An Act To Create Affordable Heating Options for Maine Residents and Reduce Business Energy Costs
Sec. 1. 35-A MRSA §10103, sub-§1, ¶B, as enacted by PL 2009, c. 372, Pt. B, §3, is repealed and the following enacted in its place:
(1) Reducing the cost of energy to residents of the State;
(2) Maximizing the use of cost-effective weatherization and energy efficiency measures, including measures that improve the energy efficiency of energy-using systems, such as heating and cooling systems and system upgrades to energy efficient systems that rely on affordable energy resources;
(3) Reducing economic insecurity from the inefficient use of expensive fossil fuels;
(4) Increasing new jobs and business development to deliver affordable energy and energy efficiency products and services;
(5) Enhancing heating benefits for households of all income levels through implementation of cost-effective efficiency programs, including weatherization programs and affordable heating systems, that will produce comfort, improve indoor air quality, reduce energy costs for those households and reduce the need for future fuel assistance;
(6) Simplifying and enhancing consumer access to technical assistance and financial incentives relating to energy efficiency and the use of alternative energy resources by merging or coordinating dispersed programs under a single administrative unit possessing independent management and expertise; and
(7) Using cost-effective energy and energy efficiency investments to reduce greenhouse gas emissions;
Sec. 2. 35-A MRSA §10103, sub-§1, ¶D, as enacted by PL 2009, c. 372, Pt. B, §3, is amended to read:
Sec. 3. 35-A MRSA §10103, sub-§2, ¶A, as amended by PL 2011, c. 637, §2 and c. 655, Pt. MM, §18 and affected by §26, is repealed and the following enacted in its place:
(1) The Director of the Governor's Energy Office;
(2) The Commissioner of Economic and Community Development or the commissioner's designee;
(3) The Commissioner of Environmental Protection or the commissioner's designee; and
(4) Eight members appointed by the Governor, reviewed by the joint standing committee of the Legislature having jurisdiction over energy matters and approved by the Senate. Among these 8 members:
(a) One must represent the interests of commercial energy consumers;
(b) One must represent the interests of industrial energy consumers;
(c) One must represent the interests of small business energy consumers; and
(d) One must represent the interests of residential energy consumers and low-income energy consumers; and
(e) Four persons must collectively possess knowledge of and experience in financial matters and consumer advocacy and possess substantial management expertise or knowledge of or experience with conservation fund programs, carbon reduction programs or energy efficiency or climate change policy.
The requirements of this subparagraph may be met through the appointment of one or more persons who satisfy more than one of the requirements, as long as at any one time the 8 members include among them members who adequately represent the identified interests and who possess the required knowledge, expertise and experience.
Appointed members serve 3-year terms. If an appointed member is unable to complete the term, the Governor shall appoint a replacement for the remainder of the unexpired term.
Sec. 4. 35-A MRSA §10103, sub-§4, as amended by PL 2009, c. 655, Pt. B, §3, is further amended to read:
Sec. 5. 35-A MRSA §10103, sub-§4-A, ¶A, as enacted by PL 2009, c. 655, Pt. B, §4, is repealed and the following enacted in its place:
Sec. 6. 35-A MRSA §10104, sub-§1, as enacted by PL 2009, c. 372, Pt. B, §3, is amended to read:
Sec. 7. 35-A MRSA §10104, sub-§2, ¶B, as enacted by PL 2009, c. 372, Pt. B, §3, is amended to read:
Sec. 8. 35-A MRSA §10104, sub-§3, as enacted by PL 2009, c. 372, Pt. B, §3, is amended to read:
Sec. 9. 35-A MRSA §10104, sub-§4, as amended by PL 2011, c. 637, §3, is further amended to read:
(1) Transmission and distribution utilities and natural gas utilities shall furnish data to the trust that the trust requests under this subsection subject to such confidential treatment as a utility may request and the board determines appropriate pursuant to section 10106. The costs of providing the data are deemed reasonable and prudent expenses of the utilities and are recoverable in rates.
(1) Weatherizing 100% of residences and 50% of businesses by 2030;
(2) Reducing peak-load electric energy consumption by 100 megawatts by 2020;
(3) Reducing the State's consumption of liquid fossil fuels by at least 30% by 2030;
(4) By 2020, achieving electricity and natural gas savings of at least 30% and heating fuel savings of at least 20% as defined in and determined pursuant to the measures of performance ratified by the commission under section 10120;
(5) Capturing all cost-effective energy efficiency resources available for electric and natural gas utility ratepayers;
(6) Saving residential and commercial heating consumers not less than $3 for every $1 of program funds invested by 2020 in cost-effective heating and cooling measures that cost less than conventional energy supply;
(7) Building stable private sector jobs providing clean energy and energy efficiency products and services in the State by 2020; and
(8) Reducing greenhouse gas emissions from the heating and cooling of buildings in the State by amounts consistent with the State's goals established in Title 38, section 576.
