An Act To Create the Maine Generation Authority
Maine Legislature, Session 130, LD 1634
Committee: Energy, Utilities and Technology
Sponsors: GROHOSKI, WOODSOME, BLUME, CUDDY, DIAMOND
Amends: 5 MRSA §12004-F, 35-A MRSA §3210-H, 35-A MRSA §10128

Legislative Document
No. 1634
H.P. 1218
House of Representatives, April 28, 2021
An Act To Create the Maine Generation Authority
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative GROHOSKI of Ellsworth.
Cosponsored by Senator WOODSOME of York and
Representatives: BLUME of York, CUDDY of Winterport, Senator: DIAMOND of 
Cumberland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §12004-F, sub-§19 is enacted to read:
19.  
Maine Generation Authority Board 
Legislative Per Diem
35-A MRSA§4205
Sec. 2.  35-A MRSA §3210-H is enacted to read:
§3210-H.  Maine Generation Authority surcharge
Notwithstanding any provision of this Title to the contrary, the commission shall 
ensure that the Maine Generation Authority surcharge as calculated pursuant to section 
4221, subsection 4 is included in the retail rates of all electric ratepayers of all transmission 
and distribution utilities in the State.
Sec. 3.  35-A MRSA c. 42 is enacted to read:
CHAPTER 42
MAINE GENERATION AUTHORITY
§4201.  Short title
This chapter may be known and cited as "the Maine Generation Authority Act."
§4202.  Findings and declaration of purpose
1.  Public interest.  It is declared to be in the public interest and to be the policy of the 
State to establish the Maine Generation Authority to issue revenue bonds that are backed 
by all electric ratepayers in the State and paid for through rates established for delivery 
service by the commission to achieve the purpose stated in subsection 2.
2.  Purpose.  It is the purpose of this chapter to facilitate the financing and ownership 
by the authority of:
A.  Energy generation projects that are located in the State that generate electricity 
using renewable fuels or sources of energy, including, but not limited to, solar, wind, 
water, wave, tidal and biomass that produce zero greenhouse gas emissions or, for those 
projects located in federal waters in the Gulf of Maine, are capable of delivering all 
electricity generated into Maine in amounts sufficient to meet or offset residential and 
business energy requirements; and
B.  Electricity storage systems located in Maine that can store sufficient quantities of 
electricity generated by renewable generation projects to enable the State's electricity 
grid to meet total demands for electricity at all times in the State.
§4203.  Definitions
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings.
1.  Authority.  "Authority" means the Maine Generation Authority created in section 
4204.
2.  Board.  "Board" means the Maine Generation Authority Board established pursuant 
to section 4205.
3.  Bond.  "Bond" means and includes a bond or note or other evidence of indebtedness 
authorized under this chapter, whether issued under or pursuant to a bond resolution, trust 
indenture or loan or other security agreement.
4.  Energy storage system.  "Energy storage system" means a facility that achieves 
commercial operations after January 1, 2022 that uses mechanical, chemical or thermal 
processes for absorbing energy and storing it for a period of time for use at a later time.
5.  Environmental attributes.  "Environmental attributes" means any and all credits, 
benefits, emissions reductions, offsets and allowances attributable to a renewable 
generation project, the production of electrical energy from the renewable generation 
project and its displacement of conventional energy generation, including:
A.  Any avoided emissions of pollutants to the air, soil or water such as sulfur oxides, 
nitrogen oxides, carbon monoxide and other pollutants;
B.  Any avoided emissions of carbon dioxide, methane, nitrous oxide, 
hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride and other greenhouse gases 
that have been determined by the United Nations Intergovernmental Panel on Climate 
Change, or otherwise by law, to contribute to the actual or potential threat of altering 
the Earth's climate by trapping heat in the atmosphere; and
C. Any reporting rights related to avoided emissions issued by the New England Power 
Pool Generation Information System.
6.  Gulf of Maine.  "Gulf of Maine" means that part of the Atlantic Ocean extending 
east from the shore of Maine for 200 nautical miles between 42 degrees north latitude and 
degrees north latitude.
7. Interconnection transmission facility.  "Interconnection transmission facility" 
means a transmission line, together with all associated equipment and facilities, that is 
constructed solely for the purpose of electrically and physically interconnecting a 
renewable generation project or energy storage system to the transmission system of a 
transmission and distribution utility. 
8. ISO-NE region.  "ISO-NE region" means the region in which the New England bulk 
power system operated by the independent system operator of the New England bulk power 
system or a successor organization is located.
9.  New England Power Pool Generation Information System.  "New England 
Power Pool Generation Information System" means the generation information database 
and certificate system operated by the New England Power Pool, as defined in section 4103, 
its designee or successor entity, that accounts for the generation attributes of electricity 
generated within New England.
10.  Output.  "Output" means any of the energy-related products produced by a 
renewable generation project or energy storage system including energy, capacity and 
ancillary services.
11.  Renewable generation project.  "Renewable generation project" means a facility 
that achieves commercial operations after January 1, 2022 that generates electricity using 
a fuel or source of energy that is renewable and that does not emit carbon dioxide when 
used to generate electricity, including hydroelectric generators, onshore or offshore wind 
power installations, solar photovoltaic arrays and installations, geothermal installations, 
tidal power generators and biomass generators that are fueled using sustainably acquired 
biomass fuels.
12.  Revenue fund.  "Revenue fund" means a fund established by a resolution 
authorizing bonds of the authority as the initial depositary for all operating income of the 
authority and that may be used to pay certain operating expenses that are defined by bond 
resolutions, before further transfers are made to funds for debt service, reserve maintenance 
and general reserves.
§4204.  Maine Generation Authority established
There is established a public body corporate and politic to be known as "the Maine 
Generation Authority."  The authority is an instrumentality of the State exercising public 
and essential government functions and having perpetual succession.  The exercise by the 
authority of the powers conferred by this chapter is an essential governmental function of 
the State.
§4205.  Board
The authority is managed by the Maine Generation Authority Board as described in 
this section.
