An Act To Expand the Availability of Natural Gas to the Citizens of Maine
Maine Legislature, Session 125, LD 1091
Committee: Energy, Utilities and Technology
Sponsors: KATZ, HILL, FREDETTE, KESCHL, STRANG BURGESS
Amends: 10 MRSA §963-A

Legislative Document 
No. 1091 
S.P. 324 
In Senate, March 15, 2011 
An Act To Expand the Availability of Natural Gas to the Citizens of 
Maine 
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed. 
JOSEPH G. CARLETON, JR. 
Secretary of the Senate 
Presented by Senator KATZ of Kennebec. 
Cosponsored by Senator: HILL of York, Representatives: FREDETTE of Newport, KESCHL 
of Belgrade, STRANG BURGESS of Cumberland. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  10 MRSA §963-A, sub-§10, ¶S, as amended by PL 2009, c. 372, Pt. D, 
§2, is further amended to read: 
S.  Any transmission facilities project; and 
Sec. 2.  10 MRSA §963-A, sub-§10, ¶T, as enacted by PL 2009, c. 372, Pt. D, 
§3, is amended to read: 
T.  An Efficiency Maine project.; and 
Sec. 3.  10 MRSA §963-A, sub-§10, ¶U is enacted to read: 
U.  A natural gas service expansion project. 
Sec. 4.  10 MRSA §963-A, sub-§31-A, as amended by PL 2001, c. 417, §2, is 
further amended to read: 
31-A.  Major business expansion project.  "Major business expansion project" 
means any building, structure, system, machinery, equipment or facility proposed to be 
constructed, developed, rehabilitated, expanded, modernized or acquired in the State by a 
business entity that has a projected cost of $1,000,000 or more, that is projected to result 
in a net gain of at least 50 job opportunities within the State or the retention of at least 50 
jobs, directly or indirectly, and that benefits from financing assistance from the authority 
including use of a capital reserve fund pursuant to section 1053.  A major business 
expansion project does not include electric rate stabilization projects, natural gas service 
expansion projects or projects primarily involved in the provision of housing or retail 
sales to consumers. 
Sec. 5.  10 MRSA §963-A, sub-§40-B is enacted to read: 
40-B.  Natural gas service expansion project.  "Natural gas service expansion 
project" means the development, construction, acquisition, financing and placing in 
operation of any real estate, fixtures and personal property for the purpose of facilitating 
the production, generation, transmission, delivery or furnishing of natural gas for light, 
heat, power or commercial and industrial purposes to persons and businesses located in 
the State.  
Sec. 6.  Moral obligation credit enhancement program.  No later than 
January 15, 2012, the Finance Authority of Maine, in consultation with the Public 
Utilities Commission, shall develop a moral obligation credit enhancement program 
modeled on the electric rate stabilization projects program established by Public Law 
1993, chapter 712 to use the State's credit rating to reduce financing costs of natural gas 
service expansion projects, as defined pursuant to the Maine Revised Statutes, Title 10, 
section 963-A, subsection 40-B.  The purpose of the program developed pursuant to this 
section is to provide state financial assistance to qualified projects that do not pose a 
significant risk of financial loss to the State and that will support the goals of assisting in 
the expansion of natural gas service to areas of the State presently unserved by a natural 
gas utility.  No later than January 15, 2012 and prior to initiation of the program, the 
Finance Authority of Maine shall report to the Joint Standing Committee on Energy, 
Utilities and Technology and the Joint Standing Committee on Labor, Commerce, 
Research and Economic Development on the program developed pursuant to this section 
and shall include in this report recommended legislation, if any, necessary or appropriate 
for its implementation. The joint standing committees may report out a bill to address the 
authority's recommendation pursuant to this section. 
SUMMARY 
This bill provides for the expansion of natural gas service to areas of the State 
presently unserved by a natural gas utility to reduce the cost of energy for the citizens of 
the State, including the cost of energy used in space heating and for commercial and 
industrial purposes.  This bill clarifies existing law by explicitly including projects that 
expand the availability of natural gas within the scope of eligible projects for Finance 
Authority of Maine assisted financing, and that such projects are not limited by the 
individual project borrowing cap applicable to major business expansion projects.