An Act to Reform Net Energy Billing by Establishing Limitations on
Maine Legislature, Session 132, LD 1321
Committee: Energy, Utilities and Technology
Sponsors: FOSTER, STEWART
Amends: 35-A MRSA §3209-A, 35-A MRSA §3209-B

Legislative Document
No. 1321
H.P. 856
House of Representatives, March 27, 2025
An Act to Reform Net Energy Billing by Establishing Limitations on 
the Programs' Duration and Compensation
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative FOSTER of Dexter.
Cosponsored by Senator STEWART of Aroostook and
Representatives: FAULKINGHAM of Winter Harbor, MCINTYRE of Lowell, PAUL of 
Winterport, WADSWORTH of Hiram, Senators: BRADSTREET of Kennebec, 
HARRINGTON of York.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  35-A MRSA §3209-A, sub-§1, ¶C, as enacted by PL 2019, c. 478, Pt. A, 
§3, is amended to read:
C.  "Net energy billing" means a billing and metering practice under which a customer 
is billed on the basis of the difference between the supply charges for the kilowatt‑hours 
delivered by a transmission and distribution utility to the customer over a billing period 
and the credit amount for kilowatt‑hours delivered by the customer to the transmission 
and distribution utility over the billing period, taking into account accumulated unused 
kilowatt‑hour credits from the previous billing period.
Sec. 2.  35-A MRSA §3209-A, sub-§1, ¶E is enacted to read:
E.  "Renewable energy credit" has the same meaning as in section 3210, subsection 2, 
paragraph B-2.
Sec. 3.  35-A MRSA §3209-A, sub-§10 is enacted to read:
10.  Applicability to projects of more than 20 kilowatts.  After November 1, 2025, 
unless the entity proposing the development of a distributed generation resource is granted 
a good-cause exemption due to external delays in accordance with subsection 7 or 9, a 
distributed generation resource may not be used for net energy billing under this section if 
the nameplate capacity of the distributed generation resource is more than 20 kilowatts.
A. Notwithstanding any provision of this section to the contrary, the number of 
customers or meters is limited to 10 for a shared financial interest in a distributed 
generation resource participating in net energy billing pursuant to this subsection.
B. A customer participating in net energy billing pursuant to this subsection may not, 
at one time, have a financial interest in more than 5 distributed generation resources 
that have net energy billing arrangements.
Sec. 4.  35-A MRSA §3209-A, sub-§11 is enacted to read:
11.  Net energy billing termination.  Notwithstanding any provision of law to the 
contrary, a person may not participate or, if participating, may no longer participate, in net 
energy billing under this section after the earlier of:
A. Twenty years from the date a net energy billing agreement between the entity 
proposing the development of the distributed generation resource and the transmission 
and distribution utility was executed; and
B. December 31, 2045.
Sec. 5.  35-A MRSA §3209-A, sub-§12 is enacted to read:
12.  Renewable energy credits; sale required.  A project sponsor, owner of a 
distributed generation resource or other entity operating a distributed generation resource 
with a net energy billing arrangement under this section shall sell any renewable energy 
credits generated by the distributed generation resource and may not sell outside of the 
State any renewable energy credits generated by the distributed generation resource.
Sec. 6.  35-A MRSA §3209-B, sub-§5, ¶A, as amended by PL 2021, c. 659, §19, 
is further amended to read:
A.  The tariff rate for a customer participating in net energy billing with a distributed 
generation resource described in this paragraph must equal the standard-offer service 
supply rate established under section 3212 that is applicable to the customer receiving 
the credit plus 75% of the effective transmission and distribution rate for the rate class 
that includes the smallest commercial customers of the investor-owned transmission 
and distribution utility.  The tariff rate under this paragraph applies to net energy billing 
with a distributed generation resource:
(1)  With a nameplate capacity of greater than one megawatt if:
(a)  The entity developing the distributed generation resource certifies by 
affidavit with accompanying documentation to the commission that the entity, 
before September 1, 2022, commenced on-site physical work of a significant 
nature on the distributed generation resource and the entity has made and will 
continue to make continuous on-site construction efforts to advance toward 
completion of the distributed generation resource. For the purpose of this 
paragraph, continuous on-site construction efforts include, but are not limited 
to, in the context of a solar facility, the continuous installation of racks or other 
structures to affix photovoltaic panels, collectors or solar cells to a site.  The 
commission may share information contained in the affidavit submitted in 
accordance with this paragraph with a transmission and distribution utility, as 
necessary, to verify a distributed generation resource's compliance with this 
section. In administering this subsection, the commission may adopt rules 
including, but not limited to, requiring the entity that submits a sworn affidavit 
under this subparagraph to provide updated documentation to the commission 
after submission of the affidavit; or
(b)  The distributed generation resource 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
(2)  With a nameplate capacity of one megawatt or less.
Sec. 7.  35-A MRSA §3209-B, sub-§5, ¶A-1, as enacted by PL 2021, c. 659, §19, 
is amended to read:
A-1.  The tariff rate for a customer participating in net energy billing under this section 
with a distributed generation resource not governed by paragraph A must: equal the 
standard-offer service supply rate established pursuant to section 3212 that was 
applicable to the rate class of the customer receiving the credit on December 31, 2020.
(1)  In 2022, equal the standard-offer service rate established pursuant to section 
3212 that was applicable to the rate class of the customer receiving the credit on 
December 31, 2020 plus 75% of the effective transmission and distribution rate 
that was in effect on December 31, 2020 for the rate class that includes the smallest 
commercial customers of the investor-owned transmission and distribution utility; 
and
(2)  Increase by 2.25% on January 1st of each subsequent year, beginning January 
1, 2023.
Sec. 8.  35-A MRSA §3209-B, sub-§9 is enacted to read:
9.  Net energy billing termination.  Notwithstanding any provision of law to the 
contrary, a person may not participate or, if participating, may no longer participate, in net 
energy billing under this section after the earlier of:
A. Twenty years from the date a net energy billing agreement between the entity 
proposing the development of the distributed generation resource and the transmission 
and distribution utility was executed; and
B. December 31, 2045.
Sec. 9.  35-A MRSA §3209-B, sub-§10 is enacted to read:
10.  Renewable energy credits; sale required.  An owner or operator of a distributed 
generation resource with a net energy billing arrangement under this section shall sell any 
renewable energy credits generated by the distributed generation resource and may not sell 
outside of the State any renewable energy credits generated by the distributed generation 
resource.
SUMMARY
This bill does the following.
1. It amends the law governing the kilowatt-hour credit net energy billing program to 
provide that, unless a distributed generation resource has met the timing requirements 
established for participation in the program, only distributed generation resources with a 
nameplate capacity of 20 kilowatts or less may be used for net energy billing. For 
distributed generation resources participating pursuant to this provision, the number of 
shared financial interest customers or meters is limited to 10 and a customer may not, at 
one time, have a financial interest in more than 5 distributed generation resources that have 
net energy billing arrangements. The bill also provides that kilowatt-hour credits may be 
credited only to a customer's electricity supply charges. 
2. It amends the law governing the tariff rate net energy billing program to limit the 
tariff rate to the supply rate of the standard-offer service rate.
3. It amends the laws governing the tariff rate and kilowatt-hour credit net energy 
billing programs to prohibit participation 20 years from the date a net energy billing 
agreement between the entity proposing the development of the distributed generation 
resource and the transmission and distribution utility was executed or on December 31, 
2045, whichever occurs earlier. The bill also requires a distributed generation resource 
participating in net energy billing programs to sell in the State renewable energy credits 
generated by the resource.