AUGUSTA, Maine — Democratic and Republican leaders in the Legislature are embracing a far-reaching plan by businessman Peter Vigue that aims to inject billions of dollars into the state’s economy and transform Maine’s energy sector.
Mainers got a sneak peek at the proposal Tuesday night when Gov. John Baldacci included several aspects of it in his State of the State address. But legislation under development contains most of the specifics of a plan Vigue — the well-known Cianbro Corp. executive — and others tout as a blueprint to greater energy independence and economic revival.
“I think it can be done,” said the bill’s lead sponsor, Senate President Elizabeth “Libby” Mitchell, D-Vassalboro. “I’m very optimistic about that.”
The cornerstone of the plan involves leasing to Bangor Hydro-Electric Co. nearly 200 miles of state-owned land along Interstate 95 for a high-capacity electricity transmission line.
Lease revenues paid to the state — potentially tens of millions of dollars annually — could help leverage bonds for zero-interest loans to owners of homes and businesses. Those loans would then be used to pay for weatherization projects and to convert buildings to more “homegrown” or locally produced energy sources.
Vigue proposes the large-scale conversion of homes from oil heat to electric heat using the latest in heat-pump technology and geothermal systems. But first, the state would have to negotiate a cheap supply of energy, likely from Hydro-Quebec.
“What we’re trying to do is motivate people to get off the oil, clean the air and put people to work,” Vigue said in a recent interview.
But the master plan goes much further.
The proposal calls for using bonds leveraged from the I-95 corridor lease to funnel hundreds of millions of dollars into development of offshore wind energy, business development, health care and agriculture.
Additionally, the plan calls for completing the long-awaited expansion of I-95 into far northern Maine. But Vigue, who is often mentioned as a potential gubernatorial candidate, is also seeking state support for a privately funded east-west highway he has been advocating in recent years.
Lawmakers said some of Vigue’s goals are more realistic than others and will have to pass through the scrutiny of the legislative process.
“Will it come out the other end as he proposed it? Absolutely not, and it probably shouldn’t,” Mitchell said Friday. But Mitchell and others said many aspects of Vigue’s original plan seem viable and worthy of additional exploration.
“It’s fantastic,” remarked Rep. John Martin, an Eagle Lake Democrat and former longtime Speaker of the House. “I don’t know why nobody ever thought of it before.”
Baldacci’s State of the State address on Tuesday featured brief references to various components of Vigue’s plan although not to Vigue himself.
Most notably, Baldacci announced that the state has signed a memorandum of understanding with Bangor Hydro to explore the possibility of burying a direct-current, or DC, transmission line in the state-owned right of way along I-95.
By using the existing interstate corridor, Bangor Hydro could avoid the costs — both financial and public relations-wise — of having to negotiate or acquire a right of way through hundreds or thousands of properties between South Orrington to the New Hampshire border.
In his speech before a joint session of the Legislature, the governor also announced an ambitious goal of weatherizing all Maine homes and half of the state’s businesses within 20 years.
But in a departure from Vigue’s proposal, Baldacci would initially pay for the energy-efficiency projects through up to $100 million in loans from banks and credit unions. The state would, in turn, act as a guarantor on those loans using bond revenue capacity available through the Maine State Housing Authority.
Money from the lease agreement with Bangor Hydro or other lessees could then be added to the pot for energy projects once the revenues become available.
“We think the revenue from Bangor Hydro would be wonderful resources for the state for weatherization, for energy and for other projects,” said David Farmer, Baldacci’s spokesman. “But you can’t spend that money until you have a project in the ground.”
The governor’s proposal also calls for consolidating Maine’s current weatherization and energy efficiency programs, such as Efficiency Maine, under a single umbrella to make it easier for homeowners to find services.
“We are trying to communicate to the people of Maine that these are sobering times, but that there are avenues to move forward,” Farmer said.
Privately, a few lawmakers have criticized Baldacci for not mentioning Vigue in his State of the State address last Tuesday given the Pittsfield businessman’s role in developing some of the concepts.
Farmer said the governor had been seriously working on transmission line and energy infrastructure issues for several months before Vigue and a group of other business leaders briefed him on the plan.
Farmer called Vigue a “great catalyst” of the current dialogue and that the governor was so interested in his ideas that he appointed his chief of staff, Jane Lincoln, and senior adviser Karin Tilburg to flesh out the proposals.
“Pete deserves credit. He deserves all kinds of credit,” Farmer said. “You can only do so much in a single speech.”
Vigue said he has received a few calls from people in the know since Tuesday.
“They are far more upset about it than I am,” he said. “I don’t care. Let’s get it done. That’s what would make me feel good.”
Vigue has been a prominent face in Maine’s business community for years. But he is perhaps best known in the Bangor area for spearheading the effort to convert an abandoned mill along the banks of the Penobscot River in Brewer into a module-manufacturing plant.
Several hundred workers are employed at the facility, which constructs large building modules for shipment to other areas. With its heavy focus on construction, manufacturing and project management, Cianbro could benefit financially from any construction windfall created by the realization of Vigue’s vision.
Nine other legislators from both sides of the aisle have joined Mitchell in sponsoring the concept bill based on Vigue’s plan. Co-sponsors include Sen. Phil Bartlett, the Senate majority leader, as well as Sen. Kevin Raye of Perry, the Republican minority leader, and Rep. Josh Tardy of Newport, the House minority leader.
Tardy said Friday it is absolutely critical the Legislature take a careful look at all of the different bills and concepts filed this year to help Maine become more energy-independent. But Tardy called the concept of co-locating transportation and energy corridors “very definable and very doable.”
“It’s an idea that needs to be fully vetted, but I like the concept and that’s why I signed on as a co-sponsor of the bill,” Tardy said.
Mitchell said she was pleased Baldacci has taken the first step in negotiating a memorandum of understanding with Bangor Hydro. Mitchell said she hopes the Legislature will take the best aspects of the governor’s and lawmakers’ plans.
“The timing seems to be right,” Mitchell said. “We have an executive who is ready to do this, and the Legislature is poised to do this.”
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