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An Act To Reduce Greenhouse Gas Emissions
Emergency preamble. Whereas, acts and resolves of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas,  this Act requires the Department of Environmental Protection, with input from stakeholders, to update the State's climate action plan by December 1, 2019; and
Whereas,  the department must begin its work before the 90-day period expires to complete the update by December 1, 2019; and
Whereas,  in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 2 MRSA §9, sub-§3, ¶C, as amended by PL 2013, c. 541, §1, is further amended to read:
 
C. In consultation with the Efficiency Maine Trust Board, established in Title 5, section 12004-G, subsection 10-C, prepare and submit a comprehensive state energy plan to the Governor and the Legislature by January 15, 2009 and submit an updated plan every 2 years thereafter. Within the comprehensive state energy plan, the director shall identify opportunities to lower the total cost of energy to consumers in this State and transmission capacity and infrastructure needs and recommend appropriate actions to lower the total cost of energy to consumers in this State and facilitate the development and integration of new renewable energy generation within the State and support the State's renewable resource portfolio requirements specified in Title 35-A, section 3210 and wind energy development goals specified in Title 35-A, section 3404. The comprehensive state energy plan must include a section that specifies the State's progress in meeting the oil dependence reduction targets in subsection 5. The office shall make recommendations, if needed, for additional legislative and administrative actions to ensure that the State can meet the reduction targets in subsection 5. The recommendations must include a cost and resource estimate for technology development needed to meet the reduction targets.
 
(1) Beginning in 2015, theThe update to the plan must:
 
(a) Be submitted to the joint standing committee of the Legislature having jurisdiction over utilities and energy matters and the joint standing committee of the Legislature having jurisdiction over natural resources matters;
 
(b) Address the association between energy planning and meeting the greenhouse gas reduction goals in the state climate action plan pursuant tolevels in Title 38, section 577576-A. The director shall consult with the Department of Environmental Protection in developing this portion of the plan;
 
(c) Include a section devoted to wind energy development, including:
 
(i) The State's progress toward meeting the wind energy development goals established in Title 35-A, section 3404, subsection 2, including an assessment of the likelihood of achieving the goals and any recommended changes to the goals;
 
(ii) Examination of the permitting process and any recommended changes to the permitting process;
 
(iii) Identified successes in implementing the recommendations contained in the February 2008 final report of the Governor's Task Force on Wind Power Development created by executive order issued May 8, 2007;
 
(iv) A summary of tangible benefits provided by expedited wind energy developments, including, but not limited to, documentation of community benefits packages and community benefit agreement payments provided;
 
(v) A review of the community benefits package requirement under Title 35-A, section 3454, subsection 2, the actual amount of negotiated community benefits packages relative to the statutorily required minimum amount and any recommended changes to community benefits package policies;
 
(vi) Projections of wind energy developers' plans, as well as technology trends and their state policy implications; and
 
(vii) Recommendations, including, but not limited to, identification of places within the State's unorganized and deorganized areas for inclusion in the expedited permitting area established pursuant to Title 35-A, chapter 34-A and the creation of an independent siting authority to consider wind energy development applications;
 
(d) Include a description of activities undertaken pursuant to paragraph H; and
 
(e) Include a description of the State's activities relating to the expansion of natural gas service, any actions taken by the office to expand access to natural gas in the State and any recommendations for actions by the Legislature to expand access to natural gas in the State.
 
The joint standing committee of the Legislature having jurisdiction over utilities and energy matters may report out legislation by February 1st of each odd-numbered year relating to the content of the plan. The joint standing committee of the Legislature having jurisdiction over natural resources matters may make recommendations regarding that legislation to the joint standing committee of the Legislature having jurisdiction over energy matters.
Sec. 2. 2 MRSA §9, sub-§5, ¶D, as enacted by PL 2011, c. 400, §2, is amended to read:
 
D. Draw on existing state data and studies rather than new analyses, including, but not limited to, analyses and data from the State's climate action plan developed by the Department of Environmental Protection pursuant to Title 38, section 577 and the progress updates to the climate action planevaluations of the State's progress toward meeting greenhouse gas emissions levels under Title 38, section 578, the comprehensive state energy plan pursuant to subsection 3, paragraph C, the Efficiency Maine Trust's triennial plan pursuant to Title 35-A, section 10104, subsection 4 and analyses completed by the Federal Government, nonprofit organizations and other stakeholders.
Sec. 3. 35-A MRSA §3210-C, sub-§3, as amended by PL 2017, c. 134, §2, is further amended to read:
 
