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An Act To Change the Name of the Governor's Office of Energy Independence and Security
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 2 MRSA§9, as amended by PL 2011, c. 400, §§1 and 2, is further amended to read:
§ 9.Governor's Energy Office
 
1. Office established.   The Governor's Office of Energy Independence and SecurityOffice, referred to in this section as "the office," is established in the Executive Department to carry out responsibilities of the State relating to energy resources, planning and development. The office is directly responsible to the Governor.
 
2. Director.   The office is under the control and supervision of the Director of the Governor's Office of Energy Independence and SecurityOffice, referred to in this section as "the director." The director is appointed by the Governor and serves at the pleasure of the Governor.
 
2-A. Funding.  The office is funded from an annual allocation from the funds of the Efficiency Maine Trust, established in Title 35-A, chapter 97, and federal funds. The director may request from the Efficiency Maine Trust, established in Title 35-A, chapter 97, and the trust mayshall provide from funds available to it funding sufficient to carry out the duties of the office under sectionsubsection 3 and any other applicable law.
 
3. Duties.   The director is responsible for the execution of the duties of the office. The director shall:
 
A.  Serve as a member of the Efficiency Maine Trust Board, established under Title 5, section 12004-G, subsection 10-C;
 
B. In collaboration with the relevant state agencies, coordinate state energy policy and actively foster cooperation with the Efficiency Maine Trust, established in Title 35-A, chapter 97;
 
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 opportunities to lower the total cost of energy to consumers in this State and transmission capacity and infrastructure needs and recommend appropriate actions to lower the total cost of energy to consumers in this State and 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. The comprehensive state energy plan must include a section that specifies the State's progress in meeting the oil dependence reduction targets in subsection 5. The office shall make recommendations, if needed, for additional legislative and administrative actions to ensure that the State can meet the reduction targets in subsection 5. The recommendations must include a cost and resource estimate for technology development needed to meet the reduction targets;
 
C-1. By February 1st of each year, prepare and submit to the joint standing committee of the Legislature having jurisdiction over utilities and energy matters an annual report that describes the activities of the office during the previous calendar year in carrying out its duties under this subsection and describes the State's progress in implementation of the state energy plan prepared pursuant to paragraph C. After receipt and review of the annual report required under this paragraph, the joint standing committee of the Legislature having jurisdiction over utilities and energy matters may submit legislation relating to energy policy;
 
D. In collaboration with other relevant state agencies, private industry and nonprofit organizations, collect and analyze energy data, including, but not limited to, data on energy supply, demand and costs in this State with consideration of all available energy sources;
 
E. Coordinate the dissemination of energy information to the public and the media;
 
F. Provide technical assistance and information to the Governor and the Legislature regarding the State's short-range and long-range energy needs and the resources to meet those needs;
 
G. Seek funds and partnerships with public and private sources to support the goals of the office, including, but not limited to, promoting energy efficiency, demand-side management and distributed generation;
 
H. Work with transmission and distribution utilities, state agencies involved in the permitting of energy generation facilities and other relevant entities to negotiate agreements that create value for electricity consumers with developers of renewable generation who are interested in building energy generation facilities or developing or utilizing energy transmission infrastructure in this State. This paragraph does not authorize the director to be a signatory to any such agreement unless that authority is otherwise granted by law. The director shall report on activities undertaken pursuant to this paragraph by February 1, 2009, and annually thereafter, to the joint standing committee of the Legislature having jurisdiction over utilities and energy matters;
 
I. Monitor energy transmission capacity planning and policy affecting this State and the regulatory approval process for the development of energy infrastructure pursuant to Title 35-A, section 122 and make recommendations to the Governor and the Legislature as necessary for changes to the relevant laws and rules to facilitate energy infrastructure planning and development; and
 
J. Take action as necessary to carry out the goals and objectives of the state energy plan prepared pursuant to paragraph C including lowering the total cost of energy to consumers in this State.
 
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. For the purposes of this subsection, "state-owned" and "energy infrastructure corridor" have the same meanings as in Title 35-A, section 122, subsection 1. At a minimum, the director shall consider the following principles in advising state agencies under this subsection:
 
A. The principles for the determination of the long-term public interest of the State as specified in Title 35-A, section 122, subsection 1-D, paragraph B;
 
B. Avoiding wherever possible the use of lands subject to the provisions of the Constitution of Maine, Article IX, Section 23;
 
C. Maximizing the benefit realized from the State's strategic location within New England and the northeastern region; and
 
D. Complying with the provisions of the memorandum of agreement between the Maine Turnpike Authority and the Department of Transportation under Title 35-A, section 122, subsection 1-C, when applicable.
 
Nothing in this subsection alters any of the responsibilities or limits any of the authority of the Department of Administrative and Financial Services, Bureau of General Services pursuant to Title 5. Nothing in this subsection alters or limits the ability of departments or agencies of the State, along with the Bureau of General Services pursuant to Title 5, to generate or cogenerate energy at state facilities for use on site and elsewhere.
 
