An Act To Enhance Maine's Energy Independence and Security
Maine Legislature, Session 122, LD 2041
Committee Amendment CA_A_H1024 (House)
Amends: 36 MRSA §3203, 35-A MRSA §3212, 8 MRSA §742, 5 MRSA §12004-I, 35-A MRSA §3218

COMMITTEE AMENDMENT "A" to H.P. 1439, L.D. 2041, Bill, "An 
Act To Enhance Maine's Energy Independence and Security" 
Amend the bill by striking out everything after the enacting 
clause and before the sununary and inserting in its place the 
following: 
'PART A 
Sec. A-I. 36 MRSA §3203, sub-§I-A is enacted to read: 
I-A. 
Special biodiesel rate. 
Notwithstanding subsection 1, 
the rate for distillates containing 2~ or more of biodiesel fuel 
by volume is 20¢ per gallon. 
This subsection is repealed 90 days 
after the adjournment of the First Regular Session of the 123rd 
Legislatur§~ • 
Sec. A·2. Study group. 
The Department of the Secretary of 
State, 
Bureau of Motor Vehicles shall convene 
a 
study group 
consisting of the Bureau of Motor Vehicles; Office of Energy 
Independence and Security; the Department of Transportation: and 
the Department of Administrative and Financial Services, Bureau 
of Revenue Services. 
The study group shall consider the revenue 
impacts of a differential tax on biodiesel, the impacts on tax 
administration and compliance and alternatives to a differential 
tax including a refund process. 
By March 15, 2007, the Department of the Secretary of State, 
Bureau 
of 
Motor 
Vehicles 
shall 
report 
the 
findings 
and 
recommendations 
of 
the 
study group, 
including 
any 
necessary 
Page l-LR3152(2) 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT I~" to H. P. 1439, L. D. 2041 
implementing legislation, to the joint standing committee of the 
Legislature having jurisdiction over utilities matters and the 
joint standing committee of the Legislature having jurisdiction 
over transportation matters. 
Either the joint standing committee 
of the Legislature having jurisdiction over utilities matters or 
the 
joint 
standing 
committee 
of 
the 
Legislature 
having 
jurisdiction 
over 
transportation matters, 
after 
consultation 
between 
the 
committees, 
may 
report out 
legislation on 
the 
subject matter of the report to the First Regular Session of the 
123rd Legislature. 
Sec. A-3. Transfer from General Fund to Highway Fund. 
The 
State Controller shall transfer $20,000 from the General Fund 
unappropriated surplus to the Highway Fund unappropriated surplus 
no later than June 30, 2007. 
PARTB 
Sec. B-1. 35-A MRSA §3212, sub-§4-A, as enacted by PL 2003, c. 
665, §2, is repealed. 
Sec. B-2. 35-A MRSA §3212, sub-§§4-B and 4-C are enacted to 
read: 
4-B. Demand response and energy efficiencY_ 
The commission 
may 
incorporate 
cost-effective 
demand 
response 
and 
energy 
efficiency 
into 
the 
supply 
of 
standard-offer 
service. 
The 
commission shall encourage entities based in this State that are 
not otherwise either a standard-offer service provider or its 
affiliate 
to 
participate 
in 
sypplying 
cost-effective 
demand 
response or energy efficiency pursuant to this subsection. 
4-C. 
Authority to establish various contract lengths and 
terms. 
For the purpose of providins over a 
reasonable time 
period the lowest price for standard-offer service to residential 
and small commercial customers, the commission, with respect to 
residential and small commercial standard-offer service, may, in 
addition to 
incorporating cost-effect,ive 
demand 
response 
and 
energy efficiency pursuant to subsection 4-B and to the extent 
authorized in section 3210-C, incorporating the energy portion of 
any contracts entered into pursuant to section 3210-C, establish 
var,ious standard-offer service contract lengths and terms. 
Sec. B-3. Review of authority to establish various contract lengths 
and terms. 
