Maine

Much of the information presented in this summary is drawn from the U.S. Department of Energy’s (DOE) Building Energy Codes Program and the Building Codes Assistance Project (BCAP). For more detailed information about building energy codes, visit the DOE and BCAP websites.

The Energy Efficiency Building Performance Standards (EEBPS) are statewide minimum requirements that all new construction and additions to existing buildings must satisfy. Exceptions include single-family homes built by an owner-builder (which includes anyone supervising the construction of that person's single-family dwelling or a general contractor hired to supervise the construction) and log homes. The commercial requirements apply to all new commercial and institutional construction. Manufacturing facilities are exempt.

Legislation enacted in April 2008 (H.B. 1619) established the Technical Building Codes and Standards Board and required the board to adopt the Maine Uniform Building and Energy Code, a new energy code for buildings, setting the 2009 versions of the IECC, IBC, IRC, IEBC and ASHRAE 90.1 as the mandatory building code standards for residential and commercial buildings statewide. Beginning December 1, 2010, the code is enforced in cities and towns that have more than 2,000 residents and that have adopted any building code by August 1, 2008. Beginning July 1, 2012, the code will be enforced in cities or towns that have more than 2,000 residents and that have not adopted a building code by August 1, 2008. Effective July 1, 2010, the Maine Uniform Building and Energy Code replaces the state's model energy code.

In June 2009, Maine enacted the Act Regarding Maine's Energy Future, which established the Efficiency Maine Trust. As a part of this Act, the Trust is responsible for creating a plan to reach the following energy efficiency targets:

• 100 MW reduction in peak-load electricity consumption by 2020
• 30% reduction in electricity and natural gas consumption
• 20% reduction in heating fuel consumption
• Weatherization of 100% of homes and 50% of businesses by 2030
• Capturing all cost-effective efficiency resources available for utility customers

In pursuance of these goals, the Trust must develop triennial plans describing a three-year plan, programs, and implementation strategies for reaching these goals, as well as other energy efficiency and renewable energy goals. The triennial plans must be approved by the Maine Public Utilities Commission, and will be reanalyzed annually through Docket 2010-116. The first triennial plan was approved by the Commission in July 2010, and will expire in June 2013. The overall goals and the programs are directed at consumers rather than utilities. Reviews to the plan were approved in February 2011, and again in January 2012. The plan includes a goal of saving more than 3.3 trillion BTUs of energy annually by Fiscal Year 2013. Efficiency Maine has made the draft fiscal year 2014-2016 triennial plan available. Efficiency Maine also publishes an annual report on its activities; Fiscal Year 2011 Efficiency Maine Annual Report was published in December 2011.

Maine requires that construction or renovation of state buildings must incorporate "green building" standards that would achieve "significant" energy efficiency and environmental sustainability, provided that the costs of doing so are cost-effective over the life of the building.  The order directs all branches of state government to cooperate with the Maine Department of Administrative and Financial Services (Bureau of General Services) in supplying the department with the necessary resources, information and other assistance to meet these requirements. School administrative districts and municipalities are not required to comply with these standards under this order. 

It is interesting to note that Maine originally designated Leadership in Energy and Environmental Design (LEED) standards be incorporated into the design, construction, operation and maintenance of new/renovated state buildings in November 2003 (via Exec order 8 FY04/05). The current policy no longer requires LEED.

Maine Statutes Title 5, Section 1764-A also requires all planning and design for the construction of new or substantially renovated buildings owned or leased by the state include: (1) the consideration of energy efficiency, (2) an energy-use target that exceeds standards for commercial and institutional buildings by at least 20%, and (3) a life-cycle cost analysis over a minimum of 30 years that explicitly addresses the costs and benefits of efficiency improvements.

In addition, on March 17, 2005, the governor of Maine announced that the state would join the federal "Energy Star Challenge." As part of this partnership, the state is committed to encouraging building owners and operators throughout Maine to improve energy efficiency by 10% or more using performance contracting and other mechanisms. The state will also measure and track energy use and greenhouse-gas emissions from government buildings and identify the best ways to improve energy efficiency in those buildings.

