An Act To Create a Sustainable Energy Trust Fund
Maine Legislature, Session 121, LD 0805
Committee: Utilities and Energy
Sponsors: HALL
Amends: 5 MRSA §3305, 5 MRSA §3327

12lst MAINE LEGISLATURE 
Legislative Document 
No. 805 
S.P.284 
In Senate, February 20, 2003 
An Act To Create a Sustainable Energy Trust Fund 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by Senator HALL of Lincoln. 
Printed on recycled paper 
JOY J. O'BRIEN 
Secretary of the Senate 
Be it enacted by the People of the State of Maine as follows: 
Sec 1. 5 MRSA §3305, sub-§I-A is enacted to read: 
I-A. 
Sustainable energy development program. 
The office 
shall approve demonstration community projects to be funded by 
the Finance Authority of Maine pursuant to Title 10, 
section 
1100-Z. 
Sec. 2. 5 MRSA §3327, sub-§2. '1flE and F, as enacted by PL 200L 
c. 630, §1, are amended to read: 
E. 
Study specific energy 
significance 
in 
order 
policies; aBa 
1ssues and problems of state-level 
to 
develop 
sound, 
coordinated 
F. 
Seek cooperation from federal 
over 
energy matters 
to 
ensure 
projects serve the best interests 
agencies with jurisdiction 
that 
their 
programs 
and 
of the StateTi and 
Sec.3. 5 MRSA §3327, sub-§2, ~G is enacted to read: 
G. 
Provide advice and guidance to the Finance Authority of 
Maine 
in the 
use 
of 
the Sustainable 
Energy Trust 
Fund 
pursuant 
to 
Title 
10, 
section 
1100-Z 
and 
establish 
priorities for use of the funds. 
Sec. 4. 10 MRSA c. 110~ sub-c. 12 is enacted to read: 
SUBCHAPTER 12 
SUSTAINABLE ENERGY TRUST FUND 
§llOO-Z. 
Sustainable Energy Trust Fund 
1. 
Established. 
The 
Sustainable 
Energy 
Trust 
Fund, 
referred to in this section as "the fund," is a nonlapsing fund 
established under the jurisdiction of the authority. 
Money in 
the fund not currently needed to meet the obligations of the 
authority as provided in this section may be invested in such a 
manner as permitted by law. 
2. 
Sources of money. 
The following money must be paid into 
the fund: 
A. 
All funds collected by the Public Utili ties Commission 
pursuant to Title 35-A, section 3210, subsection 7i 
B. Subject to any pledge, contract or other obligation, all 
interest, dividends or other pecuniary gains from investment 
of money from the fundi 
C. Subject to any pledge, contract or other obligation, any 
money that the authority receives in repayment of advances 
from the fund; and 
D. Any other money available to the authority and directed 
by law or by the authority to be paid into the fund. 
3. Application of fund. 
The fund may be applied to provide 
loans or other financial assistance, including grants, to support 
sustainable energy projects in accordance with this subsection 
and subsection 4. 
The authority may pledge or transfer and 
deposit money from the fund as security for and apply the fund to 
pay the principal, interest and other amounts due on insured 
loans. 
The 
authority 
may 
provide 
loans 
or 
other 
financial 
assistance, 
including 
grants, 
to 
support 
sustainable 
energy 
projects when the authority determines that: 
A. 
In the case of a 
loan, 
the applicant demonstrates 
a 
reasonable likelihood that the applicant will be able to 
repay the loan; 
B. In the case of a grant, the project is likely to produce 
substantial societal, 
environmental or electric ratepayer 
benefits; 
C. The project is technologically feasible; and 
D. The project will stimulate demand for or the production 
of sustainable, renewable or clean energy technologies. 
At least 759-0 
of the fund must be applied in a manner that i Q 
consistent with priorities established by the Energy Resources 
Council 
pursuant 
to 
Title 
5, 
section 
3327, 
subsection 
2, 
paragraph G. 
At least 209-0 of the fund must be applied to fund 
projects described in subsection 4, paragraph E. Up to 5% of the 
fund may be used for administrative expenses of the authority in 
administering this section, of the Energy Resources Council ln 
meeting its responsibilities pursuant to Title 5, section 3327, 
subsection 2, paragraph G and of the Executive Department, State 
Planning Office in meeting its responsibilities pursuant to Title 
5, section 3305, subsection I-A. 
4. 
Sustainable 
energy 
projects. 