1.  Qualifications.  The 8 members of the board are as follows:
A.  The director of the Governor's Energy Office, established in Title 2, section 9, or 
its successor, who is a nonvoting member and serves ex officio;
B. The director of the authority, appointed by the board pursuant to section 4206, who 
is a nonvoting member and serves ex officio; and
C.  The following 6 voting members, appointed by the Governor and subject to review 
by the joint standing committee of the Legislature having jurisdiction over energy and 
utility matters and to confirmation by the Senate:
(1)  Two members, one from each of the State's 2 congressional districts; and
(2)  Four at-large members who are residents of the State.
2.  Term.  Except for initially appointed members, each member appointed by the 
Governor under subsection 1, paragraph C holds office for 6 years or until a qualified 
successor has been confirmed.  Each term expires on March 31st of the last year of the 
term.  The terms of the initially appointed members must be staggered so that no more than 
one term expires in any given year.  A member may be reappointed.
3.  Vacancy.  The term of a member appointed by the Governor is vacated if the 
member dies, resigns, becomes incapacitated, is removed for cause or no longer meets a 
requirement under which the member was appointed.  By majority vote of the remaining 
members, the board may declare and bring to the Governor's attention any circumstances 
creating such a vacancy.  When such a vacancy occurs, the Governor may appoint a 
member to serve only for the unexpired portion of the term vacated.
4.  Removal.  The Governor may remove a member appointed by the Governor from 
the board only for gross misconduct.  For purposes of this subsection, "gross misconduct" 
means financial malfeasance, a deliberate or reckless failure to attend to duties required for 
governance of the authority or unexcused absences from 4 or more meetings of the board 
in a 12-month period.
5.  Chair.  The Governor may appoint the chair from among members appointed to the 
board by the Governor.  In the absence of such appointment or if the position of chair is 
vacated, the board may elect a chair from among the members of the board.  The chair must 
be appointed or elected for a one-year term at the board's annual meeting.
6.  Annual meetings; quorum; action.  The board shall convene annually at a meeting 
held in September and more often as determined by the chair.  Four voting members of the 
board constitute a quorum.  Four votes are required to act on any matter, although a lesser 
number may adjourn a meeting.
7.  Compensation.  Voting members of the board appointed by the Governor are 
compensated in accordance with Title 5, section 12004-F, subsection 19.
8.  Executive director.  At its annual meeting each September, the board shall appoint 
or reappoint an executive director who is not a member of the board.  An executive 
director's first appointment is subject to review by the joint standing committee of the 
Legislature having jurisdiction over energy and utility matters and to confirmation by the 
Senate.
9.  Secretary and treasurer.  At its annual meeting each year, the board shall elect a 
secretary and a treasurer, who may be the same person and need not be a member of the 
board.  The secretary and treasurer are responsible in their respective capacities directly to 
the board and may be relieved of their duties only by the board.  Before the issuance of any 
bonds under this chapter, the secretary and the treasurer shall each execute a security bond 
in the penalty of $50,000.  Each security bond must be approved by the Attorney General 
and conditioned upon the faithful performance of the duties of the secretary and treasurer.  
The bond must be filed in the office of the State Auditor.
10.  Compliance audits.  In addition to retaining an annual auditor, the board shall 
retain a separate compliance auditor who shall:
A.  Periodically monitor the authority's financial operations and management controls;
B.  Test selected transactions for policy compliance;
C.  Make quarterly findings directly to the board and to the joint standing committee 
of the Legislature having jurisdiction over energy and utility matters;
D.  Recommend to the board any necessary or advisable improvements to management 
systems, policies or controls; and
E.  Render an annual compliance and management report in conjunction with the report 
of the authority's annual auditor.
§4206.  Administration of the authority; director
1. Appointment of director; compensation.  The board shall appoint, using a full and 
competitive search process, a qualified full-time director of the authority.  The director of 
the authority serves at the pleasure of the board.  The board shall establish the rate and 
amount of compensation of the director.
2.  Responsibilities of director.  The director appointed by the board pursuant to 
subsection 1:
A.  Serves as an ex officio member of the board and as the liaison between the board 
and the joint standing committee of the Legislature having jurisdiction over energy and 
utility matters;
B.  Is responsible for:
(1)  Establishing an office for the authority;
(2)  Hiring and organizing staff for the authority and determining their 
qualifications, duties and compensation;
(3)  Managing the authority's activities, programs, services and staff; and
(4) Performing other duties as the board considers appropriate; and
C.  May delegate to employees of the authority any powers and duties that the director 
considers appropriate.
§4207.  Powers of authority
The authority may:
1.  Suits.  Sue and be sued;
2.  Seal.  Have a seal and alter the seal at pleasure;
3.  Personal property.  Acquire, hold and dispose of personal property for the 
authority's purposes;
4.  Real property, rights or easements.  Acquire in the name of the authority, by 
purchase, eminent domain, lease or otherwise, real property and rights or easements therein 
located in the State or in federal waters in the Gulf of Maine determined by the authority 
to be necessary or desirable for its purposes, and use that property for the authority's 
purposes;
5.  Eminent domain.  Acquire real property as described in subsection 4 by the 
exercise of the power of eminent domain in the manner provided by section 4210;
6.  Fees.  Charge to and collect fees from all electric ratepayers in the State and use the 
proceeds of such fees for the purposes provided in this chapter, both as subject to and in 
accordance with such agreement with bondholders as allowed pursuant to this chapter;
7.  Contracts.  Make contracts with the United States or any instrumentality or agency 
of the United States; another state or any instrumentality, municipality or agency of another 
state, including multi-state entities composed of other state agencies; this State or any of 
its agencies, instrumentalities or municipalities; public corporations or bodies existing 
therein; private corporations; partnerships; associations; and individuals for the:
A. Construction of renewable generation projects or electricity storage systems;
B.  Operations and maintenance of renewable generation projects or electricity storage 
systems owned by the authority; and
C.  Provision of support services to the authority, including energy planning, energy 
market sales, energy contract review, accounting, legal and other types of 
administrative services, including start-up funding;
8.  Grants.  Accept grants and the cooperation of the United States or any agency 
thereof in the construction, maintenance, reconstruction, operation and financing of the 
authority and engage in any and all activities necessary to avail itself of that aid and 
cooperation and repay any such grant or portion thereof;
9.  Employees.  Except as prohibited by section 4208, subsection 5, employ such 
assistants and agents; engineering, energy, architectural and construction experts; 
inspectors; attorneys; and such other employees as the authority considers necessary or 
appropriate for its purposes.
