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Good morning from Augusta,
The dog days of the legislative session are before us, but it appears that the efforts of the membership are starting to pay dividends.
One of our four priority bills this session, LD 1733, An Act to Provide Reduced Interest Rates for Logging and Fishing Operations, had a public hearing on Monday, May 12th in the Housing and Economic Development (HED) Committee. This bill would create a revolving loan program for logging contractors and commercial fishermen to purchase harvesting equipment with a 2% or lower interest rate. I want to extend a heartfelt thank you to our members (John Hinds, Marty Pelletier and Aaron Adams) and supporters (Peter Collins from Milton CAT), who took time out of their busy schedules to testify in support.
I’m pleased to share that during the work session for LD 1733 on Thursday, May 15th, the bill received unanimous support from all committee members present. A few legislators were absent and will record their votes in the coming days. The next challenge will be addressing the funding component, but we’re optimistic about advancing the policy this session and pursuing funding in a future session, once the statute is in place. LD 1733 now heads to the Senate and will go before the full Legislature for a vote following a formal language review.
Also on Thursday, May 15th, in the HED Committee, the PLC participated in a work session for LD 1664, An Act to Repeal the Dirigo Incentives Program. This legislation, sponsored by Senator Mike Tipping (D-Orono) was an attempt to eliminate the program, which was just created in 2023 to replace the Pine Tree Development Zone program and is targeted toward natural resource-based industries in the state.
In the background, the PLC has been working with the Mills Administration for the last year to correct an issue for logging and trucking companies that have more than 20 employees. Currently, these companies cannot qualify for Dirigo if they lay off employees seasonally. The only way to correct this issue was to amend the statute.
The PLC did not testify on LD 1664 but saw an opportunity to correct this issue after monitoring the public hearing and determining that it was obvious that this legislation was met with stiff resistance and would likely not go anywhere.
The PLC then worked with the bill sponsor and the committee to amend the bill and strip everything out of it, except to include language to correct the issue for logging companies with 20 or more employees that must layoff their employees during mud season.
We’re proud to report that LD 1664 was voted Ought to Pass as Amended by a bi-partisan majority of the Committee to correct this issue and allow logging companies with 20 or more employees to qualify for the program. The bill will now move to the Senate for an initial vote.
In addition to LD 1733, we participated in a work session on LD 1529, An Act to Enhance the Protection of High-value Natural Resources Statewide. The sponsor’s first amendment language overlooked important work already being done to support forest conservation and carbon goals in Maine and ignores the research and recommendations from the Governor’s Forest Carbon Task Force in both 2021 and 2024. These initiatives provided important strategies and market solutions that are currently in use.
This bill was further amended significantly to direct the Department of Agriculture, Conservation and Forestry to develop a comprehensive report on statewide strategies to enhance the conservation of late-successional forests and old-growth forests. We were able to get “logging contractors’ added to the group of stakeholders to ensure we have a voice at the table when the discussions around late-successional forests and old-growth forests take place.
Next week, the legislature will work to finish up all of their committee work and move all of the bills to the House and Senate for final disposition. We will continue to update you on our priority legislation that is still pending.
Bills we are tracking this session can be found here.
Last Week’s Legislative Activity – May 12 – May 16, 2025
Monday, May 12
LD 1733, An Act to Provide Reduced Interest Rates for Logging and Fishing Operations, Sen. Rick Bennett (R-Oxford), Public Hearing – Housing and Economic Development Committee (Support)
Further details regarding this bill can be found above.
Tuesday, May 13
LD 1808, An Act to Enact the Maine Climate Superfund Act, Rep. Grayson Lookner (D-Portland), Work Session – Environment and Natural Resources Committee (Oppose)
The PLC testified in opposition to both LD 1808 and LD 1870. This bill would establish the Climate Superfund Cost Recovery Program within the Department of Environmental Protection. Under the program, an entity or a successor in interest to an entity that was engaged in the trade or business of extracting fossil fuel or refining crude oil between January 1, 2000 and December 31, 2024 is assessed a cost recovery demand for the entity's share of fossil fuel extraction or refinement contributing to greenhouse gas-related costs in the State.
The committee voted Ought Not to Pass on this legislation, but directed staff to send a letter to the Department of Environmental Protection to learn about what is occurring in Vermont and New York on similar legislation that is now the subject of federal lawsuits.
