An Act To Promote Solar Energy Projects and Distributed Generation Resources in Maine
Maine Legislature, Session 129, LD 1711
Committee Amendment CA_A_S295 (Senate)
Amends: 35-A MRSA §3201, 35-A MRSA §3209-A, 35-A MRSA §3209-B

COMMITTEE AMENDMENT "ft" to S.P. 565, L.D. 1711, Bill, "An Act To 
Promote Solar Energy Projects and Distributed Generation Resources in Maine" 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'PART A 
Sec. A-1. 35-A MRSA §3201, sub-§11-A is enacted to read: 
11-A. Investor-owned transmission and distribution utility. 
"Investor-owned 
transmission and distribution utility" has the same meaning as in section 3104, subsection 
1, paragraph A. 
Sec. A-2. 35-A MRSA §3201, sub-§13-A is enacted to read: 
13-A. Nameplate capacity. "Nameplate capacity" means the installed or rated 
capacity of a power generator. 
Sec. A-3. 35-A MRSA §3209-A, as amended by PL 2019, c. 16, §1, is further 
amended to read: 
§3209-A. Net energy billing 
The commission may adopt or amend rules governing net energy billing. Rules 
adopted or amended under this section are major substantive rules as defined in Title 5, 
chapter 375, subchapter 2-A. "Net energy billing" means a billing and metering practice 
under v!hich a customer is billed on the basis of the difference between the kilowatt hours 
delivered by a transmission and distribution utility to the customer over a billing period 
and the kilowatt hours delivered by the customer to the transmission and distribution 
utility over the billing period, taking into aooount accumulated unused kilowatt hour 
credits from the previous billing period. 
1. Definitions. As used in this section, the following terms have the following 
meanings. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" i\ "to S.P. 565, L.D. 1711 ( 
· )' 
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A. "Customer" means a customer of a transmission and distribution utility in the 
State. 
B. "Distributed generation resource" means an electric generating facility that uses a 
renewable fuel or technology under section 3210, subsection 2, paragraph B-3 and is 
located in the service territory of a transmission and distribution utility in the State. 
C. 
"Net energy billing" means a billing and metering practice under which a 
customer is billed on the basis of the difference between the kilowatt-hours delivered 
by a transmission and distribution utility to the customer over a billing period and the 
kilowatt-hours delivered by the customer to the transmission and distribution utility 
over the billing period, taking into account accumulated unused kilowatt-hour credits 
from the previous billing period. 
2. 
Financial interest required. 
The commission shall allow a customer to 
participate in net energy billing if the customer has a financial interest in a distributed 
generation resource or in a generation resource that has a net energy billing arrangement 
on the effective date of this section, including facility ownership, a lease agreement or a 
power purchase agreement. 
3. Shared financial interest for investor-owned utility customers; limitation. 
Multiple customers of an investor-owned transmission and distribution utility that have 
distinct billing accounts with that utility may share a financial interest in a distributed 
generation resource under subsection 2. Any number of customers of an investor-owned 
transmission and distribution utility with a shared financial interest in a distributed 
generation resource may participate in net energy billing, except that the number of 
eligible customers or meters is limited to 10 for a shared financial interest in a distributed 
generation resource located in the service territory of an investor-owned transmission and 
distribution utility located in an area administered by the independent system 
administrator for northern Maine or any successor of the independent system 
administrator for northern Maine unless the commission determines that the utility's 
billing system can accommodate more than 10 accounts or meters for the purpose of net 
energy billing. 
4. System size. The nameplate capacity of a distributed generation resource that 
may be used for net energy billing must be less than 5 megawatts, except that, if a 
municipality is the customer participating in net energy billing, the nameplate capacity of 
a distributed generation resource located in that municipality that may be used for the net 
energy billing may be 5 megawatts or more, as long as less than 5 megawatts of metered 
electricity from the resource is used for net energy billing. 
Sec. A-4. 35-A MRSA §3209-B is enacted to read: 
§3209-B. Commercial and institutional net energy billing 
The commission shall establish by rule, in accordance with this section, a net energy 
billing program for commercial and institutional customers of investor-owned utilities. 
1. Definitions. As used in this section, the following terms have the following 
meanings. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" fl "to S.P. 565, L.D. 1711 (C~, ,JCf~) 
A. "Commercial and institutional net energy billing program" or "program" means 
the net energy billing program established pursuant to this section. 
B. 
"Commercial or institutional customer" or "customer" means a nonresidential 
customer of an investor-owned transmission and distribution utility in the State. 
C. "Distributed generation resource" has the same meaning as in section 3209-A, 
subsection 1. paragraph B. 
D. "Net energy billing" means the system of bill credits available under the program 
as described in subsection 5. 
2. 
Financial interest. 
