An Act To Establish a Process for Procurement of Renewable Resources
Maine Legislature, Session 127, LD 1676
Committee Amendment CA_A-SA_A_S538 (Senate)

SENATE AMENDMENT" A" to COMMITTEE AMENDMENT "A" to S.P. 689, 
L.D. 1676, Bill, "An Act To Establish a Process for Procurement of Renewable 
Resources" 
Amend the amendment by striking out the substitute title and replacing it with the 
following: 
'An Act To Establish a Process for the Procurement of Biomass Resources' 
Amend the amendment by inserting after the substitute title the following: 
'Amend the bill by inserting after the title and before the enacting clause the 
following: 
'Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, this legislation requires that funds be transferred by June 30, 2016; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore,' ' 
Amend the amendment in section 1 in subsection 2 in the 4th and 5th lines (page 1, 
lines 30 and 31 in amendment) by striking out the following: "contingent upon available 
funds for above-market costs of the contract pursuant to subsection 4" 
Amend the amendment in section 1 by striking out all of subsections 3, 4, 5 and 6 
(page 2, lines 3 to 43 and page 3, lines 1 to 9 in amendment) and inserting the following: 
'3. Review and selection of renewable resources and contract adjustments. In 
conducting a solicitation and entering into any contract under subsection 2, the 
commission shall: 
A. Ensure that a biomass resource facility is operating at least at a 50% capacity for 
days prior to the initiation of a competitive solicitation in accordance with 
subsection 2 and continues to operate at that capacity except for planned and forced 
outages; and 
SENATE AMENDMENT 
ltalS. 
SENATE AMENDMENT" A" to COMMITTEE AMENDMENT "A" to S.P. 689, L.D. 1676 
B. Seek to ensure, to the maximum extent possible, that a contract entered into under 
this section: 
( 1) Provides benefits to ratepayers; 
(2) Provides in-state benefits, such as capital investments to improve long-term 
viability of the facility, permanent direct jobs, payments to municipalities, 
payments for fuel harvested in the State, payment for in-state resource access, in-
state purchases of goods and services and construction-related jobs and 
purchases; 
(3) Reduces greenhouse gas emissions; 
(4) Promotes fuel diversity; and 
(5) Supports or improves grid reliability. 
In selecting among bids, the commission shall determine the total in-state economic 
benefits of the contract in an expected annual dollar per megawatt-hour average and the 
cost to fund the above-market costs of a contract in an expected annual dollar per 
megawatt-hour average. The commission shall consider both of these values for each 
proposal to identify those proposals that maximize the overall benefits to the State, and 
shall establish a process under which a generator of biomass resources verifies on an 
annual basis that the projected in-state economic benefits are generated during the term of 
the contract. 
If the commission concludes that the solicitation conducted under 
subsection 2 is not competitive, no bidders may be selected and the commission is not 
obligated to enter into a contract. If the commission finds the in-state benefits are not 
being achieved, the commission may reduce the contract payment by the percentage 
difference between actual in-state benefits achieved and the projected in-state benefits. 
4. Cost recovery fund. There is established within the commission a nonlapsing 
cost recovery fund, referred to in this section as "the fund." The fund receives funds 
allocated or transferred by the Legislature from the unappropriated surplus of the General 
Fund in accordance with subsection 7. The commission shall use the fund to pay all 
above-market costs of any contract entered into under this section. No more than 50% of 
the fund may be awarded to facilities serving the NMISA region. At the close of fiscal 
year 2016-17, amounts remaining in the cost recovery fund that the commission has 
determined are not needed to pay above-market costs in accordance with subsection 5 
must be transferred to the Maine Budget Stabilization Fund established under the Maine 
Revised Statutes, Title 5, section 1532. The commission by rule or order shall establish 
how above-market costs are determined and how payments from the fund are made. 
5. Cost recovery. The commission shall ensure that all costs and benefits associated 
with contracts entered into under this section are allocated as follows: 
A. 
All costs, other than above-market costs, and all direct financial benefits 
associated with contracts entered into under this section must be allocated to 
ratepayers in accordance with the Maine Revised Statutes, Title 35-A, section 3210-F 
and may not be considered imprudent; and 
B. Above-market costs, including any price differential existing at any time during 
the term of the contract between the contract price and the prevailing market price at 
SENA TE AMENDMENT 
"·els. 
SENA TE AMENDMENT" A" to COMMITTEE AMENDMENT "A" to S.P. 689, L.D. 1676 
which the capacity resource is sold and any losses derived from contracts for 
differences, must be allocated as follows: 
(1) To the extent funds are available in the fund under subsection 4, the above-
market costs must be paid from the fund; and 
(2) If there are insufficient funds available in the fund under subsection 4, any 
insufficiency must be allocated to ratepayers in accordance with Title 35-A, 
section 3210-F and may not be considered imprudent.' 
Amend the amendment in section 1 by striking out all of subsection 8 (page 3, lines 
to 21 in amendment) and inserting the following: 
'8. Transfers of funds. Notwithstanding any provision of law to the contrary, at the 
close of fiscal year 2015-16, the State Controller, as the next priority after making the 
transfers authorized pursuant to the Maine Revised Statutes, Title 5, sections 1507, 1511, 
1519, 1522 and 1536, shall transfer from the unappropriated surplus of the General Fund 
to the Cost Recovery Fund, Other Special Revenue Funds account within the Public 
Utilities Commission amounts as may be available from time to time, up to a total of 
$13,400,000.' 
