An Act To Ensure and Encourage the Generation of Electricity from Renewable Resources
Maine Legislature, Session 121, LD 1312
Committee: Utilities and Energy
Sponsors: COLWELL, WESTON, BLISS, COWGER, FLETCHER, KOFFMAN, MILLS, BLAIS, HALL, KNEELAND
Amends: 35-A MRSA §3203, 35-A MRSA §3210, 35-A MRSA §3210-A, 35-A MRSA §3212

Legislative Document 
No. 1312 
H.P.966 
House of Representatives, March 11,2003 
An Act To Ensure and Encourage the Generation of Electricity from 
Renewable Resources 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by Speaker COLWELL of Gardiner. 
Cosponsored by Senator WESTON of Waldo and 
'7Jl~1?1.~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: BLISS of South Portland, COWGER of Hallowell, FLETCHER of Winslow, 
KOFFMAN of Bar Harbor, MILLS of Cornville, Senators: BLAIS of Kennebec, HALL of 
Lincoln, KNEELAND of Aroostook. 
Print~d on recycled pa~r 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 35-A MRSA §3203, sub-§2, ,D, as amended by PL 1999, c. 
398, Pt. J, §1, is further amended to read: 
D. 
Evidence 
of 
the 
ability 
resource 
portfolio 
requirement 
~;n9 3210-A: 
to 
satisfy 
established 
the 
renewable 
under 
section 
Sec. 2. 35-A MRSA §3210, as amended by PL 1999, c. 372, §§l 
and 2 and c. 398, Pt. I, §§1 to 3, is repealed. 
Sec.3. 35-A MRSA §3210-A is enacted to read: 
§3210-A. 
Renewable resources 
1. 
Policy. 
In order to ensure 
a 
secure, 
adequate 
and 
reliable 
supply 
of 
electricity for 
state 
residents 
and 
to 
maintain and increase the State's use of renewable and indigenous 
resources, it is the policy of this State to encourage the 
generation of electricity from renewable sources and to diversify 
electricity production on which residents of this State rely in a 
manner consistent with this section. 
2. 
Eligible renewable resource. 
"eligible 
renewable 
resource" 
means 
facility that: 
As used in this section, 
an electrical generation 
A. 
Generates power in this State or generates power that is 
physically delivered to consumers in this State: and 
B. 
Does 
not 
exceed 
megawatts 
in total generating 
capacity, unless otherwise indicated, and that relies on one 
or more of the following fuel sources: 
(1) 
Fuel. cells 
that 
use 
hydrogen 
produced 
by 
electricity generated by a renewable fuel: 
(2) 
Tidal power: 
(3) 
Solar arrays and installations: 
(4) 
Wind power: 
(5) 
Geothermal energy: 
(6) 
Hydroelectricity with a 
capacity that does not 
exceed 30 megawatts; 
(7) 
Biomass; 
Page l-LRI721(1) 
(8) 
Landfill gas: or 
(9) 
Municipal 
solid 
waste 
in 
conjunction 
with 
recycling. 
If an electrical generation facility relies on a renewable 
fuel 
and 
a 
nonrenewable 
fuel 
for its output, 
and 
the 
nonrenewable fuel accounts for more than 10~ of its output, 
only that output attributable to the renewable fuel may be 
considered an eligible renewable resource. 
A gualifying facility under this subsection that otherwise meets 
the reguirements of paragraphs A and B may not be considered an 
eligible renewable 
resource if that facility is selling its 
electrical output to a transmission and distribution utility and 
is being paid a rate for energy, or energy and capacity, that 
exceeds 
the 
average 
New 
England 
independent 
system operator 
market energy clearing price for the preceding year by an amount 
egual to or greater than $20 per megawatt hour. 
3. 
Portfolio requirements. 
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: 
A. 
No 
less than 
30~ of its annual portfolio of supply 
sources for its retail electricity sales in this State is 
accounted 
for 
by 
eligible 
renewable 
resources. 
The 
reguirement in this paragraph may be referred to as a "tier 
reguirement": and 
B. 
Beginning March 1, 2005, no less than 0.5~ of its annual 
portfolio of supply sources for its retail electricity sales 
in this 
State 
is 
accounted 
for 
by 
eligible 
renewable 
resources 
that were 
constructed after January 
1, 
2002. 
