An Act to Repeal the Laws
Maine Legislature, Session 132, LD 0032
Committee Amendment CA_B_S588 (Senate)
Amends: 26 MRSA §1304, 35-A MRSA §102, 35-A MRSA §3145, 35-A MRSA §3209-A, 35-A MRSA §3209-B, 35-A MRSA §3209-C, 35-A MRSA §3209-E, 35-A MRSA §3209, 35-A MRSA §3209-H, 35-A MRSA §3210-G, 35-A MRSA §3210, 35-A MRSA §3210-J, 35-A MRSA §3214, 35-A MRSA §3401-A, 35-A MRSA §3474, 35-A MRSA §3623, 35-A MRSA §10102, 35-A MRSA §10202, 36 MRSA §655, 36 MRSA §656

COMMITTEE AMENDMENT " &' to S.P. 49, L.D. 32, "An Act to Repeal the Laws
Regarding Net Energy Billing"
Amend the bill by striking out the title and substituting the following:
'An Act to Reverse Recent Modifications Made to the Law Governing Net Energy
BUling and Distributed Generation'
Amend the bill by striking out everything after the enacting clause and inserting the
followmg:
'See. 1. 26 MRSA §1304, sub-§l-A, as enacted by PL 2021,c. 705,§2, is amended
by amending the first blocked paragraph to read;
"Assisted project" does not include a project for which the Public Utilities Commission
approved a term sheet or contract or otherwise provided project-specific authonzation or
approval pursuant to Title 35-A on or before June 29,2021 or a project that is participating
in net energy btUing-und that meoto the requirements of Title 35 A, section 3209 A,
Dubocotion 7 or Title 35 A, oootion 3209 B.
See. 2. 35-A MRSA §102, sub-§4-D is enacted to read:
4"D. Enerev storaee svstem. "Enerev storape svstetn"'means a commerciallv
available technology that uses mechanical, chemical or thermal processes for absorbing
energy and storing it for a period of time for use at a later time.
Sec. 3. 35-A MRSA §3145, first ^ as amended by PL 2025, c. 105, § 1, is further
amended to read:
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 15, 2027, and every 2 years thereafter, when updating the state energy plan in
3 accordance with Title 2, section. 9, subsection 3, paragraph C, the Governor's Bnorgy.Office
established in Titlo 2, section 9 section 10305. subsection 1. the Department of Energy
Resources shall reevaluate and may increase the state goal for energy storage system
COMMITTEE AMENDMENT
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COMMm-EB AMENDMENT " ^ to S.P, 49, L.D. 32 ( 5 -^^
development and shall, in the state energy plan, report any increase to the goal to the joint
standing committee of the Legislature having jurisdiction over energy and utilities matters,
For the purposes of this section, "energy storage Qystem" hao the same meaning as in section
3/181, subsection 6.
Sec. 4. 35-A MRSA §3209-A, as amended by PL 2025,c. 50, §1; c. 430,§§1 to 3;
and c. 575, §4, is repealed and the following enacted in its place:
S3209-A. Netenersvbilline
The commission may adopt or amend rules eovemine net enerev billine. Rules adopted
or amended under this section are mai'or substantive mles as defined in Title 5 . chapter JL75.
subchapter 2-A, For the purposes of this section, "net energvAilline11 means a bjHinB and
meterina practice under which a customer is billed on the basis of the difference between
the kilowatt-hours delivered bv a transmission and distribution utility to the customer over
a billiQR period and (lie kilowatt-hours delivered by the customer to the transmission and
distribution utility over the billine period, takine into accoutit accumulated unused
kilowatt-hour credits fi-om the previous billine Deriod.
See. 5. 35-A MRSA §3209-B, as amended by PL 2025,c,430,§§4 to 6, is repealed.
Sec. 6. 35-A MRSA §3209-C, sub-§l, as corrected by RR 2023,c. 2, Pt. A,§55,
is amended to read:
1. Definitions. As used in this section, unless the context otherwise indicates, the
following terms have the following meanings.
