An Act To Improve the Energy Efficiency of Public Buildings and Create Jobs
Maine Legislature, Session 125, LD 1264
Committee Amendment CA_A_S244 (Senate)
Amends: 5 MRSA §1764-A, 20-A MRSA §15915, 30-A MRSA §903, 30-A MRSA §5953-C, 30-A MRSA §5954-A

COMMITTEE AMENDMENT" A " to S.P. 385, L.D. 1264, Bill, "An Act To 
Improve the Energy Efficiency of Public Buildings and Create Jobs" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'PART A 
Sec. A-I. 5 MRSA §1764-A, as affected by PL 2003, c. 497, §5 and corrected by 
RR 2003, c. 1, §2, is amended to read: 
§1764-A. Improvement of energy efficiency and usage of distributed renewable 
technology in state-funded construction 
1. Definitions. For purposes of this section, "substantially renovated" means any 
renovation for which the cost exceeds 50% of the building's current 'falue prior to 
reno'fation. As used in this section, unless the context otherwise indicates, the following 
terms have the following meanings. 
A. 
"Load management system" means the process of balancing the supply of 
electricity on the network with the electrical load by adjusting or controlling the load 
rather than the power station output. 
B. "Substantially renovated" means any renovation for which the cost exceeds 50% 
of the building's current value prior to renovation. 
2. 
Rules. 
The Bureau of General Services, in consultation with the Energy 
ResoUi'ces Council and the Public Utilities Commission Efficiency Maine Trust, 
established in Title 35-A, section 10103, shall by rule require that all planning and design 
for the construction of new or substantially renovated state-owned or state-leased 
buildings and buildings built with state funds, including buildings funded though through 
state bonds or the Maine Municipal Bond Bank: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 385, L.D. 1264 
A. 
Involve consideration of architectural designs and energy systems, including 
load management systems, that show the greatest net benefit over the life of the 
building by minimizing long-term energy and operating costs; 
B. 
Include an energy-use target that exceeds by at least 20% the energy efficiency 
standards in effect for commercial and institutional buildings pursuant to Title 10, 
section 1415 D chapter 1103; and 
C. 
Include a life-cycle cost analysis that explicitly considers cost and benefits over 
a minimum of 30 years and that explicitly includes the public health and 
environmental benefits associated with energy-efficient building design and 
lO 
construction, to the extent they can be reasonably quantified. 
Rules adopted pursuant to this section apply to all new or substantially renovated state-
owned or state-leased buildings and buildings built with state funds, including buildings 
funded through state bonds or the Maine Municipal Bond Bank, regardless of whether the 
planning and design for construction is subject to approval by the department. 
Rules adopted pursuant to this section may provide for exemptions, waivers or other 
appropriate consideration for buildings with little or no energy usage, such as unheated 
sheds or warehouses. 
The Bureau of General Services shall adopt rules pursuant to this section by July I, 2004. 
Rules adopted pursuant to this section are routine technical rules as defined in Title 5, 
chapter 375, subchapter 2-A. 
3. Approval. A state agency responsible for approving the construction of a new or 
substantially renovated state-owned or state-leased building and buildings built with state 
funds, including buildings funded theugh through state bonds or the Maine Municipal 
Bond Bank, may not grant such approval unless the agency or other entity or organization 
proposing the construction can show that it has duly considered the most energy-efficient 
and environmentally efficient designs suitable in accordance with rules adopted pursuant 
to this section. 
PARTB 
Sec. B-1. 20-A MRSA §lS908-A, sub-§l, as enacted by PL 2003, c. 497, §2 and 
affected by §5, is repealed and the following enacted in its place: 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. 
"Load management system" means the process of balancing the supply of 
electricity on the network with the electrical load by adjusting or controlling the load 
rather than the power station output. 
B. "Substantially renovated" means any renovation for which the cost exceeds 50% 
of the building'S current value prior to renovation. 
Sec. B-2. 20-A MRSA §lS908-A, sub-§2, ~~A and B, as enacted by PL 2003, 
c. 497, §2 and affected by §5, are amended to read: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 385, L.D. 1264 
A. 
Involve consideration of architectural designs and energy systems, including 
load management systems, that show the greatest net benefit over the life of the 
building by minimizing long-term energy and operating costs; 
B. 
Include an energy-use target that exceeds by at least 20% the energy efficiency 
standards in effect for commercial and institutional buildings pursuant to Title 10, 
s6stion 1415 D chapter 1103; and 
Sec. B-3. 20-A MRSA §15915, sub-§l, as amended by PL 2005, c. 499, §l, is 
further amended to read: 
1. Initial agreement. Any school administrative unit may enter into an agreement of 
up to +5- 20 years with a private party, such as an energy service or 3rd-party financing 
company, for the design, installation, operation, maintenance and financing of energy 
conservation, load management systems or combined energy conservation and air quality 
improvements at existing school administrative unit facilities. 
