Sec. 1. 35-A MRSA §3210, sub-§1, as amended by PL 1999, c. 398, Pt. I, §1, is further amended to read:

1. Policy. In order to ensure an adequate and reliable supply of electricity for Maine residents and to encourage the use of renewable, efficient and indigenous resources, it is the policy of this State to encourage the generation of electricity from renewable and efficient sources and to diversify electricity production on which residents of this State rely in a manner consistent with this section.

Sec. 2. 35-A MRSA §3210, sub-§2, as repealed and replaced by PL 1999, c. 398, Pt. I, §2, is repealed and the following enacted in its place:

2.__Definitions.__As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

A. "Eligible renewable resource" means a source of electrical generation that:

(1)__Generates power in the State or generates power that can physically be delivered to the State's consumers; and

(2)__Is a renewable resource, provided that:

(a)__If the renewable resource is also a qualifying facility and is selling electrical output to a transmission and distribution utility, it is not being paid a rate for energy, or for energy and capacity, that exceeds the average New England independent system operator control area market energy clearing price for the preceding year by an amount equal to or greater than $20 per kilowatt hour; and

(b)__If the renewable resource relies for more than 10% of its output on sources of generation not listed in paragraph B, only output attributable to sources of generation listed in paragraph B qualifies as an eligible renewable resource under this paragraph.

B. "Renewable resource" means a source of electrical generation: