An Act To Protect Maine's Energy Sovereignty through the Designation of Energy Infrastructure Corridors and Energy Plan Development
Maine Legislature, Session 123, LD 2255
Committee: Utilities and Energy
Sponsors: BARTLETT, BLISS, HOBBINS, MILLS, BERRY, BLANCHARD, FITTS, FLETCHER, PINGREE, RINES
Amends: 35-A MRSA §122, 35-A MRSA §3210-C, 2 MRSA §9, 5 MRSA §3327

Legislative Document 
No. 2255 
S.P.885 
March 11, 2008 
An Act To Protect Maine's Energy Sovereignty through the 
Designation of Energy Infrastructure Corridors and Energy Plan 
Development 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
JOY J. O'BRIEN 
Secretary of the Senate 
Presented by Senator BARTLETT of Cumberland. (GOVERNOR'S BILL) 
Cosponsored by Representative BLISS of South Portland and Senators: HOBBINS of York, 
MILLS of Somerset, Representatives: BERRY of Bowdoinham, BLANCHARD of Old Town, 
FITTS of Pittsfield, FLETCHER of Winslow, PINGREE of North Haven, RINES of 
Wiscasset. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
PART A 
Sec. A-I. 35-A MRSA §122 is enacted to read: 
§122. Energy infrastructure corridors 
1. Commission designation. The commission may designate corridors within the 
State for the purposes of siting energy infrastructure if the commission finds that energy 
infrastructure development within the corridor is reasonably likely to be in the public 
interest and consistent with environmental and land use laws and rules. The commission 
shall consider the establishment of energy infrastructure corridors in a public proceeding 
in which interested persons are provided an opportunity to be heard. The commission 
may commence the public proceeding on its own initiative or upon petition by an 
interested person. 
2. Enerl!\' infrastructure. For purposes of this section, "energy infrastructure" 
includes electric transmission and distribution facilities, natural gas pipelines and other 
energy transport pipelines or conduits and associated appurtenances. 
3. 
Consultation. 
Prior to designating an energy infrastructure corridor under 
subsection 1, the commission shall consult with the Department of Environmental 
Protection, the appropriate natural resource protection agencies and the municipalities in 
which the corridor would be located. 
4. 
Use of corridors; certificates. A person may petition the commission for a 
certificate of public convenience and necessity for authorization to develop and use 
energy infrastructure within a designated energy infrastructure corridor under subsection 
1. The commission shall issue a certificate of public convenience and necessity if it finds 
that the development and use of energy infrastructure within a designated energy 
infrastructure corridor is in the public interest, complies with the State's environmental 
laws as determined by a review conducted pursuant to subsection 5 and is reasonably 
likely to: 
A. Minimize utility rates or increase the reliability of utility service; 
B. Have the net effect of reducing the release of greenhouse gases; or 
C. Enhance economic development within the State. 
A person may not engage in development or construction of energy infrastructure within 
an energy infrastructure corridor unless the person has obtained a certificate from the 
commission. 
The commission shall conduct a public hearing on a petition for a certificate of public 
convenience and necessity. The commission shall issue an order within 6 months after 
the filing of a completed petition. The commission may approve or disapprove all or 
portions of a proposed project within a designated energy infrastructure corridor and shall 
make such orders regarding the project's character, size, installation and maintenance as 
are necessary, having regard for any increased costs caused by the orders. 
Page I - 123LR3411(OI)-1 
5. 
Environmental review. 
Notwithstanding any other provlSlon of law, the 
environmental review of projects proposed to be developed within an energy 
infrastructure corridor designated under subsection 1 must be conducted as specified in 
this subsection. The Department of Environmental Protection shall conduct a review of a 
proposed energy infrastructure project and shall provide certification to the commission 
as to whether the proposed project complies with the State's environmental laws. 
The 
environmental certificate must be issued in lieu of other environmental certificates and 
licenses. An applicant for a certificate shall provide the department with all necessary 
studies and documentation that the department requires to determine compliance with the 
State's environmental laws and reimburse the department for all costs of regulatory 
review including expenses for outside peer review or other consultants or experts 
assisting the department in its review. The certification of the department is a rebuttable 
presumption of compliance with the State's environmental laws in the commission's 
review of a petition for a certificate of public convenience and necessity pursuant to 
subsection 4 and must be implemented by the commission by incorporation in the 
commission's certificate. The department has jurisdiction to enforce the environmental 
certification and compliance with the State's environmental laws. The environmental 
certificate may require additional submissions, studies and conditional approvals. 
