An Act to Reform Net Energy Billing by Establishing Limitations on the Programs' Duration and Compensation
Summary
LD 1321 would significantly revise Maine’s net energy billing laws for distributed generation resources, which are commonly used by solar and other renewable energy projects. The bill narrows eligibility for the kilowatt-hour credit program by generally limiting participation to distributed generation resources of 20 kilowatts or less, unless a project qualifies for a timing-based exemption tied to earlier development activity or external delays. For shared projects, it caps participation at 10 customers or meters with a shared financial interest, and it limits any one customer to financial interests in no more than 5 net-energy-billing resources at a time. It also clarifies that kilowatt-hour credits may be applied only to electricity supply charges.
The bill also changes the tariff-rate net energy billing program by tying compensation more tightly to the standard-offer supply rate, rather than broader tariff structures. In addition, it would end participation in either net energy billing program 20 years after the relevant agreement is executed or on December 31, 2045, whichever comes first. Finally, it requires distributed generation resources participating in these programs to sell renewable energy credits in Maine and prohibits selling those credits outside the state.
Impact
If enacted, LD 1321 would amend Maine’s statutes governing net energy billing, affecting the economics and eligibility of solar and other distributed generation projects, especially larger community solar and shared ownership arrangements. It would reduce the scope of projects that can use net energy billing, constrain how credits are applied, and limit the duration of program participation. The bill would also alter the treatment of renewable energy credits by requiring in-state sale, which could affect project revenue and the state’s renewable energy market.
Sentiment
The recorded vote history suggests the bill faced substantial opposition. The House rejected the majority ought-not-to-pass report by a narrow margin, indicating a divided chamber, and then accepted that report, which effectively advanced the recommendation against the bill. With no committee transcript available, the available record points to a generally skeptical or negative sentiment toward the proposal, at least among a majority of legislators voting on the report.
Contention
The main points of contention appear to be the bill’s restrictions on net energy billing eligibility, compensation, and project duration. Supporters likely viewed the measure as a reform to limit long-term program costs and tighten program rules, while opponents likely saw it as a significant rollback that would harm existing and future distributed generation, especially solar developers, community solar subscribers, and customers with shared financial interests. The requirement to sell renewable energy credits in-state and the limits on larger projects and shared ownership structures are likely to have been especially contentious.
Establishing the private energy campus and industrial host-site electric generation act to authorize the provision of energy services to private enterprises located on a private energy campus.