An Act To Promote Cogeneration of Energy at Maine Sawmills
Maine Legislature, Session 124, LD 1044
Committee Amendment CA_A_H302 (House)

COMMITTEE AMENDMENT" A" to H.P. 719, L.D. 1044, Bill, "An Act To 
Promote Cogeneration of Energy at Maine Sawmills" 
Amend the bill by striking out the title and substituting the following: 
'Resolve, To Promote Cogeneration of Energy at Maine Sawmills' 
Amend the bill by striking out everything after the title and before the summary and 
inserting the following: 
'Sec. 1. 
Stal<.ebolder group. 
Resolved: 
That the Executive Department, 
Govel'llor's Office of Energy Independence and Security shall convene a stakeholder 
group to examine and make recommendations regarding the concept of cogeneration 
energy zones, as described in section 2, to promote cogeneration at sawmills in the State.· 
The office shall, at a minimum, invite representatives of the Public Utilities Commission, 
the Office of the Public Advocate; the forest products industry, transmission and 
distribution utilities and other interested parties to participate in the stakeholder group; 
and be it fllliher 
. 
Sec. 2. Cogeneration energy zone. Resolved: That, for the purposes of this 
resolve, "cogeneration energy zone" means a designated geographic area that includes a 
sawmill that has an on-site cogeneration facility. The stakeholder group under section 1 
shall consider the following criteria in developing the concept of cogeneration energy 
zones: 
I. Allowing the zone to include not less than 2 and not more than 10 manufacturing 
facilities, including the subject sawmill; 
2. Limiting the zone to a maximum radius of 10 miles; 
3. Limiting the cogeneration facility to an installed capacity limit of 5 megawatts; 
4. Requiring the cogeneration facility to meet fuel system efficiency standards or use 
a renewable resource as its fuel input; 
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COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "~,\,, to H.P, 719, L.D, \044 
5. Allowing the sawmilI that owns the on-site cogeneration facility and other entities 
within the zone that share an ownership interest in the cogeneration facility to elect net 
energy billing. If the cogeneration facility has an installed capacity of more than 660 
kilowatts and net energy billing is elected, the sawmill and any shared ownership 
customers that elect net energy billing would be required pay a fee to the transmission 
and distribution utility to mitigate cost shifting to other ratepayers. If the cogeneration 
facility has an installed capacity of 660 kilowatts or less, the Public Utility Commission's 
rules governing net energy billing would apply. If there is no shared ownership of the 
cogeneration facility, the sawmill may sell its net excess generation pursuant to the small 
generator aggregation law under the Maine Revised Statutes, Title 35-A, section 321 O-A; 
6. Allowing the construction of a private transmission line to be considered, subject 
to the requirements of Titl~ 35-A, section 2305-B if the transmission and distribution 
utility serving the location of the cogeneration facility does not have the capacity to 
transmit the output of the cogeneration facility to the shared ownership customers; and 
7. 
Allowing the nonelectric energy produced by the cogeneration facility to be 
shared with other entities through private agreement; and be it fmiher 
Sec. 3. Report; authority for legislation. Resolved: 
That, no later than 
February 15, 2010, the Executive Department, Governor's Office of Energy Independence 
and Security shalI submit to the Joint Standing Committee on Utilities and Energy a 
repOli of the findings and recommendations of the stakeholder group under ~ection 1, 
including any suggested legislation. After receipt and review of the repOli, the committee 
is authorized to repOli ouf legislation to the Second Regu lar Session of the 124th 
Legislature regarding cogeneration energy zones.' 
SUMMARY 
This amendment replaces the bilI with a resolve. 
The amendment directs the 
Executive Depalilnent" Governor's Office of Energy Independence and Security to 
convene a stakeholder group to examine and make recommendations regarding the 
concept of cogeneration energy zones. The amendment requires the office to repO\i to the 
Joint Standing Committee on Utilities and Energy no later than February 15, 2010 
regarding the findings and recommendations of the stakeholder group. After receipt and 
review of the report, the committee is authorized to repO\i out legislation on the subject of 
cogeneration energy zones to the Second Regular Session of the 124th Legislature. 
FISCAL :\OTE HEQUlRED 
(See attached) 
COMMITTEE AMENDMENT 
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Approved: 05/14/09 .%Pac. 
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LD 1044 
LR 1615(02) 
An Act To Promote Cogeneration of Energy at Maine Sawmills 
Fiscal Note for Bill as Amended by Committee Amendment ,~" 
Committee: Utilities and Energy 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue Funds 
Fiscal Detail and Notes 
Additional costs associated with convening a stakeholders group to examine and make recommendations regarding the 
concept of cogeneration energy zones and other administrative duties can be absorbed within existing budgeted 
resources. 
LR 1615(02) - Fiscal Note - Page I of I