An Act To Protect the Integrity of the State's Carbon Dioxide Budget Trading Program and Auction Process and To Provide Allocations to the Energy and Carbon Savings Trust Fund
Maine Legislature, Session 124, LD 0276
Committee Amendment CA_A_S42 (Senate)
Amends: 35-A MRSA §10008, 38 MRSA §580-A, 38 MRSA §580-B

COMMITTEE AMENDMENT "tt "to S.P. 93, L.D. 276, Bill, "An Act To Protect 
the Integrity of the State's Carbon Dioxide Budget Trading Program and Auction Process 
and To Provide Allocations to the Energy and Carbon Savings Trust Fund" 
Amend the bill by striking out everything after the title and before the summary and 
inseliing the following: 
'Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, the Maine State Legislature enacted the Regional Greenhouse Gas 
Initiative Act of 2007, or RGGI, which is designed to stabilize and then reduce 
anthropogenic emissions of carbon dioxide, a greenhouse gas, from large electrical 
generating sources using a cap-and-trade mechanism; and 
Whereas, the cap-and-trade mechanism uses an auction platform to sell state 
allocations of carbon dioxide allowances that will generate revenue for the State for 
purposes of electrical and fossil fuel conservation; and 
Whereas, RGGI established the Energy and Carbon Savings Trust to oversee the 
expenditure of auction revenue on cost-effective electrical and fossil fuel conservation 
measures, investments and arrangements that will provide the citizens of the State with 
measurable economic and greenhouse gas reduction benefits; and 
Whereas, RGGI also established the Energy and Carbon Savings Trust Fund, for the 
Energy and Carbon Savings Trust, to receive and expend revenue money associated with 
the auctioned sale of RGGI allowances but did not provide for allocation for receipt and 
expenditure of the auction revenues within the Energy and Carbon Savings Trust Fund; 
and 
Whel'eas, the current statutory limit on the administrative costs of the Energy and 
Carbon Savings Trust may not enable the trust to adequately perform certain functions 
necessary to ensure that the expenditures from the Energy and Carbon Savings Trust 
Fund meet the statutory obligations of the trust; and 
Page I - 124LROS2S(02)-1 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to S.P. 93, L.D. 276 
Whereas, the participating RGGI states conducted an auction in September 2008 
and an auction in December 2008, and auctions are expected to continue at quarterly 
intervals in the future; and 
Whereas, this much-needed revenue could be used to decrease electrical and 
heating energy costs beginning this winter for the State's citizens; and 
Whereas, the Governor has declared that emergency conditions exist this winter for 
many citizens due to the unprecedented increases in petroleum product prices; and 
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the State's allocations of carbon dioxide allowances at prices that are reflective of a 
competitive market that is free from collusion and market manipulation among the 
auction participants; and 
Whereas, the release of RGGI information specific to anyone account holder, 
including all auction bids and awards, carbon dioxide allowance and carbon dioxide 
offset allowance holdings and transactions or any applications and financial security 
information or summaries thereof, has the potential to increase collusive or market 
manipulative behavior in RGGI auctions; and 
Whereas, there is an immediate need to ensure future RGGI auctions will have 
robust competitive market conditions; and 
Whereas, Public Law 2007, chapter 317, section 15 established a system under 
which the proceeds from the sale of carbon dioxide allowances are returned to electric 
customers as direct credits on their bills when the price of the allowances in the regional 
allowance market rises above a statutorily established price ceiling; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 35-A MRSA §10008, sub-§5, as amended by PL 2007, c. 695, Pt. A, §42, 
is further amended to read: 
5. Ceiling on energy efficiency spending; rebates to electric ratepayers; rules. 
There is established a ceiling on energy efficiency spending from the trust equal to $5 per 
carbon dioxide allowance. Until that price ceiling is adjusted or removed, only the first $5 
of each carbon dioxide allowance sold and deposited in the trust fund may be awarded to 
or directed to qualified projects for purposes of energy efficiency improvements. While 
the ceiling is in place, revenue received by the trust from an allowance value above $5 
must be transferred to the commission for use by the commission pursuant to sections 301 
and 1322 for rebates to electric ratepayers calculated on a per-kilowatt-hour basis. The 
commission shall adopt rules to implement this subsection. The rules must establish a 
system under which proceeds from the sale of carbon dioxide allowances may be returned 
to electric ratepayers as direct credits on their bills at times of heightened price pressure 
in regional carbon dioxide allowance markets due to an extraordinary circumstance. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A " 
to S.P. 93, L.D. 276 
Rules adopted under this subsection are routine technical rules as defined in Title 5, 
chapter 375, subchapter 2-A. 
