Printed on recycled paper 131st MAINE LEGISLATURE FIRST SPECIAL SESSION-2023 Legislative Document No. 1881H.P. 1206 House of Representatives, May 3, 2023 An Act Regarding Compensation Fees and Related Conservation Efforts to Protect Soils and Wildlife and Fisheries Habitat from Solar and Wind Energy Development and High-impact Electric Transmission Lines Under the Site Location of Development Laws Reference to the Committee on Agriculture, Conservation and Forestry suggested and ordered printed. ROBERT B. HUNT Clerk Presented by Representative LANDRY of Farmington. Cosponsored by Senator BLACK of Franklin and Representatives: GRAMLICH of Old Orchard Beach, MEYER of Eliot, ROBERTS of South Berwick, SOBOLESKI of Phillips, STOVER of Boothbay, WOOD of Greene, Senator: BRENNER of Cumberland. Page 1 - 131LR0077(01) 1 2 is enacted to read: 3 4 5 6 7 8 obtain a permit under Title 38, chapter 3, subchapter 1, article 6 shall pay a compensation 9 fee for any portion of the development, including associated facilities, that is located on 10 prime agricultural soils or soils of statewide importance under subsection 2. 11 12 consultation with the Governor's Energy Office, shall establish the definitions of and 13 process for identifying, verifying and assessing adverse impacts upon prime agricultural 14 soils and soils of statewide importance, which may include soils located on land classified 15 as prime farmland, land of statewide or local importance or unique farmland by the United 16 States Department of Agriculture, Natural Resources Conservation Service. 17 18 application a compensation fee payment plan based upon the compensation fee calculated 19 by the department using the square footage of the developed area located on prime 20 agricultural soils or soils of statewide importance under subsection 2 and applying a per 21 square foot compensation fee set by the department. The fee must be based upon the fair 22 market value of land consisting of prime agricultural soils or soils of statewide importance 23 under subsection 2 and include reasonable costs for the closing and stewardship of a 24 compensation project completed in whole or in part with the compensation fee. Square 25 footage of the developed area that is already subject to the compensation fee under Title 26 38, section 484-C may not be included in calculating the compensation fee under this 27 subsection. The compensation fee may be reduced by the department if the permit applicant 28 proposes mitigation strategies, including, but not limited to, dual-use solar and agricultural 29 production or locating the development on land that is otherwise unsuitable for agricultural 30 production. For the purposes of this subsection, "developed area" means the total area of 31 land occupied by the solar energy development, including associated facilities. 32 33 to commencing construction of the development and remitted to a compensation fund 34 established or identified by the Department of Environmental Protection under Title 38, 35 section 484-C, subsection 3. 36 37 may choose to conserve, through a conservation easement or fee purchase on behalf of an 38 eligible organization described in this subsection, an equivalent amount of square footage 39 of prime agricultural soils or soils of statewide importance as the amount calculated in 40 subsection 2 instead of paying a compensation fee. A conservation option under this 41 subsection must be subject to a perpetual agricultural conservation easement or fee Page 2 - 131LR0077(01) 42 ownership by a public, quasi-public or municipal organization or a private, nonprofit 43 organization that ensures the land remains available for agricultural production. A permit 44 applicant who chooses a conservation option under this subsection shall submit with the 45 permit application a plan to execute the option and shall complete the fee purchase or 46 conservation easement prior to issuance of a permit under Title 38, chapter 3, subchapter 47 1, article 6. 7 A compensation project funded in whole or in part 8 by a compensation fee or land designated for a conservation option under this section must 9 be located in the same region as the solar energy development and must consist of soils 10 comparable to the soils adversely impacted by the development unless otherwise approved 11 by the department. 12 13 or exercise of a conservation option under this section does not relieve the permit applicant 14 from the requirement to complete a compensation project or pay a compensation fee under 15 Title 38, section 480-Z or Title 38, section 484-C. 16 17 Rules adopted pursuant to this subsection are routine technical rules under Title 5, chapter 18 375, subchapter 2-A. 19 is enacted to read: 20 21 22 program to fund a compensation project as an alternative means of satisfying requirements 23 related to off-site habitat improvement or preservation that the department determines 24 necessary to mitigate the adverse effects of a renewable energy development on wildlife 25 and fisheries habitats, as defined by the department, to comply with section 484, subsection 26 3. The program is limited to solar energy development and associated facilities, wind 27 energy developments as defined in Title 35-A, section 3451, subsection 11 and associated 28 facilities and high-impact electric transmission lines as defined in Title 35-A, section 3131, 29 subsection 4-A. A compensation project funded in whole or in part from compensation fees 30 under this section must be approved by the department. 31 32 determining compensation fee amounts based upon the fair market value of land consisting 33 of habitat comparable to the habitat affected by the development under this section and 34 including reasonable costs for the closing and stewardship of a compensation project 35 completed in whole or in part with the compensation fee. A portion of the fee may be used 36 to cover the cost of administering a compensation fund in subsection 3. The fee may not 37 include compensation for an area as defined by section 480-Z, subsection 7. 38 39 funds to receive compensation fees under this section and Title 7, section 361 for 40 restoration, enhancement or preservation activities under paragraph A or to provide 41 compensation fees to an organization authorized by the department under paragraph B. The 42 department may require compensation fees to be remitted to another fund or funds created 43 by the Legislature that can carry out the purposes of this section. 