An Act Regarding Compensation Fees and Related Conservation Efforts to Protect Soils and Wildlife and Fisheries Habitat from Solar and Wind Energy Development and High-impact Electric Transmission Lines Under the Site Location of Development Laws
Maine Legislature, Session 131, LD 1881
Committee: Agriculture, Conservation and Forestry
Sponsors: LANDRY, BLACK, GRAMLICH, MEYER, ROBERTS, SOBOLESKI, STOVER, WOOD, BRENNER
Amends: 38 MRSA §484-C

Legislative Document
No. 1881
H.P. 1206
House of Representatives, May 3, 2023
An Act Regarding Compensation Fees and Related Conservation 
Efforts to Protect Soils and Wildlife and Fisheries Habitat from 
Solar and Wind Energy Development and High-impact Electric 
Transmission Lines Under the Site Location of Development Laws
Reference to the Committee on Agriculture, Conservation and Forestry suggested and 
ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative LANDRY of Farmington.
Cosponsored by Senator BLACK of Franklin and
Representatives: GRAMLICH of Old Orchard Beach, MEYER of Eliot, ROBERTS of South 
Berwick, SOBOLESKI of Phillips, STOVER of Boothbay, WOOD of Greene, Senator: 
BRENNER of Cumberland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  7 MRSA c. 15 is enacted to read:
CHAPTER 15
PROTECTION OF AGRICULTURAL SOILS FROM SOLAR ENERGY 
DEVELOPMENTS
§361. Solar energy compensation fee for impact to agricultural soils 
1.  Compensation fee. A person engaging in solar energy development required to 
obtain a permit under Title 38, chapter 3, subchapter 1, article 6 shall pay a compensation 
fee for any portion of the development, including associated facilities, that is located on 
prime agricultural soils or soils of statewide importance under subsection 2. 
2.  Prime agricultural soils or soils of statewide importance. The department, in 
consultation with the Governor's Energy Office, shall establish the definitions of and 
process for identifying, verifying and assessing adverse impacts upon prime agricultural 
soils and soils of statewide importance, which may include soils located on land classified 
as prime farmland, land of statewide or local importance or unique farmland by the United 
States Department of Agriculture, Natural Resources Conservation Service. 
3.  Calculating fee. A permit applicant under subsection 1 shall submit with the permit 
application a compensation fee payment plan based upon the compensation fee calculated 
by the department using the square footage of the developed area located on prime 
agricultural soils or soils of statewide importance under subsection 2 and applying a per 
square foot compensation fee set by the department. The fee must be based upon the fair 
market value of land consisting of prime agricultural soils or soils of statewide importance 
under subsection 2 and include reasonable costs for the closing and stewardship of a 
compensation project completed in whole or in part with the compensation fee. Square 
footage of the developed area that is already subject to the compensation fee under Title 
38, section 484-C may not be included in calculating the compensation fee under this 
subsection. The compensation fee may be reduced by the department if the permit applicant 
proposes mitigation strategies, including, but not limited to, dual-use solar and agricultural 
production or locating the development on land that is otherwise unsuitable for agricultural 
production. For the purposes of this subsection, "developed area" means the total area of 
land occupied by the solar energy development, including associated facilities. 
4.  Collection of fees. All compensation fees under this section must be collected prior 
to commencing construction of the development and remitted to a compensation fund 
established or identified by the Department of Environmental Protection under Title 38, 
section 484-C, subsection 3. 
5.  Conservation option. A permit applicant subject to the requirements of this section 
may choose to conserve, through a conservation easement or fee purchase on behalf of an 
eligible organization described in this subsection, an equivalent amount of square footage 
of prime agricultural soils or soils of statewide importance as the amount calculated in 
subsection 2 instead of paying a compensation fee. A conservation option under this 
subsection must be subject to a perpetual agricultural conservation easement or fee 
ownership by a public, quasi-public or municipal organization or a private, nonprofit 
organization that ensures the land remains available for agricultural production. A permit 
applicant who chooses a conservation option under this subsection shall submit with the 
permit application a plan to execute the option and shall complete the fee purchase or 
conservation easement prior to issuance of a permit under Title 38, chapter 3, subchapter 
1, article 6. 
