An Act To Modernize Maine's Solar Power Policy and Encourage Economic Development
Maine Legislature, Session 127, LD 1649
Committee: Energy, Utilities and Technology
Amends: 35-A MRSA §3210-F, 35-A MRSA §3212-B, 35-A MRSA §3471-A, 35-A MRSA §3473

Legislative Document 
No. 1649 
H.P. 1120 
House of Representatives, March 10, 2016 
An Act To Modernize Maine's Solar Power Policy and Encourage 
Economic Development 
Reported by Representative DION of Portland for the Joint Standing Committee on 
Energy, Utilities and Technology pursuant to Resolve 2015, chapter 37, section 2. 
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed pursuant to Joint Rule 218. 
ROBERT B. HUNT 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  35-A MRSA §3210-F, sub-§1, as enacted by PL 2013, c. 454, §2, is 
amended to read: 
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A.  "Eligible costs and benefits" means the net amount of all costs and direct financial 
benefits associated with long-term energy contracts entered into by investor-owned 
transmission and distribution utilities, including but not limited to any effects on a 
utility's cost of capital as a result of these contracts.  For distributed generation 
resources, "eligible costs and benefits" includes the categories set forth in section 
3476, subsection 3. 
B.  "Long-term energy contract" means a contract with an investor-owned 
transmission and distribution utility or a standard buyer entered into under section 
3210-C or, section 3604 or chapter 34-B. 
Sec. 2.  35-A MRSA §3210-F, sub-§3, as enacted by PL 2013, c. 454, §2, is 
amended to read: 
3.  Allocation of eligible costs and benefits.  The commission shall annually allocate 
to each investor-owned transmission and distribution utility its pro rata share of eligible 
costs and benefits as determined under subsection 2.  The allocation must be based on 
each utility's total retail kilowatt-hour energy sales to ratepayers that receive the benefits 
and pay the costs of long-term energy contracts. The commission may determine the 
means to be used for the allocation required under this section, which may include the 
direct transfer of funds between investor-owned transmission and distribution utilities or 
to or from a standard buyer under chapter 34-B. 
Sec. 3.  35-A MRSA §3212-B is enacted to read: 
§3212-B.  Solar power options 
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A.  "Renewable energy credit" has the same meaning as in section 3210, subsection 
2, paragraph B-2. 
B.  "Solar power supply" means renewable energy credits for electricity generated 
from renewable capacity resources as defined in section 3210, subsection 2, 
paragraph B-3, subparagraph (1), division (c). 
2.  Solar power offer.  The commission shall arrange for a solar power offer that is 
composed of solar power supply in accordance with this subsection. Except as provided 
in this subsection, the commission shall ensure that the solar power offer is available to 
all residential and small commercial electricity customers, as defined by the commission 
by rule, and shall administer a competitive bid process to select a solar power offer 
provider or providers for the service territory of a transmission and distribution utility. 
A.  The solar power offer must be in addition to existing standard-offer service under 
section 3212.  
B.  The commission shall, in accordance with section 3210, subsection 7, inform 
residential and small commercial consumers of electricity in this State of the 
opportunity to purchase the solar power offer. 
C.  The commission is not required to arrange for a solar power offer in the event that 
the commission receives no bids to provide the solar power offer in a transmission 
and distribution utility's territory, determines that the bids it receives are inadequate 
or unacceptable or determines, based on prior experience arranging for a solar power 
offer in a utility's territory, that it is reasonably likely that it will not receive any 
adequate or acceptable bids.  
D.  The commission is not required to arrange for a solar power offer for the territory 
of a consumer-owned transmission and distribution utility. If the commission 
arranges standard-offer service for a consumer-owned transmission and distribution 
utility, the consumer-owned transmission and distribution utility may elect to have 
the commission arrange a solar power offer in accordance with this subsection. A 
consumer-owned transmission and distribution utility may establish a solar power 
offer through a competitive bidding process conducted in accordance with the 
commission's rules governing the selection of a solar power offer provider under this 
subsection.  
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. 
3.  Certification; information in bill inserts.  Beginning July 1, 2017, information 
regarding the availability of the solar power offer and of solar power supply products and 
renewable energy credit products that are certified by the commission may, at the option 
of the provider of the offer or the product and with the cooperation of the transmission 
and distribution utility, be presented through inserts in customer bills issued by 
transmission and distribution utilities. The costs of the inserts, including but not limited to 
printing and postage costs, are the responsibility of the provider of the offer or product. 
The commission may define the criteria for certification of solar power supply products 
and renewable energy credit products by order or by rule, and the commission may limit 
the criteria for certification for consumer protection and eligibility verification purposes. 
