An Act Regarding a Biomass-generated Energy Purchase and Sale Agreement and Payments to Contractors
Maine Legislature, Session 128, LD 1745
Committee Amendment CA_A_S464 (Senate)
Amends: 35-A MRSA §10124

COMMITTEE AMENDMENT " (\" to S.P. 644, L.D. 1745, Bill, "An Act 
Regarding a Biomass-generated Energy Purchase and Sale Agreement and Payments to 
Contractors" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Establish the Wood Energy Program' 
Amend the bill by striking out everything after the title and before the summary and 
inserting the following: 
'Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, the Legislature intended, with the enactment of Public Law 2015, chapter 
483, to ensure that a biomass facility that was closed down would not qualify to 
participate in a competitive solicitation for biomass resources because it would fail to 
meet the requirement that a biomass facility was operational at least at a 50% capacity for 
days prior to the initiation of a competitive solicitation and continued to operate at that 
capacity except for planned or forced outages; and 
Whereas, a review of a contract for biomass resources to determine if contract 
requirements were met was just concluded at the Public Utilities Commission; and 
Whereas, the contract for biomass resources that was under review is with a 
biomass facility that received a contract in spite of the Legislature's intent to limit 
qualified applicants to those entities that were actively operating a biomass facility at the 
time a competitive solicitation was initiated; and 
Whereas, the Legislature wants to ensure that those funds provided in Public Law 
2015, chapter 483 that are not going to be paid to the biomass facility because not all 
contract requirements were met are used to support the forest products industry, 
especially since those requirements not met were those that would have directly benefited 
the forest products industry, and to do so this legislation must take effect immediately; 
and 
COMMITTEE AMENDMENT 
"' ... 
COMMITTEE AMENDMENT" A" to S.P. 644, L.D. 1745 
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. 35-A MRSA §10124 is enacted to read: 
§10124. Wood Energy Program 
1. Establishment; purpose. The Wood Energy Program is established within the 
trust to provide incentives and low-interest or no-interest loans in consultation with the 
Finance Authority of Maine, established in Title 10, chapter 110, in order to strengthen 
the State's forest products sector and lower energy costs by increasing the efficient use of 
wood for energy production. 
2. Wood energy fund. There is established in the custody of the trust a special 
nonlapsing fund, to be known as the wood energy fund. The wood energy fund consists 
of the following: 
A. Such sums that may be transferred from the Public Utilities Commission from the 
cost recovery fund established in Public Law 2015, chapter 483, section 1, subsection 
5· 
.e:.J. 
B. 
Other funds that the trust may receive from the State or from the Federal 
Government, or other agreements whose purpose is consistent with this section: 
C. Principal and interest received from the repayment of loans made from the wood 
energy fund: and 
D. Interest earned from the investment of fund balances. 
3. Program details. The trust through the Wood Energy Program shall provide 
incentives and low-interest or no-interest loans to businesses, municipalities, educational 
institutions and nonprofit entities in the State for the installation of new wood-derived 
thermal energy or cogeneration projects from the wood energy fund established in 
subsection 2. The trust shall require Wood Energy Program participants to substantially 
share in the cost of projects funded under this section. The trust shall seek to maximize 
the Wood Energy Program's impact per dollar of expenditure from the wood energy fund 
and shall set limits it determines prudent on the size of incentives. The trust may not 
provide incentives or loans from the wood energy fund for the refurbishment or 
maintenance of existing facilities. 
The trust shall develop activities promoting the Wood Energy Program in consultation 
with the Finance Authority of Maine. The trust shall consult with the Finance Authority 
of Maine, when appropriate, in its decisions to award incentives and loans. To the extent 
that funding is available, the trust shall offer technical assistance to eligible projects in a 
manner that is coordinated and consistent with other trust programs. 
For purposes of this subsection, "new wood-derived thermal energy or cogeneration 
project" includes, but is not limited to, wood-fueled combined heat and power 
cogeneration boiler installations; co-location development that increases the efficient use 
COMMITTEE AMENDMENT 
·Cb· 
"" 
COMMITTEE AMENDMENT"~ "toS.P. 644,L.D.1745 
of wood for energy production; conversion of fossil fuel fired boilers to wood-fueled 
boilers or boilers using biofuels derived from wood; and the installation of new wood-
fueled boilers or boilers using biofuels derived from wood. 
