An Act to Authorize a General Fund Bond Issue to Establish the School Energy Savings Revolving Loan Fund

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132nd MAINE LEGISLATURE
FIRST REGULAR SESSION-2025
Legislative Document No. 826
S.P. 349 In Senate, March 4, 2025
An Act to Authorize a General Fund Bond Issue to Establish the
School Energy Savings Revolving Loan Fund
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator PIERCE of Cumberland.
Cosponsored by Representative MURPHY of Scarborough and
Senator: RAFFERTY of York, Representatives: CLOUTIER of Lewiston, GATTINE of
Westbrook, KUHN of Falmouth, MITCHELL of Cumberland, SARGENT of York.

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1Preamble. Two thirds of both Houses of the Legislature deeming it necessary in
2 accordance with the Constitution of Maine, Article IX, Section 14 to authorize the issuance
3 of bonds on behalf of the State of Maine to provide funds as described in this Act,
4Be it enacted by the People of the State of Maine as follows:
5PART A
6Sec. A-1. Authorization of bonds. The Treasurer of State is authorized, under the
7 direction of the Governor, to issue bonds in the name and on behalf of the State in an
8 amount not exceeding $10,000,000 for the purposes described in section 5 of this Part. The
9 bonds are a pledge of the full faith and credit of the State. The bonds may not run for a
10 period longer than 10 years from the date of the original issue of the bonds.
11Sec. A-2. Records of bonds issued; Treasurer of State. The Treasurer of State
12 shall ensure that an account of each bond is kept showing the number of the bond, the name
13 of the successful bidder to whom sold, the amount received for the bond, the date of sale
14 and the date when payable.
15Sec. A-3. Sale; how negotiated; proceeds appropriated. The Treasurer of
16 State may negotiate the sale of the bonds by direction of the Governor, but no bond may
17 be loaned, pledged or hypothecated on behalf of the State. The proceeds of the sale of the
18 bonds, which must be held by the Treasurer of State and paid by the Treasurer of State
19 upon warrants drawn by the State Controller, are appropriated solely for the purposes set
20 forth in this Part. Any unencumbered balances remaining at the completion of the project
21 in this Part lapse to the Office of the Treasurer of State to be used for the retirement of
22 general obligation bonds.
23Sec. A-4. Interest and debt retirement. The Treasurer of State shall pay interest
24 due or accruing on any bonds issued under this Part and all sums coming due for payment
25 of bonds at maturity.
26Sec. A-5. Disbursement of bond proceeds from General Fund bond issue.
27 The proceeds of the sale of the bonds authorized under this Part must be expended as
28 designated in the following schedule under the direction and supervision of the agencies
29 and entities set forth in this section.
30DEPARTMENT OF EDUCATION
31 Provides funds to capitalize the School Energy Savings Revolving Loan Fund, which
32 will support energy and energy efficiency projects in schools in this State.
Total $10,000,000
33Sec. A-6. Contingent upon ratification of bond issue. Sections 1 to 5 do not
34 become effective unless the people of the State ratify the issuance of the bonds as set forth
35 in this Part.
37Sec. A-7. Appropriation balances at year-end. At the end of each fiscal year,
38 all unencumbered appropriation balances representing state money carry forward. Bond
39 proceeds that have not been expended within 10 years after the date of the sale of the bonds
40 lapse to the Office of the Treasurer of State to be used for the retirement of general
41 obligation bonds.
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1Sec. A-8. Bonds authorized but not issued. Any bonds authorized but not issued
2 within 5 years of ratification of this Part are deauthorized and may not be issued, except
3 that the Legislature may, within 2 years after the expiration of that 5-year period, extend
4 the period for issuing any remaining unissued bonds for an additional amount of time not
5 to exceed 5 years.
6Sec. A-9. Referendum for ratification; submission at election; form of
7question; effective date. This Part must be submitted to the legal voters of the State at
8 a statewide election held in the month of November following passage of this Act. The
9 municipal officers of this State shall notify the inhabitants of their respective cities, towns
10 and plantations to meet, in the manner prescribed by law for holding a statewide election,
11 to vote on the acceptance or rejection of this Part by voting on the following question:
12 "Do you favor a $10,000,000 bond issue to support energy and energy
13 efficiency projects in Maine schools?"
14 The legal voters of each city, town and plantation shall vote by ballot on this question
15 and designate their choice by a cross or check mark placed within a corresponding square
16 below the word "Yes" or "No." The ballots must be received, sorted, counted and declared
17 in open ward, town and plantation meetings and returns made to the Secretary of State in
18 the same manner as votes for members of the Legislature. The Governor shall review the
19 returns. If a majority of the legal votes are cast in favor of this Part, the Governor shall
20 proclaim the result without delay and this Part becomes effective 30 days after the date of
21 the proclamation.
22 The Secretary of State shall prepare and furnish to each city, town and plantation all
23 ballots, returns and copies of this Part necessary to carry out the purposes of this
24 referendum.
25PART B
26Sec. B-1. 20-A MRSA §15908-C is enacted to read:
27§15908-C. School Energy Savings Revolving Loan Fund
281. Fund established. The School Energy Savings Revolving Loan Fund, referred to
29 in this section as "the fund," is established as a nonlapsing, interest-earning revolving fund
30 administered by the department.
312. Sources of fund. Sources of the fund may include:
32 A. Money appropriated or allocated by the State for inclusion in the fund;
33 B. Money that the department receives in repayment of loans from the fund;
34 C. Interest, dividends and pecuniary gains from investment of money in the fund;
35 D. Money from any bond issues approved by the voters of the State for the purposes
36 of the fund; and
37 E. Money otherwise made available to the department for the purposes of the fund.
383. Application of fund. Money in the fund may be loaned at low interest in amounts
39 from $50,000 to $1,000,000 to school administrative units to implement energy and energy
40 efficiency projects in school facilities, including, but not limited to, energy efficiency
41 equipment upgrades; building envelope and insulation improvement projects; and heat
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42 recovery, clean energy generation and heating, cooling and ventilation system upgrades
43 and replacement projects that improve efficiency, air quality and emissions. Equipment
44 and facility upgrades must have a useful life of at least 10 years, and loan payments may
45 be made for up to 20 years. The department shall work to ensure that loan funds are used
46 to support project components eligible for federal tax credits, other state and federal energy
47 programs and funding and rebate programs through the Efficiency Maine Trust. The
48 department may consult with the Governor's Energy Office and the Efficiency Maine Trust
49 in furtherance of these goals.
9Sec. B-2. Contingent effective date. This Part takes effect only if the General
10 Fund bond issue proposed in Part A is approved by the voters of this State.
11SUMMARY
12 This bill provides for a bond issue, in the amount of $10,000,000, to capitalize the
13 School Energy Savings Revolving Loan Fund, which the bill establishes to support energy
14 and energy efficiency projects in Maine schools to be administered by the Department of
15 Education.
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