6.  Location and type of projects.  A compensation project funded in whole or in part 
by a compensation fee or land designated for a conservation option under this section must 
be located in the same region as the solar energy development and must consist of soils 
comparable to the soils adversely impacted by the development unless otherwise approved 
by the department.
7.  Responsibility for additional compensation. The payment of a compensation fee 
or exercise of a conservation option under this section does not relieve the permit applicant 
from the requirement to complete a compensation project or pay a compensation fee under 
Title 38, section 480-Z or Title 38, section 484-C. 
8.  Rules.  The department shall adopt rules to carry out the purposes of this section.  
Rules adopted pursuant to this subsection are routine technical rules under Title 5, chapter 
375, subchapter 2-A.
Sec. 2.  38 MRSA §484-C is enacted to read:
§484-C.  Compensation fee program for renewable energy development
1. Compensation fee program. The department shall establish a compensation fee 
program to fund a compensation project as an alternative means of satisfying requirements 
related to off-site habitat improvement or preservation that the department determines 
necessary to mitigate the adverse effects of a renewable energy development on wildlife 
and fisheries habitats, as defined by the department, to comply with section 484, subsection 
3. The program is limited to solar energy development and associated facilities, wind 
energy developments as defined in Title 35-A, section 3451, subsection 11 and associated 
facilities and high-impact electric transmission lines as defined in Title 35-A, section 3131, 
subsection 4-A. A compensation project funded in whole or in part from compensation fees 
under this section must be approved by the department. 
2. Calculating compensation fee. The department shall establish criteria for 
determining compensation fee amounts based upon the fair market value of land consisting 
of habitat comparable to the habitat affected by the development under this section and 
including reasonable costs for the closing and stewardship of a compensation project 
completed in whole or in part with the compensation fee. A portion of the fee may be used 
to cover the cost of administering a compensation fund in subsection 3.  The fee may not 
include compensation for an area as defined by section 480-Z, subsection 7.
3. Compensation fund. The department shall establish one or more compensation 
funds to receive compensation fees under this section and Title 7, section 361 for 
restoration, enhancement or preservation activities under paragraph A or to provide 
compensation fees to an organization authorized by the department under paragraph B. The 
department may require compensation fees to be remitted to another fund or funds created 
by the Legislature that can carry out the purposes of this section. 
A. The department may establish a compensation fund for the purpose of receiving 
compensation fees, grants and other related income to carry out a compensation project 
dedicated to payment of costs and related expenses of restoration, enhancement or 
preservation activities of the project. The department may make payments from the 
fund consistent with the purpose of the fund. Income received under this paragraph 
must be deposited with the Treasurer of State to the credit of the compensation fund 
and may be invested as provided by law. Interest on investments under this paragraph 
must be credited to the compensation fund. 
B. The department may enter into an enforceable, written agreement with a public, 
quasi-public or municipal organization or a private, nonprofit organization with 
expertise in the conservation of natural or working lands. The organization must 
demonstrate the ability to receive compensation fees, administer a compensation fund 
and ensure that compensation projects are implemented consistent with local, regional 
or state management priorities. If compensation fees are provided to an authorized 
organization, the organization shall maintain records of expenditures and provide an 
annual summary report as requested by the department. If the organization is a state 
agency other than the department, the agency shall establish a fund meeting the 
requirements specified in paragraph A. If the organization does not perform in 
accordance with this paragraph or with the requirements of the written agreement with 
the department, the department may revoke the organization's authority to conduct 
activities in accordance with this paragraph. 
