An Act To Protect Jobs in the Forest Product Industry
Maine Legislature, Session 126, LD 1792
Committee: Energy, Utilities and Technology
Sponsors: STANLEY, THOMAS, DUNPHY, HOBBINS, CLEVELAND, JACKSON, YOUNGBLOOD

Legislative Document 
No. 1792 
H.P. 1283 
House of Representatives, February 25, 2014 
An Act To Protect Jobs in the Forest Product Industry 
(AFTER DEADLINE) 
(EMERGENCY) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
205. 
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed. 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative STANLEY of Medway. 
Cosponsored by Senator THOMAS of Somerset and 
Representatives: DUNPHY of Embden, HOBBINS of Saco, McCABE of Skowhegan, 
Senators: CLEVELAND of Androscoggin, JACKSON of Aroostook, YOUNGBLOOD of 
Penobscot. 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, through a series of private and special laws, the State has granted certain 
rights, privileges, immunities and franchises to Brookfield Renewable Energy Partners to 
construct, own and operate dams and hydroelectric and related facilities for the purpose 
of generating and transmitting electricity and to Great Northern Paper, LLC, and its 
predecessors in interest, including, but not limited to, the authority to build, own, operate 
and maintain paper production facilities; and 
Whereas, the waters of the State are owned in perpetuity by the State in trust for the 
people of the State; and 
Whereas, existing provisions in private and special law inhibit Great Northern 
Paper, LLC, as the owner of the paper production facility in the Town of Millinocket or 
the paper production facility in the Town of East Millinocket to receive revenue from the 
sale of electricity from the hydropower facilities when there is a cessation or reduction of 
paper production; and 
Whereas, Great Northern Paper, LLC, ceased paper production at the East 
Millinocket paper production facility in late January 2014 and intends to use the paper 
mill closure period to make necessary facility upgrades to improve efficiency and 
enhance the facility's long-term viability; and 
Whereas, Great Northern Paper, LLC, intends to employ as many of the East 
Millinocket paper production facility's employees as possible to perform the necessary 
upgrades and improvements during the current closure period; and 
Whereas, Brookfield Renewable Energy Partners receives a financial windfall by 
selling electricity to other purchasers at higher rates than the rates they would have 
received from Great Northern Paper, LLC, upon the cessation or reduction of paper 
production at Great Northern Paper, LLC; and 
Whereas, the ability of the East Millinocket paper production facility to financially 
benefit from the electricity revenue during the cessation or reduction of paper production 
would help the facility sustain its operations and remain viable during the closure; and 
Whereas, the Legislature finds that the Katahdin region will benefit by an increase 
in the electric transmission line capacity serving the region; 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: 
Sec. 1.  P&SL 2001, c. 45, §2 is amended to read: 
Sec. 2.  Conditions and limitations.  Within the period beginning at 
commencement of operation of increased electric transmission line capacity serving the 
Katahdin region and ending 15 years after the transfer to GNE, LLC of the Hydropower 
Facilities, if there is a Paper Mill Closing the owner of the Hydropower Facilities shall 
pay an annual amount of $75,000 to the economic development body serving the 
Katahdin region, as identified by the Department of Economic and Community 
Development, for each Paper Mill Closing.  Payments cease upon the resumption of 
paper production at the affected mill.  For purposes of this section, "increased electric 
transmission line capacity serving the Katahdin region" means any electric transmission 
lines that will allow the continuous transmission of electricity generated by the 
Hydropower Facilities to or from any consumer other than the paper production facility in 
Millinocket or the paper production facility in East Millinocket and having a capacity to 
transmit in excess of 70 megawatts. 
The owner of the Hydropower Facilities and the owner of the paper production 
facility in Millinocket or the paper production facility in East Millinocket may not enter 
into any agreement or understanding with each other under which the owner of the paper 
production facility in Millinocket or the paper production facility in East Millinocket 
receives revenue from the sale of electricity from the Hydropower Facilities and there is a 
Paper Mill Closing for the purpose of allowing or increasing the sale of the electricity 
from the Hydropower Facilities to any other purchaser or entity or into the wholesale 
electric market.  If the owner of the paper production facility in Millinocket or the paper 
production facility in East Millinocket enters into such an agreement or understanding, 
the owner of the paper production facility shall pay to the Treasurer of State, upon the 
Paper Mill Closing, an amount equal to the value of all tax credits or reimbursements 
relating to property associated with that paper production facility received by the owner 
pursuant to the Maine Revised Statutes, Title 36, chapter 915 after the effective date of 
this Act.  If the owner of the Hydropower Facilities enters into such an agreement or 
understanding, the owner of the Hydropower Facilities may not sell or transfer, pursuant 
to the authority granted under section 1 of this Act, any of the rights, privileges, 
immunities or franchises that have been granted by private and special law to Great 
Northern Paper, Inc. and its predecessors in interest and may not sell, transfer or transmit, 
pursuant to the authority granted under section 1 of this Act, electricity to any 3rd party. 
In order to assist the owner of the paper production facility in Millinocket or the 
paper production facility in East Millinocket to restart paper production at either of those 
facilities, including maintaining the tangible and intangible assets required for viable 
restart of either of those facilities during the period of closure, when the owner of the 
Hydropower Facilities sells electricity that it would have sold to the owner of the paper 
production facility in Millinocket or the paper production facility in East Millinocket to 
another purchaser or entity or into the wholesale electric market and the market rate for 
that electricity exceeds the purchase power agreement rate, thereby generating positive 
revenue derived from the cessation or reduction of paper production, the owner of the 
Hydropower Facilities shall transfer to the owner of the paper production facility in 
Millinocket or the paper production facility in East Millinocket the difference in revenue 
it would have received pursuant to the purchase power agreement rate and the amount 
received from the sale at market rates, as long as there is no reduction in labor force 
associated with the cessation or reduction of paper production, commencing after the 
restart of the East Millinocket paper production facility at the conclusion of the current 
Paper Mill Closing that began January 23, 2014. 
Sec. 2.  Retroactive application.  This Act applies retroactively to January 1, 
2014 regarding any sales that qualify for the payment transfer described in this Act. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
Current law restricts the ability of Great Northern Paper, LLC, to receive revenue 
from the sale of electricity from Brookfield Renewable Energy Partners when there is a 
cessation or reduction of paper production.  In order to allow the Millinocket or East 
Millinocket paper production facility to benefit from the electricity revenue during the 
closure period and help the facility sustain its operations and remain viable during the 
closure, this bill amends the law to require Brookfield Renewable Energy Partners to 
transfer to Great Northern Paper, LLC, certain windfall revenue received from sales of 
electricity available due to the cessation or reduction of paper production and sold to 
other purchasers or into the wholesale electric market as long as there is no reduction in 
labor force associated with the cessation or reduction of paper production, commencing 
after the restart of the East Millinocket paper production facility.