5. Oil dependence reduction plan.   The office, with input from stakeholders and in consultation with the Efficiency Maine Trust, shall develop a plan to reduce the use of oil in all sectors of the economy in this State. The plan must:
 
A. Be designed to achieve the targets of reducing the State's consumption of oil by at least 30% from 2007 levels by 2030 and by at least 50% from 2007 levels by 2050;
 
B. Focus on near-term policies and infrastructure changes that set the State on a reasonable trajectory to meet the 2030 and 2050 targets in paragraph A;
 
C. Prioritize the improvement of energy efficiency and the transition to the use of alternative energy sources for heating and transportation; and
 
D. Draw on existing state data and studies rather than new analyses, including, but not limited to, analyses and data from the State's climate action plan pursuant to Title 38, section 577 and the progress updates to the climate action plan under Title 38, section 578, the comprehensive state energy plan pursuant to subsection 3, paragraph C, the Efficiency Maine Trust's triennial plan pursuant to Title 35-A, section 10104, subsection 4 and analyses completed by the Federal Government, nonprofit organizations and other stakeholders.
Sec. 2. 10 MRSA §1023-K, sub-§1, as amended by PL 2009, c. 124, §2, is further amended to read:
 
1. Established; fund administration.   The Clean Fuel Vehicle Fund, referred to in this section as the "fund," is established under the jurisdiction of the authority to support production, distribution and consumption of clean fuels and biofuels. In administering the fund, the authority shall consult and provide opportunity for input from the Governor's Office of Energy Independence and SecurityOffice within the Executive Department.
Sec. 3. 10 MRSA §1023-K, sub-§3-B, as enacted by PL 2009, c. 124, §2, is amended to read:
 
3-B. Application of fund.   The fund may be used in accordance with this subsection.
 
A. The fund may be applied to carry out any power of the authority under or in connection with section 1026-A, subsection 1, paragraph A, subparagraph (1), division (c), including, but not limited to, the pledge or transfer and deposit of money in the fund as security for and the application of the fund to pay principal, interest and other amounts due on insured loans.
 
B. The fund may be used for direct loans to finance all or part of any clean fuel or sustainable biofuel vehicle project when the authority determines that:
 
(1) The applicant demonstrates a reasonable likelihood that the applicant will be able to repay the loan;
 
(2) The project is technologically feasible; and
 
(3) The project will contribute to a reduction of or more efficient use of fossil fuels.
 
C. The fund may be used for grants to support clean fuel and sustainable biofuel production, distribution and consumption. The authority, in consultation with the Governor's Office of Energy Independence and SecurityOffice within the Executive Department, shall establish a formula and method for the awarding of grants under this paragraph.
 
D. The fund may be used for reasonable development and administration costs for an online contribution process, in accordance with subsection 6.
 
E. The fund may be used for reasonable initial and ongoing administrative costs of the authority to implement this section.
 
The authority, in consultation with the Governor's Office of Energy Independence and SecurityOffice within the Executive Department, shall adopt rules for determining eligibility, project feasibility, terms, conditions and security for loans under this section. Rules adopted pursuant to this subsection are routine technical rules under Title 5, chapter 375, subchapter 2-A.
Sec. 4. 10 MRSA §1043, sub-§2, ¶O, as enacted by PL 2011, c. 261, §4, is amended to read:
 
O. In the case of an energy distribution system project regulated by the Public Utilities Commission with respect to rates or terms of service or that requires, for construction or operation, authorization or certification from the commission, the following conditions are met.
 
(1) The energy distribution system project has received all authorizations or certifications from the Public Utilities Commission necessary for construction and operation of the project. The authority may issue a certificate of approval for a project that has received conditional approvals or certifications from the commission, except that the authority's certificate becomes legally effective only upon fulfillment of the conditional provisions of the commission's certificates or approvals. If the commission has approved rates to be charged by the project or has issued a certificate of public convenience and necessity for the project, the authority shall take into consideration any findings and conclusions of law of the commission, including any findings and conclusions pertaining to the need for the project and the financial viability of the project.
 
(2) The authority has reviewed and considered any comments provided by the Director of the Governor's Office of Energy Independence and SecurityOffice and the Public Advocate.
 
(3) The authority has determined that the applicant is creditworthy and that there is a reasonable likelihood that the revenue obligation securities will be repaid through the revenues of the project and any other sources of revenues and collateral pledged to the repayment of those securities. In order to make these determinations, the authority shall consider such factors as it considers necessary and appropriate in light of the special purpose or other nature of the business entity owning the project and the specific purposes of the project to measure and evaluate the project and the sufficiency of the pledged revenues to repay the obligations, including, but not limited to:
 
(a) Whether the individuals or entities obligated to repay the obligations have demonstrated sufficient revenues from the project or from other sources to repay the obligations and a reasonable probability that those revenues will continue to be available for the term of the revenue obligation securities;
 
(b) Whether the applicant demonstrates a reasonable probability that the project will continue to operate and provide the public benefits projected to be created for the term of the revenue obligation securities;
 