4. Location and type of projects. A compensation project funded by a compensation 
fee under this section must be located in the same biophysical region as the development 
or transmission line under subsection 1 unless otherwise approved by the department and 
must consist of habitat comparable to the habitat affected by the development or 
transmission line. The department shall base approval of a compensation project on the 
management priorities for the biophysical region in which the project is located.  For 
purposes of this subsection, "biophysical region" has the same meaning as in section 480-Z.
5.  Relationship to other provisions.  The payment of a compensation fee under this 
section does not relieve the renewable energy development of the requirement to comply 
with any other provision of this article, including but not limited to the requirement to avoid 
and minimize adverse impacts on natural resources to the greatest extent practicable.
6. Rules.  The department shall adopt rules to carry out the purposes of this section.  
Rules adopted pursuant to this subsection are routine technical rules under Title 5, chapter 
375, subchapter 2-A.
Sec. 3.  Department of Agriculture, Conservation and Forestry and 
Department of Environmental Protection to adopt rules. By December 31, 2023, 
the Department of Agriculture, Conservation and Forestry, in consultation with the 
Department of Environmental Protection, the Department of Inland Fisheries and Wildlife 
and the Governor's Energy Office, shall initiate rulemaking to establish a compensation fee 
program to accept and administer compensation fees under the Maine Revised Statutes, 
Title 7, section 361 and to define "prime agricultural soils" and "soils of statewide 
importance" under Title 7, section 361, subsection 2 and the Department of Environmental 
Protection, in consultation with the Department of Agriculture, Conservation and Forestry, 
the Department of Inland Fisheries and Wildlife and the Governor's Energy Office, shall 
initiate rulemaking to establish a compensation fee program to accept and administer 
compensation fees under Title 38, section 484-C and to define "wildlife and fisheries 
habitats" under Title 38, section 484-C, subsection 1, which must include but not be limited 
to large undeveloped habitat blocks, important wildlife corridors and other habitat types 
identified in consultation with the Department of Inland Fisheries and Wildlife. The rules 
must establish variable compensation amounts based on the value of the habitats and 
agricultural soils affected and the degree of adverse effect caused by the development and 
must establish mitigation strategies that may reduce or otherwise alter any compensation 
fee, including but not limited to the use of wildlife-friendly fencing and dual-use solar 
energy and agricultural production.  Notwithstanding Title 5, chapter 375, the Department 
of Agriculture, Conservation and Forestry and the Department of Environmental Protection 
may allow for the payment of a compensation fee prior to the adoption of final rules using 
interim criteria established in consultation with the Department of Inland Fisheries and 
Wildlife and the Governor's Energy Office.
SUMMARY
This bill requires developers of solar energy projects to pay a compensation fee or pay 
for conservation efforts to mitigate adverse effects on prime agricultural soils or soils of 
statewide importance and developers of solar energy developments, wind energy 
developments or high-impact electric transmission lines to pay a compensation fee to fund 
off-site habitat improvement or preservation projects to mitigate the adverse effects of a 
development on wildlife and fisheries habitats. The Department of Environmental 
Protection is directed to establish one or more compensation funds to carry out the projects 
or to authorize a public, quasi-public or municipal organization or a private, nonprofit 
organization to administer the funds.  A solar energy developer may offset the 
compensation fee for the protection of prime agricultural soils or soils of statewide 
importance for land for which the developer paid a compensation fee to mitigate the adverse 
effects of a development on wildlife and fisheries habitats and may also opt in lieu of the 
compensation fee to conserve a comparable area of land through a conservation easement 
or a purchase for fee ownership by a public, quasi-public or municipal organization or a 
private, nonprofit organization that ensures the land remains available for agricultural 
production. This bill also directs the Department of Agriculture, Conservation and Forestry 
to adopt rules and define "prime agricultural soils" and "soils of statewide importance" and 
the Department of Environmental Protection to adopt rules and define "wildlife and 
fisheries habitats" subject to compensation fees or other conservation efforts.