An Act To Facilitate Recovery Zone Facility Bonds
Maine Legislature, Session 124, LD 1530
Committee Amendment CA_A_S381 (Senate)
Amends: Title 26, Section 149, 10 MRSA §963-A, 10 MRSA §1043, 10 MRSA §1061-B, 10 MRSA §1074-A, 10 MRSA §1074-B, 10 MRSA §1074-C, 30-A MRSA §5903, 30-A MRSA §5957

COMMITTEE AMENDMENT "1 " 
to S.P. 590, L.D. 1530, Bill, "An Act To 
Facilitate Recovery Zone Facility Bonds' 
Amend the bill by striking out the title and substituting the following: 
'An Act To Facilitate Recovery Zone Facility Bonds, Recovery Zone Economic 
Development Bonds and Qualified Energy Conservation Bonds' 
Amend the bill in the emergency preamble by striking, out all of the 3rd and 4th 
indented paragraphs (page 1, lines 5 to 10 in L.D.) and inselting the following: 
'Whereas, the American Recovery and Reinvestment Act of 2009 provides for the 
issuance by or on behalf of counties of recovery zone facility bonds on or before 
December 31, 2010, the interest on which will be exempt from federal income tax 
pursuant to the United States Internal Revenue Code; and 
Whereas, the American Recovery and Reinvestment Act of 2009 provides for the 
issuance by or on behalf of counties of recovery zone economic deveiopment bonds 
before December 31, 2010, which bonds provide for federal subsidies in the form of a 
refundable tax credit to be paid to state or local government issuers of a pOltion of the 
total interest payable to bondholders; and 
Whereas, the American Recovery and Reinvestment Act of 2009 provides for the 
increase of the limit on issuance by or on behalf of counties of qualified energy 
conservation bonds, which bonds provide for federal subsidies in the form of a refundable 
tax credit to be paid to bondholders in lieu of a pOltion of the interest othelwise payable 
by state or local government issuers; and 
Whereas, the purpose of the American Recovery and Reinvestment Act of 2009, 
including its. provisions regarding recovery zone facility bonds, recovery zone economic 
development bonds and qualified energy conservation bonds, is to provide immediate 
benefit to the economies of the states; and 
Whereas, the State's priority is to ensure full use of the aggregated volume cap 
allocations of recovery zone facility bonds, recovery zone economic development bonds 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ,·A "to S.P. 590, L.D. 1530 
and qualified energy conservation bonds within the State before December 31, 2010, or 
such later time as federal law may allow, and a mechanism must be established to enable 
reallocation of the unused volume cap in time to enable its use in another area of the State 
before December 31, 2010, or such later time as federal law may allow; and' 
Amend the bill in section 1 in subsection lOin the 2nd blocked paragraph in the first 
line (page 2, line 11 in L.D.) by inserting after the following: ""Eligible project"" the 
following: 'also' 
Amend the bill in section 1 in subsection lOin the 2nd blocked paragraph in the last 
line (page 2, line 15 in L.D.) by inserting after the following: "amended." the following: 
"'Eligible project" also includes any project that qualifies for financing with a qualified 
energy conservation bond.' 
Amend the bill by striking out all of section 4 and inserting the following: 
'Sec. 4. 10 MRS A §963-A, sub-§44-A is enacted to read: . 
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44-A. Qualified energy conservation bond. "Qualified energy conservation bond" 
has the same meaning as in 26 United States Code, Section 54D(a), as amended. 
Sec. 5. 10 MRSA §963-A, sub-§44-B is enacted to read: 
44-B. Recovery zone facility bond. "RecovelY zone facility bond" has the same 
meaning as in 26 United States Code, Section 1400U-3, as amended.' 
Amend the bill in section 5 in subsection 49 in the 3rd line (page 2, line 32 in L.D.) 