4.  Rules.  The commission shall adopt rules to implement this section.  Rules 
adopted under this subsection are routine technical rules as defined in Title 5, chapter 
375, subchapter 2-A. 
5.  Repeal.  This section is repealed April 1, 2021. 
Sec. 4.  35-A MRSA §3471-A is enacted to read: 
§3471-A.  Definitions 
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings. 
1.  Credit rate.  "Credit rate" means the per kilowatt-hour rate used to calculate the 
monetary value of a subscriber's share of the output of the large-scale community solar 
distributed generation resource.  The credit is equal to the per kilowatt-hour rate in the 
long-term contracts entered into between the standard buyer and the project sponsor 
pursuant to this section and must be the same for all subscribers of a particular large-scale 
community solar distributed generation resource. 
2.  Distributed generation resource.  "Distributed generation resource" means an 
electric generating facility that uses a renewable fuel or technology as specified in section 
3210, subsection 2, paragraph C or is a micro-combined heat and power system located in 
the service territory of a transmission and distribution utility. 
3.  Kilowatt.  "Kilowatt" means 1,000 watts, measured in direct current. 
4.  Large-scale community solar distributed generation resource.  "Large-scale 
community solar distributed generation resource" means a solar distributed generation 
resource with a nameplate capacity of up to 5 megawatts that is selected in a procurement 
in accordance with this section the beneficial use of the output of the resources of which 
belongs to the subscribers. 
5.  Megawatt.  "Megawatt" means 1,000,000 watts, measured in direct current. 
6.  Micro-combined heat and power system.  "Micro-combined heat and power 
system" means a system that: 
A.  Produces heat and electricity from one fuel input, without restriction to specific 
fuel or generating technology; 
B.  Has an electric generating capacity rating of at least one kilowatt and not more 
than 30 kilowatts and a fuel system efficiency of not less than 80% in the production 
of heat and electricity or has an electric generating capacity and a fuel system 
efficiency of not less than 65% in the production of heat and electricity; and 
C.  Is connected to the electric grid and operated in conjunction with the facilities of a 
transmission and distribution utility. 
7.  Output.  "Output" means energy, capacity, renewable energy certificates and all 
other environmental attributes and market products that are available or may become 
available from a distributed generation resource. 
8.  Project sponsor.  "Project sponsor" means any entity, its successor or its assignee 
selected by the commission under section 3478, subsection 4 that owns or operates one or 
more large-scale community solar distributed generation resources on behalf of 
subscribers. 
9.  Subscriber.  "Subscriber" means a retail customer of a transmission and 
distribution utility who owns a subscription and who has identified an account to which 
the subscription is attributed. 
10.  Subscription.  "Subscription" means a proportional interest in a large-scale 
community solar distributed generation resource.  Each subscription must be sized to 
represent at least one kilowatt of the resource's generating capacity. 
Sec. 5.  35-A MRSA §3473, sub-§§3 to 5 are enacted to read: 
3.  Solar procurements.  The commission shall procure solar distributed generation 
resources in the grid-scale, large-scale community, commercial and industrial and 
residential and small business market segments to achieve the targets in section 3475 
using the procurement methods described in this chapter.  
4.  Participation in wholesale markets.  The commission and investor-owned 
transmission and distribution utilities shall take all reasonable steps to promote the 
participation of distributed generation resources in the wholesale electricity, capacity and 
ancillary service markets. 
5.  Change in tax treatment.  If a change in federal tax laws, rules or policy 
materially modifies the burdens or costs to customers or utilities associated with the 
procurements under this chapter, the commission shall issue a report to the joint standing 
committee of the Legislature having jurisdiction over utility matters describing the impact 
of these changes and recommending any actions necessary to maintain the benefits of the 
procurements under this chapter. 
Sec. 6.  35-A MRSA §§3475 to 3481 are enacted to read: 
§3475.  Solar procurement targets 
1.  Grid-scale.  The procurement target for the grid-scale solar distributed generation 
resources under section 3477 is 60 megawatts by January 1, 2022. 
2.  Large-scale community. The procurement target for the large-scale community 
solar distributed generation resources under section 3478 is 45 megawatts by January 1, 
2022. 
3.  Commercial and industrial.  The procurement target for the commercial and 
industrial solar distributed generation resources under section 3479 is 25 megawatts by 
January 1, 2022. 
