Sec. I-1. 35-A MRSA §3210, sub-§1, as enacted by PL 1997, c. 316, §3, is 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. I-2. 35-A MRSA §3210, sub-§2, as enacted by PL 1997, c. 316, §3, is repealed and the following enacted in its place: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. "Efficient resource" means a source of electrical generation that:
(1) Qualifies as a qualifying cogeneration facility under the Federal Energy Regulatory Commission rules, 18 Code of Federal Regulations, Part 292, Subpart B, as in effect on January 1, 1997, was constructed prior to January 1, 1997 and meets the following efficiency standard:
(a) During any calendar year, the sum of the useful power output and the useful thermal energy output of the facility is no less than 60% of the total energy input to the facility.
For purposes of this paragraph, the term "useful power output" means the electrical or mechanical energy made available for use, exclusive of any energy used in the power production process. For purposes of this paragraph, the term "useful thermal energy" means thermal energy made available to an industrial or commercial process, net of any heat contained in condensate return and makeup water, used in a heating application or used in a space cooling application.
B. "Eligible resource" means a source of electrical generation that:
(1) Generates power that can physically be delivered to the control region in which the New England Power Pool, or its successor as approved by the Federal Energy Regulatory Commission, has authority over transmission, or to the Maritimes Control Area; and
(2) Is either a renewable resource or an efficient resource.
C. "Renewable resource" means a source of electrical generation:
(1) That qualifies as a small power production facility under the Federal Energy Regulatory Commission rules, 18 Code of Federal Regulations, Part 292, Subpart B, as in effect on January 1, 1997; or
(2) Whose total power production capacity does not exceed 100 megawatts and that relies on one or more of the following:
(a) Fuel cells;
(b) Tidal power;
(c) Solar arrays and installations;
(d) Wind power installations;
(e) Geothermal installations;
(f) Hydroelectric generators;
(g) Biomass generators; or
(h) Generators fueled by municipal solid waste in conjunction with recycling.
Sec. I-3. 35-A MRSA §3210, sub-§§3 and 4, as enacted by PL 1997, c. 316, §3, are amended to read:
3. Portfolio requirements. As a condition of licensing pursuant to section 3203, each competitive electricity provider in this State must demonstrate in a manner satisfactory to the commission that no less than 30% of its portfolio of supply sources for retail electricity sales in this State are is accounted for by renewable eligible resources. If a competitive electricity provider represents to a customer that the provider is selling to the customer a portfolio of supply sources that includes more than 30% eligible resources, the resources necessary to supply more than 30% of that customer's load may not be applied to meet the aggregate 30% portfolio requirement. By January 1, 1999, the commission shall provisionally adopt rules establishing reasonable procedures for implementing this requirement. Rules adopted under this subsection are major substantive rules pursuant to Title 5, chapter 375, subchapter II-A.
4. Report. In view of property tax benefits, developments in other states and the development of a market for tradable credits for satisfying renewable eligible resource requirements, the commission shall review the 30% portfolio requirement and make a recommendation for any change to the joint standing committee of the Legislature having jurisdiction over utilities and energy matters no later than 5 years after the beginning of retail competition.
Sec. I-4. Modification of rules. The Public Utilities Commission shall modify its major substantive rule, Chapter 311: Renewable Resource Portfolio Requirement, as follows to bring it into conformity with the changes to law accomplished pursuant to this Part:
1. Change the renewable resources portfolio requirement to an eligible resources portfolio requirement;
2. Change the definition of "renewable resource" to conform with the definition of that term provided in the Maine Revised Statutes, Title 35-A, section 3210, subsection 2, paragraph C;
3. Add a definition of "efficient resource" that conforms with the definition of that term provided in Title 35-A, section 3210, subsection 2, paragraph A; and
4. Insert a provision that if a competitive electricity provider represents to a customer that the provider is selling to the customer a portfolio of supply sources that includes more than 30% eligible resources, the resources necessary to supply more than 30% of that customer's load may not be applied to meet the aggregate 30% portfolio requirement.
The Public Utilities Commission is not required to hold hearings or conduct other formal proceedings to modify its major substantive rule in accordance with this section, and such modifications do not require review or approval of the Legislature prior to becoming effective.
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