Incremental 
generation 
from 
increased 
efficiency 
or 
additions 
of 
capacity 
to 
existing 
eligible 
renewable 
resources after this date must be considered eligible to 
meet tier 2 reguirements. 
This percentage increases o. 5~ 
~r year until it reaches 
5~ in 2014. 
This reguirement must 
remain at 
5'l-o unless the commission makes a 
recommendation 
that it should 
be 
increased. 
The 
reguirement 
in this 
paragraph may be referred to as a "tier 2 reguirement." 
If a competitive electricity provider represents to a customer 
that the provider is selling to the customer a portfolio of 
supply sources that exceeds the reguirements of paragraph A or B, 
the resources necessary to supply the excess may not be applied 
to meet the reguirements of paragraph A or B. 
I 
A competitive electricity provider may meet all or part of its 
tier 1 and tier 2 requirements under paragraphs A and B by making 
an alternative compliance payment to the Maine Renewable Resource 
Fund established in subsection 4. 
The payment to meet the tier 1 
requirement must be calculated by multiplying the unmet tier 1 
megawatt hour requirement by $20 per megawatt hour. 
The payment 
to meet the 
unmet tier 
requirement must 
be calculated by 
multiplying the tier 2 
megawatt hour 
requirement 
by $35 
per 
megawatt hour. 
• 
Maine Renewable Resource Fund. 
The commission by rule 
shall establish the Maine 
this subsection as "the 
Renewable Resource Fund, referred to in 
fund," which is a 
dedicated fund to 
support in-state eligible renewable resources, renewable resource 
research and development 
and 
to 
fund 
demonstration 
community 
projects using 
renewable 
energy technologies. 
The 
commission 
shall administer the fund. 
A. 
Money collected from a competitive energy supplier as an 
alternative compliance payment pursuant to subsection 3 must 
be deposited in the fund. 
B. 
The commission shall disperse the money in the fund as 
follows: 
(1) 
Ninety-five 
percent 
of 
the 
money 
must 
be 
distributed equally to all in-state eligible renewable 
electrical generation facilities as a per kilowatt-hour 
production incentive; and 
(2) 
Five percent of the money must be used to fund 
renewable 
resource 
research 
and 
development 
at 
the 
University of Maine System, the Maine Maritime Academy 
or the Maine Technical College System and demonstration 
community projects using reneKaL:::'", energy technologies. 
Rules adopted under this subsection are major substantive rules 
as defined in Title 5, chapter 375, subchapter 2-A. 
Sec. 4. 35-A MRSA §3212, sub-§4, ~C, as enacted by PL 2001, c. 
528, §1, is amended to read: 
C. 
Beginning 
March 
1, 
2005, 
should 
any 
standard-offer 
provider selected by the commission pursuant to subsection 2 
be required to offer at least one standard-offer service 
that is composed entirely of eligible renewable resources as 
defined in section ~61Q 3210-A? 
SUMMARY 
This 
bill 
amends 
the 
laws 
governing 
electric 
industry 
restructuring as 
they relate to 
the 
30% 
renewable portfolio 
standard. 
The bill defines "eligible renewable resource" to mean 
an electrical generator facility that relies on one or more of 
the 
following 
fuel 
sources: 
fuel 
cells 
that 
use 
hydrogen 
produced by the electricity generated by a renewable fuel; tidal 
power; 
solar arrays and installations; 
wind power; 
geothermal 
energy; hydroelectricity with a capacity that does not exceed 30 
megawatts; 
biomass; landfill gas; or municipal solid waste in 
conjunction with recycling. 
The bill requires that, beginning 
March 1, 2005, 
no less than 0.5'<-0 of supply sources for retail 
electricity sales in this State is accounted for by eligible 
renewable resources that are constructed after January 1, 2002. 
This percentage increases 0.5°1:> per year until it reaches 
5'<-0 in 
2014. 
The 
bill directs 
the 
Public Utilities 
Commission 
to 
establish the Maine Renewable Resource Fund to support eligible 
renewable resources in this State, renewable resource research 
and 
development 
and 
to 
fund 
demonst~ation community projects 
using renewable energy technologies.