4.  Residential and small business.  The procurement targets for the residential and 
small business solar distributed generation resources under section 3480 are: 
A.  Seven megawatts by January 1, 2018; 
B.  Twenty-one megawatts by January 1, 2019; 
C.  Forty-five megawatts by January 1, 2020; 
D.  Seventy megawatts by January 1, 2021; and 
E.  One hundred eighteen megawatts by January 1, 2022. 
§3476.  Standard buyer 
The standard buyer is designated pursuant to this section to aggregate the output of 
the portfolio of distributed generation resources procured pursuant to this chapter and sell 
or use the output of these resources in a manner that maximizes the value of this portfolio 
of resources to all ratepayers.  
1.  Designation of standard buyer.  Each investor-owned transmission and 
distribution utility shall serve as the standard buyer in its service territory, except that the 
commission may designate another entity to serve as standard buyer if the commission 
determines that it is in the best interest of ratepayers.  The standard buyer is subject to the 
jurisdiction of the commission. 
2.  Obligations of the standard buyer.  The standard buyer designated pursuant to 
subsection 1 shall: 
A.  Serve as counterparty to and enforce long-term contracts with project sponsors 
and customers for each market segment under this chapter; 
B.  Reimburse investor-owned transmission and distribution utilities for any bill 
credit or payment to a customer, subscriber or project sponsor pursuant to section 
3478, 3479 or 3480; 
C.  Establish reasonable metering and measurement and verification requirements for 
distributed generation resources; 
D.  Provide information needed to allocate costs and benefits pursuant to subsection 
3; 
E.  Provide aggregate data regarding the output of distributed generation resources to 
the commission; and 
F.  Make renewable energy credits available for sale to the provider of the green 
power offer pursuant to section 3212-A. 
The commission shall ensure that the rules and procedures established under this chapter 
provide opportunities for entities other than the standard buyer to aggregate and sell the 
output of distributed generation resources in the applicable markets. 
3.  Standard buyer cost allocation.  The commission and each standard buyer 
designated pursuant to subsection 1 shall implement a transparent mechanism to track and 
recover or distribute the net costs or revenue from procuring distributed generation 
resources pursuant to this chapter.  These net costs or benefits must be reviewed by the 
commission and allocated to customers and recovered as set forth in section 3210-C, 
subsection 8.  Eligible costs and benefits include: 
A.  Incremental costs of serving as the standard buyer; 
B.  All payments to customers, subscribers and project sponsors under each 
procurement pursuant to sections 3477 to 3479; 
C.  Any costs of providing renewable energy credits to participating customers 
pursuant to section 3480, subsection 8; and 
D.  All revenue from sale of the output of distributed generation resources procured 
pursuant to this chapter. 
4.  Rules. The commission shall adopt rules to implement this section by January 1, 
2017. Rules adopted under this subsection are routine technical rules as defined in Title 5, 
chapter 375, subchapter 2-A. 
§3477.  Grid-scale solar procurement 
1.  Procurement.  The commission shall conduct a competitive solicitation at least 
once per year for long-term contracts for the output of grid-scale solar distributed 
generation resources with a nameplate capacity of up to 5 megawatts.  In each calendar 
year, the commission shall seek to procure approximately 20% of the capacity needed to 
meet the procurement target in section 3475, subsection 1, except that the commission 
may modify this annual allocation if it concludes that doing so would be in the best 
interests of all ratepayers.  Prior to a solicitation, the commission shall develop, in 
consultation with the standard buyer, a standard contract that commits all parties to 
commercially reasonable behavior and includes provisions to ensure that projects proceed 
to commercial operation on a reasonable timeline. 
2.  Bidder eligibility.  The commission may establish minimum requirements for 
bidders in a solicitation under subsection 1, including but not limited to site control, 
development experience, completion of an interconnection application and system details 
for potential bidders.  The commission may require bidders to pay an application fee to 
defray administrative costs.  
3.  Ensuring competition.  Prior to each solicitation under subsection 1, the 
commission shall establish standards to ensure that the solicitation has a sufficient 
number of unique bidders and quantity of offered capacity to be determined competitive.  
If the commission concludes based on these standards that a solicitation is not 
competitive, no bidders may be selected and the capacity available in that solicitation 
must be deferred to a subsequent solicitation.  The commission may adjust the maximum 
project size eligible for a solicitation to ensure that there is more than one bid selected. 
4.  Bid selection.  Following review of bids, if the commission determines that the 
solicitation under subsection 1 is competitive, the commission shall select one or more 
winning bidders and direct the standard buyer to negotiate and enter into a contract with 
the winning bidder or bidders for a term of 20 years at a specified contract rate.  The 
commission shall select bids that maximize benefits or minimize costs to all ratepayers.  
