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STATE OF MAINE
_____
IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-FIVE
_____
S.P. 738 - L.D. 1868
An Act to Advance a Clean Energy Economy by Updating Renewable and
Clean Resource Procurement Laws
Be it enacted by the People of the State of Maine as follows:
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, clean, efficient and indigenous resources,
it is the policy of this State to encourage the generation of electricity from renewable, clean
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-§1-A, ¶B, as enacted by PL 2019, c. 477, §1, is
amended to read:
B. By January 1, 2050, 100% 2040, 90% of retail sales electricity in the State will
come from renewable resources and 10% of retail sales electricity in the State will
come from clean resources.
Sec. 3. 35-A MRSA §3210, sub-§2, ¶A-4 is enacted to read:
A-4. "Class III resource" or "clean resource" means a source of generation that
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:
(1) Is a Class I resource or a Class IA resource;
(2) Relies on a nuclear power plant or hydroelectric generator that meets all state
and federal fish passage requirements applicable to the generator; or
(3) Generates electric energy in a manner that, as determined by the Department
of Environmental Protection, produces no more than a de minimis level of net
greenhouse gas emissions and co-pollutant emissions at the point of generation and
from the fuel supply chain of the facility and has been certified by the Governor's
APPROVED
JUNE 20, 2025
BY GOVERNOR
CHAPTER
386
PUBLIC LAW
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Energy Office in accordance with rules adopted by the Department of
Environmental Protection in accordance with this subsection.
Sec. 4. 35-A MRSA §3210, sub-§2, ¶A-5 is enacted to read:
A-5. "Clean energy credit" means a tradable instrument that represents an amount of
electricity generated from an eligible Class III resource.
Sec. 5. 35-A MRSA §3210, sub-§2, as amended by PL 2019, c. 477, §1, is further
amended by amending the first blocked paragraph to read:
The commission shall establish by rule or order standards and procedures necessary to
implement any definition under this subsection, including but not limited to certifications
and performance and verification standards necessary for purposes of paragraphs B‑4, D
and E, and excluding paragraphs A-4 and A-5. Rules adopted under this subsection are
routine technical rules pursuant to Title 5, chapter 375, subchapter 2‑A.
Sec. 6. 35-A MRSA §3210, sub-§2, as amended by PL 2019, c. 477, §1, is further
amended by enacting at the end a new last blocked paragraph to read:
The Department of Environmental Protection, in coordination with the Governor's Energy
Office, shall establish by rule standards and procedures necessary to implement the
definition under paragraph A-4 and verification standards necessary for purposes of
paragraph A-5. Rules adopted under this subsection are routine technical rules pursuant to
Title 5, chapter 375, subchapter 2-A.
Sec. 7. 35-A MRSA §3210, sub-§3-B, ¶A, as enacted by PL 2019, c. 477, §1, is
amended to read:
A. Except as provided in paragraph B, beginning January 1, 2020, 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 the percentage of its
portfolio of supply sources for retail electricity sales in this State, other than to
customers who have made an election pursuant to subsection 10 that is in effect with
respect to this subsection, accounted for by Class IA resources is as follows:
(1) Two and one-half percent for the period from January 1, 2020 to December
31, 2020;
(2) Five percent for the period from January 1, 2021 to December 31, 2021;
(3) Eight percent for the period from January 1, 2022 to December 31, 2022;
(4) Eleven percent for the period from January 1, 2023 to December 31, 2023;
(5) Fifteen percent for the period from January 1, 2024 to December 31, 2024;
(6) Nineteen percent for the period from January 1, 2025 to December 31, 2025;
(7) Twenty-three percent for the period from January 1, 2026 to December 31,
2026;
(8) Twenty-seven percent for the period from January 1, 2027 to December 31,
2027;
(9) Thirty-one percent for the period from January 1, 2028 to December 31, 2028;
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(10) Thirty-five percent for the period from January 1, 2029 to December 31, 2029;
and
(11) Forty percent for the period from January 1, 2030 to December 31, 2030 and
each year thereafter.;
(12) Forty-one percent for the period from January 1, 2031 to December 31, 2031;
(13) Forty-two percent for the period from January 1, 2032 to December 31, 2032;
(14) Forty-three percent for the period from January 1, 2033 to December 31,
2033;
(15) Forty-four percent for the period from January 1, 2034 to December 31, 2034;
(16) Forty-five percent for the period from January 1, 2035 to December 31, 2035;
(17) Forty-six percent for the period from January 1, 2036 to December 31, 2036;
(18) Forty-seven percent for the period from January 1, 2037 to December 31,
2037;
(19) Forty-eight percent for the period from January 1, 2038 to December 31,
2038;
(20) Forty-nine percent for the period from January 1, 2039 to December 31, 2039;
and
(21) Fifty percent for the period from January 1, 2040 to December 31, 2040 and
each year thereafter.
