An Act To Expand the Availability of Natural Gas to the Citizens of Maine
Maine Legislature, Session 125, LD 1091
Committee Amendment CA_A_S178 (Senate)
Amends: 10 MRSA §963-A, 10 MRSA §1043, 10 MRSA §1053

COMMITTEE AMENDMENT" An to S.P. 324, L.D. 1091, Bill, "An Act To 
Expand the Availability of Natural Gas to the Citizens of Maine" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 
MRSA §963-A, sub-§12, as enacted by PL 1985, c. 344, &7, IS 
amended to read: 
12. 
Energy distribution system project. 
"Energy distribution system project" 
means an energy distribution system owned, in whole or in part, by an individual, 
municipality, corporation or other governmental entity or business association and wffi€ft 
that uses biomass, peat, solar, waste, water and related dams, wind, wood, coal or natural 
gas or that distributes or transmits natural gas. 
Sec. 2. 10 MRSA §1043, sub-§2, ~, as amended by PL 2009, c. 517, §8, is 
further 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 
arid 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 hanll1ess 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 the 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 further secured by a pledge of a loan, grant or 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A" to S.P. 324, LD. 1091 
contribution from the Federal Government or other source in aid of activities of 
Efficiency Maine Trust under Title 35-A, chapter 97; and 
Sec. 3. 10 MRSA §1043, sub-§2, -IN, as enacted by PL 2009, c. 517, §9, is 
amended to read: 
N. In the case of recovery zone facility bonds, the project will benefit the county or 
counties in which it is located7; and 
Sec. 4. 10 MRSA §1043, sub-§2, -JO is enacted to read: 
O. 
In the case of an energy distribution system project regulated by the Public 
Utilities Commission with respect to rates or terms of service or that requires, for 
construction or operation, authorization or certification from the commission, the 
following conditions are met. 
(1) The energy distribution system project has received all authorizations or 
certifications from the Public Utilities Commission necessary for construction 
and operation of the project The authority may issue a certificate of approval for 
a project that has received conditional approvals or certifications from the 
commission, except that the authority'S certificate becomes legally effective only 
upon fulfillment of the conditional provisions of the commission's certificates or 
approvals. If the commission has approved rates to be charged by the project or 
has issued a certificate of public convenience and necessity for the project, the 
authority shall take into consideration any findings and conclusions of law of the 
commission, including any findings and conclusions pertaining to the need for 
the project and the financial viability of the project 
(2) The authority has reviewed and considered any comments provided by the 
Director of the Governor's Office of Energy Independence and Security and the 
Public Advocate. 
(3) The authority has determined that the applicant is creditworthy and that there 
is a reasonable likelihood that the revenue obligation securities will be repaid 
through the revenues of the project and any other sources of revenues and 
collateral pledged to the repayment of those securities. In order to make these 
determinations, 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 and the specific purposes of the project to measure and 
evaluate the project and the sufficiency of the pledged revenues to repay the 
obligations, including, but not limited to: 
(a) 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 reasonable probability that those revenues will 
continue to be available for the term of the revenue obligation securities; 
(b) Whether the applicant demonstrates a reasonable 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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COMMITTEE AMENDMENT ,. A "to S.P. 324, L.D. 1091 
ec) Whether the applicant's creditworthiness 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; 
Cd) 
Whether the applicant meets or exceeds industry average financial 
perfornlance ratios commonly accepted in determining creditworthiness in 
that industry; 
ee) 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 security provided 
by the authority; 
en 
Whether collateral secunng the repayment obligation is reasonably 
sufficient under the circumstances; 
(g) Whether the proposed project enhances the opportunities for economic 
development; 
eh) 
The effect that the proposed project financing has on the authority's 
financial resources; 
(i) The financial perfonnance of similar projects; 
(j) 
The need for the project, as detennined by the Public Utilities 
Commission and as indicated by any comments provided by the Director of 
the Governor's Office of Energy Independence and Security, other public 
officials and members of the public; 
(k) The nature and extent of customer commitment to use the project or the 
fuel or energy the project distributes or transmits; and 
(I) The cost advantages to end users of the fuel or energy to be distributed or 
transmitted by the project, to the extent those advantages may affect market 
penetration by the project. 
Sec. 5. 10 MRSA §1043, sub-§5 is enacted to read: 
5. Assistance. In considering any request for financial assistance from an applicant 
for a project regulated by the Public Utilities Commission with respect to rates or tenns 
of service or that requires for construction or operation authorization or certification from 
the commission, the commission, upon request of the authority, shall provide assistance 
in analyzing financial, economic or technical issues on which the commission has 
expertise. At the request of the commission, the authority shaH assess the applicant a fee 
to be paid to the commission to reimburse the commission for any costs incurred by the 
commission that cannot be absorbed within its existing resources. 
Sec. 6. 10 MRSA §1053, sub-§6, ~A, as repealed and replaced by PL 1999, c. 
531, Pt. G, §1, is amended to read: 
A. The sum ofS330,000,000 consisting of not more than $275,000,000 for loans and 
up to $55,000,000 for use of bond proceeds to fund capital reserve funds for revenue 
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COMMITIEE AMENDMENT" A" to S.P. 324, L.D. I091 
obligation securities issued pursuant to this subchapter relating to loans for electric 
rate stabilization projects or loans for energy distribution system projects, except that 
the authority's maximum financial liability for any energy distribution system project 
may not exceed the limits established annually by the authority;' 
SUMMARY 
This amendment replaces the bilL The amendment: 
1. Modifies the definition of "energy distribution system project" under the laws 
governing the Finance Authority of Maine to include systems that distribute or transmit 
natural gas; 
2. Authorizes the Finance Authority of Maine to issue revenue obligation securities 
relating to energy distribution system projects under the program limits currently 
established in law for electric rate stabilization projects and provides that loans for energy 
distribution system projects may not exceed the limits established annually by the 
authority; 
3. Establishes standards under which the Finance Authority of Maine may approve 
providing financial assistance to energy distribution system projects; and 
4. Requires the Public Utilities Commission, upon request of the Finance Authority 
of Maine, to provide assistance in analyzing financial, economic or technical issues 
relating to projects regulated by the commission. At the request of the commission, the 
Finance Authority of Maine must assess the applicant a fee to reimburse the commission 
for any costs incurred by the commission that cannot be absorbed within its existing 
resources. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05119111 ;t.yac:.. 
LD 1091 
LR 1701(02) 
An Act To Expand the Availability of Natural Gas to the Citizens of Maine 
Fiscal Note for Bill as Amended by Committee Amendment" A" s·, '1 ~ 
Committee: Energy, Utilities and Technology 
Fiscal Note Required: Yes 
Fiscal Note 
Potential current biennium cost increase - Other Special Revenue Funds 
Potential current biennium revenue increase - Other Special Revenue Funds 
Fiscal Detail and Notes 
Additional costs to the Finance Authority of Maine (FAME) associated with making the required determination can be 
absorbed within existing budgeted resources. Any costs incurred by the Public Utilities Commission (PUC) in 
assisting FAME in analyzing financial, economic or technical issues relating to projects regulated by the PUC can be 
reimbursed by fees authorized in the committee amendment that can be assessed on applicants. 
LR 1701 (02) - Fiscal Note - Page 1 of I