124th MAINE LEGISLATURE
		LD 1485		LR 1989(01)
	An Act Regarding Maine's Energy Future
	Preliminary Fiscal Impact Statement for Original Bill
	Sponsor:
	Committee: Not Referred
	Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
Legislative Cost/Study
			2009-10	2010-11	Projections 2011-12	Projections 2012-13
Net Cost (Savings)
	General Fund		$0	$0	$3,000,000	$3,000,000
Appropriations/Allocations
	Federal Expenditures Fund		$0	$0	$0	$0
	Other Special Revenue Funds		$900,000	$892,000	$3,892,000	$3,892,000
	Federal Expenditures Fund ARRA		$0	$0	$0	$0
	Federal Block Grant Fund ARRA		$0	$0	$0	$0
Revenue
	General Fund		$0	$0	($3,000,000)	($3,000,000)
	Other Special Revenue Funds		$0	$891,000	$3,891,000	$3,891,000
Transfers
	Other Special Revenue Funds		$0	$0	$0	$0
	Federal Expenditures Fund ARRA		$0	$0	$0	$0
Fiscal Detail and Notes
	This bill establishes the Efficiency Maine Trust (EMT) for the purposes of developing, planning, coordinating and implementing energy efficiency and alternative energy resource programs in the State. The EMT will assume responsibility for the following programs currently under the Public Utilities Commission (PUC) as of July 1, 2010: the Energy Carbon Savings Trust Fund, the Conservation Program Fund, the Conservation Administration Fund, the Solar and Wind Energy Rebate Program Fund, the Energy Conservation Small Business Revolving Loan Fund, all of the PUC monies received for programs under the American Recovery and Reinvestment Act of 2009 (ARRA).  Any funds under the Maine Conservation Energy Board, which is repealed as of July 1, 2010, are also transferred to the EMT.
	Additional funds managed by EMT will be the Natural Gas Conservation Fund (NGCF) and the Heating Fuels Efficiency and Weatherization Fund (HFEW).  The NGCF is created as a nonlapsing fund established to promote the efficient use of natural gas. An assessment of no less than 3% of natural gas utilities' delivery revenues will be applied on each gas utility that serves at least 5,000 residential customers.  The revenue expected from this assessment is $891,000 annually.  The HFEW is created as a nonlapsing fund established to reduce heating fuel consumption consistent with the purpose of the EMT and the triennial plan to be developed.  The funding source for HFEW is expected to be federal funds, awards or proceeds from any bonds, repayment of loans and any other private or public source available.  A base allocation of $500 has been provided to authorize the expenditure of any funds received.
	This bill establishes an Oversight and Evaluation Fund program at the Public Utilities Commission to be used solely to defray the commission's projected costs of overseeing the trust. An amount not to exceed 1% of the total funds administered by the EMT trust may be used for the oversight and evaluation fund.  A base allocation of $500 is included for the commission in the event that an assessment is implemented and expenditures incurred in fiscal year 2010-11.
	The PUC Conservation Administration Fund is transferred to the EMT, including 2 Federal Expenditures Fund positions, 9 Other Special Revenue Funds positions and 6 limited-period positions funded by the American Recovery and Reinvestment Act of 2009 for a total of 17 positions and associated costs.  The bill includes deallocations and allocations to accomplish these transfers.
	Additionally, a $700,000 allocation is provided in 2009-10 to the EMT's administrative fund to cover costs associated with the initial year of the Trust. A corresponding deallocation and transfer from the PUC Reimbursement account provides the $700,000.
	This bill includes a $200,000 Other Special Revenue Funds allocation to the Legislature for the Commission to Study Energy Infrastructure.  A transfer from the Public Utilities Commission Reimbursement account provides the funding for the study.
	All transfers to the Efficiency Maine Trust must be made as of July 1, 2010.  After July 1, 2010, fees collected under Title 35-A, chapter 97 must be transferred to the Efficiency Maine Trust on a monthly basis. Any additional increases or allocations necessary to the Efficiency Maine Trust will be made by financial order.
	This bill establishes the Maine Energy, Housing and Economic Recovery Program within the Maine State Housing Authority (MSHA) to support the construction and substantial rehabilitation of  eligible rental housing units as well as the replacement of certain manufactured housing units.  This bill creates the Maine Energy, Housing and Economic Recovery Fund as a dedicated Other Special Revenue Funds account within MSHA for funds received to support the purposes of the program including funds transferred by the Treasurer from the General Fund portion of the Real Estate Transfer Tax.
	This legislation authorizes MSHA to issue revenue bonds to carry out the purposes of the program beginning in fiscal year 2010-11 and limits the aggregate principal amount outstanding at any one time from these revenue bonds to $200,000,000, excluding refunding bonds.  This legislation also authorizes the use of the General Fund portion of the Real Estate Transfer Tax to pay for the Maine State Housing Authority's obligations relating to the bonds issued or planned to be issued for the purposes of the program beginning in fiscal year 2011-12.  This fiscal note assumes that MSHA will issue $30,000,000 per year in revenue bonds and that the amount of funds to be paid to MSHA from the General Fund share of the Real Estate Transfer Tax for the costs of the bonds issued will be $3,000,000 per year beginning in fiscal year 2011-12.  The actual amount of funds to be transferred annually by the Treasurer to MSHA can not be determined at this time and will depend on the actual amount certified by MSHA to be necessary and sufficient to pay for the costs of the program.
	The Center for Workforce Research and Information within the Department of Labor has indicated that it will incur additional costs of approximately $18,000 to $25,000 per year to determine the number of new jobs created by this legislation.  Because this bill is silent as to who will be responsible for making that determination, this fiscal note does not provide General Fund appropriations to the Center for these costs.  Instead, this fiscal note assumes that the Trust will contract for those services and will provide the necessary funding for the project. Additional costs to the Department of Labor to work with the Public Utilities Commission and the Maine State Housing Authority to perform the required assessment and develop the required plan can be absorbed within existing budgeted resources.
	Additional costs to the Governor's Office of Energy Independence and Security, the Finance Authority of Maine, the University of Maine System, the Plumber's Examining Board and the Electrician's Examining Board within the Department of Professional and Financial Regulation, the Department of Education, the Department of Environmental Protection, the Public Utilities Commission and the State Planning Office can be absorbed within existing budgeted resources.