An Act To Promote Economic Development and Sustainable Energy
Maine Legislature, Session 122, LD 1065
Committee: Utilities and Energy
Sponsors: BRENNAN, BLISS, BARTLETT, COWGER, MITCHELL, BRAUTIGAM, CURTIS, FITTS, KOFFMAN, PINGREE
Amends: 35-A MRSA §3210

Legislative Document 
No. 1065 
S.P.382 
In Senate, March 1, 2005 
An Act To Promote Economic Development and Sustainable Energy 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by Senator BRENNAN of Cumberland. 
Cosponsored by Representative BLISS of South Portland and 
JOY J. O'BRIEN 
Secretary of the Senate 
Senators: BARTLETT of Cumberland, COWGER of Kennebec, MITCHELL of Kennebec, 
Representatives: BRAUTIGAM of Falmouth, CURTIS of Madison, FITTS of Pittsfield, 
KOFFMAN of Bar Harbor, PINGREE of North Haven. 
Pnnted on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. I. 35-A MRSA §3210. sub-§I. as amended by PL 1999, c. 
398, Pt. I, §1, 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 
eBeEnl);'a~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 as repealed and replaced 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 I, §2, is repealed and the following 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: 
J4 
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
" 
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. I, §3, is repealed and the following enacted in its 
place: 
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. 
LO 
Sec. 4. 35-A MRSA §3210, sub-§3-A is enacted to read: 
L2 
3-A. 
Tier 
portfolio requirement. 
Beginning March 
1~ 
2006, 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, 2014. 
Sec. 5. 35-A MRSA §3210. sub-§4, as amer.ded by PL 1999, c. 
398, Pt. 1, §3, is repealed. 
Nl 
Sec. 6. 35-A MRSA §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 
j2 
the customer a portfolio of supply sources that includes more 
than 30°" 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. Alternatiye compliance mechanism. 
Beginning March 1, 
2006, a competitive electricitL-P-rovider may meet all or part of 
the Tier 2 portfolio l'equirement 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 
'.! 2 
unmet 
requirements 
is 
calculate' 
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, 
th~ 
'Hi 
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 LegigatJJre JJ._Q.ving jur_isdiction over utilities 
and energy matters by December 15, 2008. 
4-C. Maine Renewable Power Fv.n,Q.. 
There is established the 
Maine 
Renewa.QJ~owl'!r Fund, 
r~_ferred to in this subsection as 
"the fund." The fund is a nonl'll?§ing fund. The commission shall 
administer the fund and disburse money in the fund from payments 
made by competitive electricity ~roviders to meet any unmet Tier 
portfolio reQuirement to resources eligible for the Tier 
portfolio reQuirement in the form of per-megawatt-hour suppor-t 
payments. 
4-D. 
Credit 
trading_. __ 
B~ginning 
March 
1, 
2006, 
the 
commission 
shall 
allow 
competitive 
electricity 
providers 
to 
satisfy 
the 
portfolio 
reQuirement 
of 
subsection 
3-A 
through 
renewab~energy cr:l'!di ts if the 
commi_s.9ion determines that 
a 
reliable system of electricity attribute trading exists. 
Sec. 7. 35·A MRS A §3210. sub.§8 is enacted to read: 
8. 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 
J4 
This bill amends the renewable resources portfolio standard 
J6 
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.