HP0651, LD 927, item 1, An Act To Further Energy Independence for the State

An Act To Further Energy Independence for the State

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 2 MRSA §9, sub-§3, ¶C, as amended by PL 2011, c. 400, §1, is repealed.

Sec. 2. 2 MRSA §9, sub-§3, ¶C-1, as enacted by PL 2009, c. 372, Pt. H, §2, is amended to read:

C-1. By February 1st of each year, prepare and submit to the joint standing committee of the Legislature having jurisdiction over utilities and energy matters an annual report that describes the activities of the office during the previous calendar year in carrying out its duties under this subsection and describes the State's progress in implementation of the state energy plan prepared pursuant to paragraph C C-2. After receipt and review of the annual report required under this paragraph, the joint standing committee of the Legislature having jurisdiction over utilities and energy matters may submit legislation relating to energy policy;

Sec. 3. 2 MRSA §9, sub-§3, ¶C-2 is enacted to read:

C-2. In consultation with the Efficiency Maine Trust Board, established in Title 5, section 12004-G, subsection 10-C, prepare and submit a comprehensive state energy plan to the joint standing committee of the Legislature having jurisdiction over energy matters and the joint standing committee of the Legislature having jurisdiction over natural resources matters by March 1, 2014 and submit an updated plan every 2 years thereafter. Within the comprehensive state energy plan, the director shall:

(1) Facilitate the development and integration of new renewable energy generation within the State and support the State's renewable resource portfolio requirements specified in Title 35-A, section 3210 and wind energy development goals specified in Title 35-A, section 3404 to increase renewable energy generation by 20% from 2012 levels by 2020;

(2) Specify the State's progress in meeting the fossil fuel reduction targets in subsection 5 and make recommendations, if needed, for additional legislative and administrative actions to ensure that the State can meet the reduction targets in subsection 5. The recommendations must include a cost and resource estimate for technology development needed to meet the reduction targets;

(3) Address the association between energy planning and meeting the greenhouse gas reduction goals in the state climate action plan pursuant to Title 38, section 577 by consulting with the Department of Environmental Protection to include initiatives to reduce greenhouse gas emissions in the comprehensive state energy plan; and

(4) Identify policy actions needed to facilitate an increase in energy efficiency in this State by 20% from 2012 levels by 2020.

The joint standing committee of the Legislature having jurisdiction over energy matters may report out legislation by February 1st of each odd numbered year relating to the content of the plan. The joint standing committee of the Legislature having jurisdiction over natural resources matters may make recommendations regarding that legislation to the joint standing committee of the Legislature having jurisdiction over energy matters.

Sec. 4. 2 MRSA §9, sub-§3, ¶J, as amended by PL 2011, c. 55, §2, is further amended to read:

J. Take action as necessary to carry out the goals and objectives of the state energy plan prepared pursuant to paragraph C C-2 including lowering the total cost of energy to consumers in this State.

Sec. 5. 2 MRSA §9, sub-§5, as enacted by PL 2011, c. 400, §2, is amended to read:

5. Fossil fuels reduction plan. The office, with input from stakeholders and in consultation with the Efficiency Maine Trust, shall develop a plan to reduce the use of fossil fuels, with a primary focus on reducing oil consumption in all sectors of the economy in this State. The plan must:

A. Be designed to achieve the targets of reducing the State's consumption of fossil fuels, with a primary focus on reducing oil consumption by at least 30% 20% from 2007 2012 levels by 2030 2020 and by at least 50% from 2007 levels by 2050;

B. Focus on near-term policies and infrastructure changes that set the State on a reasonable trajectory to meet the 2030 2020 and 2050 targets in paragraph A;

C. Prioritize the improvement of energy efficiency and the transition to the use of alternative energy sources for heating and transportation; and

D. Draw on existing state data and studies rather than new analyses, including, but not limited to, analyses and data from the State's climate action plan pursuant to Title 38, section 577 and the progress updates to the climate action plan under Title 38, section 578, the comprehensive state energy plan pursuant to subsection 3, paragraph C C-2, the Efficiency Maine Trust's triennial plan pursuant to Title 35-A, section 10104, subsection 4 and analyses completed by the Federal Government, nonprofit organizations and other stakeholders.

