An Act To Preserve and Protect Citizens' Property Rights and Values
Maine Legislature, Session 125, LD 1042
Committee: Judiciary
Sponsors: DUNPHY, THOMAS, BLACK, CRAFTS, DAVIS, LIBBY, TIMBERLAKE
Amends: 33 MRSA §173

Legislative Document 
No. 1042 
H.P. 776 
House of Representatives, March 10, 2011 
An Act To Preserve and Protect Citizens' Property Rights and 
Values 
Reference to the Committee on Judiciary suggested and ordered printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative DUNPHY of Embden. 
Cosponsored by Senator THOMAS of Somerset and 
Representatives: BLACK of Wilton, CRAFTS of Lisbon, DAVIS of Sangerville, LIBBY of 
Waterboro, McCABE of Skowhegan, McCLELLAN of Raymond, TIMBERLAKE of Turner. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  33 MRSA §173, sub-§4, ¶D, as enacted by PL 1999, c. 476, §1, is 
amended to read: 
D.    Underground oil storage tanks as required under Title 38, section 563, 
subsection 6; and 
Sec. 2.  33 MRSA §173, sub-§5, as enacted by PL 1999, c. 476, §1, is amended to 
read: 
5.  Known defects.  Any known defects.; and 
Sec. 3.  33 MRSA §173, sub-§6 is enacted to read: 
6.  Proximity to wind energy development.  Whether the property is located within 
the State's expedited permitting area under Title 35-A, chapter 34-A or knowledge of an 
existing permit or pending permit application for a grid-scale wind energy development 
within 8 miles of the property. 
Sec. 4.  35-A MRSA c. 34-B is enacted to read: 
CHAPTER 34-B 
PROPERTY VALUE GUARANTEE AND COMPENSATION PROGRAM 
§3471.  Definitions 
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings. 
1.  Asking price.  "Asking price" means the value of the eligible property at the time 
that the landowner decides to sell that property as established under section 3474. 
2.  Eligible property.  "Eligible property" means a real property parcel a boundary 
line of which is within a 3-mile radius of the base of a wind tower, either constructed or 
proposed to be constructed under an expedited wind energy development permit.  
"Eligible property" includes any real property parcel within 8 miles of a wind tower from 
which any portion of the generating facility is visible. 
3.  Landowner.  "Landowner" means a person who owns eligible property. 
4.  Permit.  "Permit" means the appropriate authorization from the primary siting 
authority under chapter 34-A to construct a wind energy development. 
5.  Property value guarantee agreement.  "Property value guarantee agreement" or 
"agreement" means a contract entered into by a landowner and a wind energy 
development owner or operator that documents the responsibility of the wind energy 
development owner or operator to compensate the landowner for the reduction in 
property value of eligible property. 
6.  Program.  "Program" means the property value guarantee program established in 
section 3472. 
7.  Wind energy development.  "Wind energy development" means a development 
under chapter 34-A that uses one or more wind towers to convert wind energy into 
electrical energy for sale or use by a person other than the wind energy development 
owner or operator. A wind energy development includes generating facilities and 
associated facilities. 
8.  Wind tower.  "Wind tower" means a windmill or wind turbine structure that is 
part of the generating facilities of a wind energy development. 
§3472.  Program established; process 
1.  Established.  The property value guarantee program is established as provided in 
this section to provide compensation for the reduction in property value experienced by 
landowners within close proximity to one or more wind towers. 
2.  Notice to landowners.  Within 30 days of submitting a permit application, a wind 
energy development applicant shall provide notice to all landowners about the program as 
provided in this subsection. 
A.  All notices must be sent to each landowner by certified mail, return receipt 
requested. 
B.  The notice must include a detailed description of the program, including a clear 
explanation of landowner responsibilities and directions for participating in the 
program.  An additional notice must be sent within 14 days of the issuance of a 
development permit advising that interested landowners must enter into a property 
value guarantee agreement within 180 days of the issuance of the permit. 
C.  The notice must include a description of the process to establish predevelopment 
baseline property values as provided in section 3473, including a clear explanation 
that a landowner interested in participating in the predevelopment baseline property 
value process must provide notice to the wind energy development owner or operator 
within 30 days of receiving the notice. 
3.  Agreement.  If a landowner chooses to enter into a property value guarantee 
agreement, the wind energy development owner or operator shall enter into the 
agreement, and both parties shall execute the agreement according to subsection 4. 
4.  Guarantee.  An agreement must provide that, if the landowner lists for sale that 
landowner's eligible property within 10 years of entering into the agreement and the 
actual sale price is less than the asking price established under section 3474, the wind 
energy development owner or operator shall pay to the landowner the difference between 
the actual sale price and the asking price.  The wind energy development owner or 
operator may make a counter-offer on any offer of purchase that is below the asking 
price; the counter-offer must be made within 48 hours of the submitted offer. 
5.  Claim; payment; interest.  If a property subject to an agreement sells for less 
than the asking price, the landowner shall make a claim to the wind energy development 
owner or operator for the difference between the asking price and the actual sale price, 
after deducting real estate commissions and normal costs associated with the sale of real 
estate in the county in which the property is located.  If the wind energy development 
owner or operator does not pay the amount owed within 10 days of the sale, then the wind 
energy development owner or operator is responsible for paying interest on the amount 
owed equal to one percent per month, and is responsible for attorney's fees and other 
costs associated with collecting the payment and interest required under this subsection. 
6.  Buyout.  If a landowner's eligible property fails to sell within 6 months of the 
property's being listed at the asking price, the wind energy development owner or 
operator shall purchase the property at the asking price. 
