An Act To Amend the Finance Authority of Maine Act
Maine Legislature, Session 127, LD 1686
Committee: Labor, Commerce, Research and Economic Development
Sponsors: VOLK, HERBIG
Amends: 10 MRSA §962, 10 MRSA §963-A, 10 MRSA §1043, 10 MRSA §1044, 10 MRSA §1053

Legislative Document 
No. 1686 
S.P. 694 
In Senate, March 30, 2016 
An Act To Amend the Finance Authority of Maine Act 
(AFTER DEADLINE) 
Submitted by the Finance Authority of Maine and approved for introduction by a majority 
of the Legislative Council pursuant to Joint Rule 205. 
Reference to the Committee on Labor, Commerce, Research and Economic Development 
suggested and ordered printed. 
HEATHER J.R. PRIEST 
Secretary of the Senate 
Presented by Senator VOLK of Cumberland. 
Cosponsored by Representative HERBIG of Belfast. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  10 MRSA §962, sub-§2, as amended by PL 2011, c. 586, §1, is further 
amended to read: 
2.  Revenue obligation securities.  Issue revenue obligation securities to finance 
eligible projects, except that revenue obligation securities may not be issued for energy 
distribution system projects after or energy generating system projects unless the 
authority issued a certificate of approval for those eligible projects before January 1, 2018 
2020 pursuant to section 1044, subsection 13 subchapter 3; 
Sec. 2.  10 MRSA §963-A, sub-§13, ¶B, as amended by PL 1987, c. 141, Pt. B, 
§7, is further amended to read: 
B.  For a system which that does generate electricity, an energy generating system 
which, including wires, cables and other material and equipment necessary and 
convenient for the delivery of electricity from the electricity generating facility to the 
transmission and distribution utility system within the State, that uses biomass, peat, 
solar, waste, water and related dams, wind, wood or coal, and which that is owned, in 
whole or in part, by an individual, municipality, corporation, limited liability 
company or other governmental entity or business association which that qualifies as 
a cogenerator or small power producer under Title 35-A, chapter 33. 
Sec. 3.  10 MRSA §1043, sub-§2, ¶O, as amended by PL 2011, c. 655, Pt. MM, 
§8 and affected by §26, is further amended to read: 
O.  In the case of an energy distribution system project or an energy generating 
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 or the energy generating 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 Energy Office 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; 
(c)  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; 
(d)  Whether the applicant meets or exceeds industry average financial 
performance ratios commonly accepted in determining creditworthiness in 
that industry; 
(e)  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; 
(f)  Whether collateral securing the repayment obligation is reasonably 
sufficient under the circumstances; 
(g)  Whether the proposed project enhances the opportunities for economic 
development; 
(h)  The effect that the proposed project financing has on the authority's 
financial resources; 
(i)  The financial performance of similar projects; 
(j)  The need for the project, as determined by the Public Utilities 
Commission and as indicated by any comments provided by the Director of 
the Governor's Energy Office, 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; 
(l)  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; and 
(m)  The nature and extent of the applicant's equity contribution to payment 
of the costs of the project; such a contribution may not be less than 25% of 
the expected cost of the project. 
This paragraph is repealed January 1, 2018 2020. 
Sec. 4.  10 MRSA §1044, sub-§13, as enacted by PL 2011, c. 586, §4, is amended 
to read: 
13.  Limitation.  The authority may not issue revenue obligation securities for energy 
distribution system projects or energy generating system projects unless the authority 
issued a certificate of approval for the energy distribution system project or energy 
generating system project before January 1, 2018 2020.  Notwithstanding this subsection, 
revenue refunding securities may be issued to refund any outstanding revenue obligation 
securities. 
Sec. 5.  10 MRSA §1053, sub-§6, ¶A, as amended by PL 2011, c. 586, §5, is 
further amended to read: 
A.  The sum of $180,000,000 consisting of not more than $150,000,000 for loans and 
up to $30,000,000 for use of bond proceeds to fund capital reserve funds for revenue 
obligation securities issued pursuant to this subchapter relating to loans for electric 
rate stabilization projects, loans for energy generating system projects or loans for 
energy distribution system projects; 
SUMMARY 
This bill clarifies the authority for the issuance of revenue obligation securities 
pertaining to financing assistance for energy generating system projects under the 
Finance Authority of Maine Act. 
The bill prohibits the Finance Authority of Maine from issuing revenue obligation 
securities for an energy generating system project unless the authority has issued a 
certificate of approval before January 1, 2020.