APPROVED CHAPTER
JULY 26, 2023 448
BY GOVERNOR PUBLIC LAW
STATE OF MAINE
_____
IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-THREE
_____
H.P. 1206 - L.D. 1881
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
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 38 MRSA §484-C is enacted to read:
§484-C. Solar energy compensation fee for impact to high-value agricultural land
1. Compensation fee. The department shall establish a solar energy compensation
program in accordance with this section. The program must require a person who obtains
approval under this article to construct or cause to be constructed a solar energy
development located on high-value agricultural land as defined in section 3201, subsection
1 to pay a compensation fee or other form of compensation in accordance with this section
for any portion of the development, including associated facilities, that is located on high-
value agricultural land, referred to in this section as "the impacted area."
2. Calculating fee. The compensation fee under this section must be calculated by the
department, in consultation with the Department of Agriculture, Conservation and Forestry,
using the square footage of the impacted area and applying a per square foot compensation
fee set by the department. The fee must be based upon the fair market value of the impacted
area and include reasonable costs, including stewardship costs, for a compensation project,
as defined by the department by rule, that is completed in whole or in part with the
compensation fee. Square footage of the impacted area that is already subject to the
compensation fee under section 484-D may not be included in calculating the compensation
fee under this subsection. The compensation fee may be reduced by the department, in
consultation with the Department of Agriculture, Conservation and Forestry, if the
applicant proposes mitigation strategies, including, but not limited to, dual-use agricultural
and solar production. The fee may be increased by the department, in consultation with the
Department of Agriculture, Conservation and Forestry, based on the severity of the adverse
impacts on the impacted area. For purposes of this subsection, "dual-use agricultural and
solar production" means the productive use of land for agricultural production and solar
energy production in accordance with standards established by rule adopted by the
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Department of Agriculture, Conservation and Forestry, in consultation with the department
and the Governor's Energy Office.
3. Collection of fees. All compensation fees collected under this section must be
deposited in an account in the Department of Agriculture, Conservation and Forestry and
must be distributed at the discretion of the commissioner for the purpose of farmland
conservation and solar mitigation projects. Notwithstanding any provision of law to the
contrary, eligible investment earnings credited to this account become part of the assets of
the account and any balance remaining in the account at the end of a fiscal year must be
carried forward for the next fiscal year.
4. Conservation option. The department shall allow an applicant to meet the
requirements of this section by conserving other land in accordance with this subsection.
The amount of land conserved must be equal in square footage to the impacted area. The
conserved land must be subject to a perpetual conservation easement or fee ownership by
a public, quasi-public or municipal organization or a private, nonprofit organization that
ensures the land remains available for agricultural production. An applicant who wishes
to meet the requirements of this section in accordance with this subsection shall submit
with the application a plan to execute the option and shall complete the fee purchase or
conservation easement prior to the start of construction.
5. Location and type of projects. A compensation project funded in whole or in part
by a compensation fee or land designated for a conservation option under this section must
be located in the same region as the solar energy development and must consist of soils
comparable to those in the impacted area unless otherwise approved by the department.
6. Responsibility for additional compensation. The requirements of this section are
in addition to the requirements of section 480-Z and section 484-D.
7. Rulemaking. The department shall adopt rules to implement this section. Rules
adopted pursuant to this subsection are major substantive rules as defined in Title 5, chapter
375, subchapter 2‑A.
Sec. 2. 38 MRSA §484-D is enacted to read:
§484-D. Compensation fee program for renewable energy development
1. Compensation fee program. The department shall establish a compensation fee
program to fund a compensation project as an alternative means of satisfying requirements
related to off-site habitat improvement or preservation that the department determines
necessary to mitigate the adverse effects of a renewable energy development on wildlife
and fisheries habitats, as defined by the department, to comply with section 484, subsection
3. For purposes of this section, "renewable energy development" means a development
subject to the requirements of this article that is:
A. A solar energy development and associated facilities;
B. A wind energy development as defined in Title 35-A, section 3451, subsection 11
and associated facilities; or
C. A high-impact electric transmission line as defined in Title 35-A, section 3131,
subsection 4-A.
