Maine wrapped up its legislative session last week, leaving the industry in great anticipation of what will ultimately become law as everyone awaits the Governor’s signatures, amendments, and vetoes. While several positive proposals did pass, the most consequential changes were included in LD 1777, An Act to Reduce Costs and Increase Customer Protections for the State’s Net Energy Billing Programs, which eliminates Maine's Net Energy Billing (“NEB”) program and and establishes a grid fee on kilowatt-hour projects.  

If signed into law, LD 1777 would impose unacceptable retroactive changes to compensation on existing projects and facilities that have already executed contracts and  would have a significant chilling effect on solar in Maine, sending a red flag to investors that Maine is not a safe place to do business. 

This sort of bad-faith policy change could lead to a major decrease in solar investment and overall business confidence in the state. In a region as dense as New England, state-level decisions can easily affect the adjacent states who operate in a joint energy market and historically see plenty of interstate commerce and collaboration. 

This bill also dangerously reinforces the false narrative that renewable energy is the cause of high electricity prices at a time when we instead need to limit the use of volatile fossil fuels and bolster renewable energy programs that ultimately save ratepayers money.

In better news, LD 1270, An Act to Establish the Department of Energy Resources, will elevate the Governor’s Energy Office to a cabinet-level Department of Energy Resources, transferring all its responsibilities to the new Department and providing authority for regular energy procurement. This is a positive outcome for the industry and Governor Mills is expected to sign the bill into law.

LD 597, An Act to Direct the Public Utilities Commission to Conduct Procurements for Energy or Renewable Energy Credits also passed. The bill updates the state’s “contaminated lands” procurement, calls for an existing resource procurement, and introduces a negative pricing element. Passing as “emergency legislation,” this bill passed with a two-thirds vote, securing its future and indicating widespread support. 

The outcomes of this year’s legislative session in Maine offer a cautionary tale to clean energy advocates and industry alike. While federal support for the clean energy industry erodes, we must work to ensure that New England states expand their commitment to development of renewable energy.