The trust shall preserve when possible and appropriate the opportunity for carbon emission reductions to be monetized and sold into a voluntary carbon market. Any program of the trust that supports weatherization of buildings must be voluntary and may not constitute a mandate that would prevent the sale of emission reductions generated through weatherization measures into a voluntary carbon market.
As used in this paragraph, "heating fuel" means a fossil fuel used for the purposes of heating buildings or for domestic water heating, including liquefied petroleum gas, kerosene or #2 heating oil, but not including fuels when used for industrial or manufacturing processes, and "liquid fossil fuel" means any liquid fossil fuel or heating fuel used for a purpose other than for transportation.
(1) Reducing heating costs for residents of the State;
(2) Weatherizing, as defined by the trust, 100% of residences and 50% of businesses by 2030 and interim goals established by the trust;
(3) Reducing peak-load electric energy consumption by 100 megawatts by 2020;
(4) Reducing the State's consumption of liquid fossil fuels as a share of gross state product by at least 30% by 2030;
(5) By 2020, achieving electricity and natural gas savings as a share of gross state product of at least 30% and heating fuel savings as a share of gross state product of at least 20% as defined in and determined pursuant to the measures of performance ratified by the commission under section 10120;
(6) Capturing all cost-effective energy efficiency resources available for electric and natural gas utility ratepayers;
(7) Saving residential and commercial heating consumers not less than $3 for every $1 of program funds invested by 2020 in cost-effective heating and cooling measures that cost less than conventional energy supply;
(8) Building stable private sector jobs providing clean energy and energy efficiency products and services in the State by 2020; and
(9) Reducing greenhouse gas emissions from the heating and cooling of buildings in the State by amounts consistent with the State's goals established in Title 38, section 576.
The trust shall preserve when possible and appropriate the opportunity for carbon emission reductions to be monetized and sold into a voluntary carbon market. Any program of the trust that supports weatherization of buildings must be voluntary and may not constitute a mandate that would prevent the sale of emission reductions generated through weatherization measures into a voluntary carbon market.
As used in this paragraph, "heating fuel" means a fossil fuel used for the purposes of heating buildings or for domestic water heating, including liquefied petroleum gas, kerosene or #2 heating oil, but not including fuels when used for industrial or manufacturing processes, and "liquid fossil fuel" means any liquid fossil fuel or heating fuel used for a purpose other than for transportation.
Sec. 10. 35-A MRSA §10109, sub-§3, as enacted by PL 2009, c. 372, Pt. B, §3, is repealed.
Sec. 11. 35-A MRSA §10109, sub-§§3-A and 3-B are enacted to read:
Sec. 12. 35-A MRSA §10109, sub-§4, as amended by PL 2009, c. 565, §6 and affected by §9, is further amended to read:
(1) Reliably reduce greenhouse gas production by fossil fuel combustion in the State at the lowest cost in funds from the trust fund per unit of emissions; or
(2) Reliably reduce the consumption of electricity in the State at the lowest cost in funds from the trust fund per kilowatt-hour saved.
(1) Costs of the Department of Environmental Protection for participating in the regional organization as defined in Title 38, section 580-A, subsection 20 and for administering the allowance auction under Title 38, chapter 3-B; and
(2) Costs of the Attorney General for activities pertaining to the tracking and monitoring of allowance trading activity and managing and evaluating the trust's funding of conservation programs.
(1) Costs of the Department of Environmental Protection for participating in the regional organization as defined in Title 38, section 580-A, subsection 20 and for administering the allowance auction under Title 38, chapter 3-B. The department's projected costs must be forwarded from the trust fund at the beginning of each fiscal year and may include, among other costs, the administration and oversight of the State's participation in the carbon dioxide cap-and-trade program as authorized in Title 38, chapter 3-B; and.
(2) Costs of the Attorney General for activities pertaining to the tracking and monitoring of allowance trading activity and managing and evaluating the trust's funding of conservation programs.
Sec. 13. 35-A MRSA §10110, sub-§2, as amended by PL 2011, c. 637, §6, is further amended to read:
(1) Increase consumer awareness of cost-effective options for conserving affordable energy;
(2) Create more favorable market conditions for the increased use of energy-efficient products and services;
(3) Promote sustainable economic development and reduce environmental damage;
(4) Reduce the price of electricity over time for all consumers by achieving reductions in demand for electricity during peak use periods; and
(5) Reduce total energy costs for electricity consumers in the State by increasing the efficiency with which electricity is consumed.
(1) Target at least 20% of funds to programs for low-income residential consumers, as defined by the board by rule;
(2) Target at least 20% of funds to programs for small business consumers, as defined by the board by rule; and
(3) To the greatest extent practicable, apportion remaining funds among customer groups and geographic areas in a manner that allows all other customers to have a reasonable opportunity to participate in one or more conservation programs.
(1) Contracting with appropriate entities with relevant expertise and experience;
(2) Establishing one or more advisory groups composed of persons with relevant expertise and experience; or
(3) Any other reasonable means developed by the trust.
