An Act To Encourage the Production of Biodiesel from Forest Products, Agricultural Products and Waste Vegetable Oil
Maine Legislature, Session 122, LD 1534
Committee: Taxation
Sponsors: THOMPSON, BRYANT, BROWNE, EDER, KOFFMAN, PIOTTI, SAVIELLO, SMITH
Amends: 36 MRSA §614, 36 MRSA §2903

Legislative Document 
No. 1534 
H.P.1079 
House of Representatives, April 4, 2005 
An Act To Encourage the Production of Biodiesel from Forest 
Products, Agricultural Products and Waste Vegetable Oil 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative THOMPSON of China. 
Cosponsored by Senator BRYANT of Oxford and 
7Jl~/J1.~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: BROWNE of Vassalboro, EDER of Portland, KOFFMAN of Bar Harbor, 
McCORMICK of West Gardiner, PIOTTI of Unity, SAVIELLO of Wilton, SMITH of 
Monmouth, Senator: SA V AGE of Knox. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
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. 
"BiQm.a.JiG. __ {]le.~et_iDe.d.J_l\~ed in this s.e.k.tion, un 1 ttSJ? 
the context otherwise indicates, "biomass fuel" means any liquid 
or gaseous product or ener~Qurce used to propel motor vehicles 
or otherwise substitute for liquid or gaseous fuels that is: 
A. 
Produced in the State: 
B. 
Derived from fQrest 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 
QJ;.herwis~.ru.ti..c...ates, 
"bj.omass fue.l.. 
mixture" means a mixture of diesel fuel and biomass fuel produced 
in the State. 
J. 
Credit al~owed. 
A t~xpayer engaged in the proq~c~ion 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 It per percent of 
biomass fuel in the biomass fuel mixture per gallon. 
4. 
Provision of 
i~fQJ;nl~i9n. 
A taxpayer 
~gg.~n 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 
Page l-LR2008(1) 
the biomass fuel mixture produced during the taxable year is 
eligible for 
a tax credit under this section and stating the 
n!M!l~r of gg],;Lons of biomass fuel mixture produced. 
This section is repealed December 31, 2012. 
Sec. 2. 36 MRSA §2903. sub-§4, "E and F, as enacted by PL 
1997, c. 738, §4, are amended to read: 
E. 
Brought 
into 
this 
State 
in the 
fuel 
tanks 
of 
an 
aircraft; eli' 
F. 
On 
which the collection of the tax imposed by this 
section is precluded by federal law or regulationT~ 
Sec. 3. 36 MRSA §2903, sub-§4"G is enacted to read: 
G. 
Derived from forest products, agricultural products or 
waste vegetable oil from within the State and produced in 
the State. 
This paragraph is repealed December 31, 2012. 
SUMMARY 
This bill allows a municipality to refund a portion of the 
tax on personal property paid by a taxpayer who produces fuel 
derived 
from 
forest products, 
agricultural products 
or waste 
vegetable oil that is from wi thin the State and produced in the 
State. 
It also exempts that fuel from the gasoline tax. 
These 
provisions are repealed December 31, 2012.