An Act To Promote Municipal Energy Conservation
Maine Legislature, Session 123, LD 0645
Committee Amendment CA_A_H45 (House)
Amends: 30-A MRSA §5953-C

COMMITTEE AMENDMENT "A " 
to H.P. 494, L.D. 645, Bill, "An Act To 
Promote Municipal Energy Conservation" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec.!. 30-A MRSA §5953-C, as corrected by RR 1993, c. 2, §27, is amended to 
read: 
§5953-C. 
Loans for energy efficiency improvements in municipal and school 
buildings 
This section establishes a program to promote energy efficiency and indoor air 
quality in municipal and school buildings. 
1. Efficiency Partners Program. The bank shall establish the Efficiency Partners 
Program, referred to in this section as "the program," designed to reduce energy costs in 
municipal and school buildings and to create jobs by financing energy audits and cost-
effective improvements that accomplish energy efficiency while maintaining healthful 
indoor air quality. The bank shall issue a request for proposals for energy audits of 
municipal and school buildings and for energy savings that could be achieved through 
cost-effective improvements to heating and cooling systems, windows, insulation, 
lighting and equipment in municipal and school buildings. Identification of cost-effective 
improvements to achieve energy savings under the program must be based on a 
comprehensive energy audit that has been performed within the previous 5 years by a 
professional engineer licensed in this State. The aHait An energy audit that is financed 
under the program or is the basis for cost-effective energy efficiency improvements 
financed under the program must address compliance with the el:lrreflt versiofl of 
ASHRAE Stanaartl 62, VeHtilatiofl for Aeeeptable Iflaoor Air Ql:Iality, aevelopea b;y the 
Amerieafl Society of Heatiflg, Refrigeratiofl afla Air COflaitiofliflg Eflgifleers model 
building energy code adopted by the Public Utilities Commission pursuant to Title 35-A, 
section 121. 
COMMITTEE AMENDMENT 
tr' 
~>"w 
COMMITTEE AMENDMENT" A 
.. to H.P. 494, L.D. 645 
2. Access to the program. Municipalities and school administrative units may have 
access to the Efficienc~r Partners Program program regardless of whether the municipality 
or school administrative distriet unit utilizes a loan pursuant to this section to finance tfte 
an energy audit or cost-effective energy efficiency improvements. 
3. 
Proposals; contracts. The bank shall solicit proposals from energy service 
companies and individual vendors of energy service products. Notwithstanding any 
provision of the law regarding bidding requirements, for improvements accomplished 
pursuant to this section the bank shall contract with an energy service company or 
companies or vendor or vendors to provide energy services in municipal and school 
buildings and schools under the program. 
Whenever the bid proposals received are 
substantially equivalent, the bank shall in the contract process select an in-state energy 
service company or vendor whose primary place of business is within this State. For 
public school projects, bid proposals for energy savings projects efficiency improvements 
must include plans and specifications that are adequate to permit review by the agencies 
listed under Title 20-A, section 15903, subsection 3 and that bear the stamp of a MaiRe 
registered licensed professional engineer or licensed architect. The agencies listed in 
Title 20-A, section 15903, subsection 3 shall review the plans and specifications and 
approve or disapprove them within a reasonable time period. 
4. 
Loan; loan agreements. 
Loans from the bank for energy efficiency 
improvements must be structured to ensure to the greatest extent possible that the cost 
savings achieved by the energy efficiency improvements are sufficient to cover the loan 
and to achieve a net positive cash flow as early as practical. The rate of interest charged 
for tfte loans made through the program authori2ed in this section for energy efficiency 
improvements or energy audits must be below the currently available rate of interest 
charged on commercial loans of equivalent term and use. 
S. Energy Payment Equalization Fund. The bank shall establish a fund called the 
Energy Payment Equalization Fund. To the extent that the fund has assets available to it 
through funding by federal, state or local governments, or grants, gifts, donations or 
payments from any other source, money in the fund may be applied to loans made to 
municipalities in the Efficiency Partners Program program if achieved energy savings are 
not sufficient to offset the debt service payments on a loan made through the program. 
This fund may include deposits made by energy service companies or vendors to 
guarantee their commitment to achieve energy savings sufficient to offset debt service 
payments but may not include any other donations or payments from vendors or 
interested parties. The fund may be used to provide general interest rate reductions or 
principal reductions on any loan or group of loans made under the program for energy 
audits or for energy efficiency improvements regardless of energy cost savings that may 
be achieved through the use of the proceeds of the loans or loan. 
6. Report to the Legislature. Beginning in 2008, the bank shall report annually by 
March 1 st to the joint standing committee of the Legislature having jurisdiction over 
utilities and energy matters regarding the program. The report must document program 
activity during the prior 12 months, including, but not limited to, contracts made with 
energy service companies or vendors, loans made to municipalities or school 
administrative units, energy audits conducted and energy efficiency improvements 
implemented. ' 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "R " 
to H.P. 494, L.D. 645 
SUMMARY 
This amendment replaces the bill. The amendment modifies the existing Efficiency 
Partners Program to incorporate financing for energy audits. Under current law, the 
program is authorized to provide financing for cost-effective energy efficiency 
improvements to achieve energy cost savings in municipal and school buildings. The 
amendment also requires that an energy audit conducted under the program address 
compliance with the model building energy code adopted by the Public Utilities 
Commission instead of the standards for indoor air quality developed by the American 
Society of Heating, Refrigeration and Air Conditioning Engineers. The amendment adds 
provisions to the Efficiency Partners Program law to require the Maine Municipal Bond 
Bank to report annually on the program to the joint standing committee of the Legislature 
having jurisdiction over utilities and energy matters. 
The amendment also makes 
technical changes to improve consistency and clarity in statutory language. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Approved: 03/24/07 p/ac::.. 
LD645 
LR 1760(02) 
An Act To Promote Municipal Energy Conservation 
Fiscal Note for Bill as Amended by Committee Amendment '4' 
Committee: Utilities and Energy 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Maine Municipal Bond Bank 
This legislation expands the existing Efficiency Partners Program administered by the Maine Municipal Bond Bank 
(MMBB) to include loans for energy audits. The program is currently statutorily authorized to provide loans througb 
the MMBB for energy efficiency improvements in municipal and school buildings pursuant to 30-A MRSA§5953-C 
The program has not been active and has no loans outstanding as of this date. This proposed program expansion to 
allow loans for energy audits will result in no cost to the State of Maine or the General Fund. The MMBB can absorb 
the costs associated with meeting the annual report requirement to the Joint Standing Committee on Utilities and 
Energy. 
LR1760(02) - Fiscal Note - Page 1 of 1