June 9, 2010 update: Maine election results, including off-shore wind bond

Maine just held elections. Voters weighed in on gubernatorial candidates (Democrats choosing Libby Mitchell, and Republicans Paul LePage), a citizens' veto of a tax reform law enacted last session, and a series of bond measures, all of which appear to have passed.

One of these bond measures touches directly on energy policy.  Question 2 addressed offshore wind energy as well as energy efficiency and infrastructure across the state's public higher education systems.

Question 2 (Bond Issue):

"Do you favor a $26,500,000 bond issue that will create jobs through investment in an off-shore wind energy demonstration site and related manufacturing to advance Maine’s energy independence from imported foreign oil, that will leverage $24,500,000 in federal and other funds and for energy improvements at campuses of the University of Maine System, Maine Community College System and Maine Maritime Academy in order to make facilities more efficient and less costly to operate?”

The Maine Secretary of State's Citizen's Guide to the Referendum Election (DOC) provides more detail on the allocation. The bond package includes:

• $11 million for "research, development and product innovation associated with developing one or more ocean wind energy demonstration sites", plus "funding for robotics equipment to accelerate wind energy components manufacturing in the State"
•  $9.5 million for energy and infrastructure upgrades at all University of Maine System campuses
• $5 million for energy and infrastructure upgrades at all Maine Community College System campuses
• $1 million for energy and infrastructure upgrades at Maine Maritime Academy

 Of these provisions, perhaps the Maine Marine Wind Energy Demonstration Site Fund is most interesting. The Fund was established by Chapter 414, Part D, Public Laws of 2009, and was amended by Chapter 645, Part C, Public Laws of 2009. The Legislature established the Fund to "provide the basic investment necessary to obtain matching funds and competitive grants and other funding from federal, state and private sources for research, development and product innovation associated with developing one or more ocean wind energy demonstration sites."

The Fund is designed to funnel money into research by the University of Maine. In fact, the definition of "research and development" enacted in Section H-1(2)(B) of the Public Law limits it to "applied engineering and scientific research and related commercial development conducted by the University of Maine", although partnerships are allowed. The Fund is administered by the University itself, on behalf of the trustees. Funds could be used to conduct siting studies for offshore wind sites, and to design, develop prototypes for, and test offshore structures, composites and components that could be manufactured in Maine.

As often seems needed in pitching a bond proposal, this one is designed to leverage matching dollars. The Secretary of State reported that it is anticipated that funds from this portion of the bond proceeds would leverage $24,500,000 in additional funds from other sources.

What does it cost? Total estimated life time cost is $33,058,750 representing $26,500,000 in principal and $6,558,750 in interest (assuming interest at 4.5% over 10 years).

Voters approved Question 2 by a 59/41 margin. 133,763 votes were cast in favor of the bond package, with only 94,016 against.

It will be interesting to see what comes out of the Maine Marine Wind Energy Demonstration Site Fund that we have all agreed to fund!