HP1274, LD 1786, item 1, An Act Regarding Energy Infrastructure Development

An Act Regarding Energy Infrastructure Development

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

PART A

Sec. A-1. 5 MRSA §12004-G, sub-§30-D is enacted to read:

30-D.

Public Utilities

Interagency Review Panel

Not Authorized

35-A MRSA §122, sub-§1-B

Sec. A-2. 35-A MRSA §122, as enacted by PL 2007, c. 656, Pt. A, §3, is amended to read:

§ 122. Energy infrastructure corridors

1. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

A. "Department" means the Department of Environmental Protection.

B. "Energy infrastructure" includes electric transmission and distribution facilities, generation interconnection transmission facilities, natural gas transmission lines, carbon dioxide pipelines and other energy transport pipelines or conduits. "Energy infrastructure" does not include generation interconnection transmission facilities or energy generation facilities.

C. "Energy infrastructure corridor" or "corridor" means a geographic area within the State designated by the commission in accordance with this section for the purposes of siting energy infrastructure. "Energy infrastructure corridor" includes statutory corridors and petitioned corridors.

D. "Generation interconnection transmission facility" has the same meaning as in section 3132, subsection 1-B.

D-1. "Petitioned corridor" means an energy infrastructure corridor designated by the commission in accordance with subsection 2.

E. " Interested person Potential developer" means a person that can demonstrate to the commission the financial and technical capability to engage in the development and construction of energy infrastructure.

F. "Project" means the development or construction of energy infrastructure within an energy infrastructure corridor.

F-1. "Proprietary information" means information that is a trade secret or production, commercial or financial information the disclosure of which would impair the competitive position of the person who submitted the information and would make available information not otherwise publicly available.

F-2. "Searsport-Loring corridor" means the real estate, real property rights and easements and infrastructure associated with the existing pipeline and associated easement corridor extending from Searsport to the former Loring Air Force Base in Limestone, Maine, as granted and conveyed by the United States Air Force to the Loring Development Authority of Maine in 2005, together with such additional rights, property, easement scope and physical rights of way as may have been or may be acquired, as are necessary to effectuate the intent of the parties to the leases, easements and agreements existing on the effective date of this paragraph and as may be reasonably necessary or desirable to further develop the Searsport-Loring corridor as a statutory corridor for use pursuant to subsection 1-B.

F-3. "Statutory corridor" means an energy infrastructure corridor designated under subsection 1-A.

G. "Tribe" includes the Penobscot Nation, as defined in Title 30, section 6203, subsection 10; the Passamaquoddy Tribe, as defined in Title 30, section 6203, subsection 7; the Houlton Band of Maliseet Indians, as defined in Title 30, section 6203, subsection 2 and the Aroostook Band of Micmacs, as defined in Title 30, section 7202, subsection 1.

1-A. Statutory corridors designated. The following areas are designated as statutory corridors:

A. The Interstate 95 corridor, including that portion of Interstate 95 designated as the Maine Turnpike, in accordance with the provisions of subsection 1-C;

B. The Interstate 295 corridor; and

C. The Searsport-Loring corridor, subject to the following provisions.

(1) The Searsport-Loring corridor may be used, developed and expanded for energy infrastructure consistent with any leases, easements or other agreements in effect on the effective date of this subsection. It is not a statutory corridor until the expiration or termination of such leases, easements or other agreements.

(2) The executive director of the Loring Development Authority of Maine shall notify the Interagency Review Panel under subsection 1-B when any leases, easements or other agreements in effect on the effective date of this subsection affecting or otherwise pertaining to the Searsport-Loring corridor have expired or otherwise terminated.

1-B. Use of statutory corridors; Interagency Review Panel. The Interagency Review Panel, as established in Title 5, section 12004-G, subsection 30-D and referred to in this subsection as "the panel," shall oversee the use of statutory corridors in accordance with this section.

A. The panel includes the following members:

(1) The Director of the Governor's Office of Energy Independence and Security within the Executive Department or the director's designee;

(2) The Commissioner of Administrative and Financial Services or the commissioner's designee;

(3) The Commissioner of Economic and Community Development or the commissioner's designee; and

(4) The commissioner of each department or the director of any other state agency that owns or controls land or assets within the statutory corridor under consideration or that commissioner's or director's designee.