by inserting after the following: "bond" the following: 'or qualified energy conservation 
bond' 
Amend the bill by inserting after section 5 the following: 
'Sec. 6. 10.MRSA §1043, sub-§2,~, as amended by PL 2009, c. 372, Pt. D, §6, 
is further amended to read: 
L. In the case of transmission facilities projects, the applicant is creditw0I1hy ~l11d 
there is a strong likelihood that the revenue obligation securities will be repaid 
through the revenues of the project and any other source of revenues and collateral 
pledged to the repayment of those securities. In order to make this determination, the 
authority shall consider such factors as it considers necessary and appropriate in light 
of the special purpose or other nature of the business entity owning the project to 
measure and evaluate the project and the sufficiency of the pledged revenues to repay 
the obligations, including: 
(1) Whether the individuals or entities obligated to repay the obligations have 
demonstrated sufficient revenues from the project or from other sources to repay 
the obligations and a strong probability that those revenues will continue to be 
available for the term ofthe revenue obligation securities; 
(2) Whether the applicant demonstrates a strong probability that the project will 
continue to operate and provide the public benefits projected to be created for the 
term of the revenue obligation securities; 
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COMMITTEEAMENDMENT'ft"to S.P. 590, L.D. 1530 
(3) Whether the applicant demonstrates that the benefits projected to be created 
by the project are enhanced through the use of financing assistance from the 
authority; 
(4) Whether the applicant's creditw0I1hiness is demonstrated by factors such as 
its historical financial performance, management ability, plan for marketing its 
product or service and ability to access conventional financing; 
(5) 
Whether the applicant meets or exceeds industry average financial 
pelformance ratios commonly accepted in determining creditw0I1hiness in that 
industry; 
(6) Whether the applicant demonstrates that the need for authority assistance is 
due to the reduced cost and increased flexibility of the financing for the project 
that result from authority assistance and not from an inability to obtain necessary 
financing without the capital reserve fund secLlrity provided by the authority; 
(7) Whether collateral securing the repayment obligation is reasonably sufficient 
under the circumstances; 
(8) 
Whether the proposed project enhances the opp0I1unities for economic 
development; 
(9) The effect that the proposed project financing has on the authority's financial 
resources; and 
(10) Whether the Northern Maine Transmission Corporation, as established in 
section 9202, has recommended the project. 
Upon request by the authority, state agencies, including but not limited to the Public 
Utilities Commission, shall provide necessary assistance to the authority in evaluating 
the feasibility of the project and its imp0I1ance for northern Maine. In. providing 
assistance, the Public Utilities Commission shall consider whether the proposed 
project enhances the competitiveness of the wholesale and retail energy market; how 
the proposed project is likely to affect energy prices for Maine residents; whether the 
proposed project will augment or enhance the reliability and stability of the grid; and 
whether there is likely to be a long-term need for the product as produced by the 
proposed project. 
The authority may establish, pursuant to rules adopted in accordance with Title 5, 
chapter 375, subchapter 2, application procedures, approval criteria and reasonable 
fees for transmission facilities projects. Rules adopted by the authority under this 
paragraph are routine technical rules pursuant to Title 5, chapter 375, subchapter 2-A. 
In addition, the authority may require the applicant to pay the reasonable costs of an 
evaluation of the project risks by an independent consultant. If the authority directs 
the applicant to pay for such an independent evaluation of the project, the authority 
shall make every reasonable eff0I1, in its discretion, to minimize the cost of the 
evaluation and any delay such an evaluation may cause in authority action. 
The authority may not finance any project involving an electric transmission line 
capable of operating at 69 kilovolts or more unless the Public Utilities Commission 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to S.P. 590, L.D. 1530 
has issued a celiificate of public convenience for the construction of the line pursuant 
to Title 35-A, section 3132; aHd 
. 
Sec. 7. 10 MRSA §1043, sub-§2, ~, as enacted by PL 2009, c. 372, Pt. 0, §7, 
is amended to read: 
M. 
In the case of an Efficiency Maine project, as defined in section 963-A, 
subsection 10-A, there is a reasonable likelihood that the income, proceeds, revenues 
and funds of Efficiency Maine Trust derived from or held for activities under Title 
35-A, chapter 97 or otherwise pledged to payment of the bonds will be sufficient to 
pay the principal, the interest and all other amounts that may at any time become due 
and payable under the bonds. 
In making this determination, the authority shall 
consider Efficiency Maine Trust's analysis of the proposed bond issue and the 
revenues to make payments on the bonds and may require such information, 
projections, studies and independent analyses as it considers necessary or desirable 
and may charge Efficiency Maine Trust reasonable fees and expenses. The authority 
may require that it be indemnified, defended and held harmless by Efficiency Maine 
Trust for any liability or cause of action arising out of or with respect to the bonds. 
The principal and interest of bonds must be made payable solely from thlo:: income, 
proceeds, revenues and funds of Efficiency Maine Trust derived from or held for 
activities under Title 35-A, chapter 97 or other provision of law. Payment of the 
principal and interest of bonds may be fmiher secured by a pledge of a loan, grant or 
contribution from the Federal Government or other source in aid of activities of 
Efficiency Maine Trust under Title 35-A, chapter 97~; and 
Sec. 8. 10 MRSA §1043, sub-§2, ~ 
is enacted to read: 
N. In the case of recovery zone facility bonds, the project will benefit the county or 
counties in which it is located.' 
