123rd MAINE LEGISLATURE
		LD 1851		LR 2605(02)
	An Act To Establish the Regional Greenhouse Gas Initiative Act of 2007
	Fiscal Note for Bill as Amended by Committee Amendment "     "
	Committee: Natural Resources
	Fiscal Note Required: Yes
Fiscal Note
			2007-08	2008-09	Projections 2009-10	Projections 2010-11
Appropriations/Allocations
	Other Special Revenue Funds		$182,193	$249,876	$803,102	$803,102
Revenue
	Other Special Revenue Funds		$0	$0	$16,062,040	$16,062,040
Transfers
	Other Special Revenue Funds		$0	$0	$0	$0
Fiscal Detail and Notes
	This bill establishes a statewide carbon dioxide cap and trade program for fossil fuel fired electrical generating units within the state.  It also authorizes the sale of carbon dioxide emission allowances and creates an Energy and Carbon Savings Trust effective October 1, 2008.  The sale of carbon dioxide offset allowances will be deposited as dedicated revenue in the Energy and Carbon Savings Trust Fund.  The specific amount  and timing of the collection of the Other Special Revenue Funds revenue will depend on when the first auction takes place and the negotiated price per carbon dioxide emission allowance.  Both are unknown at this time but the revenue could be collected at the end of fiscal year 2008-09 or beginning in fiscal year 2009-10.
	Based on the assumption that allowances could trade at $3 per ton, the estimated annual revenue would be $16,062,040 beginning in fiscal year 2009-10, of which not more than 5% or $803,102 would be available for administrative costs for the DEP to administer allowance auctions, PUC-related activities of the Trust and the Maine Energy Conservation Board and for the AG for enforcement activities.  This legislation allows the Maine Energy Conservation Board to hire staff and apply to the PUC and the Energy and Carbon Savings Trust for funding to support such staff.  It allows the Board to expend up to 1% of the Conservation Fund for staff services, which is estimated to be approximately $130,000 for fiscal year 2007-08, $160,000 for fiscal year 2008-09 and $170,000 in fiscal year 2009-10.   It also provides up to $100,000 annually from Trust Fund revenue to fund research approved by the DEP for the development of new categories of carbon dioxide emissions offset projects.
	This legislation authorizes a temporary transfer of up to $175,000 of funds from the PUC's Conservation Fund for use by the Energy and Carbon Savings Trust.  It further provides for repayment of such funds as soon as sufficient funds have accumulated in the Energy and Carbon Savings Trust Fund.  It also modifies existing assessment provisions of the PUC to achieve additional energy efficiency and demand reduction and exempts certain transmission and sub-transmission classes of customers from paying certain assessments.
	The bill imposes several requirements on the PUC that can not be absorbed within existing resources.  The bill includes an additional Other Special Revenue Funds allocation of $182,193 to the PUC in fiscal year 2007-08 and $249,876 in fiscal year 2008-09 to provide funds for two Utility Analyst positions to assist in meeting the requirements of this legislation.
	The Public Advocate within the Executive Department can absorb the additional costs associated with meeting specified study requirements set forth in the bill.