Sec. 1. 35-A MRSA §3210, sub-§1, as amended by PL 1999, c. 398, Pt. I, §1, is further amended to read:

1. Policy. In order to ensure an adequate and reliable supply of electricity for Maine residents and to encourage economic development opportunities in this State, to reduce greenhouse gas emissions from the State's electricity supply portfolio and to maintain and increase the use of renewable, efficient and indigenous resources, it is the policy of this State to encourage the generation of electricity from renewable and efficient sources and to diversify electricity production on which residents of this State rely in a manner consistent with this section.

Sec. 2. 35-A MRSA §3210, sub-§2, ¶¶B and C, as repealed and replaced by PL 1999, c. 398, Pt. I, §2, are amended to read:

B. "Eligible Tier 1 eligible resource" means a source of electrical generation that:

(1) Generates power that can physically be is scheduled for delivery and delivered to the control region in which the New England Power Pool, or its successor as approved by the Federal Energy Regulatory Commission, has authority over transmission, or to the Maritimes Control Area; and

(2) Is either a tier 1 renewable resource or an efficient resource and does not sell its electrical output to a transmission and distribution utility pursuant to a contract entered into prior to March 1, 2000.

C. "Renewable Tier 1 renewable resource" means a source of electrical generation:

(1) That qualifies as a small power production facility under the Federal Energy Regulatory Commission rules, 18 Code of Federal Regulations, Part 292, Subpart B, as in effect on January 1, 1997; or

(2) Whose total power production capacity does not exceed 100 megawatts and that relies on one or more of the following:

(a) Fuel cells;

(b) Tidal power;