An Act To Expand Maine's Clean Energy Economy
Maine Legislature, Session 130, LD 1350
Committee: Energy, Utilities and Technology
Sponsors: VITELLI, GROHOSKI, JACKSON, LAWRENCE, STEWART, McCREIGHT, TEPLER, TUCKER
Amends: 35-A MRSA §3210-G

Legislative Document
No. 1350
S.P. 432
In Senate, April 7, 2021
An Act To Expand Maine's Clean Energy Economy
Received by the Secretary of the Senate on April 5, 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 VITELLI of Sagadahoc.
Cosponsored by Representative GROHOSKI of Ellsworth and
Senators: President JACKSON of Aroostook, LAWRENCE of York, STEWART of 
Aroostook, Representatives: McCREIGHT of Harpswell, TEPLER of Topsham, TUCKER of 
Brunswick.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  35-A MRSA §3210-G, sub-§1, as enacted by PL 2019, c. 477, §2, is 
amended to read:
1.  Competitive procurement.  The commission shall conduct 2 competitive 
solicitations pursuant to paragraph A and 2 competitive solicitations pursuant to paragraph 
B-1 in order to select Class IA resources for contracts under this section.
A.  Through the competitive solicitations under this section described in subparagraphs 
(1) and (2), the commission shall procure an amount of energy or renewable energy 
credits from Class IA resources that is equal to 14% of retail electricity sales in this 
State for the period from January 1, 2018 to December 31, 2018, as determined by the 
commission.
(1)  The commission shall initiate a first competitive solicitation under this 
paragraph and ensure that solicitation results in the approval of contracts by 
December 31, 2020 for energy or renewable energy credits equal to at least 7% of 
retail electricity sales for the period from January 1, 2018 to December 31, 2018, 
as determined by the commission. If the commission determines that contracts for 
an amount greater than 7% of retail electricity sales will provide financial benefits 
to ratepayers, it may approve contracts by December 31, 2020 for up to 10% of 
retail electricity sales.
(2)  No later than January 15, 2021, the commission shall initiate a 2nd competitive 
solicitation under this paragraph for an amount of energy or renewable energy 
credits equal to the difference between 14% of retail electricity sales and the 
amount approved in contracts by December 31, 2020.
B.  To the extent sufficient resources are available, with respect to the competitive 
solicitations described in paragraph A, subparagraphs (1) and (2), 75% of the energy 
or renewable energy credits contracted under this section pursuant to those competitive 
solicitations must come from Class IA resources that begin commercial operations after 
June 30, 2019 and 25% must come from Class IA resources that began commercial 
operations on or prior to June 30, 2019.
B-1.  Through the competitive solicitations described in subparagraphs (1) and (2), the 
commission shall procure an amount of energy or renewable energy credits from Class 
IA resources that is equal to 15% of retail electricity sales in this State for the period 
from January 1, 2019 to December 31, 2019, as determined by the commission.
(1)  The commission shall initiate a first competitive solicitation under this 
paragraph and ensure that solicitation results in the approval of contracts by 
December 31, 2021 for energy or renewable energy credits equal to at least 10% 
of retail electricity sales for the period from January 1, 2019 to December 31, 2019, 
as determined by the commission. If the commission determines that contracts for 
an amount greater than 10% of retail electricity sales will provide financial benefits 
to ratepayers, it may approve contracts by December 31, 2021 for up to 15% of 
retail electricity sales.
(2)  No later than January 15, 2022, the commission may initiate a 2nd competitive 
solicitation under this paragraph for an amount of energy or renewable energy 
credits equal to the difference between 15% of retail electricity sales and the 
amount approved in contracts by December 31, 2021.
B-2.  To the extent sufficient resources are available, with respect to the competitive 
solicitations described in paragraph B-1, subparagraphs (1) and (2), 100% of the energy 
or renewable energy credits contracted under this section pursuant to those competitive 
solicitations must come from Class IA resources that begin commercial operations after 
June 30, 2021.
B-3.  In conducting a solicitation and selecting Class IA resources for contracts under 
this section, the commission shall give special consideration to selection of projects in 
economically depressed areas of the State as determined by the commission.
