Secondary wood manufacturint
Secondary wood manufacturing contributes 8,884 jobs and $1.8 billion to Maine's economy, about 20 percent of the forest products industry’s impact.

Community guided planning efforts start in Aroostook

On Wednesday, April 24, the Land Use Planning Commission (LUPC) and Northern Maine Development Commission (NMDC) will be holding the first meeting on the community guided planning and zoning project for unorganized territories and townships in Aroostook County. This will be the first of several meetings to determine overall regional interest and to develop a framework for the community guided planning and zoning process. The meeting is scheduled to begin at 8 a.m. at the Caribou Inn and Convention Centre in Caribou and is expected to end at about noon. The meeting is open to the public. Below is a press release from NMDC which explains the project and the purpose of this first meeting in greater detail.

AROOSTOOK COUNTY — The first steps in a community guided planning and zoning project for unorganized territories and townships are under way in Aroostook.

In February, the Maine Land Use Planning Commission (LUPC) selected Aroostook County as the initial region to participate in a series of local workshops to help determine overall regional interest and, if interest is confirmed, further develop a framework for the community guided planning and zoning process. The LUPC is currently working with Northern Maine Development Commission (NMDC) to plan for and schedule the workshops.

“Right now we are working to set up a steering committee made up of 12 people who represent the unorganized areas and neighboring communities, made up of large and small landowners, businesses owners, agricultural interests, environmental organizations, tribal representatives, and others.  This steering committee will work with NMDC, the LUPC and a consultant to set up the process of how we should be doing this and what are the issues we should be examining,” said Jay Kamm, NMDC senior planner.

Kamm added the first three meetings of the steering committee, although open to the public, are just to develop the framework for the actual planning sessions, which should begin in June.

“When the steering committee meets for the first time on April 24th at the Caribou Inn and Convention Centre, we will be planning the process and developing a work plan,” he said.

Recent efforts to improve the effectiveness of managing land use in the unorganized and deorganized areas of Maine have focused in part on the need for more locally guided and proactive planning for these areas. The 2010 Comprehensive Land Use Plan (CLUP) identifies this type of planning, referred to as prospective zoning, as a priority for implementation. In addition, a directive to initiate prospective zoning is included in recent legislation.  “The Land Use Planning Commission sees this initiative as creating opportunities for locally-driven, well-planned development in rural parts of the state” said Nicholas Livesay, the LUPC’s Executive Director.

“Having local control and obtaining local input into land use planning in the unorganized townships will, in the long run produce a better and regionally accepted product as opposed to one that is developed in a centralized Augusta location,” added Kamm. “It’s coming from bottom up as opposed to top down.”

Kamm said after the initial pre-planning meetings public input will be needed to look at all the issues in the unorganized townships.

Once the entire planning process is done, which may take up to 18 months, recommendations will be made to LUPC.

“There is an opportunity to strengthen the economic development potential and protect the environment in the unorganized territories by looking at the zoning and land use activities there,” Kamm said. “Is what’s on the ground there now make sense with future plans.”

For more information please contact:

Hugh Coxe, Senior Planner, Maine Land Use Planning Commission, (207) 287-2662, hugh.coxe@maine.gov

Jay Kamm, Senior Planner, Northern Maine Development Commission, (207) 498-8736, JKamm@nmdc.org

Discussions about ACF merger continue

By Patrick Strauch, Executive Director

at the legislatureDiscussions about the merger continued this week in both ACF and the Appropriations Committee as legislators debate the structure of the merged department while at the same time the budget is being worked on.  Members of the Natural Resources Network (MFPC included) continues to support the structure of a department (see last newsletter) that creates essentially a governing cabinet of bureau directors sitting at the Commissioner’s table to discuss financial, operational and policy issues. It’s clear to me that the size of natural resource departments is not sustainable without some form of consolidation, and active participation in the process is essential.  We hearing rumblings of internal department strife, but I would encourage employees to focus on a long-term structure that is best for Maine’s natural resource management.  The ACF Committee will be meeting April 24, and I’ll keep you posted.

Other activity this week:

  • LD 679, Resolve, Regarding the Management of Maine’s Brook Trout and Landlocked Salmon Resources. I’ve only been monitoring this issue, watching over the potential for regulating lakes on private land, but I’ve received many calls from members who perceive this bill as an affront to ice fishing in the northern watersheds. We will continue to monitor the discussions on this issue.
  •  LD 512, An Act To Allow Licensed Foresters To Use Mechanics Liens, was voted out as an anticipated divided report, but no more details are available yet. 
  •  LD  1040, An Act To Prohibit the Placement of Cameras and Electronic Surveillance Equipment on Private Property without the Written Permission of the Landowner. This bill was amended and voted ought to pass.  The council supported the bill.
  •  LD 1147,  An Act to protect Maine’s Scenic Character. The Council testified in opposition to this bill on the basis of the precedents established for many activities on private land.  It is clear that the expedited wind power act is under siege. I worry about the establishment of scenic standards that have far reaching implications for landowners. For example, the bill proposes a 30 mile protection zone for wind projects along the Appalachian Trail, Allagash Waterway, and other  Scenic sites of local. State and national concern.  MFPC will work with other interested parties to ensure regulations for wind power siting are balanced by private landowner rights.
  •  LD 1177, An Act To Implement the Recommendations from the Discontinued and Abandoned Roads Stakeholder Group. It became clear to me that the group that worked on the final report of the stakeholder process was not involved in the legislation that was presented in front of the State and Local Government committee.  Many citizens relived their personal troubled histories with discontinued roads on their property and conflicts with users of the roads. There still needs to be a lot of work reconciling the report to the bill before MFPC can be supportive , but we will have the opportunity to stay involved in the legislative process as this bill will have numerous work session for review.