By January 15, 2008, the Public Utilities Commission 
shall report to the joint standing committee of the Legislature 
having jurisdiction over utilities matters on its use of the 
authority granted under the Maine Revised Statutes, Title 35-A., 
section 
3212, 
subsection 
4-C 
to 
establish 
various 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ,,11 .. to H.P. 1439, L.D. 2041 
standard-offer service contract lengths and terms for residential 
and small commercial standard-offer service. 
The joint standing 
committee of the Legislature having jurisdiction over utilities 
matters may report out legislation to the Second Regular Session 
of the 123rd Legislature on the subject matter of Title 35-A, 
section 3212, subsection 4-C. 
Sec. B·4. Demand response programs. 
The Public Utilities 
Commission, pursuant to the Maine Revised Statutes, Title 35-A, 
section 3211-A, 
shall consider developing one or more 
demand 
response programs for medium nonresidential customers. 
PARTC 
Sec. C-l. 35-A MRSA §§3210-C and 3210·D are enacted to read: 
§3210-C. 
Capacity resource adequacy 
1. 
Definitions. 
As 
used 
in this 
section, 
unless 
the 
context 
otherwise 
indicates, 
the 
following 
terms 
have 
the 
following meanings. 
A. 
"Capacity 
resource" 
means 
any 
renewable 
capacity 
resource, 
nonrenewable 
capacity 
resource 
or 
new 
interruptible, demand response or energy efficiency capacity 
resource. 
B. 
"Interruptible, 
demand 
response 
or 
energy efficiency 
capacity 
resource" 
means 
a 
resource 
that 
has 
demand 
response, 
interruptible 
or 
energy 
efficiency 
capacity 
recognized by the commission. 
C. 
"New" 
as applied to 
any capacity resource 
means 
a 
capacity resource that: 
(1) 
Has an in-service date after September 1, 2005; 
(2) 
Was added to an existing facility after September 
1. 2005: 
(3) 
For at least 2 years was not operated or was not 
recognized 
by 
the 
New 
England 
independent 
system 
operator as a capacity resource and, after September 1, 
2005, 
resumed operation or was recognized by the New 
England 
independent 
system 
operator 
as 
a 
capacity 
resource: or 
(4) 
Was refurbished after September 1. 
2005 and is 
operating 
beyond 
its 
previous 
useful 
life 
or 
is 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 1439, L.D. 2041 
employing an alternate technology that significantly 
increases the efficiency of the generation process. 
D. 
"Nonrenewable 
capacity 
resource" 
means 
an 
electric 
generation resource other than a renewable capacity resource. 
E. 
"Renewable 
capacity 
resource" 
means 
an 
renewable 
resource, 
as 
defined 
in 
section 
3210, 
subsection 
t 
paragraph C, except "renewable capacity resource" does not 
include: 
(1) 
A generator fueled by municipal solid waste in 
conjunction with recycling; or 
(2) 
A hydroelectric generator unless it meets all 
state and federal fish passage requirements. 
2. 
Pgliqy. It is the policy of this State; 
A. 
That the share of new renewable capacity resources as a 
percentage of the total capacity resources in this State on 
Decj:!mber 31. 2007 increase by 10% by 2017 and that. to the 
extent 
possible, 
the 
increasj:! 
occur 
in 
uniform 
annual 
increments: 
B. 
To reduce electric prices and price volatility for the 
State's electricity consumers and to reduce greenhouse gas 
emissions from the electricity generation sector; and 
C. 
To develop new capacity resources to reduce demand or 
increase capacity so as to mitigate the effects of any 
regional or fj:!deral capacity resource mandates. 
3. 
COlllllissiop authority. 
Thj:! commission may direct large 
investor-owned transmission and distribution utilities to enter 
into long-term contracts for: 
A. Capacity resources: and 
B. Any available energy associated with capacity resources 
contracted under paragraph A: 
, 
(1) 
To the extent nj:!cessary to fulfill the policy of 
subsection 2, paragraph A: or 
(2) 
If 
the 
commission 
determines 
appropriate 
for 
purposes of supplying standard-offer service pursuant 
to 
section 
3212. 
If 
contracts 
are 
entered 
into 
pursuant to this subparagraph, the contracts must be 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT .~. to H.P. 1439, L.D. 2041 
treated as standard-offer service contracts pursuant to 
section 3212. 
