An Act Relating to Energy Storage and the State's Energy Goals
Maine Legislature, Session 131, LD 1850
Committee: Energy, Utilities and Technology
Sponsors: VITELLI, ZEIGLER, BRENNER, DAUGHTRY, JACKSON, LAWRENCE, TERRY
Amends: 35-A MRSA §3145, 35-A MRSA §3204

Legislative Document
No. 1850
S.P. 751
In Senate, April 27, 2023
An Act Relating to Energy Storage and the State's Energy Goals
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator VITELLI of Sagadahoc.
Cosponsored by Representative ZEIGLER of Montville and
Senators: BRENNER of Cumberland, DAUGHTRY of Cumberland, President JACKSON of 
Aroostook, LAWRENCE of York, Representative: TERRY of Gorham.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  35-A MRSA §3145, as amended by PL 2021, c. 676, Pt. A, §49, is further 
amended to read:
§3145.  State energy storage policy goals
The state goal for energy storage system development is at least 300 megawatts of 
installed capacity located within the State by December 31, 2025 and at least 400 
megawatts of installed capacity located within the State by December 31, 2030.  Beginning 
January 1, 2031 2024, and every 2 years thereafter, the Governor's Energy Office 
established in Title 2, section 9 shall set may reevaluate and increase the state goal for 
energy storage system development and report that goal to the joint standing committee of 
the Legislature having jurisdiction over energy and utilities matters.  For the purposes of 
this section, "energy storage system" has the same meaning as in section 3481, subsection 
6.
Sec. 2.  35-A MRSA §3204, sub-§6, as enacted by PL 1997, c. 316, §3, is amended 
to read:
6.  Generation assets permitted.  On or after March 1, 2000, notwithstanding any 
other provision in this chapter, the commission may allow an investor-owned transmission 
and distribution utility to own, have a financial interest in or otherwise control generation 
and generation-related assets to the extent that the commission finds that ownership, 
interest or control is necessary for the utility to perform its obligations as a transmission 
and distribution utility in an efficient manner.
The commission shall by rule establish conditions under which an investor-owned 
transmission and distribution utility may own, have a financial interest in or otherwise 
control energy storage systems, as defined in section 3481, subsection 6, in order to perform 
its obligations as a transmission and distribution utility in an efficient manner.  Rules 
adopted under this subsection are routine technical rules pursuant to Title 5, chapter 375, 
subchapter 2-A.
Sec. 3.  Maine energy storage program development.  The Governor's Energy 
Office, established in the Maine Revised Statutes, Title 2, section 9, referred to in this 
section as "the office," shall, in consultation with the Public Utilities Commission, evaluate 
designs for a program to procure commercially available utility-scale energy storage 
systems connected to the transmission and distribution systems, including, but not limited 
to, through the use of an index storage credit mechanism. 
1. In evaluating programs for the procurement of energy storage systems, the office 
shall consider programs that are likely to be cost-effective for ratepayers and that are likely 
to achieve the following objectives:
A. Advance both the State's climate and clean energy goals and the state energy storage 
policy goals established in Title 35-A, section 3145 through the development of up to 
megawatts of incremental energy storage capacity located in the State;
B. Provide one or more net benefits to the electric grid and to ratepayers, including, but 
not limited to, improved reliability, improved resiliency and incremental delivery of 
renewable electricity to customers;
C. Maximize the value of federal incentives; and
D. Enable the highest value energy storage projects, specifically energy storage 
systems in preferred locations, projects that can serve as an alternative to upgrades of 
the existing transmission system and projects of optimal duration.
For purposes of this subsection, "index storage credit mechanism" means a mechanism for 
setting contract prices for energy storage capacity using the difference between a 
competitively bid price, or strike price, and daily reference prices calculated using an index 
designed to approximate wholesale market revenues available for each megawatt-hour of 
capacity and including a mechanism to provide for a net payment from the operator of the 
storage capacity project to ratepayers in the event the reference price exceeds the strike 
price. 
2. The office shall encourage interested parties to submit relevant information to inform 
the evaluation under subsection 1.
3. No later than March 31, 2024, the office shall complete the evaluation required under 
subsection 1 and provide its recommendations to the Public Utilities Commission for a 
program to procure up to 200 megawatts of energy storage capacity. 
4. No later than December 31, 2024, the Public Utilities Commission shall review the 
recommendations of the report and determine whether the program recommended by the 
office is reasonably likely to achieve the objectives established in subsection 1.  Upon 
finding the proposed program reasonably likely to achieve the objectives established in 
subsection 1, the Public Utilities Commission shall take steps to implement the program in 
accordance with any applicable authority the commission may have under law and may 
submit to the joint standing committee of the Legislature having jurisdiction over energy 
matters recommendations for any changes to law needed to allow the commission to fully 
implement the program. The joint standing committee may report out legislation related to 
energy storage to the 132nd Legislature in 2025.