5.  Rules.  The commission shall adopt rules to implement this section by January 1, 
2017. Rules adopted under this subsection are routine technical rules as defined in Title 5, 
chapter 375, subchapter 2-A. 
§3478.  Large-scale community solar procurement 
1.  Procurement.  The commission shall conduct competitive solicitations for long-
term contracts for the output of large-scale community solar distributed generation 
resources.  Solicitations may be conducted twice per year, or less frequently at the 
discretion of the commission, but no less than once per year.  In each calendar year, the 
commission shall seek to procure approximately 20% of the capacity needed to meet the 
procurement target in section 3475, subsection 2; except that the commission may modify 
this annual allocation if it concludes that doing so would be in the best interests of all 
ratepayers.  Prior to a solicitation, the commission shall develop, in consultation with the 
standard buyer, a standard contract that commits all parties to commercially reasonable 
behavior and includes provisions to ensure that projects proceed to commercial operation 
on a reasonable timeline. 
2.  Bidder eligibility.  The commission may establish minimum requirements for 
bidders in a solicitation under subsection 1, including but not limited to site control, 
development experience, completion of an interconnection application and provision of 
system details.  The commission may require bidders to pay an application fee to defray 
administrative costs. 
3.  Ensuring competition.  Prior to each solicitation under subsection 1, the 
commission shall establish standards to ensure that the solicitation has a sufficient 
number of unique bidders and quantity of offered capacity to be determined competitive.  
If the commission concludes based on these standards that a solicitation is not 
competitive, no bidders may be selected and the capacity available in that solicitation 
must be deferred to a subsequent solicitation.  The commission may adjust the maximum 
project size eligible for a solicitation to ensure that there is more than one bid selected. 
4.  Bid selection.  Following review of bids in a solicitation under subsection 1, if the 
commission determines that the solicitation is competitive, the commission shall select 
one or more winning bidders and direct the standard buyer to negotiate and enter into a 
contract with the winning bidder or bidders for a term of 20 years at a specified contract 
rate.  The commission shall select bids that maximize benefits or minimize costs to all 
ratepayers. 
5.  Payment and minimum subscription.  The project sponsor and subscribers must 
receive the contract rate for the output of the large-scale community solar distributed 
generation resource, except that after one year of commercial operation any unsubscribed 
share of the project must be paid at the wholesale electricity rate. If less than 50% of a 
resource's subscriptions are 25 kilowatts or less, any amount less than 50% from 
subscriptions of this size are deemed unsubscribed. The project sponsor shall compensate 
the standard buyer in an amount equal to the difference between the contract rate and the 
wholesale electricity rate for the output of any share deemed unsubscribed under this 
subsection. 
6.  Determination of subscriber bill credit.  The bill credit to be allocated to each 
subscriber to a particular large-scale community solar distributed generation resource 
must be based on each subscriber's percentage interest of the total production of the large-
scale community solar distributed generation resource for the previous month.  Each 
billing month, the value of the credits allocated to each subscriber must be calculated by 
multiplying the number of kilowatt-hours equal to each subscriber's share by the 
resource's credit rate.  The project sponsor shall provide to the transmission and 
distribution utility, on a monthly basis and within reasonable periods set by that utility, 
the information required to calculate the bill credit to be provided to each subscriber.  
Payments to subscribers must be credited against the subscriber's monthly electricity bill 
in accordance with section 3481. 
The monthly output available for allocation as subscribed or unsubscribed energy must be 
determined by a revenue-grade meter installed and paid for by the project sponsor. 
7.  Exemption.  A project sponsor or subscriber is not considered a public utility or 
competitive electricity supplier solely as a result of the project sponsor's or subscriber's 
interest or participation in a large-scale community solar distributed generation resource. 
8.  Renewable energy credits.  The commission shall develop a standard disclosure 
to be provided by the project sponsor to all participating subscribers prior to their entering 
into a contract under this section that describes the effect of selling the renewable 
attributes of exported electricity to the standard buyer and explains how a subscriber may 
participate in the voluntary renewable energy credit market. 
The commission shall establish a mechanism to allow a residential or small business 
customer who has entered into a long-term contract under this section to purchase 
renewable energy credits equivalent to those the customer has sold to the standard solar 
buyer at a price equal to 80% of market value. 
9.  Consumer protection. The commission shall establish by rule consumer 
protection standards to protect subscribers from fraud and other unfair and deceptive 
business practices.  The commission may impose administrative penalties upon a project 
sponsor in accordance with chapter 15 and may order restitution for any party injured by 
a violation for which a penalty may be assessed pursuant to this subsection. 
