In a significant move towards a more sustainable future, the 132nd Maine Legislature has passed Legislative Document No. 1868, titled “An Act to Advance a Clean Energy Economy by Updating Renewable and Clean Resource Procurement Laws.” The bill was signed into law by Governor Janet Mills on June 20, 2025, and aims to further accelerate Maine’s transition to a clean energy economy.

Stronger Renewable and Clean Energy Requirements

Amongst other provisions, the law resets ambitious targets for renewable and clean energy. By 2040, 90% of all retail electricity sales in Maine must come from renewable resources, and the remaining 10% from a new class of resources called clean resources.

The law increases the Class IA minimum compliance requirements beyond 2030 by an additional 1% per year through 2040. Previously, the percentage of Class IA required was capped at 40% in 2030 and was to remain at 40% each year thereafter. With the increased percentages from 2030 through 2040, the Class IA requirement increases to 50% in 2040 and it remains at 50% for each year thereafter.

Introduction of Class III (Clean Resource) Category

The newly created clean resource or Class III resource is a source of electricity generation that can physically deliver power to the New England Power Pool control region or the Maritimes Control Area. It includes Class I or Class IA resources, nuclear or hydroelectric generators (that comply with all applicable state and federal fish passage requirements), or other low emission/low environmental impact generators approved by the governor’s energy office. The new Class III resources will be producing Clean Energy Credits (CECs) that retail energy suppliers will be required to purchase for RPS compliance within the state.

Compliance for the new Class III category starts at 1% in 2031 and increases by 1% per year through 2040 where the percentage will be capped at 10% and remain at 10% for each year after 2040. The pricing for these new RECs are still unknown, but there is language in the bill that does cap the Alternative Compliance Payments at $50/MWh.

Exemptions and Opportunities for Buyers

Importantly, there is an exemption clause that applies specifically to the compliance of the new Class III REC category. Electric supply contracts executed and in effect before September 30th, 2025 will receive an exemption from complying with the new Class III REC requirements for the duration of the executed contract term. This provision was included in order to allow suppliers time to finalize deals already in progress after the law was signed.

Anytime there is an exemption clause, there can be a significant cost saving opportunity for alert buyers who understand the potential cost impacts. As the deadline for the exemption approaches, buyers are encouraged to contact their Freedom Energy sales representatives for guidance on contract structures that may exempt them from the new Class III REC compliance requirements.

Meet the Writer