An Act Making Unified Highway Fund and Other Funds Allocations for the Expenditures of State Government and Changing Certain Provisions of the Law Necessary to the Proper Operations of State Government for the Fiscal Years Ending June 30, 2010 and June 30, 2011
Maine Legislature, Session 124, LD 0333
Committee Amendment CA_A-SA_B_S335 (Senate)
Amends: 36 MRSA §3203-C, 36 MRSA §3208

SENATE AMENDMENT "h" to COMMITTEE AMENDMENT "A" to H.P. 269, 
L.D. 333, Bill, "An Act Making Unified Highway Fund and Other Funds Allocations for 
the Expenditures of State Government and Changing Certain Provisions of the Law 
Necessary to the Proper Operations of State Government for the Fiscal Years Ending 
June 30, 2010 and June 30, 2011" 
Amend the amendment by striking out all of Part W and inserting the following: 
'PARTW 
Sec. W-1. 36 MRS A §2903, sub-§l, as amended by PL 2001, c. 688, §1, is 
further amended to read: 
1. Excise tax imposed. An Beginning July 1, 2008 and ending June 30, 2009, an 
excise tax is imposed on internal combustion engine fuel used or sold within this State, 
including sales to the State or a political subdivision of the State, at the rate of~ 28.4¢ 
per gallon, except that the rate is 3.4¢ per gallon on internal combustion engine fuel, as 
defined in section 2902, bought or used for the purpose of propelling jet or turbojet 
engine aircraft. 
The tax rate provided by this seotion is subjeot to annual inflation 
adjustment pursuant to seotion 3321 exoept "'lith respeot to the tax imposed upon fuel 
bought or used for the purpose of propelling jet or turbojet engine airoraft. Beginning 
July 1, 2009 and ending March 31, 2010, an excise tax is imposed on internal combustion 
engine fuel used or sold within this State, including sales to the State or a political 
subdivision of the State, at the rate of 32¢ per gallon, except that the rate is 3.4¢ per 
gallon on internal combustion engine fuel bought or used for the purpose of propelling jet 
or turbojet engine aircraft. Beginning April 1, 2010, an excise tax is imposed on internal 
combustion engine fuel used or sold within this State, including sales to the State or a 
political subdivision of the State, at the rate of 34.5¢ per gallon, except that the rate is 
3.4¢ per gallon on internal combustion engine fuel bought or used for the purpose of 
propelling jet or turbojet engine aircraft. 
Any fuel containing at least 10% internal 
combustion engine fuel is subject to the rate of tax imposed by this section. 
Sec. W-2. 36 MRS A §3203, sub-§l-B, as enacted by PL 2007, c. 650, §2, is 
amended to read: 
SENATE AMENDMENT 
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SENATE AMENDMENT",b" to COMMITTEE AMENDMENT "A" to H.P. 269, L.D. 333 
I-B. Generally; rates. Except as provided in section 3204-A, beginning July 1, 
2008 and ending June 30, 2009, 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 rates provided in this subsection rate 
of 29.6¢ per gallon. Beginning July 1, 2009 and ending March 31, 2010, 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 32¢ per gallon. Beginning April 1, 2010, 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 34.5¢ per gallon. 
Tax rates for each gallon of low-energy fuel are based on the British Thermal Unit; 
referred to in this subsection as "BTU," energy content for each fuel as based on gasoline 
gallon equivalents or the comparable measure for distillates. 
The gasoline gallon 
equivalent is the amount of alternative fuel that equals the BTU energy content of one 
gallon of gasoline. In the case of distillates, the tffii rate provided by this section is 
subject to annual inflation adjustment pursuant to section 3321. For purposes of this 
subsection, "base rate" means the rate in effect for gasoline or diesel on July 1st of each 
year as indexed under section 3321. A biodiesel blend containing less than 90% biodiesel 
fuel is subject to the rate of tax imposed on diesel. 
A. This paragraph establishes the applicable BTU values and tax rates based on 
gasoline gallon equivalents. 
Fuel type based on gasoline BTU content per gallon or Tax rate formula (BTU 
Gasoline 
Propane 
Compressed Natural Gas 
(CNG) 
Methanol 
Ethanol 
Hydrogen 
Hydrogen Compressed 
Natural Gas 
gasoline gallon equivalent 
value fuellBTU vallie 
115,000 
84,500 
115,000 
56,800 
76,000 
115,000 
115,000 
gasoline) x base rate 
gasoline 
100% x base rate 
% x base rate 
100% x base rate 
49% x base rate 
66% x base rate 
100% x base rate 
100% x base rate 
B. This paragraph establishes the applicable BTU values and tax rates based on 
distillate gallon equivalents. 
SENATE AMENDMENT 
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SENATE AMENDMENT" 0" to COMMITTEE AMENDMENT "A" to H.P. 269, L.D. 333 
Fuel type based on diesel 
BTU content per gallon or Tax rate formula (BTU 
Diesel 
Liquified Natural Gas 
(LNG) 
Biodiesel 
gallon equivalent 
value fuellBTU value 
diesel) x base rate diesel 
128,400 
73,500 
118,300 
100% x base rate 
57% x base rate 
92% x base rate 
C. The conversion factors established in this paragraph must be used in converting to 
gasoline gallon equivalents. 
