Congressional Delegation Updates

Innovation is Fueling Maine’s Forest Products Industry

Maine’s forest-products industry is entering a new era with new products that combine the traditional basis of our rural economy with technological innovation.

This progress took a major step forward this fall at the University of Maine. Using the world’s largest 3D printer, UMaine’s Advanced Structures and Composites Center produced the world’s largest 3D printed boat and also produced a 3D printed boat mold consisting of wood and corn fibers. The boat is currently the world’s largest 3D printed object of any type. Guinness World Records confirmed these unmatched achievements.

This event was a wonderful preface to National Forest Products Week, which ran from Oct. 21-26. It was a time to celebrate both our heritage and a bright future exemplified by the exciting UMaine project. The biobased, cutting-edge boat mold, developed alongside Hodgdon Yachts, proved that wood can be an essential ingredient in this advanced manufacturing process. This

CHP Creates New Opportunity for Forest Industry

As the most forested state in the nation, Maine is blessed with immensely valuable natural resources. Our forests are the economic and cultural hub for communities across Maine, creating thousands of jobs that have supported families for generations and bringing millions of dollars to rural parts of our state. This industry has faced hard times, but it’s trending upwards in a real way. We need to build on this growth, by finding any opportunity to increase the efficiency of this sector.

Fortunately, our blessings don’t end with our woodlands. Maine’s forest products industry has a dedicated workforce and partnerships with key research institutions that are driving innovations that have the potential to turn previously untapped resources into new economic opportunities. One of the most promising new technologies is Combined Heat and Power, or CHP, which helps capture the heat produced through the generation of electricity and convert it into additional energy. The technique (also known as cogeneration) is very useful in wood mills, as demonstrated by Maine Woods Pellet in Athens and its partner Athens Energy. The pellet mill is currently using the CHP equipment at Athens Energy to turn the mill’s residuals into energy it sells back to the grid, and then employing the resulting steam as a means to both heat the facility and dry pellets manufactured at the plant. By maximizing the resource and increasing efficiency, the pellet mill is able to achieve serious savings. The technology is also in place at Robbins Lumber in Searsmont, where I held a field hearing of the Senate Energy project provides exciting new opportunities for Maine’s forest-products industry. As the 3D printing revolution grows, wood will be in greater demand for its proven properties as a strong, durable, and recyclable material. and Natural Resources Committee focused on CHP in September 2017.

UMaine’s project is a collaboration between the Oak Ridge National Laboratory in Tennessee, which is a global leader in the additive manufacturing techniques that form the basis of 3D printing, and UMaine, a global leader in bio-based composites research and development. Together, these two research powerhouses will improve environmentally responsible advanced manufacturing throughout America and strengthen the forest-products industry right here in Maine.

I worked hard to secure $20 million in federal funding for this exciting collaboration this year. The Appropriations Committee on which I serve has included another $20 million for the next fiscal year. In addition, I championed the $454,000 federal grant awarded to UMaine to establish the Mass Timber Commercialization Center. Our University and our forest-products industry have the vision and expertise to discover innovative ways to develop new products from our natural resources.

Throughout Maine’s history, our forest-products industry has helped drive local economies and sustain rural communities. As the economy changes, this vital industry is evolving to meet the challenges of the 21st century.

CHP supports Maine’s forest economy supply chain and creates important markets for forest product residuals, and UMaine is one of the nation’s leaders on this technology. In fact, it is one of only 10 designated CHP Technical Assistance Partnerships (TAP) in the nation, and the only center of its kind in New England. If you know of a facility that could benefit from these sorts of technology, there are folks at UMaine who can help.

In Washington, I’m working to support CHP technology however I can, including by allowing UMaine to build on the good work it’s already doing. I’ve joined Senator Susan Collins to introduce the CHP Support Act, which would fund TAPs like the one at UMaine so our state can continue to make strides that increase efficiency and decrease costs. And I’ve got good news to share: earlier this month, the Senate Energy and Natural Resources Committee passed our bill with broad bipartisan support. This is a positive step, but there’s more work to be done. I’ll keep pushing to get it over the finish line.

Thank you all for your work to support Maine’s vital forest economy, and communities across our state. Wishing you the best this holiday season!

Update from Maine’s First District Congresswoman Chellie Pingree

As the most forested state in the nation, Maine is home to many companies that grow and harvest commercial timber. Generations of Mainers have worked in logging and forestry, with many starting their own companies and finding success in family businesses. And as you know, these companies provide good-paying, steady work that we are all proud of.

As a farmer, I find that there are a lot of similarities between farming and logging. Both industries are largely supported by small family operations. And of course, both farming and logging are outdoor careers that attract passionate people who enjoy working with soil or trees.

However, in the eyes of the federal government or at least the Treasury Department forestry businesses aren’t considered to be “farming” businesses, even though both are inherently agricultural.

This oversight in categorizing the tax status of logging businesses is hurting Maine’s forest-products economy. In the Tax Cut and Jobs Act, passed and signed

Winter Update 2019

Many of our communities in Maine are built around forest products and the small businesses and good jobs they help create. That’s why I look for ways we can help Maine loggers succeed.

I’ve spoken to Maine loggers one-on-one about some of the ways the industry is changing, and some of the unique challenges they face nowadays. They’ve told me that they’re struggling to find enough trained workers, need improved infrastructure, and expanded markets for Maine wood fiber.

Supporting the logging industry is a bipartisan issue, so I’m working with Minnesota Republican Congressman Pete Stauber to lock in a new market for wood fiber. We’re pressing the Environmental Protection Agency to qualify lower-grade wood like wood scraps and salvage lumber as “renewable biomass” under the Renewable Fuel Standard (RFS).

This is important for our loggers. Because the into law in 2017, the Treasury Department limited the ability of businesses to deduct their interest expense if their annual gross receipts exceeded a set threshold. Though agricultural industries were given an exception and are allowed to deduct their interest expenses, commercial timber is not explicitly included in those exceptions so it’s unclear whether timber fits in the category of “agricultural.” Smaller timber harvesting companies have been hurt the most with this unclear regulation and they’re the ones who could benefit from clarification or a change in policy the most.

I’m hoping to see Treasury Secretary Steven Mnuchin clarify this oversight and issue a rule that allows timber companies to take the agricultural deduction outlined in the 2017 tax bill. Treating logging entities differently than their other agricultural counterparts creates a disadvantage for private forest landowners and timber harvesting companies. I want to make sure Maine’s small timber-related companies are included in the exception for interest deduction so we can level the playing field and see economic growth.

Commercial timber is a capital intensive and low margin business. Any tightening of regulations, like limiting interest expensing, makes it more difficult to operate your business. No matter the issue whether it’s taxes, jobs, healthcare, or the trade war know I’m working in Washington to fight for you, Maine’s workers and small businesses.

EPA’s regulations about lower-grade wood are unclear, that means that sometimes perfectly good Maine wood fiber is turned away by the folks generating biomass energy. That’s a missed opportunity for our logging industry.

Biomass is an important market that makes use of products that need to be removed from our forests to keep them healthy. It helps our loggers, makes our forests healthier, and helps us lower carbon dioxide emissions. I’m always looking for opportunities to help Maine’s loggers. If you have a suggestion, please reach out. We want to hear from you. As always, it’s my honor to serve you in Congress, and I look forward to hearing from you soon.

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