10.  Additional powers.  Exercise any of its powers in the public domain of the United 
States, unless the exercise of those powers is not permitted by the laws of the United States;
11. Debt.  Borrow money, make, issue and sell at public or private sale negotiable 
notes, bonds and other evidences of indebtedness or obligations of the authority for the 
purposes set forth in this chapter and secure the payment of that obligation or any part 
thereof by pledge of all or any of the operating revenues of the authority;
12.  Loan or security agreements.  Enter into loan or security agreements with one or 
more lending institutions, including, but not limited to, banks, insurance companies and 
pension funds, or trustees for those institutions for purposes for which bonds may be issued 
and exercise with respect to such loan or security agreements all of the powers delineated 
in this chapter for the issuance of bonds;
13.  Interim certificates.  Prior to the issuance of any bonds, issue interim certificates 
in such manner and with such conditions as the authority may determine to be exchanged 
for those bonds when issued;
14.  Legal services.  Use the Department of the Attorney General for general counsel, 
bond counsel, labor defense, workers' compensation, legislative issues and other required 
legal services on a fee-for-service basis at rates determined by the Attorney General;
15.  Efficiency Maine Trust.  Pursuant to section 4221, subsections 2 and 3, use the 
Efficiency Maine Trust established in section 10103; and
16.  Other lawful action.  Take all lawful action necessary and incidental to the powers 
set out in this section.
§4208.  Authority prohibitions
The authority is prohibited from:
1. Energy trading.  Energy trading, except to the extent necessary to sell the electricity 
generated by renewable generation projects or stored in energy storage systems owned by 
the authority;  
2.  Energy contracting.  Entering into any short-term or long-term energy contracts 
for speculation or hedging purposes;
3.  Provision of retail electricity service.  Providing retail electricity service to any 
electricity ratepayer located in the State or acting in any manner as a competitive electricity 
provider, as defined in section 3201;
4.  Sale or disposal of environmental attributes associated with renewable 
generation project.  Selling or otherwise disposing of any environmental attribute in any 
form derived from electricity generated by a renewable generation project owned by the 
authority, except to a competitive electricity provider solely for the purpose of meeting 
such provider's resource portfolio obligations related to load served in the State or through 
the retirement of such environmental attribute for the authority's account; and
5.  Hiring.  Hiring as an employee of the authority any person to provide operations or 
maintenance services for any renewable generation project or energy storage system owned 
by the authority.
§4209.  Obligations of authority
1.  General obligations.  All expenses incurred in carrying out this chapter must be 
paid solely from funds provided to the authority pursuant to this chapter, and liability or 
obligation may not be incurred under this chapter beyond the extent to which money has 
been provided pursuant to this chapter.
2. Contracting.  This subsection applies to the authority when entering into any 
contracts.
A.  Contractors and subcontractors on all authority construction and reconstruction 
projects and for all operations and maintenance activities must be equal opportunity 
employers and, in the case of any contracts in excess of $250,000, shall also pursue, in 
good faith, affirmative action programs designed to remedy underrepresentation of 
minorities, women and persons with disabilities.  The authority may by rule provide 
for the enforcement of this requirement.
B.  All authority construction and reconstruction projects are governed by the 
prevailing wage provisions in Title 26, chapter 15.
C.  Except as otherwise permitted by law, contracts for goods and services must be 
awarded by the authority through a competitive procurement process.  The requirement 
for competitive procurement may be waived:
(1)  By the executive director when the purchase is for $50,000 or less and the 
executive director determines that procurement from a single source is the most 
economical, effective and appropriate means of fulfilling a demonstrated need;
(2)  By the chair of the board when the chair determines that procurement is 
required by a state of emergency; or
(3)  By the board pursuant to a written finding that:
(a)  Procurement from a single source is the most economical, effective and 
appropriate means of fulfilling a demonstrated need;
(b)  The service or product is uniquely available from only one source; or
(c)  Only one known source can meet the authority's needs within the required 
time.
D. When bond indentures require the authority to appoint an engineering consultant 
who may thereby gain a disproportionate advantage when competing for other design 
and inspection contracts, the authority shall adopt policies to mitigate this advantage 
and promote a fair distribution of the available work among qualified competing 
applicants.
3.  Bonds not to be pledges of State.  Authority revenue bonds issued under this 
chapter, including any notes or other evidences of indebtedness or obligations defined to 
be bonds under this chapter, may not be deemed to be a debt of the State or a pledge of the 
faith and credit of the State, but these bonds are payable exclusively from the fund provided 
in this chapter for that purpose from operating revenues.  The bonds must contain a 
statement on their face that the State is not obligated to pay the bond or the interest on the 
bond and that the faith and credit of the State is not pledged to the payment of the principal 
of or interest or premium on such bonds.  The issuance of bonds or refunding of bonds 
under this chapter may not directly or indirectly or contingently obligate the State to levy 
or to pledge any form of taxation for the bonds or to make any appropriation for the 
payment of the bonds or the interest or premium on the bonds.
4.  Annual report.  The authority shall report by December 1st of each year to the joint 
standing committee of the Legislature having jurisdiction over energy and utility matters.  
The report must include:
A.  A description of actions taken by the authority pursuant to this chapter during the 
preceding 12 months; 
B.  Audited financial statements for the prior fiscal year;
C.  The charges or fees assessed by the authority on all electric ratepayers in the State;
D.  An assessment of whether the renewable generation projects and energy storage 
systems owned by the authority are sufficient to enable the authority to fulfill its 
purpose;
E.  A 5-year and 10-year plan for procuring renewable generation projects and energy 
storage systems; and
F.  Recommendations for changes to the laws relating to the development of renewable 
generation projects and energy storage systems the authority determines to be 
necessary to enable the State to meet its climate goals.