Act 372 called "An Act Regarding Maine's Energy Future" passed in June 2009, created the Task Force to Advance Energy Efficiency, Conservation, and Independence at State Facilities. The Task Force issued its recommendations in January 2010 (available on Maine's Bureau of General Services website).
 

Maine's 1997 restructuring legislation directed the state Public Utility Commission (PUC) to establish environmental disclosure rules for retail electric billing. The PUC rules require utilities to disclose to residential and small commercial customers details regarding the fuel mix and emissions of electric generation. Such information must be provided to customers at least once annually in the form of a standard label and upon request. In addition, competitive electricity providers must refer to the disclosure label in all written marketing materials promoting available generation service.

In 2003, Maine's governor established a goal for the state government to buy at least 50% of its electricity from "reasonably priced" renewable-power sources, paid for by energy conservation improvements in all state buildings. The goal was contained in the governor's "Vision" for meeting Maine's environmental needs. As of March 2007, Maine's state government was purchasing 100% of its power from renewable energy resources. The state's existing renewable energy portfolio standard accounts for 30% of this total. For the remaining 70%, the state is purchasing renewable-energy credits (RECs) from the Rumford Falls hydropower project in Rumford, Maine.

Furthermore, legislation passed in 2009 (LD 1075) requires that all electricity used in state-owned buildings must come from renewable energy and that state agencies may give preference to community-based generated renewable energy.

The Maine Public Utility Commission (PUC) adopted interconnection procedures in January 2010. These rules apply to all transmission and distribution utilities operating in the state.

The Interstate Renewable Energy Council (IREC) 2006 Model Interconnection Procedures* provided the basis for these regulations. The interconnection procedures set four tiers of review for interconnection requests for all eligible technologies and systems subject to Maine PUC jurisdiction. The four tiers, with required technical screens, are:

• Level 1: Small certified generating, inverter-based facilities 10 kilowatts (kW) or less;
• Level 2: Certified facilities 2 megawatts (MW) or less;
• Level 3: Non-exporting, certified facilities 10 MW or less;
• Level 4: Any generating facility that does not qualify for the aforementioned levels of review, and are not subject to jurisdiction of the Federal Energy Regulatory Commission (FERC).

Fees for interconnection requests increase with each Level. A Level 1 request must submit $50 fee; a Level 2 request must submit a fee of $50 plus $1/kW of generator capacity; a Level 3 request must submit $100 plus $1.50/kW of generator capacity; a Level 4 request must submit an application fee not to exceed $100 plus $2.00/kW. In addition, Level 4 applicants are responsible for fees associated with the interconnection study as well as any utility upgrades required to accommodate the requested interconnection.

The PUC specifies that IEEE Standard 1547 (“Standard for Interconnecting Distributed Resources with Electrical Power Systems”) or IEEE Standard 929 (for inverters less than 10 kW) and the standard UL 1741 for inverters, converters, and controllers as the technical standards of evaluation. Systems are considered to be certified for interconnection operation if the components have been tested and listed by a Nationally Recognized Testing Laboratory (NRTL) and if they meet the definition of certification under the FERC Order 2006 for Small Generator Interconnection Procedures, according to these standards. Additional controls (such as external disconnect switches) are not permitted when facilities use certified equipment.

Depending on the size of the small generator facility, insurance requirements differ. As in IREC's 2009 Model Interconnection Procedures, no insurance is required for inverter-based facilities with rated capacity 1 MW or less. Inverter-based facilities with rated capacity exceeding 1 MW but less than or equal to 5 MW must carry liability insurance with coverage of at least $1 million. Facilities with rated capacity greater than 5 MW must carry liability insurance with coverage of at least $2 million. Insurance coverage for non-inverter-based generating facilities ranges from no insurance (50 kW or less) to $3 million (for facilities greater than 5 MW).


* IREC updated its model interconnection procedures in 2009. The 2009 model is available on IREC's website.

The information provided here covers several important classification criteria and provides a summary of the procedures. Consult the actual rule for official definitions, additional restrictions, and comprehensive information on the technical screens.

Legislation enacted in 2009 directed the Maine Public Utilities Commission (PUC) to develop a program offering green power as an option to residential and small commercial customers in the state. The PUC issued rules in October 2010 and issued an RFP. The PUC selected a company, 3 Degrees, to manage the statewide green power program for Maine's transmission and distribution territories. The program includes community-based renewable energy projects (to the extent possible).  The green power program launched in April 2012.

