Gov. Mills vetoes first-in-nation data center moratorium passed by Legislature

Gov. Janet Mills vetoed LD 307, a bill passed by the Maine Legislature, which sought to establish a temporary statewide moratorium on data centers, a first-in-the-nation measure. The bill aimed to ensure Maine was prepared for data center growth, focusing on necessary infrastructure and impacts on public resources, the environment, and ratepayers. State Rep. Melanie Sachs, the bill's sponsor, emphasized the need for careful evaluation of data center impacts. Governor Mills explained her veto by highlighting the bill's failure to exempt a specific $550 million data center redevelopment project in the town of Jay, Franklin County. This project, intended for the former Androscoggin Mill brownfield site, has strong local support, is under contract, and has received several permits. Mills stressed the project's potential to create over 800 construction jobs and at least 100 high-paying permanent jobs, along with substantial property tax revenue, while utilizing existing infrastructure to mitigate adverse impacts. Despite the veto, Governor Mills committed to addressing data center impacts by announcing an executive order to establish a council for examining these issues, similar to what LD 307 proposed. She also signed LD 713 into law, prohibiting data center projects from Maine's business development tax incentive programs. The Maine Legislature retains the power to override the veto with a two-thirds majority vote in both chambers. Both Rep. Sachs and Maureen Drouin, executive director for Maine Conservation Voters, criticized the governor's decision. Sachs argued that the veto disregards the will of Maine people and poses risks to ratepayers, the electric grid, and the environment. Drouin accused Mills of siding with developers over environmental safeguards and warned of potential higher energy prices and pollution, noting that the veto undermined a chance to establish a proper regulatory framework. Data from the U.S. Energy Information Administration suggests data centers could increase Maine's electricity rates by 36%.