Maine Incentives and Laws
Listed below are the summaries of all current Maine incentives, laws, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:
State Incentives
Biofuels Production Tax Credit
A certified commercial biofuel producer is eligible for an income tax credit of $0.05 per gasoline gallon equivalent of biofuel produced for use in motor vehicles or otherwise used as a substitute for liquid fuels. Biofuel is defined as ethanol, biodiesel, hydrogen, methanol, or any other transportation fuel derived from agricultural crops or residues, or from forest products or byproducts. A taxpayer claiming this credit must receive a letter from the Maine Department of Environmental Protection that certifies the biofuels produced during the taxable year are eligible for the tax credit. For biofuels blended with petroleum or other non-biofuels, the credit is allowed only on the biofuels portion of that blend. Any portion of unused credits may be carried over for up to 10 taxable years. (Reference Maine Revised Statutes Title 36, Section 5219-X)
Biodiesel Fuel Tax Exemption
An individual that produces biodiesel for personal use or use by a member of his or her immediate family is exempt from the state fuel excise tax. (Reference Maine Revised Statutes Title 36, Section 3203 and 3204-A)
Idle Reduction Weight Exemption
Any vehicle equipped with an auxiliary power unit (APU) may exceed the state's gross vehicle and axle weight limits by up to 400 pounds to compensate for the additional weight of the APU. (Reference Maine Revised Statutes Title 29-A, Section 2360)
Low-Speed Vehicle Inspection Exemption
Low-speed vehicles are exempt from annual state vehicle inspections. Low-speed vehicles must be registered, carry a special license plate, and meet specified state and federal safety equipment requirements. Additional restrictions may apply. (Reference Maine Revised Statutes Title 29-A, Sections 501, 1752, and 1925)
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)
Plug-In Electric Vehicle Infrastructure Development
Maine has adopted a policy to promote the development, implementation, availability, and use of smart grid technology. The policy includes the goal of integrating advanced electric storage and peak-reduction technologies, such as plug-in electric and hybrid electric vehicles, into the electric system. (Reference Maine Revised Statutes Title 35-A, Section 3143)
Ethanol Fuel Handling Outreach and Education
The Maine Department of Environmental Protection (Department) must conduct an outreach and education campaign to inform residents of the proper handling and disposal of motor fuels containing ethanol. The campaign will provide information on topics including how to determine when phase separation occurs. The Department must also update its website to include information relating to safe handling and disposal options. (Reference Legislative Document 1760, 2010)
Policy Recommendations for Biofuels Promotion
The Maine Office of Energy Independence and Security issued a report, Liquid Biofuels Policy for Maine: A Report to the State Legislature, which recommended specific policy options aimed toward the promotion of biofuels. The recommendations include the following: a) combine existing, unfunded, alternative fuels funds into one Clean Fuel Fund; b) study sustainability measures for biofuels; c) improve implementation of existing policies related to alternative fuels; d) support research and development; e) exempt alternative fuels from exclusivity contracts; f) revise and reinstate an excise tax cut for biofuels; g) institute a biodiesel purchasing requirement for the Maine Department of Transportation; and h) pursue a regional renewable fuels standard and/or low carbon fuel standard. The report includes suggestions for initial implementation actions and next steps. (Reference Legislative Documents 1159, 1284, and 1347, 2007)
Idle Reduction Requirement
A commercial vehicle or gasoline powered vehicle may not idle for more than five minutes during any 60-minute period. Exemptions are allowed for the following: 1) a vehicle stopped in traffic or at the direction of a law enforcement official; 2) a vehicle needing auxiliary power for equipment or for climate control to prevent a safety or health emergency; 3) a vehicle being inspected by a state or federal motor vehicle inspector; 4) an emergency vehicle being used in the course of official business; 5) a commercial vehicle using air conditioning or heating during a driver rest period or while waiting to load or unload; and 6) when the ambient outside air temperature is less than zero degrees Fahrenheit. When the outside ambient air temperature is between zero and 32 degrees Fahrenheit, vehicles may idle for up to 15 minutes during a 60-minute period. In addition, a passenger bus my idle for up to 15 minutes during a 60-minute period while passengers are on board. Any owner of a location that is used for loading and unloading of commercial vehicles may not require that vehicles idle for periods longer than 30 minutes while waiting to load or unload at the location. Violators are subject to fines. (Reference Maine Revised Statutes Title 38, Section 585-L)
Low Emission Vehicle (LEV) Standards
Maine has adopted the California motor vehicle emissions standards specified in Title 13 of the California Code of Regulations. These regulations apply to all passenger cars, light-duty trucks, medium-duty vehicles, and heavy-duty diesel vehicles and engines. Manufacturers must meet the greenhouse gas emissions standard and the zero emissions vehicle sales requirement. (Reference Department of Environmental Protection Rules, Chapter 127)
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)
Low-Speed Vehicle Access to Roadways
Low-speed vehicles may only be used on roadways with posted speed limits of up to 35 miles per hour. Low-speed vehicles must be registered, carry a special license plate, and meet specified state and federal safety equipment requirements. (Reference Maine Revised Statutes Title 29-A, Sections 501, 1925, and 2089)
Fuel-Efficient Vehicle Acquisition Requirements
The Maine State Purchasing Agent may not purchase or lease any car or light-duty truck for use by any state department or agency unless the car or truck has a manufacturer's estimated highway mileage rating of at least 45 miles per gallon (mpg) or 35 mpg, respectively. Cars and light-duty trucks purchased for law enforcement and other special use purposes the State Purchasing Agent designates are exempt from this requirement. (Reference Maine Revised Statutes Title 5, Section 1812-E)
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)