Class IA resources used to satisfy the requirements of this paragraph may not be used
to satisfy the requirements of subsection 3 or, 3‑A or 3-D.
Sec. 8. 35-A MRSA §3210, sub-§3-D is enacted to read:
3-D. Portfolio requirements; Class III resources. Portfolio requirements for Class
III resources are governed by this subsection.
A. As a condition of licensing pursuant to section 3203, each competitive electricity
provider in the State must demonstrate in a manner satisfactory to the commission that
the percentage of its portfolio of supply sources for retail electricity sales in the State
accounted for by Class III resources is as follows:
(1) For calendar year 2031, 1%;
(2) For calendar year 2032, 2%;
(3) For calendar year 2033, 3%;
(4) For calendar year 2034, 4%;
(5) For calendar year 2035, 5%;
(6) For calendar year 2036, 6%;
(7) For calendar year 2037, 7%;
(8) For calendar year 2038, 8%;
(9) For calendar year 2039, 9%; and
(10) For calendar year 2040, and each year thereafter, 10%.
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Retail electricity sales pursuant to a supply contract or standard-offer service
arrangement executed by a competitive electricity provider that is in effect on
September 30, 2025 are exempt from the requirements of this subsection until the end
date of the existing term of the supply contract or standard-offer service arrangement.
Class I or IA resources used to satisfy the requirements of this paragraph may not be
used to satisfy the requirements of subsection 3 or 3-A.
B. Suspensions of scheduled increases in the portfolio requirements as provided in
paragraph A are governed by this paragraph.
(1) If by March 31, 2031 and every 2 years thereafter the commission determines
that investment in Class III resources in the preceding 2 calendar years has not
been sufficient for competitive electricity providers to meet the portfolio
requirements under paragraph A and that the resulting use of clean energy credits
pursuant to subsection 8 or the alternative compliance payment mechanism
pursuant to subsection 9, or both of these methods, has burdened electricity
customers in the State without providing the benefits of new Class III resources,
the commission may suspend all or some of the future scheduled increases in the
portfolio requirements under paragraph A.
(2) If the commission finds that more than 10% of the obligations required to
satisfy the portfolio requirements for Class III resources under paragraph A are met
through alternative compliance payments made pursuant to subsection 9 in 3
consecutive calendar years, the commission shall temporarily suspend all or some
of the future scheduled increases in the portfolio requirements under paragraph A.
(3) If the commission suspends any scheduled increases in the portfolio
requirements under paragraph A pursuant to subparagraph (1) or (2), the
commission shall report its rationale for suspension to the joint standing committee
of the Legislature having jurisdiction over energy and utilities matters, the
Governor's Energy Office and the Office of the Public Advocate and make
recommendations for modifications to the schedule of increases. The commission
may resume increases, limited to no more than one percentage point per year over
the previous year, in the portfolio requirements after a minimum of one year unless
otherwise directed by the Legislature.
