An Act To Stimulate Demand for Renewable Energy Reported by the Majority from the Joint Standing Committee on Utilities and Energy pursuant to the Maine Revised Statutes, Title 5, section 3327, subsection 4. PnnteJ 011 recycled p:.tptr 7J1~ /J7.71!~
Maine Legislature, Session 123, LD 1920
Amends: 35-A MRSA §3210

Legislative Document 
No. 1920 
H.P. 1356 
House of Representatives, June 6, 2007 
An Act To Stimulate Demand for Renewable Energy 
Reported by the Majority from the Joint Standing Committee on Utilities and Energy 
pursuant to the Maine Revised Statutes, Title 5, section 3327, subsection 4. 
PnnteJ 011 recycled p:.tptr 
7J1~ 
/J7.71!~ 
MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 35-A MRSA §3210, sub-§2, ~A-l is enacted to read: 
A-I. 
"Alternative compliance payment rate" means a certain dollar amount per 
kilowatt-hour set by the commission that a competitive electricity provider may pay 
to the commission to satisfy the portfolio requirements of subsection 3-A. 
Sec. 2. 35-A MRSA §3210, sub-§2, ~-1 is enacted to read: 
B-1. 
"New renewable capacity resources" has the same meanmg as m section 
3210-C, subsection 1, paragraphs C and E. 
Sec. 3. 35-A MRSA §3210, sub-§2, ~-2 is enacted to read: 
B-2. 
"Renewable energy credit" means a tradable instrument that represents an 
amount of electricity generated from renewable capacity resources as defined in 
section 3210-C, subsection 1, paragraph E. 
Sec. 4. 35-A MRSA §3210, sub-§3-A is enacted to read: 
3-A. 
Portfolio requirements; new renewable capacity resources. 
Portfolio 
requirements for new renewable capacity resources are governed by this subsection. 
A. Except as provided in paragraph B, beginning January 1, 2008, 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 percentage of 
its portfolio of supply sources for retail electricity sales in this State accounted for by 
new renewable capacity resources is as follows: 
(1) One percent for the period from January 1, 2008 to December 31, 2008; 
(2) Two percent for the period from January 1, 2009 to December 31, 2009; 
(3) Three percent for the period from January 1, 2010 to December 31, 2010; 
(4) Four percent for the period from January 1, 2011 to December 31, 2011; 
(5) Five percent for the period from January 1, 2012 to December 31, 2012; 
(6) Six percent for the period from January 1, 2013 to December 31, 2013; 
(7) Seven percent for the period from January 1, 2014 to December 31, 2014; 
(8) Eight percent for the period from January 1, 2015 to December 31, 2015; 
(9) Nine percent for the period from January 1, 2016 to December 31, 2016; and 
(10) Ten percent for the period from January 1, 2017 to December 31, 2017. 
New renewable capacity resources used to satisfy the requirements of this paragraph 
may not be used to satisfy the requirements of section 3210, subsection 3. 
B. Suspensions of scheduled increases in the portfolio requirements as provided in 
paragraph A are governed by this paragraph. 
(1) If by March 31 st of the years 2010, 2012, 2014 and 2016 the commission 
detennines that investment in new renewable capacity resources in the preceding 
calendar years has not been sufficient for competitive electricity providers to 
meet the portfolio requirements under paragraph A and that the resulting use of 
renewable energy credits pursuant to subsection 8 or the alternative compliance 
payment mechanism pursuant to subsection 9, or both of these methods, has 
burdened electricity customers in the State without providing the benefits of new 
renewable capacity resources, the commission may suspend all or some of the 
future scheduled increases in the portfolio requirements under paragraph A. 
(2) 
If the commission finds that alternative compliance payments are made 
pursuant to subsection 9 in 3 consecutive calendar years, the commission shall 
temporarily suspend all or some of the future scheduled increases in the portfolio 
requirements under paragraph A. 
(3) 
If the commission suspends any scheduled increases in the portfolio 
requirements under paragraph A pursuant to subparagraph (1) or (2), the 
commission may resume increases, limited to no more than one percentage point 
per year over the previous year, in the portfolio requirements after a minimum of 
one year. 
C. 
