An Act To Amend the Electric Utility Industry Laws as They Relate to Renewable Resources
Maine Legislature, Session 124, LD 1682
Committee: Utilities and Energy
Sponsors: BARTLETT, FLAHERTY, DOSTIE, FITTS
Amends: 35-A MRSA §3210, 35-A MRSA §321, 35-A MRSA §3210-C

Legislative Document 
No. 1682 
S.P.654 
In Senate, January 6,2010 
An Act To Amend the Electric Utility Industry Laws as They Relate 
to Renewable Resources 
Approved for introduction by a majority of the Legislative CoUncil pursuant to Joint Rule' 
203. 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
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Presented by Senator BARTLETT of Cumberland. 
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Cosponsored by Representative FLAHERTY of Scarborough and 
Representatives: DOSTIE of Sabattus, FITTS of Pittsfield. 
Printed on recycled paper 
JOY J. O'BRIEN 
Secretary of the Senate 
Be it enacted by the People of the State of Maine as follows: 
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Sec. 1. 35-A MRSA §3210,:sub-§2,6[B, as repealed and replaced by PL 1999, c. 
398, Pt. I, §2, is amended to read: 
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B. 
"Eligible: resource" means a'source of electrical generation whose total power 
production capacity does not exceed 100 megawatts and that: 
(1) Generates power that can physically be delivered to the control region in 
which the New England Power Pool, or its successor as approved by the Federal 
Energy Regulatory Commission,has authority over transmission, or to the 
Maritimes Control Area; and 
(2) Is ei#i:er a renewable resource6f~ an efficient resource, a source of electrical 
generation that is fueled by municipal solid waste in conjunction with recycling 
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or a source of electrical generation that qualifies as a small power production 
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facility under the Federal Energy Regulatory Commission rules; 18 Code of 
. Federal Regulations, Part 292, Subpart B, as in effect on January 1, 1997. 
Sec. 2. 35-A MRSA §321O, sub-§2, 6[B-l, as enacted by PL 2007, c. 403, §2, is 
. amended to read: 
B-1. 
"New renewable capacity resources resource" has the same meaning· as in 
section 3210 C, subsection 1, paragraphs C and E. means a renewable resource 
whose total power production capacity does not exceed 100 megawatts, except that 
this 1 OO-megawatt capacity limit does not apply to wind power installations, and that: 
(1) Has an in-service date after September 1, 2005; 
(2) Was added toan existing facility after September 1, 2005; 
(3) For at least 2 years was not operated or was' not recognized by the New 
England independent system operator as a capacity resource and, after September 
1, 2005, resumed operation or was recognized by the New England independent 
system operator as a capacity resource; or 
(4) 
Was refurbished after September 1, 2005 and is operating beyond its 
previous useful life or is employing an alternate technology that significantly· 
increases the effiCiency of the generation process. 
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For the purposes of this paragraph, "capacity resource" has the same meaning as in 
section 321 O-C, subsection 1, paragraph A. 
Sec. 3. 35-AMRSA §3210, sub,..§2, 6[B-2~,asenacted:by FL 200;7, c. 40):, §J,. is, 
amended to read: 
B-2. 
"Renewable energy credit" means' a. tradable' instrument that represents; an. 
amount of electricity generated from renewable caoacitv resources as defined in 
section 3210 C, subsection 1, paragraph E. 
Sec. 4. 35-A ~SA §3210, sub-§2, GjfC, as repealed and replaced byPL 1999, c. 
398, Pt. I, §2, is repealed and the following enacted in its place: 
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C. "Renewable resource" means a source of electrical generation that relies on one or . 
more of the following: 
(1) Fuel cells; 
(2) Tidal power; 
(3) Solar arrays and installations; 
(4) Wind power installations; 
(5) Geothermal installations; 
(6) 
Hydroelectric generators· that meet all state and federal fish passage 
requirements; 
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(7) Biomass generators, including generators fueled by anaerobic digestion of 
agricultural products, by-products or wastes; and 
(8) Landfill gas. 
Sec.S. 3S-A MRSA §3210, slllb-§3-A, as corrected by RR 2007, c. 2, §20, is 
amended to read: 
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3-A. Portfolio requirements; new renewable resources. Portfolio requirements 
for new renewablecaoacitv resources are governed by this subsection. 
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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 manrier 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 percentfor the period from January 1,2010 to December3 1,2010; 
(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 percentfor the period from January 1,2015 to December 31, 201~; 
(9) Ninepercent for the period from January 1,2016 to December 31,2016; and 
(10) Ten percentfor 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 subsection 3. 
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B. Suspensions of scheduled increases in the portfolio requirements as provided in 
paragraph A are governed by this paragraph. 
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(1) If by March 31 st of the years 2010, 2012, 2014 and 2016 the commission 
determines 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, 
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recommendations to stimulate investment in new reriewable caoacitv resources. 
D. Retail electricity s~les pursuant to a supply contract or, stan'dard-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. 6. 35-A MRS A §321O, sulb-§9, as enacted by PL 2007, c. 403, §7, is 
amended to read: 
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9. Altemative compliance payment; portfolio req[uirements foil'" new renewable 
resources. The commission shall allow competitive electricity providers to satisfy the 
portfolio requirements Jor new renewable capacity resources under subsection 3-A 
through an alternative compliance payment mechanism in accordance with this 
subsection. 
