Governor Mills Announces Decision on LD 307

Governor Janet Mills today notified the Maine Legislature that she has vetoed L.D. 307, An Act to Establish the Maine Data Center Coordination Council and Place a Temporary Limitation on Certain Data Centers.

In her letter, the Governor said she supports a temporary moratorium on data center projects, and would have signed LD 307 if it included an exemption for a project now underway at the former Androscoggin Mill in Jay.

"A moratorium is appropriate given the impacts of massive data centers in other states on the environment and on electricity rates. But the final version of this bill fails to allow for a specific project in the Town of Jay that enjoys strong local support from its host community and region," Governor Mills wrote to the Legislature. "The 2023 closure of the Androscoggin Mill dealt a devastating blow to the Town of Jay and its surrounding area. As a long-time resident of Franklin County, I know well how critical the mill was to generations of working families, and how important it is - and how challenging it has been - to promote reinvestment and job-creation at the former mill which is a brownfield site. After prior redevelopment efforts failed, the Town of Jay worked for two years on a $550 million data center redevelopment project to finally bring jobs and investment back to the mill site."

A 2020 boiler explosion at the Androscoggin Mill - followed by the mill's closure after the departure of Pixelle Specialty Solutions in 2023 - eliminated hundreds of good-paying jobs and dealt a significant blow to the local economy. At the time of closure, the mill accounted for an estimated 22 percent of the Town of Jay's tax base. In recent weeks, the Town of Jay, the Franklin County Commissioners, and the regional Chamber of Commerce have written to Governor Mills in support of the project.

"This project - which is now under contract and which has received several permits - is expected to create more than 800 construction jobs, at least 100 high-paying permanent jobs, and would contribute substantial property tax revenue to the Town of Jay. The project developers are committed to revitalizing the mill site by utilizing its existing industrial buildings, water, and electrical infrastructure to avoid the adverse impacts cited in the bill, including impacts to ratepayers," continued the Governor.

In her letter, the Governor informed the Legislature that she intends to issue an executive order establishing a council to examine the impact of data centers in Maine, as called for in LD 307.

"I believe it necessary and important to examine and plan for the potential impacts of large-scale data centers in Maine, as the use of artificial intelligence becomes more widespread. Given the serious conversations about data centers here and around the country, I believe this work should commence without delay," the Governor wrote.

The Governor also announced today that she has signed LD 713, which will prohibit data center projects from State of Maine's business development tax incentive programs.

Also today, Governor Mills informed the Legislature that she has vetoed LD 1911, An Act to Automatically Seal Criminal History Record Information for Certain Crimes.

Read the Governor's veto letters regarding LD 307 and LD 1911 are attached.