Sec. 6. 35-A MRSA §3211-A, sub-§12 is enacted to read:

12.__Independent analysis of programs.__The commission shall arrange for an independent evaluation of each major program implemented under this section.__Each major program must be evaluated at least once every 5 years.__The evaluation must include an accounting audit of the program and an evaluation of the program's effectiveness in meeting the goals of this section.__ The evaluations must be conducted by a competent professional with expertise in energy efficiency matters, including the management of cost-effective energy efficiency programs.__The commission shall include the results of all evaluations conducted under this subsection in the annual report submitted pursuant to subsection 11.__For purposes of this subsection, "major program" means a program with an annual budget of more than $500,000.

Sec. 7. Public Utilities Commission Efficiency Maine program. The Public Utilities Commission shall develop a plan for using revenues from any increase in the assessment on transmission and distribution utilities pursuant to the Maine Revised Statutes, Title 35-A, section 3211-A, subsection 4. The plan must include a description of how the funds would contribute to the goals of increasing energy efficiency for program participants and reducing electricity prices for all consumers. The commission shall consider using funds resulting from any increased assessments to increase the per-business incentive cap imposed on large businesses under the business program established pursuant to Title 35-A, section 3211-A.

The commission shall submit its plan, together with any recommendations for increases in the assessment consistent with that plan and any suggested legislation to implement its recommendations to the joint standing committee of the Legislature having jurisdiction over utilities and energy matters by January 1, 2007. The joint standing committee may report out legislation regarding energy efficiency to the First Regular Session of the 123rd Legislature.

Sec. 8. Public Utilities Commission analysis of certain programs. By December 31, 2007, the Public Utilities Commission shall arrange for and complete in accordance with the Maine Revised Statutes, Title 35- A, section 3211-A, subsection 12 an independent evaluation of the following programs established by the commission pursuant to Title 35-A, section 3211-A: the business program, the low-income appliance replacement program and the residential lighting program.