An Act To Save Money for Maine Energy Consumers through Enhanced Energy Efficiency
Sec. 1. 35-A MRSA §3153-A, sub-§4 is enacted to read:
Sec. 2. 35-A MRSA §3195, sub-§1, as amended by PL 1999, c. 398, Pt. A, §71 and as affected by §§104 and 105, is further amended to read:
Sec. 3. 35-A MRSA §3210-D, first ¶, as enacted by PL 2005, c. 677, Pt. C, §1, is amended to read:
The commission shall adopt by rule a long-term plan for electric resource adequacy for this State to ensure grid reliability and the provision or availability of electricity to consumers at the lowest cost. To help reduce energy costs of consumers in this State by the maximum amount possible, the commission shall hold an uncontested docket in which interested parties may submit comments and shall establish by separate order efficiency investment strategies, consistent with the long-term plan and not otherwise directly allocable, by which to realize through distribution rates all available energy efficiency and demand reduction resources that are cost-effective, reliable and feasible in this State. Investments directed pursuant to this section may be deposited in the conservation program fund established under section 3211-A, subsection 5.
Sec. 4. 35-A MRSA §3211-A, sub-§2, ¶A, as amended by PL 2005, c. 569, §1, is further amended to read:
(1) Increase consumer awareness of cost-effective options for conserving energy;
(2) Create more favorable market conditions for the increased use of efficient products and services;
(3) Promote sustainable economic development and reduced environmental damage; and
(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 costs paid by electricity consumers in this State by increasing the efficiency with which electricity is consumed in this State.
Sec. 5. 35-A MRSA §3211-A, sub-§2, ¶B, as enacted by PL 2001, c. 624, §4, is amended to read:
(1) Target at least 20% of available funds to programs for low-income residential consumers, as defined by the commission by rule;
(2) Target at least 20% of available funds to programs for small business consumers, as defined by the commission by rule; and
(3) To the greatest extent practicable, apportion remaining available funds assessed under this section among customer groups and geographic areas in a manner that allows each customer group to receive funding approximately proportionate to its contribution to total assessments under this section and allows all other customers to have a reasonable opportunity to participate in one or more conservation programs.
Sec. 6. 35-A MRSA §3211-A, sub-§2, ¶C, as enacted by PL 2001, c. 624, §4, is repealed and the following enacted in its place:
(1) Provide the overall energy strategy for all energy efficiency and conservation programs in this State funded by or through, but not limited to:
(a) The minimum conservation program assessment in section 3211-A, subsection 4;
(b) Any proceeds from allowances of a regional greenhouse gas initiative, or a similar regulatory system, that generates proceeds from the sale of emissions allowances;
(c) Payments from the regional forward capacity markets;
(d) Natural gas, home heating oil or other home heating fuel assessments, taxes, fees or contributions;
(e) Contracts for energy efficiency used to satisfy standard offer service;
(f) Long-term contracting of demand-side capacity resources;
(g) State and federally funded weatherization programs; and
(h) Any rate-based investments directed by the commission to realize cost-effective energy efficiency and demand reduction;
(2) Be updated at least once every 3 years. Each program contained in the comprehensive energy savings plan must be voted on by the Energy Efficiency Stakeholder Board prior to submission to the commission for approval. Approval of the plan and other decisions by the board requires an affirmative vote of at least 60% of the members of the board. The Energy Efficiency Stakeholder Board shall, as part of its review, examine opportunities to offer joint programs providing similar efficiency measures that save more than one fuel resource or otherwise to coordinate programs targeted at saving more than one fuel resource. Any costs for joint programs must be allocated equitably among the energy efficiency and conservation programs; and
(3) Be approved by the commission.
Sec. 7. 35-A MRSA §3211-A, sub-§2, ¶F, as enacted by PL 2001, c. 624, §4, is amended to read:
Strategies and programs included in the comprehensive energy savings plan must be screened through cost-effectiveness testing that compares the value and payback period of program benefits to program costs to ensure that programs are designed to obtain energy savings and system benefits the value of which is greater than the costs of the programs. Cost-effectiveness for each strategy or program must be reviewed annually, or otherwise as is practicable, and if a strategy or program fails the cost-effectiveness test as part of the review process, it must either be modified to pass the test or be terminated.
Sec. 8. 35-A MRSA §3211-A, sub-§2, ¶H, as enacted by PL 2001, c. 624, §4, is amended to read:
(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 No later than October 1, 2007, establishing, appointing and convening the Energy Efficiency Stakeholder Board, which must include one representative of each of the following:
(a) A statewide manufacturing association;
(b) A statewide business association;
(c) A chamber of commerce;
(d) Residential customers;
(e) Low-income customers;
(f) An environmental advocacy organization;
(g) An environmental organization knowledgeable in energy efficiency and energy procurement programs;
(h) The Office of the Public Advocate;
(i) The Department of Environmental Protection; and
(j) The Attorney General.
Each board member must have some relevant background or experience in energy technologies, markets or policy. The commission and each of the electric and natural gas distribution companies operating in this State are entitled to have a nonvoting, ex officio member on the board. Representatives serve for a term of 4 years and may be reappointed. Expenditures by the Energy Efficiency Stakeholder Board for the retention of expert consultants and reasonable administrative costs must be recovered in distribution rates and from other sources. Such consultants may not be employed by or have any contractual relationship with an electric or natural gas distribution company. Such costs may not exceed 5% of the total costs of energy efficiency and conservation plans. Costs of independent expert services must be provided for in the comprehensive energy savings plan; or
(3) Any By any other reasonable means developed by the commission.
Sec. 9. 35-A MRSA §3211-A, sub-§4, as amended by PL 2005, c. 459, §1, is further amended to read:
summary
This bill directs the Public Utilities Commission to establish the Energy Efficiency Stakeholder Board to advise and assist the commission, other agencies, utilities and publicly directed energy efficiency program administrators in the design, implementation and review of a comprehensive energy savings plan to implement cost-effective energy conservation programs and market transformation initiatives. The bill sets an assessment rate on transmission and distribution utilities to fund conservation programs and specifies the method of apportionment of funds collected for conservation programs among groups of customers. The bill amends the laws governing rate-adjustment mechanisms for transmission and distribution utilities as they relate to utility sales and earnings.