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.