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An Act To Promote Tidal Energy Projects
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 38 MRSA §636-A, sub-§1, ¶A, as enacted by PL 2009, c. 270, Pt. D, §8, is amended to read:
 
A. "Tidal energy demonstration project" or "project" means a hydropower project that uses either in-stream tidal action or the difference between water levels on either side of a marine enclosure as a source of electrical power and that:
 
(1) Has a totalnet installed generating capacity of 525 megawatts or less; and
 
(2) Is proposed for the primary purpose of testing new or advanced tidal energy generation technologytechnologies, which may include a mooring or anchoring system and, transmission line, turbine designs and construction techniques, and collecting and assessing information on the environmental and other effects of the technologytechnologies.
Sec. 2.  PL 2009, c. 615, Pt. A, §6, 3rd ¶  is amended to read:
Subject to the requirements of this section, the commission may direct one or more transmission and distribution utilities, as appropriate, to enter into a long-term contract for an initial term of up to 20 years and with an option, exercisable at the commission's discretion, for one or more renewal terms up to a maximum aggregate extension period of 25 years for the installed capacity and associated renewable energy and renewable energy credits of one or more deep-water offshore wind energy pilot projects or tidal energy demonstration projects.
Sec. 3.  PL 2009, c. 615, Pt. A, §6, sub-§1, first sentence  is amended to read:
 
Following review of proposals submitted in response to thea competitive solicitation, the commission may negotiate with one or more potential suppliers to supply an aggregate total of no more than 3045 megawatts of installed capacity and associated renewable energy and renewable energy credits from deep-water offshore wind energy pilot projects or tidal energy demonstration projects as long as no more than 530 megawatts of the total is supplied by tidal energy demonstration projects.
Sec. 4. Competitive solicitation of proposals for tidal energy demonstration projects. Notwithstanding any other provision of law, the Public Utilities Commission shall conduct an additional competitive solicitation of proposals as described in Public Law 2009, chapter 615, Part A, section 6, as amended, for tidal energy demonstration projects as soon as practicable after the effective date of this section. The commission shall make all reasonable efforts to complete its review of proposals under this solicitation and finalize a long-term contract as soon as practicable after initiating this solicitation. The long-term contract may not result in an increase in electric rates in any customer class that is greater than the amount of the assessment charged under the Maine Revised Statutes, Title 35-A, section 10110, former subsection 4 at the time the long-term contract is entered into, after taking into account any increase in those electric rates from the sale of energy under any other long-term contract entered into with a tidal energy demonstration project or deep-water offshore wind energy pilot project finalized prior to the long-term contract finalized pursuant to this section.
 
SUMMARY
This bill expands the definition of "tidal energy demonstration project" under the laws governing general permits for tidal energy demonstration projects to cover so-called tidal range projects, which extract energy from the differential head across a marine enclosure. The bill further directs the Public Utilities Commission to conduct an additional competitive solicitation of proposals for tidal energy demonstration projects and increases the allowed capacity derived from tidal energy demonstration projects to 30 megawatts and total allowed capacity contracted for by the commission to 45 megawatts.