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HomeMy WebLinkAbout2014-03-24 14-129 RESOLVECOUNCIL ACTION Item No. 14-129 Date: March 24, 2014 Item/Subject Expressing Support for LD 1252, An Act to Improve Maine's Economy and Energy Security with Solar and Wind Power Responsible Department: City Council Commentary: If approved, this resolve will express the Bangor City Council support for LD 1252, "An Act to Improve Maine's Economy and Energy Security with Solar and Wind Power." Among other provisions, the bill reinstates the solar and wind energy rebate program, which provides rebates for the purchase of certain solar and wind energy equipment until June 30, 2018. The program had expired on December 31, 2010. This item was reviewed and recommended for approval at the March 17, 2014 Government Operations Committee meeting. Manager's Comments: Associated Information: LD 1252, Back round memorandum from Councilor Plourde Budget Approval: Legal Approval: Introduced for X Passage First Reading Referral Department Head 2A managercity Finance Director /�;w X , City S licitor Page _of_ Assigned to Councilor Plourde CITY OF BANGOR AS AMENDED 14-129 MARCH 24, 2014 (TITLE.) RESOLVE, Expressing Support for LD 1252, An Act to Improve Maine's Economy and Energy Security with Solar Energy Whereas, LD 1252 would establish the Renewable Energy Rebate program for the purpose of providing rebates for cost-effective solar photovoltaic and solar thermal energy systems; and Whereas, Solar power is the fastest growing energy technology in the world, due in large part to rapidly falling prices, and last year alone the United States installed enough solar energy to power one million homes; and Whereas, Maine is the only state in New England without any policies specifically designed to foster solar energy, and lags behind on installed solar per capita, and on per capita solar jobs; and Whereas, Solar energy is growing rapidly in New England and nationally, but without the assistance provided for in LD 1252, Maine will fall further behind. NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT, the City Council expresses its support for LD 1252 and asks all legislators to consider supporting the bill as well, and BE IT FURTHER RESOLVED THAT, Copies of this Resolve will be sent to the members of the Bangor delegation and appropriate parties at the Maine House and Senate. Assigned to Councilor Plourde CITY OF BANGOR 14-129 MARCH 24, 2014 (TITLE.) RESOLVE, Expressing Support for LD 1252, An Act to Improve Maine's Economy and Energy Security with Solar and Wind Power Whereas, LD 1252 would re-establish funding for the recently expired solar and wind energy rebate program that assists homeowners and businesses invest in solar and wind energy projects by decreasing upfront costs; and Whereas, Solar power is the fastest growing energy technology in the world, due in large part to rapidly falling prices, and last year alone the United States installed enough solar energy to power one million homes; and Whereas, Maine is the only state in New England without any policies specifically designed to foster solar energy, and lags behind on installed solar per capita, and on per capita solar jobs; and Whereas, Solar energy is growing rapidly in New England and nationally, but without the assistance provided for in LD 1252, Maine will fall further behind. NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT, the City Council expresses its support for LD 1252 and asks all legislators to consider supporting the bill as well, and BE IT FURTHER RESOLVED THAT, Copies of this Resolve will be sent to the members of the Bangor delegation and appropriate parties at the Maine House and Senate. IN CITY COUNCIL March 24, 2014 Motion made and seconded for Passage Motion made and seconded to Amend by Substitution Resolve 14-129 Amendment Passed Motion made and seconded for Passage as Amended Motion Doubted Jim Lebreque spoke in opposition to the resolve. Motion made and seconded to End Debate Vote: 6-3 Councilors Voting Yes: Baldacci, Blanchette, Durgin, Gallant, Graham, Plourde Councilors Voting No: Civiello, Nealley, Sprague Vote on Motion as Amended: 7-2 Councilors Voting Yes: Baldacci, Blanchette, Durgin, Gallant, Graham, Plourde, Sprague Councilors Voting No: Civiello, Nealley Passed as Amended 'CITY CORK - " AS AMENDED 14-129 MARCH 24, 2014 1 L.D. 1252 2 Date: (Filing No. H- 3 ENERGY, UTILITIES AND TECHNOLOGY 4 Reproduced and distributed under the direction of the Clerk of the House. STATE OF MAINE 6 HOUSE OF REPRESENTATIVES 7 E:3 126TH LEGISLATURE SECOND REGULAR SESSION 9 COMMITTEE AMENDMENT " " to H.P. 886, L.D. 1252, Bill, "An Act To 10 Improve Maine's Economy and Energy Security with Solar and Wind Energy" 11 Amend the bill by striking out the title and substituting the following: 12 'An Act To Improve Maine's Economy and Energy Security with Solar Energy' 13 Amend the bill by striking out everything after the enacting clause and before the 14 summary and inserting the following: 15 'Sec. 1. 