B. The panel shall identify an initial range of value for the use of state-owned land or assets within a statutory corridor. The initial range of value must be determined by a professional appraiser who meets the qualifications of paragraph F.

C. The panel shall establish and implement a regular process for soliciting, accepting and evaluating energy infrastructure proposals for use of a statutory corridor. As part of this process, the panel shall provide public notice of the availability of the statutory corridor for energy infrastructure development, a description of the type of development anticipated in the statutory corridor and the opportunity for potential developers to submit proposals for use of the statutory corridor.

D. The panel shall evaluate and render a decision on an energy infrastructure proposal for use of a statutory corridor on the basis of the long-term public interest of the State in accordance with this paragraph.

(1) The panel shall deny an energy infrastructure proposal that does not:

(a) Enhance opportunities for energy generation within the State; and

(b) Significantly and measurably reduce electric rates or other relevant energy costs for residents and businesses within the State.

(2) The panel may accept an energy infrastructure proposal only if the panel finds that the proposal is in the long-term public interest of the State. In determining whether the proposal is in the long-term public interest, the panel shall, at a minimum, consider the extent to which the proposal:

(a) Enhances opportunities for energy generation within the State, including access to the proposed energy infrastructure for renewable energy generation;

(b) Significantly and measurably reduces electric rates or other relevant energy costs for residents and businesses within the State;

(c) Maximizes long-term economic benefits for the State, including but not limited to direct financial benefits, employment opportunities and economic development;

(d) Ensures efficient use of the statutory corridor through collocation of energy infrastructure, collaboration between energy infrastructure developers and the preservation of options for future uses;

(e) Minimizes conflict with the public purposes for which the state-owned land or asset is owned and any management plans for the land or asset within the statutory corridor and, when necessary, mitigates unavoidable impacts;

(f) Limits and mitigates the effects of energy infrastructure on the landscape, including but not limited to using underground installation when economically and technically feasible;

(g) Increases the energy reliability, security and independence of the State; and

(h) Reduces the release of greenhouse gases.

E. If a proposal is accepted pursuant to paragraph D, the panel may enter into negotiations with the potential developer who submitted the proposal regarding a long-term occupancy agreement with the State for the use of the statutory corridor, in accordance with this paragraph.

(1) The panel shall negotiate the terms of the occupancy agreement, including but not limited to the length of the agreement and compensation to the State for use of the statutory corridor. In negotiating the occupancy agreement, the panel shall take into account existing legal commitments, contractual obligations, reasonable investment-backed expectations and relevant prior state investments, when applicable.

(2) Compensation to the State may be in the form of payments made on an annual basis or the functional or financial equivalent, discounted prices for energy products or services, partial ownership by the State of the energy infrastructure on the basis of the value of the statutory corridor in proportion to the energy infrastructure as a whole, or other appropriate form. The terms of compensation may include provisions for periodic adjustment of the compensation to the State over time and reimbursement of costs to the state agency or agencies that own or control the statutory corridor.

(3) Negotiation of compensation to the State must be based on at least one independent appraisal performed by a professional appraiser in accordance with paragraph F. An independent appraisal performed under this subparagraph must, at a minimum, consider the costs that will be avoided by the potential developer, including but not limited to the costs of acquisition, lease or rental of private land, the costs of property taxes on private land, the costs of surveying, appraisal, environmental, engineering and other work necessary for use of private land, the costs of time and potential conflict regarding the use of private land, the unique and limited nature of the state-owned land or asset, the revenues estimated to be generated by the use of the state-owned land or asset and other relevant factors.

F. The panel shall contract for the services of a professional appraiser or appraisers to assist the panel in its duties under this subsection. The professional appraiser contracted under this paragraph must:

(1) Have demonstrated experience in the valuation and evaluation of utility corridors or transportation corridors;

(2) Hold a professional designation from a nationally recognized organization of appraisers; and

(3) Be licensed by this State as a certified general real property appraiser in accordance with Title 32, section 14035 or hold a comparable license from another state.

The cost of the services of a professional appraiser who provides services in accordance with this paragraph must be paid by potential developers submitting proposals for use of the corridor under this subsection in proportion to the amount of time spent by the appraiser on each potential developer's proposal.

