65-407-311 Me. Code R. § 3

Current through 2024-25, June 19, 2024

Section 407-311-3 - NEW RENEWABLE RESOURCES; CLASS I AND CLASS IA

A.Class I Requirement. Except as provided in subsection D, beginning January 1, 2008, each competitive electricity provider, including standard offer providers, must account for no less than the percentage specified below of its total kilowatt-hour sales to customers in Maine with electric energy associated with Class I resources in accordance with the provisions of this Chapter.

1. One percent for the period from January 1, 2008 to December 31, 2008;

2. Two percent for the period from January 1, 2009 to December 31, 2009;

3. Three percent for the period from January 1, 2010 to December 31, 2010;

4. Four percent for the period from January 1, 2011 to December 31, 2011;

5. Five percent for the period from January 1, 2012 to December 31, 2012;

6. Six percent for the period from January 1, 2013 to December 31, 2013;

7. Seven percent for the period from January 1, 2014 to December 31, 2014;

8. Eight percent for the period from January 1, 2015 to December 31, 2015;

9. Nine percent for the period from January 1, 2016 to December 31, 2016; and

10. Ten percent for the period from January 1, 2017 to December 31, 2017 and for each year thereafter.

Class I resources used to satisfy the requirements of this subsection may not be used to satisfy the requirements of Section 3(B) or Section 4.

B.Class IA Requirement. Except as provided in subsection D, beginning January 1, 2020, each competitive electricity provider, including standard offer providers, must account for no less than the percentage specified below of its total kilowatt-hour sales to customers in Maine with electric energy associated with Class IA resources in accordance with the provisions of this Chapter.

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;

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.

Class IA resources used to satisfy the requirements of this subsection may not be used to satisfy the requirements of Section 3(A) or Section 4.

C.Commission Certification. Except as otherwise provided, a generation facility may not be used to satisfy the Class I or Class IA requirements of this section unless the Commission certifies the generation facility as a Class I or Class IA resource. A resource may be classified as both a Class I and Class IA resource. A resource must be specifically certified as a qualified hydroelectric facility. All Class I generation facilities certified by the Commission as of September 19, 2019 are automatically certified as Class IA generation facilities without any filing requirements except those existing generation facilities that were certified as Class I resource on the basis that for at least 2 years the generation facility was not operated or was not recognized by the New England independent system operator as a capacity resource and, after September 1, 2005, resumed operation or was recognized by the New England independent system operator as a capacity resource.

1.Certification Process. An owner or operator of a generation facility may seek Commission certification through the submission of a petition for certification. The Commission shall either certify the generation facility as a Class I or IA resource, or both, or state the reasons for the denial of the certification within 90 days of the submission of a complete application. If additional time is required, the Administrative Director may extend the time period for review. The Commission shall provide an opportunity for public comment if the petitioner seeks certification as refurbished resource. The Commission may revoke a certification if there is a material change in circumstance that renders the generation facility ineligible as a Class I or Class IA resource.

2.Petition. The petition for certification shall include the following information:

(i) Name and address of petitioner;

(ii) Location of the generation facility;

(iii) Description of the generation facility, including fuel type, capacity and initial commercial operation date;

(iv) The refurbish category for which certification is sought

(v) Demonstration of qualification for a comparable portfolio requirement in another state, if applicable;

(vi) Historical output and means to determine incremental output, if certification is sought for a facility added to an existing facility;

(vii) The time period for which the facility did not operate, the reasons the facility did not operate, and the date operation resumed; if certification is sought for a facility that has resumed operations;

(viii) A description of facility refurbishment, the degree to which the useful life has been extended, and the use of an alternate technology and resulting efficiency increases, if certification is sought for a refurbished facility; and

(ix) Any other information that the Commission determines to be necessary or useful.

D.Alternative Compliance Mechanism. The Class I and Class IA requirements of this section may be satisfied by an alternative compliance payment according to this subsection. The payment for an applicable year shall be made to the Commission by July 1 of the following year.

1.Payment Amount. The amount of the alternative compliance payment shall equal the alternative compliance payment rate multiplied by the number of deficient kilowatt-hours. For purposes of this subsection, deficient kilowatt-hours are the number of kilowatt-hours required to be served by Class I or Class IA resources minus the number of kilowatt-hours that are actually served by Class I or Class IA resources.