35-A MRSA §10121-A is enacted to read: 16 00121-A. Renewable Energy Rebate Program Fund 17 1. Fund established. There is established the Renewable Energy Rebate Program 18 Fund, referred to in this section as "the fund," to be used by the trust solely for the 19 purposes of providing rebates for cost-effective solar photovoltaic and solar thermal 20 technologies as determined by the trust as part of a renewable energy technologies rebate 21 program under section 10121, subsection 1, paragraph F. Any interest on funds in the 22 fund must be credited to the fund. Funds not spent in an, fl year remain in the fund to 23 be used for the purposes of this subsection. 24 2. Assessment. The commission shall assess transmission and distribution utilities 25 in accordance with the following. 26 A. The commission shall assess transmission and distribution utilities to collect 27 funds for the fund. The amount of all assessments by the commission under this 28 subsection must result in total program m expenditures by each transmission and 29 distribution utility of .0110 per kilowatt-hour except as provided for in paragraph B. 30 All assessments made under this paragraph must be transferred to the fund. 31 B. Electricity customers receiving service at transmission voltage levels and 32 subtransmission voltage levels are not eligible for rebates under this section, and 33 those customers are not required to pay in rates any amount associated with the 34 assessment under paragraph A. For the purposes of this paragraph, "transmission Page 1 - 126LR1157(02)-1 COMMITTEE AMENDMENT AS AMENDED 14-129 MARCH 24, 2014 COMMITTEE AMENDMENT " " to H.P. 886, L.D. 1252 voltage levels" means 44 kilovolts or more and "subtransmission voltaee levels" 2 means 34.5 kilovolts. 3 3. Administration. The trust shall administer rebates under this section in 4 accordance with the following. 5 A. The trust shall by rule establish criteria for determining eli ig bility of a solar 6 photovoltaic or solar thermal technology under this section. 7 B. A natural person is eligible to receive a rebate from funds collected pursuant to 8 this section only if that person is a resident of this State. The trust shall establish 9 proof of residency requirements by rule. Other entities, including, but not limited to, 10 commercial, nonprofit or government entities, may receive a rebate under this section 11 as long as the facility on which the eligible technology is installed is located in this 12 State. 13 This section is repealed December 31, 2016. 14 Sec. 2. Appropriations and allocations. The following appropriations and 15 allocations are made. 16 EFFICIENCY MAINE TRUST 17 Renewable Energy Rebate Fund N170 18 Initiative: Provides an allocation of $1,000,000 in fiscal year 2014-15 for rebates to 19 persons or entities for the installation and use of cost-effective solar photovoltaic and 20 solar thermal technology. 21 OTHER SPECIAL REVENUE FUNDS 2013-14 2014-15 22 All Other $0 $1,000,000 23 24 OTHER SPECIAL REVENUE FUNDS TOTAL $0 $1,000,000 25 ' 26 SUMMARY 27 This amendment is the majority report of the Joint Standing Committee on Energy, 28 Utilities and Technology. This amendment replaces the bill. It establishes the Renewable 29 Energy Rebate Program Fund under the Efficiency Maine Trust. The trust is required to 30 provide rebates for the purchase of certain renewable energy equipment until December 31 31, 2016. The rebate program is funded by an assessment of .011 ¢ per kilowatt-hour on 32 electricity bills. The amendment also adds an appropriations and allocations section. 33 FISCAL NOTE REQUIRED 34 (See attached) Page 2-126LR1157(02)-1 COMMITTEE AMENDMENT 14-129 MARCH 24, 2014 126th MAINE LEGISLATURE FIRST REGULAR SESSION -2013 Legislative Document No. 1252 House of Representatives, March 27, 2013 An Act To Improve Maine's Economy and Energy Security with Solar and Wind Energy Reference to the Committee on Energy, Utilities and Technology suggested and ordered printed. %�� %�?