G. The following proprietary information, as it pertains to the sale, lease or use of state-owned land or assets under the provisions of this subsection or activities in preparation for such sale, lease or use, is confidential within the meaning of Title 1, section 402, subsection 3, paragraph A and may not be released by the panel or the state agency involved:

(1) Proprietary information in the possession of the state agency; and

(2) Proprietary information in the possession of the panel or a professional appraiser assisting the panel.

H. No later than February 1st of each year, the panel shall provide a written report to the joint standing committee of the Legislature having jurisdiction over utilities and energy matters that documents the activities of and actions taken by the panel under this subsection during the previous calendar year.

1-C. Maine Turnpike Authority easement; Interstate 95 corridor. The Maine Turnpike Authority shall grant an easement to the Department of Transportation along that portion of Interstate 95 designated as the Maine Turnpike to allow its use as part of the Interstate 95 statutory corridor. The Maine Turnpike Authority and the Department of Transportation shall negotiate the terms, size and location of the easement, which must be consistent with Maine Turnpike engineering standards and the compensation, which may be no greater than the administrative costs associated with the transfer of this easement. Notwithstanding Title 23, chapter 24, any revenues generated from the use of the easement as part of the Interstate 95 statutory corridor, including use under an occupancy agreement pursuant to subsection 1-B, paragraph E, must be deposited in the energy infrastructure benefits fund established under Title 5, section 282, subsection 9.

2. Designation of petitioned corridors. The commission may, upon petition, designate energy infrastructure petitioned corridors in accordance with this subsection.

A. The commission may designate an energy infrastructure a petitioned corridor only by rule. Rules adopted pursuant to this subsection are major substantive rules as defined in Title 5, chapter 375, subchapter 2-A.

(1) The rulemaking to designate an energy infrastructure a petitioned corridor must include a public hearing in which any member of the public may submit oral or written testimony or comments, which must be incorporated into the rule-making record in accordance with Title 5, section 8052, subsection 1. The commission shall provide an opportunity for examination of the petitioner at a rule-making hearing. The commission shall allow for written comments by any member of the public up to 7 days prior to the hearing. The commission shall allow a second round of written comments to be filed within 10 days of the hearing or within such longer time as the commission may direct.

(2) In any rulemaking regarding the designation of an energy infrastructure a petitioned corridor, the commission shall address all written comments, including those submitted pursuant to subsection 3, and state its rationale for adopting or rejecting any proposals or recommendations contained in those written comments.

(3) A designation of an energy infrastructure a petitioned corridor must be based on substantial evidence in the record of the rule-making hearing.

B. The commission may commence a proceeding to designate an energy infrastructure a petitioned corridor only upon the filing of a petition for the designation of a petitioned corridor by the Office of the Public Advocate, the Executive Department, Governor's Office of Energy Independence and Security or an interested person a potential developer.

C. The commission shall dismiss a petition for the designation of an energy infrastructure a petitioned corridor filed under this subsection if, after on the basis of a preliminary review , if after the preliminary review the commission determines that the petition:

(1) Does not contain sufficient information to support the designation of an energy infrastructure a petitioned corridor; or

(2) Was filed by a person other than the Office of the Public Advocate, Executive Department, Governor's Office of Energy Independence and Security or an interested person as defined by subsection 1, paragraph E a person listed in paragraph B.

D. The commission may designate an energy infrastructure a petitioned corridor only if the commission finds , after consultation with state agencies and other entities as required under subsection 3, that a statutory corridor, a previously designated petitioned corridor or an abandoned railroad corridor owned or controlled by the Department of Transportation cannot meet the needs of the proposed energy infrastructure and that the future development of energy infrastructure within the petitioned corridor is reasonably likely to be:

(1) In the public interest, including, but not limited to, consideration of:

(a) Encouraging colocation collocation of energy infrastructure;

(b) Enhancing the efficient utilization of existing energy infrastructure; and

(2) Consistent with environmental and land use laws and rules of the State. A finding that the future development of energy infrastructure within the petitioned corridor is reasonably likely to be consistent with environmental and land use laws and rules of the State under this paragraph has no evidentiary value in a subsequent consolidated environmental permit proceeding undertaken by the department pursuant to subsection 6.

E. In designating a geographic area as an energy infrastructure petitioned corridor, the commission shall limit the geographic area of the petitioned corridor to an area no greater in breadth and scope than is necessary to achieve the purposes of this section.