The program must allow a commercial or institutional 
customer to participate in the program if the customer has a financial interest in a 
distributed generation resource, including facility ownership, a lease agreement or a 
power purchase agreement. 
3. System size. The nameplate capacity of a distributed generation resource that 
may be used for net energy billing under this section must be less than 5 megawatts. 
4. 
Shared financial interest; limitation. Multiple commercial or institutional 
customers that have distinct billing accounts with an investor-owned transmission and 
distribution utility may share a financial interest in a distributed generation resource 
under subsection 2. 
Any number of commercial or institutional customers may 
participate in net energy billing with a shared interest in a distributed generation resource, 
except that the number of customers or meters is limited to 10 for a shared interest in a 
distributed generation resource located in the service territory of an investor-owned 
transmission and distribution utility located in an area administered by the independent 
system administrator for northern Maine or any successor of the independent system 
administrator for northern Maine unless the commission determines that the utility's 
billing system can accommodate more than 10 accounts or meters for the purpose of net 
energy billing. 
5. Tariff rate; bill credits. The commission shall establish by rule a tariff rate for 
customers participating in the program. The initial tariff rate must be established no later 
than December 1, 2019. 
A. The tariff rate must equal the standard offer service rate established under section 
3212 that is applicable to the customer receiving the credit plus 75% of the effective 
transmission and distribution rate for the rate class that includes the smallest 
commercial customers of the investor-owned transmission and distribution utility. 
B. A customer participating in the program must receive for electricity delivered to 
the electric grid from a distributed generation resource in which the customer has a 
financial interest a bill credit based on the tariff rate to apply against the costs of 
electricity delivered to the customer by the investor-owned transmission and 
distribution utility. 
C. A bill credit under the program as described in paragraph B may be applied to any 
portion of a customer's electricity bill. Credits that remain unused at the end of any 
billing period may be carried forward for up to one year from the end of that billing 
period. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" H "to S.P. 565, L.D. 1711 ( c "- ::}'-,c-, \ 
D. A customer participating in the program who remains eligible to participate in the 
pro gram must be allowed to receive a bill credit based on the tariff rate for a period of 
no less than 20 years from the date of first receiving the credit. 
6. 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. 
Sec. A-5. Reports. By December 1, 2021, the Public Utilities Commission shall 
provide a report to the joint standing committee of the Legislature having jurisdiction 
over energy matters on the status of metering and billing system capabilities for 
investor-owned transmission and distribution utilities in the State. 
The report must 
include capabilities of systems to reliably offer time-differentiated rates for delivery and 
supply of energy; the commission's level of confidence in metering and billing systems to 
provide accurate information to utilities, consumers and the commission; the capacity of 
systems to accommodate rates for bidirectional flow of power for customers with 
distributed energy resources; and the degree to which systems are being used to achieve 
the smart grid policy goals under the Maine Revised Statutes, Title 35-A, section 3143. 
The commission shall report on any changes to rates or rules or other changes the 
commission intends to adopt to increase the effectiveness of systems under this paragraph 
and may make recommendations to the joint standing committee. 
The joint standing committee of the Legislature having jurisdiction over energy 
matters may report out legislation based on any recommendations under this section to 
the Second Regular Session of the 130th Legislature. 
Sec. A-6. Evaluation. The Public Utilities Commission shall evaluate net energy 
billing under the Maine Revised Statutes, Title 35-A, section 3209-A when the total 
amount of generation capacity involved in net energy billing in the State reaches 10% of 
the total maximum load of transmission and distribution utilities in the State or 3 years 
after the effective date of this Act, whichever comes first. The commission shall evaluate 
the effectiveness of net energy billing in achieving state policy goals and providing 
benefits to ratepayers and submit a report to the joint standing committee of the 
Legislature having jurisdiction over energy matters with its findings. The joint standing 
committee may report out legislation based on the recommendations. 
Sec. A-7. Rules. Notwithstanding Public Law 2019, chapter 16, section 2, the 
Public Utilities Commission may adopt rules prior to July 1, 2020 to implement the 
changes made by this Act to Title 35-A, section 3209-A. Notwithstanding Title 35-A, 
section 3209-A, rules adopted for this purpose prior to July 1, 2020 are routine technical 
rules, as defined in Title 5, chapter 375, subchapter 2-A. 
PARTB 
Sec. B-1. 35-A MRSA c. 34-C is enacted to read: 
CHAPTER 34-C 
DISTRIBUTED GENERATION 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" ll "to S.P. 565, L.D. 1711 (S' ::){,\'S;J 
§3481. Definitions 
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings. 
1. Bid rate. "Bid rate" means the rate proposed under a qualified bid for the output 
of a distributed generation resource in response to a competitive procurement solicitation. 
2. Clearing price. "Clearing price" means the highest bid rate accepted by the 
commission for a procurement under this chapter. 
