An Act To Establish the High-efficiency Biomass Pellet Boiler Rebate Program and the Home Heating Conversion Fund
Maine Legislature, Session 126, LD 1468
Committee: Energy, Utilities and Technology
Sponsors: JACKSON, HOBBINS, BOYLE, SAVIELLO, CROCKETT, DILL, FREDETTE, HARVELL, WILLETTE
Amends: 12 MRSA §1848, 12 MRSA §1849, 35-A MRSA §10123

Legislative Document 
No. 1468 
S.P. 542 
In Senate, April 30, 2013 
An Act To Establish the High-efficiency Biomass Pellet Boiler 
Rebate Program and the Home Heating Conversion Fund 
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed. 
DAREK M. GRANT 
Secretary of the Senate 
Presented by Senator JACKSON of Aroostook. 
Cosponsored by Representative HOBBINS of Saco and 
Senators: BOYLE of Cumberland, SAVIELLO of Franklin, Representatives: CROCKETT of 
Bethel, DILL of Old Town, FREDETTE of Newport, HARVELL of Farmington, McCABE of 
Skowhegan, WILLETTE of Mapleton. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  12 MRSA §1848, sub-§1, as enacted by PL 1997, c. 678, §13 and 
amended by PL 2011, c. 657, Pt. W, §7, is further amended to read: 
1.  Sale of resources.  The division may sell severed timber and other products, 
including, but not limited to, wood and timber necessary for use in the operation of a 
mine, severed grass and other wild foods, maple sap and syrup, crops, timber sustainably 
harvested and sold to fund certain bond payments as required by law and sand and gravel 
for use in the construction of public roads or for any other purpose the director considers 
consistent with the purposes of this subchapter. 
Sec. 2.  12 MRSA §1849, sub-§1, as amended by PL 2011, c. 655, Pt. KK, §11 
and affected by §34 and amended by c. 657, Pt. W, §7, is further amended to read: 
1.  Revenue sources.  Except as provided in paragraph A or to fund certain bond 
payments as required by law, the division must receive all money, securities and other 
things of value accruing to the State: from the sale of timber and grass and other rights 
and things of value from the public reserved lands under the care, custody, control or 
management of the division; in payment for timber, grass and other things of value cut or 
taken by trespassers; from forfeiture of a bond or a deposit when a contractor does not 
fulfill the terms of the contract or comply with state regulations; or as a result of a 
compromise or settlement of any claim. 
A.  The first $20,000 in the aggregate of any money accruing from the alienation of 
rights to mine upon public reserved land, or other income arising out of mining 
operations, that is actually received during any fiscal year, and every portion thereof 
accruing from these mining operations, must be paid to the Bureau of Geology, 
Natural Areas and Coastal Resources. 
Sec. 3.  35-A MRSA §10123 is enacted to read: 
§10123.  High-efficiency Biomass Pellet Boiler Rebate Program 
1.  High-efficiency Biomass Pellet Boiler Rebate Program established.  The High-
efficiency Biomass Pellet Boiler Rebate Program, referred to in this section as "the 
program" and administered by the trust, is established. 
2.  Program eligibility.  On or after the effective date of this section, an owner or 
occupant of a building who installs a high-efficiency, bulk-fuel-fed, wood pellet central 
heating system or boiler that has a fuel storage capacity of 3 tons or greater either as an 
initial heating source or to replace an outdoor wood boiler that does not meet air quality 
standards as established by the federal Environmental Protection Agency is eligible to 
participate in the program. The trust shall develop an application form and process to 
determine program eligibility. For the purposes of this subsection, "high-efficiency" 
means having an efficiency rating of 80% or higher. 
3.  Program benefits.  A program participant may receive one rebate per building for 
a central heating system or boiler under subsection 2 in the amount of 30% of the cost of 
the central heating system or boiler or $6,000, whichever is less.  The trust shall disburse 
rebates under this subsection from the Home Heating Conversion Fund under subsection 
4. 
4.  Home Heating Conversion Fund.  The Home Heating Conversion Fund, referred 
to in this subsection as "the fund" and administered by the trust, is established. The 
purpose of the fund is to carry out the program. The trust may receive and deposit in the 
fund funds from any revenue bonds issued for the purposes of this subsection and any 
appropriations or allocations, gifts, grants or donations to the fund.  The trust may invest 
proceeds of the fund in an interest-bearing account.  Any interest earned on funds in the 
fund must be credited to the fund, and funds not spent in any fiscal year do not lapse but 
carry over to the next fiscal year. Expenses for administration of the fund are paid for 
from the fund and all other expenditures from the fund are made as follows: 
A.  Up to 10% of the proceeds in the fund may be used for expenses incurred in 
administering the program; 
B.  Five percent of the proceeds in the fund must be used to replace outdoor wood 
boilers that do not meet air quality standards as determined by the Department of 
Environmental Protection; 
C.  Up to $25,000 must be used to conduct a one-year review and a 5-year review of 
the program.  The reviews must be conducted by an appropriate 3rd party; and 
D.  The balance in the fund remaining after the expenditures under paragraphs A, B 
and C must be used to fund the program. 
Fund proceeds that have not been expended by August 1, 2023 must be used for the 
retirement of any revenue bonds issued to fund the fund with any remaining balance 
lapsing to the Office of the Treasurer of State for the retirement of general obligation 
bonds. 
Sec. 4.  Efficiency Maine Trust to issue revenue bonds.  In accordance with 
the Maine Revised Statutes, Title 35-A, section 10105, subsection 2, the Efficiency 
Maine Trust may issue up to $20,000,000 in revenue bonds to fund the Home Heating 
Conversion Fund under Title 35-A, section 10123, subsection 4.  Bonds issued pursuant 
to this section, including any notes or other evidences of indebtedness or obligations 
designated as bonds issued pursuant to this section, may not be deemed to be a debt of the 
State or a pledge of the full faith and credit of the State and must be paid exclusively from 
funds provided from the sale of sustainably harvested timber from public reserved lands 
pursuant to Title 12, chapter 220, subchapter 4.  All bonds issued pursuant to this section 
must have a statement on their face that the State is not obligated to pay the bonds or the 
interest on the bonds and that the full faith and credit of the State is not pledged to the 
payment of the principal of or interest or premium on the bonds. 
Sec. 5.  Commissioner of Agriculture, Conservation and Forestry to 
sustainably harvest timber from public reserved lands.  Pursuant to the Maine 
Revised Statutes, Title 12, section 1848, subsection 1, the Commissioner of Agriculture, 
Conservation and Forestry shall sustainably harvest timber from public reserved lands the 
sale of which results in adequate revenue to fulfill the obligations under revenue bonds 
issued by the Efficiency Maine Trust to fund the Home Heating Conversion Fund, under 
Title 35-A, section 10123, subsection 4, pursuant to this Act and shall pay any revenue 
bond obligations when due. 
SUMMARY 
This bill establishes the High-efficiency Biomass Pellet Boiler Rebate Program, 
administered by the Efficiency Maine Trust, to give rebates to owners or occupants of 
buildings who install high-efficiency wood pellet boilers or heating systems in the 
buildings.  The rebates are paid from the Home Heating Conversion Fund, administered 
by the Efficiency Maine Trust, which also provides funds to replace outdoor wood boilers 
that do not meet air quality standards as determined by the Department of Environmental 
Protection. The Home Heating Conversion Fund is funded by $20,000,000 in revenue 
bonds issued by the Efficiency Maine Trust and paid for by the sale of sustainably 
harvested timber from public reserved lands.