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An Act To Price Carbon Pollution in Maine
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 35-A MRSA §1508-A, sub-§1, as amended by PL 2011, c. 623, Pt. B, §5, is further amended to read:
 
1. Penalty.   Unless otherwise specified in law, the commission may, in an adjudicatory proceeding, impose an administrative penalty as specified in this section.
 
A. For willful violations of this Title, a commission rule or a commission order by a public utility, voice service provider, dark fiber provider, wholesale competitive local exchange carrier or a, competitive electricity provider or distributor as defined in section 4451, subsection 1, the commission may impose an administrative penalty for each violation in an amount that does not exceed $5,000 or .25% of the annual gross revenue that the public utility, voice service provider, dark fiber provider, wholesale competitive local exchange carrier or the, competitive electricity provider or distributor as defined in section 4451, subsection 1 received from sales in the State, whichever amount is lower. Each day a violation continues constitutes a separate offense. The maximum administrative penalty for any related series of violations may not exceed $500,000 or 5% of the annual gross revenue that the public utility, voice service provider, dark fiber provider, wholesale competitive local exchange carrier or the, competitive electricity provider or distributor as defined in section 4451, subsection 1 received from sales in the State, whichever amount is lower.
 
B. For a violation in which a public utility, voice service provider, dark fiber provider, wholesale competitive local exchange carrier or a, competitive electricity provider or distributor as defined in section 4451, subsection 1 was explicitly notified by the commission that it was not in compliance with the requirements of this Title, a commission rule or a commission order and that failure to comply could result in the imposition of administrative penalties, the commission may impose an administrative penalty that does not exceed $500,000.
 
C. The commission may impose an administrative penalty in an amount that does not exceed $1,000 on any person that is not a public utility, voice service provider, dark fiber provider, wholesale competitive local exchange carrier or a, competitive electricity provider or distributor as defined in section 4451, subsection 1 and that violates this Title, a commission rule or a commission order. Each day a violation continues constitutes a separate offense. The administrative penalty may not exceed $25,000 for any related series of violations.
 
D.  In addition to the administrative penalties authorized by this subsection, the commission may require disgorgement of profits or revenues realized as a result of a violation of this Title, a commission rule or a commission order.
Sec. 2.  35-A MRSA c. 44-A  is enacted to read:
CHAPTER 44-A
CARBON CONTENT ASSESSMENT
§ 4451. Carbon content assessment; Carbon Content Assessment Fund
 
1.  Definitions.     As used in this section, unless the context otherwise indicates, the following terms have the following meanings.
 
A.  "Distributor" means a person that imports or causes to be imported fuel for use, distribution or sale within the State or a person that produces, refines, manufactures or compounds fuel within the State for use, distribution or sale.
 
B.  "Fuel" means each form and grade of butane, coal, clear diesel fuel, gasoline, fuel oil, kerosene, natural gas and propane, but does not include dyed diesel fuel or jet fuel.
 
C.  "Fund" means the Carbon Content Assessment Fund established in subsection 4.
 
2.  Carbon content assessment.     On a monthly basis the commission shall, in accordance with this section, collect from a distributor an assessment on the carbon content of fuel on each unit of fuel sold by that distributor in the State and transfer any assessment it collects under this section to the fund.
 
A.  The assessment is $5 per metric ton of carbon content during fiscal year 2020-21 and increases by $5 per metric ton each fiscal year from fiscal year 2021-22 to fiscal year 2027-28, remaining at $40 per metric ton each fiscal year thereafter.
 
B.  For each fuel, the commission shall convert the amount per metric ton to a rate per unit of fuel using the most recent applicable carbon dioxide emissions coefficient published by the United States Energy Information Administration. On or before June 15th of each year, the commission shall publish the rate per unit of fuel that will be in effect during the following fiscal year for each fuel.
 
The assessment does not apply to the sale of electricity.
 
3.  Collection of the assessment by a distributor.     A distributor shall collect the assessment required under this section on completion of each sale or delivery of fuel to which the assessment applies. The distributor shall identify the assessment collected as a separate invoice entry on each sale or delivery of fuel. On or before the 15th day of each month, the distributor shall submit to the commission the following:
 
A.  A statement containing its name and place of business;
 
B.  The quantity and type of fuel subject to the assessment sold in the preceding calendar month;
 
C.  The assessment due for the fuel sold in the preceding calendar month; and
 
D.  Any other information required by the commission.
 
4.  Carbon Content Assessment Fund.     The Carbon Content Assessment Fund is established. The fund is a nonlapsing fund and is administered by the commission in accordance with this section. Any interest earned on funds in the fund must be credited to the fund, and funds not spent in any fiscal year remain in the fund to be used in accordance with this section. The commission shall deposit any assessment it collects in accordance with this section into the fund.
 
A.  At the end of each fiscal year, the commission shall disburse from the fund the assessments collected in that fiscal year to transmission and distribution utilities in the State.
 
B.  The commission shall require the funds disbursed to transmission and distribution utilities in the State pursuant to paragraph A to be used to reduce the rates of those utilities' customers in a manner that is equitable and that provides maximum benefit to the economy of the State.
 
The commission may use funds in the fund to cover administrative costs associated with implementing this section.
 
5.  Administration.     The commission may review the books and records of a distributor to ensure that reported fuel sales are accurate. The commission may impose on a distributor that fails to accurately report its sales or submit the required assessment in accordance with this section an administrative penalty in accordance with section 1508-A.
 
6.  Rules.     The commission shall adopt rules to implement this section. Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.
 
SUMMARY
This bill requires an assessment on the carbon content of fuels sold by a distributor in the State. The bill defines "distributor" and requires a distributor to submit on a monthly basis the required assessment to the Public Utilities Commission. The commission is required to transfer any assessment it receives to the Carbon Content Assessment Fund, which the bill establishes. The bill requires the commission at the end of each fiscal year to transfer funds from the fund to transmission and distribution utilities in the State. The funds are to be used to reduce the rates of those utilities' customers in a manner that is equitable and that provides maximum benefit to the economy of the State. The bill gives the commission the authority to review the books and records of a distributor and to impose an administrative penalty if necessary. It requires the commission to adopt routine technical rules.