The annual report must be approved by the board before the report is presented to the joint 
standing committee of the Legislature having jurisdiction over energy and utility matters.
§4210.  Property of authority; eminent domain
The authority shall hold and acquire property as follows. 
1.  Property of authority.  All property of the authority and all property held in the 
name of the State pursuant to the provisions of this chapter are exempt from levy and sale 
by virtue of any execution, and an execution or other judicial process is not a valid lien 
upon property of the authority held pursuant to the provisions of this chapter.
2.  Sale or lease of property.  The authority may not lease, sell or otherwise convey, 
or allow to be used, any of its real or personal property or easements in that property, 
buildings or structures, for commercial purposes, except for electrical power, telegraph, 
telephone, communications, water, sewer or pipeline facilities installed or erected by the 
authority, or permitted to be installed or erected by the authority.
3.  Use of eminent domain.  Whenever a reasonable price cannot be agreed upon for 
the purchase or lease of real property found necessary for the purposes of the authority or 
whenever the owner is legally incapacitated or is absent or is unable to convey valid title 
or is unknown, the authority may acquire by eminent domain any such real property 
whether wholly or partly constructed or interest or interests therein and any land, rights, 
easements and other property the authority determines necessary or convenient.  Title to 
any property taken by eminent domain must be in the name of the authority.
4.  Entry upon lands.  The authority and its authorized agents and employees may 
enter upon any lands, waters and premises in the State for the purpose of making surveys, 
soundings, drillings and examinations as the authority determines necessary or convenient 
for the purpose of this chapter and the entry may not be deemed a trespass.
5.  Authority for transfers of interest in land to authority.  Notwithstanding any 
provision of law to the contrary, all counties, municipalities and other political subdivisions 
and all public agencies and commissions of the State and all public service corporations 
and districts may lease, lend, grant or convey to the authority, upon the authority's request, 
on such terms and conditions as the proper authorities of the counties, municipalities, 
political subdivisions, agencies, commissions, public service corporations and districts 
determine reasonable and fair and without the necessity for any advertisement, order of 
court or other action or formality other than the regular and formal action of the authorities 
concerned, any real or personal property or rights therein that may be necessary or 
convenient to the effectuation of the authorized purposes of the authority, including real 
and personal property or rights therein already devoted to public use. As used in this 
subsection, the term "public service corporation" includes every public utility as defined in 
section 102, subsection 13 and every corporation referred to in Title 13-C.
§4211.  Issuance of bonds
The authority may issue bonds as provided in this section.
1.  Revenue bonds.  In addition to bonds outstanding pursuant to any other provision 
of this chapter, the authority may provide by resolution from time to time for the issuance 
of revenue bonds, including notes or other evidences of indebtedness or obligations defined 
to be bonds under this chapter, but not exceeding $1,500,000,000 in the principal amount 
at any one time outstanding, exclusive of refunding, for any lawful purpose of the authority.
2.  Bonds; negotiable; not debt of State.  The bonds of the authority do not constitute 
a debt of the State or of any agency or political subdivision of the State and are payable 
solely from the operating revenues of the authority.  Notwithstanding any provision of law 
to the contrary, any bonds issued pursuant to this chapter are fully negotiable.  If any of the 
members or officers of the authority whose signatures appear on the bonds or coupons 
cease to be members or officers before the delivery of the bonds, the signature is, 
nevertheless, valid and sufficient for all purposes as if the members or officers had 
remained in office until that delivery.
Whether or not the bonds are of such form and character as to be negotiable instruments 
under Title 11, Article 8-A, the bonds are hereby made negotiable instruments within the 
meaning of and for all the purposes of Title 11, Article 8-A, subject only to the provisions 
of the bonds for registration.
It is the intention of this chapter that any pledge made by the authority in respect to the 
bonds or notes is valid and binding from the time when the pledge is made, that the funds 
or property so pledged and thereafter received by the authority is immediately subject to 
the lien of that pledge without any physical delivery of those funds or property or further 
act and that the lien of such a pledge is valid and binding as against all parties having claims 
of any kind in tort, contract or otherwise against the authority irrespective of whether those 
parties have notice of that lien.  The resolution, trust indenture or any other instrument by 
which a pledge is created need not be recorded.
The authority may, in the resolution authorizing prospective issues, provide as to those 
bonds:
A.  The manner of executing the bonds and coupons;
B.  The form and denomination of the bonds;
C.  Maturity dates;
D.  The interest rate or rates on the bonds, which may be fixed or variable or a 
combination of both;
E.  For the redemption prior to maturity and the premium payable for the bonds;
F.  The place or places for the payment of interest and principal;
G.  For registration if the authority determines it to be desirable;
H.  For the pledge of all or any of the operating revenues of the authority for securing 
payment;
I.  For the replacement of lost, destroyed or mutilated bonds;
J.  For the setting aside of revenue funds and sinking funds and the regulation and 
disposition of these revenues and funds and for limitations on reserves, if any, 
established for capital outlay from operating revenues;
K.  For limitations on the issuance of additional bonds;
L.  For the procedure, if any, by which the contract with the bondholders may be 
abrogated or amended;
M.  For the manner of sale, which may be public or private, and purchase of the bonds; 
N.  For covenants against pledging any or certain of the operating revenues of the 
authority;
O.  For covenants fixing and establishing the charges and fees levied by the authority 
on all electric ratepayers in the State so as to provide at all times funds that will be 
sufficient:
(1)  To pay all costs of operation and maintenance and necessary repairs of the 
authority's renewable generation projects and energy storage facilities;
(2)  To meet and pay the principal and interest of all such bonds as they severally 
become due and payable;
(3)  For the creation of reserves for the principal and interest of all such bonds and 
for the meeting of contingencies and the operation and maintenance costs of the 
authority as the authority determines; and
(4)  To pay other lawful charges or costs for which the authority is responsible;
P.  For other covenants as to charges and fees as the authority determines;
Q.  For covenants as to the rights, liability, powers and duties arising upon the breach 
by the authority of any covenant, condition or obligation;
R.  For covenants as to the bonds to be issued and as to the issuance of the bonds in 
escrow and otherwise and as to the use and disposition of the proceeds of the bonds;
S.  For covenants as to the use of the authority's property and the maintenance and 
replacement of the property and the insurance to be carried on the property and the use 
and disposition of insurance money;
T.  For limitations upon the exercise of the powers conferred upon the authority by this 
chapter;
U.  For the issuance of these bonds in series or in serial form or for a stated term of 
years with or without mandatory retirements from a sinking fund or otherwise;
V.  For the issuance, in addition to the issuance of notes and other evidences of 
indebtedness or obligations authorized under this chapter, of notes in anticipation of 
authorized bonds and for the exercise with respect to the bond anticipation notes of any 
or all of its powers delineated in this chapter for the issuance of bonds; and
W.  For the performance by the authority of any acts and things necessary or convenient 
or desirable in order to secure its bonds or in the absolute discretion of the authority as 
will tend to make the bonds more marketable notwithstanding that those acts or things 
may not be enumerated in this chapter.