The commission through its own counsel or through the Attorney General may apply to 
the Superior Court of any county of the State to enforce any lawful order made or action 
taken by the commission pursuant to this subsection.  The court may issue such orders, 
preliminary or final, as it considers proper under the facts established before it. 
10.  Disclosures. A project sponsor selling or reselling a subscription in a large-scale 
community solar distributed generation resource shall provide a disclosure to potential 
subscribers that includes the following prior to the sale or resale of that subscription: 
A.  A good faith estimate of the annual kilowatt-hours to be delivered by the large-
scale community solar distributed generation resource based on the size of the 
subscriber's interest; 
B.  A plain language explanation of the terms under which the bill credits under 
section 3481 will be calculated; 
C.  A plain language explanation of the contract provisions regulating the disposition 
or transfer of the subscription; and 
D.  A plain language explanation of the costs and benefits to the potential subscriber, 
based on the subscriber's current usage and applicable tariff, for the term of the 
proposed contract. 
The commission may establish a standard disclosure to be provided to potential 
subscribers by a project sponsor to disclose this information or such other information as 
the commission may determine necessary to protect the interests of potential subscribers. 
11.  Transfer of subscriptions.  A subscriber may transfer or assign a subscription to 
the associated project sponsor or to any person or entity who qualifies to be a subscriber 
in the large-scale community solar distributed generation resource. A project sponsor 
must provide a process for assignment or transfer of a subscription.  A project sponsor 
may not impose fees on a subscriber who moves to a different location within the same 
utility service territory. 
12.  Utility participation in community solar.  A transmission and distribution 
utility may collaborate with a project sponsor in a nondiscriminatory manner to increase 
customer participation in large-scale community solar distributed generation resource 
projects.  Collaboration with a project sponsor may include, but is not limited to: 
A.  Customer education; 
B.  Lease of utility-owned land on a competitive basis; 
C.  Project joint advertising; 
D.  Assistance with customer outreach and acquisition; and 
E.  Program administration.  
A transmission and distribution utility may propose fees for services provided or may file 
annually to recover any reasonable costs of collaboration to advance large-scale 
community solar distributed generation resource projects under this section. 
Collaboration with a project sponsor under this subsection does not create an affiliated 
interest or a financial interest in generation or generation-related assets. 
13.  Rules.  The commission shall adopt rules to implement this section by January 1, 
2017. Rules adopted under this subsection are routine technical rules as defined in Title 5, 
chapter 375, subchapter 2-A. 
§3479.  Commercial and industrial solar procurement 
1.  Procurement.  The commission shall conduct a competitive solicitation as 
frequently as the commission determines reasonable but no less than once per year for 
long-term contracts for the output of solar distributed generation resources of up to 2 
megawatts associated with a single commercial or industrial customer account.  In each 
calendar year, the commission shall seek to procure approximately 20% of the capacity 
needed to meet the procurement target in section 3475, subsection 3; except that the 
commission may modify this annual allocation if it concludes that doing so would be in 
the best interests of all ratepayers.  Prior to a solicitation, the commission shall develop, 
in consultation with the standard buyer, a standard contract that commits all parties to 
commercially reasonable behavior and includes provisions to ensure that projects proceed 
to commercial operation on a reasonable timeline. 
2.  Bidder eligibility.  The commission may establish minimum requirements for 
bidders in a solicitation under subsection 1, including but not limited to site control, 
development experience, completion of an interconnection application and system details 
for potential bidders.  The commission may require bidders to pay an application fee to 
defray administrative costs. 
3.  Ensuring competition.  Prior to each solicitation under subsection 1, the 
commission shall establish standards to ensure that the solicitation has a sufficient 
number of unique bidders and quantity of offered capacity to be determined competitive. 
If the commission concludes based on these standards that a solicitation is not 
competitive, no bidders may be selected and the capacity available in that solicitation 
must be deferred to a subsequent solicitation. The commission may adjust the maximum 
project size eligible for a solicitation to ensure that there is more than one bid selected. 
4.  Bid selection.  Following review of bids, if the commission determines that the 
solicitation is competitive, the commission shall select one or more winning bidders and 
direct the standard buyer to negotiate and enter into a contract with the winning bidder or 
bidders for a term of 20 years at a specified contract rate to be paid as a bill credit to the 
commercial and industrial customer.  The commission shall select bids that maximize 
benefits or minimize costs to all customers. 
5.  Determination of bill credit.  The bill credit to be allocated to a commercial and 
industrial customer must be based on the total kilowatt-hours of energy production of the 
solar distributed generation resource for the previous month.  Each billing month, the 
value of the credits must be calculated by multiplying the number of kilowatt-hours by 
the contract rate.  Payments to customers must be credited against the customer's monthly 
electricity bill in accordance with section 3481. 
