An Act to Establish a Clean Hydrogen Pilot Program
Maine Legislature, Session 131, LD 1775
Committee: Energy, Utilities and Technology
Sponsors: DOUDERA, LAWRENCE, BOYLE, GEIGER, RUNTE, WOODSOME, BRENNER, FARRIN, HARRINGTON
Amends: 35-A MRSA §123

Legislative Document
No. 1775
H.P. 1138
House of Representatives, April 25, 2023
An Act to Establish a Clean Hydrogen Pilot Program
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative DOUDERA of Camden.
Cosponsored by Senator LAWRENCE of York and
Representatives: BOYLE of Gorham, GEIGER of Rockland, RUNTE of York, WOODSOME 
of Waterboro, Senators: BRENNER of Cumberland, FARRIN of Somerset, HARRINGTON of 
York.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  35-A MRSA §123 is enacted to read:
§123.  Clean hydrogen pilot program
1. Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings.
A. "Clean hydrogen" means hydrogen produced through a process that results in a life-
cycle greenhouse gas emissions rate of not greater than 4 kilograms of carbon dioxide 
or carbon dioxide equivalents per kilogram of hydrogen generated, as determined by 
the commission in accordance with IRS production tax credit regulations.
B. "Clean hydrogen facility" means a facility that produces clean hydrogen, has a peak 
electricity demand that is no more than 20 megawatts and meets applicable 
requirements for a federal production tax credit under the federal act and IRS 
production tax credit regulations.
C. "Federal act" means the Inflation Reduction Act of 2022, Public Law 117-169, 136 
Stat. 1818.
D. "IRS production tax credit regulations" means regulations of the federal Internal 
Revenue Service adopted pursuant to the federal act governing clean hydrogen 
production tax credits.
E. "Pilot program" means the clean hydrogen program established pursuant to this 
section.
2. Clean hydrogen pilot program; criteria. The commission shall establish a clean 
hydrogen pilot program in accordance with this section. The commission shall choose 
through a competitive solicitation process 3 clean hydrogen facilities to participate in the 
pilot program.  The first competitive solicitation must occur in 2024 and open no later than 
January 15, 2024 and close no later than March 15, 2024 unless the commission determines 
that a longer period is required to achieve the purposes of the pilot program.  The 
commission shall conduct additional bid solicitations annually through 2029 until the 
commission selects 3 clean hydrogen facilities for participation in the pilot program.  Under 
the pilot program, the commission shall:
A. When selecting clean hydrogen facilities:
(1) Prioritize facilities with lower greenhouse gas emissions or facilities the 
commission finds will advance the viability of technology that reduces greenhouse 
gas emissions; 
(2) Choose facilities the commission finds are in the public interest and are 
reasonably likely not to cause significant costs for gas or electric ratepayers; and
(3) Require bidders to demonstrate that the owner or operator of the facility:
(a) Has control over the site where the facility is to be located; and
(b) Has technical and financial capacity to construct, operate and 
decommission the facility; 
B. Require the owner or operator of a clean hydrogen facility chosen for the pilot 
program to ensure that all persons engaged in the construction, alteration or repair of 
the facility, including all employees, contractors and subcontractors, are paid wages 
that are not less than the prevailing hourly wages for work of a similar character in the 
locality in which the facility is located as most recently determined by the Bureau of 
Labor Standards in accordance with Title 26, section 1308 and in compliance with 
applicable requirements of the federal act and the IRS production tax credit regulations; 
and
C. Prohibit the sale or purchase of thermal renewable energy credits, as defined in 
section 3210, subsection 2, paragraph E, associated with the hydrogen produced by a 
clean hydrogen facility chosen for the pilot program.
3.  Exemptions for sales of electricity to clean hydrogen facility. Sales of electricity 
to a clean hydrogen facility selected by the commission under subsection 2 are exempt 
from:
A. Any distribution, delivery or related charges regulated by the commission, 
including, but not limited to, volumetric fees, stranded costs and demand and standby 
charges; and
B. Charges associated with the procurement of energy efficiency resources by 
transmission and distribution utilities ordered under section 10110, subsection 4-A. 
4. Exemption from portfolio requirements. A competitive electricity provider, as 
defined in section 3201, subsection 5, is exempt from the requirements established by 
section 3210 for the portion of its supply portfolio that is sold to a clean hydrogen facility 
under the pilot program.
5. 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. 2.  Report. The Public Utilities Commission, by November 1, 2025, shall submit 
a report to the joint standing committee of the Legislature having jurisdiction over energy 
and utilities matters regarding the status of the pilot program. The joint standing committee 
may report out a bill to the Second Regular Session of the 132nd Legislature based on the 
report.
SUMMARY
This bill requires the Public Utilities Commission to develop and oversee a pilot 
program to produce clean hydrogen. The commission is directed to select 3 clean hydrogen 
facilities to participate in the pilot program. Energy supplied to a clean hydrogen facility is 
exempt from all transmission and distribution charges, charges associated with the 
procurement of energy efficiency resources and the renewable resource requirements 
established by the Maine Revised Statutes, Title 35-A, section 3210. By November 1, 2025, 
the commission is required to submit a report to the joint standing committee of the 
Legislature having jurisdiction over energy and utilities matters regarding the status of the 
pilot program.