Maine Incentives and Laws for Propane (LPG)
The list below contains summaries of all Maine incentives and laws related to Propane (LPG).
Laws and Regulations
State Plan to Reduce Petroleum Consumption
By December 1, 2012, the Maine Office of Energy Independence and Security (Office) must develop a plan to reduce petroleum consumption in all sectors of the economy with the overall goal of reducing petroleum consumption in the state by at least 30% and 50%, based on 2007 levels, by 2030 and 2050, respectively. The plan must prioritize the use of alternative energy sources for transportation. The Office must include an update on the progress towards meeting these goals in the state's biennial comprehensive energy plan. (Reference Legislative Document 553, 2011, and Maine Revised Statutes Title 2, Section 9)
Alternative Fuel Tax Rates
Blended fuels that contain at least 10% gasoline or diesel are now taxed at the full tax rates of gasoline ($0.30 per gallon) or diesel ($0.312 per gallon). Alternative fuel tax rates are as follows:
| Fuel | Tax Rate |
|---|---|
| E85 | $0.30 per gallon |
| Biodiesel blends of up to 90% | $0.312 per gallon |
| Biodiesel blends of 90-100% | $0.287 per gallon |
| Propane/liquefied petroleum gas | $0.219 per gallon |
| Compressed natural gas (CNG) | $0.243 per 100 cubic feet |
| Hydrogen | $0.07 per 100 cubic feet |
| Hydrogen CNG | $0.208 per 100 cubic feet |
For more information see the Maine Revenue Services website. (Reference Legislative Document 1468, 2011, and Maine Revised Statutes Title 36, Section 3203)
Transportation Efficiency Fund
The Transportation Efficiency Fund is a non-lapsing fund managed by the Maine Department of Transportation to increase energy efficiency and reduce reliance on fossil fuels within the state's transportation system. Funding may be used for zero emission vehicles, biofuel and other alternative fuel vehicles, congestion mitigation and air quality initiatives, rail, public transit, and car or van pooling. (Reference Maine Revised Statutes Title 23, Section 4210-E)
Provision for Establishment of Clean Fuel Vehicle Insurance Incentives
An insurer may credit or refund any portion of the premium charged for an insurance policy on a clean fuel vehicle in order to encourage its policyholders to use clean fuel vehicles, as long as insurance premiums on other vehicles are not increased to fund these credits or refunds. (Reference Maine Revised Statutes Title 10, Sections 963-A, and Title 24-A, Section 2303-B)