3. Commission authority.   The commission may direct investor-owned transmission and distribution utilities to enter into long-term contracts for:
 
A. Capacity resources;
 
B. Any available energy associated with capacity resources contracted under paragraph A:
 
(1) To the extent necessary to fulfill the policy of subsection 2, paragraph A; or
 
(2) If the commission determines appropriate for purposes of supplying or lowering the cost of standard-offer service or otherwise lowering the cost of electricity for the ratepayers in the State. Available energy contracted pursuant to this subparagraph may be sold into the wholesale electricity market in conjunction with solicitations for standard-offer supply bids;
 
C. Any available renewable energy credits associated with capacity resources contracted under paragraph A. The price paid by the investor-owned transmission and distribution utility for the renewable energy credits must be lower than the price received for those renewable energy credits at the time they are sold by the investor-owned transmission and distribution utility; and
 
D. Transmission capacity, capacity resources, energy or renewable energy credits pursuant to a regional procurement process in conjunction with other states.
 
The commission may permit, but may not require, investor-owned transmission and distribution utilities to enter into contracts for differences that are designed and intended to buffer ratepayers in the State from potential negative impacts from transmission development. To the greatest extent possible, the commission shall develop procedures for long-term contracts for investor-owned transmission and distribution utilities under this subsection having the same legal and financial effect as the procedures used for standard-offer service pursuant to section 3212 for investor-owned transmission and distribution utilities.
 
The commission may enter into contracts for interruptible, demand response or energy efficiency capacity resources. These contracts are not subject to the rules of the State Purchasing Agent. In a competitive solicitation conducted pursuant to subsection 6, the commission shall allow transmission and distribution utilities to submit bids for interruptible or demand response capacity resources.
 
Capacity resources contracted under this subsection may not exceed the amount necessary to ensure the reliability of the electric grid of this State, to meet the energy efficiency program budget allocations articulated in the triennial plan as approved by the commission pursuant to section 10104, subsection 4 or any annual update plan approved by the commission pursuant to section 10104, subsection 6 or to lower customer costs as determined by the commission pursuant to rules adopted under subsection 10.
 
Unless the commission determines the public interest requires otherwise, a capacity resource may not be contracted under this subsection unless the commission determines that the capacity resource is recognized as a capacity resource for purposes of any regional or federal capacity requirements.
 
The commission shall ensure that any long-term contract authorized under this subsection is consistent with the State's goals for greenhouse gas reduction levels under Title 38, section 576576-A and the regional greenhouse gas initiative as described in the state climate action plan required in Title 38, section 577579.
 
By January 1st of each year, the commission shall submit a report to the joint standing committee of the Legislature having jurisdiction over energy and utilities matters on the procurement of transmission capacity, capacity resources, energy and renewable energy credits in the preceding 12 months under this subsection, the Community-based Renewable Energy Act and deep-water offshore wind energy pilot projects under Public Law 2009, chapter 615, Part A, section 6, as amended by Public Law 2013, chapter 369, Part H, sections 1 and 2 and chapter 378, sections 4 to 6. The report must contain information including, but not limited to, the number of requests for proposals by the commission for long-term contracts, the number of responses to requests for proposals pursuant to which a contract has been finalized, the number of executed term sheets or contracts resulting from the requests for proposals, the commission's initial estimates of ratepayer costs or savings associated with any approved term sheet, actual ratepayer costs or savings for the previous year associated with any procurement, the total ratepayer costs or savings at the time of the report and the megawatt-hours, renewable energy credits or capacity produced or procured through contracts. The report must also include a plan for the succeeding 12 months pertaining to the procurement of capacity resources, energy and renewable energy credits, including dates for requests for proposals, and types of resources to be procured.
Sec. 4. 35-A MRSA §3402, sub-§1, ¶A, as amended by PL 2009, c. 615, Pt. A, §2, is further amended to read:
 