§4212.  Application of proceeds of bonds or notes in anticipation thereof
Bonds must be applied as provided in this section.
1.  Application.  All money received from any bonds or bond anticipation notes issued 
pursuant to this chapter must be applied solely:
A.  To the payment of the cost of acquiring ownership of renewable generation projects, 
energy storage systems or interconnection transmission facilities;
B.  To the payment of the costs of issuance of the bonds;
C.  To the creation of reasonable reserves for the payment of the principal of and 
interest on those bonds, and to meet the cost of extraordinary repairs to or maintenance 
of the property of the authority;
D.  To repay the Efficiency Maine Trust, established in section 10103 for money 
provided as start-up funds;
E.  To the operating costs of the authority, including an allowance for working capital; 
and  
F.  To the payment of any temporary notes of the authority the proceeds of which were 
used for any of the purposes set out in this subsection.
2.  Lien created.  There is created and granted a lien upon the proceeds of the bonds 
until so applied in favor of holders of the bonds or the trustee provided for under this chapter 
in respect of the bonds.
§4213.  Bonds; how secured
1.  Trust indentures.  At the discretion of the authority, bonds may be secured by a 
trust indenture by and between the authority and a corporate trustee, which may be any 
trust company or bank having the powers of a trust company within or outside of the State, 
or by a loan or other security agreement with a lender or with such a trustee containing 
provisions that may be included in a bond resolution or trust indenture under this chapter.  
The trust indenture or loan or other security agreement may pledge or assign charges and 
fees to be received by the authority but may not convey or mortgage the property of the 
authority.
Either the resolution providing for the issuance of the bonds or the trust indenture or loan 
or other security agreement may contain provisions for protecting and enforcing the rights 
and remedies of the bondholders or other lenders or of the trustee, if any, as may be 
reasonable and proper and not in violation of law, including:
A.  Covenants setting forth the duties of the authority in relation to the acquisition of 
property; 
B.  The construction, maintenance, operation, repair and insurance of the authority's 
property;
C.  The custody, safeguarding and application of all money; and
D.  Any other provisions that the authority determines are necessary, convenient or 
desirable for the security of bondholders and other lenders or of the trustee, if any.
Any trust indenture or loan or other security agreement may restrict the individual right of 
action of bondholders or other lenders to the extent the authority determines is necessary, 
convenient or desirable.  All expenses incurred in carrying out the trust indenture or loan 
or other security agreement may be treated as a part of the cost of the maintenance, 
operation and repair of the authority's property.
2.  Other agreements.  The authority may enter into an agreement with a bank or 
financial institution incorporated within or outside of the State as necessary or convenient 
for the provision of trustee, paying agent, depository or other financial services in 
connection with bonds issued by the authority pursuant to this chapter, and it is lawful for 
any bank or trust company to enter into any such agreements with the authority and to 
furnish indemnity bonds or to pledge any securities required by the authority.
§4214.  Interest rate agreements
The authority is authorized to enter from time to time into agreements with another 
party, on terms and conditions that the authority determines are necessary or convenient, 
in which the authority agrees to make a payment to, or to receive a payment from, the other 
party based on a comparison at a future date between an interest rate specified on the date 
of the agreement and a rate derived on or about that future date from an interest rate index.  
The authority is authorized to enter into any credit enhancement or liquidity agreement on 
terms and conditions that the authority determines are necessary or convenient for carrying 
out this section.
§4215.  Exemption from taxes
The accomplishment by the authority of the authorized purpose stated in this chapter 
being for the benefit of the people of the State and for the improvement of their commerce 
and prosperity in which accomplishment the authority will be performing essential 
governmental functions, the authority may not be required to pay any taxes or assessment 
on any property acquired or used by it for the purposes provided in this chapter, nor may 
the authority be required to pay any tax upon its income except as may be required by the 
laws of the United States, and the bonds or other securities and obligations issued from the 
authority, their transfer and the income therefrom, including any profits made on the sale 
thereof, must at all times be free from taxation within the State.
§4216.  Refunding bonds
The authority is authorized to provide by resolution for the issuance of revenue 
refunding bonds of the authority, including notes or other obligations defined as bonds 
under this chapter for the purpose of refunding any bonds then outstanding, including the 
payment of any redemption premium thereon and any interest accrued or to accrue to the 
date of redemption of these bonds; and, if determined advisable by the authority, for any 
additional purpose for which bonds authorized by this chapter may be issued.  The issuance 
of the bonds, the maturities and other details thereof, the rights of the holders thereof and 
the rights, duties and obligations of the authority in respect of those rights, duties and 
obligations are governed by this chapter insofar as these rights, duties and obligations may 
be applicable.
§4217.  Interim certificates
Prior to the issuance of any bonds, the authority may issue interim certificates in such 
manner and with such conditions as the authority may determine to be exchanged for the 
bonds when issued.
