Maine's recent legislative session has enacted a series of significant energy-related legal updates, poised to fundamentally reshape the state's energy planning, clean energy development, and market participation for years to come. These comprehensive reforms, largely effective in September 2025, range from recalibrating net energy billing to overhauling renewable portfolio standards and establishing a cabinet-level energy department, signaling a robust commitment to accelerating the state's clean energy transition.
A pivotal change involves the state's net energy billing (NEB) program, which will sunset for new entrants by December 31, 2025, under P.L. 2025, ch. 430. The legislation also reduces NEB compensation for existing commercial and industrial participants by approximately 20%, according to Office of the Public Advocate (OPA) estimates, and introduces a monthly project charge for certain kWh NEB participants beginning in 2026. While these changes do not impact behind-the-meter, on-site rooftop solar, they have drawn varied reactions from the clean energy development community, particularly concerning the compensation reduction for already financed and operational projects. The law further directs the newly established Department of Energy Resources to design a successor program specifically for front-of-the-meter distributed energy resources.
Complementing these changes, P.L. 2025, ch. 386 significantly revises Maine's renewable and clean resource procurement laws. By 2040, the state now mandates that 90% of retail electricity must originate from renewable sources, with an additional 10% from "clean resources." These Class III clean resources encompass Class I or IA resources, nuclear power plants, hydroelectric generators meeting specific criteria, or generation producing de minimis greenhouse gas emissions. The law strengthens portfolio requirements for Class IA and Class III resources from January 2031 through 2040 and introduces tradeable clean energy credits. Furthermore, it grants the Maine Public Utilities Commission (MPUC) authority to coordinate with other states for procurement and direct utilities regarding transmission capacity, capacity resources, and renewable or clean energy credits.
In a strategic move to centralize energy governance, P.L. 2025, c. 476 elevates the Governor's Energy Office (GEO) to the Maine Department of Energy Resources, a new cabinet-level agency. Governor Janet Mills emphasized that this new department will foster a long-term approach to Maine's energy needs, enhance responsiveness to emerging challenges, and strengthen regional and national energy partnerships. The Department is tasked with facilitating biennial renewable and clean energy procurements, issuing offshore wind power project RFPs, and continuing existing clean energy programs, bringing Maine into closer alignment with other New England states' energy governance structures.
Additionally, emergency legislation P.L. 2025, ch. 392 directs the MPUC to issue a new Request for Proposals (RFP) for eligible Class 1A resources, prioritizing projects on PFAS-contaminated lands or those minimizing the use of uncontaminated farmland or forested areas. Other notable updates include P.L. 2025, ch. 430, which mandates a legislatively-directed rate design for stranded cost recovery by October 2025, and Resolves 2025, ch. 67, directing the Department of Energy Resources to issue an RFI for a thermal energy networks program, focusing on geothermal and recovered thermal energy for low-emissions heating and cooling. These legislative actions collectively underscore Maine's aggressive push towards a decarbonized energy future.