3. Commercial or institutional customer. "Commercial or institutional customer" 
means a nonresidential customer of an investor-owned transmission and distribution 
utility in the State. 
4. Credit rate. "Credit rate" means the per-kilowatt-hour rate used to calculate the 
monetary value of a distributed generation resource. The credit rate is equal to the 
per-kilowatt-hour rate in the long-term contracts entered into between a standard buyer or 
a transmission and distribution utility and a project sponsor and must be the same for all 
subscribers of a particular shared distributed generation resource. 
5. Distributed generation resource. "Distributed generation resource" means an 
electric generating facility with a nameplate capacity of less than 5 megawatts that uses a 
renewable fuel or technology under section 3210, subsection 2, paragraph B-3 and is 
located in the service territory of a transmission and distribution utility in the State. 
6. 
Energy storage system. 
"Energy storage system" means a commercially 
available technology that uses mechanical. chemical or thermal processes for absorbing 
energy and storing it for a period of time for use at a later time. 
7. 
Investor-owned transmission and distribution utility. 
"Investor-owned 
transmission and distribution utility" has the same meaning as in section 3104, subsection 
1. paragraph A. 
8. Kilowatt. "Kilowatt" means 1,000 watts, measured in alternating current. 
9. Kilowatt-hour. "Kilowatt-hour" means one kilowatt of power sustained for one 
hour. 
10. Megawatt. "Megawatt" means 1,000,000 watts, measured in alternating current. 
When used in reference to a generation resource, a megawatt is measured by the 
generator's nameplate capacity. 
11. 
Nameplate capacity. 
"Nameplate capacity" means the installed or rated 
capacity of a power generator. 
12. Offer. "Offer" means a proposal to install and operate a distributed generation 
resource of a specified capacity in exchange for a contract with a standard buyer 
designated pursuant to section 3483. 
13. 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. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" H "to S.P. 565, L.D. 1711 l /'). ,)/ {j\J 
14. Project sponsor. "Project sponsor" means an entity or its successor or assignee 
that owns or operates: 
A. A shared distributed generation resource on behalf of subscribers; or 
B. A commercial or institutional distributed generation resource. 
15. 
Qualified bid. 
"Qualified bid" means a bid to supply the output from a 
distributed generation resource that the commission determines meets the minimum 
qualification requirements established by rule. 
16. Rate. "Rate" means a price per kilowatt-hour of delivered energy as measured 
by a revenue grade meter, as defined by the commission by rule, at a distributed 
generation resource's point of connection to the electric grid. 
17. 
Shared distributed generation resource. 
"Shared distributed generation 
resource" means a distributed generation resource that is selected in a procurement under 
section 3486 the beneficial use of the output of which is owned by or allocated to 
subscribers. 
18. 
Subscriber. 
"Subscriber" means a retail customer of a transmission and 
distribution utility that owns or has the right to a subscription and that has identified an 
account to which the subscription is attributed. 
19. 
Subscription. 
"Subscription" means a proportional interest in a shared 
distributed generation resource. Each subscription must be sized to represent at least one 
kilowatt of the resource's generating capacity. 
§3482. Specific measures to support distributed generation 
1. Procurements. The commission shall procure distributed generation resources in 
the shared distributed generation and commercial or institutional distributed generation 
market segments using the targets and procurement methods described in this chapter. 
2. 
Participation in wholesale markets. 
The commission and investor-owned 
transmission and distribution utilities shall take all commercially reasonable steps to 
promote the participation of distributed generation resources in serving the State's energy 
needs and in the wholesale electricity, capacity and ancillary service markets. 
3. Change in tax treatment. If a change in federal tax laws, regulations 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 energy matters describing the 
impact of these changes and recommending any actions necessary to maintain the 
benefits of the procurements under this chapter. 
4. Timely interconnection. The commission shall ensure the timely review and 
execution of interconnection requests and the timely completion of work needed for the 
safe, reliable and cost-effective interconnection of distributed generation resources. The 
commission shall establish by rule requirements for investor-owned transmission and 
distribution utilities to interconnect distributed generation resources to the grid and 
financial penalties to ensure timely actions by those utilities to achieve the procurements 
under sections 3485 and 3486. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" /+ "to S.P. 565, L.D. 1711 r) -J_q \) 
§3483. Standard buyer 
A standard buyer designated pursuant to this section shall aggregate the output of the 
portfolio of distributed generation resources procured pursuant to this chapter and sell or 
use the output of the resources in a manner that maximizes the value of the portfolio of 
the resources to all ratepayers. 
1. 
Designation of standard buyer. 
Each investor-owned transmission and 
distribution utility serves as the standard buyer in its service territory, except that the 
commission may designate another entity to serve as the standard buyer if the 
commission determines that the designation is in the best interest of customers in the 
service territory. The commission shall oversee the activities of the standard buyer to 
ensure compliance with this chapter. 
