APPROVED CHAPTER
JUNE 22, 2021 327
BY GOVERNOR PUBLIC LAW
STATE OF MAINE
_____
IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-ONE
_____
S.P. 142 - L.D. 336
An Act To Encourage Research To Support the Maine Offshore Wind
Industry
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 35-A MRSA §3210-H is enacted to read:
§3210-H. Floating offshore wind research array; project labor agreements
1. Definitions. As used in this section, unless the context otherwise indicates, the
following terms have the following meanings.
A. "Floating offshore wind research array project" or "research array" means a project
undertaken by an entity to develop a floating offshore wind energy system for the
purpose of conducting research on such systems pursuant to 30 Code of Federal
Regulations, Part 585 and is located seaward of territorial waters.
B. "Labor organization" means an organization of any kind, or an agency or employee
representation committee or plan, in which employees participate and that exists for
the purpose, in whole or in part, of dealing with employers concerning grievances,
labor disputes, wages, rates of pay, hours of employment or conditions of work.
C. "Project labor agreement" means a prehire collective bargaining agreement with
one or more labor organizations that establishes the terms and conditions of
employment for a specific construction project or portion of a construction project,
wherever such construction occurs, and is an agreement described in 29 United States
Code, Section 158(f).
2. Project labor agreements. When requiring the negotiation of, or directing an
investor-owned transmission and distribution utility to enter into, a long-term contract
pursuant to section 3210-C or any other provision of law with an entity for capacity, energy
or renewable energy credits associated with the development of a floating offshore wind
research array project, or obligating funds pursuant to such a contract, the commission shall
require the use of a project labor agreement, to be negotiated and executed by the entity
seeking the long-term contract in accordance with this section.
A. The project labor agreement must be negotiated in good faith and executed prior to
the effective date of a long-term contract for a research array.
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B. A project labor agreement reached pursuant to this section must:
(1) Bind all contractors and subcontractors to the terms of the agreement through
the inclusion of appropriate provisions in all relevant solicitation and contract
documents;
(2) Provide for the invitation of all contractors and subcontractors to bid on
contracts without regard to whether the employees of the contractor or
subcontractor are members of a labor organization or parties to a collective
bargaining agreement;
(3) Contain guarantees against strikes, lockouts and similar disruptions;
(4) Contain terms that are consistent with orders issued by the commission;
(5) Set forth mutually binding procedures for resolving labor disputes arising
during the term of the project labor agreement;
(6) Provide other mechanisms for labor-management cooperation on matters of
mutual interest and concern, including productivity, quality of work, safety and
health; and
(7) Fully conform to all relevant state and federal statutes, rules and regulations.
C. Nothing in this section may be construed to:
(1) Require the commission to require a project labor agreement on projects or in
connection with contracts not governed by this section;
(2) Preclude the use of a project labor agreement in circumstances not covered by
this section;
(3) Require contractors or subcontractors to enter into a project labor agreement
with any particular labor organization;
(4) Impair or otherwise affect authority granted by law to the commission; or
(5) Prohibit in a project labor agreement the reasonable use of key employees by
contractors and subcontractors who are not members of a labor organization or
parties to a collective bargaining agreement.
D. Notwithstanding any provision of law to the contrary, agreements and contracts
entered into pursuant to this section are not subject to the competitive bid requirements
in Title 5, section 1825-B.
E. This section must be implemented consistent with applicable law. This section does
not create any right or benefit, substantive or procedural, enforceable at law or in equity
by any party against the State, its departments, agencies or entities or its officers,
employees or agents.
