An Act To Establish the Renewable Energy Resources Program
Maine Legislature, Session 124, LD 1450
Committee: Utilities and Energy
Sponsors: ADAMS, BARTLETT, BERRY, GOODE, HINCK, MARTIN, PINGREE, PIOTTI

Legislative Document 
No. 1450-
H.P. 1006 
House of Representatives, April 8,2009 
An Act To Establish the Renewable Energy Resources Program 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by Representative ADAMS of Portland. 
Cosponsored by Senator BARTLETT of Cumberland and 
'71/~ 1/1. 7Jlr1£~{ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: BERRY of Bowdoinham, GOODE of Bangor, HINCK of Portland, MARTIN 
of Eagle Lake, PIEHofBremen, Speaker PINGREE of North Haven, PIOTTI of Unity, -
WATSON of Bath. 
P!lIlI~.'d ,III I L''';\ I."led ",trwr 
Be if enacted by tbe People oftbe State of Maine as follows: 
Sec. 1. 35-A MRSA c. 36.is .enacted to read: 
CHAPTER 36 
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RENEW ABLE ENERGY RESOURCES . 
§3601. Renewable energy resources 
1. Program established. The commission shall by rule establish a renewable energy 
resources program in order to encourage the rapid and sustainable development of 
renewable energy resources and technology for environmentally healthy generation of 
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electricity and to decrease the demand for fossil fueL In establishing the program, the 
commission shall concentrate on electricity generation that contributes no net carbon 
additions to the atmosphere. 
2. 
Standards of program. 
The commission shall establish standards for the 
interconnection of eligible electric generators with the· distribution systems of grid 
operators; adopt standard contracts for use; establish rates,. charges, surcharges and 
incentives; and establish a program review process for this program as described in this 
chapter. 
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§3602. Definitions 
As used in this chapter, unless the context indicates otherwise, the following terms 
have the following meanings. 
1. Eligible electric generator. "Eligible electric generator" means a system for the 
generation of electricity that contributes no net carbon additions to the atmosphere, is no 
greater than 20 megawatts in size, is majority owned by a person or entity that owns less 
than 20 megawatts of electricity generating capacity in the State and uses the following 
renewable energy resources in this State: 
A. Solar photovoltaic panels or solar thermal or concentrating solar systems; 
B. Wind power; 
C'. Hydroelectric power; 
D. 
Generators fueled by methane from sewage treatment facilities, landfills or 
agricultural waste; 
E. Generators fueled by combustion of biomass; and 
F. Tidal power projects. 
2. Grid operator. "Grid operator" means an entity that oversees the delivery of 
electricity by means of an interconnected system. 
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3. Net carbon addition. "Net carbon addition" means an addition of carbon to the 
atmospheric carbon cycle that was previously sequestered in a form of fossil fuel or any 
waste, product or byproduct of a fossil fuel. 
4. Renewable energy opportunity county. "Renewable energy opportunity county" 
means a county where the average weekly wages are at or below the mean average 
weekly wages for the State as defined by the average of the 1 0 most recent years of 
Department of Labor statistics. 
5. Utilized public property. "Utilized public property" means: 
A. 
A building or parking lot owned by the State or a county or municipal 
goveriunent; 
B. 
A school or school property that obtains the majority of its funding through 
taxpayer dollars; or 
C. Other property owned by a governmental unit that is not nianaged as a historic 
site, public reserved land or state park. 
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6. Value added. "Value added" means a monetary total of all labor and materials 
added to a product at each stage prior to sale to a wholesaler or consumer. 
§3603. Connection to grid operators' distribution system 
A grid operator shall connect an eligible electric generator to the existing electricity 
distribution system within 90 days of a request by an eligible electric generator. 
1. Interconnection standards. The commission by rule shall establish reasonable 
standards for the interconnection of eligible electric generators with the transmission arid 
distribution systems of grid operators. The standards must be consistent with generally 
accepted. industry practices and guidelines and must be established to ensure the 
reliability of electric service and the safety of customers, grid operators' employees and 
the general public. 
2. Costs. The costs associated with the interconnection must be included in the rates 
under section 3605 as long as electric transmission lines already exist at the location of or 
within 100 feet of the eligible electric generator. If the eiigible electric generator is more 
than 100 feet from existing electric transmission lines, the eligible electric generator bears 
the cost of interconnection. 
3. Fines.· A grid operator that fails to connect an eligible electric generator to the 
grid operator's distribution system is subject to fines of not more than $100 per day that 
the grid operator is in violation of this subsection. 
§3604. Standard contract' 
The commission shall draft and make available a standard contract, with a duration of 
not less than 20 years, for electricity purchases by a grid operator from an eligible electric 
generator. 
1. 
Classes. The contract must set the prices to be paid for each kilowatt-hour 
generated by each class, as described in section 3605,. subsectioil 1, of eligible electric 
generator. 
2. Deadline. The commission shall adopt rules establishing the ten11S and conditions 
for the standard contract no later than January 1, 2010. 
3. Contract. On request of an eligible electric 'generator, a grid operator must enter 
into a power purchase agreement by the standard contract and at the proper classification 
to purchase all electricity from that eligible electric generator for a period of not less than 
years. 
4. Transferable. Executed contracts must be site specific and transferable. 
§3605. Rates and terms 
The commission shall set just and reasonable rates, as modified under sections 3603 
and 3607, sufficient to provide revenues to operate and to attract necessary capital and 
investment for eligible electric generators to be paid by electric utilities to eligible electric 
generators under the standard contract under section 3604. 
