An Act To Establish the Maine Transmission Mitigation Trust Fnnd
Maine Legislature, Session 124, LD 1350
Committee: Utilities and Energy
Sponsors: MARTIN, JACKSON, BRIGGS, CLARK, HILL, SMITH, SUTHERLAND, TREAT, TRINWARD, WATSON
Amends: 5 MRSA §12004-G, 35-A MRSA §3218

FIRST REGULAR SESSIOr~-2009 
Legislative Document 
No. 1350 
H.P.951 
House of Representatives, March 31, 2009 
An Act To Establish the Maine Transmission Mitigation Trust Fnnd 
(EMERGENCY) 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by Representative MARTIN of Eagle Lake. 
Cosponsored by Senator JACKSON of Aroostook and 
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MILLICENT M. MacFARLAND 
Clerk 
Representatives: BRIGGS of Mexico, CLARK of Millinocket, HILL of York, WALSH INNES 
ofYannouth, SMITH of Monmouth, SUTHERLAND of Chapman, TREAT of Hallowell, 
TRINWARD of Waterville, WATSON of Bath. 
Printed on recycled pilper 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, transmission lines capable of transmitting electricity at voltages above 
kilovolts cause harm to Maine's scenic beauty and neighborhood quality of life; and 
Whereas, such transmission lines cause harm to property values and tax revenues to 
municipalities; and 
Whereas, the existence of such transmission lines imposes fmancial costs to Maine 
electricity ratepayers; and 
Whereas, such transmission lines may cause harm to the health of Maine residents; 
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: 
PART A 
Sec. A-I. 36 MRSA c. 117 is enacted to read: 
CHAPTER 117 
EXCISE TAX ON TRANSMISSION LINES 
§1651. Definitions 
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings. 
1. 
High-voltage electric transmission property. 
"High-voltage electric 
transmission property" means property of any kind used in the transmission of electricity 
at a voltage of 100 kilovolts or more, including without limitation land, easements, 
leasehold interests, poles, towers, foundations, structures, wires, transformation 
equipment, insulators, breakers, switches, meters and other fixtures. 
"High-voltage 
electric transmission property" does not include transformation equipment and other 
property used solely to reduce the voltage of electricity from a voltage of 100 kilovolts or 
more to a voltage of less than 100 kilovolts. 
2. Transmission line owner. "Transmission line owner" means a person owning 
high-voltage electric transmission property. 
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§1652. Rate oftax 
An excise tax of $4.25 per megawatt-hour of electricity transmitted over a 
transmission line is levied upon the transmission line owner and imposed at the point 
where the megawatt-hour of electricity is placed on the transmission line. 
§1653. Transmission line owner reports oftransmission and payment oftaxes 
A transmission line owner shall keep, as a part of the transmission line owner's 
permanent records, a record of all megawatt-hours transmitted over high-voltage electric 
transmission property and the point where each megawatt-hour of electricity is first 
placed on the high-voltage electric transmission property. These records must be open 
for inspection by the State Tax Assessor at all times. A transmission line owner shall, on 
or before the last day of each month, rencler a report to the Stllte Tax Assessor stating the 
number of megawatt-hours transmitted by the transmission line owner during the 
preceding calendar month on forms to be furnished by the State Tax Assessor and, at the 
same time, shall pay to the State Tax Assessor the tax under section 1652 on all 
megawatt-hours reported as transmitted over high-voltage electric transmission property. 
If it appears to the State Tax Assessor from an inspection of records or otherwise that an 
additional tax is due or overpayment of tax has been made, additional assessments or 
refunds must be made by the State Tax Assessor to the transmission line owner. 
§1654. Contributions; Maine Transmission Mitigation Trust Fund 
The State Tax Assessor shall determine annually the total amount of tax revenue 
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collected under this chapter. 
The State Tax Assessor shall deduct the cost of 
administering the transmission line tax under section 1652 from those revenues and report 
the remainder to the Treasurer of State, who shall credit that amount to the Maine 
Transmission Mitigation Trust Fund established in Title 35-A, section 3218. 
PARTB 
Sec. B-1. 5 MRSA §12004-G, sub-§30-D is enacted to read: 
30-D. 
Public Utilities 
Maine Transmission Not Authorized 
Mitigation Trust 
Sec. B-2. 35-A MRSA §3218 is enacted to read: 
§3218. Maine Transmission Mitigation Trust Fund 
35-A MRSA §3218 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Customer" means a customer of the State's transmission and distribution utilities. 