Next Week:

With unfinished bills and a budget still without answers, the legislature is taking next week of, with just a few committees meeting.  The Review of Chapter 17 rules will be coming back to the Legislature as part of the substantive rule making process. These are the bonded labor equipment ownership rules that were resolved during the 125th legislature. We’ll keep you posted on how this session goes on Wednesday.  Otherwise activity will be limited, but we’ll get you ready for the debate on Arming Forest Rangers with Guns.back to newsletter

 

 

Labor Committee OKs Jackson’s bill linking bonded labor, Tree Growth and fire protection

Troy Jackson 4-12-2013

Sen. Troy Jackson, D-Aroostook

Friday’s work session on LD 1103 — Sen. Troy Jackson’s latest attempt to tie bonded labor, Tree Growth taxation and fire protection – lasted just two minutes and 49 seconds, but there was one memorable moment and it was not the vote.

Seven Democrats (see below) voted for the amended version, but Sen. John J. Cleveland, D-Androscoggin, broke ranks and voted against the bill, along with Rep. Bryan Duprey, R-Hampden, and Rep. Lawrence E. Lockman (R-Amherst). Three other members of the Labor, Commerce, Research and Economic Development Committee — Sen. Andre E. Cushing III, R-Penobscot, Rep. Amy Fern Volk, R-Scarborough, and Rep. Ellen A. Winchenbach, R-Waldoboro — did not vote Friday.  The bill is a word-for-word resurrection of LD 314 from the 125th Legislature.

“It’s a sad day when Maine legislators approve a bill that’s clearly unconstitutional and discriminatory,” said Executive Director Patrick Strauch. “But the Democrats on the committee allowed Troy Jackson to use this issue as a political football.”

In MFPC’s initial testimony, when the bill was simply a concept, we opposed LD 1103 it because it is bad policy, unfair, unconstitutional, unnecessary and inappropriately connects fire protection, Tree Growth and bonded labor.  When Sen.  Jackson submitted LD 314 as an amendment, Executive Director Patrick Strauch requested an opinion on its constitutionality from Pierce Atwood.

Thursday Strauch emailed their opinion to the entire committee and also presented printed copies to members Friday, along with a letter.

“Rarely will a bill come before you that would violate three clauses of the U.S. Constitution: the Foreign Commerce Clause, the Supremacy Clause and the Equal Protection Clause. LD 1103 would do just that,” Strauch wrote in his letter. “It’s unlikely the law proposed would survive federal scrutiny, but even more importantly we don’t believe Maine legislators or citizens support discrimination or bills that attempt to legalize it.

Jonathan Block and Charles Einsiedler of Pierce Atwood pointed that LD 1103 discriminates against foreign commerce. It encourages landowners “to violate federal anti-discrimination laws.” It requires landowners to discriminate against bond workers — or face additional taxes — “simply because they are Canadian.”

Rep. Duprey clearly had considered carefully Strauch’s letter and the Pierce Atwood letter carefully.  “I’ll be voting against the pending motion strictly because I believe the bill you’re passing violates the Federal commerce clause, the supremacy clause and the equal protection clause of the United States constitution,” Duprey told fellow committee members.

steve and mark

MFPC Board Member Steve Schley and President Mark Doty at the work session on LD 1103.

Then came the most interesting moment of the work session, when House chair Erin D. Herbig, D-Belfast, asked Henry Fouts, the committee’s policy analyst if he had anything to add.

“I was just going to flag that there are some potential legal issues if this bill were to pass,” Fouts said, “and I recommend looking into those before making a decision.”

Rep. Herbig responded, “OK. Could you perhaps go through that review, do that now?”

But Senate chair John L. Patrick, D-Oxford, never gave Fouts a chance to answer. Patrick jumped in to say, “This bill has been brought to the Legislature with supposedly problematic issues numerous times and was actually passed a couple of time and I think we can bring up the issue when we look at the amendment review. And we can also look at if there are problems amending it from the floor.”

Actually, although LD314 got through the House and Senate, Gov. Baldacci refused to sign it.

Despite Fouts’ recommendation, the vote was quickly called. Patrick, Herbig, Rep. Paul E. Gilbert, D-Jay, Rep. Scott M. Hamann, D-South Portland, Rep. James J. Campbell, Sr., I-Newfield, Rep. Andrew T. Mason, D-Topsham, and Rep. Anne-Marie Mastraccio, D-Sanford voted ought to pass.back to newsletter

 

FIN shares information and builds trust at meeting

fin forum

By Pat Sirois, SFI Director

FIN LOGOThe Fisheries Improvement Network (FIN) held its second annual meeting at the MFPC office on April 3. The meeting was attended by representatives of the U.S. Fish and Wildlife Service, Maine Department of Inland Fisheries and Wildlife, Maine Department of Marine Resources, Natural Resource Conservation Service, Keeping Maine’s Forests, The Nature Conservancy, Atlantic Salmon Federation, Maine Forest Service, and representatives of nearly 6 million acres of SFI certified forestlands.

“MSFI has worked hard to bring together forestry and fisheries interests to improve communication on the importance of fish-friendly crossings, to share information on stream habitats and priorities, and to exchange information on how best to improve passage issues,” said Jed Wright of USFWS. “Meetings, field visits and workshops are helping develop a collaborative environment where people are growing more comfortable sharing information and highlighting fish passage improvement projects that are happening across the landscape.  Fish friendly crossings are the right thing to do for both infrastructure and ecological reasons – forums like FIN are helping us move forward with picking up the pace of restoring streams in Maine. Many landowners have participated in programs to inventory and assess their road crossings for fish passage barriers.  There is great interest in knowing where the problems are, how to fix them, and to get them fixed.”

 The event focused largely on stream connectivity and three specific areas.

  • How can I identify fish passage issues on my land base?
  • Where are the fish and where should I begin improving passage?
  • How can I begin fixing barriers?

“I think the last FIN meeting was quite successful. It seemed obvious to me that there has been a considerable amount of trust built over the last couple of years between the fisheries agencies and the landowners,” said Keith Kanoti, water resource forester for the Maine Forest Service. “The regular forum for sharing of information that FIN provides is critical to maintaining this trust and networking to improve the fisheries resource in a way that makes sense.”

Presenters from the agencies offered ideas ranging from training programs for identifying fish passage barriers, to online tools identifying priority habitat areas where upgrading crossing efforts could be focused.

FIN meeting photosLandowners provided updates on progress made in upgrading crossings and shared several innovations developed and utilized in the last year for effective “Stream Smart” crossings that offered flexibility as well as lower unit costs.  One such technique, piloted on Plum Creek land, using a concrete arch to cross a stream.  The arch came from a form designed and produced by Dirigo Timberlands, a logging firm in North Anson. Dirigo Timberlands intends to produce these arches for distribution.  For more information on the concrete arches call 207-807-6131.

The FIN forum is the latest development in a growing relationship between SFI Landowners, state and federal agencies and NGOs to improve Maine’s fisheries through stream crossing upgrades on forest management roads to Stream Smart standards.

Sarah Medina with Seven Islands characterized FIN as “highly relevant with a good transfer of technical information between landowners and fisheries agencies. It is a good environment.”

Another idea from the last weeks FIN meeting was to widely distribute new Stream Smart ideas, tools and practices to the broader forest community and even public road’s interest. Beginning later this spring, FIN will begin distributing this information through “FIN FACTS” a new periodic online publication. back to newsletter

 

Natural Resource Network presents merger proposal

Org Chart AG  Conservation  Forestry

The rustling of pages was the only sound to be heard during the most exciting moment of the public hearing on LD 837, the bill that attempts to sort out the Agriculture, Conservation and Forestry merger.

back to newsletterWhen the Natural Resource Network’s testimony was handed out to the committee, the first page was a proposed organizational chart for the merged department — the very thing that legislators wanted most, but hadn’t yet received.

“I know we’ve asked for it a couple of times, but do you have any kind of a flow chart that you can present, at least at the work session, to show us where we are now?” Rep. James Dill, D-OldTown, and House chair of the committee asked Commissioner Walt Whitcomb.

Whitcomb promised to provide the department’s chart later, but there already were clear signs that some committee members were not sold on the merger. After Whitcomb read his three pages of testimony, he was sharply questioned by legislators for more than 30 minutes.

“I’m hoping by the end of the day someone will convince me that the merger makes sense. So far no one has,” said Rep. Craig V. Hickman, D-Winthrop. “I need to be convinced that we’re going to save money by doing this and so far I have not.”

As Whitcomb stepped away from the podium, David Bell, executive director of the Wild Blueberry Commission, stepped up to testify first for the Natural Resource Network. Since each person who testified was limited to three minutes, the Network’s presentation was assigned to Bell, MFPC Executive Director Patrick Strauch, Bob Meyers, executive director of the Maine Snowmobile Association, and Don Flannery, executive director of the Maine Potato Board. Later in the hearing Clark Granger also testified for the Farm Bureau in support of the network’s proposal and so did Tom Doak supported for SWOAM.

“We supported the merger last year based on a couple of goals, including that there should be a reduction in administrative expenses,” Bell told the committee. “Currently, as proposed in the biennial budget and LD 837, it falls short of those goals. However, we continue to support the merger of the ACF department because we think it will result in a stronger voice for Maine’s natural resource economy and help us focus on the opportunities we all believe exist.”

Executive Director Patrick Strauch outlines the proposed structure to ACF Committee members.

