Governor Mills Signs Legislation to Establish Maine Department of Energy Resources

Recognizing the importance of energy to Maine people and the state's economy, the new department will focus on making energy more affordable and reliable, with new authority to procure energy from clean, cost-effective sources.

Governor Janet Mills has signed LD 1270 to create the Maine Department of Energy Resources, a new cabinet-level department that will lead State-level energy policy and programs, coordinate across State agencies and regional partners, engage with stakeholders, and address energy opportunities and challenges for Maine.

The Department, proposed by the Governor earlier this year, will address complex energy challenge facing Maine, such as affordability, grid reliability, and aging infrastructure, while planning for a strong and secure energy future. The creation of the department was a budget-neutral initiative during a tight budget cycle.

"Maine families and businesses deserve access to energy they can count on and afford -- and establishing the Maine Department of Energy Resources is an important step toward an energy future that works for Maine people,"said Governor Janet Mills. "This 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 Department of Energy Resources will expand upon the work of the Governor's Energy Office (GEO), which currently leads state energy planning and policy coordination. Building on the Maine Energy Plan released earlier this year by GEO, the Department will advance strategies to reduce costs, strengthen reliability, and improve resilience across Maine's energy systems. Consistent with practices in other states, the Department is also authorized to conduct competitive energy procurements to advance new, cost-effective clean energy projects that are approved by the Maine Public Utilities Commission (PUC).

"This is a major milestone for Maine's energy future. By creating a cabinet-level energy department, Maine is preparing not just for the challenges of today, but for what lies ahead," said Dan Burgess, Director of the Governor's Energy Office. "Energy decisions affect the cost and reliability of power for every Maine household and business. The new department can help ensure those decisions are carefully planned, future-ready, and focused on Maine's needs."

Maine's energy office, originally called the Maine Office of Energy Resources, was established by law more than 50 years ago in 1973. Until now, Maine was the only state in New England, and only one of a handful of states in the U.S., with a designated energy office located within its Governor's office. More than 40 states have energy offices with cabinet-level leadership. Elevating the office to a department was a priority for previous Maine governors. During the LePage Administration in 2017, House Republicans put forward legislation to remove the Energy Office from the Governor's Office and establish an energy seat in the Cabinet.

LD 1270 was supported by a wide range of stakeholders and business and environmental organizations at a public hearing before the Maine Legislature's Energy, Utilities, and Technology Committee during the 132nd session.

"Establishing the Maine Department of Energy Resources recognizes the essential role energy plays in people's daily lives," said Senator Mark Lawrence and Representative Melanie Sachs, co-chairs of the Legislature's Energy, Utilities and Technology Committee. "It stands as one of the most important outcomes of this legislative session for Maine's energy future. The new department will strengthen Maine's ability to plan for the long-term while being responsive to future needs by laying out a transparent framework for procuring adequate energy supply while controlling energy costs and building Maine's energy economy."

"This bill is not about creating something new for its own sake," said Representative Gerry Runte, the sponsor of the bill. "It's about organizing what we already do more effectively, so our policy goals are implemented through a clear, coordinated, and accountable structure. This will better equip the State to evaluate emerging technologies, respond to market changes, and achieve policy objectives with greater clarity and consistency."

"Creating this new department is an important step that reflects the complexities of the energy system and its importance to Maine's economy and future,"said Patrick Woodcock, President and CEO of the Maine State Chamber of Commerce. "Elevating energy to the Governor's Cabinet will strengthen coordination, improve planning, and provide clear energy policy leadership for the state. The Maine State Chamber of Commerce appreciates the Governor's leadership and looks forward to collaborating on energy solutions that support affordability, reliability, and economic growth."

"Governor Mills' energy leadership through smart policy and planning continues with the creation of the Maine Department of Energy Resources, a move that elevates and strengthens the role of Maine's energy office," said David Terry, President of the National Association of State Energy Officials. "Through this legislation, Maine joins a growing number of states where leaders on both sides of the aisle are elevating state energy offices to support cost-effective and cleaner energy solutions."

The impact of energy prices and reliability on Maine people is significant. Maine is the most heating fuel reliant state in the nation and spends more than $4.5 billion on imported petroleum annually, including heating oil and gasoline. A recent study on the potential impact of energy tariffs (PDF) commissioned by GEO found that Maine people spend an estimated 60 percent more on household space and water heating than the average American, and energy imports represent more than half of Maine's total energy consumption. The threat of tariffs on imported energy along with increased storm frequency and outages are just a few of the challenges currently facing Maine's energy system.

In recent years, the Maine Legislature has expanded GEO's responsibilities, and the office has been awarded more than $200 million in Federal funding to support grid resilience and innovation, energy efficiency, and workforce development, among other key investments for Maine. The new Maine Department of Energy Resources will continue GEO's core duties related to energy resources, policies, planning, data, markets, energy security, and program implementation. It will also maintain coordination with state agencies, the PUC, and regional and federal partners.

Under the new legislation, the department's expanded procurement authority will create a transparent, data-driven process with clear timelines, defined roles for the department and the PUC, and a consistent review standard. This approach will help lower costs for ratepayers, ensure a reliable and diverse energy supply, attract investment, and advance Maine's economic and energy goals.

The Department is expected to formally launch later this year. As with all cabinet-level positions, the Department will be led by a commissioner appointed by the Governor and confirmed by the appropriate legislative committee and Legislature.