Printed on recycled paper 131st MAINE LEGISLATURE FIRST SPECIAL SESSION-2023 Legislative Document No. 1887S.P. 762 In Senate, May 4, 2023 An Act to Clarify the Review and Procurement Process for Nonwires Alternatives Reference to the Committee on Energy, Utilities and Technology suggested and ordered printed. DAREK M. GRANT Secretary of the Senate Presented by Senator GROHOSKI of Hancock. Page 1 - 131LR1752(01) 1 2 as enacted by PL 2013, c. 369, Pt. C, §1, is 3 repealed. 4 as enacted by PL 2019, c. 298, §5, is 5 amended to read: 6 7 alternative or an infrastructure, technology or application that either individually or 8 collectively defers or reduces the need for capital investment in the transmission and or 9 distribution system and addresses system reliability needs proposed to be met by the 10 transmission or distribution system investment. "Nonwires alternative" includes but is not 11 limited to energy efficiency and conservation measures, energy storage, load management, 12 demand response and distributed generation. 13 as amended by PL 2019, c. 298, §7, is 14 further amended to read: 15 Nonwires alternatives investigation; consideration. In 16 considering whether to approve or disapprove all or portions of a proposed transmission 17 line and associated infrastructure pursuant to subsection 5, the commission shall, for a 18 transmission line proposed by an investor-owned transmission and distribution utility, 19 consider the results and recommendations of an investigation by the nonwires alternative 20 coordinator conducted in accordance with section 3132‑C. 21 as amended by PL 2019, c. 298, §10, is further 22 amended to read: 23 24 The commission may approve or disapprove all or portions of a 25 proposed transmission line and shall make such orders regarding its character, size, 26 installation and maintenance and regarding nontransmission nonwires alternatives to the 27 proposed transmission line as are necessary, having regard for any increased costs caused 28 by the orders. In its review and consideration of nontransmission nonwires alternatives, as 29 required by subsection 2‑D, the commission shall give preference to the nontransmission 30 nonwires alternatives that have been identified as able to address the identified need for the 31 proposed transmission line most cost-effectively. When the cost-effectiveness of the 32 identified nontransmission nonwires alternatives are reasonably equal, the commission 33 shall give preference to the alternatives that produce the lowest amount of local air 34 emissions, including greenhouse gas emissions. 35 as amended by PL 2019, c. 298, §11, is further 36 amended to read: 37 38 the commission shall make specific findings with regard to the public need for the proposed 39 transmission line. The commission shall make specific findings with regard to the 40 likelihood that nontransmission nonwires alternatives can sufficiently address the identified 41 public need over the effective life of the transmission line more cost-effectively. If the 42 commission finds that a public need exists, after considering whether the need can be 43 reliably and more cost-effectively met using nontransmission nonwires alternatives, it shall Page 2 - 131LR1752(01) 44 issue a certificate of public convenience and necessity for the transmission line. In 45 determining public need, the commission shall, at a minimum, take into account 46 economics, reliability, public health and safety, scenic, historic and recreational values, 47 state renewable energy generation goals, the proximity of the proposed transmission line 48 to inhabited dwellings and nontransmission nonwires alternatives to construction of the 49 transmission line, including energy conservation, distributed generation or load 50 management. If the commission orders or allows the erection of the transmission line, the 51 order is subject to all other provisions of law and the right of any other agency to approve 52 the transmission line. The commission shall, as necessary and in accordance with 53 subsections 7 and 8, consider the findings of the Department of Environmental Protection 54 under Title 38, chapter 3, subchapter 1, article 6, with respect to the proposed transmission 55 line and any modifications ordered by the Department of Environmental Protection to 56 lessen the impact of the proposed transmission line on the environment. A person may 57 submit a petition for and obtain approval of a proposed transmission line under this section 58 before applying for approval under municipal ordinances adopted pursuant to Title 30‑A, 59 Part 2, Subpart 6‑A; and Title 38, section 438‑A and, except as provided in subsection 4, 60 before identifying a specific route or route options for the proposed transmission line. 61 Except as provided in subsection 4, the commission may not consider the petition 62 insufficient for failure to provide identification of a route or route options for the proposed 63 transmission line. The issuance of a certificate of public convenience and necessity 64 establishes that, as of the date of issuance of the certificate, the decision by the person to 65 erect or construct was prudent. At the time of its issuance of a certificate of public 66 convenience and necessity, the commission shall send to each municipality through which 67 a proposed corridor or corridors for a transmission line extends a separate notice that the 68 issuance of the certificate does not override, supersede or otherwise affect municipal 69 authority to regulate the siting of the proposed transmission line. The commission may 70 deny a certificate of public convenience and necessity for a transmission line upon a finding 71 that the transmission line is reasonably likely to adversely affect any transmission and 72 distribution utility or its customers. 