§3473.  Predevelopment baseline property values 
1.  Panel.  A panel of 3 real estate appraisers shall determine the predevelopment 
baseline property value of the eligible property of a landowner who has provided notice 
to the wind energy development owner or operator that the landowner chooses to 
participate in the predevelopment baseline property value process.  The wind energy 
development owner or operator and the landowner shall each select a neutral real estate 
appraiser and shall jointly select a neutral real estate appraiser.  Each real estate appraiser 
must be licensed in this State and must conduct business in the general area of the 
property in question. 
2.  Comparative market analysis.  Each real estate appraiser selected under 
subsection 1 shall perform a comparative market analysis of the property that compares 
the property size and improvements to no less than 3 similar properties that are listed for 
sale, using generally accepted comparative market analysis methods.  The comparative 
market analyses must be based on comparable areas not affected by wind energy 
development.  The comparative market analyses must be performed at the expense of the 
wind energy development owner or operator. 
3.  Access to property.  The landowner shall permit access to the eligible property as 
required to perform inspections for comparative market analysis under subsection 2.  The 
landowner shall provide full disclosure of known defects of the property required under 
law in this State for residential real property being offered for sale. 
4.  Reports.  Each real estate appraiser selected under subsection 1 shall provide a 
written copy of the comparative market analysis report to both the landowner and the 
wind energy development owner or operator.  Both the landowner and the wind energy 
development owner or operator have the right to reject comparative market analysis 
results only in the instance of a clear mistake by the real estate appraiser. 
5.  Determination of predevelopment baseline property value.  The 2 highest 
property valuations determined from each comparative market analysis made under 
subsection 2 are averaged to determine the predevelopment baseline property value. 
6.  Part of application record.  All results of the predevelopment baseline property 
value determinations made under subsection 2 become part of the permit application 
record. 
§3474.  Asking price determination 
1.  Agreed-to asking price.  If the landowner and the wind energy development 
owner or operator agree on the asking price of the landowner's eligible property, then the 
agreed-to amount must be used as the asking price under the program. 
2.  Determination of asking price by appraisal.  If the wind energy development 
owner or operator and the landowner do not agree to the asking price, a panel of 3 real 
estate appraisers shall determine the asking price by appraisal. 
A.  The wind energy development owner or operator and the landowner shall each 
select a neutral real estate appraiser and shall jointly select a neutral real estate 
appraiser.  Each real estate appraiser must be licensed in this State and must conduct 
business in the general area of the eligible property. 
B.  Each real estate appraiser shall perform a comparative market analysis of the 
eligible property that compares the property size and improvements to no less than 3 
similar properties that are listed for sale, using generally accepted comparative 
market analysis methods.  The comparative market analyses must be based on 
comparable areas not affected by wind energy development. 
C.  The comparative market analyses under paragraph B must be performed at the 
expense of the wind energy development owner or operator. 
D.  The landowner shall permit access to the eligible property as required to perform 
the comparative market analysis under paragraph B for inspections.  The landowner 
shall provide full disclosure of known defects of the property as required under law in 
this State for residential real property being offered for sale. 
E.  Each real estate appraiser shall provide a written copy of the report of 
comparative market analysis under paragraph B to the landowner and the wind 
energy development owner or operator.  Both the landowner and the wind energy 
development owner or operator have the right to reject comparative market analysis 
results only in the instance of a clear mistake by the real estate appraiser. 
F.  The 2 highest property valuations determined from each comparative market 
analysis must be averaged to determine the asking price. 
§3475.  Compensation contract 
If a landowner enters into a contract with the wind energy development owner or 
operator in which the landowner allows the placement of a wind tower closer than 3 miles 
to a boundary line of that landowner's property in exchange for any compensation from 
the wind energy development owner or operator, then the landowner is ineligible to 
participate in the program unless the wind energy development owner or operator waives 
this provision and allows the landowner to enter into an agreement under this program. 
§3476.  Compensation for property value loss before the program 
1.  Permit issued before effective date.  A landowner who owns property a 
boundary line of which is within a 3-mile radius of the base of a wind tower that was 
constructed or proposed under a permit issued prior to the effective date of this chapter 
may seek compensation from the State for any loss in property value due to the proximity 
to the wind tower. 
2.  Process.  The process of determining the asking price by appraisal under section 
3474 for property described in subsection 1 must be used to determine the diminution in 
property value, with the Department of Environmental Protection acting as the wind 
energy development owner or operator for the purposes of the appraisal and payment of 
compensation. 
SUMMARY 
This bill establishes a property value guarantee program to ensure that a landowner 
whose real property is located within 3 miles of the base of a wind tower is compensated 
for any reduction in property value resulting from the proximity of the wind tower.  The 
wind energy development owner or operator is required to notify landowners within the 
3-mile radius of a planned wind tower of the property value guarantee program.  
Landowners may choose to enter into the agreement with the wind energy development 
owner or operator under which the wind energy development owner or operator must pay 
the difference in property value if the real property is sold within 10 years of entering into 
the agreement for less than the asking price that is either agreed to by the parties or 
determined by appraisal.  A landowner who receives compensation for the location of the 
wind tower directly from the wind energy development owner or operator is not eligible 
to participate in the program unless the wind energy development owner or operator 
waives the disqualification. 
The bill requires sellers of residential real property to disclose whether the property to 
be sold is located within the State expedited wind energy development permitting area, or 
whether the seller has knowledge of an existing permit or a pending permit application 
for a grid-scale wind energy development within 8 miles of the property. 
The bill provides a compensation element for landowners whose property values have 
diminished due to the location of wind towers permitted before the effective date of the 
new program.