For purposes of this 
subsection, "load management system" has the same meaning as in section l5908-A, 
subsection 1, paragraph A. The school administrative unit's costs to enter into such an 
agreement are not applicable to the unit's school construction project costs, the debt 
service on which is eligible for subsidy purposes under section 15907. 
Such an 
agreement is deemed to be a professional service, which is not subject to the competitive 
bidding requirements of Title 5, section 1743-A, if the agreement: 
A. 
Provides for operation or maintenance of the improvement for at least 5 years or 
the entire term of the financing agreement iflonger than 5 years; 
B. 
Requires a guaranty by the contractor that the improvement will meet 
performance criteria set forth in the agreement for at least 5 years or for the entire 
term of the financing agreement if longer than 5 years; and 
C. 
Has a total contract cost, excluding interest and operating and maintenance costs, 
of less than $2,000,000 for any school building, except that this limit may be 
exceeded if all risk that the project's costs will exceed its benefits is borne by an 
entity other than the school administrative unit. 
A school administrative unit may select contractors for these professional services on the 
basis of a request for qualifications or a request for proposals and it is not required to use 
a competitive method set forth in this chapter and Title 5, section 1743-A and Private and 
Special Law 1999, chapter 79. The selection process must include at a minimum a 
request for qualifications or a request for proposals that is advertised in a newspaper of 
general circulation in the school administrative unit and a newspaper of general 
circulation in the City of Augusta. The school administrative unit shall interview not 
fewer than 3 service providers unless a smaller number of service providers responds to 
the request for qualifications or requests for proposals. The performance criteria in the 
agreement is are subject to approval by the Department of Administrative and Financial 
Services, Bureau of General Services. A request for qualifications or proposals may not 
contain terms that require service providers to have more than 3 years of experience in 
the energy conservation field or the use of equipment that is not generally available to 
service providers or terms that are otherwise included for the purpose of bias or 
favoritism toward a particular service provider. Objections to the terms of a request for 
qualifications or proposals under this subsection are deemed waived if not delivered in 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A "to S.P. 385, L.D. 1264 
writing to the office of the superintendent of schools in that school administrative unit 
within 21 days of the last publication of the newspaper advertisement. 
UHC 
Sec. C-l. 30-A MRSA §903, sub-§l, 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: 
1. Agreement with energy service and 3rd-party financing companies. County 
commissioners may enter into an agreement with a private party, such as an energy 
service or 3rd-party financing company, for the design, installation, operation, 
maintenance and financing of energy conservation or load management system 
improvements at county facilities. For purposes of this subsection, "load management 
system" means the process of balancing the supply of electricity on the network with the 
electrical load by adjusting or controlling the load rather than the power station output. 
PART D 
Sec. D-l. 30-A MRSA §5953-C, as amended by PL 2007, c. 66, §1, is further 
amended to read: 
§5953-C. Loans for energy efficiency and distributed renewable energy technology 
improvements in municipal and school buildings 
This section establishes a program to promote energy efficiency and increased use of 
load management systems and indoor air quality in municipal and school buildings. As 
used in this section, "load management system" means the process of balancing the 
supply of electricity on the network with the electrical load by adjusting or controlling the 
load rather than the power station output. 
1. Efficiency Partners Program. The bank shall establish the Efficiency Partners 
Program, referred to in this section as "the program," designed to reduce net energy costs 
in municipal and school buildings and to create jobs by financing energy audits and 
cost-effective improvements that accomplish energy efficiency and increased use of load 
management systems while maintaining healthful indoor air quality. The bank shall issue 
a request for proposals for energy audits of municipal and school buildings and for energy 
savings that could be achieved through cost-effective improvements to load management, 
heating and cooling systems, windows, insulation, lighting and equipment in municipal 
and school buildings. Identification of cost-effective improvements to achieve net energy 
savings under the program must be based on a comprehensive energy audit that has been 
performed within the previous 5 years by a professional engineer licensed in this State. 
An energy audit that is financed under the program or is the basis for cost-effective 
energy efficiency energy-related improvements financed under the program must address 
compliance with the model bailding energy cede Maine Uniform Building and Energy 
Code adopted by the Public Utilities Commission plH'suant to Title 35 l'L, section 121 
pursuant to Title 10, chapter 1103. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A "to S.P. 385, L.D. 1264 
2. Access to the program. Municipalities and school administrative units may have 
access to the program regardless of whether the municipality or school administrative unit 
utilizes a loan pursuant to this section to finance an energy audit or cost-effective ~ 
efficiency energy-related improvements. 
3. 
Proposals; contracts. The bank shall solicit proposals from energy service 
companies and individual vendors of energy service products. 
Notwithstanding any 
provision of the law regarding bidding requirements, the bank shall contract with an 
energy service company or companies or vendor or vendors to provide energy services in 
municipal and school buildings under the program. Whenever the bid proposals received 
are substantially equivalent, the bank shall in the contract process select an in-state 
energy service company or vendor whose primary place of business is within this State. 
