An Act To Authorize a General Fund Bond Issue To Provide Funds for Maine To Meet the State's Carbon Reduction Goals by Supporting the Use of Biofuels (AFTER DEADLINE)
Maine Legislature, Session 130, LD 1637
Committee: Appropriations and Financial Affairs
Sponsors: JACKSON
Amends: 5 MRSA §1825-B

Legislative Document
No. 1637
S.P. 521
In Senate, May 5, 2021
An Act To Authorize a General Fund Bond Issue To Provide Funds 
for Maine To Meet the State's Carbon Reduction Goals by 
Supporting the Use of Biofuels
(AFTER DEADLINE)
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
205.
Received by the Secretary of the Senate on May 3, 2021.  Referred to the Committee on 
Appropriations and Financial Affairs pursuant to Joint Rule 308.2 and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by President JACKSON of Aroostook.
Preamble.  Two thirds of both Houses of the Legislature deeming it necessary in 
accordance with the Constitution of Maine, Article IX, Section 14 to authorize the issuance 
of bonds on behalf of the State of Maine to provide funds as described in this Act,
Be it enacted by the People of the State of Maine as follows:
PART A
Sec. A-1.  Authorization of bonds.  The Treasurer of State is authorized, under the 
direction of the Governor, to issue bonds in the name and on behalf of the State in an 
amount not exceeding $40,000,000 for the purposes described in section 5 of this Part.  The 
bonds are a pledge of the full faith and credit of the State.  The bonds may not run for a 
period longer than 10 years from the date of the original issue of the bonds.
Sec. A-2.  Records of bonds issued; Treasurer of State.  The Treasurer of State 
shall ensure that an account of each bond is kept showing the number of the bond, the name 
of the successful bidder to whom sold, the amount received for the bond, the date of sale 
and the date when payable.
Sec. A-3.  Sale; how negotiated; proceeds appropriated.  The Treasurer of 
State may negotiate the sale of the bonds by direction of the Governor, but no bond may 
be loaned, pledged or hypothecated on behalf of the State.  The proceeds of the sale of the 
bonds, which must be held by the Treasurer of State and paid by the Treasurer of State 
upon warrants drawn by the State Controller, are appropriated solely for the purposes set 
forth in this Part.  Any unencumbered balances remaining at the completion of the project 
in this Part lapse to the Office of the Treasurer of State to be used for the retirement of 
general obligation bonds.
Sec. A-4.  Interest and debt retirement.  The Treasurer of State shall pay interest 
due or accruing on any bonds issued under this Part and all sums coming due for payment 
of bonds at maturity.
Sec. A-5.  Disbursement of bond proceeds from General Fund bond issue.  
The proceeds of the sale of the bonds authorized under this Part must be expended as 
designated in the following schedule under the direction and supervision of the agencies 
and entities set forth in this section.
MAINE TECHNOLOGY INSTITUTE
Provides 
funds 
for 
infrastructure 
investment 
supporting 
development, 
commercialization and broad distribution of low carbon intensity biofuels that support 
the forestry and natural resource industries in this State as well as furthering the State's 
goals for low carbon emissions, initially focusing on commercial and home heating oil 
substitutes, including but not limited to investment in property, facilities and equipment 
in the development of wood waste to liquid biofuel biorefineries, including project 
financing enhancements, price supports and financing reserves, in particular for 
biofuels producers that have been recipients of previous Maine Technology Institute 
funding awards and grants and for biofuels producers that would provide a clear 
pathway for the commercialization of projects originated in or developed through the 
University of Maine.
Total
$20,000,000 
DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT
Provides funds for investment in upgrades, conversions and retrofittings of existing 
infrastructure, including commercial and residential heating oil systems, supply-chain 
and transportation equipment and storage facilities, to enable wider use and distribution 
of cellulosic biofuels. The Department of Economic and Community Development 
shall establish a program and administer funds through wholesalers and distributors to 
promote the residential use of cellulosic biofuels.
Total
$13,000,000
UNIVERSITY OF MAINE SYSTEM
Provides funds for investment in technology, research and development and education 
promoting the use of low carbon intensity biofuels that support the forestry and natural 
resource industries in this State as well as furthering the State's goals for low carbon 
emissions, including for:
1.  Development and implementation of internships and continuing education 
programs provided by secondary schools and postsecondary schools for residents 
of this State, focusing on environmental benefits and development of technical 
skills associated with the biorefining industry, such as production, systems 
maintenance and conversion; and
2.  Supporting a clear commercialization pathway for technologies developed by 
or through the University of Maine System, including biofuel production and 
research and development at the University of Maine Forest Bioproducts Research 
Institute, including facilitating continuous production and additional development 
and application of cellulosic biofuel technology.
Total
$7,000,000
Sec. A-6.  Contingent upon ratification of bond issue.  Sections 1 to 5 do not 
become effective unless the people of the State ratify the issuance of the bonds as set forth 
in this Part.
Sec. A-7.  Appropriation balances at year-end.  At the end of each fiscal year, 
all unencumbered appropriation balances representing state money carry forward.  Bond 
proceeds that have not been expended within 10 years after the date of the sale of the bonds 
lapse to the Office of the Treasurer of State to be used for the retirement of general 
obligation bonds.
Sec. A-8.  Bonds authorized but not issued.  Any bonds authorized but not issued 
within 5 years of ratification of this Part are deauthorized and may not be issued, except 
that the Legislature may, within 2 years after the expiration of that 5-year period, extend 
the period for issuing any remaining unissued bonds for an additional amount of time not 
to exceed 5 years.
Sec. A-9.  Referendum for ratification; submission at election; form of 
question; effective date.  This Part must be submitted to the legal voters of the State at 
a statewide election held in the month of November following passage of this Act.  The 
municipal officers of this State shall notify the inhabitants of their respective cities, towns 
and plantations to meet, in the manner prescribed by law for holding a statewide election, 
to vote on the acceptance or rejection of this Part by voting on the following question:
"Do you favor a $40,000,000 bond issue to provide funds for 
investment in infrastructure supporting Maine's forestry and 
natural resource industries through commercial development of 
environmentally sustainable and low-carbon fuels?"
The legal voters of each city, town and plantation shall vote by ballot on this question 
and designate their choice by a cross or check mark placed within a corresponding square 
below the word "Yes" or "No."  The ballots must be received, sorted, counted and declared 
in open ward, town and plantation meetings and returns made to the Secretary of State in 
the same manner as votes for members of the Legislature.  The Governor shall review the 
returns.  If a majority of the legal votes are cast in favor of this Part, the Governor shall 
proclaim the result without delay and this Part becomes effective 30 days after the date of 
the proclamation.
The Secretary of State shall prepare and furnish to each city, town and plantation all 
ballots, returns and copies of this Part necessary to carry out the purposes of this 
referendum.
PART B
Sec. B-1.  5 MRSA §1825-B, sub-§15 is enacted to read:
15.  Exception for certain biofuels.  Notwithstanding this section or any provision of 
law to the contrary, the State, any department or agency of the State or the University of 
Maine System may purchase biofuels to promote the use of biofuels by residents of this 
State by using sole-source purchase orders or purchases that are not competitively bid.
Sec. B-2.  Contingent effective date.  This Part takes effect only if the General 
Fund bond issue proposed in Part A is approved by the voters of this State.
SUMMARY
The funds provided by this bond issue, in the amount of $40,000,000, must be used for 
investment in infrastructure supporting Maine's forestry and natural resource industries 
through commercial development of environmentally sustainable and low carbon intensity 
fuels manufactured from wood and other cellulosic waste within this State.