An Act To Encourage Cogeneration
Maine Legislature, Session 123, LD 1030
Committee: Utilities and Energy
Sponsors: BARTLETT, BLISS, BROMLEY, BRYANT, HOBBINS, BABBIDGE, BRAUTIGAM, FITTS, FLETCHER
Amends: 10 MRSA §963-A

Legislative Document 
No. 1030 
S.P.347 
March 6, 2007 
An Act To Encourage Cogeneration 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by Senator BARTLETT of Cumberland. 
Cosponsored by Representative BLISS of South Portland and 
JOY 1. O'BRIEN 
Secretary of the Senate 
Senators: BROMLEY of Cumberland, BRYANT of Oxford, HOBBINS of York, 
Representatives: BABBIDGE of Kennebunk, BRAUTIGAM of Falmouth, FITTS of Pittsfield, 
FLETCHER of Winslow. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 10 MRSA §963-A, sub-§5-D is enacted to read: 
5-D. Co~eneration facility. "Cogeneration facility" means a facility that generates 
electricity and steam or other useful forms of energy that are used for commercial, 
industrial, heating or cooling purposes. 
Sec.2. 10 MRSA §963-A, sub-§5-E is enacted to read: 
5-E. Cogeneration project. "Cogeneration project" means a project to develop, 
construct, expand or modernize a cogeneration facility. 
Sec.3. 10 MRSA c. 110, sub-c. 12 is enacted to read: 
SUBCHAPTER 12 
COGENERATION REVOLVING LOAN PROGRAM 
§UOO-Z. Co~eneration revolving loan program 
1. Pro~ram established. The Cogeneration Revolving Loan Program, referred to in 
this subchapter as "the program," is established to provide loans for cogeneration 
projects. The authority shall administer the program. 
2. Fund established; sources. The Cogeneration Revolving Loan Fund, referred to 
in this subchapter as "the fund," is established as a revolving fund, into which must be 
deposited all amounts appropriated or allocated to the program, interest earnings on 
investment of fund balances, any amounts repaid to the program by loan recipients, 
including interest, penalties and other fees and charges related to loans from the fund, and 
funds from any other source. Amounts in the fund must be used by the authority for 
purposes authorized in this section. Money in the fund not needed to meet current 
obligations of the program may be invested in such a manner as is provided by law. 
3. Revolvin~ fund. The fund is a non lapsing, revolving fund account. At the end of 
each fiscal year, all unencumbered balances in the fund account may be carried forward 
to be used for the purposes of the program. All money in the fund must be continuously 
applied by the authority to carry out this section. 
4. 
EIi~ibility; loan application. 
A person or municipality undertaking a 
cogeneration project is eligible to apply for a loan from the fund to finance all or part of 
the cogeneration project. 
For the purposes of this subsection, "person" means a 
corporation, partnership, limited partnership, limited liability company, limited liability 
partnership, association, trust, estate or any other legal entity or natural person. The 
authority shall prescribe an application form or procedure that must be used to apply for a 
loan under this section. The application must include any information that the authority 
determines necessary for the purpose of implementing this section. 
Page I -123LR1337({)1)-1 
5. Uses of fund. The fund may be used for direct loans to finance all or part of a 
cogeneration project when the authority determines that: 
A. The cogeneration facility is designed to use renewable resources for no less than 
60% of its total energy input. 
For the purposes of this subsection, "renewable 
resources" has the same meaning as in Title 35-A, section 3303, subsection 8; 
B. 
The applicant has secured all permits, licenses and approvals necessary to 
construct the cogeneration facility to be financed by the loan; 
C. The applicant has insufficient access to funding for the project from other public 
and private sources; 
D. The applicant has committed all reasonably available resources to the project, 
I I 
obtained financial commitments from other sources of financing and demonstrated a 
reasonable likelihood that the loan can be repaid; and 
E. The amount and terms of the loan are reasonable to provide an incentive to the 
applicant to undertake the project, which may include a below-market interest rate. 
IS 
Loans made under this section must be evidenced by and made in accordance with the 
terms and conditions specified in a loan agreement to be executed by the authority. 
6. Rules. The authority shall adopt rules to implement this section. The authority 
shall consult with the Public Utilities Commission in developing the rules. Rules adopted 
pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, 
subchapter 2-A. 
7. Annual report. The authority shall report to the joint standing committee of the 
Legislature having jurisdiction over utilities and energy matters by December 31 st of 
each year on the program. 
SUMMARY 
This bill establishes a revolving loan program administered by the Finance Authority 
of Maine to provide loans for the development, construction, expansion and 
modernization of cogeneration facilities. Under the program, direct loans may be given 
to finance all or part of a cogeneration project if the facility is designed to use renewable 
resources for its energy input and the project meets additional criteria regarding permits 
and approvals, financing and terms of the loan. The bill requires the Finance Authority of 
I 
Maine to consult with the Public Utilities Commission in developing rules to implement 
the program and requires the authority to report annually on the program to the joint 
standing committee of the Legislature having jurisdiction over utilities and energy 
matters.