FROM BUDGET BATTLES TO ENERGY WINS: INSIDE MAINE’S HIGH-STAKES LEGISLATIVE SESSION

By Megan Diver

Legislators in Augusta were hoping to complete their work for the session on or around June 18, which was the statutory adjournment date for the First Regular Session of the 132nd Legislature. The statutory deadline did not apply this year, though, as the majority Democrats technically adjourned the legislative session back in March after passing a straight party-line $11.3 billion budget for fiscal years 2026 and 2027. Non-emergency laws (those not receiving 2/3rds votes of approval by the House and Senate) do not take effect until 90 days after the Governor signs them into law, so the March adjournment ensured that the party line budget proposal would be law by the beginning of the State fiscal year on July 1.

Immediately after the "adjournment," Governor Mills called the Legislature back in for a "special" session to complete its work. This previously unusual maneuver has become commonplace under the Mills Administration, which has used this tactic to enact the past three two-year State budgets.

Lawmakers still hoped to wrap up the legislative session on the targeted date.

BUDGET & CIGARETTE TAX

Lawmakers still hoped to wrap up the legislative session on the targeted date. However, many key issues remained to be resolved until the very last days of session, namely a "Part 2" budget proposal to fund shortfalls in the MaineCare budget. Governor Mills has proposed a $1 per pack cigarette tax increase to help offset the deficit within the program, which MEMA opposed aggressively and worked with a coalition of partners within the association, as well as retailers and other tobacco interests, who all lobbied against the $80 million tax increase and have coordinated grassroots and advertising campaigns. As expected, this was one of the last items the Legislature dealt with. Unfortunately, the Appropriations Committee recommended a $1.50 tax on tobacco products, which Republicans opposed, but in the end, the opposition wasn't enough to stop the majority party from passing the budget.

Every late night, every conversation, every call—it all made the difference. We protected Energy Choice." "

ENERGY CHOICE

MEMA's priority this session was L.D. 556, "An Act to Preserve Heating and Energy Choice by Prohibiting a Municipality from Prohibiting a Particular Energy System or Energy Distributor". This bill, sponsored by Senator Matt Harrington (R-Sanford), received bipartisan support from the State and Local Government Committee and was tabled in the Senate for several weeks without any legislative action. MEMA engaged with our member companies, enlisted social media campaigns, produced handouts for legislators, and utilized earned media, such as radio appearances and op-eds, to make our case for Energy Choice. Votes in the Senate and House were close and took place over several weeks. Each vote was a nail-biter, but WE DID IT! The hard work, the conversations, the late nights, and the effort from each and every one of MEMA's member companies made the difference! (see more on page 16).

SUNFLOWER BIOFUEL STUDY

Senator Trey Stewart (R-Presque Isle) filed legislation on MEMA's behalf that would study the feasibility of biofuels produced from sunflowers. L.D. 1297, "Resolve, to Establish the Committee to Study the Use of Sunflower Crops to Produce Biofuels," pulls together stakeholders from our association, the potato industry, the university, and others to investigate this important issue. After initial votes of approval, the bill was placed on the Legislature's Special Study Table. This bill was carried over until the next legislative session, beginning in January 2026.

LIHEAP PROGRAM

MEMA continues to have conversations with legislators on ways to improve the current LIHEAP program for vendors. MEMA will convene a working group over the summer between members, legislators, and the Maine State Housing Authority. Additionally, the Government Oversight Committee is currently looking into the LIHEAP program and will continue to meet throughout the summer. MEMA will remain engaged through this process. MEMA will be engaging members on this issue to create a subcommittee, and we will be looking to engage company participants to create recommendations and potential legislation for the next legislative session.

OIL TERMINAL

L.D. 1507, "Act to Require General Public Notification of Oil Terminal Facility Transfer Activities," sponsored by Representative Matthew Beck (D-South Portland), had a lengthy public hearing at which MEMA and many MEMA members testified in opposition. This bill has been carried over into the Second Regular Session of the 132nd Maine Legislature. MEMA has been working with our terminal members, the Portland Regional Chamber, and others on this issue since the Fall of 2024 and will continue to do so until a resolution is found.

CLIMATE SUPERFUND

L.D. 1870, "An Act to Establish a Climate Superfund Cost Recovery Program to Impose Penalties on Climate Polluters." Sponsored by Senator Stacy Brenner (D-Cumberland), this bill would establish the Maine Climate Superfund Cost Recovery Program, creating a mechanism for certain fossil fuel companies to pay for climate change adaptation projects. Specifically, entities involved in extracting fossil fuels or refining crude oil between 1995 and 2024 would be assessed a cost recovery demand if they are responsible for more than 1 billion metric tons of greenhouse gas emissions. MEMA opposed this legislation, as well as a similar piece of legislation. The committee voted to kill one of the bills, but has carried over L.D. 1870 until the Second Session in 2026.

MEMA has been engaged in several other legislative bills this session. For a complete listing of bills that MEMA is tracking, or if you have any questions, please reach out to Megan Diver at mdiver@maineenergymarketers.com

Megan Diver is the Vice President of the Maine Energy Marketers Association