Sen. Lawrence introduces bill to create a cost-effective mechanism to promote energy efficiency

AUGUSTA – On Thursday, Sen. Mark Lawrence, D-Eliot, introduced a bill that would create a cost-effective mechanism for tenants and property owners to invest in an energy-efficient way to heat and cool their homes. LD 1264, “An Act To Allow Owners and Renters To Use Future Electric Bill Payments To Finance Heat Pumps,” was the subject of a public hearing before the Legislature’s Energy, Utilities and Technology Committee.

“Heat pumps have a large upfront cost, which may deter some people, especially renters, to consider switching, despite its environmental benefits and cost-savings in the long-term,” said Sen. Lawrence. “LD 1264 would account for this dilemma, with a creative financing option.”

LD 1264 would permit owners or renters of a property to finance the purchase of their heat pump, by the utility company charging interest on customers’ future electric bill payments.

The Governor’s Energy Office testified in support of the bill. Melissa Winne, Energy Policy Analyst for the office said:

“As was recognized by the Maine Climate Council’s Climate Action Plan, Maine Won’t Wait, accomplishing the state’s clean energy and climate goals will require leveraging a variety of funding sources and innovative financing mechanisms. On-bill financing is one such innovative financing mechanism that helps consumers finance the upfront cost of energy efficiency and renewable energy products, which is often a significant barrier particularly for low-to-moderate income households.”

The bill faces further action in committee.

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