Executive Director Patrick Strauch outlines the proposed structure to ACF Committee members.

He then turned the microphone over Strauch, who quickly walked the committee members through the network’s proposal for the organization of the department.

“We wanted to make sense out of all the functions of the agriculture, conservation and forestry,” Strauch told them. “There is a Bureau of Agriculture, Bureau of Forestry, Bureau of Parks and Lands, and Bureau of Resource Information and Planning. “We thought those were logical compartments that maintained the integrity of the individual focuses of expertise and also brought them together in a different way so we could match up the synergies.”

Meyers outlined the statutory changes the network proposed, including those designed to address qualifications for commissioner, guiding principles and stewardship of parks and lands. Flannery talked about concerns about the management structure, clarification of the advisory committee and reporting requirements.

“LD 837 is a vehicle for those here today whether they are speaking for or against,” Flannery said. “You’re going to hear their concerns, their ideas and it’s a chance for the committee, if they so wish, to try to get this right.”

Among the opponents of LD 837 was the Natural Resource Council of Maine, whose testimony was presented by Cathy Johnson. She told the committee that NRCM has serious questions about the value of the merger, adding, “No one has yet articulated any benefit to the programs within the Department of Conservation from this merger. Rather than benefits, this proposed merger threatens the fundamental purpose of the department.”

The most “egregious provision,” Johnson said is the proposal in L.D. 837 “to change the mission of the Department of Conservation from one of conservation, protection and stewardship of our state’s mountains, lakes, rivers, forests, wildlife and other natural areas into a mission of natural resource extraction and economic development.”

The work session on LD 837 has not yet been scheduled, Strauch said Friday, but could be as soon as Thursday, April 4.

“I think it was important for us to provide the committee with some structure for the department,” Strauch said. “Now all interests can look at our proposal, participate in the discussion and create a stronger department.”

Maine needs ‘replacement’ workers

Age panelHow many logging equipment operators does Maine need? An average of 44 each year from 2010 to 2020, according to a labor analysis provided at MFPC’s request by the Maine Department of Labor Center for Workforce Research and Information. Jobs also will be opening up in for production, machine installation and repair, and trucking.

In late February, MFPC requested a labor analysis of the forest products industry from the Maine Department of Labor and our staff is still studying the results.  The Occupational Outlook 2010-2020 chart is based on foreseeable conditions, trends and statistical models, according to the DOL analysis. Economic events, such as mill closures, may significantly change outlook in forest products industries from levels projected here.

One important trend is clear:  Replacing retiring workers will be a key issue for the rest of the decade. The analysis showed that forest products industries have an older workforce than the private sector as a whole, with 62 percent of workers ages 45 and older, compared to 47 percent of workers at all private firms.

None of that will come as a surprise to those who have been following the recent research done in Maine and New England, including last fall’s Logger Training Survey, which found that 73 percent of contractors surveyed stated that there is a need for an equipment operator‐training program in Maine.  Those following news reports know about Canada’s campaign to recruit new forestry workers.  Experts predict Canada’s forestry companies will need to hire at least 60,000 people over the next seven years, with 40,000 of those replacing retiring baby boomers and 20,000 new positions created, as a stronger U.S. housing market brings more work to the sawmills.

As noted in earlier newsletters, there is growing concern in Maine, and throughout North America, that there will be insufficient qualified labor to meet the future harvesting and transportation needs of our industry, but this analysis is the first indication of home many new workers may be needed or must be trained.back to newsletter

Skipping BETR payment ‘very difficult pill to swallow’

Testimony went on for hours – and hours – Wednesday as the Appropriations Committee heard from more than 100 local officials, businesses and others affected by the governor’s budget plan, including his proposal to convert property remaining in the BETR program to the BETE program.

“You are making it tough to be a manufacturer in Maine, especially rural Maine, making it tough for out- of-state decision makers to think of Maine as a place to invest,” said Tony Lyons, director of fiber supply and public policy at Rumford Paper Company, a subsidiary of NewPage Corporation.

Donhaue quote blockProbably the most contentious item at Wednesday’s hearing was the provision to suspend revenue-sharing to municipalities, but BETR was a close second.  Although many businesses favored the transition to BETE, because the reimbursement rate is higher, they strongly opposed suspension of BETR payments for one year. That part of the proposal would cost businesses a combined $38.8 million, but would only save the state $11.8 million, according to Maine Revenue Services.

“We don’t see a recovery of those dollars until 2021. That’s a very difficult pill for our company to swallow,” Bill Cohen, Verso’s communications manager, told the committee. “We just finished a $42.5 million program of investment and created 50 new woods jobs. And we would not have done that without the programs that are in place.”

MFPC has expressed its concerns about this approach to the governor’s office and will be providing written testimony to the Appropriations Committee, said Executive Director Patrick Strauch. Maine paper companies are among the heaviest users of the program, according to Maine Revenue Services data, with Verso Paper topping the list with more than $4 million in reimbursement in fiscal year 2012.  (Bath Iron Works was second with $3.4 million and National Semiconductor third with $1.9 million last year.)

