- Background
The Maine Public Utilities Commission (Commission) is seeking proposals for the development and operation of a qualifying facility that produces clean hydrogen (CH Facility).1 To be a qualifying CH Facility, a facility must meet the requirements of Section 1(E) of Public Law 2023, chapter 554, codified at 35-A M.R.S. § 123(1)(E).
During its 2024 session, the Maine Legislature enacted an Act to Establish a Clean Hydrogen Pilot Program, P.L. 2023, chapter 554 (Act), codified in Chapter 1 of Title 35-A of Maine’s Revised Statutes. Pursuant to the Act, the Commission, in collaboration with the Maine Department of Energy Resources (DOER)2 and the Department of Environmental Protection (DEP), is required to establish a pilot program that will allow the Commission to select a proposal for a qualifying CH Facility that meets the requirements of the Act. The Act permits the Commission to select only one proposal for a qualifying CH Facility.
If the Commission selects a proposal for a qualifying CH Facility, the Commission shall direct the transmission and distribution (T&D) utility in whose territory the CH Facility is located to negotiate a special rate contract with that qualifying CH Facility which the Commission may approve in accordance with 35-A M.R.S. § 703(3-A) . The Commission may approve a special rate contract between the selected qualifying CH Facility and a T&D utility if the Commission determines that the contract for service is necessary to make the development of the qualifying CH Facility viable and cost-effective. The special rate contract between the qualifying CH Facility and the T&D may be for no more than 20 megawatts of electricity.
Proposals in response to this RFP must be submitted by 11:59 PM on [DATE], 2026.
Additional information about this RFP, including a copy of the Act, is available at:
[link to webpage]
2. Qualifications and Evaluation Criteria
2.1 Qualifying Project
To participate in this RFP, a CH Facility must meet the eligibility requirements contained in the Act. Specifically, a CH Facility must: (1) produce clean hydrogen as defined in the
1 The Act defines “clean hydrogen" as “hydrogen produced through a process that results in a lifecycle greenhouse gas emissions rate of not greater than 0.45 kilograms of carbon dioxide or carbon dioxide equivalents per kilogram of hydrogen generated, as determined by the commission in accordance with the applicable requirements of the federal act and IRS production tax credit regulations.” 35- A M.R.S. § 123(1)(A). 2 Formerly the Governor’s Energy Office. Act; (2) be located in the State of Maine; (3) meet the applicable requirements for a federal clean hydrogen production tax credit under the Inflation Reduction Act of 2022, Public Law 117-169, 136 Stat. 1818 Inflation Reduction Act of 2022, Public Law 117-169, 136 Stat. 1818, and Internal Revenue Service production tax credit regulations; and (4) have a peak electricity demand of no more than 20 megawatts.
2.2 Evaluation Standards and Considerations
The Commission, in consultation with the DOER and DEP, will evaluate proposals based upon the requirements stated in the Act and this RFP. Bid proposals that meet the requirements for a qualified CH Facility and which the Commission finds to be in the public interest will be evaluated based on the degree to which the proposal:
A. Accounts for and is designed to advance the renewable energy and climate policies and goals of the State;
B. Minimizes potential negative environmental and community effects;
C. Maximizes air quality, health and workforce benefits;
D. Encourages high standards of safety performance;
E. Ensures that all persons engaged in the construction, alteration, or repair of the qualifying CH Facility, including all employees, contractors and subcontractors, are paid wages that are not less than the prevailing hourly wage for work of a similar character in the locality in which the qualifying facility is located as most recently determined by the Department of Labor, Bureau of Labor Standards in accordance with 26 M.R.S. § 1308 and in compliance with applicable requirements of the federal act and IRS production tax credit regulations.
If more than one proposal for the development and operation of a qualifying CH Facility meets the requirements of the Act and is in the public interest, the Commission shall give preference to the proposal that provides the greatest benefit to ratepayers and is likely to result in the greatest reduction in greenhouse gas emissions.
The Commission may accept or reject any proposal, or it may reject all proposals, based on its assessment of whether a proposal meets the requirements of the Act and this RFP and satisfies applicable statutory policies and objectives.
3. Proposal Requirements
3.1 Firm and Final Bids; Supplemental Proposal Information
Proposals submitted are firm and final bids and will be binding on the bidder. Changes to proposals will not be accepted after the submission of bids except to the extent requested by the Commission. The Commission reserves the right to ask bidders to provide additional information related to any aspect of a proposal, or to clarify, correct, modify, or amend a proposal.