Senator Lawrence, Representative Berry, and distinguished members of the Energy, Utilities, and Technology Committee. My name is Sue Ely, and I am a staff attorney at the Natural Resources Council of Maine. Today I am testifying against LD 667, An Act To Create Synergy between Maine Industry and Maine’s Energy Goals in the Use of Certain Funds by the Efficiency Maine.
While NRCM is strongly supportive of this bill’s goal to facilitate the creation and use of environmentally sustainable energy-related and energy efficiency-related products and services derived from the state’s natural resources, industrial by-products, waste products, and recycled materials, this bill raises some concerns.
As a threshold matter, it is unclear if the Efficiency Maine Trust (Trust) is the appropriate entity to implement this important goal. Additionally, we believe that any program “to facilitate the creation and use of environmentally sustainable energy-related and energy efficiency-related products and services derived from the state’s natural resources, industrial by-products, waste products and recycled materials” should be required to take into account the net carbon impact and total cost effectiveness of any new products and services if receiving funds from the Trust.
The Trust was “established for the purposes of developing, planning, coordinating and implementing energy efficiency and alternative energy resources programs in the state.” Its mandate is to administer cost-effective energy and energy efficiency programs, not to act as an economic development agency.
LD 667 would add a new objective to 35-A MRSA §10103. Specifically, it directs that the Trust “administer cost-effective energy and energy efficiency programs consistent with applicable requirements of this chapter and other law to help individuals and businesses meet their energy needs at the lowest cost and generally to improve the economic security of the state by”
(8) Encouraging the development and adoption of environmentally sustainable energy-related and energy efficiency-related products and services derived from the State’s natural resources, industrial by-products, waste products and recycled materials;
This requirement would be a departure from the other provisions in this subsection in that it would single out specific business sectors for different and elevated treatment and put the Trust in the position of having to weigh business development interests against energy-efficiency and cost effectiveness. Without specific guidance about how to balance these competing interests, it is unclear how the Trust would implement this new provision and how it would impact the Trust’s fundamental mission to administer cost-effective energy and energy efficiency programs.
If this bill moves forward, it would be critically important to add a requirement that any new “environmentally sustainable energy-related and energy efficiency-related products and services derived from the state’s natural resources, industrial by-products, waste products and recycled materials” be required to demonstrate that it delivers a net reduction in carbon emissions and meets the Trust’s cost effectiveness criteria before qualifying for any funding from the Trust.
Another concern is how this provision would be funded. Currently, Section 10119 is funded from the Forward Capacity Market (FCM), and all of these funds are needed to achieve the goal of adding 100,000 high-performance air source heat pumps by 2025. Adding the proposed new directive in LD 667 without increasing funding for the Trust would diminish the funds available to achieve the heat pump goal, making it unlikely that the Trust will have the appropriate resources to achieve its goal.
Finally, it seems likely that some of these products and services might already qualify for funds from the Trust under 35-A MRSA §10119(2)(B). That provision states that funds from the Heating Fuels Efficiency and Weatherization Fund may be used “for programs that provide cost-effective heating fuel efficiency or weatherization measures” that meet certain requirements. This provision also already allows funding for “training or certification of energy auditors, insulation installers, mechanical heating system installers and maintenance technicians and building energy inspectors.”
I appreciate this opportunity to testify and would be glad to answer any questions you may have.
