An Act To Create the Maine Energy Cost Reduction Authority
Sec. 1. 35-A MRSA c. 49 is enacted to read:
CHAPTER 49
MAINE ENERGY COST REDUCTION AUTHORITY
§ 4901. Short title
This chapter may be known and cited as "the Maine Energy Cost Reduction Authority Act."
§ 4902. Definitions
As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.
§ 4903. Maine Energy Cost Reduction Authority
§ 4904. Powers and duties
The authority has the following powers and duties.
(1) Materially enhance natural gas transmission opportunities in the State or the ISO-NE region;
(2) Increase the availability of natural gas in the State;
(3) Lead to the development, expansion or continued operation of a natural gas pipeline that will have the effect of reducing electric rates or other relevant energy prices or costs for residents and businesses within the State relative to the expected value of those electric rates or other energy prices or costs but for the proposed natural gas pipeline development or firm transportation service agreement; or
(4) Increase the energy reliability, security and independence of the State or the ISO-NE region.
(1) The selection of the party or parties to whom the reserved pipeline capacity may be resold must be determined through a request for bid process.
(2) The authority shall adopt rules setting forth the request for bid process by which it may resell its reserved pipeline capacity.
(3) The authority shall select the bid or a combination of bids for reserved pipeline capacity based upon the objective of obtaining the best overall package that presents the highest price for the capacity in order to offset, to the greatest extent possible, the price paid by the authority pursuant to the firm transportation service agreement pursuant to paragraph A.
(4) The authority may enter into agreements to resell the reserved pipeline capacity without conducting a request for bid process if the authority finds that the request for bid process is not reasonably likely to provide the highest price for the resale of reserved pipeline capacity or that another reasonable basis in the public interest exists for reselling the capacity without a request for bid process.
(5) Revenues received by the authority from the resale of reserved pipeline capacity under this section must be applied toward lowering or stabilizing electricity costs for ratepayers in the State, consistent with the manner set forth in rules adopted by the authority.
(1) Reduce electric rates or other relevant energy prices or costs within the State relative to the expected cost of those electric rates or other energy prices or costs but for the proposed long-term contract;
(2) Materially enhance natural gas transmission opportunities in the State or the ISO-NE region;
(3) Increase the availability of natural gas in the State; or
(4) Increase the energy reliability and security and the energy independence of the State or the ISO-NE region.
(1) The selection of the party or parties to whom the energy and capacity may be resold must be determined through a request for bid process.
(2) The authority shall adopt rules setting forth the request for bid process by which it may resell its energy and capacity.
(3) The authority shall select the bid or a combination of bids for energy and capacity based upon the objectives of obtaining the best overall package that presents the highest price for the energy and capacity in order to offset, to the greatest extent possible, the price paid by the authority pursuant to the long-term contract executed pursuant to paragraph A.
(4) The authority may enter into agreements to resell the energy and capacity without conducting a request for bid process if the authority finds that the request for bid process is not reasonably likely to provide the highest price for the resale of energy and capacity or that another reasonable basis in the public interest exists for reselling the capacity without a request for bid process.
(1) Be in the public interest. To determine whether the natural gas pipeline corridor is in the public interest, the authority shall consider, but is not limited to the consideration of, factors such as whether the corridor is reasonably likely to:
(a) Materially enhance natural gas transmission opportunities in the State;
(b) Efficiently use existing energy infrastructure;
(c) Limit or mitigate impacts on the landscape; and
(d) Increase the energy reliability, security and independence of the State or the ISO-NE region; and
(2) Be consistent with the environmental and land use laws and rules of the State. In making a determination under this subparagraph, the authority shall provide notification and an opportunity for consultation as provided in paragraph D. A finding by the authority that the natural gas pipeline corridor is reasonably likely to be consistent with the environmental and land use laws and rules of the State under this subsection has no evidentiary value in a subsequent environmental or land use permit proceeding under other applicable provisions of law.
(1) The Department of Environmental Protection;
(2) A state agency that owns or controls land or assets within the proposed corridor;
(3) The Department of Transportation regarding potential use of abandoned railroad corridors owned or controlled by the department;
(4) Appropriate state and federal energy and natural resources protection agencies, as specified by rule;
(5) The municipalities in which the proposed corridor would be located;
(6) The Maine Land Use Planning Commission and the counties in which the proposed corridor would be located, if the proposed corridor, or any portion of the proposed corridor, would be located within the commission's jurisdiction; and
(7) An Indian tribe, if the proposed corridor, or any portion of the proposed corridor, would be located on land of the tribe not excluded under paragraph E.
(1) Houlton Band Trust Land, as defined in Title 30, section 6203, subsection 2-A;
(2) Passamaquoddy Indian territory, as defined in Title 30, section 6203, subsection 6;
(3) Penobscot Indian territory, as defined in Title 30, section 6203, subsection 9;
(4) Aroostook Band Trust Land, as defined in Title 30, section 7202, subsection 2;
(5) Lands that constitute a park as defined in Title 12, section 1801, subsection 7 and Baxter State Park;
(6) Federally owned land; and
(7) The Maine Turnpike, as defined in Title 23, section 1964, subsection 9, unless consent is given by the Maine Turnpike Authority.
(1) Is consistent with the purposes set forth in this section;
(2) Is not adverse to the public interest;
(3) Is reasonably likely to lead to the development of a natural gas pipeline that will have the effect of reducing electric rates or other relevant energy prices or costs for residents and businesses within the State relative to the expected electric rates or other energy prices or costs but for the proposed natural gas pipeline development;
(4) Increases long-term economic benefits for the State, including but not limited to direct financial benefits, employment opportunities and economic development; and
(5) Is reasonably likely to increase the energy reliability, security and independence of the State or the ISO-NE region.
§ 4905. Natural gas pipeline corridors are not energy infrastructure corridors; collocation
A natural gas pipeline corridor designated by the authority pursuant to this chapter is not an energy infrastructure corridor pursuant to section 122 and is not subject to the requirements of that section. A natural gas pipeline corridor established pursuant to this chapter may subsequently be designated as an energy infrastructure corridor by the Interagency Review Panel pursuant to section 122. A natural gas pipeline may be collocated with another form of energy infrastructure in the natural gas pipeline corridor where such collocation is in the public interest and subject to approval by the authority and the commission and the satisfaction of all applicable state and federal safety requirements.
§ 4906. Maine Energy Cost Reduction Authority Fund
SUMMARY
This bill establishes the Maine Energy Cost Reduction Authority for the purpose of entering into contracts to procure and resell natural gas pipeline capacity and electric energy and capacity, to identify and designate corridors the construction of natural gas transmission pipelines and to enter into long-term contracts for the use of natural gas pipeline corridors through the development of natural gas pipelines.