In June 2011, Gov. Paul LePage signed legislation requiring the Maine Public Utilities Commission to amend the net energy rules to develop contract terms for net energy billing and interconnection agreements. Furthermore, the bill allows the PUC to amend net energy billing rules following "routine technical rules." This will enable the PUC to amend net energy billing without having to send the amendments to the legislature for approval.  The final rules implementing the changes were adopted in January 2012. See Docket 2011-398 for additional details and the order.

All of Maine's electric utilities -- investor-owned utilities (IOUs), consumer-owned utilities (COUs, which include municipal utilities and electric cooperatives) -- must offer net energy billing (net metering) for individual customers. Furthermore IOUs are required to offer net metering for shared ownership customers, while COUs may offer net metering to shared ownership customers at their discretion. "Shared ownership" allows for community net metering, where several people invest in an eligible system and are therefore allowed to benefit (see below for more information). IOUs are required to offer net metering to eligible facilities with capacity limits up to 660 kilowatts (kW). COUs are required to offer net metering to customer-generators up to 100 kW, but, they are authorized to offer net metering to eligible facilities with capacity limits up to 660 kW at their discretion.

Net metering is available to owners of eligible, qualified facilities, including facilities generating electricity using fuel cells, tidal power, solar, wind, geothermal, hydroelectric, biomass, generators fueled by municipal solid waste in conjunction with recycling, and eligible combined heat and power (CHP) systems. It should be noted that the CHP systems must meet efficiency requirements in order to qualify for net metering: micro-CHP 30 kW and below must achieve combined electrical and thermal efficiency of 80% or greater, and micro-CHP 31 kW to 660 kW must achieve combined efficiency of 65% or greater.

Net excess generation (NEG) is credited to the following month for up to 12 months; after the end of a 12-month period, any remaining NEG is granted to the utility with no compensation for the customer. At its own expense, a utility may install additional meters to record purchases and sales separately. There is no limit on the aggregate amount of electricity generated by net-metered customers. However, a utility must notify the PUC if the cumulative capacity of net-metered facilities reaches 1.0% of the utility's peak demand.

Shared ownership customers must maintain ownership interest in an eligible facility. These customers share the responsibilities of costs of the facility (initial and maintenance) and resulting proportional benefits. Up to 10 meters can be net metered against a single eligible facility. The shared ownership customers must designate one contact person to serve as the liaison between the owners and utility.

History

Net metering has been available in Maine from 1987 to 1998 for owners of qualified combined heat and power (CHP) systems and from 1987 until April 30, 2009 for owners of other small power-production facilities with a maximum capacity of 100 kilowatts (kW). When Maine's legislature enacted restructuring legislation that provided for retail competition beginning March 1, 2000, the Maine Public Utilities Commission (PUC) amended the state's net-metering rules to make the rules consistent with changes to structure of the electric industry. The rules were modified to address issues related to existing contracts that extend beyond March 1, 2000.

However, in addressing net-metering arrangements that took effect after the onset of retail access, the PUC decided that new rules would be more appropriate than the regulations already in place for cogeneration and small power-production facilities. Thus, the PUC issued new net-metering rules that apply to the resources and technologies defined in the state's restructuring legislation: fuel cells, tidal power, solar, wind, geothermal, hydroelectric, biomass, and generators fueled by municipal solid waste in conjunction with recycling. CHP was not eligible at that time. It was also clarified that net energy billing was exempt from sales or use tax with respect to the sale or delivery of kilowatt hours of electricity to net energy billing customers as defined by the Public Utilities Commission for which no money is paid to the electricity provider or to the transmission and distribution utility (see MRSA Title 36, §1760, sub-§80).

The PUC issued an order amending net metering early 2009 in order to allow shared ownership, subject to legislative approval. In April 2009, Gov. John Baldacci signed LD 336, authorizing the final adoption of the rule, further amending it to include high efficiency micro-combined heat and power systems as eligible to net meter and to participate in the new shared ownership net metering opportunities and increasing the capacity limit from 500 kW (as in the proposed rules) to 660 kW.