LD 1870, An Act to Establish a Climate Superfund Cost Recovery Program to Impose Penalties on Climate Polluters, Sen. Stacy Brenner (D-Cumberland), Work Session – Environment and Natural Resources Committee (Oppose)
The PLC testified in opposition to both LD 1808 and LD 1870. This bill establishes the Climate Superfund Cost Recovery Program within the Department of Environmental Protection. Under the program, an entity or a successor in interest to an entity that was engaged in the trade or business of extracting fossil fuel or refining crude oil between January 1, 1995 and December 31, 2024 is assessed a cost recovery demand for the entity's share of fossil fuel extraction or refinement contributing to greenhouse gas-related costs in the State.
By retroactively penalizing fossil fuel companies for their effects on climate change, these bills would create a new fuel tax and the costs will trickle down to all consumers.
The Environment and Natural Resources Committee voted to carry this bill over to the second session, citing concerns related to the ongoing lawsuit in Vermont and New York. The committee expressed a desire to monitor the outcome of these cases before moving forward.
LD 1529, An Act to Enhance the Protection of High-value Natural Resources Statewide, Sen. Rick Bennett (R-Oxford) Work Session – ACF Committee (Oppose)
The PLC Testified in Opposition to LD 1529. Further details regarding this bill can be found above.
Wednesday, May 14
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), Work Session – Transportation Committee (Support)
The PLC testified in support of LD 1549, which if passed, would give voters an opportunity to vote on increasing and stabilizing transportation funding for infrastructure improvements through a referendum.
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 1549 was voted in committee and received a majority (7-6 committee vote) “ought not to pass” from the Democrats on the committee. The Republicans voted in favor of moving the bill forward.
LD 1804, An Act Concerning Funding and Oversight of Transportation Matters, Sen. Brad Farrin (R-Somerset), Work Session – Transportation Committee (Support)
This bill makes clear in statute that the joint standing committee of the Legislature having jurisdiction over transportation matters has complete jurisdiction over the Highway Fund.
The PLC testified in support of LD 1804. It establishes a minimum level of funding for transportation infrastructure programs related to bridges, highway lights and multimodal transportation by increasing from 40% to 60% the percentage of automobile-related sales and use taxes transferred to the Highway Fund and adds automobile-related sales and use taxes to the list of revenue that is allocated to and becomes part of the Highway Fund beginning July 1, 2027. It also makes clear in statute that the transportation committee has complete jurisdiction over the Highway Fund.
The Transportation Committee has decided to carry this bill over to the legislature’s 2nd regular session.
LD 1587, An Act to Establish Greater Alignment of Penalties for Certain Labor Law Violations, Rep. Matthew Beck (D-South Portland), Work Session – 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.
The Labor Committee has decided to carry this bill over to the legislature’s 2nd regular session.
LD 1868, An Act to Advance a Clean Energy Economy by Updating Renewable and Clean Resource Procurement Laws, Sen. Mark Lawrence (D-York), Work Session – Energy, Utilities, and Technology Committee (Support)
This bill directs the Governor's Energy Office to conduct one or more competitive solicitations every 2 years beginning January 1, 2026 to procure energy or associated environmental attributes or a combination of both from renewable and clean resources through long-term contracts if the office determines procurement is necessary to achieve the emissions reduction and renewable and clean energy goals of the State and to meet reasonably expected growth in electricity demand and reliability needs. This bill amends the state goals for consumption of electricity from renewable resources so that by January 1, 2040, 90% of retail sales electricity in the State will come from renewable resources and 10% of retail sales electricity in the State will come from clean resources. This bill gives additional authority to the Public Utilities Commission to coordinate with other states to procure, through long-term contracts or other mechanisms, transmission capacity, capacity resources, energy, renewable energy credits or clean energy credits. This bill directs the Public Utilities Commission to initiate a competitive solicitation for energy or renewable energy credits from Class IA resources for the purpose of improving the long-term viability of an existing facility. This bill also establishes a regular schedule of competitive procurements for renewable and clean resources.
The PLC testified in support of LD 1868. It will be beneficial for the biomass industry when seeking competitive procurements. The bill was tabled during the work session and will have another work session on May 20th.
Thursday, May 15
LD 1733, An Act to Provide Reduced Interest Rates for Logging and Fishing Operations, Sen. Rick Bennett (R-Oxford), Work Session – Housing and Economic Development Committee (Support)
Further details regarding this bill can be found above.