Sec. 6. 2 MRSA §9, sub-§6, ¶A, as enacted by PL 2011, c. 655, Pt. MM, §4 and affected by §26, is amended to read:

A. The director shall include, in the comprehensive state energy plan under subsection 3, paragraph C C-2, a report that specifies, in regard to the program, the expenditure of program funds, the purposes for which the funds were used and the amount of the funds and the sources from which the funds were derived.

Sec. 7. 35-A MRSA §10104, sub-§4, as amended by PL 2011, c. 637, §3, is further amended to read:

4. Triennial plan. The board shall vote on a detailed, triennial, energy efficiency, alternative energy resources and conservation plan that includes the quantifiable measures of performance developed under subsection 3 and make a full report of the vote to the commission in accordance with this subsection. The triennial plan must provide integrated planning, program design and implementation strategies for all energy efficiency, alternative energy resources and conservation programs administered by the trust, including but not limited to the electric efficiency and conservation programs under section 10110, the natural gas efficiency and conservation programs under section 10111, the Regional Greenhouse Gas Initiative Trust Fund under section 10109, the Heating Fuels Efficiency and Weatherization Fund under section 10119 and any state or federal funds or publicly directed funds accepted by or allocated to the trust for the purposes of this chapter. The triennial plan must include provisions for the application of appropriate program funds to support workforce development efforts that are consistent with and promote the purposes of the trust. Beginning January 1, 2011, the triennial plan must specify the appropriate participation of the State in national and regional carbon markets. The plan must be consistent with the comprehensive state energy plan pursuant to Title 2, section 9, subsection 3, paragraph C C-2.

A. The triennial plan must be developed by the trust, in consultation with entities and agencies engaged in delivering efficiency programs in the State, to authorize and govern or coordinate implementation of energy efficiency and weatherization programs in the State.

(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.

B. In developing the triennial plan, the staff of the trust shall consult the board and provide the opportunity for the board to provide input on drafts of the plan.

B-1. In developing the triennial plan, the trust shall provide the joint standing committee of the Legislature having jurisdiction over energy matters an opportunity to provide input on the plan, which may occur at the same time the trust consults with other entities in the development of the plan.

C. The board shall review and approve the triennial plan by affirmative vote of 2/3 of the trustees upon a finding that the plan is consistent with the statutory authority for each source of funds that will be used to implement the plan, the state energy efficiency targets in paragraph F and the best practices of program administration under subsection 2. The plan must include, but is not limited to, efficiency and conservation program budget allocations, objectives, targets, measures of performance, program designs, program implementation strategies, timelines and other relevant information.

D. Prior to submission of the triennial plan to the commission, the trust shall offer to provide a detailed briefing on the draft plan to the joint standing committee of the Legislature having jurisdiction over energy matters and, at the request of the committee, shall provide such a briefing and opportunity for input from the committee. After providing such opportunity for input and making any changes as a result of any input received, the board shall deliver the plan to the commission for its review and approval. The commission shall open a proceeding and issue an order either approving the plan or rejecting the plan and stating the reasons for the rejection. The commission shall reject elements of the plan that propose to use funds generated pursuant to sections 3210-C, 10110, 10111 or 10119 if the plan fails to reasonably explain how these elements of the program would achieve the objectives and implementation requirements of the programs established under those sections or the measures of performance under subsection 3. Funds generated under these statutory authorities may not be used pursuant to the triennial plan unless those elements of the plan proposing to use the funds have been approved by the commission. The commission shall approve or reject any elements of the triennial plan within 60 days of its delivery to the commission. The board, within 15 days of final commission approval of its plan, shall submit the plan to the joint standing committee of the Legislature having jurisdiction over energy matters together with any explanatory or other supporting material as the committee may request and, at the request of the committee, shall provide a detailed briefing on the final plan. After receipt of the plan, the joint standing committee of the Legislature having jurisdiction over energy matters may submit legislation relating to the plan.