Sec. 2. Long-term contract in the public interest; coordination with state
policy. The Legislature finds that a long-term contract for a term of no less than 20 years
between an investor-owned transmission and distribution utility and New England Aqua
Ventus, LLC for capacity, energy and renewable energy credits generated from a floating
offshore wind research array to be located in the Gulf of Maine with a capacity up to 144
megawatts effectuates the policies, goals and mandates in the Maine Revised Statutes, Title
35-A, section 3202, subsection 1 and section 3404 and Article 6, Sections 1.8 and 1.9 of
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the Maine Aqua Ventus power purchase agreement approved by the Public Utilities
Commission and is in the public interest and in furtherance of the following:
1. Meeting the requirements of Title 35-A, section 3210 and chapter 34-A;
2. Achieving the wind energy goals contained in Title 35-A, chapter 34;
3. Achieving the greenhouse gas emissions reduction levels established in Title 38,
section 576-A;
4. Implementing the recommendations of the State's climate action plan, developed
pursuant to Title 38, section 577;
5. State energy policy with due consideration of the energy equity context of these
energy policies, including, in particular, the economic circumstances and opportunities of
Maine's socially vulnerable counties as highlighted in the February 2021 report of the
Governor's Energy Office, State of Maine Renewable Energy Goals Market Assessment;
6. The Maine Offshore Wind Initiative overseen by the Governor's Energy Office;
7. The State's decision to seek a federal Department of the Interior, Bureau of Ocean
Energy Management lease of federal waters to construct and operate a research array to
scientifically determine means to protect the Gulf of Maine ecosystem, critical species and
habitats and traditional marine users from imprudent offshore wind development;
8. State laws that seek to make the State an international hub for floating offshore wind
development and fabrication, including but not limited to: Public Law 2007, chapter 661;
Public Law 2009, chapter 270; Public Law 2009, chapter 615; and Resolve 2019, chapter
87; and
9. A memorandum of understanding between the State and New England Aqua Ventus,
LLC requiring New England Aqua Ventus, LLC to seek a long-term contract from the
Public Utilities Commission, to assist the State, upon request, in preparing and securing
approval of a lease of federal waters in the Gulf of Maine and in complying with resulting
lease obligations and to seek a power purchase agreement for a floating offshore wind
research array, as defined in the Title 35-A, section 3210-H, through the commission.
Sec. 3. Commission action. Within in 9 months of receiving a petition from New
England Aqua Ventus, LLC or its designated affiliate for a long-term contract for capacity,
energy or renewable energy credits to be generated from a floating offshore wind research
array project, as defined in the Maine Revised Statutes, Title 35-A, section 3210-H and
referred to in this section as “the research array,” with a capacity of up to 144 megawatts
designed, permitted and operated by New England Aqua Ventus, LLC in accordance with
the terms of a lease in federal waters from the federal Department of the Interior, Bureau
of Ocean Energy Management, the Public Utilities Commission shall order the negotiation
of, and direct an investor-owned transmission and distribution utility to enter into, a long-
term contract for at least 20 years with New England Aqua Ventus, LLC or its designated
affiliate if the commission determines the contract furthers the objectives of this Act and is
in the public interest.
1. In ordering the negotiation of the contract, the commission shall:
A. Utilize the process for the negotiated purchase of capacity, energy and renewable
energy credits under Title 35-A, section 3210-C except that the commission shall invite
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the Office of the Public Advocate, the Governor's Energy Office and transmission and
distribution utilities to participate in negotiations;
B. Employ, at the expense of New England Aqua Ventus, LLC or the developer, any
expert consultants necessary to assist in negotiations. Expert consultants hired
pursuant to this subsection must be employed by the United States Department of
Energy, National Renewable Energy Laboratory or a similar entity expert in world-
wide cost estimation for floating offshore wind commercialization and with specific
knowledge of the VolturnUS foundation design, and the commission shall use that
advice; and
C. Direct the parties to determine the lowest reasonable cost to ratepayers, that is
sufficient to enable the financing, construction and operation of the research array by
New England Aqua Ventus, LLC or its affiliate, in a manner that is consistent with the
lease issued by the federal Department of the Interior, Bureau of Ocean Energy
Management and any final agreement between New England Aqua Ventus, LLC or its
affiliate and the State.
