An Act to Authorize a General Fund Bond Issue to Establish the
Maine Legislature, Session 132, LD 0826
Committee: Appropriations and Financial Affairs
Sponsors: PIERCE, MURPHY
Amends: 20-A MRSA §15908-C

Legislative Document
No. 826
S.P. 349
In Senate, March 4, 2025
An Act to Authorize a General Fund Bond Issue to Establish the 
School Energy Savings Revolving Loan Fund
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator PIERCE of Cumberland.
Cosponsored by Representative MURPHY of Scarborough and
Senator: RAFFERTY of York, Representatives: CLOUTIER of Lewiston, GATTINE of 
Westbrook, KUHN of Falmouth, MITCHELL of Cumberland, SARGENT of York.
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 $10,000,000 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.
DEPARTMENT OF EDUCATION
Provides funds to capitalize the School Energy Savings Revolving Loan Fund, which 
will support energy and energy efficiency projects in schools in this State.
Total
$10,000,000
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 $10,000,000 bond issue to support energy and energy 
efficiency projects in Maine schools?"
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.  20-A MRSA §15908-C is enacted to read:
§15908-C.  School Energy Savings Revolving Loan Fund
1.  Fund established.  The School Energy Savings Revolving Loan Fund, referred to 
in this section as "the fund," is established as a nonlapsing, interest-earning revolving fund 
administered by the department.
2.  Sources of fund.  Sources of the fund may include:
A.  Money appropriated or allocated by the State for inclusion in the fund;
B.  Money that the department receives in repayment of loans from the fund;
C.  Interest, dividends and pecuniary gains from investment of money in the fund;
D.  Money from any bond issues approved by the voters of the State for the purposes 
of the fund; and
E.  Money otherwise made available to the department for the purposes of the fund.
3.  Application of fund.  Money in the fund may be loaned at low interest in amounts 
from $50,000 to $1,000,000 to school administrative units to implement energy and energy 
efficiency projects in school facilities, including, but not limited to, energy efficiency 
equipment upgrades; building envelope and insulation improvement projects; and heat 
recovery, clean energy generation and heating, cooling and ventilation system upgrades 
and replacement projects that improve efficiency, air quality and emissions.  Equipment 
and facility upgrades must have a useful life of at least 10 years, and loan payments may 
be made for up to 20 years.  The department shall work to ensure that loan funds are used 
to support project components eligible for federal tax credits, other state and federal energy 
programs and funding and rebate programs through the Efficiency Maine Trust. The 
department may consult with the Governor's Energy Office and the Efficiency Maine Trust 
in furtherance of these goals.
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
This bill provides for a bond issue, in the amount of $10,000,000, to capitalize the 
School Energy Savings Revolving Loan Fund, which the bill establishes to support energy 
and energy efficiency projects in Maine schools to be administered by the Department of 
Education.