1. Classes. The rates must establish specific classes of eligible electric generators, 
both by type of renewable resource used and by amount of annual electrical output, and 
for specific time periods of the contract's duration. 
2. Rates. The commission shall establish rates to provide revenue for the following 
purposes: 
A. To be consistent with the requirements of chapter 3; 
B. To pay for current expenses for operating and maintaining the generating system; 
C. To provide funding for the usual and regular renewals, replacement and repair of 
the generating system; 
D. To pay the annual principal and iaterest due of loans for the construction of the 
generating system; 
E. To provide for an annual contribution to a contingency reserve fund up to an 
amount equal to 25% of the operational budget for the generating system; 
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F. To pay for the use of existing or new transmission and distribution lines; 
G. To make up for the avoided cost, if any, of building or purchasing additional 
nonrenewable generated electricity; 
H. To pay for any and all other reasonable costs and expenses related to generating 
electricity by the eligible electric generator; 
I. To pay a minimum annual return of at least 8% to the eligible electric generator for 
the first 2 year~ after January 1, 2010 for all renewable resources except solar power. 
Thereafter, every 2 years, the commission may reduce the minimum annual return by 
1%; 
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J. To pay a minimum annual return of at least 8% to solar powered generators for the 
first 2 years after January 1, 2010 for all installations made over existing parking lots 
in existence for at least 5 years and mounted onto roofs and buildings. Thereafter, 
every 2 years, the commission may reduce the minimum annual return by 1 %; and 
K. To pay a reasonable annual return of not more than 4% for the first 2 years after 
January 1, 2010 to all other eligible solar powered generators. Thereafter, every 2 
years, the cOlmnission may reduce the minimum annual return by 1 %. 
3. Incentives. The cOlmnission shall include the following incentives in each class. 
A. An eligible electric generator certified with at least 70% of the value added in the 
State, exclusive of installation costs, must receive a 5% prerillum in addition to the 
rates under section. 3605. This incentive must be paid in addition to all other. 
incentives included in this section. 
B. Any eligible electric generator, with at least 50% value added in a renewable 
energy opportunity county, must receive a 5% premium in addition to the rates under 
section 3605. This incentive must be paid in addition to all other incentives included 
in-this section. 
C. An eligible electric generator that is installed on utilized public property must 
receive a 5% premium in addition to the rates under section 3605 if the net income 
generated from such production is used for governmental purposes and can be 
demonstrated to have reduced taxes. This incentive must. be paid in addition to all 
other incentives included in this section. 
D. An eligible electric generator that uses naturally produced methane from manure, 
decaying biomass or from landfills must receive a 5% premium in addition to the. 
rates under sectIon 3605. This incentive must be paid in addition to all other 
incentives included in this section. 
4. Proceeding. The commission shall adopt rules by July 1, 2010 for the design of 
the rates under tIlls section. 
§3606. Surcharge 
The commission shall, after notice and hearing, biannually establish a renewable 
energy factor that must be a nonbypassablesurcharge payable by every customer of a grid 
operator. The surcharge must be payable by all customer classes. The commission shall 
set the surcharge at a level sufficient to pay the costs of electricity purchased under 
section 3605 and any interconnection costs under section 3603. For the purpose of this 
section, "nonbypassable surcharge" means charges applied to all customer billings in a 
given region whether they receive service from a local utility or from a competitive 
supplier. These charges include transition charges, access charges, regional levies and 
taxes. 
§3607.· Review 
The commission shall review the rates establish~d in section 3605 by January 1 st and 
once every 2 years thereafter and adjust those rates for new contracts as necessary to 
account for inflation, assist in the profitable development of eligible electric generators, 
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prevent excessive profits for eligible electric generators and prevent unnecessary costs to 
ratepayers. The commission shall reduce the rates in section 3605 to reflect any federal or 
state subsidies, tax credits or other incentives that an eligible electric generator may 
receIve. 
§3608. Report 
By January 1, 2010, January 1; 2011 and .once every 4 years thereafter, the 
commission shall file a report with the Governor and Legislature that must include the 
following: 
1. Kilowatt hours. The kilowatt.:hours of electricity purchased from eligible electric 
generators; 
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2. Number. The number of new eligible electric generators in the State- and the 
environmental effects of the addition of those generators; 
3. Recommendations. Recommendations from the public or the commission for 
legislation and changes to the rates and the terms of the standard contract in the public 
interest; and 
4. Actions.' Actions taken by the commission to implement this chapter. 
Eligible electric generators shall, upon request, provide the commission any 
infotmation that may be relevant to the commission performing its duties under this 
chaptet. 
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§3609. Rules 
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The commission shall adopt rules to implement this chapter. Rules adopted under this 
section are routine technical rules as defined in Title 5, chapter 375, subchapter ~-A. 
SUMMARY 
This bill requires the Public Utilities Commission to establish by rule a renewable 
energy resources -program to encourage the rapid and sustainable development of 
renewable energy resources and teclmology for environmentally healthy generation of 
electricity. It requires that utilities purchase renewably produced electricity from all 
qlloalified suppliers. It sets the rate that electric utilities must pay for such power. It sets 
the rate that electric utilities must pay for such powers. It requires that utilities enter into a 
standard contract with all renewable energy suppliers for a set term. It establishes for the 
Public Utilities Commission management and oversight responsibilities. It reserves to the 
Legislature the power to periodically review and revise the rates and the terms of the 
standard contract in the public interest. 
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