• iilacn�Zu�' MILLICENT M. MacFARLAND Clerk Presented by Representative MORRISON of South Portland. Cosponsored by Senator GRATWICK of Penobscot and Representatives: CHENETTE of Saco, HAMANN of South Portland, HOBBINS of Saco, NELSON of Falmouth, TIPPING -SPITZ of Orono, Senator: MILLETT of Cumberland. Printed on recycled paper 14-129 MARCH 24, 2014 1 Be it enacted by the People of the State of Maine as follows - 2 Sec. 1. 35-A MRSA §3603, sub -§2, ¶¶B, C and D, as enacted by PL 2009, c. 3 329, Pt. A, §4, are amended to read: 4 B. The total installed generating capacity of all program participants combined may 5 not exceed -50 60 megawatts. 6 C. The total installed generating capacity of program participants within the service 7 territory of a single investor-owned transmission and distribution utility may not 8 exceed 24 30 megawatts, unless a higher capacity limit is authorized by the utility 9 and approved by the commission. The commission shall determine a generating 10 capacity limit for the service territory of each investor-owned transmission and I 1 distribution utility at the outset of the program, taking into consideration the utility's 12 electric load and share of electricity market in the State. The commission may 13 modify the generating capacity limit under this paragraph based on program 14 experience. 15 D. Of the `0 megawa 60 -me awatt limit on total generating capacity under 16 paragraph B, 10 megawatts must be reserved at the outset of the program for program 17 participants that: 18 (1) Have an installed generating capacity of less than 100 kilowatts; or 19 (2) Are located in the service territory of a consumer -owned transmission and 20 distribution utility. 21 The commission may modify the amount of generating capacity reserved under this 22 paragraph based on program experience. 23 Sec. 2. 35-A MRSA §3603, sub -§2, ¶D-1 is enacted to read: 24 D-1. Of the 60 -megawatt limit on total generating cqpacily under paragraph B, 10 25 megawatts must be reserved for program participants that install solar -powered 26 generating systems. 27 Sec. 3. 35-A MRSA §3604, sub -§5, as enacted by PL 2009, c. 329, Pt. A, §4, is 28 amended to read: 29 5. Contract pricing; cost containment. The commission shall ensure that in any 30 contract entered into pursuant to this section: 31 A. The Except with regardparagraph C, the average price per kilowatt-hour 32 within each contract year does not exceed 10¢ in 2009 dollars, as determined by the 33 commission according to the Consumer Price Index; a= 34 B. The cost of the contract does not exceed the cost of the project plus a reasonable 35 rate of return on investment as determined by the commission:; and 36 C. For eligible solar -power generation, the average price per kilowatt-hour within 37 each contract year does not exceed 15¢ in 2013 dollars, as determined by the 38 commission according to the Consumer Price Index. Page 1-126LR1157(01)-1 14-129 MARCH 24, 2014 1 Sec. 4. 35-A MRSA §3609, as enacted by PL 2009, c. 329, Pt. A, §4, is amended 2 to read: 3 §3609. Repeal; authority for legislation 4 This chapter is repealed December 31, 241-3 2017. The joint standing committee of 5 the Legislature having jurisdiction over utilities and energy matters may report out 6 legislation regarding this program to the First Regular Session of the 126th Legislature. 7 Sec. 5. 35-A MRSA §10112-A is enacted to read: 8 00112-A. Solar and wind energy rebate program 9 1. Definitions. As used in this section, unless the context otherwise indicates, the 10 following terms have the following meanings. 11 A. "Qualified solar energy system" means a solar photovoltaic system or a solar 12 thermal system. 13 B. "Qualified solar thermal water system installer" means a person who has been 14 certified by the trust to install solar thermal systems designed to heat water and who 15 holds a current license from the State as a master plumber, as a master oil burner 16 technician or as a propane and natural gas technician or has been certified as a We II, 17 type III or universal heating, ventilation and air conditioning refrigeration technician 18 through a certification program approved by the United States Environmental 19 Protection Agency. 