F. The commission may not designate an energy infrastructure a petitioned corridor that is located on in any of the following lands:

(1) Houlton Band Trust Land, as defined in Title 30, section 6203, subsection 2A;

(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; and

(6) Federally owned land.

3. Petitioned corridors; notification and consultation prior to designation. Prior to designating an energy infrastructure a petitioned corridor under subsection 2, the commission shall, at a minimum, notify, consult with and accept comments from:

A. The department;

A-1. A state agency that owns or controls land or assets within the proposed corridor, within a statutory corridor or within a previously designated petitioned corridor;

A-2. The Department of Transportation regarding potential use of abandoned railroad corridors owned or controlled by the department;

B. Appropriate state and federal energy and natural resources protection agencies, as specified by rules adopted pursuant to subsection 9;

C. The municipalities in which the petitioned corridor would be located;

D. The Maine Land Use Regulation Commission and the counties in which the petitioned corridor would be located, if the proposed energy infrastructure petitioned corridor, or any portion of the petitioned corridor, is would be located within unorganized or deorganized territories of the State; and

E. A tribe, if the proposed energy infrastructure petitioned corridor, or any portion of the petitioned corridor, is would be located on land of a tribe other than those lands specified in subsection 2, paragraph F.

4. Use of corridors; certificate and permit required. Development or construction of energy infrastructure within an energy infrastructure corridor is governed by this subsection.

A. A transmission and distribution utility may not engage in development or construction of a transmission line covered by section 3132 within an energy infrastructure corridor, unless:

(1) The commission has issued a certificate of public convenience and necessity approving the transmission line in accordance with section 3132; and

(2) The department has issued a consolidated environmental permit approving the project in accordance with subsection 6.

B. A transmission and distribution utility may not engage in development or construction of energy infrastructure other than a transmission line covered by section 3132 within an energy infrastructure corridor, unless:

(1) The commission has issued a corridor use certificate approving the project in accordance with subsection 5; and

(2) The department has issued a consolidated environmental permit approving the project in accordance with subsection 6.

C. A person that is not a transmission and distribution utility may not engage in development or construction of energy infrastructure within an energy infrastructure corridor, unless:

(1) The commission has issued a corridor use certificate approving the project in accordance with subsection 5; and

(2) The department has issued a consolidated environmental permit approving the project in accordance with subsection 6.

4-A. Use of energy infrastructure corridors; requirements. Development or construction of energy infrastructure within an energy infrastructure corridor is governed by this subsection.

A. A person may not engage in development or construction of energy infrastructure within a statutory corridor, unless:

(1) The person has entered into an occupancy agreement with the Interagency Review Panel in accordance with subsection 1-B and in compliance with applicable state and federal rules, regulations and laws;

(2) The department has issued a consolidated environmental permit for the project in accordance with subsection 6; and

(3) If the project is a transmission line that requires a certificate of public convenience and necessity under section 3132, the commission has issued a certificate of public convenience and necessity for the transmission line.

B. A person may not engage in development or construction of energy infrastructure within a petitioned corridor, unless:

(1) The department has issued a consolidated environmental permit for the project in accordance with subsection 6;

(2) The commission has issued a corridor use certificate for the project in accordance with subsection 5-A; and

5. Corridor use certificate. Whenever a person proposes to develop or construct energy infrastructure within an energy infrastructure corridor, except for a transmission and distribution utility that proposes a transmission line subject to the requirements of section 3132, that person shall file with the commission a petition for a corridor use certificate. The petition for the corridor use certificate must contain such information as the commission by rule requires. The commission shall process a petition for a corridor use certificate in an adjudicatory proceeding. The commission shall issue a corridor use certificate upon a finding that the project is:

A. In the public interest; and

B. Reasonably likely to:

(1) Minimize utility rates or increase the reliability of utility service;

(2) Have the net effect of reducing the release of greenhouse gases; or

(3) Enhance economic development within the State.

5-A. Corridor use certificate. Whenever a person proposes to develop or construct energy infrastructure within a petitioned corridor, that person shall file with the commission a petition for a corridor use certificate. The petition for the corridor use certificate must contain such information as the commission by rule requires. The commission shall process a petition for a corridor use certificate in an adjudicatory proceeding. The commission shall evaluate and render a decision on any petition for a corridor use certificate on the basis of the long-term public interest of the State in accordance with this subsection.

