An Act To Enhance Renewable Power
Maine Legislature, Session 121, LD 1053
Committee: Utilities and Energy
Sponsors: MILLS, SA VIELLO, SUSLOVIC
Amends: 35-A MRSA §3210, 35-A MRSA §3210-A

Legislative Document 
No. 1053 
H.P.770 
House of Representatives, February 26,2003 
An Act To Enhance Renewable Power 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by Representative MILLS of Cornville. 
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MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representatives: SA VIELLO of Wilton, SUSLOVIC of Portland. 
Primed on rel.:yc.:led paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 35·A MRSA §3210, sub·§l, as amended by PL 1999, 
c. 
398, Pt. I, §l, is further amended to read: 
1. 
Policy. 
In order t.o ensure an adequat.e and reliable 
supply of electricity for Maine residents and to encourage the 
use of 
renewableT-e!":£.i€ieR~ and indigenous resources, it is the 
policy of this State to encourage the generation of electricity 
from renewable aRe-effieieR~ 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Sec. 2. 35·A MRSA §3210, sub·§2, as repealed and replaced by 
PL 1999, c. 398, Pt. I, §2, is repealed and the following enacted 
in its place: 
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context 
otherwise 
indicates, 
the 
following 
terms 
have 
the 
following meanings. 
A. 
"Eligible 
renewable 
resource" 
means 
a 
source 
oJ 
electrical generation that: 
B. 
( 1) 
Generates power in the State or generates power 
that 
can 
physically 
be 
delivered 
to 
the 
State's 
consumers; and 
(2) 
Is a renewable resource, provided that: 
(a) 
If 
the 
renewable 
resource 
is 
also,_,m~\ 
qualifying 
facility 
and 
is 
selling 
electrical 
output to a transmission and distribution utili,\:.}'1 
it is not being paid a rate for energy, or for 
energy and capacity, that exceeds the avel'age New 
England independent system operator control area 
market 
energy clearing price for 
the 
preceding 
year by an amount equal to or greater than $20 per 
kilowatt hour; and 
(b) 
If the renewable 
resource relies for 
more 
than 10 90 of its output on sources of generation 
not 
listed 
in 
paragraph 
B, 
only 
output 
attributable to sources of generation listed in 
paragraph B qualifies as 
an eligible 
renewable 
resource under this paragraph. 
"Renewable 
resource" 
means 
a 
source 
of 
electrical 
generation: 
Page l-LR0840(1) 
(1) 
Whose total power production capacity does not 
exceed 100 
megawatts and that relies on one or more of 
the following fuel sources: 
(a) 
Fuel cells; 
(b) 
Tidal power; 
(c) 
Solar arrays and installations; 
(d) 
Wind power; 
(e) 
Geothermal; 
(0 
Biomass; 
(g) 
Landfill gas; or 
(h) 
Municipal solid waste in conjunction with 
recycling; or 
(2) 
Whose total power production capacity does not 
exceed 30 megawatts and that relies on hydroelectric 
generation. 
Sec. 3. 35-A MRSA §3210. sub-§§3 and 4, as amended by PL 1999, 
c. 398, Ft. I, 3, is further amended to read: 
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 no less than 30% of its portfolio of supply 
sources for retail electricity sales in this State is accounted 
for 
by 
eligible 
renewable 
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°0 
eligible 
renewable 
resources, 
the 
resources necessary to supply more than 30°'0 of that customer' s 
load may not be applied to meet the aggregate 
30% portfolio 
requirement. 
Rules 
adopted under this subsection are major 
substantive rules pursuant to Title 5, chapter 375, subchapter 
II-A 2-A. 
4. 
Report. 
In view of property tax benefits, developments 
In other states and the development of a market for tradable 
credits 
for 
satisfying eligible 
EeS9~Eee renewable 
resources 
requirements, 
the 
commission 
shall 
review 
the 
30% 
portfolio 
requirement and make a recommendation for any change to the joint 
standing committee of the Legislature having jurisdiction over 
utili ties and energy matters no later than 5 years after the 
beginning of retail competition. 
Sec. 4. 35·A MRSA §3210, sub.§5, as amended by PL 1999, 
c. 
372, §l, is further amended to read: 
5. 
Funding 
for 
research 
and 
development; 
communi ty 
demonstration projects. 
The commission by rule shall establish a 
program 
allowing 
retail 
consumers 
of 
electricity 
to 
make 
vOluntary 
contributions 
to 
fund 
eligible 
renewable 
resource 
research and 
development 
and 
to 
fund 
demonstration 
community 
projects using eligible renewable eBel''3'Y resource technologies. 
The State Planning Office shall administer the program. 
The 
program must: 
A. 
Include 
a 
mechanism 
for 
customers 
to 
indicate their 
willingness to make contributions; 
B. 