2. Obligations of standard buyer. A standard buyer shall: 
A. Serve as counterparty to long-term contracts with project sponsors pursuant to 
section 3486; 
B. If the standard buyer is not an investor-owned transmission and distribution 
utility, reimburse an investor-owned transmission and distribution utility for any bill 
credit or payment to a subscriber or project sponsor pursuant to section 3486; 
C. 
Establish reasonable measurement and verification requirements for distributed 
generation resources; 
D. Provide information needed to allocate costs and benefits pursuant to subsection 
3;and 
E. Provide aggregate data regarding the output of distributed generation resources 
pursuant to sections 3485 and 3486. 
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 eligible costs and benefits under this subsection incurred by 
procuring distributed generation resources pursuant to this chapter. These eligible costs 
and benefits must be reviewed by the commission annually and allocated to and 
recovered from customers of the investor-owned transmission and distribution utility in 
whose territory the distributed generation resource is located through a process 
established by rule of the commission. The process established by the commission must 
be similar to the allocation of costs and benefits of long-term energy contracts in section 
3210-F. Eligible costs and benefits include: 
A. Incremental costs of serving as the standard buyer; 
B. All payments or bill credits to customers, subscribers and project sponsors under 
each procurement pursuant to sections 3485 and 3486; and 
C. All revenue from sale of the output of distributed generation resources procured 
pursuant to this chapter. 
4. Entities other than the standard buyer. The commission shall ensure that the 
rules and procedures established under this chapter provide opportunities for entities 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" f-\ "to S.P. 565, L.D. 1711 
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other than the standard buyer to aggregate and sell the output of distributed generation 
resources in the applicable markets. 
§3484. Procurement methods 
1. Initial competitive procurement. The following standards and methods apply to 
the initial competitive procurement of distributed generation resources associated with 
commercial or institutional customer accounts under section 3485 and of shared 
distributed generation resources under section 3486: 
A. On or before January 1, 2020, the commission shall adopt rules for each initial 
competitive solicitation of the first block of distributed generation resources under 
sections 3485 and 3486. The rules must include the form of contract provided under 
subsection 7; 
B. The commission shall accept bids for 30 calendar days beginning on or before 
July 1, 2020 and review the bids based on the requirements under subsections 4, 5 
and 6. The commission may select qualified bids in excess of the first block if the 
commission determines that the incremental procurement is in the public interest. If 
the commission selects qualified bids in excess of the first block, the commission 
shall reduce the quantity procured in subsequent block procurements. 
If the 
commission selects bids totaling less than the first block in the initial competitive 
procurement, the quantity procured in subsequent block procurements must increase 
by the difference between the first block and the number of megawatts submitted in 
the initial competitive procurement. If pursuant to subsections 4 and 5 no bids are 
accepted, the commission shall: 
(1) Conduct a new initial competitive procurement under this subsection within 9 
months; and 
(2) Study the reasons for the inability of the procurement to secure the target 
amount and submit a report of its findings and any recommended legislation to 
the joint standing committee of the Legislature having jurisdiction over energy 
matters; 
C. The commission shall issue a public notice of the initial competitive procurement 
results no later than 30 calendar days after the bid acceptance period has ended. The 
public notice must include the name, sponsor, size and location of each selected 
project and the awarded contract price; and 
D. The applicable standard buyer shall enter into a contract with the selected project 
or projects for a term of 20 years at a specified contract rate equal to the clearing 
price to be paid as a bill credit to the commercial or institutional customer or the 
subscribers of a shared distributed generation resource, as applicable. 
2. 
Subsequent block contract rate procurements. 
Subsequent to the initial 
competitive procurement under subsection 1, the remaining procurement under sections 
3485 and 3486 must proceed pursuant to the following: 
A. 
The commission shall procure 4 additional blocks of contracted distributed 
generation resources to meet the overall procurement goal specified in section 3485 
for commercial or institutional distributed generation resources and in section 3486 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to S.P. 565, L.D. 1711 ( ':, ·(jc\~) 
for shared distributed generation resources. Each procurement block size equals 1/4 
of the difference between the overall procurement goal and the quantity procured 
under subsection 1. 
These blocks are numbered sequentially, starting with 2. 
Subsequent procurements are assigned to a particular block, starting with 
procurement block 2 and finishing with procurement block 5; 
B. The block contract rate for procurement block 2 must equal 97% of the clearing 
price determined in subsection 1. Each successive procurement block must have a 
block contract rate equal to 97% of the preceding block; 
C. 
