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April 30, 2014

Towns sue PERC over lobbying efforts

A group of over 180 towns that contract with Orrington-based Penobscot Energy Recovery Co. for solid waste disposal is suing its Minnesota-based parent company.

The Bangor Daily News reported that the lawsuit by Municipal Review Committee is contesting $750,000 in legal and consulting fees billed by USA Energy Group to its partnering towns for state lobbying efforts they opposed. The lawsuit was filed last month in Hancock County Superior Court in Ellsworth and transferred Monday to U.S. District Court in Bangor.

According to the complaint, Municipal Review Committee claims it has a legal right to determine how its clients’ partnership funds are spent with USA Energy Group. The group’s complaint also says it was clear in its opposition to USA Energy Group's support of LD 1483, which imposes “a framework for reassessing costs and tipping fees that extends beyond the [Dec. 31, 2018] expiration date of the partnership term as delineated in the partnership agreement.” The bill passed into law without the governor's signature in March and now requires the state to consider solid waste management hierarchy when licensing new solid waste facilities.

Municipal Review Committee claims it had assurances from USA Energy Group that it wouldn’t spend the towns’ partnership funds for lobbying efforts on the bill, which it said is not compatible with the group’s interests.

David Walker, a Bangor Attorney representing USA Energy Group, said his client believes LD1483 will be beneficial to the partnering towns, their constituents and the state.

USA Energy Group paid more than $451,000 for state lobbying efforts in 2013, making it Maine’s top company for registered lobbying expenses last year, according to data from the Maine Commission on Governmental Ethics and Election Practices. The Minnesota-based company spent more than the five companies ranking behind it combined.

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