Maine Propane Laws and Incentives
State Laws and Regulations
Alternative Fuel Promotion
The Energy Resources Council works in coordination with the Maine Departments of Environmental Protection and Transportation,to evaluate the costs and benefits of state government actions to stimulate an increase in the production of alternative and renewable fuels and the use of these fuels in state vehicles. (Reference Maine Revised Statutes Title 5, Section 3327; Title 35-A, Section 3211-A; and Executive Order 11, 2004)
Alternative Fuel Tax Rates
Blended fuels that contain at least 10% gasoline or diesel are now taxed at the full tax rates of gasoline ($0.295 per gallon) or diesel ($0.307 per gallon). Alternative fuel tax rates are as follows:
| Fuel | Tax Rate |
|---|---|
| E85 | $0.295 per gallon |
| Biodiesel blends of up to 90% | $0.307 per gallon |
| Biodiesel blends of 90-100% | $0.282 per gallon |
| Propane/liquefied petroleum gas (LPG) | $0.215 per gallon |
| Compressed natural gas (CNG) | $0.239 per 100 cubic feet |
| Hydrogen | $0.069 per 100 cubic feet |
| Hydrogen CNG | $0.205 per 100 cubic feet |
For more information see the Maine Revenue Services Web site. (Reference Legislative Document 333, 2009, and Maine Revised Statutes Title 36, Section 3203)
Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Loans
The Clean Fuel Vehicle Fund is a non-lapsing revolving loan fund managed by the Finance Authority of Maine and may be used for direct loans to support production, distribution and consumption of clean fuels and biofuels. The Finance Authority of Maine may also insure up to 100% of mortgage payments with respect to mortgage loans for clean fuel vehicle projects. (Reference Legislative Document 389, 2009, and Maine Revised Statutes Title 10, Sections 1023-K and 1026-A)
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, if insurance premiums on other vehicles are not increased to fund these credits or refunds. (Reference Maine Revised Statutes Title 24-A, Section 2303-B)