The commission may direct large investor-owned transmission and 
distribution utilities 
to 
enter 
into 
contracts 
under 
this 
subsection only 
as 
agents 
for 
their customers 
and 
only in 
accordance with this section. 
To the greatest extent possible, 
the commission shall develop procedures haying the same legal and 
financial 
effect 
as 
the 
procedures 
used 
for 
standard-offer 
service 
pursuant 
to 
section 
3212 
for 
large 
investor-owned 
transmission and distribution utilities. 
The commission may enter into contracts for interruptible, demand 
response or energy efficiency capacity resources. 
Capacity 
resources 
contracted under this 
subsection may 
not 
exceed the amount necessary to ensure the reliability of the 
electric grid of this State or to lower 
customer costs 
as 
determined by the commission pursuant to rules adopted under 
sybsection 10. 
Unless the commission determines the public interest requires 
otherwise, a capacity resource may not be contracted under this 
subsection unless the commission determines that the capacity 
resource is recognized as 2 c2pacity resource for purposes of any 
regional or fegeral capacity reguirements. 
4. 
Priority of capacity resources. 
In selecting capacity 
resources 
for 
contracting 
pursu2nt 
to 
subsection 
3, 
the 
commission shall apply the following standards. 
A. 
The commission Sh2ll select C2P2city resources that are 
competitive 2nd the lowest price when compared to other 
available offers for 
capacity resources of the 
Same 
or 
simil2r contract gur2tion. 
The 
commission shall consider 
the cost of the capacity and the cost of related energy. The 
commission sh2l1. by rules adopted pursuant to subsection 
10, establish a methodology for calculating 2nd considering 
the cost of related energy for capacity-only offers. 
B. 
Among 
c2P2city 
resources 
meeting 
the 
standard 
in 
par2graph A, 
the 
commission shall choose 
among capaci ty 
resources in the following order of priority: 
(1) 
New 
interruptible, 
dem2nd 
response 
or 
energy 
efficiency c2paCity resources loc2ted in this State; 
(2) 
New renewable capacity resources located in this 
State: 
COMMITTEE AMENDMENT 
COMMITTEE 
5. 
AMENDMENT "~,, to H.P. 1439. L.D. 2041 
(3) 
New capacity resources with no 
greenhouse gases: 
net emission of 
(4) 
New 
nonrenewable capacity resources 
located in 
tbis State. The commission shall give preference to new 
ngnrenewable capacity resources with no net emission of 
greenhouse gases; 
(2) 
Capacity resources that enbance the reliability of 
the electric grid of this State. 
The commission shall 
give 
preference 
to 
capacity resources 
with 
no 
net 
emission of greenhouse gases: and 
(6) 
Other capacity resources. 
C21lt;t~l;;t tgrm. 
A contra!;;t gnt,grgQ 
in!;.Q 
pursuant to 
subs~u~tiQn 
~ may ngt bg fQr 
mQre 
than 1Q 
yga:r§. 
ynlg§s the 
cQmmi§§ign t!nQ§ a 
s;:gntra~t for a 19n9gr :t,grm tQ :bg prudent. 
6. 
Competitive 
solicitation 
process 
and 
contract 
negotiation, 
Fgr 
purpQ§e§ 
of 
sglecting 
PQtential 
capacity 
rgsgyrces 
fgr 
cgntracting 
pyrsyant 
tg 
subsection 
3. 
the 
!;;omrnissign ~hall condyct a !;;ompetitiyg solicitatign no less often 
than eye:ry 3 years if the cQmmission Qe:t,grmings that the likgly 
:bengfit§ to ratgpaygrs rg§ulting frQm any contracts gntergd into 
as a :rgsylt of thg sQlicitation prQs;:gss will gxcgeQ :t,hg likely 
cQs:t,§. 
FgllQwing review of :bids. thg cgmmissign may negotiate 
with gne or more potgntial syppligrs. 
Whgn only ong bid has begn 
offered. the cQmmission shall gnsyrg tha:t, nggo:t,ia:t,!ons are ba§ed 
on full prQjgct cQst Qisclosure by thg potential supplier. 