No later than March 31, 2008 and annually thereafter, the commission shall 
submit a report regarding the status of new renewable capacity resources in the State 
and compliance with the portfolio requirements under paragraph A to the joint 
standing committee of the Legislature having jurisdiction over utilities and energy 
matters. The report must include, but is not limited to, a description of new renewable 
capacity resources available to meet the portfolio requirements under paragraph A, 
documentation of the loss of any existing renewable generation capacity in the State, 
the status of implementation of the new renewable capacity resources portfolio 
requirements, 
including 
any 
suspensions 
pursuant 
to 
paragraph 
B, 
and 
recommendations to stimulate investment in new renewable capacity resources. 
D. Retail electricity sales pursuant to a supply contract or standard-offer service 
arrangement executed by a competitive electricity provider that is in effect on the 
effective date of this subsection is exempt from the requirements of this subsection 
until the end date of the current term of the supply contract or standard-offer service 
arrangement. 
The commission shall adopt rules to implement this subsection. Rules adopted under this 
subsection are routine technical rules pursuant to Title 5, chapter 375, subchapter 2-A. 
Sec. 5. 35-A MRS A §3210, sub-§7, as enacted by PL 2003, c. 665, §l, IS 
amended to read: 
7. Information. The commission shall inform electricity consumers in this State of 
the benefits of electricity generated in this State using renewable resources and of the 
opportunities available in this State to purchase electricity that is generated using those 
resources, including, but not limited to, green power supply products and renewable 
energy credit products certified under section 3212-A. The commission may not promote 
any renewable resources over others. The commission may apply for, receive and expend 
grant money from the United States Department of Energy and other government 
T' 
agencies for this purpose. Notwithstanding section 3211-A, subsection 5, the commission 
also may use up to $100,000 per year from the conservation program fund established 
under section 3211-A, subsection 5 to support the purposes of this subsection. The 
commission may create or cause to be created a brand or logo to identify Maine 
renewable resources, including green power supply products and renewable energy credit 
products certified under 3212-A, to consumers. The commission shall register any mark 
or logo created pursuant to this subsection with the United States Patent and Trademark 
Office or in accordance with Title 10, chapter 301-A, or both. Any brand or logo created 
pursuant to this subsection may only be used in accordance with the purposes of this 
subsection as approved by the commission. 
Sec. 6. 35-A MRSA §3210, sub-§8, as enacted by PL 2005, c. 646, §L, IS 
amended to read: 
8. Credit trading. The commission shall allow competitive electricity providers to 
satisfy the portfolio requirements of subsection subsections 3 and 3_-A through the use of 
renewable energy credits if the commission determines that a relianle system of electrical 
attribute trading exists. 
Sec. 7. 35-A MRSA §3210, sub-§9 is enacted to read: 
9. Alternative cQmpliance payment; portfolio requirements for new renewable 
capacity resources. The commission shall allow competitive electricity providers to 
satisfy the portfolio requirements for new renewable capacity resources under subsection 
3-A through an alternative compliance payment mechanism in accordance with this 
subsection. 
A. The commission shall set the alternative compliance payment rate by rule and 
shall publish the alternative compliance payment rate by January 31 st of each year. In 
setting the rate, the commission shall take into account prevailing market prices, 
standard-offer service prices for electricity, reliance on alternative compliance 
payments to meet the requirements of subsection 3-A and investment in new 
renewable capacity resources in the State during the previous calendar year. 
B. 
The commission shall collect alternative compliance payments made by 
competitive electricity providers and shall deposit all funds collected under this 
paragraph in the Renewable Resource Fund established under subsection 6 to be used 
to fund research, development and demonstration projects relating to renewable 
energy technologies. 
The commission shall adopt rules to implement this subsection. Rules adopted under this 
subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A. 
Sec. 8. 35-A MRS A §3212-A is enacted to read: 
§3212-A. Green power options 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Green power supply" means electricity supply generated only from renewable 
capacity resources as defined in section 3210-C, subsection 1, paragraph E, except 
that the total power production capacity limit of 100 megawatts under section 3210, 
subsection 2, paragraph C does not apply to wind power installations. 
B. "Renewable energy credit" has the same meaning as in section 3210, subsection 2, 
paragraph B-1, except that the total power production capacity limit of 100 
megawatts under section 3210, subsection 2, paragraph C does not apply to wind 
power installations. 
