Signed by Governor Janet Mills

Vote Smart's Synopsis:

Vote on a motion to adopt an "ought to pass" report for a bill that authorizes the Maine Public Utilities Commission to coordinate with other states in the procurement of transmission capacity resources and specified energy credits.

Highlights:

• Requires the Governor’s Energy Office to conduct one or more competitive solicitations every two years beginning in 2026 to procure energy from renewable and clean sources if it determines that it is necessary to achieve the emissions reduction goals of the state (Sec. 1).

• Specifies that the Office must propose the resource types and amounts, timetables, and methods for solicitations of contracts using a competitive bidding process, and seek public comment on a draft proposal (Sec. 1).

• Specifies that the Office may coordinate with other entities in the state or in other New England states in the evaluation and selection of proposals (Sec. 1).

• Requires the Office to determine if proposals do the following (Sec. 1):

• Provide cost-effective clean energy generation to electric ratepayers;

• Provide energy that moves toward the state’s emissions reduction goals;

• Contribute to the state’s economic and workforce development goals;

• Avoid, minimize, or mitigate environmental impacts and impacts to low-income populations; and

• Demonstrate project viability within a commercially reasonable timeframe.

• Requires the Public Utilities Commission to approve a contract that it determines meets the standards set in the previous paragraph, is commercially reasonable, and adequately protects ratepayers, and order transmission and distribution utilities to enter into the contract (Sec. 1).

• Establishes an additional annual assessment of investor-owned transmission and distribution utilities on their intrastate gross operating revenues to produce sufficient revenue for expenditures of the Governor’s Energy Office for clean and renewable resources (Sec. 3).

• Requires the Office to make an annual report of its planned expenditures for the year and on its use of funds in the previous year, and authorizes unexpended funds to be carried forward for the same purpose (Sec. 3).

• Amends energy goals to require 90% of retail sales electricity in the state to come from renewable resources, and 10% to come from clean resources by 2040 (Sec. 5).

• Extends the required incremental increase in the percentage of retail electricity sales that must come from Class IA resources based on emissions to reach 50% by 2040 and each year thereafter (Sec. 10).

• Establishes annual 1% increases in the required portion of Class III renewable energy credits that competitive electricity providers must purchase, starting at 1% in 2021, and reaching 10% in 2040 and each year thereafter (Sec. 11).

• Authorizes the Public Utilities Commission to suspend all or some of the future scheduled increases in the energy portfolio requirements if it determines that they are not providing sufficient benefit (Sec. 11).

• Requires that the price paid by an investor-owned transmission and distribution utility for clean energy credits be lower than the price received for those credits when they are sold by the utility (Sec. 21).

• Authorizes the Public Utilities Commission to coordinate with one or more states to procure transmission capacity, capacity resources, energy credits, or renewable/clean energy credits (Sec. 23).

• Requires the Commission to conduct a competitive solicitation to select eligible Class IA resources for contracts totaling 2% of the retail electricity sales in the state, and specifies that a contract may not last more than 10 years (Sec. 26).

Full Bill Text

Vote Smart's Synopsis:

Vote on a motion to adopt an "ought to pass" report for a bill that authorizes the Maine Public Utilities Commission to coordinate with other states in the procurement of transmission capacity resources and specified energy credits.

Highlights:

• Requires the Governor’s Energy Office to conduct one or more competitive solicitations every two years beginning in 2026 to procure energy from renewable and clean sources if it determines that it is necessary to achieve the emissions reduction goals of the state (Sec. 1).

• Specifies that the Office must propose the resource types and amounts, timetables, and methods for solicitations of contracts using a competitive bidding process, and seek public comment on a draft proposal (Sec. 1).

• Specifies that the Office may coordinate with other entities in the state or in other New England states in the evaluation and selection of proposals (Sec. 1).

• Requires the Office to determine if proposals do the following (Sec. 1):

• Provide cost-effective clean energy generation to electric ratepayers;

• Provide energy that moves toward the state’s emissions reduction goals;

• Contribute to the state’s economic and workforce development goals;

• Avoid, minimize, or mitigate environmental impacts and impacts to low-income populations; and

• Demonstrate project viability within a commercially reasonable timeframe.

• Requires the Public Utilities Commission to approve a contract that it determines meets the standards set in the previous paragraph, is commercially reasonable, and adequately protects ratepayers, and order transmission and distribution utilities to enter into the contract (Sec. 1).

• Establishes an additional annual assessment of investor-owned transmission and distribution utilities on their intrastate gross operating revenues to produce sufficient revenue for expenditures of the Governor’s Energy Office for clean and renewable resources (Sec. 3).

• Requires the Office to make an annual report of its planned expenditures for the year and on its use of funds in the previous year, and authorizes unexpended funds to be carried forward for the same purpose (Sec. 3).

• Amends energy goals to require 90% of retail sales electricity in the state to come from renewable resources, and 10% to come from clean resources by 2040 (Sec. 5).

• Extends the required incremental increase in the percentage of retail electricity sales that must come from Class IA resources based on emissions to reach 50% by 2040 and each year thereafter (Sec. 10).

• Establishes annual 1% increases in the required portion of Class III renewable energy credits that competitive electricity providers must purchase, starting at 1% in 2021, and reaching 10% in 2040 and each year thereafter (Sec. 11).

• Authorizes the Public Utilities Commission to suspend all or some of the future scheduled increases in the energy portfolio requirements if it determines that they are not providing sufficient benefit (Sec. 11).

• Requires that the price paid by an investor-owned transmission and distribution utility for clean energy credits be lower than the price received for those credits when they are sold by the utility (Sec. 21).

• Authorizes the Public Utilities Commission to coordinate with one or more states to procure transmission capacity, capacity resources, energy credits, or renewable/clean energy credits (Sec. 23).

• Requires the Commission to conduct a competitive solicitation to select eligible Class IA resources for contracts totaling 2% of the retail electricity sales in the state, and specifies that a contract may not last more than 10 years (Sec. 26).

Full Bill Text