LD 1761, An Act to Prohibit Indemnification Agreements, Rep. Josh Morris (R-Turner), Public Hearing – Health Coverage, Insurance and Financial Services Committee (Support)
The PLC testified in support of LD 1761. This bill prohibits contract agreements that indemnify or hold harmless the promisee from or against any negligence, claim or liability arising out of an intentional act or omission of the promisee or promisor. Parties to a contract are not prohibited from agreeing that the promisee must be included as an additional insured in an insurance contract. The bill does not affect the validity of workers' compensation or other insurance contracts.
The work session for this bill was tabled. The sponsor is working with the Department of Economic and Community Development on an amendment.
Friday, May 16
LD 1879, An Act to Support Maine's Agricultural Economy by Increasing Revenue from the Corporate Income Tax and Providing Property Tax Exemptions, Rep. Bill Pluecker (I-Warren), Public Hearing – Taxation Committee (Oppose)
This bill imposes an additional tax of 1.07% on annual corporate income of more than $3,500,000, bringing the top rate to a total of 10%. The revenue from the additional tax is designated for agricultural purposes, in order of priority and to the extent funds are available, to: dairy stabilization support funds; the Dirigo business incentives program to fund the credit for expenditures on agricultural businesses; reimburse municipalities for a new 100% property tax exemption for agricultural buildings constructed, reconstructed or renovated after January 1, 2026 established in the bill; the Maine Agriculture, Food and Forest Products Investment Fund; the Business Recovery and Resilience Fund program to benefit the agriculture industry; the Agricultural Marketing Loan Fund; and the Dairy Improvement Fund. Any remaining balance must be transferred to the General Fund.
The PLC testified in opposition to LD 1879. Adding an additional 1.07% to the corporate income tax would be detrimental to logging businesses as well as the mills that our contractors deliver wood to.
LD 1617, An Act to Lower the Exclusion Amount for the Estate Tax and Create an Exclusion for Family Farms and Aquaculture, Fishing and Wood Harvesting Businesses, Rep. Cheryl Golek (D-Harpswell) Public Hearing – Taxation Committee (Oppose)
This bill lowers the exclusion amount, below which the Maine estate tax does not apply, to $1,000,000 from the $5,600,000 in current law for estates of descendants dying on or after January 1, 2026. The bill also creates an additional exclusion amount from the estate tax for family farms and aquaculture, fishing and wood harvesting businesses of up to $3,800,000. This additional exclusion applies to farmland or depreciable machinery and equipment used in commercial agriculture, aquaculture, fishing or wood harvesting that is inherited by a family member and remains in commercial use for 5 years following transfer.
The PLC testified in opposition to LD 1617. It would place an undue burden on the middle-class families and small business owners that make up the majority of our membership who are likely succession planning and trying to determine if they could afford to pass their businesses along to a family member when they pass away. However, with changes that are proposed in this bill, it would make Maine an outlier, creating inconsistency with federal tax law, and likely forcing them to sell their business, rather than passing it along to the next generation.
Next Week’s Legislative Activity – May 19 – May 23, 2025
Tuesday, May 20
LD 1868, An Act to Advance a Clean Energy Economy by Updating Renewable and Clean Resource Procurement Laws, Sen. Mark Lawrence (D-York), Work Session – Energy, Utilities, and Technology Committee (Support)
Further details regarding this bill can be found above.
Wednesday, May 21
LD 1879, An Act to Support Maine's Agricultural Economy by Increasing Revenue from the Corporate Income Tax and Providing Property Tax Exemptions, Rep. Bill Pluecker (I-Warren), Work Session – Taxation Committee (Oppose)
Further details regarding this bill can be found above.
LD 1617, An Act to Lower the Exclusion Amount for the Estate Tax and Create an Exclusion for Family Farms and Aquaculture, Fishing and Wood Harvesting Businesses, Rep. Cheryl Golek (D-Harpswell) Work Session – Taxation Committee (Oppose)
Further details regarding this bill can be found above.
LD 1761, An Act to Prohibit Indemnification Agreements, Rep. Josh Morris (R-Turner), Work Session – Health Coverage, Insurance and Financial Services Committee (Support)
Further details regarding this bill can be found above.