A. "Benefits of distributed generation under net energy biiling" means all benefits
determined by the commission to be reasonably attributable to distributed generation
projects under sections section 3209-A and 3209 B, 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 detennine 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
3 costs for different time periods;
(3) Avoided fossil fuel costs. The commission shall determine avoided fossil fuel
5 costs based on estimated reductions in oil, gas or other fossil fuel use and estimated
market prices for these faels;
(4) Avoided transmission and distribution line losses;
(5) Demand reduction induced price effects;
(6) Transmission and distribution plant extensions or upgrades funded by net
energy billing customers; and
(7) Any other benefits identified by the commission,
COMMITTEE AMENDMENT
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COMMITTEE AMENDMENT " ^" to S.P. 49, L.D. 32 (^^
B. "Net energy billing" means net energy billing arrangements under section 3209-A
er 3209 B.
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, ouboection 1, paragra^it-D^ a net energy billing customer or any
other entity, as determined by the commission by rule.
Sec. 7. 35-A MRSA §3209-E, as amended by PL 2025,c,430,§8, is repealed.
Sec. 8. 35-A MRSA §3209"F, as enacted by PL 2025,c. 430,§9 and c.532,§ 1,is
repealed.
Sec. 9. 3S-A MRSA §3209-G, as enacted by PL 2025,c. 430,§ 10, is repealed,
Sec. 10. 35-A MRSA §3209-H, as enacted by PL 2025,c.430, §11, is repealed.
Sec. 11. 35-A MRSA §3209-1, as enacted by PL 2025,c. 430, §12, is repealed.
Sec. 12. 35-A MRSA §3210-G, sub-§l, ^D, as enacted by PL 2019, c. 477, §2, is
amended by repealing the first blocked paragraph.
Sec. 13. 3S-A MRSA §3210-G, sub-§3, as amended by PL 2025,c.430,§13,is
further amended to read:
3. Report. No later than March 31, 2023 and biennially thereafter, the commission
shall submit a report regarding the status of contracts for Class IA resources under this
section and the status of contracts for energy or renewable energy credits from distributed
generation resources under former section 3209-H to the joint standing committee of the
Legislature having jurisdiction over utilities and energy matters. The report must include,
but is not limited to, a description of Class IA resources participating in competitive
solicitations, information about the resources selected for contracts and the selection
process, the benefits and costs of the contracts and recommendations about how to further
stimulate investment in Class IA resources or achieve ratepayer benefits from Class IA
resources. The report may include information about benefits and costs of the contracts to
the State's economy, environmental quality or electricity 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 resulting from the contracts that is transparent and balanced over the
long term.
See. 14. 35-A MRSA §3210-1, sub-§3, ^[A, as amended by PL 2023, c, 660, §8,
is further amended to read:
A, The proposals must be required to cover a contract term of 20 years, except that the
commission may, in its discretion, approve a contract term of a different duration, and
must include provisions for the construction, development and subsequent commercial
operation of one or more qualified renewable energy generation projects in northern
Maine that will be designed to connect to and transmit generated power using the
transmission line or lines to be constructed pursuant to subsection 2. The commission
may consider only proposals for the construction of Class I and Class IA resources, as
defined in section 3210, subsection 2, and energy storage systems, except that the
commission may not consider proposals for the construction of biomass generators
COMMITTEE AMENDMENT
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COMMITTEE AMENDMENT '"J^," to S.P, 49, L.D. 32 (^
fueled by landfill gas or by anaerobio digestion of agricultural products, by-products
or waste, or waste-to-energy generation facilities fueled by municipal solid waste, fw
the'purposesofthis section, "energy storage syotem" moaQO a commeroinlly availablo
technology that uses mechanical, chemical or thermal procossos "foF absorbing energy
and otering it for a poriod-oftime for uco at a lator time..
Sec. 15. 35-A MRSA §3210-J, sub-gl, ^D, as enacted by PL 2023, o. 321, §3, is
repealed.