(1.) For compressed natural gas, BTUs per 100 standard cubic feet is 93,000, and 
there are 123.66 standard cubic feet per gasoline gallon equivalent. 
(2) For hydrogen, BTUs per 100 standard cubic feet is 27,000, and there are 
425.93 standard cubic feet per gasoline gallon equivalent. 
(3) For hydrogen compressed natural gas, BTUs per 100 standard cubic feet is 
79,800, and there are 144.11 standard cubic feet per gasoline gallon equivalent. 
Sec. W-3. 36 MRSA §3203-C, as amended by PL 2003, c. 390, §15, is further 
amended to read: 
§3203-C. Inventory tax 
On the date that any increase in the rate of tax imposed under this chapter takes 
effect, an inventory tax is imposed upon all distillates that are held in inventory by a 
supplier or retail dealer as of the end of the day prior to that date on which the tax 
imposed by section 3203, sl:lbse.ction 1 has been paid. The inventory tax is computed by 
multiplying the number of gallons of tax-paid fuel held in inventory by the difference 
between the tax rate already paid and the new tax rate. Suppliers and retail dealers that 
hold such tax-paid inventory shall make payment of the inventory tax on or before the 
15th day of the next calendar month, accompanied by a form prescribed and furnished by 
the State Tax Assessor. In the event of a decrease in the tax rate, the supplier or retail 
dealer is entitled to a refund or credit, which must be claimed on a form designed and 
furnished by the assessor. 
Sec. W-4. 36 MRSA §3208, first -rr, as amended by PL 2007, c. 438, §78, is 
further amended to read: 
Every user subject to the tax imposed by section 3203 is entitled to a credit on the 
tax, equivalent to the then current rate of taxation per gallon imposed by section 3203 as 
adjl:lsted pl:lFSl:lant to section 3321, on all special fuel purchased by that user from a 
supplier or retailer licensed in accordance with section 3204 upon which the tax imposed 
by section 3203 has been paid. Evidence of the payment of that tax, in a form required by 
or satisfactory to the State Tax Assessor, must be furnished by each user claiming the 
credit. When the amount of the credit to which any user is entitled for any quarter 
exceeds the amount of the tax for which that user is liable for the same quarter, the excess 
may be allowed as a credit on the tax for which that user would be otherwise liable for 
another quarter or quarters. Upon application to the assessor, the excess may be refunded 
SENATE AMENDMENT 
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SENATE AMENDMENT ,j)" to COMMITTEE AMENDMENT "A" to H.P. 269, L.D. 333 
if the applicant has paid to another state or province under a lawful requirement of that 
jurisdiction a tax similar in effect to the tax imposed by section 3203 on the use or 
consumption of that fuel outside the State, at the same rate per gallon that tax was paid in 
this State, but in no case to exceed the then current rate per gallon of the tax imposed by 
section 3203 as adjusted pursuant to section 3321. Upon receipt of the application the 
assessor, if satisfied after investigation that a refund is justified, shall so certify to the 
State Controller. The refund must be paid out of the Highway Fund. This credit lapses at 
the end of the last quarter of the year following that in which the credit arose. 
Sec. W-5. 36 MRSA c. 465, as amended, is repealed. 
Sec. W-6. Effective date. This Part takes effect July 1, 2009, except that the 
section of this Part that repeals the Maine Revised Statutes, Title 36, chapter 465 takes 
effect June 30, 2009.' 
Amend the amendment in Part X in section 2 in the 5th line (page 80, line 41 in 
amendment) by striking out the following: "$10,000,000" and inserting the following: 
'$30,000,000' 
Amend the amendment by inserting after Part X the following: 
'PARTY 
Sec. Y-l. Appropriations and allocations. The following appropriations and 
allocations are made. 
TRANSPORTATION, DEPARTMENT OF 
Highway and Bridge Capital 0406 
Initiative: Allocates funding from the return of a portion of the 7.5% of fuel taxes 
previously transferred to the Maine Municipal Bond Bank TransCap Trust Fund. 
OTIlER SPECIAL REVENUE FUNDS 
Capital Expenditures 
OTHER SPECIAL REVENUE FUNDS TOTAL 
Highway and Bridge Capital 0406 
2009-10 
$9,446,124 
$9,446,124 
2010-11 
$12,086,594 
12,086,594 
Initiative: Provides funding for capital projects utilizing the $30,000,000 Maine 
Municipal Bond Bank TransCap Trust Fund revenue bond in Part X. 
