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Good morning from Augusta,
We are extremely pleased to report that the Taxation Committee voted unanimously Ought to Pass on LD 1313, An Act to Promote Equity in the Forest Products Industry by Allowing Commercial Wood Haulers to Be Eligible for Certain Sales Tax Exemptions and Refunds, on Tuesday! LD 1313, will provide a permanent sales tax exemption for log trucks, trailers, service trucks, and pick-up trucks used primarily in intrastate commerce for commercial wood harvesting companies. Currently, we are working with the committee analyst to refine the language around the definition of “hauling.” Clarifying this language will simplify the bill and ensure Maine Revenue Services understands what equipment is considered sales tax exempt. The next step is a formal language review, after which the bill will head to the Senate for an initial vote.
While this is a significant milestone, securing funding for the bill remains a key challenge as we don’t know what the fiscal note quite yet. We’ll continue to keep you updated as the bill progresses through the legislative process.
On Wednesday afternoon, the PLC attended a marathon hearing in the Labor Committee regarding legislation aimed at making changes to the Paid Family Medical Leave (PFML) program. There were 14 bills related to PFML that received a public hearing that day. Our opportunity to testify came just before 8 p.m. and we provided testimony in support of bills that aim to make changes to the program and help remove ambiguity for businesses. There were bills that proposed to eliminate the program, but with a Democrat majority on the Committee, those bills will go nowhere. From our understanding, the majority on the committee is going to only report out one bill that makes changes to the current law.
There is bipartisan and bicameral support for making adjustments to PFML and the PLC will continue to be involved in discussions with stakeholders to strategize on the best way to pass meaningful reforms to the program.
LD 1733, An Act to Provide Reduced Interest Rates for Logging and Fishing Operations, is on the horizon. This bill creates a revolving loan fund for logging contractors and commercial fishermen to purchase harvesting equipment with a 2% or lower interest rate. The program mirrors the Agriculture Marketing Loan Fund, which is available to farmers and would provide parity to the logging and fishing heritage industries. We will need your help in showing support for this bill as it will provide a significant benefit to logging companies looking to reinvest and purchase equipment. The bill has not been scheduled for a public hearing yet, but there is limited notice given this time of year from the committees, so please be on the lookout for more information. Please let us know if you are able to help by testifying in person, over zoom, or by submitting written comments in the near future.
Bills we are tracking this session can be found here.
If there are issues affecting your businesses, big or small, we want to hear about them.
Have a great weekend and stay in touch,
Dana
If you are interested in testifying on any of piece of legislation no matter the subject, please reach out to Ben Grant and he would be happy to assist you. He can be reached on his cell at 207-598-6223 or his email at ben@plcloggers.org. Senators and Representatives like to hear from the people in their districts as it helps provide knowledge to shape policy decisions.
Last Week’s Legislative Activity – April 21 – April 25, 2025
Tuesday, April 22
LD 1313, An Act to Promote Equity in the Forest Products Industry by Allowing Commercial Wood Haulers to Be Eligible for Certain Sales Tax Exemptions and Refunds, Sen. Brad Farrin (R-Somerset) Work Session – Taxation Committee (Support)
LD 1313, will provide a permanent sales tax exemption on log trucks, trailers, service trucks, and pick-up trucks used primarily in commercial wood harvesting.
The PLC attended Tuesday’s work session, and we’re pleased to report that the committee voted unanimously Ought to Pass on our bill. We are currently working with the committee analyst to refine the language around the definition of “hauling.” The next step is a formal language review, after which the bill will head to the Senate for a vote.
LD 1252, “An Act to Amend the Laws Governing the Maine Agriculture, Food System and Forest Products Infrastructure Investment Advisory Board”, Rep. Allison Hepler (D-Woolwich), Work Session – Agriculture, Conservation and Forestry Committee (Support)
The PLC testified in support of LD 1252, which modifies provisions of the law governing the Maine Agriculture, Food System and Forest Products Infrastructure Investment Advisory Board and disbursements from the Maine Agriculture, Food and Forest Products Investment Fund, which the advisory board oversees. The PLC supported a similar bill last year sponsored by the Speaker of the House Rachel Talbot Ross (now Senator Talbot Ross); however, it was not acted upon before the session ended and died.
