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Maine Legislators Pave the Way for Renewable Energy Projects

July 01, 2009

Gov. John Baldacci signed two major bills this session supporting renewable energy R&D and creating a path for building private sector jobs in clean energy businesses. Lawmakers also passed a $150 million bond package, which includes funding for ocean and wind energy demonstration projects and support for Maine technology entrepreneurs. Voters will have the final say on the bond package in three separate ballot measures presented over the next two years.

Positioning the state to successfully compete for research dollars and attract private energy development companies to the state, Gov. Baldacci signed LD 1465, An Act to Facilitate Testing and Demonstration of Renewable Ocean Energy. The legislation establishes the Maine Offshore Wind Energy Research Center for wind energy demonstration projects conducted by wind energy technology researchers at the University of Maine, according to the governor's press office. Up to five commercially viable sites will be selected by the Ocean Energy Task Force by Dec. 15.

The other bill signed by the governor establishes the Efficiency Maine Trust and Board, bringing together under one roof Maine's energy rebate, efficiency and conservation programs and setting goals to reduce energy consumption and support renewable energy measures. Funding will come from existing sources including the conservation fund, a solar rebate program, and proceeds from carbon dioxide emission allowances sold through the Regional Greenhouse Gas Initiative. In addition to setting goals for reduced energy consumption, the bill directs the Department of Labor to develop a plan for building private sector jobs in clean energy businesses.

The $150 million bond package approved by lawmakers was roughly half the amount of the governor's proposed package. Voters will consider the appropriations in three parts starting with a November vote on a $71 million bond for transportation system projects. The June 2010 vote encompasses a $25 million economic development bond and $18 million energy bond that includes the following:

  • $6 million for R&D and product innovation associated with developing one or more ocean wind energy demonstration sites;
  • $5 million to provide funds to small businesses through the Small Enterprise Growth Fund; and,
  • $3 million to be matched with private funds for R&D and commercialization activities administered by the Maine Technology Institute for environmental and renewable energy technology, biotechnology, aquaculture and marine technology, composite materials technology, advanced technologies for forestry and agriculture, information technology and precision manufacturing technology.

The final part of the bond package, which will be placed on the November 2010 ballot, includes funding for the Land for Maine's Future Board and waterfront projects.

Gov. Baldacci signed the 2009-11 biennial budget in May, authorizing $5.8 billion in state spending over the next two years, a $500 million reduction from the previous biennium. Legislatively directed to support R&D activities for the state, the Office of Innovation within the Department of Economic and Community Development (DECD) will receive $7.4 million each fiscal year, which includes a reduction of $755,567 in FY10 and $755,011 in FY11 for the Maine Technology Institute.

Level funding of $14.7 million each fiscal year is included for the Maine Economic Improvement Fund established by the legislature in 1997 to increase federal and private investment in university-based research focusing on seven key sectors of the economy. The Centers for Innovation will receive $244,858 over the biennium, a slight reduction from the previous two years. Funding for the centers provide grant support for innovative R&D projects by Maine growers and researchers and business incubator development.

The 2009-11 enacted budget is available at: http://www.mainelegislature.org/legis/bills/bills_124th/chappdfs/PUBLIC213.pdf.

Maineenergy