E. The trust shall determine the period to be covered by the triennial plan except that the period of the plan may not interfere with the delivery of any existing contracts to provide energy efficiency services that were previously procured pursuant to efficiency and conservation programs administered by the commission.

F. It is an objective of the triennial plan to design, coordinate and integrate sustained energy efficiency and weatherization programs that are available to all energy consumers in the State, regardless of fuel type, that advance the targets of:

(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.

Sec. 8. 38 MRSA §575, sub-§1, as enacted by PL 2003, c. 237, §1, is amended to read:

1. Greenhouse gas emissions inventory for state-owned facilities and state-funded programs. Create an inventory of greenhouse gas emissions associated with state-owned facilities and state-funded programs and create a plan for reducing those emissions to below 1990 2010 levels by 2010 2020;

Sec. 9. 38 MRSA §576, sub-§2, as enacted by PL 2003, c. 237, §1, is amended to read:

2. Reduction by 2020. In the medium term, reduction to 10% 20% below 1990 2010 levels by January 1, 2020; and

Sec. 10. 38 MRSA §577, as enacted by PL 2003, c. 237, §1, is amended to read:

§ 577. Climate action plan

By July 1, 2004 March 1, 2014, the department, with input from stakeholders including the Governor's Energy Office established in Title 2, section 9 and the Efficiency Maine Trust established in Title 35-A, section 10103, shall adopt a state climate action plan to meet the reduction goals specified in section 576. The action plan must address reduction in each sector in cost-effective ways and must allow sustainably managed forestry, agricultural and other natural resource activities to be used to sequester greenhouse gas emissions. The department shall submit the action plan to the joint standing committee of the Legislature having jurisdiction over natural resources matters and the joint standing committee of the Legislature having jurisdiction over energy matters.

Sec. 11. 38 MRSA §578, as amended by PL 2005, c. 144, §1, is further amended to read:

§ 578. Progress evaluation

By January 1, 2006 2016 and by that date every 2 years thereafter, the department shall evaluate the State's progress toward meeting the reduction goals specified in section 576, review the cost-effectiveness of the actions taken toward meeting the reduction goals and shall amend the action plan as necessary to ensure that the State can meet the reduction goals. The department shall submit a report of its evaluation to the joint standing committee of the Legislature having jurisdiction over natural resources matters and the joint standing committee of the Legislature having jurisdiction over energy matters by January 1, 2006 2016 and by that date every 2 years thereafter. The joint standing committee of the Legislature having jurisdiction over natural resources matters is authorized to report out legislation relating to the evaluation to the second regular session of any Legislature. The joint standing committee of the Legislature having jurisdiction over energy matters may make recommendations to the joint standing committee of the Legislature having jurisdiction over natural resources matters regarding that legislation. Starting no earlier than January 1, 2008 2018, the department may recommend to the joint standing committee of the Legislature having jurisdiction over natural resources matters that the reduction goals specified in section 576 be increased or decreased.

Sec. 12. 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 under chapter 3-B. The commissioner and the members of the Public Utilities Commission 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:

summary

This bill requires a new comprehensive state energy plan to be drafted by the Governor's Energy Office and a new climate action plan to be drafted by the Department of Environmental Protection. This bill establishes new fossil fuel reduction, energy efficiency and renewable energy goals. This bill encourages, and in some cases requires, consultation between the Governor's Energy Office, the Efficiency Maine Trust, the Department of Environmental Protection, the joint standing committee of the Legislature having jurisdiction over natural resources matters and the joint standing committee of the Legislature having jurisdiction over energy matters in the drafting of the plans or reporting out of legislation in response to the plans.

HP0651 LD 927	Session - 126th Maine Legislature		LR 960 Item 1
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