Provide 
that 
transmission 
and 
distribution utilities 
collect and account for the contributions and forward them 
to the commission; 
C. Provide for a distribution of the funds to the University 
of Maine System, 
the Maine Maritime Academy or the Maine 
Technical College 
System for eligible renewable 
resource 
research and development; and 
D. 
Provide for a distribution of the funds to Maine-based 
nonprofit 
organizations 
that 
qualify 
under 
the 
federal 
Internal 
Revenue 
Code, 
Section 
50l(c)(3), 
consumer-owned 
electric 
cooperatives, 
community-based 
nonprofit 
organizations 
and 
community 
action 
programs 
for 
demonstration community projects using eligible 
renewable 
eBel''3'Y resource technologies. 
Rules adopted under this sUbsection are routine technical rules 
pursuant to Title 5, chapter 375, subchapter ±±-A 2-A. 
Sec. 5. 35·A MRSA §3210, sub·§6, as enacted by PL 1999, c. 
372, §2, is amended to read: 
6. 
Fund. 
There 
is 
established the 
Voluntary 
Eligible 
Renewable Resource Fund, referred to in this subsection as the 
·'fund." 
The fund is a nonlapsing fund administered by the State 
Planning Office. 
All funds collected by the commission pursuant 
to subsection 5 must be deposited in the fund for distribution by 
the State Planning Office in accordance with subsection 5. 
The 
State Planning Office may seek and accept funding for the program 
established pursuant to subsection 5 from other sources, public 
or 
private. 
Any 
funds 
accepted 
for 
use 
in 
the 
program 
established pursuant to subsection 5 must be deposited in the 
fund. 
Sec. 6. 35-A MRSA §3210-A is enacted to read: 
§32l0-A. 
Electricity assessment; Maine Renewable Resource Fund 
1. 
Assessment. 
Beginning January L 
2004, 
a 
competi ti ve 
electricity provider shall pay, in accordance with this section, 
an assessment on its retail sales of electricity in this State at 
the following rates: 
A. 
On retail sales of electricity generated using coal, 
O.3¢ per kilowatt hour; 
B. 
On retail sales of electricity generated using oil, O.2¢ 
per kilowatt hour; and 
c. 
On retail sales of electricity generated using natural 
gas, 0.1¢ per kilowatt hour. 
2. 
Quarterly reports. 
A competitive electricity provider 
shall file with the commission, on a quarterly basis established 
by the commission, a report in such form as the commission may 
prescribe 
that 
states 
the 
amount 
of 
all 
sales 
subject 
to 
assessment under this section made during the preceding quarter 
and any other information the commission requires. 
3. 
Payment of assessment; audit. 
The assessment required 
under this section must be paid at the same time as the filing of 
the report required under subsection 2. 
The commission may by 
rule 
establish 
procedures 
to 
audit 
competitive 
electricity 
providers as necessary to ensure compliance with this section. 
4. 
Deposit. 
All money received by the commission pursuanL 
to this section must be deposited in the fund established 
~n 
subsection 5 and be used by the commission in accordance wi th 
subsection 6. 
S. 
Fund 
established. 
There 
is 
established 
the 
Renewable Resource 
Fund, 
referred to in 
fund." 
The 
fund 
~s 
a 
nonlapsing 
fund 
commission. 
The 
fund 
receives 
revenues 
assessment 
imposed under this section. 
balances must be credited to the fund. 
this section as 
administered 
by 
generated 
from 
All interest on 
Maine 
"the 
the 
the 
fund 
6. 
Use of fund. 
The commission shall establish by rule 
~n 
accordance with this subsection a 
program to use the fund to 
reduce the cost to consumers of electric energy generated in this 
State using eligible renewable resources. 
For purposes of this 
subsection, "eligible renewable resources" has the same meaning 
as in section 3210, subsection 2. 
The commission may use up to 
5% 
of the fund for costs of administering this section. 
All 
remaining amounts in the fund must be distributed as follows: 
A. 
Ninety percent to in-state eligible renewable resource 
generation 
facilities 
as 
a 
per-kilowatt-hour 
production 
incentive; and 
B. 
Ten percent to fund eligible 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 eligible renewable 
resource technologies. 
1. 
Rules. 
The commission shall adopt rules necessary to 
implement this section. 
Rules adopted pursuant to this section 
are routine technical rules as defined in Title 5, chapter 375, 
subchapter 2-A. 
SUMMARY 
This bill imposes, beginning January I, 2004, assessments all 
the retail sale of electricity generated by the use of coal, oil 
and natural gas and directs the Public Utilities Commission to 
establish by 
rule 
a 
program 
to 
use 
the 
revenues 
from 
this 
assessment 
to 
reduce 
the 
cost 
to 
consumers 
of 
electricity 
generated by the use of renewable resources. 
This bill also 
changes the name of the Renewable Resource Fund to the Voluntary 
Eligible Renewable Resource Fund to distinguish it from the Maine 
Renewable Resource Fund created by the bill.