Sec. 16. 35-A MRSA §3214, sub-§2, IfC, as enacted by PL 2023, c. 230, §2, is
amended to read;
C. Receive funds remitted by transmission and distribution utilities with net energy
billing arrangements for expired kilowatt-hour credits in accordance with section
3209 A, aubGeotion 8 rules adopted by the commission pursuant to section 3209-A.
Sec. 17. 35-A MRSA §3401-A, sub-§13, as enacted by PL 2023, c. 481,§2, is
repealed and the following enacted in its place:
11, Nameolate capacity. "Nameplate caoacitv" means the installed or rated! caBacitv
of a power eenemtor.
Sec. 18. 35-A MRSA §3474, sub-§3, as amended by PL 2023,c. 307, §5, is further
amended to read:
3. Interconnection rules. The commission shall adopt mles related to the
interconnection of renewable capacity resources, as defined in section 3210-C, subsection
1, paragraph E, using solar power, referred to in this subsection as "solar resources," and
energy storage systems, as defined in seotion 3^181, subsection 6, whether or not colocated
with solar resources, to investor-owned transmission and distribution utilities, as defined
in section 3201, subsection 11-A, in a manner that supports the goals in this section and
ensures;
A. The State's interconnection rules reflect nationally recognized best practices, which
may include, but are not limited to, those established by the Interstate Renewable
Energy Council, or successor organization, and prioritize interconnection of solar
resources and energy storage systems owned by customers of investor-owned
transmission and distribution utilities and used to serve an on-site load;
B. Customers affected by deficiencies in the rules are able to access timely resolution
processes that do not place an undue burden on the customer; and
C. Investments in investor-owned transmission and distribution utility distribution
upgrades related to load are coordinated with utility infrastructure upgrades required
for the interconnection of renewable capacity resources using solar power and energy
storage systems.
7 Rules adopted under this subsection are routine technical rules as defined in Title 5, chapter
375,subchapter2-A.
See. 19. 35-A MRSA c. 34-C» as amended, is repealed.
Sec. 20. 35-A MRSA §3623, sub-§3, ^C, as enacted by PL 2021, c. 604, §3, is
amended to read:
Page4-132LR0075(03)
COMMITTEE AMENDMENT
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COMMirreE AMENDMENT " ^" to S.P, 49, L.D. 32 /^<
C. Satisfy the limits on net generating capacity established in subsection 2, paragraph
A: and
Sec. 21. 35-A MRSA §3623, sub-§3, ^pD, as amended by PL 2023,c,353, §5, is
further amended to read:
D. Be highly efficient, as determined by the commission on a technology-specific
basisTfMftd.
Sec. 22. 35-A MRSA §3623, sub-§3, <^E, as enacted by PL 2021, c. 604, §3, is
repealed.
Sec. 23. 35-A MRSA §10102, sub"§5-A, as enacted by PL 2021, c, 298, §2, is
repealed.
Sec. 24. 35-A MRSA §10202, sub-§7, ^B, as enacted by PL 2021, c. 142,§1, is
amended to read:
B, Involve a renewable energy installation, an energy storage system as defined in
seotion-3'181, subsection 6, an electric thermal storage system, electric vehicle supply
equipment or heating equipment that meets or exceeds standards established or
approved by the trust. Heating equipment that is not a renewable energy installation
must be heating equipment that produces the lowest carbon emissions of any heating
equipment reasonably available to the property owner, as determined by the trust, and
must meet the requirements of section 10204, subsection 1, paragraph B .
See. 25. 3S-A MRSA §10311, sub~§l, ^C, as enacted by PL 2025,c. 476, Ft. A,
§16, is repealed.