LD 1252 was passed in committee with a unanimous, ought to pass as amended report. The only changes made to the original language included the addition of, “logistically and financially practicable”, when referring to requiring a producer to obtain products from within the state and $5 million in funding to capitalize the fund.
LD 1525, An Act to Promote Firewood Banks in Maine, Rep. D. Ray (D-Lincolnville) Work Session – ACF Committee (Support).
The PLC Testified in Support of LD 1525, which would require the Department of Agriculture, Conservation and Forestry, Bureau of Forestry to provide information to the public to increase awareness of firewood banks and to maintain a list on the bureau's publicly accessible website that lists all of the operating firewood banks in this state. The bureau must also develop informational resources to promote the successful operation of firewood banks in this State. In fulfilling these obligations, the bureau may consult with the University of Maine Cooperative Extension Service.
An amendment was submitted to the committee that removed a significant portion of the original language, but kept the section related to public information. The committee has expressed interest in reinstating some of the previous language concerning liability. However, the Department of ACF is pushing back on those changes. As a result, the bill has been tabled for further discussion during next week’s work session scheduled for Tuesday, April 29th.
Wednesday, April 23
The Labor Committee held a public hearing on fourteen bills regarding the Paid Family Medical Leave Law. The List of PFML Bills can be found in the Labor Committee Section of the Bill Tracker.
Thursday, April 24
LD 1275, An Act to Promote the Production of Natural Resources Bioproducts by Amending the Renewable Chemicals Tax Credit, Rep. Dan Sayre (D-Kennebunk) Work Session – Taxation Committee (Support)
This bill amends the law governing the renewable chemicals tax credit to remove the requirement that the taxpayer must demonstrate to the Department of Economic and Community Development that at least 75% of the employees of the contractors hired or retained to harvest renewable biomass used in the production of renewable chemicals meet the eligibility conditions specified in the Employment Security Law. This bill was enacted in 2020 with this provision, which the PLC was adamantly opposed to at that time. This was a provision added by then Senator Troy Jackson at the end of the session shortly after the pandemic had begun. This bill will correct a wrong that has deterred any investment in the state which could use this tax credit.
The PLC Testified in Support of LD 1275. In addition to the testimony, we asked the sponsor to amend the bill to create a second tier of incentive in the Renewable Chemicals Program for wood that is derived from third party forest land. This could encourage mills to site operations in Maine because they know their feedstock is 3rd party certified, and they would get a higher incentive for purchasing that wood. This would also provide an incentive for landowners that choose to certify their land and have a place to sell it.
The committee passed this bill unanimously Ought to Pass as Amended with the original bill language, but without the PLC’s recommendation of a second tier. The amended language would create an implementation date of January 1, 2026.
LD 1630, An Act to Amend the Open Space Tax Law, Rep. Dan Sayre (D-Kennebunk) Public Hearing – Taxation Committee (Oppose)
Like in the 131st Legislature, this bill aims to make changes to the Open Space current use tax law. We were in support of LD 1648, An Act to Make Changes to the Farm and Open Space Tax Law, in the 131st legislature, but we believe that this bill goes too far. It incentivizes taking forestland out of timber production, provides equal if not greater tax treatment than Tree Growth and has created a burdensome implementation system which relies upon professionals that do not have knowledge or experience to write, implement and oversee plans for landowners, effectively relegating logging contractors to the sideline in forest management. Our testimony in opposition can be found here.
Next Week’s Legislative Activity – April 28 – May 2, 2025
Tuesday, April 29
LD 1525, An Act to Promote Firewood Banks in Maine, Rep. D. Ray (D-Lincolnville) Work Session – ACF Committee (Support).
More information on this bill is above.
LD 402, An Act to Move the Natural Areas Program from the Department of Agriculture, Conservation and Forestry to the Department of Inland Fisheries and Wildlife and to Amend the Law Governing Administration of the Bureau of Resource Management Within the Department of Inland Fisheries and Wildlife, Rep. Jim Dill (D-Old Town) Work Session – ACF Committee (Support)
This bill would move the Maine Natural Areas Program (MNAP), which is currently administered by the Department of Agriculture, Conservation and Forestry, to the Department of Inland Fisheries and Wildlife (IFW). The PLC provided testimony in support of LD 402. Our testimony can be found here.
This bill was tabled again in committee and there will be further discussion at the next work session regarding rules for the program going forward. Rep. Pluecker wants to change the rules from routine technical to major substantive.