B-4.  In conducting a solicitation and selecting Class IA resources for contracts under 
this section, the commission shall give consideration to evidence of project viability, 
including, but not limited to, the submission of a preapplication with the relevant siting 
authority or the submission of an interconnection request with the New England 
independent system operator.
C.  In conducting a solicitation and selecting Class IA resources for contracts under 
this section, the commission shall weigh the benefits to ratepayers and the benefits to 
the State's economy as follows:
(1)  A weight of 70% must be given to the benefits to ratepayers; and
(2)  A weight of 30% must be given to benefits to the economy, which may include, 
but are not limited to:
(a)  Capital investments by the Class IA resource to improve long-term 
viability of an existing facility;
(b)  Payments by the Class IA resource for the harvest of wood fuel;
(c)  Employment resulting from the Class IA resource;
(d)  Payments by the Class IA resource to a host community, whether or not 
required by law or rule;
(e)  Excise, income, property and sales taxes paid by the Class IA resource;
(f)  Purchases of goods and services by the Class IA resource; and
(g)  Avoided emissions resulting from the operation of the Class IA resource.
D.  The commission shall, in accordance with this paragraph, allow energy storage 
systems to participate in solicitations or be awarded contracts under this section.
(1)  The commission shall permit an energy storage system to bid on solicitations 
or to be contracted under this section only if the energy storage system is connected 
to the State's electricity grid, paired as a complementary resource with a Class IA 
resource and either:
(a)  Colocated with the Class IA resource, whether metered jointly with or 
separately from the Class IA resource; or
(b)  Located at a different location from the Class IA resource and the 
commission finds that inclusion of the energy storage system would result in a 
reduction in greenhouse gas emissions.
(2)  A bid under this section that includes an energy storage system must include 2 
separate bid proposals, one with the energy storage system and one without.   The 
commission shall assess the bid proposals based on the benefits to ratepayers, 
which may include, but are not limited to:
(a)  Reduction in costs;
(b)  Decrease in peak electricity demand;
(c)  Deferral of investments in the transmission and distribution system;
(d)  Deferral of capital investments in new generating capacity;
(e)  Increase in the electricity grid's overall flexibility, reliability and resiliency; 
and
(f)  Reduction in greenhouse gas emissions.
(3)  An energy storage system that is not colocated with a Class IA resource may 
receive renewable energy credits only for stored energy generated from a Class IA 
resource.
(4)  If chosen for a contract under this section, an energy storage system must 
remain stationary and under the same ownership throughout the contract term.
(5)  The commission may permit an energy storage system to be paired with and 
added to a Class IA resource after that resource has been awarded a contract.
For the purposes of this paragraph, "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.
Sec. 2.  35-A MRSA §3210-G, sub-§4 is enacted to read:
4.  Rules.  The commission may adopt rules necessary for the implementation of this 
section.  Rules adopted by the commission may include, but are not limited to, provisions 
stipulating the financial security mechanisms that will be required as a condition of the 
selection of Class IA resources for contracts under this section.  Rules adopted pursuant to 
this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 
2-A.
SUMMARY
This bill amends the State's renewable portfolio standard procurement law to authorize 
additional competitive solicitations by the Public Utilities Commission for contracts with 
Class IA resources to procure, in total, an amount of energy or renewable energy credits 
equal to 15% of retail electricity sales in the State during calendar year 2019.  It requires 
100% of the energy or renewable energy credits contracted following those additional 
competitive solicitations to come from Class IA resources that begin commercial 
operations after June 30, 2021.
The bill also amends the renewable portfolio standard procurement law to require the 
Public Utilities Commission, in conducting the solicitation and selection of Class IA 
resources for contracts, to give special consideration to selection of projects in 
economically depressed areas of the State and to give consideration to evidence of project 
viability.  It also authorizes the Public Utilities Commission to adopt routine technical rules 
necessary to implement the requirements of the renewable portfolio standard procurement 
law, which may include provisions stipulating the financial security mechanisms that will 
be required as a condition of the selection of Class IA resources for contracts under that 
law.