An Act To Promote Renewable Energy by Authorizing a Power-to-fuel Pilot Program
Maine Legislature, Session 130, LD 0009
Committee: Energy, Utilities and Technology
Sponsors: LAWRENCE
Amends: 35-A MRSA §3212-B

Legislative Document
No. 9
S.P. 16
In Senate, January 13, 2021
An Act To Promote Renewable Energy by Authorizing a Power-to-
fuel Pilot Program
Received by the Secretary of the Senate on January 11, 2021.  Referred to the Committee 
on Energy, Utilities and Technology pursuant to Joint Rule 308.2 and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator LAWRENCE of York.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  35-A MRSA §3212-B is enacted to read:
§3212-B.  Power-to-fuel pilot program
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings.
A.  "Power-to-fuel pilot program" means a pilot program established by the 
commission pursuant to this section.
B.  "Power-to-fuel project" means a facility that converts renewable energy to hydrogen 
gas, methane gas or other fuel.
C.  "Renewable energy" means electricity generated from renewable resources, 
including, but not limited to, wind, solar and tidal power.
D.  "Thermal renewable energy credit" has the same meaning as in section 3210, 
subsection 2, paragraph E.
2.  Power-to-fuel pilot program; criteria.  The commission shall establish a power-
to-fuel pilot program in accordance with this section.  Between January 1, 2022 and 
December 31, 2027, the commission shall approve up to 2 power-to-fuel projects under the 
program.  In implementing a power-to-fuel pilot program, the commission shall:
A.  Limit the production capacity of a power-to-fuel project to 10 megawatts;
B.  Prioritize power-to-fuel projects with lower greenhouse gas emissions; and
C.  Require that no thermal renewable energy credits may be bought or sold in relation 
to fuel produced by a power-to-fuel project.
3.  Exemptions for sales of electricity to a power-to-fuel project.  Sales of electricity 
to a power-to-fuel project under the power-to-fuel pilot program are exempt from:
A.  Distribution charges regulated by the commission, including but not limited to 
volumetric, demand and standby charges;
B.  Charges associated with the procurement of energy efficiency resources by 
transmission and distribution utilities ordered under section 10110, subsection 4-A; and
C.  Renewable portfolio standards requirements under section 3210, subsections 3-A, 
3-B and 3-C.
The exemptions provided under this subsection begin on the date of operation of a power-
to-fuel project and end 15 years after that date, except that the commission may approve 
continuation of the exemptions beyond 15 years on the basis of project need.
Sec. 2. Report. The Public Utilities Commission, by November 1, 2023, shall submit 
a report to the joint standing committee of the Legislature having jurisdiction over energy 
and utility matters regarding the progress made on establishing the power-to-fuel pilot 
program under the Maine Revised Statutes, Title 35-A, section 3212-B, including the 
number of power-to-fuel projects approved under the pilot program, a description of the 
participating project or projects and the amount of renewable energy converted into 
hydrogen gas, methane gas or other fuel by the participating project or projects.  The joint 
standing committee may report out a bill to the Second Regular Session of the 131st 
Legislature based on the report, which may include legislation to extend, repeal or make 
permanent the pilot program. 
SUMMARY
This bill requires the Public Utilities Commission to establish and oversee a power-to-
fuel pilot program.  The commission is required to approve up to 2 power-to-fuel projects 
between January 1, 2022 and December 31, 2027, each up to 10 megawatts in production 
capacity, that convert renewable energy to hydrogen gas, methane gas or other fuel. Under 
the pilot program, sales of renewable energy to a power-to-fuel project are exempt from 
distribution charges, charges associated with the procurement of energy efficiency 
resources and renewable portfolio standards requirements for a period of 15 years from the 
date of operation of the power-to-fuel project. The bill requires the commission to submit 
a report on the pilot program by November 1, 2023 to the joint standing committee of the 
Legislature having jurisdiction over energy and utility matters.