20 C. "Qualified wind energy system" means any device, such as a wind charger, 21 windmill or wind turbine and associated facilities, with a peak generating capacity of 22 100 kilowatts or less that converts wind energy to electrical energy for use primarily 23 in a residence, public facility or place of business that is located in an area with 24 demonstrated wind power potential. 25 D. "Solar photovoltaic system" means a solar energy device with a peak generating 26 capacity of 100 kilowatts or less used for generating electricity for use in a residence 27 or place of business. 28 E. "Solar thermal system" means a configuration of solar collectors and a pump, heat 29 exchanger and storage tank or fans designed to heat water or air for the purpose of 30 space heating domestic water heating or both space and domestic water heating. 31 Solar thermal system types include forced circulation, integral collector storage, 32 thermosyphon and self -pumping systems. 33 2. Solar and wind energv rebate program. To the extent that funds are available 34 in the fund established in subsection 5 and the requirements of subsection 3 are satisfied, 35 an owner or tenant of residential or commercial property located in the State is entitled to 36 a rebate for a qualified solar energy system that is installed in accordance with this 37 subsection after July 1, 2013 that will be connected to the electrical grid or a qualified 38 wind energy system that is installed in accordance with this subsection after July 1, 2013 39 that will be connected to the electrical Axid. The trust shall set rebate levels for qualified 40 solar energy systems and qualified wind energy systems. In setting rebate levels, the trust Page 2-126LR1157(01)-1 14-129 MARCH 24, 2014 may consider market demand for aualified solar energy systems and qualified wind 2 energy systems, program implementation experience and other factors relevant to the 3 solar and wind enemy rebate program. 4 A. To qualify for a rebate, a solar photovoltaic system must be installed by a master 5 electrician who has been certified by a North American board of certified energy 6 practitioners or by a master electrician working in conjunction with a person who has 7 been certified by a North American board of certified energy practitioners. 8 B. To qualify for a rebate, a solar thermal system designed to heat water must be 9 installed by a qualified solar thermal water system installer and, if the solar thermal 10 system is designed to heat potable water, it must be installed by a qualified solar 11 thermal water system installer who holds a current license as a master plumber or by 12 a qualified solar thermal water system installer workingin n conjunction with a master 13 plumber. 14 C. To qualify for a rebate, the electrical components of a qualified wind energy 15 system must be installed by a master electrician or by a factory -trained and approved 16 dealer for the qualified wind energy system working under the supervision of a 17 master electrician. 18 In the case of a newly constructed residence, the rebate must be available to the original 19 owner or occupant. 20 3. Energy audit requirement; solar photovoltaic system. To qualify for a rebate 21 for a solar photovoltaic system under this section, an owner or tenant of residential or 22 commercial property located in the State must demonstrate to the satisfaction of the trust 23 that an energy audit has been completed. 24 4. Limitation to residents of State. Participation in the solar and wind energy 25 rebate program established in this section is limited to residents of the State. 26 5. Funding. The commission shall assess transmission and distribution utilities to 27 collect funds for the solar and wind energy rebate program established in this section. The 28 amount of all assessments by the commission under this subsection must result in total 29 program m expenditures by each transmission and distribution utility that do not exceed 30 0.005 cent per kilowatt-hour. To the extent practicable, the commission shall establish 31 and collect the assessment in a manner that is consistent with the assessment made under 32 section 10110. There is established a solar and wind energy rebate program fund to be 33 used by the trust solely for the purposes of this section. All assessments made under this 34 section must be transferred to the solar and wind energy rebate program fund. Any 35 interest on funds in the fund must be credited to the fund. Funds not spent in any 36 year remain in the fund to be used for the purposes of this section. The trust shall 37 determine the allotment of the fund in each fiscal year between solar photovoltaic system 38 rebates, solar thermal system rebates and qualified wind energy system rebates. 