In April 2012, legislation was enacted to increase legislative oversight of the Efficiency Maine Trust (Public Law 637). That legislation becomes effective in July, when this entry will be updated accordingly.

Maine's public benefits fund for energy efficiency was authorized originally in 1997 by the state's electric-industry restructuring legislation. Under the initial arrangement, the administration of certain efficiency programs was divided among the State Planning Office (SPO), the state's electric utilities and the Maine Public Utilities Commission (PUC). However, general dissatisfaction by the Maine Legislature (and many other stakeholders) with the administration of the fund prompted revisions in 2002. As a result of the 2002 legislative amendments, the authority to develop energy-efficiency programs was effectively transferred from the SPO to the PUC, and the authority to implement these programs was transferred from the state's electric utilities to the PUC. Most recently, the Act Regarding Maine's Energy Future (Public Law 372, June 2009) established a new entity, the Efficiency Maine Trust, which became responsible for Maine's energy efficiency and renewable energy programs. All of the funds in Efficiency Maine were transferred to Efficiency Maine Trust July 1, 2010.*

By statute, at least 20% of funds must support energy programs for low-income residents, and at least 20% of funds must support energy programs for small business customers. The PUC assesses utilities to collect funds for energy programs and administrative costs. The fixed amount of the assessment is 0.145 cents per kilowatt-hour (1.45 mills/kWh).

There is no expiration date for the fund. In general, Efficiency Maine supports improvements in lighting efficiency, reductions in peak demand, high-performance buildings, appliance replacements for low-income residents, energy training and certification, and public education.  The fund collected approximately $12.4 million in FY2010 and approximately $12.9 million in FY2011 from assessments on the utilities. In addition, Efficiency Maine Trust manages money from the Regional Green House Gas Initiative and grants, such as those received from the Federal government's American Recovery Reinvestment Act (ARRA) in 2010. In FY2011, the fund collected approximately $64 M from all sources.

The Efficiency Maine Annual Reports includes additional details on the fund and the types of projects funded.


*In addition, Public Law 655 (2010) mandates that state revenue generated from energy corridor development on state-owned land would be deposited to the Efficiency Maine Trust (80%) and a new Transportation Efficiency Fund (20%).

In April 2012, legislation was enacted to expand the Renewable Resource Fund to include energy efficiency as well (Public Law 637). That legislation becomes effective in July, when this entry will be updated accordingly.

Maine's public benefits fund for renewable energy was established as part of the state's electric-industry restructuring legislation, enacted in May 1997. The law directed the Maine Public Utilities Commission (PUC) to develop a voluntary program allowing customers to contribute to a fund that supports renewable-energy projects. This fund was originally known as the Renewable Resource Fund (now it is part of Efficiency Maine Trust).

The PUC adopted rules requiring the state's utilities to offer customers the option of supporting the fund by checking off a contribution of $1, $5, $10 or other amount each month on their electric bill. Every six months, each utility must notify its customers of the existence and purpose of the fund, the means to contribute to the fund, and summaries of projects that have been supported by the fund.

In addition, revenue for the fund comes from the state's renewables portfolio requirement. Utilities may pay an alternative compliance payment (ACP) in lieu of procuring renewable resources to meet portfolio requirements; ACP income supports the Renewable Resource Fund (now part of Efficiency Maine Trust). Approximately $800,000 was collected from the two sources for the fund during 2009 and an estimated $1.325 million during 2010 and approximately $800,000 in FY2011 (see Efficiency Maine Trust FY2011 Annual report for details).

The fund supports grants for renewable-energy demonstration projects to Maine-based nonprofits, consumer-owned electric transmission and distribution utilities, community-based nonprofit organizations, community action programs, municipalities, quasi-municipal corporations or districts, and school administrative units. The first funding solicitation was issued in 2003.* As of June 2011 (HB 568), the fund is also authorized to support the solar and wind rebate program.

Efficiency Maine Trust administers the fund and must report to the Joint Standing Committee of the Legislature every year by December 1. The annual report includes a description of commission actions, accounting of total deposits and expenditures from the fund, and a description of any research and development or community demonstration projects that received funding. See the Efficiency Maine Reports for additional information on the Renewable Resource Fund. 