The monthly production must be determined by a revenue-grade meter installed and paid 
for by the participating commercial and industrial customer.  
6.  Exemption.  A customer is not considered a public utility or competitive 
electricity supplier solely as a result of entering into a contract with the standard buyer 
under this section. 
7.  Rules.  The commission shall adopt rules to implement this section by January 1, 
2017. Rules adopted under this subsection are routine technical rules as defined in Title 5, 
chapter 375, subchapter 2-A. 
§3480.  Residential and small business procurement 
1.  Long-term contracts. The standard buyer shall enter into a long-term contract 
with a residential or small business customer for the output of a distributed generation 
resource of 250 kilowatts or less.  The rate paid for the output must be set by the 
commission in accordance with subsection 2.  Payments to customers under a contract 
under this section must be credited against the customer's monthly electricity bill in 
accordance with section 3481. 
2.  Rates.  The commission shall establish the rates to be paid for the output of 
distributed generation resources under a contract between a residential or small business 
customer and the standard buyer under subsection 1. 
The initial rate paid to new installations must decline as the total level of new residential 
and small business capacity relative to the targets in section 3475, subsection 4 increases. 
Rates must be sufficient to ensure that the total capacity of installations meets the 
residential and small business procurement targets set forth in section 3475, subsection 4.  
In determining whether rates are sufficient, the commission shall consider independent 
analysis of installation costs and development projections in establishing the rates, 
including but not limited to those from the United States Department of Energy, Office of 
Energy Efficiency and Renewable Energy, National Renewable Energy Laboratory. 
Rates must be set at levels intended to ensure that total annual contract payments for new 
solar distributed generation resources procured under this section are not expected to 
exceed $10,500,000 per year in 2022, if the procurement targets in section 3475, 
subsection 4 are met, assuming an export rate of 50% and that the adjustment mechanism 
in subsection 3 is not triggered.  Rates set under this subsection may be constant or 
increase over the term of the contract. 
The commission may establish separate rates for specific types of distributed generation 
resources or additional incentives or a per kilowatt-hour increase in contract price for 
resources with attributes that maximize benefits or lower costs to all customers. 
3.  Rate adjustment mechanism.  The commission shall establish an adjustment 
mechanism to automatically increase rates for new customers by a specified amount if the 
total solar distributed generation resource capacity installed by residential and small 
business customers under this section is less than 85% of the applicable target established 
in section 3475, subsection 4.  The evaluation to determine whether this adjustment is 
triggered must occur at 6-month intervals. 
4.  Self-consumption.  Notwithstanding section 1, a residential or small business 
customer may offset that customer's own consumption using that customer's distributed 
generation resource on an hourly basis. The commission may specify a longer period for 
measuring self-consumption if it determines that a transmission and distribution utility 
cannot track consumption on an hourly basis using a standard residential meter. 
5.  Small-scale community distributed generation resources.  Residential and 
small business customers may jointly participate in a single distributed generation 
resource and receive payments under subsection 1 in proportion to each contracted share 
of the resource.  The commission shall ensure that distributed generation resources with 
shared ownership at the same location are separate facilities.  A customer or owner is not 
considered a public utility or competitive electricity supplier solely as a result of interest 
or participation in a single shared distributed generation resource under this subsection. 
6.  Continuation of net energy billing.  The commission's net energy billing rules 
existing on the effective date of this subsection remain in effect, without modification, for 
all customers until new rules pursuant to subsection 10 take effect.  On the effective date 
of the rules established pursuant to subsection 10, net energy billing pursuant to section 
3209-A is not available to new customers, unless reinstated pursuant to the program 
review described in subsection 11. 
7.  Existing net energy billing customers.  A customer who has elected net energy 
billing pursuant to section 3209-A prior to the effective date of rules established pursuant 
to subsection 10 continues to be eligible for compensation in the form of a kilowatt-hour 
credit on the customer's monthly electricity bill for generation in excess of that customer's 
consumption for that month, which may be carried forward and applied to the customer's 
subsequent monthly electricity bills over 12 months, or the financial equivalent of that 
credit, for 12 years from the effective date of rules established pursuant to subsection 10.  
The commission shall establish a process to permit customers under this subsection to 
enter into contracts and receive payments under subsections 1 and 2. 
A customer who has elected net energy billing between January 1, 2016 and the effective 
date of the rules established pursuant to subsection 10 may choose to enter into a contract 
at the initial rate established by the commission under subsection 2 prior to any decline in 
rate, as long as that customer makes that choice within one year of the effective date of 
the rules. 