“We are at the top of the list under reimbursement because we are at the top of the list for a company that has modernized its mills and tried to remain competitive in a global economy,” Cohen said. “We have invested hundreds of millions of dollars in recent times in our mills. If you take the budget proposal that has been suggested, then we stand to lose up to $5 million, depending on what the towns do, in terms of making up the revenue-sharing loss.”

Cohen asked legislators “to remember that Verso Paper is a job creator and a job retainer,” with mills in Jay and Bucksport that employ 1,500 people directly and have an indirect impact on somewhere between 5,000 and 7,000 jobs.

John Donahue,  vice president of manufacturing at Sappi Fine Paper, was one of many who told legislators that skipping BETR payments would have a chilling effect on business investment in Maine.  Sappi currently has approximately $350 million in capital investment eligible for property tax reimbursement under the BETR program, which has “enabled us to sustain over 1,300 high-paying quality jobs in the state.” The BETR program helps mitigates the impact of the tax disadvantage Maine has compared to

“The skipped payments will cost our company an estimated $1.5 million for the sites in Westbrook and Skowhegan,” Donahue said. “The elimination of BETR penalizes businesses for investing and creating jobs in Maine. As one of the leaders in a very capital intensive industry we followed through on what the BETR program encourages by investing in Maine. Why should the economic burden be shouldered by businesses that employ Maine people but exclude competitors who do business in Maine? We support the proposal that transitions BETR to BETE and we urge alternative solutions to skipping the year’s worth of BETR payments, which were budgeted when we initially made those decisions.”

back to newsletterJohn Williams, president of the Maine Pulp and Paper Association, noted that nine of the 13 pulp and paper companies and paper products manufacturers operating here are in the top 20 list of BETR recipients. Williams compiled data from seven of the nine that are MPPA member companies. He testified that found those seven received $9.8 million in BETR reimbursements in FY 2012, for taxes paid in 2010. That same year (2010) they invested $90 million in their facilities, offered employment to 4,100 Maine men and women, and spent $777 million within Maine. Between 2002 and 2011. Williams said, these seven companies invested more than $1 billion in their facilities.

“Under this proposal Maine’s  businesses stand to lose $38 million in FY 2015, and Maine’s  pulp and paper companies will bear the brunt of that loss,” Williams said.

Among others from the forest products industry who testified in opposition were Keith Van Scotter, CEO of Lincoln Paper and Tissue; Alexandra Ritchie, a managing director with Cate Street Capital, the owner and operator of Great Northern Paper; Tina Laplante, controller, International Paper in Auburn,  and several members of the United Steelworkers, which represents pulp and paperworkers in Maine.

But with 45 recent layoffs at the Rumford Paper Mill, Lyons testimony may have had extra impact. He told legislators that the Rumford Mill is one of Oxford County’s largest employers, paying hourly employees an average wage of just under $28 per hour. But with a 4 percent drop in demand for coated freesheet paper and an 8 percent decline in demand for coated groundwood paper, the mill was forced to eliminate 45 salaried and hourly positions in February. At the full BETR level, Lyons said, the mill pays more than $4.4 million in property taxes annually. A 100 percent BETR payment brings that down by about $1 million to $3.4 million.

“In Rumford, the math is getting simpler for us,” Lyons testified. “We just cannot afford to absorb a skip of a year’s worth of BETR payments, it’s that simple. We can’t pass it on to our customers; it leaves us only two ways to cover that $1 million; we spend less and we reduce our workforce.”

Michaud sends Obama Mainers’ views on forest products

PulpPaperObamaLetter 3-14-13WASHINGTON, DC – “The most pressing issue facing Maine’s paper industry is the subsidy package given in September 2012 by the province of Nova Scotia to the paper mill in Port Hawkesbury.” Rep. Mike Michaud told President Obama in a letter this week.

Following up on his tour of Maine’s pulp and paper sector earlier this year, Rep. Michaud sent a letter to President Obama on March 14, summarizing his finding and urging action on issues such as energy costs, transportation challenges and federal environmental regulations. He also sent 159 letters he received from Mainers on a range of issues facing the paper industry.

“I’m hopeful the president will do everything in his power to work with me, Congress and his administration on the critical issues our pulp and paper sector continues to face,” Michaud said in a press release.

In his letter to Obama, Michaud outlined the major concerns that were brought to his attention repeatedly on his tour and in the letters he received:

  • The subsidy package given in September 2012 by the province of Nova Scotia to the paper mill in Port Hawkesbury
  • Energy costs
  • Transportation challenges
  • Federal environmental regulations

“The Mainers that wrote to me clearly spoke from the heart about what this industry means to them and their communities,” Michaud said in a press release. “I came from a mill town and worked in a paper mill for nearly 30 years. I know exactly where they are coming from in these letters and have been pushing for action on many of the issues raised for years. I’m hopeful the president will do everything in his power to work with me, Congress and his administration on the critical issues our pulp and paper sector continues to face.”

A sample of comments Michaud received from Mainers can be found below:

“Business in the woods hasn’t changed much over the years in some ways. Contracts are still made with a handshake. However, the ability to make a profit is slipping away more every day. Not many years ago, fuel was 89 cents/gallon and therefore related products like tires and many parts were similarly low,” wrote Susan D’Alessandro of Millinocket.