Sec. 26. 36 MRSA §655, sub-§l, flU, as amended by PL 2023, c. 682, §2, is further
amended by amending the 2nd blocked paragraph to read;
This paragraph applies to solar energy equipment for property tax years beginning
before April 1,2025; and
Sec. 27. 36 MRSA §655, sub-gl, fV, as enacted by PL 2023, c. 682, §3, is
amended to read:
V. For the property tax years beginning on er-afte? April 1, 2025 and April 1.2026,
solar energy equipment that generates heat or electricity if:
(1) All of the energy is used on the site where the property is located;
(2) The equipment is collocated with a net energy billing customer that is or net
energy billing customers that are subscribed to at least 50% of the facility's output;
or
(3) All of the energy is transmitted through the facilities of a transmission and
distribution utility and a utility customer or customers receive a utility bill credit
for the energy generated by the equipment pursuant to Title 35-A, section 3209-A
or former section 3209-B and the generator of electricity entered into a fully
executed interconnection agreement with a transmission and distribution utility
prior to June 1,2024,
On or before April 1st of the first property tax year for which a taxpayer claims an
exemption under this paragraph, the taxpayer claiming the exemption shall file a report
COMMITTEE AMENDMENT
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COMMm-EE AMENDMENT " g" to S.P. 49, L.D. 32 (S\
I with the assessor. The report must identify the property for which the exemption is
claimed and must be made on a form prescribed by the State Tax Assessor or a
substitute form approved by the State Tax Assessor. The State Tax Assessor shall
furnish copies of the form to each municipality in the State and make the forms
available to taxpayers?; and
Sec. 28. 36 MRSA §655, sub-§l, fW is enacted to read:
W, For property tax years beeinning on or after Aori 11,2027 .solar enerev eauipment
that generates heat or electricity if:
fit All of the energy is used on the site where the property is located:
f2) The equipment is collocated with a net enerRv billuiB customer that is or net
energy billin& customers that are subscribed to at least 50% of the facility's outmit:
or
(3) All of the energy is transmitted throueh the facilities of a transmission and
distribution utility and a utility customer or customers receive a utility bill credit
for the energy generated by the eauioment pursuant to rules adopted in accordance
withTitle 3 5-A. section 3209-A and the generator of electricity entered into a fully
executed interconnection aereement with a transmission and distribution utility
prior to June 1.2024,
On or before April 1st of the first property tax year for which a taxpayer claims an
exemption under this oaraeraph. the taxpayer claimine the exemption shall file a reoort
with the assessor. The report must identify the property for which the exemotion is
claimed and must be made on a form prescribed by the State Tax Assessor or a
substitute form approved by the State Tax Assessor, The State Tax Assessor shall
furnish copies of the form to each municiDalitv in the State and make the forms
available to taxpayers,.
Sec. 29. 36 MRSA §656, sub-§l, ^L, as enacted by PL 2023, c. 682, §5, is
amended to read:
L. For Jthe property tax years beginning on ei-afiw April I, 2025 and April 1. 2026,
solar energy equipment that generates heat or electricity if;
(1) All of the energy is used on the site where the property is located;
(2) The equipment is collocated with a net energy billing customer that is or net
energy billing customers that are subscribed to at least 50% of the facility's output;
or
(3) All of the energy is transmitted through the facilities of a transmission and
distribution utility and a utility customer or customers receive a utility bill credit
for the energy generated by the equipment pursuant to Title 35-A, section 3209-A
or former section 3209-B and the generator of electricity entered into a fully
executed interconnection agreement with a transmission and distribution utility
prior to June 1,2024.
On or before April 1st of the first property tax year for which a taxpayer claims an
exemption under this paragraph, the taxpayer claiming the exemption shall file a report
with the assessor. The report must identify the property for which the exemption is
claimed and must be made on a form prescribed by the State Tax Assessor or a
COMMITTEE AMENDMENT
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COMMnTBE AMENDMENT "U " to S.P. 49, L.D, 32f ,'S -.<
substitute form approved by the State Tax Assessor. The State Tax Assessor shall
furnish copies of the form to each municipality in the State and make the forms
available to taxpayers.