Amend the bill by striking out all of sections 6 to 8 and inserting the following: 
'Sec. 6. 10 MRSA §1061-B is enacted to read: 
§1061-B. Designation of issuer of recovel), zone facility bonds and qualified energy 
conservation bonds 
To the extent permitted by federal law, and to the extent not previously reallocated 
pursuant to section 1074-A or 1074-B, the county commissioners of any county may 
authorize the authority to issue recovelY zone facility bonds or qualified energy 
conservation bonds on behalf of that county pursuant to subchapter 3 or a municipality to 
issue recovery zone facility bonds or qualified energy conservation bonds on behalf of 
that county pursuant to this subchapter. 
Sec. 7. 10 MRSA §1074-A is enacted to read: 
§1074.A. Recovery zone facility bonds 
1. Recovery zones; statewide designation. The Legislature finds that the entire 
State is experiencing significant poverty, unemployment, increasing rate of home 
foreclosures and general distress and, as a result, to the extent permitted by federal law, 
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COMMITTEE AMENDMENT "I" to S.P, 590, LD, 1530 
designates the entire State as a recovelY zone as defined under 26 United State1s Code, 
Section 1400U-1, as amended. 
. 
2. Reallocation. To the extent permitted by federal law, the entire allocation to the 
. counties of the State of the national recovelY zone facility bond limitation established 
pursuant to 26 United States Code, Section 1400U-1, as amended, and as described in 
Internal Revenue Service Notice 2009-50, Section 6.03 is reallocated to the authority, as 
long as one half of each such allocation is further reallocated by the authority to projects 
located within and identified by the county commissioners of the county to which such 
allocation was originally made, if so identified on or before June 1, 2010. The remaining 
one half of such allocations, together with any pOliion of an allocation initially subject to 
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reallocation at the direction of the applicable county before June 1, 2010, but not so 
reallocated, may be reallocated by the authority for any project in any county of the 
State. Reallocations pursuant to this subsection are considered voluntalY and affirmative 
waivers by the affected counties for the purposes of 26 United States Code, Section 
I400U-l . et seq. and any regulations or guidance provided by the United States 
Depaliment of the TreaslllY, Internal Revenue Service thereunder. 
Sec. 8. 10 MRSA §1074-B is enacted to read: 
§1074-B. Qualified energy consenration bonds 
1. Reallocation. To the extent permitted by federal law, 30% of the allocation to the 
State and to the counties of the State of the national qualified energy conservation bond 
volume limitation established pursuant to 26 United States Code, Section 54D(e), as 
amended, and as described in Internal Revenue Service Notice 2009-29, Section 4 is 
reallocated to the authority as the issuer of qualified energy conservation bonds, for 
fllliher reallocation by the authority for any project in any county of the State. 
Reallocations pursuant to this subsection are considered voluntary and affirmative 
waivers by the affected counties for the purposes of 26 United States Code, Section 54D 
et seq. and any regulations or guidance provided by the United States DepaJiment of the 
TreaslllY, Internal Revenue Service thereunder. 
Sec. 9. 10 MRSA §1074-C is enacted to read: 
§1074-C. Allocation of certain national bond limitations 
To the extent permitted by federal law, the Governor may establish by executive 
order a procedure for the reallocation of any allocation of a pOliion of a national bond 
limitation to the State or to any issuer or governmental entity within the State pursuant to 
United States Code, Sections 54D, 54E, 54F and 1400U-1 and for the reallocation of 
any pOliion of a national bond limitation that is not used within the applicable time period 
specified in federal law or that has been waived by an issuer or governmental entity 
within the State, except that allocation of the national recovelY zone facil ity bond 
limitation established pursuant to 26 United States Code, Section 1400U-1, as amended, 
and as described in Internal Revenue Service Notice 2009-50, Section 6.03, must be 
carried out pursuant to section 1074-A, and the allocation of the national qualified energy 
conservation bond volume limitation established pursuant to 26 United States Code, 
Section 54D, as amended, and as described in Internal Revenue Service Notice 2009-29, 
Section 4 must be carried out pursuant to section 1074-B and Title 30-A, section 5953-F.' 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ,·A "to S.P. 590, L.D. 1530 
Amend the bill by inserting after section 9 the following: 
'Sec. 10. 30-A MRSA §5903, sub-§8-B is enacted to read: 
8-B. Qualified enel'gy conservation bond. "Qualified energy conservation bond" 
has the same meaning as in 26 United States Code, Section 54D(a), as amended. 
Sec. 11. 30-A MRSA§5903, sub-§8-C is enacted to read: 
8-C. Recovery zone economic development bond. 
"Recovery zone economic 
development bond" has the same meaning as in 26 United States Code, Section 1400U-2, 
as amended. 
Sec. 12. 30-A MRS A §5953-F is enacted to read: 
§5953-F. 