“Whenever I have brought friends from ‘away’ home to Rumford, I get a kick out of the way they crinkle their noses at the strong smell of sulfur. For those of us who grew up there, we joke that it ‘smells like money’—but now I worry that is no longer true,” wrote Mollie Kaubrys of Rumford.

“I have been at Madison Paper for 10 years now and have realized this is the career that has given me the success and opportunities I was looking for. We are looking for fair trade and nothing more,” wrote Michael Croteau of Anson.

“We are losing our young people every year as they move out of state to find good paying jobs. The paper industry provides some of the best paying jobs in the state,” wrote Archie Miller of Readfield.

“The workers who depend on the mills extend far beyond the millworkers. The ripple effect is tremendous. Unfair trade is killing the wood industry,” wrote Thomas Targett of Portland.

The full text of the letter Michaud sent today can be found below:

March 14, 2013

President Barack Obama

The White House

Washington, D.C. 20500

Dear President Obama:

I recently spent a week touring paper mills throughout my district to hear firsthand about the challenges they face and to learn how the federal government can support an industry that collectively remains one of the largest employers in the state of Maine. Individuals at the mills described a spectrum of issues they struggle with, including illegal Canadian subsidies, energy costs, transportation costs, and environmental regulations. I have summarized my findings from my tour in this letter, and I have also enclosed comments I received directly from Mainers about the paper industry. I ask you to work with me to mitigate these challenges, promote this important sector, and protect the 7,300 jobs it supports in my state.

The most pressing issue facing Maine’s paper industry is the subsidy package given in September 2012 by the province of Nova Scotia to the paper mill in Port Hawkesbury. These subsidies appear to be in violation of Canada’s World Trade Organization commitments, and they directly disadvantage Maine’s mills, particularly those that make supercalendared and groundwood coated paper. Those mills made clear that this subsidy package will put them out of business in the very near future if no action is taken to reverse them. I made USTR aware of this, and I am appreciative of their willingness to work with my office to find a way to reverse these noncompliant subsidies. I ask that the White House also weigh in with Canada and apply additional pressure on Ottawa to comply with their trade commitments. We need to use all resources at our disposal to ensure that the Port Hawkesbury deal does not force mills in Maine to lay off their workers and close their doors.

In addition to competitors’ trade practices, energy costs greatly determine a mill’s viability. Because oil is so expensive, the vast majority of paper mills have switched, often at great cost, to an alternative source of fuel. Natural gas is one of the least expensive options, but, until a gas pipeline is built, it remains unavailable to most of northern Maine.  Efforts to extend the gas pipeline farther north are underway, but these plans are still in the very early stages and do not include the most northern parts of the state. I have discussed the importance of building a natural gas pipeline with the Economic Development Administration and the U.S. Department of Agriculture. I have asked both agencies to assist with potential funding opportunities for this project, and I am hopeful the White House will contribute to these efforts. Making natural gas available to all of Maine’s mills will dramatically reduce their energy costs and make them more competitive.

Transportation challenges also affect our mills’ cost-effectiveness.  Trucking paper products is very expensive, especially with increasing oil costs. Maine’s 20-year pilot program for increased truck weights makes it more cost-effective to use trucks, but that is not a comprehensive solution. Reliable freight rail is vital to Maine’s mills. Unfortunately, short line rail in the state is inadequate. Lines fall into disrepair and are not fixed by their owners. Some of the smaller mills have difficulties obtaining cars in a timely fashion, and, even when they are available, products are not always delivered by the promised time. I have engaged the Surface Transportation Board to determine what role the federal government can play in improving freight rail in northern Maine. As a complement to these conversations, I ask the White House to work with my office to identify federal policies that can improve the dependability of short line railroads.

The mills also expressed concerns about increasingly strict environmental regulations that have very high compliance costs. The Boiler MACT regulations, despite the recent revisions, will still require millions of dollars for compliance costs for some of Maine’s mills. In addition, some of the rule’s key provisions have yet to be finalized. How operating parameter limits are determined, whether based on a 30-day averaging period or a one-time test, could significantly alter the impact of the regulation. Moreover, the Non-Hazardous Secondary Materials regulations, while improved from previous versions, still have yet to address the forest products industry’s concerns about the inclusion of railroad ties as non-waste fuels. The mills in Maine that burn railroad ties in their boilers need quick resolution to this outstanding issue, and I urge the White House to work with the Environmental Protection Agency to reach final decisions on these matters as quickly as possible. I also encourage the White House to reach out to representatives of the paper industry and explore with the industry and EPA ways to mitigate the costs of implementing the Boiler MACT regulations. Mainers are committed to protecting the environment, but the state cannot afford to have environmental rules put our mills out of business.

Mainers are acutely aware of the difficulties facing the paper industry.  I am enclosing constituent letters I received so you can read firsthand from Mainers’ how important the paper industry is to the state and how critical federal policies are to its future.  These letters echo the comments I heard directly from Mainers on my tour. I ask you to work with me to address the challenges detailed in this letter and to promote Maine’s paper sector and the 7,300 jobs it supports.

