An Act to Authorize a General Fund Bond Issue to Enable Low-income and Moderate-income Families to Conserve Energy in Their Homes
Maine Legislature, Session 121, LD 0115
Committee: Business, Research and Economic Development
Sponsors: BLISS, BARSTOW, CLARK, CUMMINGS, EDER, THOMPSON, HALL, STRIMLING

Legislative Document 
No. 115 
H.P.123 
House of Representatives, January 21, 2003 
An Act to Authorize a General Fund Bond Issue to Enable Low-
income and Moderate-income Families to Conserve Energy in Their 
Homes 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
Presented by Representative BLISS of South Portland. 
'/Jf~ 1I7.1llQ£~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representatives: BARSTOW of Gorham, CLARK of Millinocket, 
CUMMINGS of Portland, EDER of Portland, McLAUGHLIN of Cape Elizabeth, 
THOMPSON of China, Senators: HALL of Lincoln, STRIMLING of Cumberland. 
Printed on recycled paper 
Preamble. 
Two 
thirds of both Houses 
deeming it necessary in accordance with 
Maine, Article IX, Section 14 to authorize 
on behalf of the State of Maine to provide 
this Act, 
of the Legislature 
the Constitution of 
the issuance of bonds 
funds as described in 
Be it enacted by the People of the State of Maine as follows: 
PART A 
Sec. A-I. 30-A MRSA c. 201, sub-c. 6-A is enacted to read: 
SUBCHAPTER 6-A 
ENERGY CONSERVATION GRANT AND LOAN PROGRAM 
§4841. 
Energy Conservation Grant and Loan Program 
1. 
Qperator of program. 
The Energy Conservation Grant and 
Loan Program. referred to in this subchapter as the "program." is 
established under the Maine State Housing Authority. referred to 
in this subchapter 
as 
the "authority." 
The authority shall 
operate 
the 
program 
and. 
in 
consultation with 
the 
Finance 
Authority 
of 
Maine, 
develop 
guidelines 
for 
determining 
eligibility. feasibility. terms. conditions and security for the 
loans and grants available under the program. 
2. 
Grants and loans authorized. 
The authority may make 
grants or loans to finance acquisition and installation of energy 
conservation improvements. identified by certified home energy 
audits. 
in 
the 
primary 
residences 
of 
low-income 
and 
moderate-income households. 
A homeowner 
who 
receives 
a 
loan 
under the program and sells the home within 2 years of the 
completion of the conservation improvements shall repay the loan 
in full within one year of the sale of the home. 
3. 
Eligibility. 
Homeowners and renters may participate in 
the program if they meet the eligibility requirements of this 
subsection. 
A household with an income at or below 100°-& of the 
poverty level as defined in Title 22. section 5321 is eligible 
for a grant of up to $2.500. 
A household with an income at or 
below 80% of the median income of the county or metropolitan 
statistical area in which the household is located is eligible 
for a 
low interest loan of up to $5.000. 
To be covered by a 
grant 
or 
loan, 
energy 
conservation 
improvements 
must 
be 
identified by a certified home energy audit as having a payback 
period of less than 7 years. 
Sec. A-2. 
Effective date. 
This 
Part 
takes 
effect 
upon 
ratification by the voters of the referendum as provided in Part 
B of this Act. 
PART B 
Sec. B-1. Authorization of bonds. 
The Treasurer of State is 
authorized, under the direction of the Governor, to issue bonds 
in the name and on behalf of the State in an amount not exceeding 
$8,000,000 to raise funds for the conservation grant and loan 
program as authorized by this Part. 
The bonds are a pledge of 
the full faith and credit of the State. 
The bonds may not run 
for a period longer than 10 years from the date of the original 
issue of the bonds. 
At the discretion of the Treasurer of State, 
wi th the approval of the Governor, 
any issuance of bonds may 
contain a eall feature. 
Sec. B-2. Records of bonds issued kept by Treasurer of State. 
The 
Treasurer of State shall keep an account of each bond showing the 
number of the bond, the name of the successful bidder to whom 
sold, the amount received for the bond, the date of sale and the 
date when payable. 