A. Wind energy is an economically feasible, large-scale energy resource that does not rely on fossil fuel combustion or nuclear fission, thereby displacing electrical energy provided by these other sources and avoiding air pollution, waste disposal problems and hazards to human health from emissions, waste and by-products; consequently, wind energy development may address energy needs while making a significant contribution to achievement of the State's renewable energy and greenhouse gas reduction objectives, including those in Title 38, section 576576-A;
Sec. 5. 35-A MRSA §10104, sub-§4, ¶F, as repealed and replaced by PL 2013, c. 369, Pt. A, §13, is amended to read:
 
F. It is an objective of the triennial plan to design, coordinate and integrate sustained energy efficiency and weatherization programs that are available to all energy consumers in the State and to users of all fuel types. The plan must set forth the costs and benefits of energy efficiency programs that advance the following goals, and funding necessary to meet those goals:
 
(1) Reducing energy costs, including residential heating costs;
 
(2) Weatherizing substantially all homes whose owners or occupants are willing to participate in and share the costs of cost-effective home weatherization to a minimum standard of weatherization, as defined by the trust, by 2030;
 
(3) Reducing peak-load demand for electricity through trust programs by 300 megawatts by 2020;
 
(4) By 2020, achieving electricity and natural gas program savings of at least 20% and heating fuel savings of at least 20%, as defined in and determined pursuant to the measures of performance approved by the commission under section 10120;
 
(5) Creating stable private sector jobs providing alternative energy and energy efficiency products and services in the State by 2020; and
 
(6) Reducing greenhouse gas emissions from the heating and cooling of buildings in the State by amounts consistent with the State's goalsreduction levels established in Title 38, section 576576-A.
 
The trust shall preserve when possible and appropriate the opportunity for carbon emission reductions to be monetized and sold into a voluntary carbon market. Any program of the trust that supports weatherization of buildings must be voluntary and may not constitute a mandate that would prevent the sale of emission reductions generated through weatherization measures into a voluntary carbon market.
 
Except when specifically provided in the individual goals under this paragraph, the trust may consider expected savings from market effects not attributable to the trust as well as efforts by other organizations, including but not limited to federally funded low-income weatherization programs.
 
As used in this paragraph, "heating fuel" means liquefied petroleum gas, kerosene or #2 heating oil, but does not include fuels when used for industrial or manufacturing processes.
Sec. 6.  38 MRSA §574, sub-§§1-A, 1-B and 1-C  are enacted to read:
 
1-A.  Climate action plan.     "Climate action plan" means the state plan adopted in 2004 by the department under this chapter to address greenhouse gas emissions reductions in each sector in cost-effective ways.
 
1-B.  Gross annual greenhouse gas emissions.     "Gross annual greenhouse gas emissions" means the total amount of greenhouse gases emitted by all sources within the State each year.
 
1-C.  Net annual greenhouse gas emissions.     "Net annual greenhouse gas emissions" means gross annual greenhouse gas emissions less the total amount of greenhouse gases absorbed each year by trees, crops, soil and wetlands within the State.
Sec. 7. 38 MRSA §576, as enacted by PL 2003, c. 237, §1, is repealed.
Sec. 8.  38 MRSA §576-A  is enacted to read:
§ 576-A. Greenhouse gas emissions reductions
 
1.  2030 annual emissions level.     By January 1, 2030, the State shall reduce net annual greenhouse gas emissions to at least 80% below the 1990 net annual greenhouse gas emissions level.
 
2.  Interim emissions levels.     The department shall adopt rules establishing interim net annual greenhouse gas emissions levels. The interim net annual greenhouse gas emissions levels must maximize the State's ability to meet the 2030 net annual greenhouse gas emissions level.
Sec. 9. 38 MRSA §577, as enacted by PL 2003, c. 237, §1, is repealed and the following enacted in its place:
§ 577. Action plan; long-term goal
 
1.  Long-term reduction goal.     The State's long-term reduction goal is to reduce net annual greenhouse gas emissions to an extent sufficient to minimize harmful effects of climate change. To accomplish this goal, reducing net annual greenhouse gas emissions to zero by 2050 may be necessary.
 