A. The commission shall deny any petition for a corridor use certificate upon a finding that the proposed energy infrastructure would not:

(1) Enhance opportunities for energy generation within the State; and

(2) Significantly and measurably reduce electric rates or other relevant energy costs for residents and businesses within the State.

B. The commission may issue a corridor use certificate for an energy infrastructure proposal only if the commission finds that the proposal is in the long-term public interest of the State. In determining whether the proposal is in the long-term public interest the commission shall, at a minimum, consider the extent to which the proposed energy infrastructure would:

(1) Enhance opportunities for energy generation within the State, including access to the proposed energy infrastructure for renewable energy generation;

(2) Significantly and measurably reduce electric rates or other relevant energy costs for residents and businesses within the State;

(3) Maximize long-term economic benefits for the State, including but not limited to direct financial benefits, employment opportunities and economic development;

(4) Ensure efficient use of the petitioned corridor through collocation of energy infrastructure, collaboration between energy infrastructure developers and the preservation of options for future uses;

(5) Minimize conflict with the public purposes for which the state-owned land or asset is owned and any management plans for the land or asset within the petitioned corridor and, when necessary, mitigate unavoidable impacts;

(6) Limit and mitigate the effects of energy infrastructure on the landscape, including but not limited to using underground installation when economically and technically feasible;

(7) Increase energy reliability, security and independence of the State; and

(8) Reduce the release of greenhouse gases.

The commission shall establish by rule procedures to minimize duplicative filing and review requirements for the corridor use certificate for any transmission line that requires a certificate of public convenience and necessity under section 3132.

6. Environmental review; consolidated environmental permit. Whenever a person proposes to develop or construct energy infrastructure within an energy infrastructure corridor, that person shall file with the department an application for a consolidated environmental permit. The department shall adopt by rule pursuant to subsection 9 a process for the review of applications and the issuance of the consolidated environmental permit in accordance with this subsection. The department may request comments from and consult with other agencies and programs that are required by law to issue separate approvals for some or all projects.

A. A consolidated environmental permit issued by the department takes the place of any other permits or licenses that the department would otherwise require for the proposed project.

B. The application for a consolidated environmental permit must contain such information as the department requires, including, but not limited to, all studies and documentation necessary to determine whether the proposed project is in compliance with the environmental laws of the State administered by the department.

C. The applicant for a consolidated environmental permit shall pay a fee specified by rule and reimburse the department for any additional costs of regulatory review, including expenses for outside peer review or other consultants or experts assisting the department in its review. Outside review of applications under this subsection is governed by Title 38, section 344-A, except that the Commissioner of Environmental Protection is not required to obtain the consent of the applicant to enter into an agreement with an outside reviewer or require that the costs of the outside review be reimbursed by the applicant.

D. The department shall issue its decision on an application for a consolidated environmental permit within a timeframe specified by department rule or guideline. The decision may specify approval, denial or approval in part and denial in part. A proposed project may not be undertaken if it is denied in whole or in part by the department.

E. Upon issuance of a consolidated environmental permit, the department shall certify to the commission that the permit has been issued and whether the proposed project complies, in part or in whole, with the environmental laws of the State administered by the department and whether other agencies and programs that are required by law to issue separate approvals for some or all aspects of the project have taken final agency action on those matters requiring their separate approval.

F. The department shall enforce the terms of the consolidated environmental permit.

G. The terms of the consolidated environmental permit may require additional submissions by the permit holder, studies and approvals with conditions.

If the department receives an application for a permit to develop or construct energy infrastructure within an energy infrastructure corridor prior to adopting a rule to implement this subsection, the department shall process the application in accordance with the department's existing review and permitting procedures.

6-A. Revenues. Except as otherwise provided by law, including the Constitution of Maine, revenues generated from the use of state-owned land and assets within energy infrastructure corridors must be deposited in the energy infrastructure benefits fund established in Title 5, section 282, subsection 9.

7. Eminent domain. This subsection grants and limits certain rights of eminent domain with respect to energy infrastructure corridors.

A. The eminent domain authority of a transmission and distribution utility within an energy infrastructure corridor is governed by section 3136.

