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State boiler engineers Mike Pushard, top, and Paul Lee repair a valve on a boiler that heats several state office buildings on the east-side campus in Augusta. State officials are looking into switching from oil to natural gas for heating the complex.

AUGUSTA — The east-side campus of state offices would be heated with alternative fuel – possibly natural gas – under a plan that's part of Gov. John Baldacci's $306 million bond package.

The proposal includes $4 million to pay for the conversion of boilers to something other than No. 2 heating oil, with the leading option being natural gas.

An additional $4 million would be used to replace windows and perform other energy-saving modifications to the buildings, many of which need significant upgrades, said Chip Gavin, director of the state Bureau of General Services.

Converting to gas would require a pipeline to be extended from seven miles away in Windsor, Gavin said. A new plant would be installed to burn gas, and also would be able to use waste energy. It would generate heat, cooling and electricity, according to the Governor's Office.

Once the pipeline is installed, local businesses and homes may be eligible to tap in. "If we can be an anchor customer, that has benefits beyond the immediate campus," Gavin said.

The new system would reduce the state's heating oil consumption by 425,000 gallons a year and save an estimated $500,000 in energy costs over the first 10 years, the Governor's Office says.

The $8 million project is one of several in the bond package that targets energy conservation.

The university and community college systems would get a combined $45 million for energy efficiency upgrades under the governor's proposal. In addition, there's $7.5 million to establish the Maine Marine Wind Energy Fund, which would create an offshore wind energy demonstration site established by the University of Maine.

Republicans, who will play a significant role in determining the size of the bond package, say they are still reviewing the governor's proposal.

"We want to look very carefully at the overall bond package in terms of size and focus," said Senate Minority Leader Kevin Raye, R-Perry.

Regarding the project to convert the east-side office complex to an alternative fuel, Raye said "the jury's out."

Some level of Republican support for the bonds is necessary because the package requires votes from two-thirds of lawmakers to gain approval. Any bonds approved by legislators are then subject to voter approval.

Rep. Bill Browne, R-Vassalboro, whose district includes Windsor and part of Augusta, wants to know how the conversion fits with the state's overall energy plan, and how extending a pipeline would affect residents whose land would be in the construction zone. "These things need to be planned a little bit more in advance," Browne said.

Senate President Elizabeth Mitchell, D-Vassalboro, said the project will help the state become less reliant on foreign oil.

"It not only would save a ton of money for the state's utility bills, it would help businesses and homes in that area," she said. "Augusta is so close to that pipeline, yet so far."

The idea to convert the east-side campus, which has 13 occupied buildings housing about 775 workers, is not new, Gavin said. But state interest in making the project work has been sparked by uncertainty in fuel prices, the need to reduce reliance on foreign sources of fuel and a commitment to reducing carbon emissions, he said.

"We need to focus on making our state and nation more energy-independent and secure," Gavin said.