Thank you for your consideration of this request.  I look forward to working with you to promote and advance Maine’s paper industry.

Sincerely,

Mike Michaud

Member of Congress

 

Don’t ask forester Bill Brown about “his” road

Bill Brown, a forester for Seven Islands for more than three decades.

Bill Brown, a forester for Seven Islands for more than three decades.

If you’re just west of Big Eagle Lake and paying close attention, you may notice you’re driving down “Bill’s Road,” also known as “Chemin de Bill.” But don’t mention that road to the man for whom it’s named – forester Bill Brown of Seven Islands Land Company – you’ll just embarrass him.

“Bill is humble. He never calls it Bill’s Road,” said co-worker Shawn Bugbee. “There are signs on both ends of it that say Bill’s Road, but Bill always calls it the Russell Stream Road.”

The Maine Forest Products Council named Brown the “Outstanding Forester” of 2012, but he’s been making his mark on his colleagues, his company and the 300,000 acres he supervises for the nearly four decades.

“To us he’s the quintessential forester,” said Steve Schley, president of Pingree Associates, the family group that owns Seven Islands. “He’s lived it, breathed it and walked it. He’s seen it all.”

Bills_Labeled_Map_webBrown grew up in Dover-Foxcroft and knew he wanted to work in the woods. He could have followed his two older brothers to the University of Maine, but he “wanted to be different,” so he attended Paul Smith College in upstate New York, graduating in 1973. That summer he got an unexpected call from John Sinclair, then president of Seven Islands.  Brown wasn’t looking for a job, but when Sinclair offered him one in the Greenville district, he answered,  “Yeah, I’ll give it a try.”

“And here I am 39 years later. So I guess I liked it,” Brown jokes. “I like the work. I’ve been fortunate with Seven Islands. Obviously this is quite isolated here and they give you a lot of freedom. They say this is what we want to do and you just go do it. I’ve been fortunate to practice forest management all these years.”

Brown’s view of the North Woods stretches far beyond that seven-mile road that leads between the logging camps where he’s spent much of his life. He watched fir trees turn “all red as far as you could see” during the spruce budworm infestation and lived through what he calls the “clear-cut wars.” He’s seen the deer herd in his district boom and bust. He vividly remembers the day a storm leveled 500 acres of mature trees “to the bare ground” on the east side of Big Eagle Lake and he celebrated the day 33 years later when that ridge had enough trees to thin.

“You do see the results, the impact you have on the landscape,” Brown said. “The most important thing is just to take pride in your work – know what your goals are and take pride in your work.”

Brown is very proud that Seven Islands was the first and the largest ownership to become certified by the Forest Stewardship Council (FSC) and the Sustainable Forestry Initiative (SFI). The company’s nomination for the MFPC award stressed that Brown “was integral in Seven Islands foray into certification . . . Bill has been an excellent practitioner of the concepts through the years. The process benefited to a large degree because of Bill’s commitment.”

He’s also proud of his relationship with staff of the Allagash Wilderness Waterway, which runs through his district. The  waterway is “just great,” he says, adding that he has “done the full distance a couple of times.”

Award Winners 2012“Everything we do we have to consider: What is the impact going to be on the Allagash Wilderness Waterway?” Brown said. “We have been able to maintain a good relationship with the waterway. And that’s the way the family wants it. That’s the way the company wants it.”

Brown is manager of Seven Islands’ Ashland West Unit, while Bugbee, 32, manages the Ashland East Unit. They clearly work well together, but Bugbee smiles when asked about his first impression of Brown when he started work as a summer intern.

“Well, when I was in college he was pretty intimidating really,” Bugbee said. “I think Bill has opened up a lot more of the past 10 years since I’ve known him, but he’s always been a man of few words. He would talk to me, but it was all business all the time almost.”

Although Brown’s words were few, they were valuable for Bugbee and many others, especially in a profession where planning is so vital.

“Bill is super organized,” Bugbee said. “Working side by side with him, creating our plans for the year, he taught me a lot of organizational skills along with a vast amount of forestry skills.”

The isolation of the woods meant young foresters moved on quickly as they married and had children. Brown stayed on, heading to his home in Ashland only on weekends. But the people who worked for and with him can now be found throughout the company,  including Schley, Seven Islands President John McNulty and Vice President Chris Nichols.

“I think the people he trained are his greatest legacy,” Bugbee said.

McNulty went to work for Brown in 1978, during the height of the budworm infestation. For 2½ years, they lived together in a one-room camp with gaslights, no running water and a cooler instead of a refrigerator.  Only a divider separated their sleeping quarters and the kitchen/communal area, which had a woodstove and a picnic table.

“He and I got to know each other very well during that time,” McNulty said. “He was my supervisor, but he also provided me great guidance as a young forester. He was not too overbearing, but he’s always been a stickler for the policy of the company, so that kind of hung with me. As far as a young forester just learning the ropes, there was probably no better place to learn. It was sort of like forestry through immersion.”