2. Certification of products; information in bill inserts. Beginning July 1, 2008, 
information regarding the availability of green power supply products and renewable 
energy credit products that are certified by the commission may, at the option of the 
provider of the products and with the cooperation of the transmission and distribution 
utility, be presented through inserts in customer bills issued by transmission and 
distribution utilities. The costs of the inserts, including but not limited to printing and 
postage costs, are the responsibility of the provider of the product. The commission may 
define the criteria for certification of green power supply products and renewable energy 
credit products by order or by rule, and the commission may limit the criteria for 
certification for consumer protection and eligibility verification purposes. Rules adopted 
to impJement this subsection are routine technical rules as defined in Title 5, chapter 375, 
subchapter 2-A 
3._Repeal:..._This section is repealed Julv L 2010. 
Sec. 9. Report on green power options. No later than January 31, 2010, the 
Public Utilities Commission shall report to the joint standing committee of the 
Legislature having jurisdiction over utilities and energy matters regarding green power 
options that have been certified and promoted since July 1, 2008 pursuant to the Maine 
Revised Statutes, Title 35-A, section 3212-A. The report must include information 
regarding the number and type of products that have been certified by the commission, 
the extent to which information regarding such certified products has been presented 
through inserts in electric bills and available data on customer migration to green power 
options. 
Sec. 10. Appropriations and allocations. The following appropriations and 
allocations are made. 
PUBLIC UTILITIES COMMISSION 
Public Utilities - Administrative Division 0184 
Initiative: Provides funds for a part-time Utility Analyst position. 
OTHER SPECIAL REVENUE FUNDS 
2007-08 
2008-09 
POSITIONS - FTE COUNT 
0.250 
0.250 
Personal Services 
$18,361 
$25,958 
OTHER SPECIAL REVENUE FUNDS TOTAL 
$18,361 
$25,958 
SUMMARY 
Current law establishes as a policy of the State the goal of increasing the share of new 
renewable capacity resources as a percentage of the total capacity resources in this State 
by 10% by 2017. This bill implements that policy goal by establishing portfolio 
requirements for new renewable capacity resources, beginning at 1 % for calendar year 
2008 and increasing by one percentage point per year, ending at 10% in 2017. 
The bill allows competitive electricity providers to meet the portfolio requirements 
for new renewable capacity resources through the use of renewable energy credits or an 
alternative compliance payment to be set by the Public Utilities Commission. The bill 
allows the commission to suspend increases in the portfolio requirements for new 
renewable capacity resources if it finds that investment in new renewable capacity 
resources is insufficient and the resulting use of the renewable energy credits or 
alternative compliance payments has burdened electricity customers, and it requires the 
commission to suspend these portfolio requirements if the alternative compliance 
payments are used to meet the requirements for 3 or more consecutive years. 
The bill requires the commission to report annually to the Legislature regarding the 
status of new renewable capacity resources and compliance with the portfolio 
requirements for new renewable capacity resources. 
Beginning July 1, 2008, the bill allows for information regarding the availability of 
green power products and renewable energy credit products offered by competitive 
electricity providers and certified by the Public Utilities Commission to be presented, at 
the option of the provider and with the cooperation of the utility, through inserts in 
customer bills issued by transmission and distribution utilities. The bill requires the 
Public Utilities Commission to report, no later than January 31, 2010, to the joint 
standing committee of the Legislature having jurisdiction over utilities and energy 
matters regarding green power options that have been certified and promoted since July 1, 
2008. The provisions regarding green power options are repealed July 1,2010. 
FISCAL :\OTE RE(JLlRED 
(See attached) 
Approved: 06/01107 ;t1vae 
LR 2676(01) 
An Act To Stimulate Demand for Renewable Energy 
Appropriations/Allocations 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note for Original Bill 
Committee: Utilities and Energy 
Fiscal Note Required: Yes 
Fiscal Note 
2007-08 
2008-09 
$18,361 
$25,958 
Projections 
2009-10 
$26,758 
Projections 
2010-11 
$27,583 
This bill includes an Other Special Revenue Funds allocation to the Public Utilities Commission of$18,361 in fiscal 
year 2007-08 and $25,958 in fiscal year 2008-09 to provide funds for a part-time (1/4 FTE) Utility Analyst position. 
LR2676(OI) - Fiscal Note - Page 1 of 1