§4218.  Sinking fund for payment of bonds
1.  Establishment of sinking fund.  The authority's revenues, except such part as may 
be required for the construction, reconstruction, operation and maintenance of the 
authority's property, for the payment of the principal and the interest on the bonds of the 
authority or otherwise in accordance with the provisions thereof, and after deducting the 
operating expenses of the authority, must be set aside at such regular intervals as may be 
provided in the resolution or trust indenture or loan or other security agreement, in a sinking 
fund that is pledged to, and charged with, the payment of:
A.  The interest upon those bonds as that interest falls due;
B.  The principal of the bonds as that principal falls due;
C.  The necessary fiscal agency charges for paying principal and interest; and
D.  Any premiums upon bonds retired by call or purchase as provided in subsection 2.
2.  Use and disposition of sinking fund.  The use and disposition of the sinking fund 
are subject to such rules as may be provided in the resolution authorizing the issuance of 
bonds or in the related trust indenture or loan or other security agreement, but, except as 
may otherwise be provided in that resolution or trust indenture or loan or other security 
agreement, the sinking fund must be a fund for the benefit of all bonds issued under this 
chapter without distinction or priority of one over another. Subject to the provisions of the 
resolution authorizing the issuance of bonds or of the trust indenture or loan or other 
security agreement, any money in the sinking fund in excess of an amount equal to one 
year's interest on all bonds then outstanding may be applied to the purchase or redemption 
of bonds.  All bonds so purchased or redeemed must immediately be canceled and may not 
again be issued.
§4219.  Trust funds
Subject to any agreement with the bondholders, all revenue received by the authority, 
after deducting expenditures required for the construction, reconstruction, operation and 
maintenance of the property of the authority, for the payment of the principal and the 
interest on the bonds of the authority or otherwise in accordance with the provisions 
thereof, and after deducting the operating expenses of the authority, must be held and 
invested by the authority to establish trust funds for reserve and sinking funds for the 
retirement of bonded indebtedness.
§4220.  Provisions in case of default on bonds
Except as may otherwise be provided in a bond resolution or trust indenture or loan or 
security agreement, in the event that the authority defaults in the payment of principal or 
interest on any of its bonds after the principal or interest falls due and that default continues 
for a period of 60 days or defaults in any other agreement with the bondholders or with a 
trustee under a trust indenture or loan or security agreement, the holders of 25% in 
aggregate principal amounts of the bonds then outstanding by instrument filed in the office 
of the Secretary of State duly acknowledged may appoint a trustee to represent the 
bondholders for the purpose provided in this section.  The trustee may upon the written 
request of the holders of 25% in principal amount of the bonds then outstanding:
1.  Enforcement of rights of bondholders.  By mandamus or other suit, action or 
proceeding at law or in equity enforce the rights of the bondholders;
2.  Suit upon bonds.  Bring suit upon the bonds;
3.  Enjoinment of acts or other things.  Enjoin any acts or other things that may be 
unlawful or in violation of the rights of the bondholders; or
4.  Require accounting.  By action or suit in equity require the authority to account as 
if it were trustee of an expressed trust for the bondholders.  The trustee is entitled, as a 
right, to the appointment of a receiver who may, to the extent that the authority could itself 
do, enter and take possession of the facilities of the authority or any part thereof, the 
revenue or receipts from which are or may be applicable to the payment of the bonds in 
default, and operate and maintain the facilities and collect and receive all revenue thereafter 
arising from the facilities in the same manner as the authority might do and shall deposit 
all such money in a separate account and apply the money in such manner as the court 
directs.  In any suit, action or proceeding by the trustee, the fees, counsel fees and expenses 
of the trustee and the receiver, if any, and all costs and disbursements allowed by the court 
must be a first charge on any authority revenues, the revenues and receipts from which are 
or may be applicable to the payment of the bonds so in default.  The trustees, in addition, 
have and possess all the powers necessary and appropriate for the exercise of any functions 
specifically set forth in this section or incident to the general representation of the 
bondholders in the enforcement and protection of their rights.  Except as may otherwise be 
provided in a bond resolution or trust indenture or loan or other security agreement, in 
addition to other rights and limitations, any bondholder has the right by mandamus or other 
suit, action or proceeding in law or in equity to enforce the bondholder's rights against the 
authority, including the right to require the authority to carry out any agreement or covenant 
and to perform its duties under this chapter.
§4221.  Authority operations
1.  Capital and operating plans.  The executive director shall prepare annual capital 
and operating plans and budgets for approval each year by the board.  The annual capital 
and operating plans must be for the period beginning July 1st and ending June 30th of the 
following year.  The plans and budgets must be presented to the board no later than 
December 31st of each year according to this subsection.
A.  The capital plan and budget each year must provide for the development and 
ownership by the authority of renewable generation projects and energy storage 
systems in the following cumulative amounts:
(1)  By the end of 2024, 35 gigawatt hours of energy and 10 megawatts of energy 
storage system capacity;
(2)  By the end of 2025, 90 gigawatt hours of energy and 16 megawatts of energy 
storage system capacity;
(3)  By the end of 2026, 165 gigawatt hours of energy and 23 megawatts of energy 
storage system capacity;
(4)  By the end of 2027, 260 gigawatt hours of energy and 31 megawatts of energy 
storage system capacity;
(5)  By the end of 2028, 380 gigawatt hours of energy and 40 megawatts of energy 
storage system capacity;
(6)  By the end of 2029, 530 gigawatt hours of energy and 50 megawatts of energy 
storage system capacity;
(7)  By the end of 2030, 790 gigawatt hours of energy and 61 megawatts of energy 
storage system capacity;
(8)  By the end of 2031, 1,110 gigawatt hours of energy and 73 megawatts of 
energy storage system capacity;
(9)  By the end of 2032, 1,510 gigawatt hours of energy and 86 megawatts of 
energy storage system capacity; and
(10)  By the end of 2033, 2,000 gigawatt hours of energy and 100 megawatts of 
energy storage system capacity.