39 6. Repeal. This section is repealed June 30, 2018. 40 Sec. 6. Report on solar requirements. By January 15, 2014, the Public Utilities 41 Commission shall submit to the Joint Standing Committee on Energy, Utilities and 42 Technology a report outlining options and issues in establishing a solar carve -out within Page 3-126LR1157(01)-1 14-129 MARCH 24, 2014 1 the State's renewable portfolio standard as established in the Maine Revised Statutes, 2 Title 35-A, section 3210. A solar carve -out is an amount of energy purchased that must 3 be solar energy. The report must identify key policy determinations and summarize solar 4 carve -out policies in other states, such as Pennsylvania and Massachusetts. The report 5 must provide estimates for the scope of a carve -out that might be needed in the State to 6 significantly increase generation of solar power and provide capacity resource diversity. 7 The report must include quantitative and qualitative information about costs and benefits 8 of a solar carve -out, including a carve -out of the existing renewable portfolio standard 9 and a carve -out that was additional to the existing renewable portfolio standard. 10 SUMMARY 11 This bill reinstates the solar and wind energy rebate program, which provided rebates 12 for the purchase of certain solar and wind energy equipment, until June 30, 2018. The 13 program had expired December 31, 2010. This bill also increases the limit on the total 14 amount of renewable capacity allowed under the community-based renewable energy 15 pilot program from 50 megawatts to 60 megawatts and requires the Public Utilities 16 Commission to reserve 10 megawatts in that program for solar -powered generating 17 systems. The bill increases the limit on the contract price the commission can authorize 18 for eligible solar -power generation and indexes the price limit to the Consumer Price 19 Index. It also extends the repeal date for the Community-based Renewable Energy Act 20 from December 31, 2015 to December 31, 2017. The bill requires the commission to 21 submit to the Legislature by January 15, 2014 a report on options for establishing a solar 22 carve -out, or solar set-aside, an amount of energy purchased that must be solar, within the 23 State's renewable portfolio standard. Page 4-126LR1157(01)-1 14-129 MARCH 24, 2014 MEMORANDUM TO: Government Operations Committee FROM: Joshua Plourde, Bangor City Councilor SUBJECT: LD 1252 DATE: 3/17/14 Maine is the only state in New England without any policies specifically designed to foster solar energy. Other states are building more solar and creating more solar jobs. LD 1252 would re-establish funding for the recently expired Solar Rebate Program that helps homeowners and businesses invest in solar by decreasing the upfront costs. Distributed solar energy is available everywhere in the state. When we produce energy on our rooftops, right where we use energy, we reduce transmission and distribution costs for ratepayers. And solar produces the most during hot, sunny, summer days when power is most costly and polluting, so it helps bring down peak energy prices. Solar power is the fastest growing energy technology in the world, due in large part to rapidly falling prices. Last year alone, the United States installed enough solar energy to power a million homes. Maine is the only state in New England without any policies specifically designed to boost investment in solar. And it shows. We lag behind on installed solar per capita, and on per capita solar jobs. Perhaps most importantly, we're missing out on greater potential to tap a local energy resource that doesn't pollute the air and keeps our energy dollars flowing in the Maine economy, not out of state. LD 1252 would take the simple step of reinstating Maine's solar rebate program, which helps lower upfront costs for homeowners and businesses. It helps ordinary Mainers become investors in an energy resource that benefits the entire state. The Maine House voted on 3/11/14 in support of LD 1252. The vote was 95-47. Solar energy is growing rapidly in New England and nationally (more solar was installed in the last 18 months than the previous 30 years combined), but without this program Maine will fall further behind. The governor and Central Maine Power oppose the bill and solar energy in general. The bill now goes to the Senate.