2.Payment Rate. The alternative compliance base rate shall be $57.12 per megawatt-hour. Beginning in 2008, the Commission will adjust the alternative compliance payment rate by the annual change in the U.S. Bureau of Labor Statistics Consumer Price Index. For each year, the Commission will calculate and publish the alternative compliance payment rate no later than January 31 for applicability in that year. For RPS requirements on or after January 1, 2020, the alternative compliance payment rate shall be $50.00 per megawatt-hour.

3.Use of Funds. The Commission shall use all funds collected pursuant to this subsection to provide financial assistance for low-income households in accordance with 35-A M.R.S. §3214(2).

E.Suspensions. Suspensions of scheduled increases in the Class IA requirement of this section are governed by this subsection.

1.Alternative Compliance Payments. The Commission shall temporarily suspend all or some of the scheduled percentage increases in the Class IA requirement if the Commission finds that alternative compliance payments made pursuant to subsection D account for more than 10% of the obligations required to satisfy the portfolio requirements for Class IA in 3 consecutive years.

2.Insufficient Development. The Commission may suspend all or some of a scheduled percentage increase in the Class IA requirement if by March 31^st of the year 2022 and every 2 years thereafter, the Commission determines that investment in Class IA resources over the preceding two years has not been sufficient for competitive electricity providers to meet the Class I and Class IA requirements and that the resulting use of GIS or NAR certificates or the alternative compliance payment mechanism, or both of these methods, has burdened electricity customers in the State without providing the benefits of Class IA resources. The Commission may suspend all or some of the future scheduled increases in the Class IA requirements.

3.Resumption of Scheduled Increases. Subsequent to any suspension pursuant to this subsection, the Commission may resume increases in the Class IA requirement but such increases are limited to no more than one percentage point per year over the previous year.

F.Exemption. Retail electricity sales pursuant to a supply contract or standard-offer service arrangement that is in effect on or before September 19, 2019, are exempt from the Class IA requirements of this section until the end date of the current term of the supply contract or standard-offer service arrangement. Retail electricity sales pursuant to a supply contract or standard-offer service arrangement that is in effect on or before September 20, 2007, are exempt from the Class I requirements of this section until the end date of the current term of the supply contract or standard-offer service arrangement.

G.Transmission and Subtransmission Customer Options. A customer receiving service at a transmission or subtransmission voltage level may elect to have its supply exempt from the requirements of the Class IA portfolio requirement contained in this section. The customer must provide the Commission with written notice of the election. The election becomes effective when notice is submitted to the Commission. The election must be made no later than December 31, 2019. If a customer makes an election under this subsection, the election applies through December 31, 2027. A customer may rescind the election by notifying the Commission in writing no later than 30 days after the Commission initiates the second solicitation under title 35-A, section3210-G. The decision to rescind is effective six months after the date the notice is provided to the Commission. As long as the election remains in effect, all retail sales of electricity to that customer are exempt from the Class IA requirement and no electricity generation, GIS certificates or NAR certificates produced by the customer's or affiliate's generation facility may be used or applied to satisfy the Class IA requirement or participate in long-term contract procurement pursuant to Title 35-A, section3210-G. Such customers or affiliates will not be subject to the costs or benefits that result from long-term contract procurements pursuant to Title 35-A, section3210-G. Except for customers receiving standard offer service, a customer has the obligation to inform its competitive electricity provider of an election or rescission pursuant to this subsection. The transmission and subtransmission customer's notification of an election, or subsequent rescission, pursuant to this section will occur through a Commission adopted proceeding.

H.Qualified Hydroelectric Output. Facilities certified as providing qualified hydroelectric output shall comply with the following provisions:

1.Renewable Energy Credits. Facilities certified as providing qualified hydroelectric output shall not seek to acquire or transfer Class I and Class 1A RECs associated with generation in excess of the limits specified in section 2(W) of this Chapter. Facilities may acquire or transfer Class II RECs

2.Aggregate Production. When the aggregate limit of production from qualified hydroelectric output has been reached for a particular year, facilities certified as providing qualified hydroelectric output shall not seek to acquire or transfer Class 1 and Class 1A GIS certificates or NAR certificates associated with generation from qualified hydroelectric output. Facilities may acquire or transfer Class II RECs.

65-407 C.M.R. ch. 311, § 3