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February 18, 2013

State changes RFP review; LePage pushes for natural gas

Getting a handle on state contracting

Lots of people in Augusta are jockeying for position to direct where taxpayer money goes. Here are some top contenders:

The state has new practices in place to evaluate requests for proposals over $3 million that it hopes will clarify bidding on state contracts and reduce the number of appeals of high-value state awards.

The move comes in response to multiple high-profile appeals of state contract awards, including a battle over a $32.4 million 911 call system contract awarded to FairPoint Communications after two appeals and a contract fight that continues between two natural gas companies that want to supply Augusta.

Under the new rules, a department that wants to craft an RFP will work with the state's Division of Purchases. A new questionnaire for “high-risk” RFPs requires additional information from the requesting department such as its past experience with similar purchases, the members of the evaluation team for the RFP and specific guidelines for evaluating submitted proposals.

The review group also recommended that the departments do not bypass the question-and-answer portion and pre-bidder conference portions of the RFP process for certain contracts.

A push for natural gas expansion

In his second State of the State address, Gov. Paul LePage called for fast-tracking natural gas development. The governor's administration plans to submit legislation on the model of former Gov. John Baldacci's Wind Energy Act, which sped up wind power development in the state. In presenting his plan, LePage said he plans to fast-track regulatory approval for natural gas infrastructure and reiterated his opposition to limits set in the state's renewable energy portfolio standard that require power companies to obtain a certain percentage of their electricity from renewable sources.

LePage eyes RGGI credits

Gov. Paul LePage says he will approve a 45% reduction in carbon emissions from power plants if the Legislature accepts a plan to use proceeds from a regional cap-and trade program to help consumers convert heating systems from oil. The governor's expected legislation targets money raised through the Regional Greenhouse Gas Initiative, which auctions off carbon credits, and a surcharge on electricity bills. That surcharge annually sends about $5 million to the Efficiency Maine Trust, which uses the money for energy-efficiency initiatives across the state. Paul Badeau, spokesman for Efficiency Maine, cautioned that its RGGI-funded projects have helped lower current and projected energy costs by $300 million.

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