B. Subject to approval by the commission, a person that is not a transmission and distribution utility that receives a certificate of public convenience and necessity under section 3132 or a corridor use certificate under subsection 5 5-A to develop energy infrastructure , other than generation interconnection transmission facilities, within an energy infrastructure corridor may take and hold by right of eminent domain lands and easements within that corridor necessary for the proper location of the energy infrastructure covered by the certificate of public convenience and necessity or the corridor use certificate in the same manner and under the same conditions as set forth in chapter 65. The right of eminent domain granted in this paragraph does not apply to:

(1) Lands or easements located within 300 feet of an inhabited dwelling;

(2) Lands or easements on or adjacent to any developed or undeveloped water power;

(3) Lands or easements so closely paralleling existing wire lines of other utilities that the proposed energy infrastructure would substantially interfere with service rendered over the existing lines, except with the consent of the owners;

(4) Lands or easements owned or used by railroad corporations, except as authorized pursuant to section 2311;

(5) Lands or easements owned by the State; and

(6) Transmission and distribution plant that is owned, controlled, operated or managed by a transmission and distribution utility on the effective date of this section.

C. The commission may take and hold by right of eminent domain lands and easements within an energy infrastructure corridor in accordance with this paragraph, notwithstanding any transmission and distribution utility ownership of the lands or easements.

(1) The commission may exercise the authority under this paragraph only in an adjudicatory proceeding upon a petition by the Office of the Public Advocate or the Executive Department, Governor's Office of Energy Independence and Security demonstrating that such action is urgently needed to avoid substantial harm to electricity consumers regarding anticipated activity associated with an energy infrastructure corridor. A determination by the commission that the exercise of eminent domain under this paragraph is urgently needed to avoid substantial harm to electricity consumers regarding anticipated activity associated with an energy infrastructure corridor constitutes reviewable final agency action.

(2) The amount of any lands or easements taken by the commission pursuant to this subsection may be no greater than is required to avoid the harm to electricity consumers identified under subparagraph (1).

(3) The right of eminent domain granted in this paragraph does not apply to personal property, fixtures or improvements that constitute transmission and distribution plant.

(4) The commission may exercise the right of eminent domain for the purposes of this paragraph in the same manner and under the same conditions as set forth in chapter 65. For the purposes of the exercise of eminent domain authorized by this paragraph, the commission is both a person and the State.

(5) The commission is authorized to assess transmission and distribution utilities to the extent necessary to obtain sufficient funds to pay for lands and easements taken pursuant to this subsection.

(6) The commission, in an adjudicatory proceeding upon petition by the Office of the Public Advocate or the Executive Department, Governor's Office of Energy Independence and Security, may transfer or convey to any person or state agency lands and easements once acquired, except that a transmission and distribution utility whose lands or easements were taken pursuant to this paragraph must be given the first opportunity to acquire the lands or easements to the extent necessary or useful in the performance of its duties as a transmission and distribution utility.

(7) The commission shall report on the circumstances of any taking by eminent domain to the joint standing committee of the Legislature having jurisdiction over utilities and energy matters during the next regular session of the Legislature following the acquisition of lands or easements by eminent domain.

8. Utility service territory. Nothing in this section modifies existing restrictions on entities providing service within a public utility's service territory provided under chapter 21.

9. Rules. The commission and the department, as appropriate, shall adopt by rule standards and procedures to implement this section. Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A, except that rules adopted by the commission for the designation of an energy infrastructure a petitioned corridor, pursuant to subsection 2, paragraph A, are major substantive rules.

10. Repeal. This section is repealed July 30, 2011 2015.

PART B

Sec. B-1. 5 MRSA §282, sub-§9, as enacted by PL 2009, c. 372, Pt. F, §3, is repealed and the following enacted in its place:

9. Energy infrastructure benefits fund. To establish an energy infrastructure benefits fund. Except as otherwise provided by law, including the Constitution of Maine, the fund consists of any revenues derived from the use of state-owned land and assets for energy infrastructure development pursuant to Title 35-A, section 122. Each fiscal year, all revenues collected in the fund must be transferred by the Treasurer of State to the Efficiency Maine Trust for deposit by the Efficiency Maine Trust Board in program funds pursuant to Title 35-A, section 10103, subsection 4 and use by the trust in accordance with Title 35-A, section 10103, subsection 4-A. For the purposes of this subsection, "energy infrastructure" has the same meaning as in Title 35-A, section 122, subsection 1, paragraph B.