The capacity of a net energy billing customer who has installed a solar distributed 
generation resource and participated in net energy billing under section 3209-A prior to 
the effective date of rules established pursuant to subsection 10 and elects to enter into a 
long-term contract under this subsection may not be counted against the procurement 
target in section 3475, subsection 4 or the cap on total annual contract payments under 
subsection 2 or trigger any decline in prices. 
No later than December 31, 2028, the commission shall initiate a proceeding to consider 
methods to allow an owner of a distributed generation resource to continue to offset that 
owner's own consumption and receive fair compensation for exported power in a manner 
that benefits all ratepayers. 
8.  Renewable energy credits.  A participating residential or small business 
customer retains all environmental attributes associated with electricity generated by a 
distributed generation resource that is not exported to the grid and sold to the standard 
buyer.  The commission shall develop a standard disclosure to be provided to all 
participating customers prior to their entering into a contract under this section that 
describes the effect of selling the renewable attributes of exported electricity to the 
standard buyer and explains how a customer may participate in the voluntary renewable 
energy credit market. 
The commission shall establish a mechanism to allow a residential or small business 
customer who has entered into a long-term contract under this section to purchase 
renewable energy credits equivalent to those the customer has sold to the standard solar 
buyer at a price equal to 80% of market value. 
9.  Consumer-owned utility exemption.  This section does not apply to a consumer-
owned transmission and distribution utility and its customers. 
10.  Rules. The commission shall provisionally adopt rules to implement this section 
by December 31, 2016.  Rules adopted under this subsection are major substantive rules 
as defined in Title 5, chapter 375, subchapter 2-A. 
11.  Program review.  By 18 months after the effective date of rules adopted 
pursuant to subsection 10, or when 21 megawatts of capacity have been installed by 
residential and small business customers pursuant to this section, whichever is earlier, the 
commission shall initiate an expedited proceeding to determine whether: 
A.  The procurement targets in section 3475, subsection 4 are likely to be met through 
2022; and 
B.  The total cost to all customers is likely to be less than if the procurement targets in 
section 3475, subsection 4 were installed under the commission's net energy billing 
rules. 
If the commission concludes that both conditions under paragraphs A and B will be met, 
the rules established pursuant to subsection 10 remain in effect, and net energy billing 
pursuant to section 3209-A is not available to new customers in the future. 
If the commission concludes that the condition under paragraph A or B will not be met, 
the commission shall make findings regarding the reasons the condition will not be met 
and provide a report summarizing its conclusions to the joint standing committee of the 
Legislature having jurisdiction over utility matters within 30 days of the start of the 
rules adopted under this section can be modified to enable the program to meet 
procurement targets or reduce costs so that the conditions under paragraphs A and B are 
likely to be met in the future, it shall make and submit such changes to the Second 
Regular Session of the 129th Legislature. If the commission determines that these rules 
cannot be modified to meet these targets or reduce costs, the commission shall review its 
net energy billing rules or recommend alternative mechanisms to support distributed 
generation in a manner that benefits all ratepayers. If the commission does not propose 
changes to the rules adopted pursuant to subsection 10 or new rules are not adopted 
within 60 days of the adjournment of the Second Regular Session of the 129th 
Legislature, net energy billing pursuant to section 3209-A must be made available to new 
customers on that date.   
§3481.  Bill credits 
This section applies to any credits assigned to a customer's bill under this chapter. 
If the value of the credit to be applied to a customer's bill is less than the amount 
owed by the customer at the end of the applicable billing period, the customer must be 
billed for the difference between the amount shown on the bill and the value of the 
available credits. 
If the value of the credits to be applied to a customer's bill is greater than the amount 
owed by the customer at the end of the billing period, the remaining value of the credit 
must carry over from month to month until a specified date each year.  The commission 
shall establish a minimum of 2 standard credit expiration dates that provide customers the 
opportunity to use bill credits to the maximum extent practicable in a given 12-month 
period.  Any remaining credits as of that date must be credited to the standard buyer and 
may not be applied against any future customer bill. 
Sec. 7.  Siting of solar distributed generation resources.  By January 1, 2019, 
the Public Utilities Commission shall report to the joint standing committees of the 
Legislature having jurisdiction over utility matters and natural resources matters the 
number of new solar distributed generation resources procured pursuant to the Maine 
Revised Statutes, Title 35-A, sections 3477 to 3479 that have been built on pre-existing 
impervious surfaces or brownfields where future development is affected by the presence 
or potential presence of a hazardous substance.  The report must include measures to 
encourage siting of distributed generation resources at such locations identified by the 
commission in cooperation with the Department of Environmental Protection. 