C. No later than March 31, 2027 and annually thereafter, the commission shall submit
a report regarding the status of Class III resources in the State and compliance with the
portfolio requirements under paragraph A to the joint standing committee of the
Legislature having jurisdiction over utilities and energy matters. The report must
include, but is not limited to, a description of Class III resources available to meet the
portfolio requirements under paragraph A, documentation of the loss of any existing
clean generation capacity in the State, the status of implementation of the portfolio
requirements under paragraph A, including any suspensions pursuant to paragraph B,
and recommendations to stimulate investment in Class III resources.
The commission shall adopt rules to implement this subsection. Rules adopted under this
subsection are routine technical rules pursuant to Title 5, chapter 375, subchapter 2-A.
Sec. 9. 35-A MRSA §3210, sub-§7, as amended by PL 2011, c. 283, §1, is further
amended to read:
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7. Information. To the extent that funding is available, the commission shall inform
electricity consumers in this State of the benefits of electricity generated in this State using
renewable and clean resources and of the opportunities available in this State to purchase
electricity that is generated using those resources, including, but not limited to, the green
power offer and other green power supply products and renewable energy credit and clean
energy credit products certified under section 3212‑A 3212-B. The commission may not
promote any renewable or clean resources over others. The commission may apply for,
receive and expend grant money from the United States Department of Energy and other
government agencies for this purpose. The commission may create or cause to be created
a brand or logo to identify Maine renewable and clean resources, including the green power
offer and other green power supply products and renewable energy credit and clean energy
credit products certified under section 3212‑A 3212-B, to consumers. The commission
shall register any mark or logo created pursuant to this subsection with the United States
Patent and Trademark Office or in accordance with Title 10, chapter 301‑A, or both. Any
brand or logo created pursuant to this subsection may only be used in accordance with the
purposes of this subsection as approved by the commission.
Sec. 10. 35-A MRSA §3210, sub-§8, as amended by PL 2019, c. 477, §1, is further
amended to read:
8. Credit trading. The commission shall allow competitive electricity providers to
satisfy the portfolio requirements of subsections 3, 3‑A, 3‑B and, 3‑C and 3-D through the
use of renewable energy credits and clean energy credits if the commission determines that
a reliable system of electrical attribute trading exists. When renewable energy credits are
used to satisfy the portfolio requirements of subsections 3 and 3‑A, the value of a renewable
energy credit for electricity generated by a community-based renewable energy project, as
defined in section 3602, that is participating in the community-based renewable energy
pilot program established in section 3603 and elects the renewable energy credit multiplier
under section 3605 is 150% of the amount of the electricity.
Sec. 11. 35-A MRSA §3210, sub-§9, as amended by PL 2023, c. 306, §1 and c.
361, §2, is further amended to read:
9. Alternative compliance payment. The commission shall allow competitive
electricity providers to satisfy the portfolio requirements for Class I resources under
subsection 3‑A, Class IA resources under subsection 3‑B, thermal renewable energy credits
under subsection 3‑C and, Class II resources under subsection 3 and Class III resources
under subsection 3-D through an alternative compliance payment mechanism in
accordance with this subsection.
A. The commission shall set the alternative compliance payment rates by rule and shall
publish the alternative compliance payment rates by January 31st of each year. In
setting the rates, the commission shall take into account prevailing market prices,
standard-offer service prices for electricity, alignment with other New England states,
reliance on alternative compliance payments to meet the requirements of subsections
3, 3‑A, 3‑B and, 3‑C and 3-D and investment in Class I, Class IA and, Class II and
Class III resources and thermal renewable energy credits in the State during the
previous calendar year.
(1) The alternative compliance payment rate for the requirements under
subsections 3‑A, 3‑B and, 3‑C and 3-D may not be greater than $50.
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(2) The alternative compliance payment rate for the requirement under subsection
3 may not be greater than $10.
B. The commission shall collect alternative compliance payments to meet the
requirements of subsections 3, 3‑A and, 3‑B and 3-D made by competitive electricity
providers and shall use all funds collected under this paragraph to provide financial
assistance for low-income households in accordance with section 3214, subsection 2.