Amend the amendment in section 1 by renumbering the subsections to read 
consecutively. 
Amend the amendment by striking out all of sections 2 and 3 and inserting the 
following: 
'Sec. 2. Appropriations and allocations. The following appropriations and 
allocations are made. 
PUBLIC UTILITIES COMMISSION 
Cost Recovery Fund N228 
Initiative: Provides an allocation to pay above-market costs of contracts for energy or 
contracts for differences for the procurement of up to 80 megawatts of biomass resources. 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHERSPECIALREVENUEFUNDSTOTAL 
Public Utilities - Administrative Division 0184 
Initiative: Provides an allocation for consulting costs. 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
2015-16 
$0 
$0 
2015-16 
$0 
$0 
SENA TE AMENDMENT 
2016-17 
$13,400,000 
$13,400,000 
2016-17 
$100,974 
$100,974 
It~$ .. 
SENATE AMENDMENT" A" to COMMITTEE AMENDMENT"A" to S.P. 689, L.D. 1676 
PUBLIC UTILITIES COMMISSION 
DEPARTMENT TOTALS 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT TOTAL-ALL FUNDS 
2015-16 
2016-17 
$0 
$13,500,974 
$0 
$13,500,974 
Emergency clause. 
In view of the: emergency cited in the preamble, this 
legislation takes effect when approved.' 
SUMMARY 
This amendment: 
1. Adds an emergency preamble and clause; 
2. Removes language that limits the Public Utilities Commission's authority to enter 
into a contract based on the availability of funds in the cost recovery fund; 
3. Requires that a biomass resource facility is operating at least at a 50% capacity for 
days rather than 6 months prior to initiation of the competitive solicitation; 
4. Provides that if the Public Utilities Commission concludes that the solicitation is 
not competitive, no bidders may be selected; 
5. Removes language that requires the Public Utilities Commission to conduct a 
competitive solicitation for a combined heat and power solicitation; and 
6. Eliminates cost recovery through the Maine Budget Stabilization Fund and instead 
directs the State Controller at the close of fiscal year 2015-16 to transfer from the 
unappropriated surplus of the General Fund up to $13,400,000 to the cost recovery fund 
established for this purpose. At the close of fiscal year 2016-17, amounts remaining in 
the cost recovery fund that the commission has determined are not needed to pay above-
market costs must be transferred to the Maine Budget Stabilization Fund established 
under the Maine Revised Statutes, Title 5, section 1532. If funds in the cost recovery 
fund are insufficient, the commission is directed to recover the funds through amounts 
charged to ratepayers. 
FISCAL NOTE REQUIRED 
(See attached) 
SPONSORED BY: k)~w!}~ 
(Senator WOODSOME) 
COUNTY: York 
SENATE AMENDMENT 
Approved: 04/14/16 
~ac 
LD 1676 
LR 2794(07) 
An Act To Establish a Process for Procurement of Renewable Resources 
Fiscal Note for Senate Amendment ''A' to Committee Amendment "A" 
Sponsor: Sen. W oodsome of York 
Fiscal Note Required: Yes 
(s ... {38') 
Net Cost (Savings) 
General Fund 
General Fund - Maine Budget Stabilization Fund 
Appropriations/ Allocations 
Other Special Revenue Funds 
Transfers 
General Fund 
General Fund - Maine Budget Stabilization Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note 
FY2015-16 
$13,400,000 
$0 
$0 
FY2016-17 
Projections 
FY 2017-18 
$0 
$0 
($6,700,000) 
($6,700,000) 
$6,700,000 
($6,700,000) 
($13,400,000) 
$0 
$0 
$6,700,000 
($6,700,000) 
$6,700,000 
$13,400,000 
($6,700,000) 
Projections 
FY 2018-19 
$0 
$0 
$0 
$0 
$0 
This amendment eliminates the $6,700,000 transfer from the Maine Budget Stabilization Fund to the Cost Recovery Fund within the 
Public Utilities Commission (PUC) in both fiscal year 2016-17 and 2017-18 and instead directs $13,400,000 to be transferred from the 
unappropriated surplus of the General Fund at the close of fiscal year 2015-16 following certain statutorily required transfers (the so-
called "cascade"). There is no guarantee that there will be sufficient funds from the unappropriated surplus of the General Fund to make 
this transfer. In the event that there are insufficient funds in the Cost Recovery Fund, the amendment requires any above-market costs of 
a contract to be allocated to certain ratepayers. The amendment allows up to 50% of funds within the Cost Recovery Fund to go to the 
Northern Maine Independent System Administrator. This amendment also allows the PUC to not enter into any contract if a 
determination from the PUC is made that none of the bids are competitive. The amendment requires any funds remaining in the Cost 
Recovery Fund at the close of fiscal year 2016-17 be transferred to the Maine Budget Stabilization Fund. 
The amendment also adds an emergency preamble and clause, as well as eliminates the requirement that the PUC conduct a solicitation 
to procure certain energy. 
LR2794(07) - Fiscal Note - Page I of I