An Act To Promote Community-based Energy
Maine Legislature, Session 124, LD 1075
Committee: Utilities and Energy
Sponsors: MacDONALD, BOLAND, FITTS, HINCK, MARTIN, SHAW, VAN WIE
Amends: 5 MRSA §1766-A, 35-A MRSA §3210, 35-A MRSA §3212, 35-A MRSA §10008

Legislative Document 
No. 1075 
H.P.742 
House of Representatives, March 17,2009 
An Act To Promote Community-based Energy 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by Representative MacDONALD of Boothbay. 
IY/~ 
111.17lt2C~{ 
MILLI,CENT M. MacFARLAND 
Clerk 
Cosponsored by Representatives: BOLAND of Sanford, FITTS of Pittsfield, HINCK of 
Portland, MARTIN of Eagle Lake, Speakei' PINGREE of North Haven, SHAW of Standish, 
VAN WIE of New Gloucester. 
' 
PI intcd nil recycled p~pL'r 
Be it enacted by the People ofthe State of Maine as follows: 
Sec. 1. 5 MRSA §1766-A, as enacted by PL 2007, c. 52, § 1, is amended to read: 
§ 17 66-A. Electricity purchases for state buildings 
No later than January 1, 2010, all electricity consumed in state-owned buildings must 
be supplied by renewable resources. For purposes of this section, "renewable resource" 
means any renewable resource defined in Title 35-A, section 3210", subsection 2, 
paragraph C. In purchasing electricity for state-owned buildings and facilities, the State 
shall to the maximum extent practicable give preference to electricity generated by 
community-based energy facilities, as defined in Title 35-A, section 3602, subsection 2. 
Sec. 2. 35-A MRSA §3210, sub-§8, as amended by PL 2007, c. 403, §6, is 
further amended to read: 
8. Credit trading. The commission shall allow competitive electricity providers to 
satisfy the portfolio requirements of subsections 3 and 3-A through the use of renewable 
energy credits if the commission determines that a reliable system of electrical attribute 
trading exists. 
When renewable energy credits are used to satisfy the portfolio 
requirements of subsections 3 and 3-A, the value of a . renewable energy credit for 
electricity generated from a community-based energy facility, as defined in section 3602, 
subsection 2 is equal to 150% of the amount of the electricity. 
Sec. 3. 35-A MRSA §3212, sub-§7 is enacted to read: 
7. 
Community-based energy requirement. 
Beginning January 1, 2013, the 
commission shall require a standard-offer service provider to purchase a niinimum of 3% 
of the electricity supplied under the standard-offer service contract from community-
based energy facilities. Beginning January 1, 2015, the minimum amount required to be 
purchased from community-based energy facilities under this subsection increases to 5%. 
For the purposes of this subsection, "community-based energy facility" has the same 
meaning as in section 3602, subsection 2. 
Sec. 4. 35-A MRS A c. 36 is enacted to read: 
CHAPTER 36 
COMMUNITY-BASED ENERGY 
§3601. Short title 
This chapter may be !mown and cited as "the Community-based Energy Act." 
§3602. Definiti~ns 
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings. 
Page I - 124LR1141(Ol)-1 
) 
) 
) 
n 
(~/ 
) 
.~ 
1. Commercial energy developer. "Commercial energy developer" means a person 
or organization that develops an energy generation facility or sells services, machinery or 
other supplies for the development of an energy generation facility. 
. 
2. Community-based energy facility. "Community-based energy facility" means 
an electricity-generating facility that generates electricity from renewable resources and 
meets the following criteria: 
A. At least 51 % of the gross revenues from electricity sales and renewable energy 
credit sales from the commumty-based energy facility flow to qualifying owners; and 
·9 
B. The legislative body of each political subdivision of the State. or tribal land or 
territory in which the community-based energy facility is located has passed a 
resolution in support of the facility. 
3. Qualifying owner. "Qualifying owner" means an owner of a community-based 
energy facility that is: 
A. A resident of the State and not a commercial energy developer of the community-
based energy facility; 
B. A limited liability company organized under the laws of the State, not organized 
for the purpose of commercial energy development and made up of members who are 
residents of the State; 
C. A nonprofit corporation organized under the laws of the State; 
D. 
A rural electrification cooperative, as defined in Title 35-A, section 3703, 
subsection 2; 
E. 
A political subdivision of the State, including, but not limited to, a county, 
municipality, municipal electric district, school administrative unit, public or private 
institution of higher education, regional council of governments or any other local or 
regional' governmental organization, including, but not limited to, a board, 
commission or association; 
F. A department, agency or instrumentality ofthe State; or 
G. A federally recognized Indian tribe. 
4. Renewable resource. "Renewable resource" has the same meaning as in section 
3210, subsection 2, paragraph C. 