McNulty describes Brown as trustworthy, honest, hard working, focused on quality and determined to do the best job possible. “He’s rock solid,” McNulty said. “He’s like this anchor we have out in the middle of the woods.”

Their relationship is still important to McNulty, who said whenever he needs to “get grounded,” he spends a few days in the woods with Bill – at a much-upgraded camp at Thoroughfare Brook.

“He’s my go-to guy. I really value his insight,” McNulty said. “We’re always comfortable sitting down and talking openly about what needs to be done and how we can improve things.”

Over the years, Brown has seen a lot of foresters come and go, but says there is no one type of person who does the job well. It’s not a matter of personality. Very outgoing people succeed and so do “real private, quiet people. I myself am quite reserved, very reserved,” he said. “It takes someone who likes being in this environment. You have to get used to being alone a lot of the time . . . There are days when it’s cold or hot and the black flies are terrible. You get used to it. I don’t know if you enjoy it all the time, but you do get used to it.

A mature forester learns to take a long, long view of his work. Young foresters want to change the world – if not today then tomorrow.

“If they have a specific operation they’re looking at and they’re frustrated, they’re going to go back they next day and straighten it all out. And I say, ‘Just don’t get overly excited. Think of what we’re trying to do long-term here.’” Brown said. “That’s just part of maturing as a forester.”

Still, he laughs again when asked if the one trait every forester must have is patience

“I’m not super patient, but I can be stubborn,” he said. “There’s a subtle difference there.”

What makes an exceptional forester, he believes, is something that can’t be taught. Behind Brown’s businesslike approach is the conviction that forestry must be more than just a job.

“It becomes part of your life. It becomes part of you,” Brown said. “You have the opportunity to look back 10, 20, 30 even 40 years, and say, ‘Yeah, that is what we hoped for.’ And that’s a long way to look back.”

 

 

Logging is ‘a lot harder than it looks’

FARMINGTON – Chad Bamford found out something Monday that many have discovered before him: Logging is “a lot harder than it looks,” even, or perhaps especially, with high-tech equipment.

“There are so many buttons on it,” Chad said. “ But the technology they have nowadays is probably doubling production out there. It was good to get some hands-on experience. ”

Fortunately, Chad, a senior at Foster Technology Center in Farmington, didn’t have to get his first experience on equipment that cost $500,000. Thanks to Sen. Tom Saviello, R-Franklin, ReEnergy and Nortrax, students from Foster Tech, Mt. Blue High, Spruce Mountain, Rangeley and Mt. Abram had a chance to operate simulators that allowed them to get a feel for a forwarder and processor.

“I think it’s absolutely fantastic because this has given the kids and opportunity that we couldn’t give them without help,” said Dean Merrill, Foster Tech teacher.

It all started, Sen. Saviello said, when he and Sen. Troy Jackson, D-Aroostook, were working on a bill on bonded labor last year.

“I began to realize that we weren’t doing a good job educating our young people to get them out there on the new equipment,” Saviello said. “We do a great job when you’re talking about skidders and chainsaws, but the next level of equipment – the sophistication of computers and everything else – they aren’t really getting to see.”

back to newsletterNortrax, the area’s John Deere Construction and Forestry dealer, made the simulators available from Monday through Wednesday to area professionals as well as students. The simulators are portable and can be programmed to simulate several pieces of equipment, including other kinds of machines, such as excavators, said Bud Iverson of Nortrax. The large simulator costs about $150,000 and the smaller one $90,000.  An operator would probably need from 100 to 150 hours of training on a simulator before moving on to actual logging equipment.

Sen. Jackson, who is a logger, said the simulators are “absolutely helpful. They let people understand what it’s like to do mechanical harvesting nowadays. It also shows people whether they’ll have an aptitude for it, because you never know really until people actually start operating whether they’re going to make good loggers or not.”

The event was planned with the school by Sen. Saviello and ReEnergy Holdings, a renewable energy company that owns four biomass-to-energy facilities in Maine.

Without ReEnergy, Saviello said, “this wouldn’t have happened. They were phenomenal. They stepped up when I told them about my dream and here we are with two simulators in there running and the students just having a ball. “

For ReEnergy, the event was an investment in the future.

“ReEnergy relies on folks who work in the forests to supply 1 million tons annually of forest-derived biomass – more than 33,300 truckloads – just here in Maine,” said Eric Dumond, ReEnergy’s Wood Procurement Manager for Maine. “The simulator is a mechanism to help attract young people to our industry and let them know that working in the woods is not what it used to be. In many ways, today’s high-tech forest harvesting equipment taps into the same kinds of skills that students use to operate popular game devices.”

There was much discussion this week about how to make simulators available to students at Maine’s four remaining CTE (Career and Technical Education) forestry programs in Houlton, Farmington, Norway and Mexico. Sen. Jackson thought a bond issue might be possible. Others hoped Maine’s community colleges and the forest products industry would get involved.

“The need is there, but it’s difficult for contractors to create an environment to train people,” said Pat Sirois, SFI director. “The equipment is just too complicated. The real issue in terms of training is being able to afford to put people in a seat to get a sense of how this equipment works. We need to find a way to do this.”

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