B. "Trust" means the Maine Transmission Mitigation Trust established in subsection 
2. 
C. "Trust fund" means the Maine Transmission Mitigation Trust Fund established in 
subsection 2. 
D. "Trustee" means a trustee of the trust. 
2. Establishment of trust; trust fund. The Maine Transmission Mitigation Trust 
and the Maine Transmission Mitigation Trust Fund are established to support the goal of 
mitigating the impact of transmission lines in this State. The trust fund is established as a 
nonlapsing fund administered by the trust for the purposes established in this section. 
The trust is authorized to receive, and shall deposit in the trust fund and expend in 
accordance with this section, revenue resulting from the transmission line tax pursuant to 
Title 36, section 1652. The trust fund may not be used for any other purpose, and money 
in the trust fund is considered to be held in trust for the purposes of benefiting customers. 
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A. The commission shall appoint 3 trustees. 
B. A trustee serves a 3-year tenn. If a trustee is unable to complete the tenn, the 
commission shall appoint a replacement for the remainder of the unexpired tenn. A· 
trustee may serve a maximum of 2 consecutive tenns. 
C. A trustee has a fiduciary duty to customers in the administration of the trust fund. 
Upon accepting appointment as a trustee, each trustee must aclmowledge the 
fiduciary duty to use the trust funds only for the purposes set forth in this section. 
D. The trustees shall ensure that the goals and objectives of the trust, as established 
in this section and in rules adopted by the trust, are carried out. 
3. Trust inviolability. The trustees may take legal action in the name of the trust to 
oppose efforts to reduce, impair, postpone or tenninate the amount of revenues arising 
from the transmission line tax established by Title 36, section 1652. 
The State pledges to, contracts with, and agrees with the trustees and customers that 
neither the State nor any of its agencies, including the commission, may limit, alter, 
amend, reduce or impair the trust, its funds or any rights under the trust or ownership of 
the trust or security interest in the trust. The State aclmowledges that such owners, 
holders and trustees may and will rely on this pledge, contract and agreement and that any 
such limitation, alteration, amendment, reduction or impainnent without adequate 
provision will irreparably hann such owners, holders and trustees. 
4. Money invested. Any revenue received from the transmission line tax pursuant to 
Title 36, section 1652 is the property of the trust and must be deposited in the trust fund. 
Money in the trust fund not currently needed to meet obligations under Title 36, ·section 
1654 or for the purposes of this section must be deposited with the Treasurer of State to 
the credit of the trust fund and may be invested as provided by law. Interest on these 
investments must be credited to the trust fund. The State may not assess any indirect 
charges on any revenue received from the transmission line tax pursuant to this section. 
5. 
Administration of trust fund; expenditures. 
The trust fund must be 
. administered in accordance with this subsection. 
A. On January 1 st of each year, the trustees shall distribute 20% of the trust fund, up 
to $10,000,000, to municipalities that have submitted winning bids seeking funding 
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for projects to install underground utility infrastructure. The remaining money in the 
trust fund must be distributed to each customer in proportion to that customer's 
purchases of electricity transmitted over the State's transmission and distribution 
utilities. 
B. No more than 5% of trust fund receipts in anyone year may be used for the total 
administrative costs of the trust. 
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C. The trustees shall adopt rules for establishing and administering the trust, the trust 
fund and its programs. These rules must include provisions for the expenditure of 
funds, including, but not limited to, the development of program budgets, criteria for 
selection of municipal underground utility infrastructure projects and the process for 
project selection and approval. Rules adopted pursuant to this subsection are major 
substantive rules pursuant to Title 5, chapter 375, subchapter 2-A. 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect July 1,2009. 
SUMMARY 
This bill imposes a state excise tax on certain high-voltage electric transmission 
property. This bill also creates the Maine Transmission Mitigation Trust, which manages 
the Maine Transmission Mitigation Trust Fund. The revenue from the imposition of the 
state excise tax on certain high-voltage electric transmission property is deposited in the 
trust fund. 
The trustees of the trust shall distribute 20% of the trust fund, up to 
$10,000,000, annually to municipalities that have submitted winning bids for projects to 
install underground utility infrastructure. The remainder of the trust fund must be paid to 
Maine electricity ratepayers in proportion to each customds purchases. of electricity 
transmitted over the State's transmission and distribution utilities.