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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 ori alternative compliance 
payments to meet the requirements of subsection 3-A and investment in new 
renewable caoacit." resources in the State during the previous calend~r year. 
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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. 7. 35-A MRSA §3210-C, slllb-§l, 4jfE, as amended by PL 2007, c. 293, § 1, 
is further amended to read: 
E. "Renewable capacity resource" means a renew.able resource, as defined in section 
3210, subsection 2, paragraph C, except the maximum total power production 
capacity limit of 100 megavt'atts under section 3210, subsection 2, paragraph C does 
not apply and "renewable capacity resource" does not include: 
(I) ,II, generator fueled by municipal solid waste in conjunction with recycling; or 
(2) A hydroelectric generator unless it meets all state and federal fish passage 
requirements applicable to the generator. 
Sec. 8. 35-A'MRSA §3212-A, slllb-§l, as amended by PL 2009, c. 329, Pt. B, §2, 
is further amended .to read: 
. 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 or renewable energy credits for 
electricity generated from renewabfe capacity resources as defined in section 3210 C, 
subsection 1, paragraph E or from a generator fueled by landfill gas 3210, subsection 
2, paragraph C, including electricity generated by community-based renewable 
energy projects as defined in section 3602, subsection 1. "Green power supply" 
includes a biomass generator, ""hose fuel may include, but is not limited to, anaerobic 
digestion of agricultural products, bypro ducts or " .... astes. 
B. "Renew.able energy credit" has the same meaning as in section 3210, subsection 2, 
paragraph B-+ B-2, except that the total power .production capacity limit of 100 
.megav,'atts under section 3210. subsection 2. paragraph C does not apply to v/ind 
Dower installations. 
Sec. 9. 35-A MRS A §3602, slllb-§2, as enacted by PL 2009, c. 329, Pt. A, §4, is 
amended to read: 
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2. EBigible renewable resource. "Eligible renewable resource" means a 'renewable 
resource as defined in section 3210, subsection 2, paragraph C, except that "eligible 
rsne'tVable resource" does not include a generator fueled by municipal solid waste. in . 
conjunction with recycling and does include a generator fueled by landfill gas. "Eligible 
rene",,'able resource" includes a biomass generator ",,,hose fuel includes anaerobic 
digestion of aericultural product~. bvproducts or ,>,.'astes. 
SUMMARY 
This bill amends various definitions in the Maine Revised Statutes, Title 35-A 
relating to renewable 'resources. Specifically, this bill' amends the law in the following 
ways. 
1. 
The bill amends definitions of "eligible resource, Ii "new renewable capacity 
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resources," "renewable energy credit" and "renewable resource" in the law governing 
electrical generation portfolio requirements. These changes: 
a. Limit all eligible resources qualifying under the basic 30% portfolio requirement, 
including cogeneration facilities, to those resources not exceeding 100 megawatts; 
b. Add a new 100-megawatt limit on all new renewable resources that can qualify for 
the Dew renewable resource portfolio requirement above 30%; 
c. Add a requirement that hydroelectric generators, other than those that qualify as 
small power production facilities under federal regulations, must meet state and federal 
fish passage requirements in order to qualify for the basic 30% portfolio requirement; and 
d. Specify that biomass generators that qualify as renewable resources under the 
basic 30% portfolio requirement, include those fueled by anaerobic digestion of 
agricult~ral products, by-products and wastes.' 
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2. 
The bill clarifies the definition of "renewable capacity resource" in the law 
governing capacity resource adequacy and removes from the definition facilities that 
qualify as small power production facilities that don't otherwise qualify as renewable 
resources under Title 35-A, section 3210, subsection 2, paragraph C. 
3. The bill modifies the law governing green power options to clarify that 100-
megawatt capacity limits do not apply to resources that qualify as "green power supply" 
or for "renewable energy credit." Under current law, because of certain cross-references,. 
it is unclear whether the 1 OO-megawatt capacity limits apply to qualifying resources other 
than wind power or to all qualifying resources. 
4. 
The bill amends the definition of "eligible renewable resource" in the law 
governing the communitY-based renewable energy pilot program to make it consistent 
with the changes to the definition of "renewable resource" in the law relating to electrical 
generation portfolio requirements. 
5. The bill, by changing the definition of "renewable resource" in the law governing 
electrical generation portfolio requirements, also affects the definition of that term as it is 
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used in Title 5, section 1766-A relating to renewable energy usage requirements for state 
buildings and in Title 35-A, section 3201, subsection 8-A and section 3210-Agiving 
transmission and distribution utilities authority to administer purchase and sale 
agreements between competitive' electricity providers and small generators, including 
those relying on renewable resources. In each case the changes result from these laws 
cross-referencing the definition of "renewable resource" in the law governing electrical 
generation portfolio requirements. The changes in each case: 
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a. Remove from qualifYing as a renewable resource federally qualified small power 
production facilities that do not otherwise qualifY as a renewable resource and generators 
fueled by municipal solid waste in conjunction with recycling; 
b. Add landfill gas as qualifYing as a renewable resource; 
c. Require hydroelectric generators to meet federal and state fish passage 
requirernents in order to qualifY as a renewable resource; and 
d. Provide that biomass generators fueled by anaerobic digestion of agricultural 
products, by-products and wastes qualifY as a renewable resource. 
The changes also allow renewable resources over 100 megawatts to be used, to meet 
the renewable energy usage required for state buildings under Title 5, section 1766-A.