utihty to enter IDto one or more add1t10nal contracts for 
energy or renewable energy credits from d1Str1buted generation resources if the comm.1ss1on 
finds that such contracts are ID the pubhc IDterest 
A A contract for energy or renewable energy credits from a d1stnbuted generation 
resource under this subsection may not establish a pnce for such energy or renewable 
energy credits that 1s greater than the highest pnce established ID the procurements 
under subsection 2 
Contract terms A contract entered IDto pursuant to this section must be for a term 
of no more than 20 years unless the comm.1ss1on fmds a contract for a longer term to be m 
the pubhc IDterest 
5. Net energy bdhng agreement termmation A d1str1buted generation resource that 
1s awarded a contract under this section 1s IDehgtble for net energy b11lmg under section 
3209-A or section 3209-B and the commiss10n shall regurre all net energy billIDg 
arrangements or agreements be termmated as a condition of awardmg a contract under this 
section 
6. Report. The comm.1ss10n shall IDclude ID its biennial report required by section 
3210-G, subsection 3 mformat1onregardmgthe status of contracts for energy orrenewable 
energy credits from d1str1buted generation resources pursuant to this section, mcludIDg, but 
not bm.1ted to, the number of distributed generation resources that have been awarded 
contracts, the total capacity of those resources and the estnnated ratepayer savmgs as a 
result of those contracts 
Sec. 7. 35-A lVIRSA §3209-E 1s enacted to read 
§3209-E. Net energy btlbng cost management 
1. Defimtmns. As used m this section, the followmg terms have the followmg 
meanmgs 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT •A "to SP 815, L D 1986 
A 
11D1stnbuted generation resource" has the same meamng as m section 3209-D, 
subsection 1, paragraph A 
B ''Net energy b11lmg cost" means a cost borne by ratepayers that 1s determmed by the 
comm1ss10n to be reasonably attnbutable to d1stnbuted generation pr01ects 
partic1patmg m net energy b1llmg arrangements under section 3209-A and section 
3209-B 
C "Opt-m program" means a program to reduce net energy b11lmg costs m which a 
d1stnbuted generation resource may elect to participate 
2. Opt-m programs. The comm1ss1on may develop and Jmplement one or more opt-m 
programs m accordance with this section 
A The comm1ss1on shall conduct one or more proceedmgs to exam.me and evaluate 
opt-m program designs, mcludmg, but not hm1ted to, designs that mclude long-term 
fmanc1al mechanisms and buy-down arrangements In conductmg an exammation and 
evaluation m accordance with this paragraph, the comm1ss10n shall consult with the 
Fmance Authonty of Mame and give preference to designs that enable the contmued 
development and operation of distnbuted generation resources 
B After exam.1Illllg and evaluatmg opt-m programs under paragraph A, If the 
comm1ss1on finds the rmplementat10n of an opt-m program to be m the pubhc mterest, 
the comm1ss10n shall establish and rmplement the opt-m program by rule 
C The comm1ss1on may not regurre a d1stnbuted generat10n resource to particmate m 
an opt-m program established m accordance with this section 
Rules The comm1ss1on may adopt rules to Implement this section Rules adopted 
pursuant to this subsection are routine techmcal rules as defined m Title 5, chapter 375, 
subchapter 2-A 
Sec. 8. 35-A MRSA §3210-G, sub-§3, as enacted by PL 2019, c 477, §2, 1s 
amended to read 
3. Report No later than March 31, 2023 and b1enmally thereafter, the comm1ss1on 
shall submit a report regardmg the status of contracts for Class IA resources under this 
section and the status of contracts for energy or renewable energy credits from d1str1buted 
generation resources under section 3209-D to the Jomt standmg committee of the 
Legislature havmg Junsd1ction over ut1hties and energy matters The report must mclude, 
but 1s not hm1ted to, a descnpt1on of Class IA resources part1c1patlng m competitive 
sohc1tations, mformation about the resources selected for contracts and the selection 
process, the benefits and costs of the contracts and recommendations about how to further 
stmulate mvestment m Class IA resources or achieve ratepayer benefits from Class IA 
resources The report may mclude mformat10n about benefits and costs of the contracts to 
the State's economy, envrronmental quahty or electr1c1ty consumers over both the short and 
long terms Any analysis of the benefits or costs of the contracts must be based on a forecast 
of all avoided costs resultmg from the contracts that 1s transparent and balanced over the 
longterm 
Sec. 9. Interconnection of energy storage. In developmg rules govemmg the 
mterconnection of renewable resources and energy storage pursuant to the Mame Revised 
Statutes, Title 35-A, section 3474, subsection 3, the Pubhc Ut1hties Comm1ss10n shall 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A" to SP 815, L D 1986 
consider whether modification of an mterconnection application for the sole purpose of 
addmg an energy storage system should matenally impact the posrtlon of the project m an 
mterconnection queue 
Sec. 10. Cost management report. 
