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Associated Press - 4/29/2006

Energy bill OK'd, awaits funding

AUGUSTA — With gasoline prices hovering near $3 per gallon and energy a front-burner issue in Washington, a bill to encourage conservation and renewable energy is awaiting funding in the Maine Legislature. Gov. John Baldacci's energy policy bill has won final House and Senate approval. It awaited a decision by the Appropriations Committee on whether to provide $20,000 in funding.

"My fingers are crossed," said Beth Nagusky, Baldacci's director of energy independence and security, as the bill calling for biofuel tax cuts and more emphasis on conservation awaited funding.

"I hope that, given the high gas prices and bipartisan support in Maine and nationally to transform to alternative fuels, this will be seen as a high priority," Nagusky said.

Overshadowed in recent weeks by other high-profile issues in the State House, the bill takes on new significance as Mainers see gas prices climbing.

In Washington, Congress is working on legislation to roll back billions of dollars in tax breaks for major oil companies and create rebates in fuel costs for taxpayers.

Baldacci's bill seeks a one-year reduction in Maine's sales and use tax on biofuels such as ethanol and other fuels derived from living and renewable sources. It gives a higher priority to conservation and energy efficiency when the Public Utilities Commission requests bids from companies to supply power for the standard offer for electricity users.

When the PUC seeks bids, Nagusky said, it could consider not only megawatts, but also "negawatts," capacity that is made available through conservation and improved efficiency.

The legislation also sets a goal of increasing by 10 percent the state's renewable power generation by 2017.

The bill would create a Maine Energy Council, which would study whether electricity industry restructuring is working.

Nagusky described Maine as a national leader in developing renewable energy resources.