The 
commission 
shall 
nggQ:t,iate 
contracts 
that 
are 
cOmmgrcially 
rgasgnable and that cQmmi:t, all parties to commgrcially reasonable 
bghayior. 
7. 
Disposition 
of 
resources. 
A 
large 
investor-owned 
transmi§§ion 
and 
di§tribution 
ytility 
shall 
sgll 
capacity 
resoyrces purchased pursyant tQ §ybsec:t,ion 3 or take other action 
rgla:t,iyg to sych capacity resoyrcgs as Qirectgd by the commission. 
B. 
Cost recove~. The cQmmission shall ensurg that a large 
investor-owned transmission and dis:t,:ribytion utility recovers in 
ratgs all costs of contracts entgrgQ into pursyant to subsection 
3. 
including byt not limiteQ to any impacts on the utility's 
cQsts of capital. 
A price differential existing at any time 
during the tgrm of thg contract be:t,ween the cQntract price and 
thg prevailing markg:t, price at which the capacity resource is 
sold my§t be rgflgctgQ in ratgs and may not bg deemed to be 
imprydent. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "~,, to H.P. 1439, L.D. 2041 
9. 
Contract pCU'JIlents. 
Contracts for capacity and related 
energy entered into pursuant to this section must provide that 
payments will be made only after contracted amounts of capacity 
and related energy have been provided. 
10. 
Rules. 
The commission shall adopt rules to implement 
this section. In adopting rules, the commission shall consider 
the 
financial 
implications 
of 
this 
section 
on 
large 
investor-owned transmission 
and distribution utilities. 
Rules 
adopted under this subsection are major substantive rules as 
defined in Title 5, chapter 375, subchapter 2-A. The commission 
may 
not 
enter 
into 
or 
direct 
any 
large 
investor-owned 
transmission and distributiQn utility to enter into any contract 
pursuant to this section until rules are finally adopted under 
this subsection. 
§3210-D. 
Resource plan 
The commission shall adopt by rule a 
long-term plan for 
electric 
resource 
adequacy 
for 
this 
State 
to 
ensure 
grid 
reliability and the provision or availability of electricity to 
consumers at the lowest cost. 
After 
final 
adoption of 
rules 
under 
this 
section, 
the 
commission shall take any necessary action within its authority 
under this Title to support achievement of the objectives of the 
plan. 
Rules adopted under this section are major substantive rules 
as defined in Title 5, chapter 375t subchapter 2-A. 
Sec. C-2. 37-8 MRSA §742, sub-§2, 18, as amended by PL 2001, c. 
353, §5, is further amended to read: 
B. 
Upon the issuance of an energy emergency proclamation 
and after consulting with the Executive Department, State 
Planning Office, the Governor may exercise all the powers 
granted in this chapter, except as specifically limited by 
paragraph C. 
The powers of the Governor include, without 
limitation, the authority to: 
(1) 
Establish 
and 
implement 
programs, 
controls, 
standards, priorities and quotas for the allocation, 
conservation and consumption of energy resources; 
(2) 
Regulate 
the 
hours 
and 
days 
during 
nonresidential 
buildings 
may 
be 
open 
and 
temperatures at which they may be maintained: 
which 
the 
COMMITTEE AMENDMENT 
COMMITTEE 
AMENDMENT .. p. to H.P. 1439. L.D. 2041 
(3) 
Regulate the use of gasoline and diesel-powered 
land vehicles, watercraft and aircraft; 
(4) 
After consulting, when appropriate, with the New 
England governors and upon the recommendations of the 
Ma~Be 
Public 
Utilities 
Commission, 
regulate 
the 
generation, distribution and consumption of electricity; 
(5) 
Establish temporary state and local boards and 
agencies; 
(6) 
Establish and implement programs and agreements 
for the purposes of coordinating the emergency energy 
response 
of 
the 
State 
with 
those 
of 
the 
Federal 
Government and of other states and localities; 
(7) 
Temporarily 
regulations, 
but 
regulations; aBa 
suspend 
not 
in 
truck 
weight 
conflict 
with 
and 
size 
federal 
(8) 
Regulate the storage, distribution and consumption 
of home heating oilT~ 
(9) 
If the energy emergency was caused by a lack of 
electric grid reliab;lity in this State resulting from 
insufficient 
capacity 
resources, 
take 
appropriate 
action, 
in 
consultation with 
the 
Public 
Utilities 
Commission, 
to procure sufficient capacity resources 
including generation capacity and interruptible, demand 
response or energy efficiency capacity resources. 
