What You Need to Know about Maine’s New Department of Energy Resources

Maine just launched a new cabinet-level energy policy office.

Last month, Governor Janet Mills signed LD 1270 into law, creating the new Maine Department of Energy Resources. This cabinet-level agency will lead energy policy and coordination in the state. The move has potentially significant implications for energy priorities in the state, which are of interest to developers, utilities, municipalities, and energy consumers.

Familiar Face

Until now, Maine was the only state in New England, and one of ten states nationally, without a dedicated energy department. For decades, Maine’s energy policy has been housed within the Governor’s Energy Office (GEO), an executive office that lacked full agency status and procurement authority.

Elevating the office to a full department—with a commissioner, cabinet-level status, and added authority—signals a shift in the state towards a more integrated and coordinated energy policy approach.

This new Department of Energy Resources will retain and build on GEO’s responsibilities, namely:

• Coordinating state energy planning and policy with state government agencies, stakeholders, and regional and federal partners.
• Administering competitive procurements for cost-effective energy sourcing approved by the Maine Public Utilities Commission.
• Developing strategies for improved energy affordability and reliability.

What’s Changing for the Private Sector?

Perhaps the most significant change is the Department’s expanded procurement authority. The newly established Department will play a bigger role in competitive solicitations for energy resources to advance the state’s energy goals.

The Department’s creation also lays the groundwork for more rigorous long-term planning, improved coordination around federal funding opportunities, and a new approach to promoting project development and the state’s overall energy strategy. For companies navigating recent shifts in federal and state energy policy, the added levels of agency authority and focus may be welcome developments.

What’s Next?

The Department is expected to formally launch later this year. The Governor will appoint a commissioner, subject to confirmation by the Legislature. In the months ahead, here are some expected areas of focus:

• The structure and timeline for competitive energy procurements.
• The Department’s plans for coordinating with state agencies, regional and national partners, and stakeholders.
• Opportunities for public and private engagement as the new department sets the state’s long-term energy priorities.

Our team will continue to monitor developments as the Department of Energy Resources becomes operational. For questions about how this shift may impact your business or project pipeline, please reach out to a member of Verrill’s energy group.