An Act To Amend the Community-based Renewable Energy Program
Maine Legislature, Session 127, LD 1310
Committee: Energy, Utilities and Technology
Sponsors: DeCHANT, BEAVERS, RYKERSON, WADSWORTH, MIRAMANT
Amends: 35-A MRSA §3210, 35-A MRSA §3602, 35-A MRSA §3603, 35-A MRSA §3604, 35-A MRSA §3605, 35-A MRSA §3609

Legislative Document 
No. 1310 
H.P. 888 
House of Representatives, April 9, 2015 
An Act To Amend the Community-based Renewable Energy 
Program 
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative DeCHANT of Bath. 
Cosponsored by Representatives: BEAVERS of South Berwick, RYKERSON of Kittery, 
WADSWORTH of Hiram, Senator: MIRAMANT of Knox. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  35-A MRSA §3210, sub-§8, as amended by PL 2009, c. 329, Pt. A, §2, 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 by a community-based renewable energy project, as defined in 
section 3602, that is participating in the community-based renewable energy pilot 
program established in section 3603 and elects the renewable energy credit multiplier 
under section 3605 is 150% of the amount of the electricity. 
Sec. 2.  35-A MRSA §3602, as amended by PL 2009 c. 542, §8, is further 
amended to read: 
§3602.  Definitions 
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings. 
1.  Community-based renewable energy project.  "Community-based renewable 
energy project" means a locally owned an electricity generating facility that generates 
electricity from an eligible renewable resource and that the commission has determined 
meets the eligibility requirements of section 3603, subsection 3. 
2.  Eligible renewable resource. "Eligible renewable resource" means a renewable 
capacity resource as defined in section 3210, subsection 2, paragraph B-3. 
3.  Locally owned electricity generating facility.  "Locally owned electricity 
generating facility" means an electricity generating facility at least 51% of which is 
owned by one or more qualifying local owners. 
4.  Program participant. "Program participant" means a community-based 
renewable energy project that is participating in the community-based renewable energy 
pilot program established in section 3603 has been selected to enter into a long-term 
contract pursuant to section 3604. 
5.  Qualifying local owner. "Qualifying local owner" means a person or entity that 
is: 
A.  An individual who is a resident of the State; 
B.  A political subdivision of the State, including, but not limited to, a county, 
municipality, quasi-municipal corporation or district as defined in Title 30-A, section 
2351, school administrative unit as defined in Title 20-A, section 1, 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; 
C.  A department, agency or instrumentality of the State; 
D.  A federally recognized Indian tribe located in the State; 
E.  A nonprofit corporation, organized under the laws of the State, including a unit 
owners association organized under Title 33, section 1603-101; or 
F.  A business corporation, organized under the laws of the State, at least 51% of 
which is owned by one or more residents of the State. 
Sec. 3.  35-A MRSA §3603, as amended by PL 2013, c. 454, §3, is further 
amended to read: 
§3603.  Community-based renewable energy program 
1.  Program established.  The community-based renewable energy pilot program, 
referred to in this section as "the program," is established to encourage the sustainable 
development of community-based renewable energy in the State. The program is 
administered by the commission.  
2.  Program scope; limits on generating capacity. The commission shall limit 
participation in the program in accordance with this subsection. 
A.  The installed generating capacity of a program participant may not exceed 10 
megawatts. 
B.  The total installed generating capacity of all program participants combined may 
not exceed 50 100 megawatts. 
D.  Of the 50-megawatt 100-megawatt limit on total generating capacity under 
paragraph B, 10 2 megawatts must be reserved at the outset of the program for 
program participants that: have an installed generating capacity of less than 100 
kilowatts. 
(1)  Have an installed generating capacity of less than 100 kilowatts; or 
(2)  Are located in the service territory of a consumer-owned transmission and 
distribution utility. 
The commission may modify the amount of generating capacity reserved under this 
paragraph based on program experience. 
E.  The total installed generating capacity of program participants that receive the 
renewable energy credit multiplier incentive under section 3605 may not exceed 10 
megawatts. 
3.  Program eligibility criteria. To be eligible to participate in the program, a 
community-based renewable an energy project must: 
A.  Provide documentation of a resolution of support passed by the municipal 
legislative body or by the municipal officers, if the municipal legislative body has 
delegated this authority to the municipal officers, of the municipality in which the 
community-based renewable energy project is proposed to be located, except that any 
project that is proposed to be located wholly in an unorganized or deorganized area of 
the State or that has a generating capacity of less than 100 kilowatts is exempt from 
the requirement set forth in this paragraph; 
B.  In the case of a community-based renewable an energy project proposed to be 
located on the tribal land or territory of a federally recognized Indian tribe in this 
State, including any land owned by the tribe or held in trust by the United States for 
the tribe, provide documentation that the tribe supports the community-based 
renewable energy project; 
C.  Be connected to the electric grid of this State; 
D.  Have an in-service date after September 1, 2009; and 
E.  Satisfy the limits on generating capacity established in subsection 2. 
The commission shall prescribe an application form or procedure that must be used to 
apply to the program under this chapter. The application form or procedure must include 
any information that the commission determines necessary for the purpose of 
administering the program. The commission shall, within 30 days of receipt of a 
completed application, determine whether a community-based renewable an energy 
project qualifies to participate in the program and respond in writing. 
4.  Program incentives. Subject to the requirements of subsection 2, a program 
participant may elect one of the following program incentives: 
A.  A long-term contract for community-based renewable energy pursuant to section 
3604; or 
B.  The renewable energy credit multiplier pursuant to section 3605. 
5.  Program viability.  The commission shall establish standards to ensure the 
viability of community-based renewable energy projects.  The standards established by 
the commission must include: 
A.  Benchmarks a project must meet to ensure a project is and remains viable; 
B.  A process for determining completion of the development of projects; and 
C.  Protocols for determining a project is no longer viable. 
If in the opinion of the commission a project is no longer viable, the commission may 
remove the project from the program. 