Background
In 2007, Public Law 403 established the Renewable Portfolio Standard (RPS) alternative compliance payment, the revenues of which are added to the Renewable Resource Fund. LD 36 expanded funding eligibility to additional types of organizations and transferred management of the fund from the State Planning Office to the PUC. Most recently, the Act Regarding Maine's Energy Future (Public Law 372, June 2009) established a new entity, the Efficiency Maine Trust, which became responsible for Maine's energy efficiency and renewable energy programs. All of the funds in Renewable Energy Fund were transferred to Efficiency Maine Trust July 1, 2010.

*The fund has support research and development via grants provided by the Maine Technology Institute. As of May 2010, funding has been fully allocated.

Maine's original Renewable Resource Portfolio Requirement was passed as part of the state's 1997 electric-utility restructuring law.  In 1999, Maine's Public Utility Commission (PUC) adopted rules requiring each electricity provider to supply at least 30% of their total electric sales using electricity generated by eligible renewable and certain energy efficiency resources. Actually, at the time of passage, the required percentage of renewables was actually lower than the existing percentage supplied.

Eligible facilities include those up to 100 megawatts (MW) in capacity that use fuel cells, tidal, solar, wind, geothermal, hydro, biomass or municipal solid waste in conjunction with recycling. Electricity generated by efficient combined heat and power (CHP) facilities and other systems that qualify as "small power production facilities" under the federal Public Utility Regulatory Policies Act of 1978 (PURPA) also are eligible.

Since 1999, the renewables portfolio standard (RPS) has been amended several times and two separate classes designated. Class II includes existing renewables, which are eligible to meet the 30% requirement described above. Class I is composed of new renewables that have come on-line after September 1, 2005. Unlike Class II, municipal solid waste facilities and CHP facilities are not eligible for Class I and there are more stringent hydropower qualifying requirements. In addition, new wind installations may exceed 100 MW.

The schedule for the Class I standard is as follows:

• 1% for the period from 1/1/2008 to 12/31/2008
• 2% for the period from 1/1/2009 to 12/31/2009
• 3% for the period from 1/1/2010 to 12/31/2010
• 4% for the period from 1/1/2011 to 12/31/2011
• 5% for the period from 1/1/2012 to 12/31/2012
• 6% for the period from 1/1/2013 to 12/31/2013
• 7% for the period from 1/1/2014 to 12/31/2014
• 8% for the period from 1/1/2015 to 12/31/2015
• 9% for the period from 1/1/2016 to 12/31/2016
• 10% for the period from 1/1/2017 to 12/31/2017, and for each year thereafter

The PUC has approved the use of NEPOOL Generation Information System (GIS) certificates (which are similar to renewable-energy credits, or RECs) to satisfy the portfolio requirement. GIS certificates are awarded based on the number of kilowatt-hours (kWh) of eligible electricity generated. GIS certificates used to meet the Class I standard may not also be used to satisfy the Class II standard. There is a 1.5 credit multiplier available for qualifying community-based renewable energy projects (see the Community-Based Renewable Energy Production Incentive for more information).

The PUC sets an alternative compliance payment (ACP) that utilities may pay instead of satisfying the standard by procuring GIS certificates. The PUC set the ACP base rate for the Class I standard at $57.12 per megawatt-hour (MWh) in 2007; this rate is adjusted annually for inflation beginning in 2008. The 2011 ACP rate is $62.10. Revenues from ACPs will be directed to the state's Renewable Resource Fund).

Legislation enacted in 2011 (Public Act 413) requires the PUC to study the renewable portfolio standard. The PUC engaged London Economic International to conduct the analysis. The results were published in January 2012 in the comprehensive report, MPUC RPS Report 2011 - Review of RPS Requirements and Compliance. 

Maine Wind Energy Goals

In addition to the above, there are three goals for wind-energy development in Maine: (1) at least 2,000 MW of installed capacity by 2015; (2) at least 3,000 MW of installed capacity by 2020, of which there is a potential to produce 300 MW from facilities located in coastal waters or offshore; and (3) At least 8,000 MW of installed capacity by 2030, of which 5,000 MW should be from facilities in coastal waters or offshore. The first two goals were established in April 2008 (L.D. 2283), and the third was established in April 2010 (L.D. 1810).  

