Natural Gas Laws and Incentives in Maine

The list below contains summaries of all Maine laws and incentives related to natural gas.

Laws and Regulations

Alternative Fuel Tax Rates

Blended fuels that contain at least 10% gasoline or diesel are 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:

FuelTax 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$0.219 per gallon
Compressed natural gas (CNG)$0.243 per 100 cubic feet
Liquefied natural gas$0.178 per gallon
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 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. Clean fuels include, but are not limited to, natural gas, propane, hydrogen, alcohol fuels containing not less than 85% alcohol by volume, and electricity. (Reference House Paper 779, 2019, and Maine Revised Statutes Title 24-A, Section 2303-B)

State Incentives

Diesel Emission Reduction Project Funding

The Maine Department of Transportation (MaineDOT) is accepting applications for funding of heavy-duty on-road new diesel or alternative fuel repowers and replacements, as well as off-road all-electric repowers and replacements. Funding for this program is not currently available (verified May 2020). Both government and non-government entities are eligible for funding. Vehicles that qualify for replacement or repower include:

  • Model Year (MY) 1992-2009 Class 8 local freight trucks and port drayage trucks;
  • MY 1992-2009 Class 4-7 local freight trucks;
  • MY 2009 or older Class 4-8 school buses, shuttle buses, and transit buses;
  • Forklifts with greater than 8,000 pounds of lift capacity;
  • Port cargo handling equipment; and
  • High emissions diesel-powered or spark ignition airport ground support equipment.
Eligible alternative fuels include, but are not limited to, compressed natural gas, propane, and electricity. This grant program is funded by Maine's portion of the Volkswagen Environmental Mitigation Trust. For more information, including how to apply, see the MaineDOT Applications for Funding website.

More Laws and Incentives

To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.