MAINE
H.P. 343 An Act to Price Carbon Pollution in Maine
This bill, dated January 29, 2019, is a Maine House bill referred to the Committee on Energy, Utilities and Technology, presented by Rep. Rykerson and co-sponsored by Sen. Miramant.
It proposes a carbon tax of $5 per metric ton of carbon dioxide (a metric ton is 1.102 times heavier than a U.S. ton) that could be produced from various fuels, increasing $5 per year until it reaches $40/ton in year eight, then keeping at that level going forward. The fuels affected include diesel, fuel oil, gasoline, kerosene, natural gas and propane. Unlike proposals in CT and NH, the tax would not be applied to the carbon dioxide from fuels used at electric power plants. Apparently the logic for this is that the electric utilities would be the beneficiaries of all these taxes and they are supposed to reduce the rate of their customers, in some undisclosed manner. However, since the tax is applied on fuels upon import into Maine, power plants will have to purchase the taxed, more expensive fuels to operate (such as natural gas) and this will drive rates up.
Using the formula in the bill, the following taxes are calculated for various affected fuels on a cent per unit volume basis, and the impact on household budgets, where applicable.
Heating Oil
Year Tax Tax/Household (HH)
1 $.0508/gall $40.65
5 $.2541/gall $203.27
8 $.4065/gall $325.23
Propane
Year Tax Tax/HH
1 $.0288/gall $35.21
5 $.1441/gall $176.04
8 $.2305/gall $281.66
Gasoline
Year Tax Tax/HH
1 $.0445/gall $29.17
5 $.2223/gall $145.84
8 $.3557/gall $233.35
Natural Gas
Year Tax Tax/HH
1 $.0266/ccf $28.64
5 $.1328/gall $143.19
8 $.2125/gall $229.10
Heating fuel consumption assumes about 111 million BTUs produced annually by heating equipment. The tax on diesel is the same as heating oil. Heating oil rates assume no Bioheat use as the bio-portion of Bioheat would not be taxed. We assume 656 gallons of annual consumption of gasoline per vehicle.
We use data from the federal Energy Information Agency to calculate the carbon impact of various fuels, as the bill requires. The tax from year 8 remains the same going forward from then. We assume household consumption of heating oil at 800 gallons per year, 1,078 ccf of natural gas, 1,222 gallons of propane, and 656 gallons of gasoline. Your individual consumption of course will vary from these averages. Thus, for example, in year 8 of the tax, a family that heats with propane and owns two cars, would incur a tax of $281.66 for heating and 2 x $233.35 = $466.70 = $748.36. The tax adds up fast, and per the bill, the proceeds all go to the electric utilities.
It proposes a carbon tax of $5 per metric ton of carbon dioxide (a metric ton is 1.102 times heavier than a U.S. ton) that could be produced from various fuels, increasing $5 per year until it reaches $40/ton in year eight, then keeping at that level going forward. The fuels affected include diesel, fuel oil, gasoline, kerosene, natural gas and propane. Unlike proposals in CT and NH, the tax would not be applied to the carbon dioxide from fuels used at electric power plants. Apparently the logic for this is that the electric utilities would be the beneficiaries of all these taxes and they are supposed to reduce the rate of their customers, in some undisclosed manner. However, since the tax is applied on fuels upon import into Maine, power plants will have to purchase the taxed, more expensive fuels to operate (such as natural gas) and this will drive rates up.
Using the formula in the bill, the following taxes are calculated for various affected fuels on a cent per unit volume basis, and the impact on household budgets, where applicable.
Heating Oil
Year Tax Tax/Household (HH)
1 $.0508/gall $40.65
5 $.2541/gall $203.27
8 $.4065/gall $325.23
Propane
Year Tax Tax/HH
1 $.0288/gall $35.21
5 $.1441/gall $176.04
8 $.2305/gall $281.66
Gasoline
Year Tax Tax/HH
1 $.0445/gall $29.17
5 $.2223/gall $145.84
8 $.3557/gall $233.35
Natural Gas
Year Tax Tax/HH
1 $.0266/ccf $28.64
5 $.1328/gall $143.19
8 $.2125/gall $229.10
Heating fuel consumption assumes about 111 million BTUs produced annually by heating equipment. The tax on diesel is the same as heating oil. Heating oil rates assume no Bioheat use as the bio-portion of Bioheat would not be taxed. We assume 656 gallons of annual consumption of gasoline per vehicle.
We use data from the federal Energy Information Agency to calculate the carbon impact of various fuels, as the bill requires. The tax from year 8 remains the same going forward from then. We assume household consumption of heating oil at 800 gallons per year, 1,078 ccf of natural gas, 1,222 gallons of propane, and 656 gallons of gasoline. Your individual consumption of course will vary from these averages. Thus, for example, in year 8 of the tax, a family that heats with propane and owns two cars, would incur a tax of $281.66 for heating and 2 x $233.35 = $466.70 = $748.36. The tax adds up fast, and per the bill, the proceeds all go to the electric utilities.