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123rd MAINE LEGISLATURE |
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LD 1851 |
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LR 2605(03) |
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An Act To
Establish the Regional Greenhouse Gas Initiative Act of 2007 |
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Fiscal Note for
Bill as Amended by Committee Amendment " " |
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Committee: Natural Resources |
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Fiscal Note Required: Yes |
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| Fiscal Note |
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2007-08 |
2008-09 |
Projections 2009-10 |
Projections 2010-11 |
| Appropriations/Allocations |
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Other Special Revenue Funds |
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$472,193 |
$249,876 |
$803,102 |
$803,102 |
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| Revenue |
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Other Special Revenue Funds |
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$0 |
$0 |
$16,062,040 |
$16,062,040 |
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| Transfers |
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Other Special Revenue Funds |
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$0 |
$0 |
$0 |
$0 |
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| Fiscal Detail
and Notes |
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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. |
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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 requires initial appointments to the Maine Energy Conservation
Board be made no later than February 15, 2008 and 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. |
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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.
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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 PUC is required
to prepare and submit three extensive reports, including a preliminary draft
of the triennial energy efficiency and conservation plan. Included in this bill is an additional
Other Special Revenue Funds allocation to the PUC of $275,000 in fiscal year
2007-08 to permit payment for consultant services to assist with the
additional reporting requirements and other ongoing responsibilities. |
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The Public
Advocate within the Executive Department will receive an Other Special
Revenue Funds allocation of $15,000 in fiscal year 2007-08 for contractual
services to meet study requirements set forth in the bill. |
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