Sec. B-2. 35-A MRSA §10103, sub-§4, as enacted by PL 2009, c. 372, Pt. B, §3, is amended to read:

4. Program funding. The board may apply for and receive grants from state, federal and private sources for deposit into appropriate program funds. The board may deposit in appropriate program funds the proceeds of any bonds issued for the purposes of programs administered by the trust. The board may receive and shall deposit in appropriate program funds revenue resulting from any forward capacity market or other capacity payments from the regional transmission organization that may be attributable to by those projects funded those by those funds. The board shall deposit into appropriate program funds revenue transferred to the trust from the energy infrastructure benefits fund pursuant to Title 5, section 282, subsection 9 for use in accordance with subsection 4-A. The board may also deposit any grants or other funds received by or from any entity with which the trust has an agreement or contract pursuant to this chapter if the board determines that receipt of those funds is consistent with the purposes of this chapter.

Sec. B-3. 35-A MRSA §10103, sub-§4-A is enacted to read:

4-A. Use of energy infrastructure benefits fund. Revenues transferred to the trust from the energy infrastructure benefits fund pursuant to Title 5, section 282, subsection 9, must be used by the trust on a competitive basis to ensure the steady transition to energy independence and security for the people, communities, economy and environment of the State. In the expenditure of funds pursuant to this subsection, the board shall give preference to proposals in the following categories in the following order, with a maximum of 50% of expenditures in any fiscal year in any one category:

A. Grants and loans to manufacturing entities for energy efficiency initiatives;

B. Grants and loans to increase efficiency in the ways homes and businesses are heated, energy is used and people and cargo are transported; and

C. Economic incentives for the development of renewable energy resources.

The director shall provide a report to the joint standing committee of the Legislature having jurisdiction over utilities and energy matters annually by January 15th regarding the use of revenues from the energy infrastructure benefits fund. The report must document the revenues transferred from the energy infrastructure benefits fund to the trust during the most recently completed fiscal year and the current fiscal year and amounts and uses of money expended by the trust in accordance with this subsection during the most recently completed and the current fiscal year.

PART C

Sec. C-1. 2 MRSA §9, sub-§3, ¶C, as amended by PL 2009, c. 372, Pt. H, §2, is further amended to read:

C. In consultation with the Efficiency Maine Trust Board, established in Title 5, section 12004-G, subsection 10-C, prepare and submit a comprehensive state energy plan to the Governor and the Legislature by January 15, 2009 and submit an updated plan every 2 years thereafter . Within the comprehensive state energy plan, the director shall identify transmission capacity and infrastructure needs and recommend appropriate actions to facilitate the development and integration of new renewable energy generation within the State and support the State's renewable resource portfolio requirements specified in Title 35-A, section 3210 and wind energy development goals specified in Title 35-A, section 3404;

Sec. C-2. 2 MRSA §9, sub-§4 is enacted to read:

4. Advice to state agencies. The director shall advise state agencies regarding energy-related principles for agencies to consider, along with the laws and policies governing those agencies, in conjunction with the sale, lease or other allowance for use of state-owned land or assets for the purpose of development of energy infrastructure, as defined by Title 35-A, section 122, subsection 1, paragraph B. At a minimum, the director shall consider the following principles in advising state agencies under this subsection:

A. Enhancing opportunities for energy generation within the State, including access to the proposed energy infrastructure for renewable energy generation;

B. Significantly and measurably reducing electric rates or other relevant energy costs for residents and businesses within the State;

C. Maximizing long-term economic benefits for the State, including but not limited to direct financial benefits, employment opportunities and economic development;

D. Ensuring efficient use of the state-owned land or asset through collocation of energy infrastructure, collaboration between energy infrastructure developers and preservation of options for future uses;

E. Minimizing conflict with the public purposes for which the state-owned land or asset is owned and any management plans for the land or asset and, when necessary, mitigating unavoidable impacts;

F. Limiting and mitigating the effects of energy infrastructure on the landscape, including but not limited to using underground installation when economically and technically feasible;

G. Increasing the State's energy independence, reliability and security;

H. Reducing the release of greenhouse gases;

I. Avoiding wherever possible the use of lands subject to the provisions of the Constitution of Maine, Article IX, Section 23; and

J. Maximizing the benefit realized from this State's strategic location within New England and the northeastern region.

Sec. C-3. 35-A MRSA §3132, sub-§13, as amended by PL 2009, c. 123, §6, is further amended to read:

13. Public lands. The State, any agency of the State or any political subdivision of the State may not sell, lease or otherwise convey any interest in public land, other than a future interest or option to purchase an interest in land that is conditioned on satisfaction of the terms of this subsection, to any person for the purpose of constructing a transmission line subject to this section, unless the person has received a certificate of public convenience and necessity from the commission pursuant to this section.

