Sec. 1. 35-A MRSA §3211, as enacted by PL 1997, c. 316, §3, is amended to read:

§3211. Conservation programs

The commission shall require transmission and distribution utilities to implement energy conservation programs developed pursuant to the requirements of section 3211-A, subsection 2, paragraphs B and C and include the cost of any such programs in the rates of transmission and distribution utilities. The commission shall require To the greatest extent practicable, and whenever so directed in strategy and plan developed pursuant to section 3211-A, subsection 2, paragraphs B and C, transmission and distribution utilities to shall select energy efficiency service providers through periodic competitive bidding programs. However, nothing in this section precludes transmission and distribution utilities from selecting providers through other means, including contracts or other forms of agreement with state, regional, federal or other public agencies, units of local government or nonprofit organizations whenever it can be demonstrated to the satisfaction of the commission that such entities can provide unique services or benefits and such arrangements are in the best interests of the State, or when the strategy and plans developed pursuant to section 3211-A, subsection 2, paragraphs B and C so recommend. The commission shall establish a reasonable level of funding for those new programs targeted at incremental energy efficiency savings.__The funding for these new programs must be comparable to the amount expended in total for similar all programs in the year 1999 and regularly review the amount of funding needed .__The commission shall periodically review the amount of funding for each transmission and distribution utility in subsequent proceedings, in consultation with the Energy Management Authority of Maine in fulfillment of its obligations under section 3211-A, subsection 2, paragraph C.

By July 1, 1998, the commission shall commence a rule-making proceeding on energy conservation programs. By July 1, 1999 January 1, 2000, the commission shall provisionally adopt final rules establishing energy conservation programs in compliance with this subsection. Rules adopted under this subsection are major substantive routine technical rules pursuant to Title 5, chapter 375, subchapter II-A.

Funds collected in the rates of transmission and distribution utilities beginning March 1, 2000 must be transferred to the Energy Management Authority of Maine for disbursement in contracts to energy efficiency service providers,