An Act Requiring the Public Utilities Commission to Adopt Rules Promoting Renewable Energy
Maine Legislature, Session 131, LD 1431
Committee: Energy, Utilities and Technology
Sponsors: WARREN
Amends: 35-A MRSA §2112, 35-A MRSA §3110, 35-A MRSA §3196, 35-A MRSA §3210

Legislative Document
No. 1431
H.P. 927
House of Representatives, March 30, 2023
An Act Requiring the Public Utilities Commission to Adopt Rules 
Promoting Renewable Energy
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative WARREN of Scarborough.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  35-A MRSA §2112 is enacted to read:
§2112.  Energy transformation projects
1. Definition. As used in this section, unless the context otherwise indicates, "energy 
transformation project" means an undertaking that provides energy-related goods or 
services but does not include the generation of electricity and that results in a net reduction 
in fossil fuel consumption by the customers of a retail electricity provider and in the 
emission of greenhouse gases attributable to that consumption. 
2. Energy transformation projects.  The commission shall adopt rules to incentivize 
participation by competitive electricity providers and others in energy transformation 
projects, including projects that support:
A. Home weatherization or other thermal energy efficiency measures; 
B. Air source or geothermal heat pumps; 
C. High-efficiency heating systems; 
D. Increased use of biofuels; 
E. Biomass heating systems; 
F. Transportation demand management strategies; 
G. Electric vehicles or related infrastructure; or
H. Infrastructure for the storage of renewable energy on the electric grid.
Sec. 2.  35-A MRSA §3110 is enacted to read:
§3110.  Social cost of carbon
1. Definition. As used in this section, unless the context otherwise indicates, "social 
cost of carbon" means an estimate, in dollars, of the economic damages that would result 
from emitting one additional ton of carbon dioxide into the atmosphere.
2. Commission rules or rate-making decisions. In adopting a rule regarding electric 
rates or a rate-making decision, the commission shall consider the social cost of carbon.
Sec. 3.  35-A MRSA §3196 is enacted to read:
§3196.  Commission authority to promote distributed energy resources
The commission shall promote the use of distributed energy resources. As used in this 
section, "distributed energy resources" means a nonemitting electric generation or 
renewable resource or program that reduces electric demand, manages the level or timing 
of electricity consumption or provides storage, electric energy, capacity or ancillary 
services to an electric utility and that is located on the distribution system, any subsystem 
of the distribution system or on the consumer's side of the meter.
Sec. 4.  35-A MRSA §3210, sub-§8, as amended by PL 2019, c. 477, §1, is further 
amended to read:
8.  Credit trading.  The commission shall allow competitive electricity providers to 
satisfy the portfolio requirements of subsections 3, 3‑A, 3‑B and 3‑C through the use of 
renewable energy credits if the commission determines that a reliable system of electrical 
attribute trading exists. The commission  shall adopt rules to implement a reliable system 
of electrical attribute trading. When renewable energy credits are used to satisfy the 
portfolio requirements of subsections 3 and 3‑A, the value of a renewable energy credit for 
electricity generated by a community-based renewable energy project, as defined in section 
3602, that is participating in the community-based renewable energy pilot program 
established in section 3603 and elects the renewable energy credit multiplier under section 
3605 is 150% of the amount of the electricity. A competitive electricity provider that does 
not satisfy the portfolio requirements as required in this section is subject to an 
administrative penalty in the amount of $100 per ton of carbon emitted annually from 
sources that do not satisfy the portfolio requirements.  Rules adopted pursuant to this 
subsection are routine technical rules as defined by Title 5, chapter 375, subchapter 2-A.
SUMMARY
This bill requires the Public Utilities Commission to adopt rules to incentivize 
participation by competitive electricity providers and others in energy transformation 
projects, to adopt rules implementing a reliable system of electrical attribute trading, to 
promote the use of distributed energy resources and to consider the social cost of carbon in 
ratemaking and adopting rules.