C. The commission shall collect alternative compliance payments to meet the
requirements of subsection 3‑C made by competitive electricity providers and shall
deposit all funds collected under this paragraph in the Thermal Energy Investment
Fund established under section 10128, subsection 2 to be used to fund incentives and
low-interest or no-interest loans to businesses, municipalities, educational institutions
and nonprofit entities in the State for the installation of new thermal energy-derived
projects.
The commission shall adopt rules to implement this subsection. Rules adopted to establish
the alternative compliance payment rates governed by paragraph A, subparagraphs (1) and
(2) routine technical rules as defined in Title 5, chapter 375, subchapter 2‑A.
Sec. 12. 35-A MRSA §3210, sub-§11, as amended by PL 2023, c. 321, §1, is
further amended to read:
11. Report; renewable energy credit portfolio requirements. By March 31, 2024
and every 3 years thereafter, the Governor's Energy Office shall submit a report to the joint
standing committee of the Legislature having jurisdiction over energy matters based on a
review, conducted in consultation with the commission, of the status and impacts of the
implementation of the portfolio requirements under subsections 3, 3‑A, 3‑B and, 3‑C and
3-D. The review must be completed through a public process and must include
consideration of impacts of these renewable portfolio requirements on energy prices and
assessment of benefits, including, but not limited to, on greenhouse gas emissions and the
economy of the State. After reviewing the report required under this subsection, the
committee may report out legislation regarding renewable portfolio requirements.
Sec. 13. 35-A MRSA §3210-C, sub-§1, ¶A, as amended by PL 2007, c. 293, §1,
is further amended to read:
A. "Capacity resource" means any renewable capacity resource, nonrenewable
capacity resource, clean resource or interruptible, demand response or energy
efficiency capacity resource.
Sec. 14. 35-A MRSA §3210-C, sub-§1, ¶A-2 is enacted to read:
A-2. "Clean energy credit" has the same meaning as in section 3210, subsection 2,
paragraph A-5.
Sec. 15. 35-A MRSA §3210-C, sub-§1, ¶A-3 is enacted to read:
A-3. "Clean resource" has the same meaning as in section 3210, subsection 2,
paragraph A-4.
Sec. 16. 35-A MRSA §3210-C, sub-§3, ¶D, as enacted by PL 2017, c. 134, §2, is
repealed.
Sec. 17. 35-A MRSA §3210-C, sub-§3, ¶E is enacted to read:
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E. Clean energy credits associated with clean resources. The price paid by the investor-
owned transmission and distribution utility for the clean energy credits must be lower
than the price received for those clean energy credits at the time they are sold by the
investor-owned transmission and distribution utility.
Sec. 18. 35-A MRSA §3210-C, sub-§3, as amended by PL 2023, c. 516, Pt. B,
§49, is further amended by amending the last blocked paragraph to read:
By January 1st of each year, the commission shall submit a report to the joint standing
committee of the Legislature having jurisdiction over energy and utilities matters on the
procurement of transmission capacity, capacity resources, energy and, renewable energy
credits and clean energy credits in the preceding 12 months under this subsection, resources
procured under section 3210-K and deep-water offshore wind energy pilot projects under
Public Law 2009, chapter 615, Part A, section 6, as amended by Public Law 2013, chapter
369, Part H, sections 1 and 2 and chapter 378, sections 4 to 6. The report must contain
information, including, but not limited to, the number of requests for proposals by the
commission for long-term contracts, the number of responses to requests for proposals
pursuant to which a contract has been finalized, the number of executed term sheets or
contracts resulting from the requests for proposals, the commission's initial estimates of
ratepayer costs or savings associated with any approved term sheet, actual ratepayer costs
or savings for the previous year associated with any procurement, the total ratepayer costs
or savings at the time of the report and the megawatt-hours, renewable energy credits, clean
energy credits or capacity produced or procured through contracts. The report must include
actual ratepayer costs or savings for the previous year associated with any contract executed
under the Community-based Renewable Energy Act. The report must also include a plan
for the succeeding 12 months pertaining to the procurement of capacity resources, energy
and, renewable energy credits and clean energy credits, including dates for requests for
proposals, and types of resources to be procured.