Sec. 2. Contract evaluation; fund transfer. If, in its annual evaluation of a 2-
year contract entered into pursuant to Public Law 2015, chapter 483, the Public Utilities 
Commission finds that an entity that was awarded a contract for biomass resources is not 
meeting contract requirements and therefore is not qualified to receive the full contract 
payment or any contract payment, those funds that would have been paid to the entity had 
contract requirements been met must be transferred to the wood energy fund established 
in the Maine Revised Statutes, Title 35-A, section 10124, subsection 2. Notwithstanding 
Public Law 2015, chapter 483, section 1, subsection 5, any funds remaining in the cost 
recovery fund established in Public Law 2015, chapter 483, section 1, subsection 5 that 
are not needed to pay above-market costs for biomass resources must be transferred to the 
wood energy fund. 
Sec. 3. Appropriations and allocations. The following appropriations and 
allocations are made. 
EFFICIENCY MAINE TRUST 
Wood Energy Fund N287 
Initiative: Allocates funds transferred from the Public Utilities Commission to establish 
the wood energy fund, to provide incentives and low-interest loans for new wood-derived 
thermal energy or cogeneration projects. 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
2017-18 
$266,027 
$266,027 
2018-19 
$500,000 
$500,000 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved.' 
SUMMARY 
This amendment is the majority report and it replaces the bill. It specifies that, if the 
Public Utilities Commission finds that an entity awarded a contract for biomass resources 
pursuant to Public Law 2015, chapter 483 is not meeting contract requirements and 
therefore is not qualified to receive the full contract payment or any contract payment, 
those funds that would have been paid had contract requirements been met must be 
transferred to the wood energy fund. It also specifies that any funds remaining in the cost 
recovery fund established in Public Law 2015, chapter 483, section 1, subsection 5 that 
are not needed to pay above-market costs for biomass resources must also be transferred 
by the Public Utilities Commission to the wood energy fund. It establishes the wood 
energy fund and creates the Wood Energy Program within the Efficiency Maine Trust. It 
requires the trust to use funds, if there are any, to provide incentives and low-interest or 
no-interest loans for new wood-derived thermal energy or cogeneration projects. It 
COMMITTEE AMENDMENT 
l.,.,. 
COMMITTEE AMENDMENT" A" to S.P. 644, L.D. 1745 
requires that the trust consult with the Finance Authority of Maine, when appropriate, in 
the development of any Wood Energy Program incentives and the distribution of money 
from the wood energy fund. It prohibits the use of funds for incentives or loans for the 
refurbishment or maintenance of existing facilities. 
The amendment also adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Revised: 04/11/18 .feac 
LD 1745 
LR 2474(02) 
An Act Regarding a Biomass-generated Energy Purchase and Sale Agreement and Payments to 
Contractors 
Fiscal Note for Bill as Amended by Committee .Amendment ·r C 
S-4lJ>~ 
Committee: Energy, Utilities and Technology 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2017-18 
FY 2018-19 
Projections 
FY 2019-20 
Projections 
FY 2020-21 
Appropriations/Allocations 
Other Special Revenue Funds 
Transfers 
Other Special Revenue Funds 
Fiscal Detail and Notes 
$266,027 
$0 
$500,000 
$0 
$0 
$0 
$0 
$0 
At the close of fiscal year 2015-16 $13,400,000 was transferred from the unappropriated surplus of the General Fund 
to the Cost Recove1y Fund at the Public Utilities Commission (PUC) to pay above-market costs of certain biomass 
contracts. This bill moves any money remaining from the transfer that is detennined by the PUC to not be needed for 
the original purpose to be credited to the newly created Wood Energy Fund within the Efficiency Maine Trust (EMT). 
The PUC has detem1ined that $766,027 is available to be directed into the Wood Energy Fund at this time. Transfers 
in addition to the $766,027 may be made in the future if the PUC makes certain detenninations. 
This bill includes Other Special Revenue Funds allocations to the Wood Energy Fund within the EMT of $266,027 in 
fiscal year 2017-18 and $500,000 in fiscal year 2018-19 to provide incentives and low or no-interest loans for new 
wood-derived thennal energy or co generation projects. Additional costs to the Finance Authority of Maine to consult 
with the EMT in the development of program incentives and distribution of funds from the wood energy fund where 
appropriate can be absorbed within existing budgeted resources. 
LR2474(02) - Fiscal Note - Page 1 of 1