OTHER SPECIAL REVENUE FUNDS 
Capital Expenditures 
OTHER SPECIAL REVENUE FUNDS TOTAL 
Highway and Bridge Capital 0406 
2009-10 
$10,000,000 
$10,000,000 
SENATE AMENDMENT 
2010-11 
$20,000,000 
$20,000,000 
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SENATE AMENDMENT..1J "to COMMITTEE AMENDMENT "A" to H.P. 269, L.D. 333 
Initiative: Provides funding for Capital Expenditures. 
mGHWAYFUND 
Capital Expenditures 
HIGHWAY FUND TOTAL 
Highway and Bridge Light Capital Z095 
2009-10 
$1,511,760 
$1,511,760 
Initiative: Provides funding for Capital Expenditures projects. 
mGHW AY FUND 
Capital Expenditures 
HIGHWAY FUND TOTAL 
Urban-Rural initiative Program 0337 
2009-10 
$18,000,000 
$18,000,000 
2010-11 
$4,699,573 
$4,699,573 
2010-11 
$22,925,000 
$22,925,000 
Initiative: Restores funding on a one-time basis to the Urban-Rural Initiative Program 
deallocated in Part A by allocating funding from the return of a portion of the 7.5% of 
fuel taxes previously transferred to the Maine Municipal Bond Bank TransCap Trust 
Fund. 
IDGHWAYFUND 
All Other 
HIGHWAY FUND TOTAL 
Urban-Rural Initiative Program 0337 
2009-10 
$0 
$0 
2010-11 
$5,000,000 
$5,000,000 
Initiative: Adjusts funding on a one-time basis for the Urban-Rural Initiative Program at 
the correct proportioned rate per the Maine Revised Statutes, Title 23, section 1803-B. 
mGHWAYFUND 
All Other 
HIGHWAY FUND TOTAL 
TRANSPORTATiON, DEPARTMENT OF 
DEPARTMENT TOTALS 
mGHWAYFUND 
OTHER SPECIAL REVENUE FUNDS 
2009-10 
$2,079,569 
$2,079,569 
2009-10 
$21,591,329 
$19,446,124 
SENATE AMENDMENT 
2010-11 
$2,944,235 
$2,944,235 
2010-11 
$35,568,808 
$32,086,594 
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SENATE AMENDMENT.f!; "to COMMITTEE AMENDMENT "A" to H.P. 269, L.D.333 
DEPARTMENT TOTAL-ALLFUNDS 
$41,037,453 
$67,655,402 
Amend the amendment by relettering or renumbering any nonconsecutive Part letter 
or section number to read consecutively. 
SUMMARY 
This amendment does the following. 
1. It changes the tax rates proposed in Committee Amendment "A" by: 
. A. Beginning July 1,2009, establishing a tax rate of 32¢ per gallon for both gasoline 
and diesel fuel and providing for a further increase to 34.5¢ per gallon on April 1, 
2010 on both gasoline and diesel fuel. The tax on gasoline and diesel fuel was 
scheduled to increase by 1.1 ¢ July 1, 2009 due to indexing, so the net effect of this 
amendment is to impose 2 separate 2.5¢ increases; and 
B. Repealing the indexing of the fuel tax to the rate of inflation, effective June 30, 
2009, prior to the date the indexing was to be done, since the indexing is accounted 
for in the new rate imposed as of July 1,2009. 
2. It increases the amount of TransCap Trust Fund revenue bonds that the Maine 
Municipal Bond Bank is authorized to issue from $10,000,000 to $30,000,000. 
3. It adds an allocations and appropriations section to ensure that all funds at the 
Maine Municipal Bond Bank TransCap Trust Fund· are used for capital projects having a 
useful life of at least 10 years. 
FISCAL NOTE REQUIRED 
SPONSORED BY: VV· vv, ~ 
~\V "l,..LY 
COUNTY: Franklin 
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SENATE AMENDMENT 
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Approved: 0611 0/09 ;:!;Pac:.. 
ll4th MAINE LEGISLATURE 
LD333 
LR 824(09) 
An Act Making Unified Highway Fund and Other Funds Allocations for the Expenditures of State 
Government and Changing Certain Provisions of the Law Necessary to the Proper Operations of State 
Government for the Fiscal Years Ending June 30,2010 and June 30, 2011 
Fiscal Note for Senate Amendment ,1j" to Committee Amendment "A" 
Net Cost (Savings) 
General Fund 
Highway Fund 
Appropriations/Allocations 
Highway Fund 
Other Special Revenue Funds 
Revenue 
General Fund 
Highway Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Sponsor: Sen. Gooley of Franldin 
Fiscal Note Required: Yes 
Fiscal Note 
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2009-10 
($28,460) 
$0 
$21,591,329 
$19,446,124 
$28,460 
$21,591,329 
$2,249,211 
2010-11 
($45,212) 
$0 
$35,568,808 
$32,086,594 
$45,212 
$35,568,808 
$3,675,979 
Projections 
2011-12 
Projections 
2012-13 
($40,512) 
($34,368) 
($31,570,056) 
($26,467,554) 
$0 
$0 
$40,512 
$31,570,056 
$2,638,101 
$0 
$0 
$34,368 
$26,467,554 
$2,597,280 
This amendment increases Highway Fund revenue by $21,591,329 in fiscal year 2009-1 0 and $35,568,808 in fiscal 
year 2010-11 and increases Highway Fund allocations by the same amount. This amendment will have no net effect 
on Highway Fund budgeted balance and a balanced budget is maintained through the 2010-2011 Biennium. 
LR0824(09) - Fiscal Note - Page I of I