Block 2 must be opened immediately following the initial competitive 
procurement for bids qualifying under subsection 4; 
D. The applicable standard buyer shall enter into a contract with each qualified 
project for a term of 20 years at a specified contract rate equal to the block contract 
rate of the procurement block then open and paid as a bill credit to the commercial or 
institutional customer or the subscribers of a shared distributed generation resource, 
as applicable; 
E. Each contract awarded pursuant to this subsection reduces the available capacity 
in the current procurement block. If an awarded contract exceeds the remaining 
capacity of its procurement block, then that block is closed and the next block opened 
and the contract rate is set at the block contract rate for the block filled by this award 
and any overprocurement in one block is subtracted from the quantity available in the 
next block. If a contract award exceeds the capacity of procurement block 5, the 
entire quantity of the offer is awarded at the block contract rate for procurement 
block 5 and no further contracts may be awarded except under subsection 7; and 
F. 
The commission may by rule establish incentives in the procurement of 
distributed generation resources including, but not limited to, incentives to support 
resources that pair with energy storage systems, development of dual-use projects, 
siting of resources that provide locational benefits to the distribution system and other 
siting criteria developed in consultation with the Department of Environmental 
Protection and the Department of Agriculture, Conservation and Forestry. 
3. Failure to complete timely procurement. If any procurement block remains 
unfilled for more than 12 months from the time the previous block was filled: 
A. 
The commission shall suspend procurements under subsection 2 pending 
completion of the process described in this subsection; 
B. The commission shall review and may amend the rules adopted under subsection 
1, paragraph A or the standard contract under subsection 7 for a new competitive 
procurement of long-term contracts for the output of at least the first block of 
distributed generation resources as part of the procurement goal in section 3485, 
subsection 1 or section 3486, subsection 1. 
The commission shall publish any 
amendments and a new bid acceptance period for not less than 6 months and not 
more than 9 months; 
C. The commission shall accept bids for 30 calendar days from the date established 
in paragraph B and review the bids based on the requirements set forth in subsections 
4, 5 and 6 and the adopted rules. The commission may select qualified bids in excess 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT"/, "to S.P. 565, L.D. 1711 
. ,/-1 ', 
of the first block if the commission determines that the incremental procurement is in 
the public interest and the incremental procurement reduces the quantity procured in 
subsequent procurements; 
D. The commission shall issue a public notice of the procurement results no later 
than 30 calendar days after the bid acceptance period under paragraph Chas ended. 
The public notice must include the name. sponsor. size and location of each selected 
project and the awarded contract price; 
E. 
The applicable standard buyer shall enter into a contract with the project or 
projects selected under paragraph C for a term of 20 years at a specified contract rate 
equal to the highest selected off er rate as adjusted under subsection 6 to be paid as a 
bill credit to the commercial or institutional customer or the subscribers of a shared 
distributed generation resource. as applicable; 
F. The commission shall reopen procurements under subsection 2 unless no contracts 
are awarded under paragraph E. The quantity procured under paragraph C must be 
subtracted from the current procurement block and the block contract rate for that 
procurement block must be set at the clearing price set under paragraph E. The block 
contract rate for each subsequent procurement block must be set at 97% of the newly 
established rate for the preceding procurement block; and 
G. Ifno contracts are awarded under paragraph E. the commission shall: 
(1) Conduct another competitive solicitation under this subsection with the bid 
acceptance period to open approximately 12 months after the bid acceptance 
period determined in paragraph B; and 
(2) Examine the reasons for the inability of the procurement to secure the target 
amount and submit a report of its findings and any recommended legislation to 
the joint standing committee of the legislature having jurisdiction over energy 
matters. 
4. 
Bid or offer qualification. 
The commission shall establish minimum 
requirements for bids or offers in a solicitation under this section. including: 
A. Demonstration of site control; 
B. 
A fully executed interconnection service agreement with an investor-owned 
transmission and distribution utility; 
C. 
Demonstration that all required federal. state and local approvals and 
nonministerial permits for the project have been obtained. For the purposes of this 
paragraph, "nonministerial permit" means a permit for which one or more officials 
consider various factors and exercise discretion in deciding whether to issue or deny 
the permit; 
D. 
The capacity to make a financial assurance deposit at the time a contract is 
signed; and 
E. The following requirements based on the procurement type: 
(1) 
For a commercial or institutional distributed generation resources 
procurement. if a participating commercial or institutional customer is not the 
Page IO - 129LR1803(02)-l 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" H "to S.P. 565, L.D. 1711 l c"' J._c\ ,;) 
party making the bid, an agreement from a customer that would receive bill 
credits under section 3485, subsection 2; and 
(2) For a shared distributed generation resources procurement, demonstration of 
experiencing fulfilling the obligation to subscribers of shared distributed 
generation resources. 
The commission may by rule require a bidder to pay a reasonable bidding fee to defray 
administrative costs. 