Sec. 4.  35-A MRSA §3604, as amended by PL 2013, c. 454, §4, is further 
amended to read: 
§3604.  Long-term contracts for community-based renewable energy 
Long-term contracts with program participants who elect the long-term contract for 
community-based renewable energy pursuant to section 3603, subsection 4, paragraph A 
are governed by this section. In January 2016 and every 6 months thereafter until the 
program limits established under section 3603, subsection 2 are reached, the commission 
shall conduct a competitive bidding process to select community-based renewable energy 
projects to become program participants and enter long-term contracts under this section.  
The total installed capacity of community-based renewable energy projects selected in 
each competitive bid process must be as close as possible to but may not exceed 15 
megawatts.  The commission shall select the lowest cost bids, based 50% on the proposed 
contract price and 50% on resulting ratepayer costs.  After a community-based renewable 
energy project is selected to be a program participant, the project must become 
operational and commence generating electricity within 3 years or the project's 
participation in the program is terminated, except that the commission may, on petition, 
grant an extension of up to 6 months if project completion was delayed due to factors 
beyond the control of the program participant. 
1. 
Transmission 
and 
distribution 
utilities; 
required 
participation.  
Notwithstanding section 3204, the commission may shall direct investor-owned 
transmission and distribution utilities to enter into long-term contracts with program 
participants located within the service territory of the utility for energy, capacity 
resources or renewable energy credits. The commission may direct investor-owned 
transmission and distribution utilities to enter into contracts under this subsection only as 
agents for their customers and only in accordance with this section. An investor-owned A 
transmission and distribution utility shall sell energy, capacity resources or renewable 
energy credits purchased pursuant to this subsection into the wholesale electricity market 
or take other action relative to such energy, capacity resources or renewable energy 
credits as directed by the commission. 
2.  Consumer-owned transmission and distribution utilities; voluntary 
participation.  A consumer-owned transmission and distribution utility may, at the 
option of the utility, enter into long-term contracts with program participants located 
within the service territory of the utility for energy, capacity resources or renewable 
energy credits.  Consumer-owned transmission and distribution utilities may enter into 
contracts under this subsection only as agents for their customers and only in accordance 
with this section. 
3.  Sale of energy; contract procedures. Energy, capacity resources or renewable 
energy credits contracted in long-term contracts pursuant to this section may be sold into 
the wholesale electricity market in conjunction with solicitations for standard-offer 
supply bids under section 3212 or solicitations for green power offer bids under section 
3212-A.  To the greatest extent possible, the commission shall develop procedures for 
long-term contracts for transmission and distribution utilities under this section having 
the same legal and financial effect as the procedures used for standard-offer service 
pursuant to section 3212 for transmission and distribution utilities. 
4.  Contract term.  A contract entered into pursuant to this section may not be for 
more than 20 years. 
5.  Contract pricing; cost containment.  The commission shall ensure that in any 
contract entered into pursuant to this section: 
A.  The average price per kilowatt-hour within each contract year does not exceed 
10¢; and 
B.  The cost of the contract does not exceed the cost of the project plus a reasonable 
rate of return on investment as determined by the commission. 
6.  Contract negotiation.  For program participants with a generating capacity of one 
megawatt or more, the commission shall, in accordance with this subsection, conduct 
competitive solicitations for long-term contracts.  The commission shall require that bids 
include full project cost disclosure. Following a review of bids received, the commission 
may negotiate with one or more potential suppliers.  The commission shall negotiate 
contracts that are commercially reasonable and that commit all parties to commercially 
reasonable behavior. In selecting program participants for contracting pursuant to this 
subsection, the commission shall select program participants that are competitive and the 
lowest priced when compared to other available bids of the same or similar contract 
duration or terms. 
7.  Contract administration; small generators. For program participants with a 
generating capacity of less than one megawatt, the commission shall administer long-term 
contracts at prices established by the commission by rule.  The commission shall, at a 
minimum, establish prices for energy generated by the following renewable resources: 
A.  Wind power installations; 
B.  Solar arrays and installations; and 
C.  Any other renewable resource upon request of one or more community-based 
renewable energy generators that use that resource. 
The commission shall establish prices under this subsection based on an analysis of 
reasonable costs and may establish different prices for different resources or technologies 
and different prices by time of generation in accordance with that analysis. 
8.  Cost and benefit allocation.  The commission shall ensure that all costs and 
benefits associated with contracts involving investor-owned transmission and distribution 
utilities entered into under this section are allocated to electricity consumers in 
accordance with section 3210-F. 
9.  Contract payments.  Contracts for capacity and related energy entered into 
pursuant to this section must provide that payments will be made only after contracted 
amounts of energy have been provided.  
10.  Ratepayer protection.  The commission shall ensure that mechanisms are 
established to provide protections for ratepayers over the term of contracts entered into 
pursuant to this section. 
Sec. 5.  35-A MRSA §3605, as enacted by PL 2009, c. 329, Pt. A, §4, is repealed. 
Sec. 6.  35-A MRSA §3609, as enacted by PL 2009, c. 329, Pt. A, §4, is repealed. 
SUMMARY 
This bill makes various changes to the community-based renewable energy pilot 
program.  It makes the program permanent, broadens eligibility, adds provisions to ensure 
program participant viability, eliminates the program incentive of renewable energy 
credit multipliers and requires the Public Utilities Commission to use a periodic 
competitive bidding process to choose projects that will receive long-term contracts.