Sec. C-3. Public Utilities Commission resource plan. 
The Public 
utilities Commission shall adopt the resource plan required under 
the 
Maine 
Revised Statutes, 
Title 
35-A, 
section 
3210-D 
in 
accordance with the following schedule. 
1. Outline and strategy. 
By March 1, 2007, the commission 
shall establish an outline or 
procurement 
strategy for 
the 
resource plan and provide the outline or procurement strategy to 
the 
joint 
standing 
committee 
of 
the 
Legislature 
having 
jurisdiction over utilities matters for its review and comment. 
2. Final resource plan. By March 1, 2008, 
shall 
submit 
to 
the Legislature provisionally 
establishing the resource plan. 
PARTD 
the commission 
adopted 
rules 
Sec. D-l. 5 MRSA §12004-I, sub-§74-A-2 is enacted to read: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT .~ .. to H.P. 1439. L.D. 2041 
74-A-2. 
Maine Energy 
Not 
35-A MRSA 
Public 
Council 
Authorized 
~ 
Utilities 
Sec. D-2. 35-A MRSA §3218 is enacted to read: 
§3218. 
Maine Energy Council 
1. 
COuncil established. 
The Maine Energy Council, referred 
to in this section as "the council," is established to monitor 
and evaluate matters affecting electricity supply and costs to 
consumers in this State and to provide recommendations to the 
Governor, 
the 
Public Utilities 
Commission, 
other 
appropriate 
state agencies and the Legislature regarding these matters. 
The 
council is established pursuant to Title 5, 
section 12004-1, 
subsection 74-A-2. 
2. 
Hftmhership. 
The 
council 
consists 
of 
members. 
Appointing authorities shall seek to ensure representation of all 
areas of the State. 
Members are appointed as follows: 
A. 
Two members of the Senate, appointed by the President of 
the Senate, one of whom must be a member of the political 
party holding the largest number of seats in the Senate and 
one of whom must be a member of the political party holding 
the 2nd-largest number of seats in the Senate: 
B. 
Two members of the House of Representatives, appointed 
by the Speaker of the House of Representatives, one of whom 
must be a member of the political party holding the largest 
number of seats in the House and one of whom must be a 
member of the political party holding the 2nd-largest number 
of seats in the House: 
C. 
The chair of the Public Utili ties Commission or the 
chair's designee: 
p. 
The Public Advocate or the Public Advocate's designee; 
E. 
The 
Commissioner of Environmental Protection or 
the 
commissioner's designee: 
F. 
One member representing the Governor's office, appointed 
by the Governor: and 
G. 
Nine persons appointed by the Governor, including: 
(1) 
One member from the University of Maine System who 
has expertise in energy issues: 
COMMITTEE AMENDMENT 
, 
COMMITTEE AMENDMENT .. p 
. to H.P. 1439, L.D. 2041 
(2) 
One 
member 
representing electricity generators 
with a capacity in excess of 100 megawatts: 
(3) 
One 
member 
representing electricity generators 
that rely on renewable energy resources; 
(4) 
One 
member 
representing 
competitive electricity 
providers; 
(5) 
One 
member 
representing 
residential 
users 
of 
electricity; 
(6) 
One member representing large industrial users of 
electricity; 
(7) One member representing small commercial users of 
electricity; 
(8) One member representing investor-owned transmission 
and distribution utilities; and 
(9) One member representing consumer-owned transmission 
and distribution utilities. 
The Governor shall request a list of names from organizations or 
entities 
identified 
in 
paragraph 
G 
from 
which 
to 
make 
appointments. 
3. 
Chairs. 
The 
first-named 
Senate 
member 
and 
the 
first-named House member serve as cochairs of the council. 
