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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:


For more information see the Maine Revenue Services website. (Reference Legislative Document 1468, 2011, and Maine Revised Statutes Title 36, Section 3203)

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)

Natural Gas Vehicle (NGV) Production Support and Procurement

In 2012, Maine joined Arkansas, Colorado, Kentucky, Louisiana, Mississippi, New Mexico, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Utah, Virginia, West Virginia, and Wyoming in signing a memorandum of understanding (MOU) to stimulate the production and demand for original equipment manufacturer (OEM) NGVs. The MOU aims to encourage OEMs to offer functional and affordable light- and medium-duty NGVs, aggregate state vehicle procurement through a joint request for proposals (RFP), boost private investment in natural gas fueling infrastructure, and encourage greater coordination between state and local agencies. In July 2012, National Association of State Procurement Officials coordinated the solicitation of a joint RFP, which the Department of Central Services (DCS) issued on behalf of the MOU signatories, as well as additional states. As a result, state fleets have access to more affordable NGVs through dealerships now included in state vehicle purchasing bids. For more information, including awarded vehicles by state and vehicle purchase information for state fleets, see the DCS Statewide Contract for NGVs solicitation page. )