The 
authority, 
in 
consultation with the Energy Resources Council established under 
4Ci 
Title 5, section 3327, shall adopt rules governing eligibility, 
project feasibility and terms and conditions for loans or other 
financial 
assistance, 
including 
grant3, 
under 
this 
section. 
Sustainable 
energy 
projects 
eligible 
for 
financial 
support 
pursuant to this section may include: 
A. 
Ini tiati ves 
to 
promote 
sustainable industry clusters 
but 
not 
limited 
to, 
metal, 
facilitiesj 
or 
support 
energy-intensive 
or developments, 
including, 
glass 
or 
fiber 
recycling 
B. 
Market-development initiatives that 
promot~ or support 
sustainable, 
renewable 
or 
clean 
energy 
technologies, 
including, but not limited to, solar, wind or hydrogen fuel 
cell generation cooperatives and other evolving technologies; 
C. 
Demonstration projects that promote 
or 
support clean 
transportation alternatives, including, but not limited to, 
demonstration hydrogen refueling stations and bike paths; 
D. 
Sustainable, 
renewable 
or clean energy research 
and 
development projects at the University of Maine System, the 
Maine Maritime Academy, the Maine Technical College System 
or private colleges in this State; 
E. 
Demonstration 
community 
projects 
approved 
by 
the 
Executive 
Department, 
State 
Planning Office 
pursuant 
to 
Title 
5, 
3305, 
subsection 
I-A 
that 
use 
sustainable, 
renewable or clean energy technologies and are conducted by 
Maine-based nonprofit organizations that qualify under the 
federal 
Internal 
Revenue 
Code, 
Section 
(c) (3) , 
consumer-owned 
electric 
cooperatives, 
community-based 
nonprofit organizations and community action programs; and 
F. 
Other 
projects 
determined 
by 
the 
authority, 
in 
consul tat ion with the Energy Resources Council, to support 
or 
promote 
the 
development of sustainable, 
renewable 
or 
clean energy. 
Rules adopted pursuant to this subsection are routine technical 
rules as defined in Title 5, chapter 375, subchapter 2-A. 
5. 
Accounts within fund. 
The authority may divide the fund 
into separate accounts as it determines necessary or convenient 
for carrying out this section. 
Sec. 5. 35·A MRSA §3210. sub·§5. as amended by PL 1999, c· 
372, §1, is repealed. 
Sec. 6. 35·A MRSA §3210. sub.§6, as enacted by PL 1999, c. 
372, §2, is repealed. 
Sec. 7. 35·A MRSA §3210. sub-§7 is enacted to read: 
1. 
Sustainable 
Energy 
Trust 
Fundi 
assessment. 
The 
commission shall annually assess transmission and distribution 
utilities to collect funds for deposit in the Sustainable Energy 
Trust Fund, established in Title 10, section 1100-Z. 
The amount 
of the assessment must be as follows: 
A. In 2004 and 2005, .05 cent per kilowatt-hour; 
B. In 2006, .075 cent per kilowatt-hour: and 
C. In 2007 and thereafter, .1 cent per kilowatt-hour. 
Sec. 8. 
Transfer of money from Renewable Resource Fund to 
Sustainable Energy Trust Fund. 
The 
Executive Department, 
State 
Planning 
Office 
shall 
transfer 
all 
funds 
in 
the 
Renewable 
Resource Fund, created by the Maine Revised Statutes, Title 35-A, 
section 3210, subsection 6, to the Sustainable Energy Trust Fund 
established under Title 10, section 1100-Z. 
SUMMARY 
This bill does the following: 
1. 
Establishes the Sustainable Energy Trust Fund to provide 
loans or other financial assistance to support sustainable energy 
projects; 
2. 
Directs the Finance Authority of Maine, with the advice 
and guidance of the Energy Resources Council, 
to adopt rules 
governing 
eligibility, 
project 
feasibility 
and 
terms 
and 
conditions for the granting of financial assistance from 
the 
trust fund; 
3. 
Directs 
the 
Public 
transmission and distribution 
deposit in the trust fund; 
Utilities 
utilities 
Commission 
to collect 
to 
assess 
funds 
for 
4. 
Directs that at least 75°b of the trust fund must be 
spent on projects in accordance with priorities established by 
the Energy Resources Council and at least 20 Qc of the funds be 
used to support demonstration community projects approved by the 
Executive Department, State Planning Office that use sustainable, 
renewable or clean energy technologies; 
S. 
Permits up to SOb of the trust fund to be used to cover 
administrative expenses; and 
6. 
Eliminates the Renewable Resource Fund and transfers all 
its money into the Sustainable Energy Trust Fund.