B.  The operating plan and budget each year must detail the costs of operating the 
authority, including the following:
(1)  Debt service obligations on the outstanding bonded indebtedness of the 
authority;
(2)  Issuance of new debt consistent with the capital plan and budget;
(3)  Staffing requirements for the authority;
(4)  Personnel costs, inclusive of benefits, overhead and administrative support 
costs;
(5)  Third-party contract costs for the operations, maintenance and repairs of the 
authority's renewable generation projects and energy storage systems;
(6)  Other costs to support the operations of the authority; and
(7)  Revenues to the authority from the sale of output and environmental attributes 
pursuant to section 4208, subsection 4 from renewable generation projects and 
energy storage systems, as set forth in subsections 3, 4 and 5.
2.  Authority revenues.  The authority must receive start-up revenues in the form of a 
$1,000,000 loan from the Efficiency Maine Trust, established in section 10103, whose 
terms must be a 3-year maturity at an interest rate of 3% per annum, and ongoing revenues 
from the sale of output from the authority's renewable energy projects and energy storage 
systems as described in subsection 3 and from charges levied on all electric ratepayers in 
the State, as described in subsection 4.  The start-up revenues must be available to the 
authority within 30 days of the confirmation of the board.
3.  Revenues from sale of output.  The authority shall sell 100% of the output and 
associated environmental attributes into the relevant wholesale markets in the ISO-NE 
region.  All sales must be at the spot market price or its equivalent for those outputs for 
which a spot market does not exist.  The authority shall contract with the Efficiency Maine 
Trust, established in section 10103, to manage all such sales and to settle financially all 
outputs and environmental attributes sold to the accounts of the authority.  In no instance 
may the beneficial title to the outputs or environmental attributes associated with any 
renewable generation project or energy storage system owned by the authority be held by 
any entity other than the authority prior to the point of sale.
4.  Surcharge.  The authority receives revenues from the Maine Generation Authority 
surcharge levied pursuant to section 3210-H on all electric ratepayers in the State pursuant 
to this subsection.
A.  The annual revenue requirement for the authority must be equal to the sum of all 
the costs included in the authority's annual operating plan and budget as set forth in 
subsection 1.
B.  Upon approval by the board of the authority's annual operating plan and budget as 
set forth in subsection 1, the board shall set the authority's annual revenue requirement 
for the 12-month period beginning on the next July 1st.
C.  The executive director shall compute the surcharge levied on all electric ratepayers, 
expressed as a dollars-per-kilowatt-hours amount to be collected from all electric 
ratepayers in the State by first subtracting the total revenues from the sale of output and 
environmental attributes from subsection 3 from the annual revenue requirement, then 
dividing this amount by the projected total kilowatt-hours of electric load summed over 
all electric ratepayers in the State for the 12-month period beginning on the next July 
1st, and then multiplying this value by a factor equal to one plus the bad debt and 
uncollectible percentage across all transmission and distribution utilities in the State 
for the prior 12-month period.
D.  The executive director shall submit to the commission the amount of the surcharge 
to be levied on electric ratepayers and supporting documentation by February 15th of 
each year.
E.  If the surcharge to be levied on electric ratepayers is positive, the commission shall 
direct all transmission and distribution utilities in the State to include in their rates for 
all of their customers the Maine Generation Authority surcharge for the period July 1st 
to June 30th of the following year and to remit all money collected by the transmission 
and distribution utilities to the authority within 30 days of the commission's receipt of 
that money.
F.  If the surcharge to be levied on electric ratepayers is negative, the commission shall 
set the surcharge equal to zero, and the authority shall use all surplus revenues in a 
manner consistent with sections 4218 and 4219.
§4222.  Use of authority revenues
1.  Approved uses. The use of all authority revenues is limited to the following 
purposes:
A.  Maintenance, repair and operation of the renewable generation projects and energy 
storage systems owned by the authority and the establishment of reserves required 
therefor including, without limitation, reserves required or permitted by the resolutions 
authorizing the issuance of bonds or by the trust indentures relating to those bonds, and 
including any costs specially incurred by the authority;
B.  Payment of the cost of any debt incurred by the authority, including, but not limited 
to, payment of interest and principal on any bonds issued by the authority and payment 
into any sinking funds;
C.  Operations of the authority as set forth in the authority's operating plan and budget 
approved by the board; and
D.  Payments to reserve or sinking funds established by the authority to meet 
anticipated future costs of the authority's capital plan and budget or to accomplish other 
designated purposes for which the authority is authorized to issue bonds, as long as the 
funding for those projects financed from reserves, together with the estimated future 
costs thereof, have been approved by the authority.
§4223.  Freedom of access; confidentiality
The proceedings of the board and records of the authority are subject to the freedom of 
access laws under Title 1, chapter 13, except as specifically provided in this section.
1.  Confidential records.  The following records are designated as confidential for 
purposes of Title 1, section 402, subsection 3, paragraph A:
A.  A record obtained or developed by the authority that:
(1)  A person, including the authority, to whom the record belongs or pertains has 
requested be designated confidential and that the board has determined contains 
information that gives the owner or a user an opportunity to obtain a business or 
competitive advantage over another person who does not have access to the 
information, except through the authority's records, or access to which by others 
would result in a business or competitive disadvantage, loss of business or other 
significant detriment, other than loss or denial of financial assistance from the 
authority, to any person to whom the record belongs or pertains; or
(2)  Contains information about the energy usage profile of an identifiable 
customer of a transmission and distribution utility in the State;
B.  A financial statement or tax return; or
C.  The social security number, address, telephone number or e-mail address of a 
customer that has participated or may participate in a program of or provide services 
to the authority.
The authority shall provide to a legislative committee, on written request signed by the 
chairs of that committee, any information or records, including information designated 
confidential under this subsection, specified in the written request. The information or 
records may be used only for the lawful purposes of the committee and in any action arising 
out of any investigation conducted by it.
