An Act To Establish the Wood Energy Investment Program
Maine Legislature, Session 129, LD 0912
Committee: Energy, Utilities and Technology
Sponsors: JACKSON, FECTEAU, DAVIS, DILL, BERRY, DILLINGHAM, DUNPHY, RILEY, STEWART, WADSWORTH
Amends: 35-A MRSA §10124

Legislative Document
No. 912
S.P. 266
In Senate, February 19, 2019
An Act To Establish the Wood Energy Investment Program
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by President JACKSON of Aroostook.
Cosponsored by Representative FECTEAU of Biddeford and
Senators: DAVIS of Piscataquis, DILL of Penobscot, Representatives: BERRY of 
Bowdoinham, DILLINGHAM of Oxford, DUNPHY of Old Town, RILEY of Jay, STEWART 
of Presque Isle, WADSWORTH of Hiram.
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 Investment Program
1.  Establishment; purpose.  The Wood Energy Investment 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 industry and lower energy costs by increasing the 
efficient use of wood for energy production.
2.  Wood energy investment fund.  There is established in the custody of the trust a 
special nonlapsing fund, to be known as the wood energy investment fund. The wood 
energy investment fund consists of the following:
A.  Sums that may be transferred from the commission from the cost recovery fund 
established in Public Law 2015, chapter 483, section 1, subsection 5;
B.  Funds that the trust may receive from the State or from the Federal Government 
or funds from other agreements whose purpose is consistent with this section;
C.  Principal and interest received from the repayment of loans made from the wood 
energy investment fund; and
D.  Interest earned from the investment of wood energy investment fund balances.
3.  Program details.  The trust, through the Wood Energy Investment Program 
established in subsection 1, 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 investment fund established in subsection 2.  The trust shall require Wood 
Energy Investment Program participants to substantially share in the cost of projects 
funded under this section.  The trust shall seek to maximize the Wood Energy Investment 
Program's impact per dollar of expenditure from the wood energy investment 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 investment fund for the refurbishment or 
maintenance of existing facilities.
The trust shall develop activities promoting the Wood Energy Investment Program in 
consultation with the Finance Authority of Maine, established in Title 10, chapter 110.  
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; colocation development that increases the efficient use 
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 investment 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 investment fund.
SUMMARY
This bill establishes the wood energy investment fund and creates the Wood Energy 
Investment Program within the Efficiency Maine Trust.   The bill 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 investment 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 investment 
fund. It requires the trust to use funds from the fund, if there are any, to provide 
incentives and low-interest or no-interest loans for new wood-derived thermal energy or 
cogeneration projects.  It requires that the trust consult with the Finance Authority of 
Maine, when appropriate, in the development of any Wood Energy Investment Program 
incentives and the distribution of money from the wood energy investment fund.  It 
prohibits the use of funds for incentives or loans for the refurbishment or maintenance of 
existing facilities.