An Act To Equitably Fund Maine's Climate Change Mitigation Efforts
Maine Legislature, Session 130, LD 1567
Committee: Environment and Natural Resources
Sponsors: KESSLER
Amends: 38 MRSA §551, 38 MRSA §577-B

Legislative Document
No. 1567
H.P. 1164
House of Representatives, April 27, 2021
An Act To Equitably Fund Maine's Climate Change Mitigation 
Efforts
Received by the Clerk of the House on April 23, 2021.  Referred to the Committee on 
Environment and Natural Resources pursuant to Joint Rule 308.2 and ordered printed pursuant 
to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative KESSLER of South Portland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  38 MRSA §551, 2nd ¶, as amended by PL 2015, c. 319, §16, is further 
amended to read:
Money in the fund collected pursuant to subsection 4 that is not needed currently to 
meet the obligations of the department in the exercise of its responsibilities under this 
subchapter must be deposited with the Treasurer of State to the credit of the fund, Maine 
Climate Change Equitable Mitigation Fund established by section 577-B and may be 
invested in such manner as is provided for by statute section 577-B.  Interest received on 
that investment must be credited to the fund.
Sec. 2.  38 MRSA §551, sub-§4, ¶A-1, as enacted by PL 2015, c. 319, §16, is 
amended to read:
A-1.  A fee is assessed of:
(1)  Three cents per barrel of unrefined crude oil and liquid asphalt;
(2)  Seven cents per barrel of #6 fuel oil;
(3)  Twenty-two cents per barrel of #2 fuel oil, kerosene, jet fuel, diesel fuel and 
other refined products and their by-products not otherwise specified in this 
subsection, excluding liquid asphalt; and
(4)  Forty-one cents per barrel of gasoline.
This paragraph does not apply applies to waste oil transported into the State in any 
motor vehicle that has a valid license issued by the department for the transportation 
of waste oil pursuant to section 1319‑O, subsection 1, paragraph C and is subject to 
fees established under section 1319‑I.
Sec. 3.  38 MRSA §551, sub-§4, ¶E, as amended by PL 2015, c. 319, §16, is 
repealed.
Sec. 4.  38 MRSA §551, sub-§4-B, as enacted by PL 2015, c. 319, §16, is repealed.
Sec. 5.  38 MRSA §577-B is enacted to read:
§577-B.  Maine Climate Change Equitable Mitigation Fund
The Maine Climate Change Equitable Mitigation Fund, referred to in this section as 
"the fund," is established to be used by the department as a nonlapsing, revolving fund for 
carrying out the purposes of the climate action plan.  The balance in the fund is limited to 
money collected pursuant to section 551 in excess of the lesser of $18,500,000 and the 
amount the department determines is necessary to carry out the purposes of section 551.  
Money in the fund may be used for any expenditures of the State related to mitigation of 
climate change and any obligations of the State pursuant to the climate action plan.  Money 
in the fund not needed currently to meet the obligations of the department in the exercise 
of its responsibilities under this chapter must be deposited with the Treasurer of State to 
the credit of the fund and may be invested in the manner provided for by statute.  Interest 
received on that investment must be credited to the fund.
1.  Disbursements from fund.  Money in the fund may be disbursed as follows:
A.  Up to $250,000 per fiscal year for administrative expenses, personal services and 
equipment costs of the department related to the administration and enforcement of this 
section;
B.  Up to 20% of the fund annually for grants to a municipality or county to assess and 
mitigate climate change risks within the municipality or county, in accordance with 
rules adopted by the department.  Grant recipients may coordinate with one another 
and combine grants received under this paragraph.  A municipality or county that 
receives a grant under this paragraph for 3 consecutive years is ineligible to receive a 
grant for the next 3 consecutive years;
C.  Up to 20% of the fund annually for distribution to community action agencies as 
defined in Title 22, section 5321, subsection 2 for loans and grants to supplement 
existing rebate programs for low-income families and individuals administered by the 
Efficiency Maine Trust established by Title 35-A, section 10103 and for payment of 
reasonable administrative costs actually incurred by a community action agency to 
provide those services.  Before disbursing funds under this paragraph, the department 
shall adopt a written policy in accordance with the Maine Administrative Procedure 
Act establishing guidelines for payment under this paragraph of the reasonable 
administrative costs actually incurred by a community action agency.  A community 
action agency shall administer a loan or grant received in accordance with program 
operating standards, including the Maine State Housing Authority's formula for the 
allocation of funds received under the federal weatherization assistance program, and 
in coordination with the trust;
D.  Up to 20% of the fund annually transferred to the Department of Transportation for 
use in programs and on projects to improve transportation infrastructure to increase 
vehicle efficiency within the State, to promote the use of low-emission vehicles and 
public transportation or to reduce climate change risks to the State's transportation 
infrastructure.  The commissioner shall biennially propose expenditures on programs 
and projects under this paragraph and shall provide the public with notice of and an 
opportunity to comment on the proposal prior to the transfer of money to the 
Department of Transportation; and
E.  Up to 40% of the fund annually to the Efficiency Maine Trust established by Title 
35-A, section 10103 for use in programs to reduce greenhouse gas emissions in 
accordance with a memorandum of understanding to be negotiated between the 
department and the trust and renegotiated every 3 years.  Money disbursed to the trust 
under this paragraph must first be used to offer grants to replace lighting fixtures in 
public elementary and secondary schools in the State with high-efficiency lighting, 
including LEDs, and to promote the installation of efficient electric heat pumps as 
defined by Title 35-A, section 3105.
2.  Rulemaking.  The department may adopt rules as necessary to implement this 
section.  Rules adopted pursuant to this subsection are routine technical rules as defined in 
Title 5, chapter 375, subchapter 2-A.
SUMMARY
This bill establishes the Maine Climate Change Equitable Mitigation Fund, a 
nonlapsing, revolving fund administered by the Department of Environmental Protection 
to carry out the purposes of the climate action plan adopted pursuant to the Maine Revised 
Statutes, Title 38, section 577.  The fund is funded through fees collected pursuant to Title 
38, section 551 on crude oil and certain petroleum products, including home heating oils 
and gasoline transferred within the State.  The use of the money in the fund is subject to 
various restrictions, and money in the fund may be disbursed only for the cost of fund 
administration, grants awarded to municipalities or counties for climate change 
assessments and risk mitigation, loans or grants awarded to community action agencies to 
supplement existing Efficiency Maine Trust programs for low-income individuals and 
families and associated administrative expenses, transfers to the Department of 
Transportation for climate-related programs and projects and transfers to the Efficiency 
Maine Trust for programs to reduce greenhouse gas emissions.  The bill permits the 
Department of Environmental Protection to adopt routine technical rules for the 
administration of the fund.