Sec. 6. 35-A MRSA §3210, sub-§4-A is enacted to read:

4-A.__Alternative compliance payments; Renewable Power Fund. A competitive electricity provider may satisfy any unmet Tier 1 Requirement or Tier 2 Requirement by making alternative compliance payments pursuant to this subsection.__The payment to meet any unmet Tier 1 Requirement is calculated by multiplying $25 by the number of unmet megawatt hours. The payment to meet any unmet Tier 2 Requirement is calculated by multiplying $50 by the number of unmet megawatt hours.

There is established the Renewable Power Fund.__The fund is a nonlapsing fund administered by the commission to support the policies of this section.__All alternative compliance payments must be deposited in the fund.__The commission shall disburse money in the fund to tier 2 renewable resources in a manner that supports the policies, goals and objectives of this section.__The commission shall adopt rules governing the disbursement of money from the fund.

Rules adopted under this subsection are major substantive rules pursuant to Title 5, chapter 375, subchapter 2-A.

Sec. 7. 35-A MRSA §3210, sub-§6, as enacted by PL 1999, c. 372, §2, is amended to read:

6. Renewable Resource Research and Development Fund. There is established the Renewable Resource Research and Development Fund, referred to in this subsection as the "fund." The fund is a nonlapsing fund administered by the State Planning Office. All funds collected by the commission pursuant to subsection 5 must be deposited in the fund for distribution by the State Planning Office in accordance with subsection 5. The State Planning Office may seek and accept funding for the program established pursuant to subsection 5 from other sources, public or private. Any funds accepted for use in the program established pursuant to subsection 5 must be deposited in the fund.

Sec. 8. 35-A MRSA §3212, sub-§4-A, as enacted by PL 2003, c. 665, §2, is further amended to read:

4-A. Renewables; hedging. The commission shall adopt rules establishing standards and procedures for incorporating renewable resources that are constructed after March 1, 2004 into standard- offer service. The rules must provide for the incorporation of such resources if the commission finds that the incorporation will reduce the risk of price volatility, offer an