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This week was a quieter one for MFPC at the State House, providing a bit of preemptive relief from what looks to be a busy second session. That being said, a quiet week still entailed monitoring at least 10 bills and the Environment and Natural Resource Committee's Triennial Water Quality Review.

On Monday, the MFPC signed on to a coalition letter to the Environment and Natural Resources (ENR) Committee opposing LD 1870, "An Act to Establish a Climate Superfund Cost Recovery Program to Impose Penalties on Climate Polluters." The Committee took up the bill on Wednesday and have scheduled another work session for Wednesday, January 21 at noon.

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On Tuesday, the Judiciary Committee held a work session for LD 1761, "An Act to Prohibit Indemnification Agreements." This bill was introduced last year in the HCIFS and went through the committee process before being reassigned to the Judiciary Committee. Our members took a variety of positions on this consequential legislation, so MFPC remained neutral. Our "Neither For Nor Against" testimony focused on scenarios for the committee to consider as they worked the bill. The Judiciary Committee unanimously voted "Ought Not to Pass", but encouraged proponents to bring the bill back in the future with a narrowed scope.

Also on Tuesday, some of our staff attended the Department of Agriculture, Conservation & Forestry's Commissioner's Luncheon and Annual Agricultural Trades Show and were pleased to have the opportunity to chat with members, policymakers, and others about the importance of the forest products industry.

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In regulatory news, the Department of Environmental Protection (DEP) presented the recommendations of the Board of Environmental Protection (BEP) to the Environmental and Natural Resources (ENR) Committee at the Legislature regarding the Triennial Review of Maine’s Water Quality Classification System and Related Standards.



Upgrading either river prematurely would have significant and irreversible ramifications on all industrial and non-industrial dischargers.

For more information, see last week's newsletter that is linked here.

The ENR Committee will meet on Wednesday January 21, at 10:00 to discuss a committee bill on the basis of the report.

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PLEASE JOIN US IN STRONG SUPPORT OF LD 2044

As you will see listed below, on Tuesday the Tax Committee will consider LD 2044, "An Act To Allow For The Transferability Of The Biofuel Production And Renewable Chemicals Tax Credits." MFPC strongly supports this bill, which would retool an existing tax incentive that has not yet been utilized in a way that would make it more beneficial for where we are at in establishing biofuel manufacturing today.

Currently, there are three companies that have expressed interest in establishing a biorefinery in Maine (Castlerock in Millinocket, Biofine in Lincoln and DG Fuels in Limestone). These projects are currently in the capital raising phase, which makes this legislation timely and important.

If successful, the proposed biofuel projects in Lincoln and Millinocket alone would provide additional diversity for our heritage industry, with demand equal to approximately 35 truckloads of wood per day in a region that has suffered from the loss of multiple mills. 

Our testimony is linked here for those who would like to learn more.

We hope that you will consider joining us, or submitting testimony electronically, in strong support of LD 2044.

Details are provided below, and as always, please reach out if you need assistance.

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There are a number of worthy bond requests this session, including the CLT bond and the Ag and Forestry bond listed on the schedule below. Members are encouraged to consider submitting testimony for all related bond issues, if they are so inclined.

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As always, if you have any questions, please don’t hesitate to reach out. Thank you all for lending your help and expertise so far this session. 

Best,

Krysta West and Ellen Parent

Maine Forest Products Council

The bills enacted by the First Special Session of the 132^nd Legislature that were held by the Governor and returned without her signature became law on Sunday, January 11, 2026 and have now been chaptered. You may find these chaptered laws here:

https://legislature.maine.gov/ros/LawsOfMaine/#Law/132/R2/ACTPUB/539.

The general effective date for these laws, unless they are emergencies or a later effective date is specified in the law, is 90 days following adjournment of the Second Regular Session of the 132^nd  Legislature.

Bills scheduled for a public hearing

Public hearings are livestreamed and archived here on the Legislature's Website. Testimony will be accepted in-person, via Zoom or in writing. Committee meeting guidance for public/interested parties can be found here.

To sign up to testify via Zoom or submit written testimony, click here.

LD 2044 - "An Act To Allow For The Transferability Of The Biofuel Production And Renewable Chemicals Tax Credits"

Public Hearing in TAX on Tuesday January 20, 2026 @ 1:00 PM in State House, Room 127

MFPC Position: Strong Support

This bill provides for the transfer of the biofuel production and renewable chemical tax credits to 3rd parties.

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LD 2094 - "An Act To Authorize A General Fund Bond Issue To Support Maine's Agricultural And Forestry Sectors"

Public Hearing in AFA on Tuesday January 20, 2026 @ 1:00 PM in State House, Room 228

MFPC Position: Monitor

The funds provided by the bond issue, in the amount of $40 million, will be used to support the agricultural and forestry sectors in the State. This bond includes $24 million for the Maine Agriculture, Food and Forest Products Investment Fund with $12 million designated for forestry, $4 million for milk producers and $8 million for all other agricultural producers.

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Bills scheduled for a work session

Work Sessions are livestreamed and archived here on the Legislature's Website.

LD 191 - "An Act To Support Maine Businesses By Establishing A Pass-through Entity Tax And Tax Credit"

Work Session in TAX on Wednesday January 21, 2026 @ 10:00 AM in State House, Room 127

MFPC Position: Support



This bill establishes, for tax years beginning on or after January 1, 2025, a pass-through 15 entity tax on the income of partners and shareholders of S corporations to permit certain 16 entities to elect to pay Maine income tax at the entity level. The effect of this is to allow a 17 member of a pass-through entity a credit of 90% of the member's share of Maine income taxes paid as a pass-through entity.

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LD 1737 - "An Act To Ensure The Future Of Maine's Sporting Camp Heritage"

Work Session in HHS on Thursday January 22, 2026 @ 10:00 AM in Cross Building, Room 209

MFPC Position: Support

This bill establishes a separate license for a commercial sporting camp that is different than the existing license for a recreational camp or sporting camp. The bill defines "commercial sporting camp." Under the provisions of the bill, the Department of Health and Human Services may not require a commercial sporting camp located in an area without a municipal water supply to install sprinkler systems or to make upgrades or improvements to existing plumbing systems or septic systems as long as those plumbing and septic systems are operational. The department may not require an applicant for a license to demonstrate compliance with any other state laws except for compliance with the licensing requirements. The bill provides that a commercial sporting camp must qualify to serve meals and may not be prohibited from serving or catering meals to the general public if the camp meets the requirements of a Class A restaurant. The bill also makes a commercial sporting camp eligible for a separate moose permit drawing.

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LD 1870 - "An Act To Establish A Climate Superfund Cost Recovery Program To Impose Penalties On Climate Polluters"

Work Session in ENR on Wednesday January 21, 2026 @ 12:00 PM in Cross Building, Room 216

MFPC Position: Opposed

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. An entity is assessed a cost recovery demand only if the department determines that the entity's products were responsible for more than one billion metric tons of greenhouse gas emissions. Cost recovery payments received by the department are deposited into the Climate Superfund Cost Recovery Program Fund to provide funding for recovery of the costs to develop and implement the program and fund and for climate change adaptation projects in the State, which the department is directed to prioritize through the adoption of a resilience implementation strategy and to ensure that at least 35% of the funds are used for climate change adaptation projects that benefit low-income persons with environmental justice concerns.