Transcript Slide 1

Triennial Plan 2:
Legal Framework
About Us
 Efficiency Maine is an independent trust
2
–
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
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)
3
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. 380 Electric Energy Conservation Programs
 Ch. 480 Natural Gas Conservation Program
4
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)
5
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)
6
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)
7
Electric Efficiency and Conservation Program
 Uses (1)
–
–
–
–
8
“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
Electric Efficiency and Conservation Program
 Uses (2)
–
9
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
Electric Efficiency and Conservation Program
 Funding Level
–
–
10
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)
Natural Gas Conservation Program
 Uses
–
–
11
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)
Natural Gas Conservation Program
 Funding
12
–
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)
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
13
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
14
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
•
–
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.
•
15
By 2030, provide cost-effective energy efficiency measures to
substantially all homes and businesses whose owners wish to
participate
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
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
16
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
17