An Act To Protect the Integrity of the State's Carbon Dioxide Budget Trading Program and Auction Process and To Provide Allocations to the Energy and Carbon Savings Trust Fund
Emergency preamble. Whereas, acts and resolves of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, the Maine State Legislature enacted the Regional Greenhouse Gas Initiative Act of 2007, or RGGI, which is designed to stabilize and then reduce anthropogenic emissions of carbon dioxide, a greenhouse gas, from large electrical generating sources using a cap-and-trade mechanism; and
Whereas, the cap-and-trade mechanism uses an auction platform to sell state allocations of carbon dioxide allowances that will generate revenue for the State for purposes of electrical and fossil fuel conservation; and
Whereas, RGGI established the Energy and Carbon Savings Trust to oversee the expenditure of auction revenue on cost-effective electrical and fossil fuel conservation measures, investments and arrangements that will provide the citizens of the State with measurable economic and greenhouse gas reduction benefits; and
Whereas, RGGI also established the Energy and Carbon Savings Trust Fund, for the Energy and Carbon Savings Trust, to receive and expend revenue money associated with the auctioned sale of RGGI allowances but did not provide for allocation for receipt and expenditure of the auction revenues within the Energy and Carbon Savings Trust Fund; and
Whereas, the current statutory limit on the administrative costs of the Energy and Carbon Savings Trust may not enable the trust to adequately perform certain functions necessary to ensure that the expenditures from the Energy and Carbon Savings Trust Fund meet the statutory obligations of the trust; and
Whereas, the participating RGGI states conducted an auction in September 2008 and an auction in December 2008, and auctions are expected to continue at quarterly intervals in the future; and
Whereas, this much-needed revenue could be used to decrease electrical and heating energy costs beginning this winter for the State's citizens; and
Whereas, the Governor has declared that emergency conditions exist this winter for many citizens due to the unprecedented increases in petroleum product prices; and
Whereas, in addition, the primary purpose of the RGGI auction platform is to sell the State's allocations of carbon dioxide allowances at prices that are reflective of a competitive market that is free from collusion and market manipulation among the auction participants; and
Whereas, the release of RGGI information specific to any one account holder, including all auction bids and awards, carbon dioxide allowance and carbon dioxide offset allowance holdings and transactions or any applications and financial security information or summaries thereof, has the potential to increase collusive or market manipulative behavior in RGGI auctions; and
Whereas, there is an immediate need to ensure future RGGI auctions will have robust competitive market conditions; and
Whereas, Public Law 2007, chapter 317, section 15 established a system under which the proceeds from the sale of carbon dioxide allowances are returned to electric customers as direct credits on their bills when the price of the allowances in the regional allowance market rises above a statutorily established price ceiling; and
Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,
Sec. 1. 35-A MRSA §10008, sub-§5, as amended by PL 2007, c. 695, Pt. A, §42, is further amended to read:
Sec. 2. 35-A MRSA §10008, sub-§6, ¶G, as amended by PL 2007, c. 608, §2, is repealed and the following enacted in its place:
(1) Costs of the Department of Environmental Protection for participating in the regional organization as defined in Title 38, section 580-A, subsection 20 and for administering the allowance auction under Title 38, chapter 3-B; and
(2) Costs of the Attorney General for activities pertaining to the tracking and monitoring of allowance trading activity and managing and evaluating the trust's funding of conservation programs.
Sec. 3. 38 MRSA §580-A, sub-§1-A is enacted to read:
Sec. 4. 38 MRSA §580-A, sub-§4, as enacted by PL 2007, c. 317, §17, is amended to read:
Sec. 5. 38 MRSA §580-A, sub-§6-A is enacted to read:
Sec. 6. 38 MRSA §580-A, sub-§18-A is enacted to read:
Sec. 7. 38 MRSA §580-B, sub-§7, as enacted by PL 2007, c. 317, §17, is amended to read:
Sec. 8. 38 MRSA §580-B, sub-§10, ¶E, as enacted by PL 2007, c. 317, §17, is amended to read:
Sec. 9. 38 MRSA §580-B, sub-§10, ¶F, as enacted by PL 2007, c. 317, §17, is amended to read:
Sec. 10. 38 MRSA §580-B, sub-§10, ¶G is enacted to read:
Sec. 11. 38 MRSA §580-B, sub-§11 is enacted to read:
(1) Auction bid and award information specific to any one account holder;
(2) Carbon dioxide allowance and carbon dioxide offset allowance account holdings; and
(3) Carbon dioxide allowance and carbon dioxide offset allowance transactions.
This paragraph does not prohibit the release of carbon dioxide allowance and carbon dioxide offset allowance account holdings and transactions in an aggregated form that does not permit the identification of any person or entity.
The commissioner may release information described in subparagraph (1), (2) or (3) before the expiration of the 3-year period if the commissioner determines that confidentiality of that information is no longer required to protect the integrity of individual auctions administered under the carbon dioxide cap-and-trade program.
(1) Proprietary information contained in documents required to be submitted to participate in an auction conducted under the carbon dioxide cap-and-trade program; and
(2) Carbon dioxide allowance and carbon dioxide offset allowance transaction prices. This subparagraph does not prohibit the release of transaction prices calculated in an aggregated manner that does not permit the identification of any person or entity.
Records containing any emission, offset or allowance tracking information submitted for the purpose of demonstrating compliance with the carbon dioxide cap-and-trade program and rules adopted to implement the program are public records subject to disclosure under Title 1, chapter 13.
Sec. 12. Public Law 2007, c. 317, §24, sub-§3 is repealed.
Sec. 13. Appropriations and allocations. The following appropriations and allocations are made.
PUBLIC UTILITIES COMMISSION
Energy and Carbon Savings Trust Fund N027
Initiative: Provides an allocation to the Energy and Carbon Savings Trust Fund that will be used to reduce electricity consumption and greenhouse gas emissions.
| OTHER SPECIAL REVENUE FUNDS | 2008-09 | 2009-10 | 2010-11 |
|
All Other
|
$30,000,000 | $30,000,000 | $30,000,000 |
 |
|
|
|
| OTHER SPECIAL REVENUE FUNDS TOTAL | $30,000,000 | $30,000,000 | $30,000,000 |
Emergency clause. In view of the emergency cited in the preamble, this legislation takes effect when approved.