Maine allows for the creation of easements to ensure access to direct sunlight. Instruments creating a solar easement may include, but are not limited to, a description of the space affected by the easement; any terms or conditions under which the solar easement is granted or will be terminated; and a map showing the affected properties and the area protected by the easement. Solar easements must be created and will be recorded and indexed in the same way as other conveyances of real property interests.

Maine law requires that any municipal ordinance, bylaw, or regulation adopted after September 30, 2009 regulating solar energy devices on residential property follow certain requirements. The rules, bylaws, and regulations of home owner associations (HOA) of property owners must also follow these requirements. Specifically, these legal instruments may not prohibit a person from installing or using a solar energy device (including a clothesline or drying rack) on residential property owned by that person. In the case of a leased/rented property, the policy protects the renters' right to use a clothesline or drying rack.

Ordinances, bylaws, or regulations may reasonably restrict the installation and use of solar energy devices to protect public health and safety, buildings from damage, historic/aesthetic values (when a comparable alternate is available), and to protect shorelands (under shoreland zoning provisions). Legal instruments may restrict the use of solar energy devices on residential property that is commonly owned with third parties or in the common areas of condominiums.

In order to be eligible for Maine's solar thermal rebate program, systems must be installed by licensed plumbers who have received additional certification for solar thermal systems. To receive certification, plumbers must participate in the Public Utilities Commission (PUC) three-day workshop, pass the state exam, and submit corresponding fees. Certification is valid for two years and may be renewed if the individual has installed at least one system since the time of certification and pays corresponding renewal fees. The PUC also recommends that installers seek certification from the North American Board of Certified Energy Practitioners (NABCEP) in addition to the state certification, but it is not required at this time. The state solar thermal rebate program maintains a list of certified installers.


*Experience and/or prior certification may be accepted in lieu of participation in the class, contact the PUC for more information.

Note: This model ordinance was designed to provide guidance to local governments that wish to develop their own siting rules for wind turbines. While it was developed as part of a cooperative effort involving several state agencies, the model itself has no legal or regulatory authority.

In 2008, the Governor's Task Force on Wind Power Development issued its final report. One of the Task Force's recommendations was that the State Planning Office (SPO) develop a model wind ordinance for use by local governments to help facility wind development in the state. The SPO completed the model wind ordinance in August 2009. Additional guidance was issued in February 2010 in the form of a Guidebook (found at the web site listed above).

The model ordinance provides for four types of wind energy facilities and identifies the corresponding authority responsible for reviewing and approving/denying wind energy facility plans.

Wind Facility Type 1A: Has an aggregate capacity less than 100 kilowatts (kW), turbine height less than (or equal to) 80 feet, one turbine, does not require a Department of Environmental Protection permit, and the local Codes Enforcement Officer reviews the plan and provides approval/denial based on the conditions within the ordinance.

Wind Facility Type 1B: Has an aggregate capacity less than 100 kW, turbine height greater than 80 feet, does not require a Department of Environmental Protection permit, and the designated municipal reviewing authority reviews the plan and provides approval/denial based on the conditions within the ordinance.

Wind Facility Type 2: Has an aggregate capacity greater than or equal to 100 kW, does not require a Department of Environmental Protection permit (unless the energy generated by the facility is for sale/use by another person), and the designated municipal reviewing authority reviews the plan and provides approval/denial based on the conditions within the ordinance.

Wind Facility Type 3: Has an aggregate capacity greater than or equal to 100 kW, does require a Department of Environmental Protection permit, and the designated municipal reviewing authority reviews the plan and provides approval/denial based on the conditions within the ordinance.

The model ordinance provides guidance on the application process per type of wind energy facility (including timelines, and rules for setting public hearings, among others), and outlines the required documentation. In addition, it establishes general standards including safety setbacks, natural resource protection measures, building permit requirements, visual appearance standards, noise levels and mitigation (different per facility type), among others. It is interesting to note that the model wind ordinance does not permit building mounted wind turbines or turbines supported by guy wires (although it allows for exceptions on this last point).