2. If the commission directs the parties to enter into a long-term contract, the
commission shall require that the contract requires New England Aqua Ventus, LLC or its
affiliate to:
A. Maintain an office and project leadership staff in the State;
B. Use port facilities designated by the State for the organization, fabrication, launch
and maintenance of the research array;
C. Operate, at the direction of the State, an open platform for research on the prudent
development of offshore wind energy generation in the Gulf of Maine;
D. Establish and operate an integrated manufacturing and assembly facility in the State
to manufacture required VolturnUS or similar hulls for the research array;
E. Make commercially reasonable efforts to attract design and manufacturing facilities
to the State for other floating offshore wind energy generation project components;
F. Make commercially reasonable efforts to employ in-state design, manufacturing
and maintenance firms and workers in an amount that is at least equal to 50% of
contracts for those services; and
G. Construct the research array pursuant to a project labor agreement in accordance
with Title 35-A, section 3210-H that is negotiated with the developer and a qualified
labor organization to promote efficiency and economy in state procurement of research
on renewable energy development, including the development of offshore wind energy
generation seaward of territorial waters.
3. If the commission directs the parties to enter into a long-term contract, the
commission shall ensure any pricing structure adopted for capacity, energy or renewable
energy credits:
A. Represents the lowest reasonable cost to ratepayers, while ensuring the pricing
structure is sufficient to enable the financing, construction and operation of the research
array by New England Aqua Ventus, LLC or its affiliate, in a manner that is consistent
with the lease issued by the federal Department of the Interior, Bureau of Ocean Energy
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Management and any final agreement between New England Aqua Ventus, LLC or its
affiliate and the State;
B. Was reached with the advice of expert consultants employed in accordance with
subsection 1, paragraph B;
C. Supports prompt commercial pursuit of the research array lease, development of
research plans and initiation of development and construction actions;
D. Recognizes and accommodates the commercial challenges in long-term cost
estimation for large marine energy infrastructure and permits power purchase
agreement capacity, energy and renewable energy credit prices to be adjusted based on
changing costs prior to the final investment decision by New England Aqua Ventus,
LLC or its affiliate and the commission, employing state of the art marine commercial
cost estimation and control mechanisms such as indexing and inflation adjustment
mechanisms; and
E. Considers, for levelized cost of energy comparison purposes, the needed and
expected role of floating offshore wind energy generation in accomplishing the State's
transition to beneficial electrification and the role of the research array in advancing
that transition.
In determining the appropriate duration for a long-term contract entered into pursuant to
this section, the commission shall consider what duration is adequate to allow the research
array to be designed, permitted, constructed and operated in conformance with the terms
of the lease of federal waters issued by the federal Department of the Interior, Bureau of
Ocean Energy Management.
The State and New England Aqua Ventus, LLC shall negotiate in good faith and make best
efforts to enter into a final operating agreement before a lease is issued by the federal
Department of the Interior, Bureau of Ocean Energy Management. If the State and New
England Aqua Ventus, LLC fail to enter into a final operating agreement before a lease is
issued by the Bureau of Ocean Energy Management, nothing in this section precludes the
State through the Governor’s Energy Office from designating an entity other than New
England Aqua Ventus, LLC to negotiate a long-term contract with an investor-owned
transmission and distribution utility for capacity, energy and renewable energy credits
generated from a research array as directed by the commission.
Sec. 4. Study of infrastructure related to offshore wind energy generation.
The Public Utilities Commission, in consultation with the Governor's Energy Office and
the Office of the Public Advocate and with input from the public and interested
stakeholders, by February 1, 2022, shall submit one or more reports to the Joint Standing
Committee on Energy, Utilities and Technology. The report or reports must include
information regarding options for the technology, location and creation of transmission
infrastructure related to the development of offshore wind energy generation in the Gulf of
Maine and transmission solutions proposed or built in other states and countries. The report
or reports must include ways to protect species, habitats, the environment and traditional
marine users from imprudent development while encouraging efficient transmission
investment. The report or reports must recommend public and private transmission
financing and ownership structures and include any necessary legislation to achieve the
State's climate policy objectives. The committee may report out legislation to the Second
Regular Session of the 130th Legislature based on the report or reports.
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