A compensation project funded in whole or in part from compensation fees under this
section must be approved by the department.
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 2. Calculating compensation fee. The department shall establish criteria for
determining compensation fee amounts based upon the fair market value of land consisting
of habitat comparable to the habitat affected by the development under this section and
including reasonable costs, including stewardship costs, of a compensation project
completed in whole or in part with the compensation fee. A portion of the fee may be used
to cover the cost of administering a compensation fund in subsection 3. The fee may not
include compensation for an area as defined by section 480-Z, subsection 7.
3. Compensation fund. The department shall establish one or more compensation
funds to receive compensation fees under this section for restoration, enhancement or
preservation activities under paragraph A or to provide compensation fees to an
organization authorized by the department under paragraph B. The department may require
compensation fees to be remitted to another fund or funds created by the Legislature that
can carry out the purposes of this section. Funds may be used by an agency required to
assist with implementation of the requirements of this section to hire contract staff.
A. The department may establish a nonlapsing compensation fund for the purpose of
receiving compensation fees, grants and other related income to carry out a
compensation project dedicated to payment of costs and related expenses of restoration,
enhancement or preservation activities of the project. The department may make
payments from the fund consistent with the purpose of the fund. Income received under
this paragraph must be deposited with the Treasurer of State to the credit of the
compensation fund and may be invested as provided by law. Interest on investments
under this paragraph must be credited to the compensation fund.
B. The department may enter into an enforceable, written agreement with a public,
quasi-public or municipal organization or a private, nonprofit organization with
expertise in the conservation of natural or working lands. The organization must
demonstrate the ability to receive compensation fees, administer a compensation fund
and ensure that compensation projects are implemented consistent with local, regional
or state management priorities. If compensation fees are provided to an authorized
organization, the organization shall maintain records of expenditures and provide an
annual summary report as requested by the department. If the organization is a state
agency other than the department, the agency shall establish a fund meeting the
requirements specified in paragraph A. If the organization does not perform in
accordance with this paragraph or with the requirements of the written agreement with
the department, the department may revoke the organization's authority to conduct
activities in accordance with this paragraph.
4. Location and type of projects. A compensation project funded by a compensation
fee under this section must be located in the same biophysical region as the renewable
energy development unless otherwise approved by the department and must consist of
habitat comparable to the habitat affected by the renewable energy development. The
department shall base approval of a compensation project on the management priorities for
the biophysical region in which the project is located. For purposes of this subsection,
"biophysical region" has the same meaning as in section 480-Z.
5. Relationship to other provisions. The payment of a compensation fee under this
section does not relieve the renewable energy development of the requirement to comply
with any other provision of this article, including but not limited to the requirement to avoid
and minimize adverse impacts on natural resources to the greatest extent practicable.
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 6. Rules. The department shall adopt rules to carry out the purposes of this section.
Rules adopted pursuant to this subsection are major substantive rules under Title 5, chapter
375, subchapter 2-A.
Sec. 3. 38 MRSA c. 35 is enacted to read:
CHAPTER 35
PROTECTION OF AGRICULTURAL SOILS FROM SOLAR ENERGY
DEVELOPMENTS
§3201. Definitions
As used in this chapter, unless the context otherwise indicates, the following terms
have the following meanings.
1. High-value agricultural land. "High-value agricultural land" means land that has
a high value for agricultural use, as determined in accordance with rules adopted by the
Department of Agriculture, Conservation and Forestry, in consultation with the department
and the Governor's Energy Office.
2. Solar energy development. "Solar energy development" means a development that:
A. Uses ground-mounted solar arrays and installations to convert solar energy to
electrical energy;
B. Occupies 5 acres or more; and
C. Is wholly or partially located on high-value agricultural land.
§3202. Permitting of solar energy development
Except as otherwise provided in this section, a person may not construct, cause to be
constructed or operate a solar energy development without a permit from the Department
of Agriculture, Conservation and Forestry. Notwithstanding any provision of law to the
contrary, the Department of Agriculture, Conservation and Forestry has permitting
authority over solar energy development. The Department of Agriculture, Conservation
and Forestry shall adopt rules to implement this section, which must include, but are not
limited to:
1. Administration. Administrative procedures relating to the permitting process,
including required fees;
2. Permit; standards. Standards for the approval of a permit;
3. Delegation. Standards and conditions for delegation of the authority to issue
permits for solar energy development to a municipality or the Maine Land Use Planning
Commission; and
4. Enforcement. Procedures for the enforcement of this section.
Notwithstanding Title 5, section 8071, subsection 3, rules adopted pursuant to this
section are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.
