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An Act To Promote Cogeneration of Energy at Maine Sawmills
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 35-A MRSA §2305-B, sub-§2, as enacted by PL 2001, c. 110, §2, is amended to read:
 
2. Persons other than transmission and distribution utilities. A Except as provided under section 4406, a person other than a transmission and distribution utility may not construct or maintain electric lines, including poles or other related structures, in, upon, along, over, across or under a road, street or other public way unless:
 
A. The person satisfies the requirements of section 2503;
 
B. The person or the person's contractor hired to construct the line provides to the applicable licensing authority a performance bond:
 
(1) In the amount of the value of the line, including poles or other related structures, to be located in the public way; and
 
(2) That is enforceable for one year from the date the line is energized;
 
C. Prior to constructing the line, the person notifies the transmission and distribution utility in whose service territory the line is proposed to be built of the proposed location of the line; and
 
D. If a public utility objects to the line on the basis that it may constitute a duplication of existing transmission or distribution facilities or may interfere with the adequate and safe delivery of electricity to others, the commission issues a finding that the line is not a duplication of existing transmission or distribution facilities and does not interfere with the adequate and safe delivery of electricity to others. A finding is not required under this paragraph unless a public utility has objected in writing to the applicable licensing authority.
Sec. 2.  35-A MRSA c. 44-A  is enacted to read:
CHAPTER 44-A
PINE TREE ENERGY ZONES
§ 4405. Definitions
As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.
 
1.  Cogeneration.   "Cogeneration" means a process in which a facility uses its waste energy to generate electricity or other useful forms of energy.
 
2.  Manufacturing.   "Manufacturing" means the production of tangible personal property intended to be sold or leased ultimately for final use or consumption or the production of tangible personal property pursuant to a contract with the Federal Government or any agency thereof.
 
3.  Manufacturing cluster.   "Manufacturing cluster" means at least 2 but not more than 10 manufacturing facilities, including at least one sawmill, located within a 20-mile radius.
 
4.  Pine Tree Energy Zone.   "Pine Tree Energy Zone" means a geographic area designated by the commission as a Pine Tree Energy Zone in accordance with section 4406 for the purposes of encouraging cogeneration by sawmills.
§ 4406. Pine Tree Energy Zones
 
1.  Petition.   A manufacturing cluster may petition the commission to be designated as a Pine Tree Energy Zone.
 
2.  Requirements for designation.   The commission shall establish the minimum requirements for the designation of a Pine Tree Energy Zone. The geographic radius of a Pine Tree Energy Zone may not exceed 20 miles.
 
3.  Private transmission lines.   The requirements of section 2305-B, subsection 2 do not apply to a person other than a transmission and distribution utility who constructs a private transmission line or lines over a public way for the purpose of transmitting electricity generated by a cogeneration facility that is operated by a sawmill located within a Pine Tree Energy Zone.
The commission shall adopt rules for the implementation of this chapter. Rules adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.
Sec. 3. Net energy billing; rules. The Public Utilities Commission shall amend its rules governing net energy billing to allow a sawmill located within a Pine Tree Energy Zone pursuant to the Maine Revised Statutes, Title 35-A, section 4406, to elect net energy billing for a cogeneration facility with an installed capacity of 10 megawatts or less.
 
SUMMARY
This bill allows a group of manufacturing facilities, including at least one sawmill, to petition the Public Utilities Commission to designate the area surrounding the facilities as a Pine Tree Energy Zone. Within a designated Pine Tree Energy Zone, the bill provides an exemption from the statutory requirements for the construction of transmission lines in the public way for a person who constructs a private transmission line to transmit electricity generated by a cogeneration facility located at a sawmill in the zone. The bill also directs the Public Utilities Commission to amend its rules governing net energy billing to allow sawmills located in Pine Tree Energy Zones to elect net energy billing for a cogeneration facility with an installed capacity of up to 10 megawatts.