By March 31, 2024, the Pubhc Utilities 
Comm1ss10n shall submit a report to the J omt Standmg Committee on Energy, Utilities and 
Technology regardmg the proceedmgs and any actions taken under the Mame Revised 
Statutes, Title 35-A, section 3209-E 
Sec. 11. D1stnbuted Solar and Energy Storage Program design. 
In 
developmg the Distnbuted Solar and Energy Storage Program under the Mame Revised 
Statutes, Title 2, section 9, subsection 6-A, the Governor's Energy Office shall ensure that 
the program is designed to address the recommendations contamed m the Fmal Report of 
the Distnbuted Generat10n Stakeholder Group dated January 6, 2023 and submitted by the 
office to the Jomt Standmg Committee on Energy, Utilities and Technology pursuant to 
Pubhc Law 2021, chapter 390, section 4 
Sec. 12. Appropnations and allocations. The followmg appropnattons and 
allocations are made 
EXECUTIVE DEPARTMENT 
D1str1buted Solar and Energy Storage Program N470 
lnrtiative Provides allocations to establish the program 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
EXECUTIVE DEPARTMENT 
DEPARTMENT TOTALS 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT TOTAL-ALL FUNDS 
PUBLIC UTILITIES COMMISSION 
Pubhc Utilities - Admmistrative D1vis10n 0184 
2023-24 
$500 
$500 
2023-24 
$500 
$500 
Imt1ative Provides allocattons for expenditures related to contracted services 
OTHER SPECIAL REVENUE FUNDS 
2023-24 
All Other 
$0 
OTHER SPECIAL REVENUE FUNDS TOTAL 
PUBLIC UTILITIES COMMISSION 
DEPARTMENT TOTALS 
$0 
2023-24 
COMMITTEE AMENDMENT 
2024-25 
$500 
$500 
2024-25 
$500 
$500 
2024-25 
$252,553 
$252,553 
2024-25 
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COMMITTEE AMENDMENT -A "to SP 815, L D 1986 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT TOTAL-ALL FUNDS 
SECTION TOTALS 
OTHER SPECIAL REVENUE FUNDS 
SECTION TOTAL - ALL FUNDS 
$0 
$252,553 
$0 
$252,553 
2023-24 
2024-25 
$500 
$253,053 
$500 
$253,053 
Amend the bill by relettenng or renumbenng any nonconsecutive Part letter or section 
number to read consecutively 
SUlVIMARY 
Tins amendment replaces the bill and does the followmg 
Establishes the D1stnbuted Solar and Energy Storage Program to obtam and provide 
federal fundmg to foster the contmued growth of cost-effective d1stnbuted solar facilities 
and energy storage systems m the State, 
Lrm1ts participation m the kilowatt-hour credit and tariff rate net energy b1llmg 
programs for d1stnbuted generat10n resources with a nameplate capacrty greater than or 
equal to one megawatt and less than or equal to 2 megawatts to those resources that, on or 
before December 31, 2024, reach commercial operation by the date specified m the net 
energy b1lhng agreement or by the date specified with an allowable modification to that 
agreement, 
After December 31, 2023, lrm1ts participation Ill the tariff rate net energy b1llmg 
program to d1stnbuted generation resources that are collocated with all of the d1stnbuted 
generation resource's net energy billing customers and those customers are subscnbed to 
100% of the facility's output The hm1tation does not apply to a d1stnbuted generation 
resource with a net energy btlhng agreement that was executed on or before December 31, 
2023, 
Requrres the Pubhc Utiht1es Comm.1ss1on to annually determme the net energy 
btllmg costs and benefits of distnbuted generation under net energy btlhng programs for 
the previous year and to allocate to each mvestor-owned transm1ss10n and d1stnbut1on 
uttl1ty its pro rata share of net energy b1llmg costs The allocat10n must be based on each 
uttl1ty's total retatl kilowatt-hour energy sales to ratepayers that pay net energy b1llmg costs, 
Establishes parameters for a competitive sohc1tat1on and procurement to be 
