An Act To Advance Locally Owned Solar Energy Systems
Maine Legislature, Session 128, LD 1352
Committee: Energy, Utilities and Technology
Sponsors: WOODSOME, DION
Amends: 35-A MRSA §3210-F, 35-A MRSA §3475

Legislative Document
No. 1352
S.P. 460
In Senate, April 6, 2017
An Act To Advance Locally Owned Solar Energy Systems
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
HEATHER J.R. PRIEST
Secretary of the Senate
Presented by Senator WOODSOME of York.
Cosponsored by Senator: DION of Cumberland.
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  35-A MRSA §3210-F, sub-§1, ¶B, as enacted by PL 2013, c. 454, §2, is 
amended to read: 
B.  "Long-term energy contract" means a contract with an investor-owned 
transmission and distribution utility entered into under section 3210-C, 3475 or  
section 3604. 
Sec. 2.  35-A MRSA §3475 is enacted to read: 
§3475.  Grid-scale solar procurement 
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A.  "Grid-scale solar electricity generating facility" or "grid-scale project" means a 
photovoltaic electricity generating system with a generating capacity between 2 
megawatts and 10 megawatts. 
B.  "Qualifying brownfields site" means a municipally owned inactive capped 
landfill, a municipally owned active landfill with capped sections that can 
accommodate a solar installation, or a site that is contaminated with hazardous 
material that has been capped or remediated in accordance with a plan approved by 
the appropriate state or federal agency. 
C.  "Qualifying local owner" means an individual who is a resident of the State or a 
business or corporation organized under the laws of the State, at least 51% of which 
is owned by one or more residents of the State. 
2.  Procurement.  The commission shall issue a request for proposals within 6 
months of the effective date of this section to procure 35 megawatts of installed 
generating capacity from grid-scale solar electricity generating facilities as follows: 
A.  One grid-scale project, 10 megawatts in size, located on a qualifying brownfields 
site; 
B.  Three grid-scale projects, 5 megawatts in size; and 
C.  Five grid-scale projects, 2 megawatts in size. 
If the commission does not receive eligible proposals to procure all 35 megawatts of 
installed generating capacity from grid-scale solar electricity generating facilities, the 
commission may issue additional requests for proposals every 6 months until all 35 
megawatts are procured. 
The commission shall give preference to a 2-megawatt or 5-megawatt grid-scale project 
that is proposed to be located on a qualifying brownfields site.  The commission shall 
give preference to those proposals that are most likely to begin commercial operation the 
soonest. 
Prior to the issuance of a request for proposals, the commission shall develop, in 
consultation with an investor-owned transmission and distribution utility, a standard 
contract that commits all parties to commercially reasonable behavior and includes 
provisions to ensure that grid-scale projects proceed to commercial operation within 24 
months of receiving a contract. 
3.  Eligibility.  In order to be eligible for a contract under this section, an applicant 
for a grid-scale project must submit to the commission in response to a request for 
proposals: 
A.  Documentation of a resolution of support passed by the municipal legislative 
body or municipal officers of the municipality in which the grid-scale project is 
proposed to be located; 
B.  Evidence of approved interconnection into the electric grid of the State or that an 
interconnection application has been filed with the appropriate transmission and 
distribution utility and that required applicable fees and costs have been paid; 
C.  Evidence that the applicant is actively engaged in all necessary permitting 
processes required for the grid-scale project to be constructed; 
D.  Written assurance that the project will be operational within 24 months of 
receiving a contract; and 
E.  Evidence that at least 51% of the facility is owned by a qualifying local owner. 
4.  Long-term contracts.  After reviewing proposals, the commission may direct an 
investor-owned transmission and distribution utility to enter into a long-term contract for 
the energy and capacity of an eligible grid-scale project located within the service 
territory of the utility.  The contract must include the following provisions: 
A.  A term of 20 years, commencing from when the grid-scale project first delivers 
energy to the transmission and distribution utility's system; 
B.  A price per kilowatt-hour to be paid for both the energy and capacity of the 
grid-scale project of $0.067 regardless of project size or location; and 
C.  A provision requiring ownership and monetary benefits from any renewable 
energy credit generated by the grid-scale project to be retained by the owner of the 
grid-scale project. 
Notwithstanding paragraph C, the commission may direct the utility to enter into a 
long-term contract for the purchase of renewable energy credits if, in its discretion, it 
determines there is a benefit to ratepayers based on the terms and pricing offered to the 
utility from the grid-scale project.  A contract for renewable energy credits may not be for 
a term exceeding 15 years. 
An investor-owned transmission and distribution utility shall sell energy, capacity or 
renewable energy credits purchased pursuant to this section into the wholesale electricity 
market or take any other action, as directed by the commission, related to energy, 
capacity or renewable energy credits purchased pursuant to this section. 
A consumer-owned transmission and distribution utility may, at the option of the utility, 
and with commission approval, enter into long-term contracts for eligible grid-scale 
projects located within the service territory of the utility for energy, capacity or renewable 
energy credits, as long as the necessary infrastructure exists to transmit the electricity 
generated into an investor-owned transmission and distribution utility's service territory. 
Contract payments for energy may be made only after the contracted amounts of energy 
have been provided. 
5.  Cost recovery.  The commission shall ensure that all costs and direct financial 
benefits associated with contracts entered into under this section are allocated to 
ratepayers in accordance with section 3210-F.  A price differential existing at any time 
during the term of the contract between the contract price and the prevailing market price 
at which the energy, capacity or renewable energy credit is sold must be reflected in the 
amounts charged to ratepayers and may not be considered imprudent. 
For the purposes of this subsection, "ratepayer" does not include those customers 
receiving service at a transmission or subtransmission voltage level as defined in section 
10110, subsection 6. 
6.  Rules.  The commission shall adopt rules to provide protections for ratepayers 
over the term of the contracts entered into pursuant to this section.  Rules adopted under 
this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 
2-A. 
Sec. 3.  Rules.  Within 6 months of the effective date of this Act, the Public Utilities 
Commission shall adopt rules necessary to implement the Maine Revised Statutes, Title 
35-A, section 3475. 
SUMMARY 
This bill requires the Public Utilities Commission to issue a request for proposals to 
procure 35 megawatts of grid-scale solar electricity.  This bill requires that one project be 
megawatts in size and be located on a qualifying brownfields site, 3 projects be 5 
megawatts in size and 5 projects be 2 megawatts in size.  In addition to meeting other 
requirements, an applicant for a grid-scale project must show that at least 51% of the 
facility is owned locally in order to be eligible for a contract.  The commission may direct 
investor-owned transmission and distribution utilities to enter into contracts with a term 
of 20 years for the energy and capacity of a project at a rate of $0.067 per kilowatt-hour.  
The bill directs the commission to adopt rules to implement the procurement process and 
to ensure protections for ratepayers.