An Act to Reduce Electricity Costs for Maine's Consumers and Businesses by Amending the Laws Governing Renewable Resources
Maine Legislature, Session 131, LD 1888
Committee: Energy, Utilities and Technology
Sponsors: GROHOSKI, WARREN, KESSLER
Amends: 35-A MRSA §3210

Legislative Document
No. 1888
S.P. 763
In Senate, May 4, 2023
An Act to Reduce Electricity Costs for Maine's Consumers and 
Businesses by Amending the Laws Governing Renewable Resources
(EMERGENCY)
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator GROHOSKI of Hancock.
Cosponsored by Representative WARREN of Scarborough and
Representative: KESSLER of South Portland.
Emergency preamble.  Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, this legislation needs to take effect before the expiration of the 90-day 
period in order to achieve savings for electricity ratepayers, who are experiencing extreme 
rate increases, as soon as possible; and
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  35-A MRSA §3210, sub-§2, ¶A-1, as amended by PL 2019, c. 477, §1, is 
further amended to read:
A-1.  "Alternative compliance payment rate" means a certain dollar amount per 
kilowatt-hour set by the commission that a competitive electricity provider may pay to 
the commission to satisfy the portfolio requirements of subsections 3, 3‑A, 3‑B and 
3‑C.
Sec. 2.  35-A MRSA §3210, sub-§9, as amended by PL 2021, c. 199, §1, is further 
amended to read:
9.  Alternative compliance payment.  The commission shall allow competitive 
electricity providers to satisfy the portfolio requirements for Class I resources under 
subsection 3‑A, Class IA resources under subsection 3‑B and, thermal renewable energy 
credits under subsection 3‑C and Class II resources under subsection 3 through an 
alternative compliance payment mechanism in accordance with this subsection.
A.  The commission shall set the alternative compliance payment rate rates by rule, 
which may not be greater than $50 for the requirements under subsections 3-A, 3-B 
and 3-C and not greater than $5 for the requirement under subsection 3, and shall 
publish the alternative compliance payment rate rates by January 31st November 1st 
of each the preceding year. In setting the rate rates, the commission shall take into 
account prevailing market prices, historical prices, standard-offer service prices for 
electricity, reliance on alternative compliance payments to meet the requirements of 
subsections 3, 3‑A, 3‑B and 3‑C and investment in Class I and Class IA resources and 
thermal renewable energy credits in the State during the previous calendar year, 
including investments that may affect the availability or price of Class II resources. In 
setting the alternative compliance payment rate for Class II resources, the commission 
shall balance the costs to ratepayers in the State with the interest of Class II resource 
investors in receiving a reasonable return on their investment.
B.  The commission shall collect alternative compliance payments to meet the 
requirements of subsections 3, 3‑A and 3‑B made by competitive electricity providers 
and shall deposit all funds collected under this paragraph in the Energy Efficiency and 
Renewable Resource Fund established under section 10121, subsection 2 to be used to 
fund research, development and demonstration projects relating to renewable energy 
technologies and to fund rebates for cost-effective renewable energy technologies.
C.  The commission shall collect alternative compliance payments to meet the 
requirements of subsection 3‑C made by competitive electricity providers and shall 
deposit all funds collected under this paragraph in the Thermal Energy Investment 
Fund established under section 10128, subsection 2 to be used to fund incentives and 
low-interest or no-interest loans to businesses, municipalities, educational institutions 
and nonprofit entities in the State for the installation of new thermal energy-derived 
projects.
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.
Sec. 3.  35-A MRSA §3210, sub-§11, as enacted by PL 2019, c. 477, §1, is amended 
to read:
11.  Report; Class IA resource and thermal renewable energy credit portfolio 
requirements.  By March 31 February 1, 2024 and every 5 years thereafter, the 
commission Governor's Energy Office shall submit a report to the joint standing committee 
of the Legislature having jurisdiction over energy matters based on a review, conducted in 
consultation with the Governor's Energy Office commission, of the status and impacts of 
the implementation of the portfolio requirements for Class IA renewable resources under 
subsection subsections 3, 3-A and 3‑B and thermal renewable energy credits under 
subsection 3‑C.  The review must be completed through a public process and must include 
consideration of impacts of these renewable portfolio requirements on energy prices and 
assessment of benefits, including but not limited to on greenhouse gas emissions and the 
economy of the State.  The report required under this subsection may be submitted in 
conjunction with the report required under subsection 3‑A, paragraph C.  After reviewing 
the report required under this subsection, the committee may report out legislation 
regarding renewable portfolio requirements.
Sec. 4. Rulemaking. Notwithstanding the Maine Revised Statutes, Title 35-A, 
section 3210, subsection 9, paragraph A, the Public Utilities Commission shall initiate 
rulemaking to set the alternative compliance payment rate for Class II resources no later 
than August 1, 2023 and the initial rate takes effect upon completion of rulemaking.
Emergency clause.  In view of the emergency cited in the preamble, this legislation 
takes effect when approved.
SUMMARY
This bill requires the Public Utilities Commission to establish an alternative 
compliance payment rate by rule for competitive electricity providers to satisfy the 
portfolio requirements for Class II resources and establishes a maximum rate for that 
alternative compliance option of $5. In establishing the alternative compliance payment 
rate, the bill adds that the commission must balance the interests of resource investors with 
the interests of ratepayers. In establishing the alternative compliance rates for Class I, Class 
IA, Class II and thermal renewable energy credits, the commission must consider historical 
prices in addition to other factors.
It also requires the Governor's Energy Office, in consultation with the Public Utilities 
Commission, to review the impacts of the State's renewable resource portfolio requirements 
and submit a report to the joint standing committee of the Legislature having jurisdiction 
over energy matters by February 1, 2024 and every 5 years thereafter.