2.  Exceptions.  Notwithstanding subsection 1, the following are not confidential and 
are public records:
A.  Any otherwise confidential information the confidentiality of which the board 
determines to have been satisfactorily and effectively waived;
B.  Any otherwise confidential information that has already lawfully been made 
available to the public; and
C.  Impersonal, statistical or general information.
3.  Disclosure prohibited; further exceptions.  The director or a board member, 
officer, employee, agent, other representative of the authority or other person may not 
knowingly divulge or disclose records designated confidential by this section, except that 
the board, in its discretion and in conformity with legislative freedom of access criteria in 
Title 1, chapter 13, subchapter 1-A, may make or authorize any disclosure of information 
of the following types or under the following circumstances:
A.  If necessary in connection with processing any application for, obtaining or 
maintaining financial assistance for any person;
B.  To a financing institution or credit reporting service;
C.  If necessary to comply with any federal or state law or rule or with any agreement 
pertaining to financial assistance;
D.  If necessary to ensure collection of any obligation in which the authority has or 
may have an interest;
E.  In any litigation or proceeding in which the authority has appeared, introduction for 
the record of any information obtained from records designated confidential by this 
section; or
F.  Pursuant to a subpoena, request for production of documents, warrant or other order 
by competent authority, as long as any such order appears to have first been served on 
the person to whom the confidential information sought pertains or belongs and as long 
as any such order appears on its face or otherwise to have been issued or made upon 
lawful authority.
§4224.  Termination of authority
The authority may not be dissolved until such time as:
1.  Legislature provides for termination.  The Legislature provides for its 
termination; and
2.  Payment of bonds, premiums and interest.  All bonds, the premiums, if any, and 
the interest on the bonds have been paid or a sufficient amount for the payment of all bonds 
and the interest on the bonds to maturity or prior redemption date has been irrevocably set 
aside in trust for the benefit of the bondholders.
Sec. 4.  35-A MRSA §10128 is enacted to read:
§10128.  Maine Generation Authority program
The trust shall provide certain services and financial support to the Maine Generation 
Authority, established in section 4204, as provided in this section.
1. Financial support.  Upon the request of the Maine Generation Authority, the trust 
shall provide a loan, pursuant to section 4221, subsection 2, to the Maine Generation 
Authority in the amount of $1,000,000 for a term of 3 years at an interest rate of 3% per 
annum.
2. Contract services.  The trust shall perform under contract with the Maine 
Generation Authority the functions described in section 4221, subsection 3.
Sec. 5.  Staggered terms of initial members of the Maine Generation 
Authority Board.  Notwithstanding the Maine Revised Statutes, Title 35-A, section 
4205, subsection 2, the terms of the initial appointed voting members of the Maine 
Generation Authority Board must be staggered as provided in this section.
1.  The initial appointed voting members of the board serve as follows, determined by 
lot by those members after their appointment: one member serves a 6-year term; one 
member serves a 5-year term; one member serves a 4-year term; one member serves a 3-
year term; one member serves a 2-year term; and one member serves a one-year term.
SUMMARY
This bill establishes the Maine Generation Authority as a state authority authorized to 
issue revenue bonds that are backed by Maine electric ratepayers.
The purpose of the authority is to finance and own electricity generation projects that 
generate electricity using renewable fuels that produce zero greenhouse gas emissions and 
that are located in the State or, for those located in federal waters in the Gulf of Maine, 
capable of delivering all electricity generated into Maine in amounts sufficient to meet or 
offset residential and business energy requirements, and electricity storage systems located 
in the State that can store sufficient quantities of electricity generated by renewable 
generation projects to enable Maine's electricity grid to meet total in-state demands for 
electricity at all times.
The governance structure, administration, powers, obligations, property rights and 
bond issuance authority of the authority are modeled on the Maine Turnpike Authority.  
The amount of authorized bonding is intended to provide sufficient funding to allow the 
authority to meet the energy and storage targets set forth in the bill.
The bill authorizes the authority to undertake the following activities in fulfillment of 
its purpose:
1. Acquire fee simple ownership or easements in or enter long-term leases of real estate 
within the State or in federal waters in the Gulf of Maine; 
2. Issue revenue bonds for up to 100% of the costs of a renewable generation project 
or electricity storage system, including capitalized interest during construction of the 
project and system and working capital related to the operations and administration of the 
authority; and
3. Enter into contracts with 3rd parties for the construction of renewable generation 
projects or electricity storage systems, the operations and maintenance of renewable 
generation projects or electricity storage systems owned by the authority and the provision 
of support services to the authority, including energy planning, energy market sales, energy 
contract review, accounting, legal and other types of administrative services.
To ensure that the activities of the authority do not expose ratepayers to additional 
financial risks, the authority is explicitly prohibited from engaging in any of the following 
activities:
1. Energy trading, except to the extent necessary to sell the electricity generated by 
those renewable generation projects owned by the authority;
2. Entering into any short-term or long-term energy contracts for speculation or 
hedging purposes;
3. Acting in any manner as a retail electricity supplier for any ratepayers located in any 
utility service territory in the State;
4. Selling or otherwise disposing of any environmental credits or benefits in any form, 
referred to as environmental attributes, derived from electricity generated by a renewable 
generation project owned by the authority, except through the retirement of such 
environmental attributes for the authority's account; and
5. Hiring persons to provide operations or maintenance services for any renewable 
generation project owned by the authority.
The bill requires the authority to develop capital plans and budgets to meet specific 
renewable generation and energy storage targets each year from 2024 to 2033, and allows 
the authority to collect revenues from a Maine Generation Authority surcharge imposed on 
all electric ratepayers in Maine.
It requires the authority to sell 100% of the output generated by each renewable 
generation project or electricity storage system it owns into the relevant wholesale market 
administered by New England independent system operator, ISO-NE, at the spot market 
price or its equivalent for those components of electricity for which a spot market does not 
exist.  It directs the authority to contract with the Efficiency Maine Trust to enable all such 
sales and to settle financially all outputs and environmental attributes sold to the accounts 
of the authority.  It stipulates that the beneficial title to the electricity generated by or any 
environmental attribute associated with any renewable generation project or electricity 
storage system owned by the authority may not be held by any entity other than the 
authority prior to the point of its sale.
It allows the authority to borrow $1,000,000 from the Efficiency Maine Trust as a 3-
year maturity loan at 3% to fund start-up costs of the authority and requires the trust to 
provide this financial assistance to the authority. It provides that the authority is subject to 
the same freedom of access and confidentiality provisions that apply to the Efficiency 
Maine Trust.