5. Tribal land or territory. "Tribal land or territory" means: 
A. Houlton Band Trust Land, as defined in Title 30, section 6203, subsection 2-A; 
B. Passamaquoddy Indian territory, as defined in Title 30, section 6203, subsection 
6' 
-"'-1 
C. Penobscot Indian territory, as defined in Title 30, section 6203, subsection 9; and 
D. Aroostook Band Trust Land, as defined in Title 30, section 7202, subsection 2. 
§3603. Community-based energy 
1. Policy goat The goal for community-based energy development in the State is 
that by 2017 at least 5% of electricity consumed by retail electricity customers, in the 
State is generated by community-based energy facilities. 
2. State involvement. Except when directly prohibited by law, deed restriction or 
other encumbrance, publicly owned land, water or facilities may be used by the State or 
political subdivisions in the development and. operation of community-based energy' 
facilities or may be leased to other qualifying owners for community-based energy 
facilities. 
3. 
Model community-based energy facility organization. 
The Executive 
r 
Department, State Plarming Office, with assistance from the Office of the Attorney 
General, shall develop a model legal organizational structure for community-based 
energy facilities. The office shall make the model available on a publicly accessible 
website. The model must include a detailed guide to facilitate the efficient and effective 
establishment and operation of community-based energy facilities. 
4. . Tracking; biennial report.. The commission and the Executive Department, 
Governor's Office of Energy Independence and Security shall develop and administer a 
system to register and track the development of community-based energy facilities and by 
January 15, 2011 and biermially by January 15th thereafter shall report progress toward 
meeting the community-based energy deVelopment goal established in subsection 1 to the 
joint standing committee of the Legislature having jurisdiction over utilities and energy 
matters. The report must include an assessment of the effectiveness of policies and 
programs designed to encourage community-based energy and make recommendations 
for any necessary' adjustments to those policies and programs. 
Sec. 5. 35-A MRSA §10008, sub-§6, ~ 
is enacted to read: 
M. Notwithstanding any other provision of this section, the trust fund may be used to 
. 27 
fund the development of community-based energy facilities, as defined in section 
3602, subsection 2 .. 
Sec. 6. 
Consolidating state energy policy and energy efficiency 
responsibilities. Under the direction of the Public Utilities Commission, state agencies 
with responsibility for energy policy and programs, including, but not limited to, the 
Public Utilities Commission, the Energy and Carbon Savings Trust, the Energy 
Conservation Board, the Governor's Office of Energy Independence and Security and the 
State Plarming Office within the Executive Department and the Maine State Housing 
Authority, shall prepare a plan to consolidate and integrate state-level energy policy and 
program functions and responsibilities within a single entity. The plan must be designed 
to provide streamlined management and administration of state energy policy and 
programs and to maximize leveraging opportunities and strengthen program effectiveness 
and accountability. The duties of the single entity shall include providing technical 
assistance for the development of community-based energy facilities, as defined in' the 
Maine Revised Statutes, Title 35-A, section 3602, subsection 2. 
) 
) 
) 
n 
(~/ 
I' 
, ~ 
~) 
By January 15, 2010, the Public Utilities Commission shall submit a report based on 
the plan, including any necessary implementing legislation, to the Joint Standing 
Committee on Utilities and Energy. After receipt and review of the report, the committee 
, may submit legislation related to the report to the Second Regular Session of the 124th 
Legislature. 
SUMMARY 
This bill includes a number of provisions designed to encourage the development of 
community-based energy facilities and to achieve a goal of having 5% of electricity 
consumed by retail customers produc.ed by community-based energy facilities by 2017. 
1. It requires the State to give preference to community-based energy facilities in 
purchasing electricity for state-owned buildings and facilities. 
2. It increases the value of renewable energy credits for electricity generated by 
community-based energy facilities to 150% of the amount of the electricity. 
3. It requires standard-offer service providers to purchase a minimum amount of 
electricity from community-based energy facilities. 
' 
4~ It requires the Executive Department, State PlanIiing Office to develop a model 
legal organizational structure for community-based energy facilities. 
5. 
It requires the Public Utilities Commission and the Executive Department, 
Governor's Office of Energy Independence and Security to develop and administer a 
' 
system to track the development of community~based energy facilities. 
6. It requires those state agencies that have energy-related respon,sibilities to develop 
a plan to consolidate and integrate state-level energy policy and program functions and 
responsibilities within a single state entity. 
7. It authorizes funding from the Energy and Carbon Savings Trust Fund to be used 
' 
for the development of community-based energy facilities.