SUMMARY 
This bill is reported out by the Joint Standing Committee on Energy, Utilities and 
Technology pursuant to Resolve 2015, chapter 37, section 2.  The resolve directed the 
Public Utilities Commission to convene a stakeholder group to develop an alternative to 
net energy billing.  This bill reflects the consensus developed in that process and 
subsequent negotiations between stakeholders and establishes a comprehensive 
framework to support distributed generation in Maine. 
The committee has not taken a position on the substance of this bill, and by reporting 
this bill out, the committee is not suggesting and does not intend to suggest that it agrees 
or disagrees with any aspect of this bill.  The committee is reporting the bill out for the 
sole purpose of turning the commission's proposal into a printed bill that can be referred 
to the committee for an appropriate public hearing and subsequent processing in the 
normal course.  The committee is taking this action to ensure clarity and transparency in 
the legislative review of the proposal. 
The bill directs the Public Utilities Commission to enter into long-term contracts with 
a duration of 20 years for the procurement of 248 megawatts of solar energy over a 5-year 
period beginning in 2017. The bill specifies that 24% or 60 megawatts are to be allotted 
to grid-scale solar distributed generation resources; 19% or 45 megawatts to large-scale 
community solar distributed generation resources; 10% or 25 megawatts to commercial 
and industrial distributed generation resources; and 47% or 118 megawatts to residential 
and small business distributed generation resources. 
The bill creates a standard buyer, which the bill specifies is the investor-owned 
transmission and distribution utility in its service territory. The bill allows the 
commission to designate another entity as the standard buyer if it determines it is in the 
best interest of ratepayers to do so. The purpose of the standard buyer is to purchase the 
output of each category of distributed generation resource, aggregate the portfolio of 
distributed generation resources procured and sell it into the relevant New England 
markets. 
The bill directs the commission to conduct competitive solicitations for 20% of the 5-
year target procurement for long-term contracts for the output of grid-scale, large-scale 
community, and commercial and industrial solar distributed generation. The frequency of 
solicitation varies with the particular category of distributed generation resource. The bill 
directs the commission and standard buyer to develop a contract prior to a solicitation that 
will ensure that projects proceed to commercial operation on a reasonable timeline and 
commits all parties to commercially reasonable behavior. The bill gives the commission 
authority to establish requirements for bidder eligibility and standards to ensure 
competition in the bidding process. The bill also specifies that if the solicitation is 
deemed competitive the commission must select one or more winning bids and direct the 
standard buyer to negotiate and enter into a contract with the winning bidder or bidders. 
The bill requires the commission to select bids that maximize the benefits or minimize the 
costs to all ratepayers. 
The bill provides that residential and small business customers receive 20-year 
contracts at a set price for new distributed generation resources that are 250 kilowatts or 
less.  The bill specifies that those customers would have the option of selling their entire 
output or using their generation to offset their electric consumption with the ability to sell 
any excess electricity at prices established under the contracts. The bill provides that the 
commission would set the contract price and the price new customers receive would 
decrease over time as the installations increase. Contract prices set by the commission 
must be high enough to meet the specified targets but be below a cap on the overall cost 
of this portion of the program. The bill also allows the commission to establish a rate 
adjustment mechanism to increase rates for new customers to increase the number of 
installations and to meet targets.  
The bill specifies that existing net metering customers may continue to net meter 
under commission rules for 12 years after the effective date of major substantive rules 
adopted as required by the bill to implement the residential and small business solar 
program. The bill allows existing net metering customers to enter into a long-term 
contract under the new program, but does not allow new customers to participate in net 
metering.  
The bill requires the commission to initiate a proceeding 18 months after the effective 
date of major substantive rules adopted to implement the residential and small business 
solar program, or 21 megawatts of capacity has been installed, whichever is sooner, to 
determine if installation targets are likely to be met by 2022, and the total cost to all 
customers is likely to be less using long-term contracts, rather than net metering. The bill 
specifies that if the commission does not find that installation targets are going to be met 
and long-term contracts are not going to be more cost-effective than net metering, the 
commission may modify the rules, with legislative approval, to meet the goals and reduce 
costs. If the rules cannot be modified and the commission does not propose an alternative 
to the Second Regular Session of the 129th Legislature, or if the Legislature fails to act, 
then net metering will be available to new customers.  
The bill also allows for a solar power offer, in addition to the existing green power 
offer under the Maine Revised Statutes, Title 35-A, section 3212-A, that is available to all 
residential and small commercial electricity customers. Like the green power offer, the 
solar power offer sunsets on April 1, 2021.