Congressional Updates

Congressional Delegation Updates

Wood Pellets: A Growing Opportunity for Maine’s Forest Products Industry

With inflation at a 40-year high, the soaring cost of virtually everything, from gasoline and diesel to groceries, is a growing crisis that affects families across our nation. I know that the skyrocketing price of energy is causing particular hardship for your industry by increasing costs at every step of the supply chain. Mainers are also concerned about the rapidly rising cost of home heating oil. As of early June, the average price per gallon was $5.42, more than double what it was a year earlier. More than 60 percent of Maine homes use fuel oil, and a typical family will spend about $2,500 more per year at current prices. Heating oil now costs $39.08 per million Btu. In contrast, wood pellets provide that same amount of heat for just $18.91. The only heat source that comes in at a lower cost is cord wood. Wood energy is a growing part of the overall forest economy, creating good jobs and new opportunities for our forest workforce. I have long supported the use of wood energy to counter the effects of climate change and to improve our environment and our forest products industry. Pellets provide a

market for low-grade, low-value wood that landowners routinely remove to promote healthy forests. Now, more than ever, wood pellets can provide significant relief to the budgets of households and businesses. I recently joined with Sen. Angus King on bipartisan legislation that would incentivize the use of energy-efficient biomass heaters in homes and businesses instead of relying on fossil fuels. In 2020, after years of advocacy from the Maine delegation, a 26 percent tax credit available through the end of 2023 for highly efficient residential wood heating systems became law. This Congress, the updated Biomass Thermal Utilization (BTU) Act would provide tax credits for capital costs Sen. Susan Collins incurred in commercial and industrial installations, and it would also extend the residential credit passed last year through 2028. Biomass energy is sustainable, responsible, renewable, and economically significant as an energy source. Many states, including Maine, are already relying on biomass to meet their renewable energy goals. The carbon neutrality of biomass harvested from sustainably managed forests has been recognized repeatedly by numerous studies, agencies, institutions, and rules around the world. As inflation takes a heavy toll on your industry and household budgets, wood pellets offer an opportunity to boost demand for wood products and lower heating costs for homes and businesses. I will continue to support federal policies to advance the use of renewable biomass that is so important for our energy future.

Taking On Inflation and Supporting Maine Families

From gas tanks to groceries, working people across Maine are struggling with rising prices, sluggish supply chains, and a higher cost of living. While these rising costs are mostly due to global factors outside of any one person's (or president's) control, it's clear that Congress can, and must, take action that helps lower costs for Maine people without choking our economy. First, we need to address the supply chain crisis that is driving rising costs. One way to do that is by passing the bipartisan U.S. Innovation and Competition Act, legislation that would create a new office to closely monitor the status of the nation’s supply chain and respond to disruptions. The bipartisan legislation would also provide billions to prevent shortages of goods and boost American manufacturing –especially the high-tech products that are used in nearly every 21st century machine including modern logging and lumber processing machinery. This is a win-win that would make us less reliant on foreign supplies and create new American jobs. We also need to make sure that prices aren't rising because of a lack of competition in key industries. In the meatpacking industry for example, only four companies control almost the entire market – meaning both that one problem in one company can have widespread impacts, and this small group has too much control over setting the market price. Congress must update our antitrust laws so that prices remain stable and to protect the independence of small businesses like the family and private owned logging businesses across our state. Addressing inflation also includes confronting workforce issues. Right now, as I’m sure you’ve seen, labor shortages are placing a burden on small businesses that have no choice but to pass those costs on to consumers. We simply do not have enough people to fill the jobs that our strong economy has created; there’s roughly two job openings nationwide for every American seeking work. That is why I strongly support increased investment in workforce training programs to bring folks into high-skilled fields like yours, as well as a comprehensive immigration policy that will bring new, legal workers into our economy. Finally – perhaps where Maine people are feeling price rises the most – we need to find ways to lower costs at the pump for consumers and businesses. These prices represent high demand and insufficient supply, which is why I've been urging top oil and gas executives to focus on production that will drive down costs rather than the stock buybacks that line their own pockets. In the long term, we need to take significant steps to transition away from these fuels and towards clean energy sources here at home not subject to the wild swings we’ve seen this year in oil and gas, including wood waste biofuels. There are a lot of moving pieces, but I believe there are real ways that Congress can work to fight inflation. It's one of the most pressing issues facing Maine people, and I'll be pushing for significant action in the weeks ahead.

Sen. Angus King

Update from Maine’s First District Congresswoman Chellie Pingree

As Chair of the House Appropriations subcommittee on Interior, Environment, and Related Agencies, which oversees funding for the U.S. Forest Service, I helped write the Fiscal Year 2022 Appropriations Bill recently signed into law by President Biden. This funding bill made milestone investments in programs which promote the use of small diameter timber and innovative wood products that utilize sustainable forestry, including $12 million for the Community Wood Energy Program and $20 million for Wood Innovation Grants. As Maine’s wood industries start benefitting from the funding included in the newly signed spending bill, I’m working to build on those successes in the next fiscal year. For weeks, House Appropriations subcommittees have been holding budget request hearings as we begin to draft the Fiscal Year 2023 Appropriations bill. I am pleased that President Biden’s latest budget request for the Forest Service includes significant investments in our forest communities, climate science, the promotion of

healthy forests, and more. I recently chaired a Fiscal Year 2023 budget hearing with U.S. Forest Service Chief Randy Moore, where I spoke with him about the progress the Forest Service has made in expanding innovative wood product markets, and how the federal government can further support job retention and growth in our wood industries. We know one of the largest obstacles to healthy forests and increased carbon sequestration is Rep. Chellie Pingree the increase of high-intensity wildfires which are affecting our landscapes. I told Chief Moore about my concerns that this year looks to be another severe year for wildfires and how we must work together to get ahead of this threat. Although my subcommittee has provided significant investments to prevent, combat, and recover from these wildfires and the Infrastructure Investment and Jobs Act has further provided supplementary funding, I know much more needs to be done. Consequently, I will be focused on how the federal government can better address gaps in our response to wildfires. We will continue to have appropriations hearings throughout the spring and summer, and as your First District Representative, I assure you I will continue to push for more federal support for Maine through my role as Chair on the Interior Subcommittee.

Logger’s Voice Summer Update

I wanted to share some good news for several companies in Maine’s forest products industry. Earlier this month, the United States Forest Service (USFS) awarded almost $2 million in grant funding to both Robbins Lumber in Searsmont for an innovative value-based scanning program and Standard Biocarbon Corporation in Enfield for a biomass energy system. Investments in the forest economy like these help support the growing market for Maine wood fiber, healthy forests, and our move towards renewables. They also illustrate the innovation happening in our district. Congratulations to the teams at Robbins Lumber and Standard Biocarbon. If we can help you or your business apply for grants or awards like these, my team and I stand ready to work with you. If you’d like more information, please shoot our logger support team an email at MELoggerSupportTeam@mail.house.gov. We should get back to you quickly. Outside of the woods, I know that times are tough right now. Even if it is not related to your work, my team and I are here to help. Please let us know if we can help you solve problems you or your family is having with Medicare, Social Security, the VA, or other federal programs or agencies.

Rep. Jared Golden

You can reach my staff at: · Lewiston: (207) 241-6767 · Caribou: (207) 492-6009 · Bangor: (207) 249-7400 You can also send us an email at: golden.house.gov/contact/email-me

Professional Logging Contractors of Maine

108 Sewall St. P.O. Box 1036 Augusta, ME 04332