Sec. 2. 35-A MRSA §10008, sub-§6, ';fG, as amended by PL 2007, c. 608, §2, is 
repealed and the following enacted in its place: 
G. No more than $800,000 of trust fund receipts in anyone year may be used for the 
costs of administering the trust pursuant to this section. The limit on administrative 
costs established in this paragraph does not apply to the following costs that may be 
funded by the trust: 
---------9-------t1-rCostsortneDepaftmenCof-DITviFOnme11tal-Protectiutlfor-participating=in-the------···-·----
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regional organization as defined in Title 38, section 580-A, subsection 20 and for 
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administering the allowance auction under Title 38, chapter 3-B; and 
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(2) Costs of the Attorney General for activities pertaining to the tracking and 
monitoring of allowance trading activity and managing and evaluating the trust's 
funding of conservation programs. 
Sec. 3. 38 MRSA §580-A, sub-§l-A is enacted to read: 
I-A. Account. "Account" means a general account or a compliance account. 
Sec. 4. 
MRS A §580-A, sub-§4, as enacted by PL 2007, c. 317, § 17, is 
amended to read: 
4. 
Carbon dioxide budget unit compliance account or compliance account. 
"Carbon dioxide budget unit compliance account" or "compliance account" means the 
account established by the department for a carbon dioxide budget unit wherein carbon 
dimdde budget units deposit carbon dioxide emissions allowances and carbon dioxide 
offset allowances are held and available for compliance purposes under the carbon 
dioxide cap-and-trade program. 
Sec. 5. 38 MRSA §580-A, sub-§6-A is enacted to read: 
6-A. 
Carbon dioxide general account or general account. 
"Carbon dioxide 
general account" or "general account" means the account established by the department 
upon the request of an entity wherein the entity may hold carbon dioxide allowances and 
carbon dioxide offset allowances. The general account is separate from the compliance 
account. 
Sec. 6. 38 MRSA §580-A, sub-§18-A is enacted to read: 
I8-A. 
Proprietary information. "Proprietary information" means production, 
commercial or financial information claimed as confidential on documents required to be 
submitted to participate in an auction, the disclosure of which would impair the 
competitive position of the account holder and would make available information that is 
not otherwise available. 
Sec. 7. 
MRSA §580-B, sub-§7, as enacted by PL 2007, c. 317, § 17, is 
amended to read: 
7. 
Allocation of carbon dioxide emissions allowances. 
The depm1ment shall 
allocate 100% of the annual carbon dioxide emissions allowances for public benefit to 
COMMITTEE AMENDMENT 
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COMMITIEE AMENDMENT "A " 
to S.P. 93, L.D. 276 
produce funds for carbon reduction and energy conservation, as specified in Title 35-A, 
section 10008. Except as provided in subsection 7-A and subsection 8, the department 
shall sell the carbon dioxide emissions allowances at public auction, in accordance with 
rules adopted under subsection 4. Revenue resulting from the sale of allowances must be 
deposited in the Energy and Carbon Savings Trust Fund established under Title 35-A, 
section 10008. 
Sec. 8. 38 MRS A §580-B, sub-§10, ~, as enacted by PL 2007, c. 317, § 17, is 
amended to read: 
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______ 9 ______ E.-.Management_and_cost"effectiveness_ofthe_State's_energy_conservation_and_carbon_______________ 
reduction programs and efforts funded by the Energy and Carbon Savings Trust 
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established pursuant to Title 35-A, section 10008; &Ad 
Sec. 9. 38 MRSA §580-B, sub-§10, CUF, as enacted by PL 2007, c. 317, §17, is 
-amended to read: 
F. The extent to which funds from the Energy and Carbon Savings Trust established 
IS 
pursuant to Title 35-A, section 10008 serve customers from all classes of the State's 
transmission and distribution utilities,; and 
Sec. 10. 38 MRSA §580-B, sub-§10, -ITG is enacted to read: 
G. The revenues and expenditures of the Energy and Carbon Savings Trust Fund, 
established pursuant to Title 35-A, section 10008. 
Sec. 11. 38 MRSA §580-B, sub-§11 is enacted to read: 
11. Confidentiality. To protect the integrity of individual auctions administered 
under the carbon dioxide cap-and-trade program established in this section, the following 
records are confidential as provided in this subsection. 
A. Except as provided in this paragraph, the following records are confidential for a 
period of 3 years beginning at the time of application, submission, award or record 
creation by the department or its agents: 
(I) Auction bid and award information specific to anyone account holder; 
(2) 
Carbon dioxide allowance and carbon dioxide offset allowance account 
holdings; and 
(3) Carbon dioxide allowance and carbon dioxide offset allowance transactions. 
