65-407-311 Me. Code R. § 5

Current through 2024-51, December 18, 2024

Section 407-311-5 - THERMAL ENERGY RENEWABLE REQUIREMENT

A.Requirement. Each competitive electricity provider, including standard offer providers, must demonstrate that it has purchased thermal renewable energy credits in an amount at least equal to the following percentages of its portfolio of supply sources for retail electricity sales in this State other than to customers who have elected to have their supply exempt pursuant to section 3(G) of this Chapter:

1. For calendar year 2021, 0.4%;

2. For calendar year 2022, 0.8%;

3. For calendar year 2023, 1.2%;

4. For calendar year 2024, 1.6%;

5. For calendar year 2025, 2%;

6. For calendar year 2026, 2.4%;

7. For calendar year 2027, 2.8%;

8. For calendar year 2028, 3.2%;

9. For calendar year 2029, 3.6%; and

10. For calendar year 2030, and each year thereafter, 4%.

B.Commission Certification. A facility may not be used to satisfy the thermal renewable energy requirements of this section unless the Commission certifies the facility as eligible pursuant to this section.

1.Certification Process. An owner or operator of a facility may seek Commission certification through the submission of a petition for certification. The Commission shall either certify the facility as eligible, 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 may provide an opportunity for public comment prior to making an eligibility determination. The Commission may revoke a certification if there is a material change in circumstance that renders the facility ineligible as a thermal renewable resource.

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

(i) Name and address of petitioner;

(ii) Location of the thermal energy facility;

(iii) Location of the end user entity;

(iv) Description of the thermal energy facility, including form of thermal energy and a means to verify the use of the form of thermal energy;

(v) The initial commercial operations date, including verification of the commercial operations date;

(vi) The means by which the thermal energy will be delivered to the end user and the metering or other means certified by the commission necessary to validate the thermal energy generated and transmitted;

(vii) A demonstration and a means for verification that the thermal energy will be used for heating, cooling, humidity control, process use or other end use to meet a need of the end user that would otherwise be met using another energy source such as electricity or an on-site thermal energy system;

(viii) A demonstration that the thermal energy facility meets any existing efficiency standards in effect for the sale or installation of the facility or, if no efficiency standards exist, a showing as to the facility's efficiency;

(ix) A demonstration and a means for verification that the thermal energy will be generated with any efficiency standards established by the Commission in this section;

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

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

C.Alternative Compliance Mechanism. The thermal renewable 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 thermal renewable energy credits. For purposes of this subsection, deficient thermal renewable energy credits are the number of thermal renewable energy credits required to be acquired pursuant to this section minus the number thermal renewable energy credits that are actually acquired.

2.Payment Rate. Unless otherwise changed by Commission Order, the alternative compliance payment rate shall be $25.00 per megawatt-hour.

3.Use of Funds. The Commission shall deposit all funds collected pursuant to this subsection in the Thermal Energy Investment Fund established pursuant to Title 35-A, section 10128(2).

D.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 thermal requirements of this section until the end date of the current term of the supply contract or standard-offer service arrangement.

65-407 C.M.R. ch. 311, § 5