2.  Climate action plan update.     By December 1, 2019, the department, with input from stakeholders, shall update the State's climate action plan to meet the reduction levels in section 576-A. In updating the climate action plan, the department shall conduct a study examining pathways to reduce net annual greenhouse gas emissions consistent with the levels in section 576-A and with the long-term goal in subsection 1. The department shall analyze and report on the technical feasibility and cost-effectiveness of each pathway. The department shall submit the study to the joint standing committee of the Legislature having jurisdiction over natural resources matters, which is authorized to report out legislation related to the study. In identifying the preferred pathways to include in the updated climate action plan, the department shall give consideration to the following objectives:
 
A.  Lowering the total economic cost of energy to residents of and businesses in the State, including the economic cost of energy imports;
 
B.  Effectively using natural solutions to reduce net annual greenhouse gas emissions, such as using forests and agricultural lands in the State; and
 
C.  Ensuring that all sectors and regions of the State and the broadest group of residents benefit from reaching the levels in section 576-A and the long-term goal in subsection 1, with consideration to economic, quality-of-life and public health benefits.
Sec. 10.  38 MRSA §577-A  is enacted to read:
§ 577-A. Emission standards
By January 1, 2020, the board shall establish by rule emission standards limiting and regulating in a just and equitable manner the amount of greenhouse gases that may be emitted to the air. The emission standards must be designed to achieve and maintain the reduction levels in section 576-A.
Prior to the establishment of emission standards under this section, the board shall hold a public hearing in accordance with Title 5, chapter 375. The board shall solicit and consider all available information concerning the existing greenhouse gas emissions and their nature, amount and sources; the effect of the emissions upon the climate; the availability, effectiveness and cost of control apparatus to prevent and control such emissions; and such other evidence as in the board's judgment will enable it to determine and establish emission standards that will achieve and maintain the reduction goals specified in section 576-A.
To achieve the emission standards, the board shall by rule, or by air emission license conditions, establish limits on the amount of greenhouse gas emissions for individual sources or for source categories. The rule or license condition must state the date upon which the limit becomes effective. In establishing the date, the board shall consider the degree of existing greenhouse gas emissions, the length of time necessary to inform persons affected by the limit, the time needed by the board to implement effective controls and the time needed by persons affected to design and install emission control apparatus to comply with the limit.
Rules adopted pursuant to this section are major substantive rules as defined in Title 5, chapter 375, subchapter 2-A.
Sec. 11. 38 MRSA §578, as amended by PL 2013, c. 415, §5, is further amended to read:
§ 578.Progress evaluation
By January 1, 2006 and by that date every 2 years thereafter, theThe department shall evaluate the State's progress toward meeting the reduction goalslevels specified in section 576, review the cost-effectiveness of the actions taken toward meeting the reduction goals and shall amend the action plan as necessary to ensure that the State can meet the reduction goals576-A and in rules adopted pursuant to section 576-A, subsection 2, the effectiveness of emission standards established pursuant to section 577-A and the State's progress toward implementing the climate action plan in section 577. The department shall submit a report of its evaluation to the joint standing committee of the Legislature having jurisdiction over natural resources matters and the joint standing committee of the Legislature having jurisdiction over utilities and energy matters by January 1, 20162022 and by that date every 2 years thereafter. The joint standing committee of the Legislature having jurisdiction over natural resources matters is authorized to report out legislation relating to the evaluation to the second regular session of any Legislature. The joint standing committee of the Legislature having jurisdiction over utilities and energy matters may make recommendations to the joint standing committee of the Legislature having jurisdiction over natural resources matters regarding that legislation. Starting no earlier than January 1, 2008, the department may recommend to the joint standing committee of the Legislature having jurisdiction over natural resources matters that the reduction goals specified in section 576 be increased or decreased.
Emergency clause.  In view of the emergency cited in the preamble, this legislation takes effect when approved.
 
SUMMARY
This bill provides that by January 1, 2030 the State must reduce net annual greenhouse gas emissions to at least 80% below the 1990 net annual greenhouse gas emissions level. It directs the Department of Environmental Protection to establish interim net annual emissions levels and to monitor and report on gross and net annual greenhouse gas emissions. It directs the department to update the State's climate action plan and evaluate the State's progress toward meeting the reduction levels. It requires the Board of Environmental Protection to establish greenhouse gas emission standards for individual sources or categories of sources.