Sec. 14. 35-A MRSA §10110, sub-§4, as enacted by PL 2009, c. 372, Pt. B, §3, is amended to read:
Sec. 15. 35-A MRSA §10110, sub-§5, as amended by PL 2009, c. 518, §10, is further amended to read:
For the purposes of this subsection, "gross operating revenue" means revenue derived from filed rates, except from sales for resale. The commission may correct any errors in the assessments under this subsection by means of a credit or debit to the following year's assessment rather than reassessing all utilities in the current year. The commission shall may determine the assessments under this subsection annually prior to June 1st and assess each utility for its pro rata share for expenditure, including funds for energy and energy conservation programs, during the fiscal year beginning July 1st. The commission may not increase any assessment under this subsection until the Legislature has approved the Efficiency Maine Trust's budget. Following the commission's approval of the triennial plan pursuant to section 10104, subsection 4 or any update plan pursuant to section 10104, subsection 6, the commission shall may present any recommended increase in the assessment under this subsection to the joint standing committee of the Legislature having jurisdiction over public utilities matters. An increase in an assessment under this subsection after December 31, 2013 may not be collected until the Legislature has approved the Efficiency Maine Trust's budget, including specifically any increase in assessment proposed by the commission under this subsection. Each utility shall pay the assessment charged to that utility under this subsection on the same schedule that payment of assessments under subsection 4 is required.
Sec. 16. 35-A MRSA §10110, sub-§6, as enacted by PL 2009, c. 372, Pt. B, §3, is repealed.
Sec. 17. 35-A MRSA §10110, sub-§6-A is enacted to read:
Sec. 18. 35-A MRSA §10110, sub-§7, as enacted by PL 2009, c. 372, Pt. B, §3, is amended to read:
Sec. 19. 35-A MRSA §10120, sub-§1, as enacted by PL 2009, c. 372, Pt. B, §3, is amended to read:
Sec. 20. 38 MRSA §579, first ¶, as amended by PL 2007, c. 608, §3, is further amended to read:
The department may participate in the regional greenhouse gas initiative as described in the climate action plan required in section 577. The commissioner or the commissioner's designee and the members chair of the Public Utilities Commission or the chair's designee are authorized to act as representatives for the State in the regional organization as defined in section 580-A, subsection 20, may contract with organizations and entities when such arrangements are necessary to efficiently carry out the purposes of this section and may coordinate the State's efforts with other states and jurisdictions participating in that initiative, with respect to:
Sec. 21. 38 MRSA §580-A, sub-§9-A is enacted to read:
Sec. 22. 38 MRSA §580-B, sub-§3, as enacted by PL 2007, c. 317, §17, is amended to read:
Sec. 23. 38 MRSA §580-B, sub-§4, ¶A-1 is enacted to read:
Sec. 24. 38 MRSA §580-B, sub-§4, ¶F, as enacted by PL 2007, c. 317, §17, is amended to read:
(1) Ensure close monitoring of allowance transactions in a manner that guards against collusion and market manipulation;
(2) Ensure ongoing authentic price discovery and minimize price volatility;
(3) Facilitate open participation for bidding to all individuals or entities that meet the financial requirements jointly adopted by the participating states;
(4) Minimize administration and transaction costs and provide for an open and transparent user-friendly system;
(5) Provide that ongoing monitoring of market activity is undertaken by entities that have complete financial independence from any market participant;
(6) For purposes of civil and criminal enforcement authority under section 349, establish a contract term at the time an allowance is purchased at the regional auction for violations of market rules jointly adopted by the participating states and jurisdictions or through another method of ensuring state jurisdiction; and
(7) Guarantee that the Attorney General, the Public Utilities Commission and the commissioner have access to all auction information and information concerning allowance trading activity, including reports provided to the regional organization by a market monitor.
Sec. 25. 38 MRSA §580-B, sub-§10-A is enacted to read:
Sec. 26. Report. By December 31, 2014 the Commissioner of Environmental Protection, in consultation with the director of the Governor's Energy Office, shall submit to the joint standing committee of the Legislature having jurisdiction over energy, utilities and technology matters and the joint standing committee of the Legislature having jurisdiction over environment and natural resources matters a report on the effectiveness of the Maine Revised Statutes, Title 38, section 580-B and including recommendations for improvements.
Sec. 27. Effective date. This Act takes effect December 31, 2013.
summary
This bill amends the Efficiency Maine Trust laws by including energy cost reduction as a central mission of the trust. Specifically, it allows all energy sources to be eligible for funding to lower the cost of energy for Maine residents. In addition, the bill reduces electricity rates for industrial consumers by redirecting cap-and-trade auction revenue to reduce electricity rates. The bill provides additional flexibility for funding through an assessment that addresses all energy challenges in the State. Finally, the bill amends the regional greenhouse gas initiative laws and makes modifications to the structure of the Efficiency Maine Trust Board.