30 as enacted by PL 2013, c. 369, Pt. C, §7, is 31 amended to read: 32 nonwires alternatives policies. The 33 commission shall advocate in all relevant venues for the pursuit of least-cost solutions to 34 bulk power system needs on a total cost basis and for all available resources, including 35 nontransmission nonwires alternatives, to be treated comparably in transmission analysis, 36 planning and access to funding. 37 as amended by PL 2019, c. 298, §12, is further 38 amended to read: 39 40 41 A person may not construct any transmission project or subtransmission project 42 without approval from the commission. For the purposes of this section, "transmission 43 project" means any proposed new or upgraded transmission line and its, substation 44 component or associated infrastructure that is capable of operating at less than 69 kilovolts 45 or more. "Subtransmission project" means any proposed new or upgraded transmission 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Page 3 - 131LR1752(01) 46 line, substation component or associated infrastructure that is capable of operating at less 47 than 69 kilovolts and projected to cost in excess of $5,000,000. 3 4 transmission project or subtransmission project must provide the commission with a 5 description of the need for the proposed transmission project or subtransmission project. 6 7 approve or disapprove all or portions of a proposed transmission project or subtransmission 8 project pursuant to subsection 2, the commission shall, for a transmission project or 9 subtransmission project proposed by an investor-owned transmission and distribution 10 utility, consider the results and recommendations of an investigation by the nonwires 11 alternative coordinator conducted in accordance with section 3132‑C. 12 13 nontransmission nonwires alternatives. In order for a transmission project or 14 subtransmission project to be approved, the commission must consider whether the 15 identified need over the effective life of the proposed transmission project or 16 subtransmission project can be reliably and more cost-effectively met using 17 nontransmission nonwires alternatives. In its review and consideration of nontransmission 18 nonwires alternatives, as required by subsection 1‑A, the commission shall give preference 19 to nontransmission nonwires alternatives that have been identified as able to address the 20 identified need for the proposed transmission project or subtransmission project most cost- 21 effectively. When the cost-effectiveness of the identified nontransmission nonwires 22 alternatives are reasonably equal, the commission shall give preference to the alternatives 23 that produce the lowest amount of local air emissions, including greenhouse gas emissions. 24 25 owned and operated by a generator of electricity solely for the purpose of electrically and 26 physically interconnecting the generator to the transmission system of a transmission and 27 distribution utility is not subject to this section. 28 as enacted by PL 2019, c. 298, §13, is 29 amended to read: 30 For the purposes of this section, "small transmission project" means any proposed new 31 or upgraded transmission line and, substation component or associated infrastructure 32 capable of operating at less than 69 kilovolts and projected to cost $5,000,000 or less. For 33 the purposes of this section, a "distribution project" means any proposed new or upgraded 34 distribution line, substation component or associated infrastructure capable of operating at 35 less than 34 kilovolts. 36 as enacted by PL 2019, c. 298, §13, is 37 amended to read: 38 39 subsection 2, the nonwires alternative coordinator shall make recommendations to the 40 investor-owned transmission and distribution utility regarding nonwires alternatives to 41 proposed small transmission projects and distribution projects. The nonwires alternative 42 coordinator and the utility shall attempt to reach a good faith agreement regarding the 43 adoption of nonwires alternatives that are most cost-effective. If agreement is reached, the 44 utility shall pursue the agreed-upon nonwires alternatives. If there is no agreement, the 1 2 Page 4 - 131LR1752(01) 45 utility shall or the Office of the Public Advocate may petition the commission to resolve 46 the dispute. 