An Act To Further Maine's Energy Independence
Be it enacted by the People of the State of Maine as follows:
Sec. A-1. 36 MRSA §3203, sub-§1, as amended by PL 2001, c. 688, §5, is further amended to read:
1. Generally.
Except as provided in section 3204-A, an excise tax is levied and imposed on all suppliers of distillates sold, on all retailers of low-energy fuel sold and on all users of special fuel used in this State for each gallon of distillate at the rate of 23¢ per gallon , except that the rate for distillates containing 2% or more of biodiesel fuel by volume is 20¢ per gallon, and for each gallon of low-energy fuel based on the British Thermal Unit, referred to in this subsection as "BTU," energy content for each fuel as compared to gasoline. In the case of distillates, the tax rate provided by this section is subject to annual inflation adjustment pursuant to section 3321. Applicable BTU values are as follows.
| Fuel Type | BTU content per gallon | Formula (BTU value fuel/BTU value gasoline) x tax reate gasoline | Tax Rate |
| Gasoline | 115,000 | 100% x 22¢ | 22¢ per gallon as authorized in section 2903 |
| Methanol (M85) | 65,530 | 57% x 22¢ | 12.5¢ per gallon |
| Ethanol (E85) | 81,850 | 71% x 22¢ | 15.6¢ per gallon |
| Propane | 84,500 | 73% x 22¢ | 16¢ per gallon |
| Compressed Natural Gas | 100,000 (BTU per 100 standard cubic feet) | 87% x 22¢ | 19.1¢ per 100 standard cubic feet |
Sec. A-2. Appropriations and allocations. The following appropriations and allocations are made.
TRANSPORTATION, DEPARTMENT OF
Maine Highway Fund - Department of Transportation
Initiative: Reimburses the Highway Fund for revenues lost due to the reduction in the excise tax levied and imposed on distillates containing 2% or more of biodiesel fuel.
| GENERAL FUND | 2005-06 | 2006-07 |
|
All Other
|
$0 | $20,000 |
 |
|
|
| GENERAL FUND TOTAL | $0 | $20,000 |
Sec. B-1. 35-A MRS §3212, sub-§4-A, as enacted by PL 2003, c. 665, §2, is repealed.
4-A.
Sec. B-2. 35-A MRSA §3212, sub-§4-B is enacted to read:
4-B. Demand side resources.
The commission may incorporate cost-effective energy conservation and energy efficiency into the supply of standard offer service.