Sec. B-3. 
Sale; how negotiated; proceeds appropriated. 
The 
Treasurer of State may 
negotiate the sale of the bonds 
by 
direction of the Governor, but no bond may be loaned, pledged or 
hypothecated on behalf of the State. 
The proceeds of the sale of 
the bonds, which must be held by the Treasurer of State and paid 
by the Treasurer of State upon warrants drawn by the State 
Controller, are appropriated solely for the purposes set forth in 
this Part. 
Any unencumbered balances remaining at the completion 
of the project in this Part lapse to the debt service account 
established for the retirement of these bonds. 
Sec. B-4. Interest and debt retirement. 
The Treasurer of State 
shall pay interest due or accruing on any bonds issued under this 
Part and all sums coming due for payment of bonds at maturity. 
Sec. B-5. Disbursement of bond proceeds. 
The proceeds of the 
bonds 
must 
be 
expended 
as set out in this Part under 
the 
direction and supervision of the Maine State Housing Authority. 
Sec. B-6. Allocations from General Fund bond issue. 
The proceeds 
of the sale of the bonds must be expended to finance acquisition 
and installation of energy conservation improvements identified 
by certified home energy audits in the primary residences of 
low-income and moderate-income households. 
Sec. B·7. Contingent upon ratification of bond issue. 
Sections 1 
to 6 of this Part do not become effective unless the people of 
the State ratify the issuance of the bonds as set forth in this 
Part. 
Sec. B·8. Appropriation balances at year·end. 
At the end of each 
fiscal year, all unencumbered appropriation balances representing 
state money carry forward. 
Bond proceeds that have not been 
expended within 10 years after the date of the sale of the bonds 
lapse to General Fund debt service. 
Sec. B·9. Bonds authorized but not issued. 
Any bonds authorized 
but not issued, or for which bond anticipation notes are not 
issued 
within 
years 
of 
ratification 
of 
this 
Part, 
are 
deauthorized and may not be issued, except that the Legislature 
may, within 2 years after the expiration of that 5-year period, 
extend the period for issuing any remaining unissued bonds or 
bond anticipation notes for an additional amount of time not to 
exceed 5 years. 
Sec. B·I0. Referendum for ratification; submission at statewide 
election; form of question; effective date. 
This Part must be submitted 
to the legal voters of the State at a statewide election held on 
the Tuesday following the first Monday of November 
following 
passage of this Part. 
The municipal officers of this State shall 
notify the inhabitants of their respective cities, 
towns 
and 
plantations to meet, in the manner prescribed by law for holding 
a statewide election, to vote on the acceptance or rejection of 
this Part by voting on the following question: 
"Do 
you 
favor 
an 
$8,000,000 
bond 
issue 
for 
an 
energy 
conservation grant and loan program to provide low-income 
and moderate-income households with financial assistance to 
acquire and install energy conservation improvements?" 
The legal voters of each city, town and plantation shall 
vote by ballot on this question and designate their choice by a 
cross or check mark placed within a corresponding square below 
the word "Yes" or "No." 
The ballots must be received, sorted, 
counted and declared in open ward, town and plantation meetings 
and returns made to the Secretary of State in the same manner as 
votes for members of the LegiSlature. 
The Governor shall review 
the returns and, if a majority of the legal votes are cast in 
favor 
of this Part, 
the 
Governor shall proclaim the result 
without delay, and this Part becomes effective 30 days after the 
date of the proclamation. 
The Secretary of State shall prepare and furnish to each 
city, town and plantation all ballots, returns and copies of this 
Part necessary to carry out the purposes of this referendum. 
SUMMARY 
This bill establishes the Energy Conservation Grant and Loan 
Program for low-income and moderate-income households to purchase 
and install energy conservation improvements. 
The Maine State 
Housing Authority will operate the program in consultation with 
the Finance Authority of Maine. 
The program will be funded by an 
$8,000,000 bond issue. 
The law creating the program takes effect 
upon voter approval of the referendum required under Part B of 
this bill.