Maine Legislature passes bill seeking to avoid labor disruptions on clean energy projects

A bill meant to ensure clean energy projects on state land aren’t disrupted by labor disputes passed the Legislature this week and will go to Gov. Janet Mills for consideration. 

LD 373 requires an entity leasing state land for a clean energy development project to mandate that the lessee enter an “employer and employee harmony agreement.” 

In February, bill sponsor Sen. Mike Tipping (D-Penobscot) said such harmony agreements represent a compromise between workers and employers. The agreements require companies awarded bids for the types of projects specified by the bill to agree not to bust a union or lock out workers. In exchange, workers give up their right to strike.

The overall goal of the bill is to ensure that public money isn’t used to fight unionization while also making sure that essential climate projects are completed without labor fights slowing things down. 

The measure further states that the harmony agreements must be designed to ensure work on clean energy development projects is “uninterrupted, prompt and safe” but exempts facility upgrade services by a third party from the scope of these accords. The bill also stipulates that the harmony agreements apply to contractors and subcontractors but not to employees of contractors and subcontractors who work on a temporary basis. The Maine Department of Labor would be required under the legislation to establish a definition for “temporary basis.”

The legislation cleared the House and Senate in initial votes last week. However, it then barely survived a final enactment vote in the House on Monday, passing by a 70-69 margin that was made closer by a number of absences among Democrats. After that, it was approved by the Senate on Tuesday on a 21-12 vote. 

Republicans in both chambers opposed the bill, while most Democrats supported it.

During a House debate on the measure last week, Republicans argued that the requirements within the harmony agreements would reduce the number of companies willing to bid on clean energy projects. 

“We heard from many companies that testified against this. If such a harmony agreement would be required, most would even refuse to bid on the project because of all the problems it entails,” said Rep. Dick Bradstreet (R-Vassalboro), adding that he believes that would cause the overall cost of such projects to rise. 

However, Rep. Amy Roeder (D-Bangor) said the proposal would simply ensure that money flowing to Maine for clean energy projects — via federal legislation like the Inflation Reduction Act and the bipartisan infrastructure bill — won’t be squandered amid labor disputes that could upend such initiatives.

“We want these clean energy projects to go forward, we want them to go forward smoothly, and an employer-employee harmony agreement is a great way to do that,” she said. 

Additionally, during a hearing for the bill earlier this year, labor leaders in support of the measure said the proposal doesn’t mandate unionization among companies that bid for clean energy projects but simply states that employers can’t fight a union in the event that workers do decide to organize.