131st MAINE LEGISLATURE
		LD 818		LR 1769(02)
	An Act to Establish an Emergency Fuel Reserve
	Fiscal Note for Bill as Amended by Committee Amendment " "
	Committee: Innovation, Development, Economic Advancement and Business
	Fiscal Note Required: Yes
Fiscal Note
			FY 2023-24	FY 2024-25	Projections  FY 2025-26	Projections  FY 2026-27
Net Cost (Savings)
	General Fund		$18,747,600	$18,747,600	$18,747,600	$18,747,600
Appropriations/Allocations
	General Fund		$18,747,600	$18,747,600	$18,747,600	$18,747,600
Fiscal Detail and Notes
	This bill requires the Governor's Energy Office (GEO) to contract with one or more petroleum companies to purchase and guarantee the availability of an emergency reserve of #2 heating oil used for heating residential, industrial or commercial space or water. The reserve is required to be large enough to provide heating oil to residents of Maine for a period of 30 days. Fuel may be purchased in annual increments until the reserve reaches its 30-day goal by January 1, 2029. The bill includes ongoing General Fund appropriations of $500,000 to the GEO starting in fiscal year 2023-24 for contracted services to store and manage the reserve. It also includes ongoing General Fund appropriations of $18,247,600 beginning in fiscal year 2023-24 for the annual incremental purchase of fuel oil. These purchases are the amounts needed over 6 years to bring the reserve up to its full 30-day capacity. They do not include any additional amounts to make up for any fuel used during this period. This estimate incorporates the assumptions listed below.
			30 day supply at time of peak demand (coldest)	31,920,000	gallons
			Price assumption	$3.43	per gallon
			Total cost for reserve	$109,485,600	30 days
			Annual purchase	$18,247,600	for 6 years
			Storage and management	$500,000	every year
			Appropriations needed	$18,747,600	annually for 6 years