Sec. 19. 35-A MRSA §3210-C, sub-§3-A is enacted to read:
3-A. Regional coordination. If the commission determines that the likely benefits to
ratepayers in the State will exceed the likely costs, the commission may coordinate with
one or more states to procure, through long-term contracts or other mechanisms,
transmission capacity, capacity resources, renewable energy credits or clean energy credits.
Sec. 20. 35-A MRSA §3210-C, sub-§7, as amended by PL 2009, c. 518, §5, is
further amended to read:
7. Disposition of resources. An investor-owned transmission and distribution utility
shall sell capacity resources, energy or , renewable energy credits or clean energy credits
purchased pursuant to subsection 3 or 3-A or take other action relative to such capacity
resources, energy or, renewable energy credits or clean energy credits as directed by the
commission.
Sec. 21. 35-A MRSA §3210-C, sub-§9, as amended by PL 2009, c. 518, §6, is
further amended to read:
9. Contract payments. Except as provided in paragraphs A and B, contracts for
capacity resources, related energy or, renewable energy credits or clean energy credits
entered into pursuant to this section must provide that payments will be made only after
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contracted amounts of capacity resources, related energy or renewable energy credits have
been provided.
A. Contracts with the Efficiency Maine Trust established in section 10103 for energy
efficiency capacity resources and related energy entered into pursuant to this section
may provide that up to 20% of the total payment be made at the start of the contract.
Such contracts must provide that the remaining payments will be made only after the
supplier has demonstrated, according to measurement and verification protocols
specified in rules adopted by the Efficiency Maine Trust Board pursuant to section
10105, subsection 5, that physical installations have been completed and contracted
amounts of capacity resources and related energy have been substantiated.
B. Contracts with any entity other than the Efficiency Maine Trust established in
section 10103 for energy efficiency capacity resources and related energy must provide
that payments will be made only after the supplier has demonstrated, according to
measurement and verification protocols specified in rules adopted by the Efficiency
Maine Trust Board pursuant to section 10105, subsection 5, that physical installations
have been completed and contracted amounts of capacity resources and related energy
have been substantiated.
Sec. 22. 35-A MRSA §3212-B, sub-§1, as enacted by PL 2021, c. 40, §1, is
amended to read:
1. Definitions. As used in this section, unless the context otherwise indicates, the
following terms have the following meanings.
A. "Green power supply" means electricity or renewable energy credits or clean energy
credits for electricity generated from renewable capacity resources as defined in section
3210, subsection 2, paragraph B‑3, including electricity generated by community-
based renewable energy projects as defined in section 3602, subsection 1.
A-1. "Clean energy credit" has the same meaning as in section 3210, subsection 2,
paragraph A-5.
B. "Renewable energy credit" has the same meaning as in section 3210, subsection 2,
paragraph B‑2.
Sec. 23. 35-A MRSA §3212-B, sub-§2, as enacted by PL 2021, c. 40, §1, is
amended to read:
2. Certification; information in bill inserts. Information regarding the availability
of the green power offer and of green power supply products and, renewable energy credit
products and clean energy credit products that are certified by the commission may, at the
option of the provider of the offer or the product and with the cooperation of the
transmission and distribution utility, be presented through inserts in customer bills issued
by transmission and distribution utilities. The costs of the inserts, including but not limited
to printing and postage costs, are the responsibility of the provider of the offer or product.
The commission may define the criteria for certification of green power supply products
and, renewable energy credit products and clean energy credit products by order or by rule,
and the commission may limit the criteria for certification for consumer protection and
eligibility verification purposes. Rules adopted to implement this subsection are routine
technical rules as defined in Title 5, chapter 375, subchapter 2‑A.
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Sec. 24. Public Utilities Commission; rules. The Public Utilities Commission
may initiate rulemaking to amend its rule Chapter 316: Long-term Contracting and
Resource Adequacy to implement the Maine Revised Statutes, Title 35-A, section 3210-C.
Notwithstanding Title 35-A, section 3210-C, subsection 10, rules adopted pursuant to this
section are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.