The most recent Maine legislative session produced a slate of new major energy-related legal updates. Ranging from sunsetting and recalibrating net energy billing to overhauling renewable portfolio standards and creating a cabinet-level energy department, these updates will reshape energy planning, clean energy development, and market participation for years to come. This post summarizes these changes and highlights upcoming procurements, rulemakings, requests for information, and market signals of particular interest to energy developers and practitioners. Unless enacted as emergency legislation, these laws go into effect in September.
Maine Sunsets its Net Energy Billing Program
P.L. 2025, ch. 430 significantly overhauls Maine's net energy billing ("NEB") program. The law, in part: establishes a cut-off date of December 31, 2025, for new entrants to NEB programs; reduces NEB compensation for existing commercial and industrial NEB program participants; implements a monthly fee (referred to as a "monthly net energy billing project charge") beginning in 2026 for certain kWh NEB program participants; and directs the GEO to design an NEB successor program to encourage the development of "front of the meter distributed energy resources." The changes to the NEB program do not affect behind the meter, on-site rooftop solar.
According to estimates by the Office of the Public Advocate ("OPA"), the reduction in compensation for participating solar developments amounts to approximately 20 percent. Reactions to the changes to the NEB program from the clean energy development community vary, but critiques generally focus on the compensation reduction and the new monthly fee applicable to projects that, in many cases, are fully financed and fully operational.
Updates to Renewable and Clean Resource Procurement Laws Increase Maine's RPS and Create New Clean Energy Standard
P.L. 2025, ch. 386 revises the state's policy targets for retail electricity sales, establishes Class III resources, revises portfolio requirements for Class IA and Class III resources, and provides the MPUC with authority to implement changes to the law. More specifically:
- The law amends the state's policy targets applicable to retail electricity from 100 percent renewable sources by 2050 to require that by 2040, 90 percent of retail electricity must come from renewable sources and 10% will come from "clean resources." Clean resources are defined to mean a Class III resource, meaning sources of generation physically delivers power into the New England Power Pool or to the Maritimes Control Area that (i) is a Class I or Class IA resources; (ii) relies on a nuclear power plant or hydroelectric generator, subject to certain requirements; or (iii) generates electricity in a manner that produces no more than de minimis greenhouse gas emissions.
- The law strengthens portfolio requirements for Class IA resources (and creates requirements for and Class III resources) beginning in January 2031 and continuing through 2040; creates clean energy credits, representing generation associated with Class III resources, that are tradeable and similar in nature to renewable energy credits and can satisfy applicable portfolio requirements; and provides that alternative compliance payments may also satisfy these portfolio requirements.
- The law provides the MPUC with authority to (i) coordinate with one or more states to procure transmission capacity, capacity resources, renewable energy credits, or clean energy credits; and (ii) direct the utilities to sell, enter into long-term contracts for, or take other actions regarding transmission capacity, capacity resources, renewable energy credits, or clean energy credits. The law also directs the MPUC to initiate rulemaking to amend rules associated with resource adequacy and to implement changes made through this law.
GEO Elevated to Cabinet-level Department of Energy Resources
P.L. 2025, c. 476 elevates the GEO to a new cabinet-level agency, the Maine Department of Energy Resources (the "Department"), and establishes the Department's powers and responsibilities, including statewide energy planning, advancing and administering various clean energy procurements and climate efforts, and coordinating with other state agencies on energy-related projects. Governor Janet Mills noted that the "new department will allow the State to build a long-term approach for Maine's energy needs, respond quickly to emerging challenges, and strengthen regional and national energy partnerships to benefit our people and economy."
The law directs the Department to, in part:
- facilitate renewable and clean energy procurements every two years, subject to certain prescribed eligibility, evaluation, and contract requirements;
- issue offshore wind power project RFPs;
- continue GEO's Maine Energy Resources Development Program and Distributed Solar and Energy Storage Program; and
- engage in rulemaking to implement its various programs and statutory directives.
The Department will formally launch later this year, led by a commissioner to be appointed by the Governor and confirmed by the legislature. According to the state, the elevated status of the Department, as well as certain of its powers and duties, brings Maine into conformity with other New England states.
MPUC to Conduct Procurement for Energy or RECs from Class 1A Resources
P.L. 2025, ch. 392, enacted as emergency legislation, directs the MPUC to issue an RFP from eligible Class 1A resources with the same preference for generation projects located on PFAS-contaminated lands or that minimize the use of uncontaminated farmland or forested lands that the MPUC employed during a similar procurement terminated earlier this year (see MPUC Docket No. 2024-00235, Order, April 4, 2025). For more information on the RFP or related background, see MPUC Docket No. 2025-00203, Order, July 11, 2025.
Other Energy Law-related Updates
In addition to the new major energy-related laws discussed in this post, several other Maine energy legal updates are worth noting:
- P.L. 2025, ch. 430: This law, enacted as emergency legislation, directs the MPUC to order the implementation of a legislatively-directed rate design for the recovery of stranded costs beginning no later than October 1, 2025. For additional background on several years of related stranded cost rate design investigations at the MPUC, see MPUC Docket No. 2024-00137, Order (April 30, 2025).
- P.L. 2025, ch. 123: This law allows the OPA to access and review information from public utilities, standard-offer service providers, and competitive electricity providers in furtherance of the OPA's goal of ratepayer protection.
- Resolves 2025, ch. 51: This law provides legislative authorization for the final adoption of a Maine Department of Environmental Resources major substantive rule, Chapter 379, establishing a regulatory framework for providing compensation for the impacts to high-value agricultural land from solar energy developments requiring a Site Law permit.
- Resolves 2025, ch. 57: This resolve directs the GEO to conduct a study regarding the future of electric transmission infrastructure in the state.
- Resolves 2025, ch. 67: This resolve directs GEO to issue an RFI regarding the creation of a thermal energy networks program in the state. The resolve contemplates that the thermal energy networks could be used for the purpose of providing low-emissions heating and cooling to 2 or more buildings with a focus on geothermal energy resources or recovered thermal energy.
We will continue to monitor developments related to the implementation of these laws, including regulatory proceedings, requests for information, and upcoming competitive procurements.
Foley Hoag summer associates Hamid Hoshmand, Logan Malik, and Brett Reilly contributed to this post.
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