Sec. 30. 36 MRSA §656, sub-§l, ^M is enacted to read:
M. For property tax years besinninB on or after April 1.2027. solar energy eauioment
that generates heat or electricity if:
fl) All of the energy is used on the site where the uropertv isJocated;
(2) The equipment is collocated with a net enersv billine customer that is or net
energy billine; customers that are subscribed to at least 50% of the facility's outoyti
or
(3) All of the energy is transmitted throueh the facilities of a transmission and
distribution utility and a utility customer or customers receive a utility bill credit
for the energy generated by the equipment pursuant to mles adopted in accordance
with Title 35-A. section 3209-A and the eenerator of electricity entered into a fully
executed interconnection aereement with a transmission and distribution utility
prior to June 1.2024.
On or before April 1st of the first property tax year for which a taxpayer claims an
exemption under this paraeraph. the taxpayer claimine the exemption shall file a report
with the assessor. The report must identify the property for which the exemption is
claimed and must be made on a fonn prescribed bv the State Tax Assessor or a
substitute form approved by the State Tax Assessor. The State Tax Assessor shall
furnish copies of the form to each municipality in the State and make the forms
available to taxpayers.
Sec. 31. Public Utilities Commission to amend rules regarding net energy
billing. Within 60 days of the effective date of this Act, the Public Utilities Commission
shall initiate rulemaking pursuant to the Maine Revised Statutes, Title 35-A, section
3209-A to amend its rule Chapter 313; Customer Net Energy Billing to be substantively
equivalent to the rule in effect on March 29, 2017.'
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section
0 number to read consecutively .
SUMMARY
This amendment replaces the bill and changes the title. It repeals the provisions of law
enacted by Public Law 2019, chapter 478 related to net energy billing and distributed
generation. The amendment repeals or amends provisions of law in the Maine Revised
Statutes, Title 35-A that rely on provisions that were enacted by Public Law 2019, chapter
478 and are repealed by this amendment. The amendment also repeals certain provisions
of law related to net energy billing that were enacted after Public Law 2019, chapter 478
and repeals the section of law directing the Governor's Energy Office to design a front of
(lie meter distributed energy resources program. It directs the Public Utilities Commission
to initiate rulemaking to amend its rule regarding net energy billing to be substantially
similar to that in effect on March 29, 2017. For tax years beginning on or after April 1,
2027, the amendment also limits tax exemptions for solar energy equipment applicable to
Page7-132LR0075(03)
COMMITTEE AMENDMENT
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COMMITTEE AMENDMENT "j^ " to S.P, 49, L.D. 32 (Q>-S^'^
customers receiving a utility bill credit for energy generated by the equipment pursuant to
a provision of the Maine Revised Statutes that was repealed by this amendment.
FISCAL NOTE REQUIRED
(See attached)
COMMITTEE AMENDMENT
Revised; 03/19/26 i-Kt.
LD32 LR 75(03)
An Act to Repeal the Laws Regarding Net Energy Billing
Fiscal Note for Bill as Amended by Committee Amendment 'H'
Committee; Energy, Utilities and Technology
Fiscal Note Required: Yes
Fiscal Note
Potential future biennium savings " General Fund
Potential future biennium revenue increase - General Fund
Fiscal Detail and Notes
This bill repeals 35-A MRSA §3209-B, which pertains to commercial and institutional customer net energy billing
and corresponding property tax exemptions and requires the Public Utilities Commission (PUC) to amend its rule
Chapter 13: Customer Net Energy Billing. As a result, a decrease in property tax exemption reimbursements to
municipalities beginning in fiscal year 2028-29 is expected, however, the extent of General Fund savings cannot be
determined at this time due to the uncertainty of the PUC rulemaking process to institute a substantively equivalent
rule pursuant to 35-A MRSA §3209-A, In addition, the bill could result in a sales tax revenue gain due to reduced
eligibility for the exemptions, the amount of which cannot be determined at this time,
Any additional costs to the Public Utilities Commission from the provisions of this bill are expected to be minor and
can be absorbed within existing budgeted resources.
LR0075(03) - Fiscal Note - Page 1 of 1