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Triennial Plan 2: Legal Framework

Triennial Plan 2: Legal Framework. About Us. Efficiency Maine is an independent trust Accounts and administrative responsibilities transferred from the Maine PUC to the Trust on 7/1/2010

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Triennial Plan 2: Legal Framework

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  1. Triennial Plan 2:Legal Framework

  2. About Us • Efficiency Maine is an independent trust • Accounts and administrative responsibilities transferred from the Maine PUC to the Trust on 7/1/2010 • Directed by a 9-member Board of Trustees representing business and residential energy customers, engineers, energy experts, economists • Funds held in trust for the benefit of the energy consumers who pay in to the funds through the SBC and RGGI • Funds are expended consistent with statute, rules, and 3-Year Strategic Plan to be approved by Trust Board and Maine PUC

  3. Maine Statutes • 35-A MRSA 10101 et seq. (Efficiency Maine Trust Act) • Establishment of Trust (10103) • Regional Greenhouse Gas Initiative (RGGI) Trust Fund (10109) • Electric Efficiency and Conservation Program (10110) • Natural Gas Conservation Program (10111) • Heating Fuels Efficiency Fund (10119) • Federal Energy Programs (State Energy Program) (10115) • Renewable Resource Fund (10121) • 35-A MRSA 10151 et seq. (PACE Loan Act) • 35-A MRSA 3210-C (Long-term Contracting for Capacity Resources)

  4. Maine Rules 95 648 Code of Maine Rules -- Efficiency Maine Trust • Ch. 1 Contracting Process for Service Providers and Grant Recipients • Ch. 2 Administration of (RGGI) Trust, Budgeting, Project Selection Criteria and Procedures, Monitoring, and Evaluation Requirements • Ch. 103 Renewable Resource Fund Regulations: Selection Criteria for Demonstration Projects, Cost-effectiveness Requirements for Renewable Energy Rebates and Quality Assurance System • Ch. 110 PACE Program Regulations: Loan Underwriting Standards, Consumer Disclosure Requirements, Terms and Conditions of Participation and Quality Assurance System (in Adobe .pdf format) • Ch. 380Electric Energy Conservation Programs • Ch. 480Natural Gas Conservation Program

  5. Purpose • The Trust’s purpose is to: • Provide uniform, integrated planning, program design and administration of programs • Reduce energy costs and improve security of the state and local economies. • Administer cost-effective energy efficiency programs to help individuals and businesses meet their energy needs at the lowest cost and generally to improve the economic security of the State   • Ensure that all expenditures of the trust are cost-effective in terms of avoided energy costs; and • Actively promote investment in cost-effective energy efficiency measures and systems that use alternative energy resources that reduce overall energy costs for consumers in the State. 35-A-MRSA Chapter 97, § 10103(1)

  6. Duties • Program Administration and Coordination • The Trust administers and disburses funds and coordinates programs to promote energy efficiency and increased use of alternative energy resources in the State • Metrics • The Trust shall develop quantifiable measures of performance for all programs it administers. • Plan • The Trust will develop and adopt a triennial plan that “must provide integrated planning, program design and implementation strategies for all energy efficiency, alternative energy resources” administered by the Trust • Report • The Trust shall report by December 1st to the legislative committee of jurisdiction 35-A MRSA Sec. 10104(4)

  7. Program Funding (Generally) • The Trust may: • Apply for and receive grants from state, federal or private sources • Deposit the proceeds of any bonds into program funds • Receive and spend revenue from • the Forward Capacity Market (FCM) or other capacity payments • Revenues transferred to the Trust from the energy infrastructure benefits fund • any “other funds received by or from any entity with which the trust has an agreement or contract” 35-A MRSA 10103(4)

  8. Electric Efficiency and Conservation Program • Uses (1) • “Conservation Programs” means programs developed by the Trust designed to reduce inefficient electric use. • Goal: Help reduce energy costs for electricity consumers by the maximum amount possible • Implement programs that are cost-effective and consistent with objectives and a strategy established by the trust and approved by the PUC • Objectives • Increase consumer awareness of cost-effective options • Create favorable market conditions for increased use of EE • Promote sustainable economic development and reduce environmental damage • Reduce the price of electricity over time for all consumers by reducing demand during peak use periods • Reduce total energy costs for electricity consumers