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conducted by the comm.1ss10n to procure energy or renewable energy credits from 
d1stnbuted generation resources that have met or are reasonably likely to meet the net 
8 
energy billmg ehg1b1lity cntena as determmed by the comm1ss10n or, for those resources 
that have a nameplate capacity of at least one megawatt and not more than 2 megawatts, 
are a member of a cluster study conducted by a transm1ss1on and d1stnbution utility or are 
hkely to receive requrred transm1ss1on approval from the New England mdependent system 
operator on or before Apnl 30, 2024 If the comm1ss1on determmes that a procurement of 
energy or renewable energy credits 1s m the pubhc mterest, the comm1ss1on must select 
COMMITTEE AMENDMENT 
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COMM1TIEE AMENDMENT "A" to SP 815, L D 1986 
distnbuted generation resources for contracts Distributed generat10n resources that are 
awarded contracts as a result of the competitive sohcitation may not participate m net 
energy b1llmg and must tenmnate any net energy billmg arrangements or agreements, and 
Directs the commission to conduct one or more proceedmgs to exam.me and evaluate 
designs for programs to reduce net energy billmg costs m which a distnbuted generation 
resource may elect to part1c1pate, mcludmg, but not hm1ted to, designs that mclude long-
term fmancial mechamsms and buy-down arrangements If the commission finds the 
Implementat1on of a program to be m the pubbc mterest, the commiss10n must establish 
and Implement the program By March 31, 2024, the comm1ss1on must provide a report of 
its act1v1ties regardmg these programs to the Jomt Standmg Committee on Energy, Utibt1es 
and Technology 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved 06/18/23 ;k/l'ae 
LD 1986 
LR 1471(02) 
An Act Relatmg to Net Energy Btlhng and D1str1buted Solar and Energy Storage Systems 
Fiscal Note for Bill as Amended by Committee Amendment 'j;•( S ~ Lf ?I'\ 
Comnnttee: Energy, Utilities and Technology 
'-") 
Appropriations/ Allocations 
Other Special Revenue Funds 
Revenue 
Other Special Revenue Funds 
Fiscal Detatl and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2023-24 
FY 2024-25 
$500 
$253,053 
$0 
$252,553 
Pro1ections 
FY 2025-26 
$51,011 
$50,511 
Projections 
FY2026-27 
$51,011 
$50,5 
Tots bill makes certam adJustments to the Net Energy Billmg Program rules and mstitutes new adIDlillstrative 
requrrements for the Pubhc Utihties Comrmss10n (PUC) regardmg the program activities The bill also estabhshes the 
Distnbuted Solar and Energy Storage Program withm the Governor's Energy Office (GEO) The GEO is requrred to 
obtam any avatlable federal fundmg to fund the new progra~ but the bill allows the GEO to request fundmg from the 
PUC Rermbursement Fund or PUC Regulatory Fund for admtmstrative expenses The fiscal note assumes the fundmg 
will come from the PUC Rermbursement Fund or the PUC Regulatory Fund and the bill mcludes Other Special 
Revenue Funds allocations of $500 to estabhsh the program and allow fundmg from one of those sources to be 
expended 
The PUC has mdtcated that the additional adrrnmstrative requrrements for the Net Energy Billmg program cannot be 
absorbed withm existing resources The bill mcludes one-time allocations of $252,553 m fiscal year 2024-25 for the 
costs of contracted consultmg services The PUC would requrre additional allocations of $50,511 begmmng m fiscal 
year 2025-26 for the cost of contracted servtces for ongomg updates to the economtc models developed by the imtJ.al 
consultant Smee the PUC is funded by assessments on rmpacted utihtles set to produce sufficient revenue for the 
expenditures needed to operate it, the mcreased allocations m this btll requrre a correspondmg mcrease m revenue 
from those assessments 
LR1471(02) - Fiscal Note - Page 1 of 1