The 
chairs shall jointly call the first meeting of the council. 
At 
the first meeting, the council may select officers from among its 
members. 
The council may select new officers annually. 
4. 
Terms of appointment. 
The terms of appointment are as 
follows. 
A. 
Gubernatorial appointments are for terms of 3 years. 
B. 
Members may serve beyond their designated terms until 
their successors are appointed. 
C. 
Terms of appointment for Legislators coincide with their 
respective legislative terms of office. 
5. Meetings. 
The council may meet as often as necessary. 
A 
meeting may be called by either chair or by any 4 members. 
The 
council shall take and maintain minutes of all meetings. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ,~ " to H,P, 1439, L,D. 2041 
6. 
Staffing. 
The staff of the commission shall, within 
existing resources, provide assistance to the council in carrying 
out its functions and duties. 
7. 
Duties. 
The council shall: 
A. 
Advise the Governor, the commission, other appropriate 
state agencies 
and the Legislature 
on matters affecting 
electricity supply and costs to consumers in this State; and 
B. 
As resources permit, undertake studies, develop findings 
and make recommendations to the Governor and to the joint 
standing committee of the Legislature haying jurisdiction 
over 
utilities matters 
on 
issues 
affecting electricity 
supply or costs to consumers in this State. 
8. Authority. 
As resources permit, the council may: 
A. Conduct public hearings, conferences, workshops and other 
meetings 
to 
obtain 
information 
about 
and 
discuss 
and 
publicize 
the 
needs 
of 
and solutions 
to 
issues 
facing 
electricity consumers in this State; 
B. At the request of the joint standing committee of the 
Legislature 
having 
jurisdiction 
over 
utilities 
matters, 
examine specific issues affecting electricity consumers in 
this State; and 
C. 
Submit legislation to the Legislature to implement any 
reCOmmendations of the council. 
Sec. D-3. Feasibility study. 
The Maine Energy Council shall 
undertake an examination of the feasibility and appropriate means 
of studying the impacts of electric industry restructuring in 
this 
State. 
The 
council 
shall 
report 
its 
recommendations, 
together with any necessary implementing legislation, 
to the 
joint standing committee of the Legislature having jurisdiction 
over utilities matters by January 15, 2007. 
The joint standing 
committee of the Legislature having jurisdiction over utilities 
matters may report out legislation on the subject matter of this 
section to the First Regular Session of the l23rd Legislature.' 
SUMMARY 
This 
amendment 
replaces 
accomplishes the following. 
the 
bill. 
This 
amendment 
1. 
It provides for a one-year reduction in the sales and 
use tax on biofuels. 
It directs the State Controller to transfer 
Page ll-LR3l52(2) 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ·A" to H. P. 14 3 9, L. D. 2041 
$20,000 
from 
the General 
Fund unappropriated surplus to the 
Highway Fund unappropriated surplus no later than June 30, 2007. 
It also directs the Department of the Secretary of State, Bureau 
of Motor Vehicles to convene 
a study group to consider the 
revenue impacts of a differential tax on biodiesel, the impacts 
on 
tax 
administration and 
compliance 
and alternatives 
to 
a 
differential tax including a refund process. 
The joint standing 
committee of the Legislature having jurisdiction over utilities 
matters is authorized to report out legislation on this matter to 
the First Regular Session of the 123rd Legislature. 
2. 
It makes 
various 
changes 
to 
the 
Public 
Utilities 
Commission's 
authority to 
manage 
standard-offer 
service. 
It 
allows the commission to incorporate cost-effective demand-side 
measures 
into 
the 
supply 
of 
standard-offer 
service. 
It 
authorizes the commission to enter into various standard-offer 
service contract lengths and terms for residential and small 
commercial customers and directs the commission to report on its 
use of this authority by January 15, 2008. 
The joint standing 
committee of the Legislature having jurisdiction over utilities 
matters is authorized to report out legislation on this matter to 
the 
Second 
Regular 
Session 
of 
the 
123rd Legislature. 
The 
amendment also directs the commission to consider developing one 
or 
more 
demand 
response 
programs 
for 
medium 
nonresidential 
customers. 
3. 