Sec. 4.  Governor's Energy Office; long-duration energy storage report. The 
Governor's Energy Office shall study long-duration energy storage, including opportunities 
for new and emerging long-duration energy storage technology that would support the 
State's need for clean, firm power generation in support of the State's climate and clean 
energy goals.  The office shall submit a report, along with any recommendations, to the 
Joint Standing Committee on Energy, Utilities and Technology no later than February 1, 
2024. The joint standing committee may report out a bill related to the report to the Second 
Regular Session of the 131st Legislature. The report must include, but is not limited to:
1.  A discussion of technology options for long-duration energy storage, including 
emerging technologies and a description of their technical operation and commercial 
viability, that may be feasible within the State and New England between 2023 and 2040;
2.  An overview of known cost and performance characteristics, as well as development 
considerations by technology, such as development timelines, siting requirements or safety 
considerations; and
3.  A discussion of scenarios for long-duration energy storage technologies, such as 
serving as peaking capacity, providing winter reliability or providing benefits through 
colocation with renewable resources.
Sec. 5.  Funding. Upon written request of the Governor's Energy Office, for the 
purposes of allowing the office to fulfill its responsibilities under sections 2 and 3, the 
Public Utilities Commission shall provide:
1.  Reasonable technical, legal and other assistance, including the provision of 
requested information; and
2.  Notwithstanding the Maine Revised Statutes, Title 35-A, section 116, funding for 
staff and consultants in an amount not to exceed $300,000 from the Public Utilities 
Commission Regulatory Fund established under Title 35-A, section 116.
Sec. 6.  Public Utilities Commission; utility ownership or control of energy 
storage. The Public Utilities Commission shall conduct a rule-making proceeding under 
the Maine Revised Statutes, Title 35-A, section 3204, subsection 6 to establish the 
conditions under which an investor-owned transmission and distribution utility may own, 
have a financial interest in or otherwise control energy storage systems in order to perform 
its obligations as a transmission and distribution utility in an efficient manner.
1.  In the rule-making process, the commission shall consider at a minimum the effect 
that investor-owned transmission and distribution utility ownership of, financial interest in 
or control of energy storage systems may have in:
A.  The achievement of the state energy storage goals established in Title 35-A, section 
3145, including current and future state programs to encourage investment in energy 
storage;
B.  The achievement of the objectives of Title 35-A, chapter 32;
C.  The achievement of the greenhouse gas emissions reduction requirements 
established in Title 38, section 576-A;
D.  The achievement of the renewable energy goals established in Title 35-A, section 
3210; 
E.  The achievement of the renewable energy goals of the State, including but not 
limited to the solar energy-related goals established in Title 35-A, chapter 34-B and the 
wind energy development goals established in Title 35-A, chapter 34; and
F.  The procurement of nonwires alternatives under Title 35-A, section 3132-D.
The commission shall adopt rules no later than March 15, 2024.  The commission shall also 
provide a report containing any statutory changes the commission recommends related to 
energy storage, including legislation to implement such changes, to the Joint Standing 
Committee on Energy, Utilities and Technology no later than January 15, 2024.
SUMMARY
This bill does the following.
1.  It modifies the state goal for energy storage system development to at least 300 
megawatts of installed capacity by December 31, 2025 and at least 400 megawatts by 
December 31, 2030. It provides that, beginning January 1, 2024 and every 2 years 
thereafter, the Governor's Energy Office may reevaluate and increase the state goal.
2.  It directs the Governor's Energy Office, in consultation with the Public Utilities 
Commission, to evaluate designs for and recommend a program to procure commercially 
available utility-scale energy storage systems connected to the transmission and 
distribution systems, including but not limited to the use of an index storage credit 
mechanism.  It directs the Public Utilities Commission to evaluate whether the program 
recommended by the office is  reasonably likely to achieve the certain objectives.  Upon 
finding the proposed program reasonably likely to achieve those objectives, the Public 
Utilities Commission is directed to take steps to implement the program in accordance with 
any applicable authority the commission may have and may submit to the joint standing 
committee of the Legislature having jurisdiction over energy matters recommendations for 
any changes to law needed to allow the commission to fully implement the program. The 
joint standing committee may report out legislation related to energy storage to the 132nd 
Legislature in 2025.
3.  It directs the Governor's Energy Office to study long-duration energy storage, 
including opportunities for new and emerging long-duration energy storage technologies 
that would support the State's need for clean, firm power generation in support of the State's 
climate and clean energy goals.  The office is directed to submit a report, along with any 
recommendations, to the Joint Standing Committee on Energy, Utilities and Technology 
no later than February 1, 2024. The committee may report out a bill related to the report to 
the Second Regular Session of the 131st Legislature.
4.  It provides that upon written request of the Governor's Energy Office, for the 
purposes of allowing the office to conduct the studies, the Public Utilities Commission is 
required to provide reasonable technical, legal and other assistance as well as funding for 
staff and consultants in an amount not to exceed $300,000.
5.  It directs the Public Utilities Commission to adopt rules establishing conditions 
under which an investor-owned transmission and distribution utility may own, have a 
financial interest in or otherwise control energy storage systems in order to perform its 
obligations as a transmission and distribution utility in an efficient manner.