A person who has bought, leased or otherwise been conveyed any interest in public land for the purpose of constructing a transmission line may not undertake construction of that line except under the terms of the certificate of public convenience and necessity as originally issued for that transmission line by the commission or as modified by order of the Department of Environmental Protection under subsection 7 or under the terms of an amended certificate of public convenience and necessity issued by the commission or deemed to have been issued by the commission under subsection 11-A.

As used in this subsection, "public land" means land that is owned or controlled by the State, by an instrumentality of the State or by a political subdivision of the State.

As used in this subsection, "future interest or option to purchase an interest in land" includes an option, purchase and sale agreement or other equivalent legal instrument that conveys the intent to pursue a future sale, lease or other conveyance of land.

Sec. C-4. Legislative review; implementation. The joint standing committee of the Legislature having jurisdiction over utilities and energy matters shall review the implementation of this Act during the First Regular Session of the 125th Legislature. Based on its review, the joint standing committee may submit a bill relating to this Act to the First Regular Session of the 125th Legislature.

Sec. C-5. Department of Transportation report. By January 15, 2011, the Department of Transportation shall report to the joint standing committee of the Legislature having jurisdiction over utilities and energy matters regarding current and potential uses of abandoned railroad corridors owned or controlled by the department for energy infrastructure development.

summary

This bill amends the laws governing energy infrastructure corridors to designate several state-owned energy infrastructure corridors as "statutory corridors" and to continue a petition process for "petitioned corridors." The bill establishes a process for the State to use when entering into occupancy agreements for construction and development of energy infrastructure within statutory corridors. It establishes an interagency review panel to oversee the use of the statutory corridors, including soliciting, accepting and evaluating proposals for the use and establishing standards for approval of the use of statutory corridors to ensure that their use is in the long-term best interests of the State. It requires a long-term occupancy agreement, a consolidated environmental permit from the Department of Environmental Protection and, if the project is a transmission line, a certificate of public convenience and necessity from the Public Utilities Commission.

The bill establishes standards for the use of a petitioned corridor, requiring all projects to obtain a corridor use certificate from the Public Utilities Commission and requiring the Public Utilities Commission to deny projects that do not enhance opportunities for energy generation in the State and significantly and measurably reduce electric rates or other relevant energy costs for residents and businesses within the State.

The bill requires that, except when prohibited by law, including the Constitution of Maine, all revenues generated from the use of state-owned land and assets within energy infrastructure corridors be deposited in an energy infrastructure benefits fund and from there transferred to the Efficiency Maine Trust and used on a competitive basis to ensure the steady transition to energy independence and security. It requires the Efficiency Maine Trust, in the expenditure of funds, to give preference to proposals in 3 specific categories, with no more than 50% of expenditures in any one fiscal year devoted to any one category.

The bill amends the laws governing the repeal date for the energy infrastructure corridor laws, changing the date from July 30, 2011 to July 30, 2015.

The bill requires annual reports to the joint standing committee of the Legislature having jurisdiction over utilities and energy matters from the interagency review panel regarding the activities of the panel in overseeing use of the statutory corridors and from the Efficiency Maine Trust regarding expenditure of funds from the energy infrastructure benefits fund. In addition, it requires the Department of Transportation to report by January 15, 2011 regarding current and potential uses of abandoned railroad corridors for energy infrastructure development. Finally, the bill requires the joint standing committee of the Legislature having jurisdiction over utilities and energy matters to review the implementation of this legislation during the First Regular Session of the 125th Legislature and authorizes the committee to submit a bill based on its review.

HP1274 LD 1786	Second Regular Session - 124th Maine Legislature Text: MS-Word, RTF or PDF		LR 2578 Item 1
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