Maine Governor Issues Declaration of Civil Emergency In Wake Of High Diesel Prices

November 30, 2007 -- AUGUSTA -- Maine Governor John E. Baldacci today signed a Declaration of Civil Emergency regarding the high price of diesel fuel and its impact on the State’s forest products industry.

“Diesel prices in Maine are at all-time highs, and it is having a devastating impact on our economy, and particularly on the forest products industry,” Governor Baldacci said. “This emergency order will allow us to take further steps to help truckers and loggers in the State, and place more pressure upon Washington to take action.”

Governor Baldacci signed the declaration after meeting today with representatives from the trucking and logging community.

The declaration is an important step in mobilizing action and seeking the assistance of the President in addressing the diesel fuel price crisis that is severely burdening the forest products industry.

In addition to the declaration, the Governor also announced that the following steps will be taken to further support the forest products industry.

Currently off-road diesel users may apply for a refund of State fuel taxes paid at the pump. The Governor’s Office is offering to facilitate an arrangement with private vendors to ease the administrative burden of applying for the refund. Instead of paying the tax and seeking a refund, the arrangement would adjust the price automatically at the time of purchase.

In the interim, the State will expedite returns of State taxes paid on diesel fuel purchase for off-road use, and encourages users to apply weekly for their refund.

The Governor directed the Maine Department of Transportation to identify useable road networks that can tolerate Gross Weight of 105,000 lbs. for trucks registered in Maine hauling forest products, with assurance that those trucks are safe and well-maintained.

Under the Declaration, the Governor will petition President George W. Bush to waive federal weight restrictions for four months on I-95 and I-395 north of Augusta. (The state weight limit is 100,000 lbs.; the federal limit is 80,000 lbs.)

The Governor will submit emergency legislation in January to speed up the reimbursement for 2007 property taxes paid on forest products equipment eligible under the BETR program. Rather than waiting for reimbursement until the start of the next fiscal year, the legislation will make funds available early next year to those in the forest industry. Examples of the type of equipment that would qualify for both programs would be: saw mills, paper machines and related equipment, non-excised road equipment road equipment, skidders, log loaders, bulldozers, harvesters, chippers, chain saws, trailers, chains and tire chains.

The Governor will submit emergency legislation to rescind the sales tax on the purchase of parts and supplies needed to repair and maintain forestry trucks and equipment; sales tax exemption for motor vehicle parts, accessories and tires purchased for motor vehicles owned and operated by businesses in the logging and forest products industries. The exemption is estimated to cost $160,000 in FY 2009.

The Administration will postpone proposed rule changes to Chapter 4, Maine Motor Carrier Safety Regulation until the spring of 2008.

The Governor will ensure representation for the forest products industry during the development of long-term strategies for energy independence in Maine based on the Governor’s plan for creating a sustainable energy culture in our State.

“We can’t do everything ourselves. This is a national issue that demands national attention,” Governor Baldacci said. “But we’re going to do what we can, as soon as we can to protect this vital industry.”

State Sen. Elizabeth Mitchell of Augusta also attended the meeting.

“The Legislature shares the Governor’s concerns about the high cost of diesel,” Sen. Mitchell said. “We know that people are hurting, and we will work closely with the Governor to find meaningful and equitable solutions to these problems. In addition, we must all work together to keep the pressure on Washington to address the high cost of fuel this winter.”

State Sen. Elizabeth Schneider participated by telephone.

"I'm glad that Senate leadership and the Governor are working together to respond to calls for assistance,” Sen. Schneider said. “I appreciate the leadership of the Governor in stepping up to the plate to tackle soaring costs of fuel."

Source: Maine Governor

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