5. Ensuring competition. Prior to each solicitation under subsections 1 to 3, the 
commission shall establish standards to ensure that the solicitation has a sufficient 
number of unique bidders and quantity of qualified bids to be determined competitive. If 
the commission concludes that a solicitation is not competitive, the commission may 
reduce the target procurement quantities to produce the greatest quantity that may be 
procured consistent with this subsection and shall defer to subsequent solicit.ations the 
capacity reduced in the solicitation. 
6. Bid selection. Following a review of bids received in the solicitations under 
subsections 1 to 3, and after any adjustment to the target quantity under subsection 5, the 
commission shall select one or more winning bids that, in the aggregate, meet the target 
procurement quantity. If there are multiple qualified bids at the same offer rate, the 
commission shall give preference to the qualified bid or bids that minimize the cost to the 
standard buyers or, ifthere is no difference in cost, to the bid that was submitted first. 
In evaluating bids in a competitive solicitation, the commission shall evaluate a qualified 
bid for a project that is located on previously developed or impacted land at 90% of the 
offered rate. For the purposes of this subsection, "previously developed or impacted 
land" means areas covered by impervious surfaces, capped landfills or brownfield sites as 
defined by the Department of Environmental Protection. If a bid under this subsection is 
accepted, the contract rate for each accepted bid for a project located on previously 
developed or impacted land must be paid a rate equal to the clearing price. 
7. Standard contract and milestones. Prior to a solicitation, the commission shall 
provide, in consultation with the standard buyer or standard buyers, a standard contract 
that commits the standard buyer and a project sponsor to commercially reasonable 
behavior and includes provisions including an interconnection fee list and interconnection 
schedule to ensure that the project proceeds to commercial operation on a reasonable 
timeline. The standard contracts for all standard buyers must be substantially identical to 
the extent commercially reasonable. 
A qualified project must be commercially operable within 18 months of being awarded a 
contract. The commission may grant an extension for good cause. If a project fails to 
meet a milestone, the project sponsor is in default and the sponsor's contract must be 
cancelled. 
The capacity associated with a cancelled project must be added to the 
currently open procurement block. 
If procurement block 5 has been filled and 
procurements closed, the defaulted quantity must be added to procurement block 5 and 
new offers must be accepted under subsection 2. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" j\ "to S.P. 565, L.D. 1711 ( (~ ,) 1'::> .) 
§3485. Commercial or institutional distributed generation resources procurement 
1. Procurement amounts. By July 1, 2024, the commission shall procure 125 
megawatts of the output of distributed generation resources associated with commercial 
or institutional customer accounts by conducting an initial competitive solicitation for the 
first block of 25 megawatts pursuant to section 3484 to establish market-based, declining 
block contract rates to procure the remaining 100 megawatts. 
2. 
Determination of bill credit. 
The bill credit allocated to a commercial or 
institutional customer must be based on the total kilowatt-hours of energy production of 
the distributed generation resource for the previous month. For each billing month, the 
value of the credit must be calculated by multiplying the number of kilowatt-hours by the 
contract rate. A payment to a commercial or institutional customer must be credited 
against the customer's monthly electricity bill in accordance with section 3487. The 
monthly energy production must be determined by a revenue-grade meter installed and 
paid for by the participating commercial or institutional customer. 
3. Exemption. A commercial or institutional customer is not considered a public 
utility or competitive electricity provider solely as a result of entering into a contract with 
a standard buyer under this section. 
§3486. Shared distributed generation resources procurement 
1. Procurement amounts. By July 1, 2024, the commission shall procure 250 
megawatts of the output of shared distributed generation resources by conducting an 
initial competitive solicitation for the first block of 50 megawatts pursuant to section 
3484 to establish market-based, declining block contract rates to procure the remaining 
megawatts. 
2. Payment and minimum subscription. The project sponsor and subscribers of a 
distributed generation resource that receives a contract under this section must receive the 
contract rate for the output of a shared distributed generation resource that is fully 
subscribed. 
For any portion not subscribed, the project sponsor must receive the 
wholesale rate obtained by the standard buyer for resale of the shared distributed 
generation resource output. Requirements for minimum subscriptions include: 
A. At least 50% of the total nameplate capacity of a shared distributed generation 
resource must be subscribed by subscriptions of 25 kilowatts or less or at least 20% 
of the total nameplate capacity must be subscribed by subscriptions of 25 kilowatts or 
less if subscriptions from a municipality or units of municipal government account 
for more than 30% of the total nameplate capacity, unless subscriptions from a 
municipality or units of municipal government account for more than 50% of the total 
nameplate capacity of a shared distributed generation resource; and 
B. At least: 
8 
( 1) Ten percent of the total nameplate capacity of a shared distributed generation 
resource must be subscribed by households with low or moderate income or by 
organizations serving households with low or moderate income if the 
subscriptions serve to directly reduce the electricity costs for households with 
low or moderate income; or 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "f-) "to S.P. 565, L.D. 1711 ( <:) .· ,) c\ 
) 
(2) If a municipality or unit of municipal government accounts for more than 
50% of the subscriptions to a shared distributed generation resource, 5% of the 
total nameplate capacity of the shared distributed generation resource must be 
subscribed by households with low or moderate income or by organizations 
serving households with low or moderate income if the subscriptions serve to 
directly reduce the electricity costs for households with low or moderate income. 