6. Zoning ordinances. A person may petition the commission for an exemption 
from municipal zoning ordinances or other land use ordinances. The commission shall 
provide notice and the opportunity for the affected municipality to be heard after which 
the commission may wholly or partially exempt a project proposed to be developed 
within a designated energy infrastructure corridor under subsection 1 from a zoning 
ordinance if it determines that the exemption is reasonably necessary and in the public 
interest. 
7. Eminent domain. The right of eminent domain is governed by this subsection. 
A. Except on land where a utility satisfying the conditions set forth in paragraph B 
has an easement, fee or other right in real property: 
(1) A person that receives a certificate of public convenience and necessity to 
develop energy infrastructure within an energy infrastructure corridor under this 
section has the right of eminent domain to the same extent that transmission and 
distribution utilities have the right of eminent domain to locate transmission lines 
pursuant to section 3136; and 
(2) The commission may aCquire interests in real property within a corridor for 
the ultimate benefit of electricity consumers, notwithstanding any transmission 
and distribution utility ownership of the real property. For the purposes of the 
exercise of eminent domain authorized by this subparagraph, the commission is 
both a person and the State. 
B. A person or the commission may not exercise the right of eminent domain with 
respect to a utility's real property within that utility's service territory if the utility 
agrees that it will not: 
(1) 
Assert or seek federal preemption to frustrate the commission's action 
resulting from a proceeding with respect to participation in a regional 
transmission organization; and 
(2) Undertake any major transmission project in this State without commission 
approval. 
8. 
Rules. 
The COmmISSIOn may by rule adopt standards and procedures to 
implement this section. Rules adopted pursuant to this subsection are routine technical 
rules as defined in Title 5, chapter 375, subchapter 2-A. 
PARTB 
Sec. B-1. 35-A MRSA §3210-C, suh-§3, as amended by PL 2007, c. 293, §2, is 
further amended to read: 
3. 
Commission authority. 
The COmmISSIOn may direct laFge 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 necessary to fulfill the policy of subsection 2, paragraph A; or 
(2) 
If the commission determines appropriate for purposes of supplying or 
lowering the cost of standard-offer service or otherwise lowering the cost of 
electricity for the ratepayers in the State. Available energy contracted pursuant to 
this subparagraph may be sold into the wholesale electricity market in 
conjunction with solicitations for standard-offer supply bids. 
The commission may direct laFge 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. For purposes of this section, long-term contracts include 
contracts for differences or other financial instruments intended to buffer ratepayers in the 
State from potential negative impacts from transmission development. To the greatest 
extent possible, the commission shall develop procedures having the same legal and 
financial effect as the procedures used for standard-offer service pursuant to section 3212 
for laFge investor-owned transmission and distribution utilities. 
The commission may enter into contracts for interruptible, demand response or energy 
efficiency capacity resources and contracts for differences or other financial instruments 
intended to buffer ratepayers in the State from potential negative impacts from 
transmission development. These contracts are not subject to the rules of the State 
Purchasing Agent. 
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 subsection 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 a capacity resource for purposes of any 
regional or federal capacity requirements. 
Sec. B-2. 35-A MRS A §3210-C, sub-§7, as amended by PL 2007, c. 293, §4, is 
further amended to read: 
7. 
Disposition of resources. 
A large An investor-owned transmISSIon and 
distribution utility shall sell capacity resources and energy purchased pursuant to 
subsection 3 or take other action relative to such capacity resources and energy as 
directed by the commission. 
Sec. B-3. 35-A MRS A §3210-C, sub-§8, as enacted by PL 2005, c. 677, Pt. C, 
§ 1, is amended to read: 
8. Cost recovery. The commission shall ensure that a large an investor-owned 
transmission and distribution utility recovers in rates all costs of contracts entered into 
pursuant to subsection 3, including but not limited to any impacts on the utility's costs of 
capital. A price differential existing at any time during the term of the contract between 
the contract price and the prevailing market price at which the capacity resource is sold 
must be reflected in rates and may not be deemed to be imprudent. 