1 2 3 4 5 6 Page 3 - 131LR0077(01) 1 A. The department may establish a compensation fund for the purpose of receiving 2 compensation fees, grants and other related income to carry out a compensation project 3 dedicated to payment of costs and related expenses of restoration, enhancement or 4 preservation activities of the project. The department may make payments from the 5 fund consistent with the purpose of the fund. Income received under this paragraph 6 must be deposited with the Treasurer of State to the credit of the compensation fund 7 and may be invested as provided by law. Interest on investments under this paragraph 8 must be credited to the compensation fund. 9 B. The department may enter into an enforceable, written agreement with a public, 10 quasi-public or municipal organization or a private, nonprofit organization with 11 expertise in the conservation of natural or working lands. The organization must 12 demonstrate the ability to receive compensation fees, administer a compensation fund 13 and ensure that compensation projects are implemented consistent with local, regional 14 or state management priorities. If compensation fees are provided to an authorized 15 organization, the organization shall maintain records of expenditures and provide an 16 annual summary report as requested by the department. If the organization is a state 17 agency other than the department, the agency shall establish a fund meeting the 18 requirements specified in paragraph A. If the organization does not perform in 19 accordance with this paragraph or with the requirements of the written agreement with 20 the department, the department may revoke the organization's authority to conduct 21 activities in accordance with this paragraph. 22 23 fee under this section must be located in the same biophysical region as the development 24 or transmission line under subsection 1 unless otherwise approved by the department and 25 must consist of habitat comparable to the habitat affected by the development or 26 transmission line. The department shall base approval of a compensation project on the 27 management priorities for the biophysical region in which the project is located. For 28 purposes of this subsection, "biophysical region" has the same meaning as in section 480-Z. 29 The payment of a compensation fee under this 30 section does not relieve the renewable energy development of the requirement to comply 31 with any other provision of this article, including but not limited to the requirement to avoid 32 and minimize adverse impacts on natural resources to the greatest extent practicable. 33 34 Rules adopted pursuant to this subsection are routine technical rules under Title 5, chapter 35 375, subchapter 2-A. 36 37 38 the Department of Agriculture, Conservation and Forestry, in consultation with the 39 Department of Environmental Protection, the Department of Inland Fisheries and Wildlife 40 and the Governor's Energy Office, shall initiate rulemaking to establish a compensation fee 41 program to accept and administer compensation fees under the Maine Revised Statutes, 42 Title 7, section 361 and to define "prime agricultural soils" and "soils of statewide 43 importance" under Title 7, section 361, subsection 2 and the Department of Environmental 44 Protection, in consultation with the Department of Agriculture, Conservation and Forestry, 45 the Department of Inland Fisheries and Wildlife and the Governor's Energy Office, shall Page 4 - 131LR0077(01) 46 initiate rulemaking to establish a compensation fee program to accept and administer 47 compensation fees under Title 38, section 484-C and to define "wildlife and fisheries 48 habitats" under Title 38, section 484-C, subsection 1, which must include but not be limited 49 to large undeveloped habitat blocks, important wildlife corridors and other habitat types 50 identified in consultation with the Department of Inland Fisheries and Wildlife. The rules 51 must establish variable compensation amounts based on the value of the habitats and 52 agricultural soils affected and the degree of adverse effect caused by the development and 53 must establish mitigation strategies that may reduce or otherwise alter any compensation 54 fee, including but not limited to the use of wildlife-friendly fencing and dual-use solar 55 energy and agricultural production. Notwithstanding Title 5, chapter 375, the Department 56 of Agriculture, Conservation and Forestry and the Department of Environmental Protection 57 may allow for the payment of a compensation fee prior to the adoption of final rules using 58 interim criteria established in consultation with the Department of Inland Fisheries and 59 Wildlife and the Governor's Energy Office. 15 16 This bill requires developers of solar energy projects to pay a compensation fee or pay 17 for conservation efforts to mitigate adverse effects on prime agricultural soils or soils of 18 statewide importance and developers of solar energy developments, wind energy 19 developments or high-impact electric transmission lines to pay a compensation fee to fund 20 off-site habitat improvement or preservation projects to mitigate the adverse effects of a 21 development on wildlife and fisheries habitats. The Department of Environmental 22 Protection is directed to establish one or more compensation funds to carry out the projects 23 or to authorize a public, quasi-public or municipal organization or a private, nonprofit 24 organization to administer the funds. A solar energy developer may offset the 25 compensation fee for the protection of prime agricultural soils or soils of statewide 26 importance for land for which the developer paid a compensation fee to mitigate the adverse 27 effects of a development on wildlife and fisheries habitats and may also opt in lieu of the 28 compensation fee to conserve a comparable area of land through a conservation easement 29 or a purchase for fee ownership by a public, quasi-public or municipal organization or a 30 private, nonprofit organization that ensures the land remains available for agricultural 31 production. This bill also directs the Department of Agriculture, Conservation and Forestry 32 to adopt rules and define "prime agricultural soils" and "soils of statewide importance" and 33 the Department of Environmental Protection to adopt rules and define "wildlife and 34 fisheries habitats" subject to compensation fees or other conservation efforts. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34