An Act To Promote Economic Development in the State by Encouraging the Production of Electricity from Renewable and Indigenous Resources
Maine Legislature, Session 121, LD 1929
Committee: Utilities and Energy
Sponsors: LUNDEEN, KNEELAND, EDMONDS
Amends: 35-A MRSA §3210

Legislative Document 
No. 1929 
H.P.1429 
House of Representatives, March 16,2004 
An Act To Promote Economic Development in the State by 
Encouraging the Production of Electricity from Renewable and 
Indigenous Resources 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
17/~ 
/J7.7J?d£~ 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative LUNDEEN of Mars Hill. (GOVERNOR'S BILL) 
Cosponsored by Senator KNEELAND of Aroostook and 
Representative: DUGA Y of Cherryfield, Senator: EDMONDS of Cumberland. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 35-A MRSA §3210. sub-§I. as amended by PL 1999, c. 
398, Pt. I, §l, is further amended to read: 
1. 
Policy. 
In order to ensure an adequate, 
secure and 
reliable supply of electricity for Maine residents, to encourage 
economic 
development 
opportunities 
in this 
State, 
to 
reduce 
greenhouse gas 
emissions 
from 
the State's electricity supply 
portfolio and to eReelu:a\3"e maintain and increase the use of 
renewable, efficient and indigenous resources, it is the policy 
of this State to encourage the generation of electricity from 
renewable 
and efficient sources 
and 
to diversify electricity 
production on which residents of this State rely in a 
manner 
consistent with this section. 
Sec. 2. 35-A MRSA §3210, sub-§2, 1fC, as repealed and replaced 
by PL 1999, c. 398, Pt. I, §2, is repealed and the following 
enacted in its place: 
C. 
"Renewable 
resource" 
means 
a 
source 
of 
electrical 
generation whose total power production capacity does not 
exceed 100 megawatts and that relies on one or more of the 
following: 
(1) Fuel cells; 
(2) Tidal power; 
(3) Solar arrays and installations; 
(4) Wind power installations, as long as at least 50
0b 
of the power is generated on land owned by a tribe that 
was federally recognized after January 1, 1979; 
(5) Geothermal installations; 
(6) Landfill gas; 
(7) Hydroelectric generators; 
(8) Biomass generators; or 
(9) 
Generators 
fueled 
by 
municipal 
solid waste 
in 
conjunction with recycling. 
Sec. 3. 35-A MRSA §3210, sub-§3, as amended by PL 1999, c. 
398, Pt. 
1, §3, is repealed and the following enacted in its 
place: 
Page l-LR28ll(l) 
3. 
Tier 
portfolio 
requirement. 
As 
a 
condition 
of 
licensing pursuant to section 3203, each competitive electricity 
provider in this State must demonstrate in a manner satisfactory 
to the commission that the competitive electricity provider meets 
the Tier 1 portfolio requirement. For purposes of this section, 
the Tier 1 portfolio requirement is met if at least 30% of each 
competitive electricity provider's portfolio of supply sources 
for retail electricity sales in this State is accounted for by 
eligible resources. 
Sec. 4. 35-A MRSA §3210, sub-§3-A is enacted to read: 
3-A. 
Tier 2 portfolio requirements. 
Beginning March 
1, 
2005, as a condition of licensing pursuant to section 3203, each 
competitive electricity provider in this State must demonstrate 
in a manner satisfactory to the commission that the competitive 
electricity provider meets the Tier 2 portfolio requirement. 
For 
purposes of this section, the Tier 2 portfolio requirement is met 
if 
at 
least 
1% 
of 
the 
competitive 
electricity 
provider's 
portfolio of supply sources for retail electricity sales in this 
State is accounted for by the resources listed in subsection 2, 
paragraph C, subparagraphs (1) to (6). 
This percentage increases 
by 1/2% each March 1st until it reaches 5% on March 1, 2013. 
Sec. 5. 35-A MRSA §3210, sub-§4, as amended by PL 1999, c. 
398, Pt. I, §3, is repealed. 
Sec. 6. 35-A MRS A §3210, sub-§§4-A to 4-D are enacted to read: 
4-A. 
Ineligible resources. 
If a 
competitive electricity 
provider represents to a customer that the provider is selling to 
the customer a portfolio of supply sources that includes more 
than 30°'b eligible resources, the resources necessary to supply 
more than 30% of that customer's load may not be applied to meet 
the aggregate 30% portfolio requirement. 
4-B. Alternative compliance mechanism. 
Beginning March 1, 
2005, a competitive electricity provider may meet all or part of 
the Tier 2 portfolio requirements under subsection 3-A by making 
an alternative compliance payment to the Maine Renewable Power 
Fund established in subsection 4-C. 
The payment to meet any 
unmet 
requirements 
is 
calculated 
by 
multiplying 
the 
unmet 
megawatt hour requirement for the Tier 2 portfolio requirement by 
$35 per megawatt hour. 
The commission shall determine whether, 
due to changes in electricity markets or the changes in law, the 
alternative compliance 
amounts 
established in this subsection 
should be increased or decreased in order to ensure that the 
goals of this section are being achieved at the lowest cost to 
ratepayers 
in 
the 
State. 
In making 
this 
determination 
the 
commission shall consider the total installed megawatts and the 
megawatt hours generated by efficient resources and renewable 
resources in the State. 
The commission shall submit its findings 
along with any 
recommended legislation to the joint standing 
committee of the Legislature having jurisdiction over utilities 
and energy matters by December 15, 2007. 
4-C. Maine Renewable Power Fund. 
There is established the 
Maine Renewable Power Fund, referred to in this subsection as 
"the fund." The fund is a nonlapsing fund. The commission shall 
administer the fund and disperse payments made by competitive 
electricity 
providers 
to 
meet 
any 
unmet 
Tier 
portfolio 
requirement 
to 
resources eligible 
for 
the 
Tier 
portfolio 
requirement in the form of per megawatt hour support payments. 
4-D. 
Credit 
trading. 
Beginning 
March 
1, 
2005, 
the 
commission 
shall 
allow 
competitive 
electricity 
providers 
to 
satisfy the portfolio 
requirements of subsection 
3-A 
through 
renewable energy credits if the commission determines that a 
reliable system of electricity attribute trading exists. 
Sec. 7. 35·A MRSA §3210, sub.§7 is enacted to read: 
7. Rules. 
The commission shall adopt rules necessary to 
implement 
this 
section, 
including 
rules 
governing 
the 
disbursement of money from the Maine Renewable Power Fund. 
Rules 
adopted pursuant to this subsection are major substantive rules 
pursuant to Title 5, chapter 375, subchapter 2-A. 
SUMMARY 
This bill amends the renewable resources portfolio standard 
to encourage economic development opportunities in the State, 
increase the State's use 
of 
renewable 
resources 
to generate 
electricity and reduce greenhouse gas emissions from the State's 
electricity supply portfolio.