Sec. 1. 35-A MRSA §3211-A, sub-§1, ¶F, as enacted by PL 2001, c. 624, §4, is amended to read:

F. "Program fund" means the conservation program and solar incentive fund established by the commission pursuant to subsection 5.

Sec. 2. 35-A MRSA §3211-A, sub-§1, ¶I is enacted to read:

I.__"Qualified solar energy system" means:

(1)__A solar photovoltaic system.__For purposes of this subparagraph, "solar photovoltaic system" means a solar energy device with a peak generating capacity of 100 kilowatts or less used for generating electricity for use in a residence or place of business; or

(2)__A solar thermal system.__For purposes of this subparagraph, "solar thermal system" means a configuration of solar collectors and a pump, heat exchanger and storage tank or fans designed to heat water or air.__Solar thermal system types include forced circulation, integral collector storage, thermosyphon and self-pumping systems.

Sec. 3. 35-A MRSA §3211-A, sub-§4, as amended by PL 2003, c. 217, §1 and c. 275, §1, is further amended to read:

4. Funding level. The commission shall assess transmission and distribution utilities to collect funds for conservation programs, the solar energy rebate program established in subsection 5-B and administrative costs in accordance with this subsection. The amount of all assessments by the commission under this subsection plus expenditures of a transmission and distribution utility associated with prior conservation efforts must result in total conservation expenditures by each transmission and distribution utility that:

A. Are based on the relevant characteristics of the transmission and distribution utility's service territory, including the needs of customers;

B. Do not exceed .15 cent per kilowatt-hour;

C. Except as provided in subsection 7-A, are no less than 0.5% of the total transmission and distribution revenues of the transmission and distribution utility; and