Sec. 1. 36 MRSA §614 is enacted to read:

§614.__Biomass fuel credit

A municipality may by ordinance refund a portion of the tax paid on personal property under this Part as provided in this section.

1.__"Biomass fuel" defined.__As used in this section, unless the context otherwise indicates, "biomass fuel" means any liquid or gaseous product or energy source used to propel motor vehicles or otherwise substitute for liquid or gaseous fuels that is:

A.__Produced in the State;

B.__Derived from forest products, agricultural products or waste vegetable oil from within the State;

C.__In compliance with the American Society for Testing and Materials Standard D6751-02a or other applicable standard from the American Society for Testing and Materials; and

D.__Substantially altered from its raw state by the production process.

2.__"Biomass fuel mixture" defined.__As used in this section, unless the context otherwise indicates, "biomass fuel mixture" means a mixture of diesel fuel and biomass fuel produced in the State.

3.__Credit allowed.__A taxpayer engaged in the production of biomass fuel mixture in the State who has received certification under subsection 4 may be allowed a credit against the tax imposed on personal property used in the production of biomass fuel mixture in an amount of not more than 1__per percent of biomass fuel in the biomass fuel mixture per gallon.

4.__Provision of information.__A taxpayer engaged in the production of biomass fuel mixture may provide information to the Commissioner of Environmental Protection regarding the biomass fuel mixture being produced, including the type of product being used, the nature and composition of the fuel being produced, the percentage of biomass fuel in the biomass fuel mixture, the proportion and composition of any nonbiomass fuel with which the biomass fuel is blended and the type of application for which the biomass fuel is intended to be used. Upon review of the information, the Commissioner of Environmental Protection may provide the taxpayer with a letter of certification stating that