Recovery zone economic development bonds; qualified energy 
conservation bonds 
To the extent permitted by federal law, the county commissioners of any county may 
authorize the bank to issue recovery zone economic development bonds or qualified 
energy conservation bonds on behalf of that county. 
1. Recovery zone economic development bonds. To the extent permitted by 
federal law, the allocation . to counties of the national recovery zone economic 
development bond limitation established pursuant to 26 United States Code, Section 
1400U-1, as amended, and as described in Internal Revenue Service Notice 2009-50, 
Section 6.03, is reallocated to the bank for further reallocation by the bank for any project 
in any county of the State, as long as one half of each such allocation is fU11her 
reallocated by the bank to projects located within and identified by the county 
commissioners of the county to which such allocation was originally made, if so 
identified on or before July 1, 2010. The remaining one half of such allocations, together 
with any portion of an allocation initially subject to reallocation at the direction of the 
applicable county before July 1, 20 10, but not so reallocated, may be reallocated by the 
bank for any project in any county of the State. 
2. Qualified energy conservation bonds. To the extent permitted by federal law, 
70% of the allocation to the State and to the counties of the State of the national qualified 
energy conservation bond volume limitation established pursuant to 26 United States 
Code, Section 54D(e), as amended, and as described in Internal Revenue Service Notice 
2009-29, Section 4, is reallocated to the bank for fU11her reallocation by the bank for any 
project in any county of the State, as long as one half of each such allocation is fU11her 
reallocated by the bank to projects located within and identified by the county 
commissioners of the county to which such allocation was originally made, if so 
identified on or before July 1, 20 II. The reniaining one half of such allocations, together 
with any portion of an allocation initially subject to reallocation at the direction of the 
applicable county before July 1, 2011, but not so reallocated, may be reallocated by the 
bank for any project in any county of the State. 
3. Waivers. Reallocations pursuant to this section are considered voluntary and 
affirmative waivers by the affected counties for the purposes of 26 United States Code, 
Section 54D et seq. and Section 1400U-1 et seq. and any regulations or guidance 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT .j" to S.P. 590, L.D. 1530 
provided by the United States Depmiment of the TreasllIY, Internal Revenue Service 
thereunder. 
Sec. 13. 30-A MRSA §5957, as enacted by PL 1987, c. 737, Pt. A, §2 and Pt. C, 
§106 and amended by PL 1989, c. 6; c. 9, §2; and c. 104, Pt. C, §§8 and 10, is further 
amended to read: 
§5957. 
Allocation of state ceiling; recovery zone economic development bonds; 
. qualified energy conservation bonds 
By rulemaking under Title 5, chapter 375, subchapter II 2" the bank may establish a 
process for allocation and carry-forward of that p0I1ion of the state ceiling on issuance of 
tax-exempt bonds allocated to the bank under Title 10, chapter 9. The executive director 
of the Maine Municipal Bond Bank is designated as the state official authorized to issue 
the celiification under the United States Code, Title 26, Section 149(e)(2)(F), as 
amiended, for allocations of the state ceiling allocated to the bank pursuant to Title 10, 
chapter 9. 
By routine technical rulemaking defined under Title 5, chapter 375, subchapter 2-A 
the bank may establish a process for allocation of that portion of the national recovery 
zone economic development bond limitation established pursuant to 26 United States 
Code, Section 1400U-1, or that pOIiion of the national qualified energy conservation bond 
limitation established pursuant to 26 United States Code, Section 54D, waived by any 
county or reallocated pursuant to section 5953-F and for designation by the bank of 
recovelY zone economic development bonds and qualified energy conservation bonds.' 
Amend the bill by relettering or renumbering any nonconsecutive Pmi letter or 
section number to read consecutively. 
SUMMARY 
This amendment makes technical changes to the bill and creates a mechanism to 
allow for a reallocation process that waives each county's allocation for facility bonds, 
economic development bonds and qualified energy conservation bonds pursuant to the 
federal American Recovery and Reinvestment Act of 2009 to the Finance Authority of 
Maine and the Maine Municipal Bond Bank to enable the reallocation of the unused 
volume cap across the State in a timely manner. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Approved: 02/0911 0 frac. 
LD 1530 
LR 2407(02) 
An Act To Facilitate Recovery Zone Facility Bonds 
Fiscal Note for Bill as Amended by Committee Amendment it" 
Committee: Business, Research and Economic Development 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Funds 
Additional costs to the Finance Authority of Maine and the Maine Municipal Bond Bank can be absorbed within 
existing budgeted resources provided that the Authority and the Bank can charge market rates for the issuance of 
bonds. 
lR2407(02) - Fiscal Note - Page I of 1