It establishes state policies to increase new renewable 
capacity resources, 
reduce electric prices and volatility and 
mi tigate the effects of regional or federal capacity resource 
mandates. 
It authorizes 
the Public Utilities 
Commission 
to 
direct large transmission and distribution utilities to enter 
into 
long-term 
contracts 
for 
capacity 
resources 
and, 
under 
certain circumstances, for related energy. 
The commission is 
authorized to enter into long-term contracts for interruptible, 
demand response or energy efficiency capacity resources. 
Only 
those capacity resources that are competitive and lowest priced, 
considering both the cost of the capacity and related energy when 
compared to other available offers, may be contracted under this 
provision. 
It directs the commission by major substantive rule 
to adopt a long-term electric resource adequacy plan to ensure 
grid reliability and the availability of electricity to consumers 
at the lowest price. 
The rules are required to be submitted for 
legislative review by March 1, 
2008. 
It also 
adds 
to the 
Governor's powers when the Governor declares a state of emergency 
relating to an energy shortage by authorizing the Governor to 
take appropriate action to secure capacity resources. 
4. 
It establishes the Maine Energy 
evaluate 
matters 
affecting electricity 
consumers in this State and to provide 
Council to monitor and 
supply 
and 
costs 
to 
recommendations to the 
COMMITTEE AMENDMENT 
.. . 
COMMITTEE AMENDMENT .~ .. to H.P. "39, L.D. 2041 
Governor, the Public Utilities Commission, other agencies and the 
Legislature on these matters. 
It also specifically directs the 
council 
to 
undertake 
an 
examination of 
the 
feasibility 
and 
appropriate means of studying the impacts of electric industry 
restructuring in this State, and to report its recommendations, 
together with 
any necessary implementing legislation, 
to the 
joint standing committee of the Legislature having jurisdiction 
over utilities matters by January 15, 2007. 
The joint standing 
committee of the Legislature having jurisdiction over utilities 
matters is authorized to report out legislation on this matter to 
the First Regular Session of the 123rd Legislature. 
FISCAL :\on: REQURED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 04112/06 .:tP'ac:.. 
LD 2041 
LR3152(02) 
An Act To Enhance Maine's Energy Independence and Security 
Fiscal Note for Bill as Amended by Committee Amendment ,~ " 
Committee: Utilities and Energy 
'H 
Fiscal Note Required: Yes 
Fiscal Note 
Projections 
Projections 
2005-06 
2006-07 
2007-08 
2008-09 
Net Cost (Savings) 
General Fund 
Highway Fund 
Revenue 
Highway Fund 
Transfers 
General Fund 
Highway Fund 
Legislative Study 
$0 
$0 
$0 
$0 
$0 
Current Costs - Legislative Study 
$20,000 
($92) 
($19,908) 
($20,000) 
$20,000 
$0 
$8,114 
($8,114) 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
The projected costs to fund the ongoing general operating expenses for four legislators to serve as members of the 
Maine Energy Council are $1,680 annually beginning in fiscal year 2006-07. The Legislature's budget includes 
$20,000 in fiscal year 2006-07 for legislative studies and other legislative responsibilities. Whether the amount is 
sufficient to fund all legislative requests will depend on the number of requests approved by the Legislative Council 
and the Legislature. 
Fiscal Detail and Notes 
This legislation will reduce Highway Fund revenue by an estimated $19,908 in fiscal year 2006-07 as a result of the 
change in the special fuel tax rate. This is offset by a $20,000 transfer from General Fund unappropriated surplus to 
the Highway Fund by June 30, 2007. 
The Public Utilities Commission estimates that the additional tasks resulting from this legislation will require the 
services of one full-time analyst position and potentially $100,000 annually in consulting services. The Public 
Utilities Commission can absorb these additional costs utilizing existing budgeted resources. 
The Bureau of Motor Vehicles within the Department of the Secretary of State will be able to convene a required 
study group within existing budgeted resources. The Department of Transportation, the Office of Energy 
Independence and Security and Maine Revenue Services will be able to participate in the study group within existing 
budgeted resources. 
LR3152(2) - Fiscal Note - Page I of I