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Thanks to our sponsors of this event, Sappi and LP, and to the policy makers who joined us for this lively discussion.
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On Wednesday, we spent the morning with DEP staff at a stakeholder meeting to discuss the initial draft material types list. This list is an important component of the program, as it breaks out materials by type with designations for the recyclability, reusability and compostability of each material. Materials that are not designated as readily recyclable will be faced with higher fees throughout the program.
In our analysis (see graphic and link below), we found that Maine's categories lack clarity and continuity with other state programs, and it wrongfully designates molded pulp, a material widely recognized as a sustainable alternative to plastic packaging, as non-recyclable and non-compostable.
Other paper categories are not possible to evaluate at this time due to unclear language used to describe Maine's categories (the list below has been broken out into category by California's designations). The list also fails to recognize the compostability of any paper material type, even though many are compostable and can be verified by independent certification programs to industry standards.
While the list will go through another stakeholder process before the official comment period, it is our first glimpse into a program that is intended to drive innovation and demand for sustainable packaging products, which is a mission that we can all get behind. Unfortunately, from what we now know of the program , it is far more likely to have a chilling effect on our industry, and manufacturing in Maine as a whole, threatening investments that are necessary to meet our society's growing demand for products manufactured from our sustainably managed forests.
Next week we will have our first opportunity to make some targeted changes to Maine's new EPR law (more on that to come).
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Also on Wednesday, the Council joined a coalition in support of LD 191, "An Act to Support Maine Businesses by Establishing a Pass-through Entity Tax and Tax Credit." We also presented testimony in support of LD 203, "An Act to Provide an Income Tax Credit for Employer-supported Child Care" and LD 1555, "An Act to Establish an Employer Tax Credit for Qualifying Child Care Costs." The Maine Morning Star covered this hearing here.
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On Thursday, the Council was joined by a number of members from across multiple sectors of our industry in strong opposition to LD 1529, "An Act to Enhance the Protection of High-value Natural Resources." This bill fails to recognize Maine's position as a national leader in third-party certification for forest sustainability. Roughly half of Maine's forested land - 8.5 million acres, is certified to either the SFI or FSC certification standards, which have requirements above and beyond state regulations to both identify and conserve high value forests types which include late successional and old growth forests. Further, as part of the requirement of the SFI certification program to fund research to advance forest industry sustainability goals, landowners helped to fund the very research that this bill was based upon.
This bill ignores all of the important collaborative efforts that are underway, and it includes a completely unrelated objective to rezone upwards of 1,300 remote lakes and ponds without going through the LUPC process that is clearly outline in the Comprehensive Land Use Plan that includes stakeholder and public input. Such a move could have unintended consequences, such as the mandated loss of public access.
LD 1529 has the real potential to change the entire dynamic of LSOG conservation from one of collaboration to one of hostility and litigation. It should be swiftly defeated.
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Now that's all for this week. Next week will be another important one with Wednesday being especially busy. The Labor Committee will hold a public hearing on roughly one dozen bills pertaining to Paid Family Medical Leave. This hearing will take place at 1:00 pm in Cross Office Building room 202. We aren't going to list all of the PFML bills off below, because there are many and members of the public will only be provided with three minutes to speak. Here are a few suggested talking points for our members to consider, although we are sure that you will each have more to add to the discussion.
- Any effort to remove Maine's undue hardship provision must be rejected.
- The fund should be protected from being swept for other uses
- Maine's employers already face workforce shortages. This program will make it very difficult to adequately and safely staff facilities.
- Maine's program is the most benefits-rich program in the country. It should be made voluntary and brought more in line with other programs.
- Maine's program is ripe for abuse and it lacks necessary safeguards.
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EPR Program must be reformed to avoid a cascade of new taxes on manufacturers that invest in Maine
Our industry has an important opportunity to vocalize our legitimate concerns at a public hearing this Wednesday.
Please strongly consider attending the public hearing to deliver comments, either in person or online. If you're unable to attend the hearing, please provide us with your comments in strong opposition to this bill that we can deliver along with our testimony.
WHO: Environment and Natural Resources Committee
WHAT: Submit testimony online or join us in testifying in strong support of LD 1423, "An Act to Improve Recycling by Updating the Stewardship Program for Packaging"
WHEN: Wednesday, April 23 1:00 PM
WHERE: Cross Office Building, Room 216 or sign up to testify online
Maine's new Extended Producer Responsibility program is drafted in a way that punishes manufacturers that invest in Maine by defining them as "consumers" within the program. Because of this flaw, anything manufactured in Maine will be taxed with new fees on packaging at every step through the supply chain before it reaches the end consumer. Products brought into the state, however, will be faced with just one fee, putting our businesses and economy at a significant disadvantage.
LD 1423 would make this important change, along with other noteworthy goals that include:
- Amending the definition of "post-consumer recycled material" to fully recognize the paper industry's efforts to recycle "broke" and defective materials into value-added products.
- Clarifies that "toxicity" means, with respect to packaging material, the intentional addition of a metal or chemical.
- A California-style off-ramp that exempts materials from the program that achieve high benchmarks for recycling.
- Clarifies who a producer is so it’s clear who the producer paying is based on various scenarios.
Other priorities have also been included in this bill, but these are issues that we hope can find some level of agreement.
If done right, EPR programs can create a strong incentive for producers to shift to readily-recyclable alternatives, which are often times paper-based. With the support of our state and federal government, UMaine and private industry, Maine is fortunate to be at the forefront of innovation on a host of materials that can help meet the needs of our society while supporting sustainable forestry and Maine's rural economy.
Unfortunately, in current form, the EPR program will serve as an anchor rather than a buoy. We need to see targeted changes now to protect our heritage forest industry.
PLEASE STAND WITH US IN SUPPORT OF LD 1423.
That is all for now. There will undoubtedly be more on the agenda next week than is included below. We will keep you posted to the best of our ability.
Thank you and have a nice Easter weekend.
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