Maine Incentives and Laws

Last Updated September 2009

Maine is the home of the Maine Clean Communities Coalition (http://www.gpcog.org/Transportation_and_Land_Use/Maine_Clean_Communities.php). Coordinator contact information is listed in the Points of Contact section.

State Incentives

Biofuels Production Tax Credit

A certified producer of ethanol, biodiesel, or methanol derived from biomass is allowed an income tax credit of $0.05 per gallon for the commercial production of biofuels for use in motor vehicles or otherwise used as a substitute for liquid fuels. A taxpayer claiming this credit must receive a letter from the Commissioner of 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)

State Laws and Regulations

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 (PDF 1.8 MB), which recommended specific policy options aimed toward the promotion of biofuels. Download Adobe Reader. 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 Document 1159, 1284, and 1347, 2007)

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)

Idle Reduction Requirement

A commercial vehicle or gasoline powered vehicle is not permitted to 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, including during driver rest periods; 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; and 5) 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. 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)

Idle Reduction Weight Exemption

Any vehicle equipped with idle reduction technology may exceed the state's gross vehicle and axle weight limits by up to 400 pounds to compensate for the additional weight of the added idle reduction technology. (Reference Legislative Document 37, 2009, and Maine Revised Statutes Title 29-A, Section 2360)

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 any Model Year (MY) 2001 and subsequent MY passenger cars and light-duty trucks; MY 2003 and subsequent MY medium-duty vehicles; MY 2005 and 2006 heavy-duty vehicles and diesel engines; and all 2008 and subsequent model year heavy-duty diesel vehicles and engines. Beginning with MY 2009, manufacturers must meet the greenhouse gas emissions standard and the zero emissions vehicle sales requirement. (Reference Department of Environmental Protection, 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 ($0.295 per gallon) or diesel ($0.307 per gallon). Alternative fuel tax rates are as follows:

For more information see the Maine Revenue Services Web site. (Reference Legislative Document 333, 2009, and Maine Revised Statutes Title 36, Section 3203)

Biodiesel Fuel Tax Exemption

Biodiesel fuel that is produced by an individual and used by that same individual or a member of that individual's immediate family is exempt from the state fuel excise tax. (Reference Legislative Document 1352, 2009, and Maine Revised Statutes Title 36, Section 3204-A)

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 and meet specified state and federal safety equipment requirements. (Reference Maine Revised Statutes Title 29-A, Sections 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 the state or any department or agency of the state unless, beginning January 1, 2000, the car has a manufacturer's estimated highway mileage rating of at least 45 miles per gallon and the light-duty truck has a manufacturer's estimated highway mileage rating of at least 35 miles per gallon. Cars and light-duty trucks purchased for law enforcement and other special use purposes as designated by the State Purchasing Agent are exempt from this requirement. (Reference Maine Revised Statutes Title 5, Section 1812-E)

State Fleet Fuel Economy Improvement

The Maine Departments of Administrative and Financial Services, Transportation, Public Safety, and other agencies must continue to improve the overall fuel economy of their fleets. (Reference Executive Order 11, 2004)

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)

Biofuels Production Incentive

The Agriculturally Derived Fuel Fund was developed to provide direct loans and subsidies to a business or cooperative for the design and construction of a facility that produces agriculturally derived fuel, specifically methanol and ethanol. It is a non-lapsing fund controlled by the Finance Authority of Maine. (Reference Maine Revised Statutes Title 10, Section 997-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)

Utilities/Private Incentives

There are currently no known utility or private incentives offered in Maine.

Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Steve Linnell Clean Cities Coordinator	Maine Clean Communities	Phone:(207) 774-9891 Fax:(207) 774-7149
Mike Scarpino Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(412) 386-4726 Fax:(412) 386-5835
Melissa Morrill Bureau of Air Quality, Environmental Specialist	Maine Department of Environmental Protection	Phone:(207) 287-6102 Fax:(207) 287-7641
John Brautigam Director	Efficiency Maine, Public Utilities Commission	Phone:(207) 287-1594 Fax:(207) 287- 1039
Ariel Garcia Environmental Engineer, Region 1	U.S. Environmental Protection Agency	Phone:(617) 918-1660 Fax:(617) 918-0660
Alison Simcox Environmental Scientist, Region 1	U.S. Environmental Protection Agency	Phone:(617) 918-1684 Fax:(617) 918-0684