  9. Electric Efficiency and Conservation Program • Uses (2) • Seek to implement delivery of programs in all regions of the state on an equitable basis and to citizens at all income levels. • Target at least 20% of Base Assessment to Low Income residential customers • Target at least 20% of the Base Assessment to Small Business customers • Apportion the remaining Base Assessment among customer groups and geographic areas in a manner that allows all other customers to have a reasonable opportunity to participate in programs

  10. Electric Efficiency and Conservation Program • Funding Level • Base Assessment • Fixed rate of 0.145 cents/kWh (except on T & ST customers) • = $13.1M/Yr • Other Assessments • In accordance with the Triennial Plan, the commission shall assess each transmission and distribution utility … as necessary to realize all available energy efficiency and demand reduction resources … that are cost-effective, reliable and feasible” net of: • Base Assessment • RGGI funding for electric conservation • FCM payments • Any other predictable sources of funding for conservation programs 35-A MRSA Sec. 10110(4) and (5)

  11. Natural Gas Conservation Program • Uses • Establish a cost-effective conservation program to promote the efficient use of natural gas that: • Increases consumer awareness of cost-effective options for conserving energy; • Creates more favorable market conditions for the increased use of efficient products and services; • Promotes sustainable economic development and reduces environmental damage • Apportions funds such that: • Reasonable percentage to low income residential customers • Reasonable percentage to small business customers • Remaining funds “allow all other consumers to have a reasonable opportunity to participate” in programs 35-A MRSA Sec. 10111(1)

  12. Natural Gas Conservation Program • Funding • An assessment of not less than 3% of the gas utility’s delivery revenues • Only for utilities having > 5,000 residential customers (Unitil) • “In accordance with the Triennial Plan, the Commission may assess a higher amount.” • Assessments charged to gas utilities under this section are just and reasonable costs for rate-making purposes and must be reflected in the rates of gas utilities 35-A MRSA Sec. 10111(2)

  13. RGGI Trust Fund • Uses • To support the goals of the carbon cap-and-trade program • Trustees have a fiduciary duty to the customers of the T&D utilities • Funds are held in trust for the purposes of benefiting consumers • Fund conservation programs that give priority to measures with the highest benefit-to-cost ratio, as long as cost-effective collateral opportunities are not lost, to reliably reduce kWh and/or GHG. • Size of a project not limited by statute • Funding • Revenue resulting from the sale of carbon dioxide allowances under RGGI auctions • If price/ton reaches $5, additional revenues go to customer rebates 35-A MRSA Sec. 10109

  14. Federal Funds • Uses • The Trust shall oversee and administer: • The US DOE State Energy Program • Other federally funded programs and projects related to Trust programs. • Must be used consistent with Triennial Plan 35-A MRSA Sec. 10115

  15. Heating Fuels Efficiency and Weatherization Fund • Uses • To reduce heating fuel consumption consistent with the purpose and targets of the Trust and the Triennial Plan to achieve the following goal • By 2030, provide cost-effective energy efficiency measures to substantially all homes and businesses whose owners wish to participate • Only for programs that provide cost-effective energy efficiency and weatherization measures for the benefit of heating fuel customers or to efficiency service providers serving those customers. • Cost-effective measures includes those that improve the efficiency of energy-using systems through system upgrades or conversions, including conversions to systems that rely on renewable energy sources or that rely on effective energy efficiency technologies 35-A MRSA Sec. 10119

  16. Heating Fuels Efficiency and Weatherization Fund • Funding • No funding stream is established in statute • Fund may receive • Funds collected from an assessment on heating fuels • Federal funds targeted for the purposes of this Fund • Proceeds of any bonds issued for the purposes of the Fund • Any other funds from public or private sources 35-A MRSA Sec. 10119

  17. Renewable Resource Fund • Uses • Renewable resource R&D • Renewable energy demonstration projects • To non-profits, CAPs, COUs, municipalities, • Renewable Rebates • Funding • Voluntary (check off) contributions from utility bills • Alternative Compliance Payments from load serving entities that do not comply with the Renewable Portfolio Standard (RPS) 35-A MRSA Sec. 10121

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