Sec. 4. Department of Agriculture, Conservation and Forestry and
Department of Environmental Protection to adopt rules. By December 31, 2023,
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the Department of Agriculture, Conservation and Forestry, in consultation with the
Department of Environmental Protection and the Governor's Energy Office, shall initiate
rulemaking to define "high-value agricultural land" under the Maine Revised Statutes, Title
38, chapter 35, establish tiers of high-value agricultural land with variable compensation
amounts for each tier and define "dual-use agricultural and solar production," and the
Department of Environmental Protection, in consultation with the Department of
Agriculture, Conservation and Forestry, the Department of Inland Fisheries and Wildlife
and the Governor's Energy Office, shall initiate rulemaking to establish a compensation fee
program to accept and administer compensation fees under Title 38, sections 484-C and
484-D and to define "wildlife and fisheries habitats" under Title 38, section 484-D,
subsection 1, which must include but not be limited to large undeveloped habitat blocks,
important wildlife corridors and other habitat types identified in consultation with the
Department of Inland Fisheries and Wildlife. The rules must establish variable
compensation amounts based on the value of the habitats and high-value agricultural land
affected and the degree of adverse effect caused by the development and must establish
mitigation strategies that may reduce or otherwise alter any compensation fee, including
but not limited to the use of wildlife-friendly fencing and dual-use agricultural and solar
production. Notwithstanding Title 5, chapter 375, the Department of Environmental
Protection may allow for the payment of a compensation fee prior to the adoption of final
rules using interim criteria established in consultation with the Department of Agriculture,
Conservation and Forestry, the Department of Inland Fisheries and Wildlife and the
Governor's Energy Office.
Sec. 5. Application. That section of this Act that enacts the Maine Revised Statutes,
Title 38, chapter 35 applies to solar energy developments on which construction begins
after September 1, 2024.
Sec. 6. Appropriations and allocations. The following appropriations and
allocations are made.
AGRICULTURE, CONSERVATION AND FORESTRY, DEPARTMENT OF
Bureau of Agriculture 0393
Initiative: Provides funding for contracted legal services.
GENERAL FUND 2023-24 2024-25
All Other $5,000 $5,000
__________ __________
GENERAL FUND TOTAL $5,000 $5,000
Bureau of Agriculture 0393
Initiative: Establishes one limited-period Environmental Licensing Supervisor position and
provides funding for related All Other costs. This position ends June 7, 2025.
GENERAL FUND 2023-24 2024-25
Personal Services $84,930 $119,745
All Other $9,500 $9,500
__________ __________
GENERAL FUND TOTAL $94,430 $129,245
DACF Administration 0401
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Initiative: Provides allocations for expenditures related to centralized technology
management costs for one limited-period Environmental Licensing Supervisor position.
OTHER SPECIAL REVENUE FUNDS 2023-24 2024-25
All Other $585 $585
__________ __________
OTHER SPECIAL REVENUE FUNDS TOTAL $585 $585
DACF Administration 0401
Initiative: Provides funding for centralized technology management costs related to one
limited-period Environmental Licensing Supervisor position.
GENERAL FUND 2023-24 2024-25
All Other $3,292 $3,292
__________ __________
GENERAL FUND TOTAL $3,292 $3,292
AGRICULTURE, CONSERVATION AND
FORESTRY, DEPARTMENT OF
DEPARTMENT TOTALS 2023-24 2024-25
GENERAL FUND $102,722 $137,537
OTHER SPECIAL REVENUE FUNDS $585 $585
__________ __________
DEPARTMENT TOTAL - ALL FUNDS $103,307 $138,122
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