3 as enacted by PL 2019, c. 298, §13, is 4 amended to read: 5 6 and distribution utility or the Office of the Public Advocate pursuant to subsection 4, the 7 commission shall review the planning study prepared under subsection 1 and the 8 recommendations of the nonwires alternative coordinator under subsection 4. In resolving 9 the dispute, the commission shall give preference to nonwires alternatives that are 10 identified as able to address the identified need for the proposed small transmission project 11 or distribution project and are most cost-effective. Of the identified nonwires alternatives, 12 the commission shall give preference to the lowest-cost nonwires alternatives. When the 13 costs to ratepayers in this State of the identified nonwires alternatives are reasonably equal, 14 the commission shall give preference to the nonwires alternatives that produce the lowest 15 amount of local air emissions, including greenhouse gas emissions. 16 as enacted by PL 2019, c. 298, §14, is 17 amended to read: 18 19 investigation of and make recommendations regarding nonwires alternatives to a wires 20 project under section 3132, 3132‑A or 3132‑B in accordance with this section. The 21 investigation must be conducted in coordination with the Efficiency Maine Trust. For the 22 purposes of this section, "wires project" means a transmission line and associated 23 infrastructure subject to the requirements of section 3132, a transmission project or 24 subtransmission project as defined in section 3132‑A or a small transmission project or 25 distribution project covered by section 3132‑B. 26 as enacted by PL 2019, c. 298, §14, is 27 amended to read: 28 29 requested by the Public Advocate or the Efficiency Maine Trust, subject to enforcement by 30 the commission, to allow the nonwires alternative coordinator, in conjunction with the trust, 31 to carry out investigation and analysis under this section. The trust shall use utility 32 ratepayer usage data to identify cost-effective nonwires alternatives on the customer side 33 of the meter. An investor-owned transmission and distribution utility may request a 34 protective order if necessary to protect the confidentiality of customer data or critical 35 energy infrastructure information provided under this section in accordance with section 36 1311‑A. 37 as enacted by PL 2019, c. 298, §15, is 38 amended to read: 39 When the commission determines a nonwires alternative is appropriate under section 40 3132, 3132‑A or 3132‑B or an investor-owned transmission and distribution utility agrees 41 voluntarily to a nonwires alternative under section 3132‑B, the utility shall procure the 42 nonwires alternative must be competitively procured in accordance with this section. 43 as enacted by PL 2019, c. 298, §15, is 44 amended to read: 1 2 Page 5 - 131LR1752(01) 1 2 the commission shall determine an entity, which may include but is not limited to the 3 investor-owned transmission and distribution utility or a 3rd party, to deliver the nonwires 4 alternative and shall make orders as necessary; except, when a utility voluntarily agrees to 5 a nonwires alternative on the grid side of the meter under section 3132‑B, the utility shall 6 determine the entity to deliver the nonwires alternative. 7 8 This bill makes the following changes to the laws governing electric transmission lines 9 and projects and nonwires alternatives. 10 1. It repeals the definition of "nontransmission alternative" and incorporates aspects 11 of the definition of "nontransmission alternative" into the definition of "nonwires 12 alternative." It includes energy storage as a nonwires alternative in the definition of 13 "nonwires alternative." It changes references to nontransmission alternatives to references 14 to nonwires alternatives. 15 2. It provides that a person may not construct any transmission project or 16 subtransmission project without approval from the Public Utilities Commission. 17 "Transmission project" is defined as any proposed transmission line, substation component 18 or associated infrastructure that is capable of operating at 69 kilovolts or more. 19 "Subtransmission project" is defined as any proposed transmission line, substation 20 component or associated infrastructure capable of operating at less than 69 kilovolts and 21 projected to cost in excess of $5,000,000. 22 3. It allows an investor-owned transmission and distribution utility or the Office of the 23 Public Advocate to petition the Public Utilities Commission to resolve a dispute between 24 the nonwires alternative coordinator and the utility regarding nonwires alternatives to 25 proposed small transmission projects and distribution projects. 26 4. It provides that an investor-owned transmission and distribution utility may request 27 a protective order if necessary to protect the confidentiality of customer data or critical 28 energy infrastructure information provided to the Public Advocate or the Efficiency Maine 29 Trust to allow the nonwires alternative coordinator to carry out certain investigation and 30 analysis. 31 5. It provides that when the Public Utilities Commission determines a nonwires 32 alternative is appropriate in certain cases involving the review of transmission and 33 distribution projects, the nonwires alternative must be competitively procured. 34 6. It removes language that provides that when an investor-owned transmission and 35 distribution utility voluntarily agrees to a nonwires alternative on the grid side of the meter 36 regarding certain small transmission and distribution projects, the utility must determine 37 the entity to deliver the nonwires alternative. 8 9