Subscriptions from municipalities or units of municipal government may not account for 
more than 70% of the nameplate capacity of a shared distributed generation resource. For 
the purposes of this subsection, "household with low or moderate income" means a 
household that provides proof of participation in a utility. municipal, state or federal 
income-based assistance program or a household that provides proof of household 
income up to 80% of the median income for the county or metropolitan area where the 
household is located. 
3. 
Determination of subscriber bill credit. The bill credit allocated to each 
subscriber from a shared distributed generation resource must be based on the subscriber's 
percentage interest of the total production of the shared distributed generation resource 
for the previous month. For each billing month, the value of the credit allocated to a 
subscriber must be calculated by multiplying the number of kilowatt-hours constituting 
the subscriber's share by the contract rate. On a monthly basis. the project sponsor shall 
provide to the investor-owned transmission and distribution utility in a standardized and 
electronic format a list of subscribers and subscriber information required to calculate the 
bill credit to be provided to each subscriber. A credit to a subscriber must be applied 
against the subscriber's monthly electricity bill in accordance with section 3487 no later 
than one billing month following the month during which the energy was generated by 
the shared distributed generation resource. 
The investor-owned transmission and 
distribution utility shall provide a monthly record to the project sponsor of the credit 
applied to a subscriber within a month after the credits are applied to the subscriber's bill. 
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. 
4. Exemption. A project sponsor or subscriber is not considered a public utility or 
competitive electricity provider solely as a result of the project sponsor's or subscriber's 
interest or participation in a shared distributed generation resource. 
5. Renewable energy credits. Prior to a project sponsor's entering into a contract 
with a subscriber under this section. the commission shall provide to the sponsor a 
·standard disclosure to be distributed by the sponsor to all participating subscribers that 
describes the effect of selling the renewable attributes of exported electricity to the 
7 
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 subscriber 
with a share of less than 25 kilowatts to purchase renewable energy credits up to the 
amount of and of a substantially equivalent type to that which the subscriber has sold to 
the standard buyer at a price equal to 80% of market value. 
6. 
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 under chapter 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" /1 "to S.P. 565, L.D. 1711 {'·; 
. '· 
:; 
upon a project sponsor and may order restitution for any party injured by a violation 
for which a penalty may be assessed pursuant to chapter 15. 
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, and the court may issue any 
preliminary or final order that the court determines proper. 
7. Disclosures. Prior to the sale or resale of a subscription in a shared distributed 
generation resource or proposed shared distributed generation resource, a project sponsor 
selling or reselling the subscription shall provide a disclosure to potential subscribers that 
includes the following: 
A. A good faith estimate of the annual kilowatt-hours to be delivered by the shared 
distributed generation resource based on the size of the subscriber's interest: 
B. A plain language explanation of the terms under which the bill credit under 
section 3487 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 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 the information under this subsection and 
other information as the commission determines necessary to protect the interests of 
potential subscribers. 
8. Transfer of subscriptions. A subscriber may transfer or assign a subscription to 
the associated project sponsor or to any person or entity that qualifies to be a subscriber in 
the shared distributed generation resource. A project sponsor must provide a process for 
assignment or transfer of a subscription. A project sponsor may not impose transfer fees 
on a subscriber that moves to a different location within the same utility service territory. 
9. 
Project sponsor report. 
One year after commercial operation of a shared 
distributed generation resource commences, the project sponsor must submit to the 
commission a report detailing compliance with this subsection and subsections 3, 5, 7 and 
~ 
§3487. Bill credits; utility costs paid by project sponsor 
1. Credit assigned to a customer's bill. If the value of a credit to be applied to a 
customer's bill under this chapter 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 credit. If the value of the 
credit to be applied to a customer's bill under this chapter is greater than the amount owed 
8 
by the customer at the end of the billing period, the remaining value of the credit must 
carry over from month to month. 
2. Utility costs paid by project sponsor. If a project sponsor pays an investor-
owned transmission and distribution utility's costs associated with billing and collection 
from a subscriber, at the request of the project sponsor the utility shall bill the subscriber 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" f\ "to S.P. 565, L.D. 1711 ( S ;f\ "S ~ 
on behalf of the project sponsor. Costs under this subsection are subject to review by the 
commission. 
