SP0266
LD 912
Session - 129th Maine Legislature
 
LR 1097
Item 1
Bill Tracking, Additional Documents Chamber Status

An Act To Establish the Wood Energy Investment Program

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 35-A MRSA §10124  is enacted to read:

§ 10124 Wood Energy Investment Program

1 Establishment; purpose.   The Wood Energy Investment Program is established within the trust to provide incentives and low-interest or no-interest loans in consultation with the Finance Authority of Maine, established in Title 10, chapter 110, in order to strengthen the State's forest products industry and lower energy costs by increasing the efficient use of wood for energy production.
2 Wood energy investment fund.   There is established in the custody of the trust a special nonlapsing fund, to be known as the wood energy investment fund. The wood energy investment fund consists of the following:
A Sums that may be transferred from the commission from the cost recovery fund established in Public Law 2015, chapter 483, section 1, subsection 5;
B Funds that the trust may receive from the State or from the Federal Government or funds from other agreements whose purpose is consistent with this section;
C Principal and interest received from the repayment of loans made from the wood energy investment fund; and
D Interest earned from the investment of wood energy investment fund balances.
3 Program details.   The trust, through the Wood Energy Investment Program established in subsection 1, shall provide incentives and low-interest or no-interest loans to businesses, municipalities, educational institutions and nonprofit entities in the State for the installation of new wood-derived thermal energy or cogeneration projects from the wood energy investment fund established in subsection 2. The trust shall require Wood Energy Investment Program participants to substantially share in the cost of projects funded under this section. The trust shall seek to maximize the Wood Energy Investment Program's impact per dollar of expenditure from the wood energy investment fund and shall set limits it determines prudent on the size of incentives. The trust may not provide incentives or loans from the wood energy investment fund for the refurbishment or maintenance of existing facilities.

The trust shall develop activities promoting the Wood Energy Investment Program in consultation with the Finance Authority of Maine, established in Title 10, chapter 110. The trust shall consult with the Finance Authority of Maine, when appropriate, in its decisions to award incentives and loans. To the extent that funding is available, the trust shall offer technical assistance to eligible projects in a manner that is coordinated and consistent with other trust programs.

For purposes of this subsection, "new wood-derived thermal energy or cogeneration project" includes, but is not limited to, wood-fueled combined heat and power cogeneration boiler installations; colocation development that increases the efficient use of wood for energy production; conversion of fossil fuel-fired boilers to wood-fueled boilers or boilers using biofuels derived from wood; and the installation of new wood-fueled boilers or boilers using biofuels derived from wood.

Sec. 2. Contract evaluation; fund transfer. If, in its annual evaluation of a 2-year contract entered into pursuant to Public Law 2015, chapter 483, the Public Utilities Commission finds that an entity that was awarded a contract for biomass resources is not meeting contract requirements and therefore is not qualified to receive the full contract payment or any contract payment, those funds that would have been paid to the entity had contract requirements been met must be transferred to the wood energy investment fund established in the Maine Revised Statutes, Title 35-A, section 10124, subsection 2. Notwithstanding Public Law 2015, chapter 483, section 1, subsection 5, any funds remaining in the cost recovery fund established in Public Law 2015, chapter 483, section 1, subsection 5 that are not needed to pay above-market costs for biomass resources must be transferred to the wood energy investment fund.

summary

This bill establishes the wood energy investment fund and creates the Wood Energy Investment Program within the Efficiency Maine Trust. The bill specifies that, if the Public Utilities Commission finds that an entity awarded a contract for biomass resources pursuant to Public Law 2015, chapter 483 is not meeting contract requirements and therefore is not qualified to receive the full contract payment or any contract payment, those funds that would have been paid had contract requirements been met must be transferred to the wood energy investment fund. It also specifies that any funds remaining in the cost recovery fund established in Public Law 2015, chapter 483, section 1, subsection 5 that are not needed to pay above-market costs for biomass resources must also be transferred by the Public Utilities Commission to the wood energy investment fund. It requires the trust to use funds from the fund, if there are any, to provide incentives and low-interest or no-interest loans for new wood-derived thermal energy or cogeneration projects. It requires that the trust consult with the Finance Authority of Maine, when appropriate, in the development of any Wood Energy Investment Program incentives and the distribution of money from the wood energy investment fund. It prohibits the use of funds for incentives or loans for the refurbishment or maintenance of existing facilities.


Top of Page