This paragraph does not prohibit the release of carbon dioxide allowance and carbon 
dioxide offset allowance account holdings and transactions in an aggregated form that 
does not permit the identification of any person or entity. 
The commissioner may release information described in subparagraph (I), (2) or (3) 
before the expiration of the 3-year period if the commissioner determines that 
confidentiality of that information is no longer required to protect the integrity of 
individual auctions administered under the carbon dioxide cap-and-tradeprogram. 
B. 
The following records remain confidential and may not be disclosed except 
pursuant to a court order or upon the written consent of the account holder: 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A" to S.P. 93, L.D. 276 
(I) Proprietary information contained in documents required to be submitted to 
participate in an auction conducted under the carbon dioxide cap-and-trade 
program; and 
(2) Carbon dioxide allowance and carbon dioxide offset allowance transaction 
prices. This subparagraph does not prohibit the release of transaction prices 
calculated in an aggregated manner that does not permit the identification of any 
person or entity. 
Records containing any emission, offset or allowance tracking information submitted for 
-----------9------the-pu rposeof-demonstratin g-comp I ian ce-with- the-carbon- d ioxid e-cap;;an d~tradelJrogram 
and rules adopted to implement the program are public records subject to disclosure 
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under Title I, chapter 13. 
Sec. 12. Public Law 2007, c. 317, §24, sub-§3 is repealed. 
Sec. 13. Appropriations and allocations. The following appropriations and 
allocations are made. 
ENVIRONMENTAL PROTECTION, DEPARTMENT OF 
Energy and Carbon Savings Trust Fund N027 
Initiative: Provides an allocation to the Energy and Carbon Savings Trust Fund that will 
be used to reduce electricy consumption and greenhouse gas emissions. 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS 
TOTAL 
2008-09 
2009-10 
2010-11 
$30,000,000 $30,000,000 $30,000,000 
$30,000,000 $30,000,000 $30,000,000 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved.' 
SUMMARY 
This amendment makes the following changes to the bill: 
I. 
It moves the language in Public Law 2007, chapter 317, regarding rulemaking to 
provide credits to electric ratepayers at times of heightened price pressure in the regional 
carbon dioxide allowance markets, which is repealed by the bilI, into the statutes 
governing the Energy and Carbon Savings Trust and shifts responsibility for rulemaking 
from the Department of Environmental Protection to the Public Utilities Commission. 
2. 
It adds a provision to the bill that changes the Energy and Carbon Savings Trust's 
expenditure limit for administrative costs from 2% of trust fund receipts to no more than 
$800,000 per year. 
3. 
It adds a provision to the bill to insert a necessary cross-reference to the voluntary 
renewable market set aside in the Regional Greenhouse Gas Initiative Act of 2007. 
COMMITTEE AMENDMENT 
COMMITIEE AMENDMENT 'A "to S.P. 93, L.D. 276 
4. 
It adds a provision to the bill to require the Department of Environmental 
Protection and the Energy and Carbon Savings Trust to report on the revenues and 
expenditures of the Energy and Carbon Savings Trust Fund as part of the annual report to 
the Legislature. 
5. It amends the public records exception contained in the bill by clarifying the 
specific records that are confidential, the time period of confidentiality and exceptions to 
the confidentiality requirements. It clarifies and provides certain definitions and moves 
the public records exception language to the section of law governing the Regional 
Greenhouse Gas Initiative Act of2007. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
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Approved: 04/02/09 frac::.. 
LD276 
LR 525(02) 
An Act To Protect the Integrity of the State's Carbon Dioxide Budget Trading Program and Auction 
Process and To Provide Allocations to the Energy and Carbon Savings Trust Fund 
------------------FiscarNottrfoFBiI.-as-Amefided-Jjy-ColfimittCtfAmCfidmcfit-'A-" 
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Appropriations/Allocations 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Committee: Utilities and Energy 
Fiscal Note Required: Yes 
Fiscal Note 
2008-09 
2009-10 
2010-11 
$30,000,000 
$30,000,000 
$30,000,000 
Projections 
2011-12 
$30,000,000 
Projections 
2012-13 
$30,000,000 
This bill provides an annual allocation of $30,000,000 to the Energy and Carbon Savings Trust Fund beginning in 
fiscal year 2008-09. The State's carbon dioxide allowances will be auctioned through the Regional Greenhouse Gas 
Initiative to generate the revenue to fund the Energy and Carbon Savings Trust Fund. The bill also establishes a limit 
lip to $800,000 annually for the administrative costs of the Energy and Carbon Savings Trust Fund to be paid from the 
allocation of $30,000,000. 
LR0525(02) - Fiscal Note - Page 1 of 1