Approved: 06/21/23
LD 1895 LR 741(02)
FY 2023-24 FY 2024-25
Projections
FY 2025-26
Projections
FY 2026-27
Net Cost (Savings)
General Fund $166,198 $161,572 $289,662 $305,116
Appropriations/Allocations
General Fund $166,198 $161,572 $289,662 $305,116
Other Special Revenue Funds $1,585 $183,164 $191,449 $200,149
Revenue
Other Special Revenue Funds $0 $181,579 $189,864 $198,564
Fiscal Detail and Notes
Fiscal Note
131st MAINE LEGISLATURE
An Act Regarding the Procurement of Energy from Offshore Wind Resources
Fiscal Note for Bill as Amended by Committee Amendment " "
Committee: Energy, Utilities and Technology
Fiscal Note Required: Yes
This bill establishes the Maine Offshore Wind Renewable Energy and Economic Development (OWRE) Program
within the Governor's Energy Office (GEO) to be administered in collaboration with the Public Utilities Commission
(PUC). The Department of Marine Resources (DMR) and the Department of Inland Fisheries and Wildlife (IFW) are
added to the already established Offshore Wind Research Consortium within the GEO.
The GEO will coordinate with the PUC to establish fees that bidders must submit to the PUC with proposals for
floating wind projects. Upon the request of the GEO, these fees may be transferred from the PUC to fund the GEO's
costs of administering the OWRE program. The bill includes ongoing General Fund appropriations to the Department
of Inland Fisheries and Wildlife of $75,402 in fiscal year 2023-24 and $103,763 in fiscal year 2024-25 for one Senior
Resource Biologist position and associated All Other costs. The bill includes Other Special Revenue Funds allocations
to the PUC of $181,579 beginning in fiscal year 2024-25 for one Staff Attorney position and associated All Other
costs. The Department of Marine Resources will require ongoing General Fund appropriations of $120,583 beginning
in fiscal year 2025-26 for one Resource Management Coordinator position and associated All Other costs.
LR0741(02) - Fiscal Note - Page 1 of 2 The bill includes ongoing General Fund appropriations of $55,156 and allocations of $585 to the Department of
Agriculture, Conservation and Forestry(ACF) beginning in fiscal year 2023-24 for one part-time Senior Planner
position and associated costs.
The bill establishes the Fishing Community Protection Tax Incentive program and requires the Department of
Economic and Community Development to adminster program application procedures and certificates of approval.
The bill includes a one-time General Fund appropriation of $35,640 in fiscal year 2023-24 to the Business
Development program within the department to update the salesforce platform to include a new tax incentive program.
Additional costs to the Department of Transportation associated with coordinating and collaborating with the GEO on
the new program can be absorbed within existing budgeted resources.
The bill establishes the Fishing Community Protection and Low-Income Ratepayer Fund within the Office of the
Treasurer with a base Other Special Revenue Funds allocation of $500 beginning in fiscal year 2023-24.
The Fishing Community Protection Tax Incentive program will provide nonrefundable tax credits for qualified
investment in offshore wind power projects. The language in the bill does not provide sufficient clarity to develop
exact estimates of the impact of the program on tax revenues or the costs to the Department of Administrative and
Financial Services, Bureau of Revenue Services to administer the tax credits. Administrative costs to both the income
tax and sales tax divisions of the Bureau of Revenue Services are expected to be substantial. The first revenue
decrease would occur in fiscal year 2026-27, reflecting a portion of tax year 2026 credits, and is anticipated to be in
the range of $5 million to $10 million. There would also be a corresponding decrease in Local Government Fund
revenue of 5% of the decrease in sales and income tax revenue.
LR0741(02) - Fiscal Note - Page 2 of 2