LD 1587, An Act to Establish Greater Alignment of Penalties for Certain Labor Law Violations, Rep. Matthew Beck (D-South Portland), Public Hearing – Labor Committee (Oppose)
This bill codifies into the Maine Revised Statutes provisions of the federal Fair Labor Standards Act of 1938 and creates a criminal penalty for any person who intentionally or knowingly violates the employment practices laws or the laws governing preference to Maine works and contractors. A person convicted of a willful violation is subject to a fine of not more than $10,000 or to imprisonment of not more than 6 months, or both, except that a person may not be imprisoned unless that person has been previously found guilty of willfully violating these laws. The Director of Labor Standards within the Department of Labor may refer these violations to the Attorney General for prosecution. The Attorney General must respond to the director within 30 days of receiving the referral, indicating whether the Attorney General will prosecute the case. If the Attorney General declines to prosecute, the Attorney General must provide to the director the reasons for the denial.
This bill also requires that any information related to these willful violations must be included in the department's annual report, including any fines sought or collected by the department, the number of referrals made by the director and the number of referrals declined by the Attorney General, including the reasons for the denials.
The PLC testified in Opposition to LD 1587.
Wednesday, April 30
LD 1210, An Act to Regarding Renewable Electricity Generation by Hydropower Projects, Sen. Brad Farrin (R-Somerset) Work Session – Environment and Natural Resources Committee (Support)
This bill amends the laws regulating the Department of Environmental Protection's process for approving or disapproving a permit for a hydropower project and for issuing or denying a water quality certification for a hydropower project as required under the Federal Water Pollution Control Act. It requires the department, in determining whether to approve or deny a permit, or issue or deny a water quality certification, to consider the effect of that approval, disapproval, issuance or denial on the State's renewable energy, decarbonization and economic development policies and goals; the environmental and economic benefits to the State of the hydroelectric generation provided by the project; and, taking those factors into consideration, whether approval of the permit or issuance of the certification for the project is permissible notwithstanding the project's effect on wildlife habitat and aquatic life within the waters affected by the project, including affected waters downstream of the project.
The PLC Testified in Support of LD 1210.
Thursday, May 1
LD 1549, RESOLUTION, Proposing an Amendment to the Constitution of Maine Regarding the Use and Oversight of Transportation-related Revenues, Sen. Brad Farrin (R-Somerset), Public Hearing – Transportation Committee (Support)
This resolution proposes to amend the Constitution of Maine to provide that, beginning July 1, 2027, at least 60% of automobile-related sales and use tax revenue must be transferred to the Highway Fund and must be expended solely for costs of all modes of transportation, including public highways, bridges, aviation, transit, railroads, ferries, ports and other marine infrastructure, trails, pedestrian infrastructure and bicycle facilities and related appurtenances. The resolution also provides that, beginning July 1, 2027, the joint standing committee of the Legislature having jurisdiction over transportation matters has jurisdiction over all financial matters related to the Highway Fund.
LD 1138, An Act to Reduce Pollution Associated with Transportation in Alignment with the State's Climate Action Plan, Sen. Stacy Brenner (D-Cumberland), Public Hearing – Transportation Committee (Oppose)
It amends the law regulating state monitoring of, reporting on and compliance with the requirements for gross and net annual greenhouse gas emissions reductions levels to require the Department of Transportation to adopt rules necessary to ensure compliance with those reduction levels. Under current law, the Department of Transportation is authorized but not required to adopt such rules.
LD 1619, Resolve, to Establish a Commission to Study Pathways for Creating a Thermal Energy Networks Program in Maine, Rep. Walter Runte (D-York), Work Session – Energy, Utilities and Technology Committee (Support if amended)
This resolve establishes the Commission to Study Pathways for Creating a Thermal Energy Networks Program in Maine. The commission is composed of legislators and public members, including, but not limited to, members with experience in engineering, research in the fields of thermal energy network development and workforce development.
The resolve requires the commission to study the feasibility of implementing thermal energy networks for residential, commercial and industrial sectors in this State by examining a number of considerations, including, but not limited to, compatibility with existing systems, certain legal considerations, grid impacts, labor and workforce considerations and funding opportunities.
The PLC would be in support of the bill if amended to add language to include district heating from wood. As written, geothermal technology is the only heat source in the study.