For public school projects, bid proposals for energy efficiency energy-related 
improvements must include plans and specifications that are adequate to permit review by 
the agencies listed under Title 20-A, section 15903, subsection 3 and that bear the stamp 
of a licensed professional engineer or licensed architect. The agencies listed in Title 
20-A, section 15903, subsection 3 shall review the plans and specifications and approve 
or disapprove them within a reasonable time period. 
4. 
Loan; loan agreements. 
Loans from the bank for energy efficiency 
energy-related improvements must be structured to ensure to the greatest extent possible 
that the cost savings achieved by the energy efficiency energy-related improvements are 
sufficient to cover the loan and ultimately to achieve a net positive cash flow as early as 
practical. The rate of interest charged for loans made through the program for energy 
efficiency energy-related improvements or energy audits must be below the currently 
available rate of interest charged on commercial loans of equivalent term and use. 
5. Energy Payment Equalization Fund. The bank shall establish a fund called the 
Energy Payment Equalization Fund. To the extent that the fund has assets available to it 
through funding by federal, state or local governments, or grants, gifts, donations or 
payments from any other source, money in the fund may be applied to loans made to 
municipalities in the program if achieved energy savings are not sufficient to offset the 
debt service payments on a loan made through the program. This fund may include 
deposits made by energy service companies or vendors to guarantee their commitment to 
achieve energy savings sufficient to offset debt service payments but may not include any 
other donations or payments from vendors or interested parties. The fund may be used to 
provide general interest rate reductions or principal reductions on any loan or group of 
loans made under the program for energy audits or for energy efficiency energy-related 
improvements regardless of energy cost savings that may be achieved through the use of 
the proceeds of the loans or loan. 
6. Report to the Legislature. Beginning in 2008, the bank shall report annually by 
March 1st to the joint standing committee of the Legislature having jurisdiction over 
utilities and energy matters regarding the program. The report must document program 
activity during the prior 12 months, including, but not limited to, contracts made with 
energy service companies or vendors, loans made to municipalities or school 
administrative units, energy audits conducted and energy efficiency energy-related 
improvements implemented. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 385, L.D. 1264 
Sec. D-2. 30-A MRSA §5954-A, sub-§l, as amended by PL 2005, c. 190, §1, is 
further amended to read: 
1. 
Authority. 
In addition to its other enumerated powers, but subject to the 
limitations imposed under subsection 2, the bank, on behalf of or in partnership with one 
or more governmental units or nonprofit corporations organized under the Internal 
Revenue Code, Section 501, may aggregate governmental units and nonprofit 
corporations to purchase in bulk electricity, petroleum products, fuel oil and~ natural gas 
and the services of energy service companies and individual vendors of energy service 
products.' 
SUMMARY 
This amendment strikes and replaces the bill with the following. 
Part A extends existing standards for energy savings design considerations to include 
cost-effective load management systems. 
Part B adds consideration of cost-effective load management systems to existing 
standards for energy savings design considerations and targets for school construction 
projects and gives school administrative units increased flexibility in contracting with 
energy service companies for energy efficiency and load management improvements. 
Part C expands counties' ability to contract with energy service companies to achieve 
energy savings to include load management systems. 
Part D expands the Maine Municipal Bond Bank's Efficiency Partners Program, 
which provides loans for efficiency upgrades to municipal and public school buildings, to 
include load management projects and expands the bank's aggregation powers for 
nonprofits and municipalities to include the services of energy service companies and 
products vendors. 
FISCAL ~OTE REQLlRED 
(See attached) 
. COMMITTEE AMENDMENT 
Approved: 06/03111 :p/ac 
LD 1264 
LR 1352(02) 
An Act To Improve the Energy Efficiency of Public Buildings and Create Jobs 
Fiscal Detail and Notes 
Fiscal Note for Bill as Amended by Committee Amendment "A" <5- '2 &.14-
Committee: Energy, Utilities and Technology 
Fiscal Note Required: Yes 
Fiscal Note 
Potential current biennium cost increase - General Fund 
This legislation may increase the construction and planning costs of a State Board of Education funded Major Capital 
Improvement project such as the construction of a new school or renovations to an existing school. The potential 
increase in cost for each project cannot be determined at this time. However, because debt service costs associated 
with funding school construction projects cannot exceed the annual levels established in 20-A § 15905, a decrease in 
the total number of projects may be required to stay within spending limits. If all planned projects are to be 
undertaken, the debt service limit may need to be raised 
Any additional costs to the Efficiency Maine Trust for rulemaking to set new planning and design requirements for 
state-owned or state-leased buildings can be-absorbed within its existing budgeted resources. Any additional costs to 
the Department of Administrative and Financial Services can also be absorbed utilizing existing budgeted resources. 
LR1352(02) - Fiscal Note - Page 1 of 1