An Act To Allow the Public Utilities Commission To Contract for Liquefied Natural Gas Storage and Distribution
Maine Legislature, Session 127, LD 0881
Committee: Energy, Utilities and Technology
Sponsors: HOBBINS
Amends: 35-A MRSA §1902, 35-A MRSA §1904-A

Legislative Document 
No. 881 
H.P. 600 
House of Representatives, March 12, 2015 
An Act To Allow the Public Utilities Commission To Contract for 
Liquefied Natural Gas Storage and Distribution 
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative HOBBINS of Saco. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  35-A MRSA §1902, sub-§3-A is enacted to read: 
3-A.  Liquefied natural gas contract or LNG contract.  "Liquefied natural gas 
contract" or "LNG contract" means a contract for liquefied natural gas stored and 
distributed at a central storage and production facility that has the capability of 
distributing natural gas directly to electricity generators fueled by natural gas during 
periods of peak system electricity usage. 
Sec. 2.  35-A MRSA §1904-A is enacted to read: 
§1904-A.  Liquefied natural gas contracts 
The commission in consultation with the Public Advocate and Governor's Energy 
Office may execute an LNG contract in accordance with this section. The commission 
may execute a contract only with a liquefied natural gas facility capable of providing a 
minimum of 100,000 dekatherms per day of natural gas to electricity generation plants 
fueled by natural gas. Distribution may be by either pipeline or direct trucking. 
1.  LNG contract requirements.  Before executing an LNG contract, the 
commission shall ensure the following requirements are met: 
A.  The facility will be located in a rural, low-income community within the State; 
B.  A study by an independent 3rd party has been conducted and determines the 
facility will generate a minimum of 200 direct and indirect jobs exclusive of jobs 
created for the actual construction of the facility; and 
C.  If feasible, the facility will be built by a qualified construction firm based in the 
State. 
2.  Approval by the Governor.  The commission may not execute or direct the 
execution of an LNG contract unless the Governor has in writing approved the execution 
of the LNG contract. 
SUMMARY 
This bill allows the Public Utilities Commission to contract for the storage and 
distribution of liquefied natural gas to provide a source of natural gas during peak winter 
months. This bill defines a "liquefied natural gas contract" and provides that, prior to 
entering into a contract, the Public Utilities Commission must ensure that a liquefied 
natural gas facility will be located in a rural, low-income community within the State, a 
study has been conducted by an independent 3rd party showing the construction of the 
facility will result in a minimum of 200 direct and indirect jobs, exclusive of jobs directly 
linked to the actual construction of the facility and, if feasible, the facility will be 
constructed by a qualified construction firm based in the State. 
This bill also requires that before the Public Utilities Commission executes or directs 
the execution of an LNG contract, the Governor must approve in writing the contract.