We kicked off the week on Tuesday with a nice acknowledgement of Sappi North America, first in the Senate and then in the House of Representatives, with a legislative sentiment recognizing its designation of “Large Business of the Year” by the Mid-Maine Chamber of Commerce. Thanks to Senator Brad Farrin and Representative Jennifer Poirier for sponsoring the sentiment, along with all of those who voiced their support for the company’s contributions to central Maine.
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On Wednesday, the MFPC testified in opposition to LD 2070, An Act to Prohibit Landfill Expansion Into Wetlands. The bill, intended to stop the expansion of the Juniper Hill Landfill in West Old Town, would prohibit any expansion of any landfill that alters a wetland, and would impact privately owned industrial landfills as well as state and municipal owned landfills. With between a quarter and a third of the state of Maine falling under the definition of wetland, this would dramatically limit the ability of the state to manage solid waste. Ross Nason from Sappi also testified in opposition to the bill. We will continue to be involved with the bill as the committee schedules the work session in the coming weeks.
Also on Wednesday, at Senator Stacey Guerin’s request, the IFW Committee voted to reconsider a bill that MFPC strongly opposes, LD 19, “An Act to Change the Definition of “Oversized ATV” in the Laws Governing the Registration of All-terrain Vehicles.” Senator Anne Carney (D-Cumberland), Rep. Jim Dill (D-Old Town) and Rep. Bill Bridgeo (D- Augusta) joined Senator Guerin on a new “Ought to Pass as Amended” report that would advance the handicap exemption for oversize ATVs alongside recent from the Public Access to Private Land report that are necessary to support law enforcement officers and the private landowners hosting more than 80% of the 6,000 mile statewide ATV trail system. The minority report would also advance the handicapped exemption from the original minority report.
These recommendations were developed through a working group established last year in statute with LD 1308, a bill that gained unanimous support of the Legislature. The process included extensive stakeholder engagement, public comment, data analysis and collaboration between three state departments (DIFW, DACF and DECD), large and small landowners, recreational user groups and others, and it presents a comprehensive set of recommendations to strengthen the access tradition by addressing systemic challenges, improving education, supporting landowners, and securing predictable long-term arrangements where appropriate. Strengthening enforcement of existing laws emerged as the report’s most critical recommendation.
The working group clearly advised on page 7 of the report against “any efforts to increase the current weight restrictions for UTVs” stating that it “would likely result in significant closures of hundreds of miles of trail, fragmenting the connected trail system that recreators enjoy today.” It goes on to say that “most of these trails are located on private land, and landowners typically receive no direct financial benefit despite bearing the risk of damage, liability and maintenance.”
Unfortunately, the majority of the IFW Committee ignored this important finding of the working group that they established, voting to increase the allowable weight of oversize ATVs by a staggering 950 pounds – an increase that would effectively end the statewide connected trail system that resulted from the 2020 ATV Task Force and that is enjoyed by approximately 80,000 ATV riders today.
The minority report would preserve the system by shielding landowners from the increased cost to fix inevitable environmental issues, such as sedimentation, runoff, rutting and the loss of gravel and top soil while advancing the working group’s “most critical recommendation” of strengthening the enforcement of existing laws that are currently being exploited by the very same groups that now seek to force a massive weight increase against the will of the landowners that host the trail system.
The Council is extremely appreciative of the votes of Senators Guerin and her colleagues that voted in favor of a thoughtful report that takes into account a great deal of work by the Departments and stakeholders. Please join us in thanking Senator Guerin, Senator Carney, Representative Dill and Representative Bridgeo for their support.
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On Thursday, the Taxation Committee passed LD 2044, An Act to Allow for the Transferability of the Biofuel Production and Renewable Chemicals Tax Credits with an “Ought to Pass As Amended” report with 11 to 1 in support of the measure. This bill originally proposed to provide for the transfer of the biofuel production and renewable chemical tax credits to 3rd parties. The committee adopted an amendment to allow this tax credit to be refundable, allowing businesses to fully utilize the incentive and to provide a much needed cash infusion as biofuel businesses work to get off the ground in the highly capital intensive startup stage.
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Join MFPC in STRONG OPPOSITION to Part O of the Supplemental Budget, the elimination of the BETR program
Finally, we are going to end this week’s update with a call to action. Next week, the Appropriations Committee will hold joint public hearings on LD 2212, which is the Governor’s supplemental budget. Part O of this budget would swiftly sunset the Business Equipment Tax Reimbursement (BETR) program, reducing reimbursements by 50% for tax year 2025 and completely eliminating the program from 2026 forward.
This dramatic cut and subsequent outright elimination would have a significant impact on approximately 60 forest products companies, retroactively cutting reimbursements by approximately $1.6 million last year and $3.1 million this year.
The proposed cut to FPI businesses is equivalent of the average wage for approximately 52 full time jobs, and this surprise program elimination strongly signals a change in policy to businesses that their investments are not valued and that our regulatory environment is unpredictable. Cancelling this existing tax benefit program would discourage businesses from investing in new and upgraded equipment, as there is no certainty that tax promises made by Maine government can be relied upon. As a capital-intensive industry, that is highly problematic, as continued investments are necessary for forest products companies to remain competitive and profitable in the face of increasingly difficult market conditions.
If you’re one of the 60 FPI companies that uses the BETR program, (and even you don’t) we highly recommend that you weigh in with testimony in strong opposition to Part O of LD 2122, either online or in-person.
The tax portion of the budget is scheduled for a public hearing on Thursday February 19 at 9:00AM in the Appropriations Committee. If you need assistance submitting testimony, or if you would like us to deliver your testimony alongside ours, please reach out to our team. Please also let us know if you intend to testify.