Testimony of Steve Taylor, Program Manager Environmental Health Strategy Center 565 Congress Street, Portland, ME, 04101 www.preventharm.org before the Joint Select Committee on Appropriations and Financial Affairs In SUPPORT of LD 842 February 23, 2012 Good afternoon. My name is Steve Taylor. I live in Topsham, and I am the Program Manager for the Environmental Health Strategy Center. EHSC employs seven people in offices in Bangor and Portland, and we are in the process of hiring two more. We generate more than $1 million in economic benefit in Maine every year. We’re part of the much larger nonprofit sector in Maine, which added $7 billion to Maine’s economy in 2005, accounting for 15% of the State Gross Product. i As a public health organization, we know that the greatest social determinant of good health is a good job. ii That’s why five years ago we started our Sustainable Economy Program, which works to create jobs and boost Maine’s economy by promoting the research and commercial development of environmentally healthy products. I am here today to speak in support of L.D. 842 (An Act to Authorize a General Fund Bond Issue to Create Jobs from Farms, Forests, and Manufacturing through Research and Sustainable Development of Maine’s Natural Resources; sponsored by Representative Hunt). We have previously testified in support of LD 225 and LD 409, which would also spur economic development by investing in Maine-based innovation through the Maine Technology Asset Fund. The best way to create jobs and stimulate economic growth is to leverage capital investment in research, development and commercialization of clean technology based on Maine’s natural resources. For every $1 that Maine invests in research and development (R&D), more than $10 is leveraged in private and other public investment. iii Public investment in R&D is a proven engine for economic development and job creation. iv We applaud Representative Hunt for proposing legislation specifically to fund clean, natural resource based technology development and commercialization. Environmental Health Strategy Center, Support of LD 842 - Committee on Appropriations, 2/23/12 Working with a consortium of Maine manufacturers and the University of Maine, the Environmental Health Strategy Center has raised $2.5 million in R&D funding to develop innovative technology to commercially produce bio-based plastics from the natural resources of Maine’s farms and forests. Here’s an example of the economic development potential. True Textiles, Inc. manufactures a fabric in Guilford, Maine made from a cornbased plastic called polylactic acid (PLA) that’s nontoxic, petroleum-free and compostable at the end of its useful life. This bioplastic could be made from Maine potato waste and wood chips. Attracting the capital investment to produce PLA in Maine from locally sourced biomass would create 150 new manufacturing jobs and support the creation of more than 600 related permanent jobs, plus spur 1,800 construction-related jobs. v Today, under new ownership, the Old Town Fuel & Fiber mill is up and running again with 200 workers back on the job. The mill is applying innovative technology developed by the University of Maine to extract sugars from wood in a way that preserves the fiber to allow continued pulp production. These sugars are the feedstock for making bio-based chemicals through an advanced fermentation process. Backed by a $30 million U.S. Department of Energy grant and significant private capital investment, Old Town Fuel & Fiber will construct a biorefinery to produce bio-based butanol, a fuel additive. This should mark the first major forest bio-product to go to market in the U.S. and offers a model of sustainable economic development in Maine’s pulp and paper industry. vi Public investment in research and development made this economic success possible. In addition to federal and private sector funding, the University of Maine was awarded $4.7 in MTAF bond funding for its Forest and Agricultural Bioproducts Technology Center. Continued state investment will boost development of bio-based materials in Maine. Confidence in the economic potential of bio-based materials led to the formation of a new trade association, the Sustainable Bioplastics Council of Maine, led by 45 members in 20 Maine companies. Another innovative Maine company, Cerealus Holdings LLC, has pioneered a nontoxic, biobased alternative to the toxic chemicals known as perfluorinated compounds (PFCs) used as grease-resistant paper coatings for food packaging. vii Opportunities for job creation and economic development through clean, natural resource based technologies abound. But they need critical infrastructure and R&D funding to succeed. To revive and expand our economy, Maine must invest strongly in innovation. We must also target research and development spending to those sectors in which Maine has the most sustainable advantages – such as natural resource based clean technologies. Conclusion In order to create jobs and improve Maine’s economy, this Committee and the Legislature should pass a research and development bond bill to replenish the Maine Technology Asset Fund to invest in commercializing clean technology based on Maine natural resources. 2 Environmental Health Strategy Center, Support of LD 842 - Committee on Appropriations, 2/23/12 REFERENCES: Maine Association of Nonprofits, Partners in Prosperity: The Maine Nonprofit Sector Impact, (February 2008). www.nonprofitmaine.org/documents/MaineNPSectorImpact2008_download.pdf i Centers for Disease Control and Prevention, U.S. Department of Health and Human Services, Social Determinants of Health (visited 10 February 2011) http://www.cdc.gov/socialdeterminants/ and Marmot, M. (2005) Social Determinants of Health Inequalities. The Lancet; 365: 1099-1104. ii Maine Technology Institute, Impact: Maine Technology Institute Invests in Innovation to ensure a prosperous future for Maine, http://www.mainetechnology.org/results/impact (visited 10 February 2011). iii Brookings Institute, Charting Maine’s Future: An Action Plan for Promoting Sustainable Prosperity and Quality of Place (October 2006) http://www.brookings.edu/reports/2006/10cities.aspx iv Tides Center/Environmental Health Strategy Center, Sustainable Bioplastics Council of Maine, The Business Case for Commercial Production of Bioplastics in Maine: A Preliminary Report, submitted to Maine Technology Institute (March 2010) v Forest Bioproducts Research Institute, University of Maine, FBRI Partners: Old Town: Red Shield Makes Biorefinery Plans, (visited 10 February 2011) http://forestbioproducts.umaine.edu/fbri-partners/red-shield-acquisition-llc/ vi Cerealus Holdings LLC, Sustainable Solutions: HoldoutTM, http://www.cerealus.com/ (visited 10 February 2011) vii 3