§3488. Rules 
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 2-A. 
Sec. B-2. 
Rulemaking timeline. 
By January 1, 2020, the Public Utilities 
Commission shall adopt rules in accordance with the Maine Revised Statutes, Title 35-A, 
section 3488 to implement the provisions of Title 35-A, sections 3484, 3485 and 3486. 
Sec. B-3. Appropriations and allocations. The following appropriations and 
allocations are made. 
PUBLIC UTILITIES COMMISSION 
Public Utilities -Administrative Division 0184 
Initiative: Provides allocation for one Staff Attorney position and 2 Utility Analyst 
positions and associated All Other costs. 
OTHER SPECIAL REVENUE FUNDS 
POSITIONS - LEGISLATIVE COUNT 
Personal Services 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
Public Utilities -Administrative Division 0184 
Initiative: Provides funding for consulting services. 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
PUBLIC UTILITIES COMMISSION 
DEPARTMENT TOTALS 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT TOTAL-ALL FUNDS 
2019-20 
3.000 
$309,168 
$25,815 
$334,983 . 
2019-20 
$400,000 
$400,000 
2019-20 
$734,983 
$734,983 
2020-21 
3.000 
$428,719 
$22,939 
$451,658 
2020-21 
$400,000 
$400,000 
2020-21 
$851,658 
$851,658 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT"{) "to S.P. 565, L.D. 1711 (:, · ,}-1 \ '') 
SUMMARY 
This amendment replaces the bill. The amendment: 
1. Changes the net energy billing law to: 
a. 
Allow a customer to participate if the customer has a financial interest in a 
distributed generation resource, which is defined as a generator with a capacity of 
less than 5 megawatts that uses a renewable resource and is located in the service 
territory of a transmission and distribution utility in this State; 
b. 
Permit any number of customers of an investor-owned transmission and 
distribution utility to share the financial interest, except in the northern Maine grid, 
where the limit is 10, unless the Public Utilities Commission finds the utility system 
can accommodate a higher number; and 
c. Add a new commercial and institutional net energy billing program that provides 
for a tariff rate for the energy exported by the distributed generation resource that is 
based on the applicable standard offer rate for the customer plus a percentage of the 
transmission and distribution utility rate for a specific class of customers; 
2. Requires the Public Utilities Commission to report on metering and billing issues 
to the joint standing committee on utilities and energy and to evaluate net energy billing 
when certain events occur; and 
3. Creates a requirement for the procurement of distributed generation resources by 
each investor-owned electric utility, or by a separate buyer, if one is designated by the 
commission. The amendment: 
a. Directs procurements of 125 megawatts of output associated with commercial and 
institutional accounts and 250 megawatts of shared distributed generation resources 
to be achieved by July 1, 2024; 
b. Directs that procurements must be through a competitive bidding process with 
solicitations for certain blocks of output and contract rates, after the first block, set in 
declining relation to the previous block; 
c. Provides procedures to address cases of under-procurement for any block; 
d. 
Requires subscriptions to certain portions of shared distributed generation 
resources to satisfy certain minimum requirements related to the types and sizes of 
subscribers or subscriptions; and 
e. Provides for consumer protections and transparency requirements. 
4. Adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 06/11/19 feac.. 
LD 1711 
LR 1803(02) 
An Act To Promote Solar Energy Projects and Distributed Generation Resources in Maine 
Fiscal Note for Bill as Amended by Committee Amendment "H' l ~ cl <1 "S) 
Committee: Energy, Utilities and Technology 
Appropriations/Allocations 
Other Special Revenue Funds 
Revenue 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY2019-20 
FY2020-21 
$734,983 
$851,658 
$734,983 
$851,658 
Projections 
FY2021-22 
$863,576 
$863,576 
Projections 
FY 2022-23 
$875,825 
$875,826 
This bill makes changes to the laws regarding net energy billing, adds additional reporting requirements for the 
Public Utilities Commission (PUC) and creates requirements for the procurement of distributed generation resources. 
The PUC has indicated that the changes to net energy billing rules and distributed generation requirements of the bill 
will require additional staff and resources to complete. This bill includes Other Special Revenue Funds allocations 
of $334,983 in fiscal year 2019-20 and $451,658 in fiscal year 2020-21 for two Utility Analyst positions, one Staff 
Attorney position and associated position costs. The bill also includes ongoing allocations of $400,000 beginning in 
fiscal year 2019-20 for contracted consulting services. 
The PUC is funded by an assessment set to produce sufficient revenue for the expenditures allocated by the 
Legislature for operating the PUC. The increased allocations in this bill require a corresponding increase in revenue 
from the assessment on transmission and distribution utilities. These costs may eventually be passed on to customers 
through scheduled rate cases. 
LR1803(02) - Fiscal Note - Page 1 of 1