Sec. B-4. 35-A MRSA §3210-C, sub-§10, as enacted by PL 2005, c. 677, Pt. C, 
§ 1, is amended to read: 
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 
distribution utility to enter into any contract pursuant to this section until rules are finally 
adopted under this subsection. 
PART C 
Sec. C-l. 2 MRSA §9 is enacted to read: 
§9. Governor's Office of Energy Independence and Security 
1. Office established. The Governor's Office of Energy Independence and Security, 
referred to in this section as "the office," is established in the Executive Department to 
carry out responsibilities of the State relating to energy resources, planning and 
development. The office is directly responsible to the Governor. 
2. Director. The director of the office shall: 
A. Chair the Energy Resources Council; 
B. 
In collaboration with the Energy Resources Council and other relevant state 
agencies, coordinate state energy policy; 
C. Coordinate the dissemination of energy information to the public and the media; 
D. Prepare a comprehensive state energy plan to be submitted to the Governor and 
Legislature by January 15,2009 and updated every 2 years thereafter; 
E. In collaboration with other relevant state agencies, private industry and nonprofit 
organizations, collect and analyze energy data that effects energy costs and 
availability in this State from all available sources; 
F. Provide technical assistance and information to the Governor and the Legislature 
regarding the State's short-range and long-range energy needs and the resources to 
meet those needs; and 
G. Seek funds and partnerships with public and private sources to support the goals 
of the office. 
Sec. C-2. 5 MRSA §3327, sub-§l, as amended by PL 2005, c. 425, §2, is further 
amended to read: 
1. 
Council established; membership. 
In order to facilitate more effective 
interagency coordination of the State's activities regarding energy issues, the Energy 
Resources Council, referred to in this chapter as the "council," is established. The chair 
of the council is the Director of the State Planning Office Governor's Office of Energy 
Independence and Security who is responsible for ensuring that the council carries out its 
responsibilities under this chapter. The membership of the council is as follmvs also 
includes the following: 
A. 
The Director of the State Planning Office; 
B. 
The chair of the Public Utilities Commission; 
C. 
The Commissioner of Environmental Protection; 
D. 
The Public Advocate; 
E. 
The Commissioner of Transportation; 
F. 
The Commissioner of Administrative and Financial Services; 
G. 
The Commissioner of Economic and Community Development or the 
commissioner's designee; 
H. 
The Director of the Maine State Housing Authority; and 
1. 
The Commissioner of Conservation. 
Sec. C-3. 5 MRSA §3327, sub-§3, as amended by PL 2003, c. 487, § 1, is further 
amended to read: 
3. Quarterly meetings; staff; funding. The council shall meet at least quarterly. 
The council shall prepare a work program for each year establishing priorities among its 
efforts. The State Planning Office, within the Executive Department, Governor's Office 
of Energy Independence and Security shall provide staff support. 
A. 
A state agency applying for funds under the State Energy Program of the United 
States Department of Energy pursuant to 10 Code of Federal Regulations, Part 420 
shall, as directed by the council, apply for funds to support the work of the council 
and its staff. 
B. 
To the extent funds available pursuant to paragraph A are insufficient to fund 
fully staff support for the council, each member of the council shall enter into an 
agreement with the State Planning Office Governor's Office of Energy Independence 
and Security to share in the cost of providing the staff support. 
C. 
The council may seek, and the Public Utilities Commission may provide, funds 
to the council pursuant to Title 35-A, section 3211-A, subsection 5-A. 
SUMMARY 
Part A of this bill establishes procedures to allow the Public Utilities Commission to 
II 
designate corridors for the purpose of siting energy infrastructure, including electric 
transmission and distribution facilities and natural gas pipelines. 
Part B of this bill also expands the commission's authority over all investor-owned 
transmission and distribution utilities, not just those utilities that serve more than 50,000 
IS 
retail customers. 
Part C of this bill establishes in statute the Governor's Office of Energy Independence 
and Security and sets forth the policy and purpose of that office. Part C also specifies the 
duties and responsibilities of the director including replacing the Director of the State 
Planning Office, within the Executive Department, as the chair of the Energy Resources 
Council. The director of the office reports directly to the Governor.