Maine LD 1686: An Act To Amend the Finance Authority of Maine Act

LD 1686 (subjects: FINANCE AUTHORITY , PROGRAMS )

Official bill page at mainelegislature.org: http://www.mainelegislature.org/legis/bills/display_ps.asp?ld=1686&PID=1456&snum=127


Sponsors | Actions | Bill Text | Patterns of Support


Sponsors

Principal Sponsor: Sen. Amy Volk of Cumberland: (R – District 30) — e-mail | Twitter | Facebook

1 Cosponsors:

Actions

Chamber

Action
3/30/2016 Senate Committee on LABOR, COMMERCE, RESEARCH AND ECONOMIC DEVELOPMENT
suggested and ordered printed
On motion by Senator Volk of Cumberland REFERRED to the Committee on LABOR, COMMERCE, RESEARCH AND ECONOMIC DEVELOPMENT
Ordered sent down forthwith for concurrence.
3/30/2016 House Bill REFERRED to the Committee on LABOR, COMMERCE, RESEARCH AND ECONOMIC DEVELOPMENT.
In concurrence. ORDERED SENT FORTHWITH.
4/6/2016 Senate Report READ and ACCEPTED.

READ ONCE.

Committee Amendment “A” (S-463) READ and ADOPTED.

Under suspension of the Rules, READ A SECOND TIME and PASSED TO BE ENGROSSED AS AMENDED BY Committee Amendment “A” (S-463) .

Ordered sent down forthwith for concurrence.
4/7/2016 House CONSENT CALENDAR – FIRST DAY
Under suspension of the rules
CONSENT CALENDAR – SECOND DAY.
The Bill was PASSED TO BE ENGROSSED as Amended by Committee Amendment “A” (S-463).
In concurrence. ORDERED SENT FORTHWITH.
4/7/2016 House PASSED TO BE ENACTED.
Sent for concurrence. ORDERED SENT FORTHWITH.
4/8/2016 Senate PASSED TO BE ENACTED, in concurrence.
4/29/2016 Senate LD 1686 In Senate, April 29, 2016, this Bill, having been returned by the Governor, together with objections to the same pursuant to the provisions of the Constitution of the State of Maine, after reconsideration, the Senate proceeded to vote on the question: “Shall this Bill become a law notwithstanding the objections of the Governor?” 28 In Favor and 7 Against, accordingly it was the vote of the Senate that the Bill become law and the VETO was OVERRIDDEN.
Ordered sent down forthwith for concurrence
4/29/2016 House This Bill, having been returned by the Governor, together with objections to the same pursuant to Article IV, Part Third, Section 2 of the Constitution of the State of Maine, after reconsideration, the House proceeded to vote on the question: “Shall this Bill become a law notwithstanding the objections of the Governor?”
ROLL CALL NO. 677V
122 having voted in the affirmative and 24 in the negative, with 5 being absent, and accordingly it was the vote of the House that the Bill become a law notwithstanding the objections of the Governor, since two-thirds of the members of the House so voted.
Sent to the Engrossing Department.
Ordered Sent Forthwith.

Bill Text

.

An Act To Amend the Finance Authority of Maine Act

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

Sec. 1. 10 MRSA 962, sub- 2, as amended by PL 2011, c. 586, 1, is further amended to read:

2. Revenue obligation securities. Issue revenue obligation securities to finance eligible projects, except that revenue obligation securities may not be issued for energy distribution system projects after or energy generating system projects unless the authority issued a certificate of approval for those eligible projects before January 1, 2018 2020 pursuant to section 1044, subsection 13 subchapter 3;

Sec. 2. 10 MRSA 963-A, sub- 13, B, as amended by PL 1987, c. 141, Pt. B, 7, is further amended to read:

B. For a system which that does generate electricity, an energy generating system which , including wires, cables and other material and equipment necessary and convenient for the delivery of electricity from the electricity generating facility to the transmission and distribution utility system within the State, that uses biomass, peat, solar, waste, water and related dams, wind, wood or coal , and which that is owned, in whole or in part, by an individual, municipality, corporation , limited liability company or other governmental entity or business association which that qualifies as a cogenerator or small power producer under Title 35-A, chapter 33.

Sec. 3. 10 MRSA 1043, sub- 2, O, as amended by PL 2011, c. 655, Pt. MM, 8 and affected by 26, is further amended to read:

O. In the case of an energy distribution system project or an energy generating 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 or the energy generating 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 Energy Office 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 Energy Office, 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;

(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; and

(m) The nature and extent of the applicant’s equity contribution to payment of the costs of the project; such a contribution may not be less than 25% of the expected cost of the project.

This paragraph is repealed January 1, 2018 2020.

Sec. 4. 10 MRSA 1044, sub- 13, as enacted by PL 2011, c. 586, 4, is amended to read:

13. Limitation. The authority may not issue revenue obligation securities for energy distribution system projects or energy generating system projects unless the authority issued a certificate of approval for the energy distribution system project or energy generating system project before January 1, 2018 2020. Notwithstanding this subsection, revenue refunding securities may be issued to refund any outstanding revenue obligation securities.

Sec. 5. 10 MRSA 1053, sub- 6, A, as amended by PL 2011, c. 586, 5, is further amended to read:

A. The sum of $180,000,000 consisting of not more than $150,000,000 for loans and up to $30,000,000 for use of bond proceeds to fund capital reserve funds for revenue obligation securities issued pursuant to this subchapter relating to loans for electric rate stabilization projects , loans for energy generating system projects or loans for energy distribution system projects;

SUMMARY

This bill clarifies the authority for the issuance of revenue obligation securities pertaining to financing assistance for energy generating system projects under the Finance Authority of Maine Act.

The bill prohibits the Finance Authority of Maine from issuing revenue obligation securities for an energy generating system project unless the authority has issued a certificate of approval before January 1, 2020.

Patterns of Support

Pattern of Cosponsorship by Region:

Pattern of Cosponsorship by Gender:

Pattern of Cosponsorship by Party:

Pattern of Cosponsorship by Campaign Finance Classification:

Note: Maine Clean Elections Act (MCEA) Qualified candidates only accept a small dollar value of initial contributions early in their campaigns, pledge not to accept further campaign contributions from private sources, and receive public funding for their campaigns. MCEA Non-Qualified candidates choose not to obtain public funding and instead are free to accept campaign contributions from individuals, party committees, political action committees and business sources.


This information about LD 1686 was last updated on 2016-05-13.
The Open Maine Politics website is in a beta release and results should not be taken as definitive. Please visit the official website of the Maine State Legislature for entirely verifiable information.

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