(c) Whether the applicant's creditworthiness is demonstrated by factors such as its historical financial performance, management ability, plan for marketing its product or service and ability to access conventional financing;
 
(d) Whether the applicant meets or exceeds industry average financial performance ratios commonly accepted in determining creditworthiness in that industry;
 
(e) Whether the applicant demonstrates that the need for authority assistance is due to the reduced cost and increased flexibility of the financing for the project that result from authority assistance and not from an inability to obtain necessary financing without the capital reserve fund security provided by the authority;
 
(f) Whether collateral securing the repayment obligation is reasonably sufficient under the circumstances;
 
(g) Whether the proposed project enhances the opportunities for economic development;
 
(h) The effect that the proposed project financing has on the authority's financial resources;
 
(i) The financial performance of similar projects;
 
(j) The need for the project, as determined by the Public Utilities Commission and as indicated by any comments provided by the Director of the Governor's Office of Energy Independence and SecurityOffice, other public officials and members of the public;
 
(k) The nature and extent of customer commitment to use the project or the fuel or energy the project distributes or transmits; and
 
(l) The cost advantages to end users of the fuel or energy to be distributed or transmitted by the project, to the extent those advantages may affect market penetration by the project.
Sec. 5. 10 MRSA §9722, sub-§2, ¶I, as enacted by PL 2007, c. 699, §6, is amended to read:
 
I. An energy efficiency representative, recommended by the directorDirector of the Governor's Office of Energy Independence and SecurityOffice within the Executive Department, who has experience or expertise in the design or implementation of energy codes or in the application of energy efficiency measures in residential or commercial construction;
Sec. 6. 35-A MRSA §122, sub-§1-B, ¶A, as enacted by PL 2009, c. 655, Pt. A, §2, is amended to read:
 
A. The panel includes the following members:
 
(1) The Director of the Governor's Office of Energy Independence and SecurityOffice 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 each department or the director of any other state agency or authority that owns or controls land or assets within the statutory corridor under consideration or that commissioner's or director's designee; and
 
(4) Four members of the public appointed by the Governor in accordance with this subparagraph, subject to review by the joint standing committee of the Legislature having jurisdiction over utilities and energy matters and to confirmation by the Senate:
 
(a) One member with expertise in energy and utilities selected from candidates nominated by the President of the Senate;
 
(b) One member with expertise in real estate or finance selected from candidates nominated by the President of the Senate;
 
(c) One member representing industrial or commercial energy consumers selected from candidates nominated by the Speaker of the House; and
 
(d) One member representing residential energy consumers selected from candidates nominated by the Speaker of the House.
 
Public members serve 3-year terms, except that a vacancy must be filled for the unexpired portion of the term. A public member serves until a successor is appointed. A public member may serve a maximum of 2 consecutive terms. Compensation of public members is as provided in Title 5, section 12004-G, subsection 30-D.
Sec. 7. 35-A MRSA §122, sub-§2, ¶B, as amended by PL 2009, c. 655, Pt. A, §2, is further amended to read:
 
B. The commission may commence a proceeding to designate 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 SecurityOffice or a potential developer.
Sec. 8. 35-A MRSA §122, sub-§7, ¶C, as amended by PL 2009, c. 655, Pt. A, §2, is further amended to read:
 
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 SecurityOffice 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 or an energy transport pipeline.
 
(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 SecurityOffice, may transfer or convey to any person or state agency or authority lands and easements once acquired, except that a transmission and distribution utility or the owner of an energy transport pipeline 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 or an owner of an energy transport pipeline.
 
(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.
Sec. 9. 35-A MRSA §10103, sub-§2, ¶A, as enacted by PL 2009, c. 372, Pt. B, §3, is amended to read:
 
A. The board consists of the following 9 voting members:
 
(1) The directorDirector of the Governor's Office of Energy Independence and SecurityOffice;
 
(2) The director of the Maine State Housing Authority; and
 
(3) Seven members appointed by the Governor, reviewed by the joint standing committee of the Legislature having jurisdiction over energy matters and approved by the Senate. Among these 7 members must be persons who adequately represent the interests of commercial energy consumers, industrial energy consumers, small business energy consumers, residential energy consumers and low-income energy consumers; among these members must be persons with knowledge of and experience in financial matters and consumer advocacy and who possess substantial management expertise or knowledge of or experience with conservation fund programs, carbon reduction programs or energy efficiency or climate change policy. The requirements of this subparagraph may be met through the appointment of one or more persons who satisfy more than one of the requirements, as long as at any one time the 7 members include among them members who adequately represent the identified interests and who possespossess the required knowledge, expertise and experience.
 
Appointed trustees serve 3-year terms. If an appointed trustee is unable to complete the term, the Governor shall appoint a replacement for the remainder of the unexpired term.
 
SUMMARY
This bill changes the name of the Governor's Office of Energy Independence and Security to the Governor's Energy Office. The bill also fixes cross-references to reflect the name change.