AUGUSTA (AP) – Standing next to a big Volvo cab owned by Yankee Pride Trucking, Gov. John Baldacci on Thursday announced a state loan program that can help truckers save thousands of dollars on diesel fuel, extend the service of their trucks and improve the environment at the same time.

The governor said $1.4 million is now available from three state agencies to small Maine businesses for investments in technology or other improvements that show energy savings. Examples include insulation, high-efficiency boilers and solar systems.

But with truckers reeling from diesel prices that hover at around $4.80 per gallon, Baldacci and other officials highlighted energy-saving equipment for big trucks through the program.

Baldacci said the 3 percent loans can be used to purchase auxiliary power units and small engines which power tractors’ heaters, air conditioners and other electrical accessories and enable drivers to turn off the much larger and more fuel-hungry diesel truck motors.

APUs cost more than $10,000, but truckers can recoup the savings fast, especially with today’s runaway fuel prices.

Diana Adams of L & D Trucking said her Caribou business saved $7,787 last year, based on a diesel price of $2.81 a gallon. But now, with prices where they are, savings from APUs will be well over $13,000, she said.

“This is a huge savings for the industry,” said Larry Sidelinger, owner of Yankee Pride in Nobleboro. With present diesel prices, Sidelinger said he can pay back his loan in 13 months and use the savings to cover his truck payments.

The trucking industry nationally is looking for ways to cut fuel costs. The American Trucking Association planned a “fuel strategies workshop” this month to help fleet operators cope with soaring prices. The ATA says some companies are installing devices that prevent drivers from speeding.

, and companies are also buying APUs and offering bonuses to drivers who cut down on idling.

Maine Public Utilities Commission Chairwoman Sharon Reishus said it’s estimated that each truck equipped with an APU will save 2,900 gallons of diesel fuel per year, a figure backed up by the truckers attending Thursday’s news conference. The loans are provided through the PUC, the state Department of Environmental Protection and Finance Authority of Maine.

The APUs burn less fuel and discharge fewer pollutants into the air, benefiting the environment, DEP Commissioner David Littell noted. He said that by using APUs, a trucker can get another 100,000 hours out of his engine.

Littell also noted that the program to help truckers get APUs comes just months after the Legislature enacted a law that bars commercial trucks from idling for more than five minutes in any 60-minute period. The law, modeled after New Hampshire legislation, allows some exceptions.

Baldacci, acknowledging the impact high fuel prices have on the whole economy, said, “We need our Maine truckers to stay on the road, and this initiative can help keep them rolling.”

With FAME’s participation, the loan cap has increased from $35,000 to $250,000. The application deadline is Dec. 31.

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On the Net:

Finance Authority of Maine: www.famemaine.com

Department of Environmental Protection: www.maine.gov/dep

Public Utilities Commission: www.maine.gov/mpuc

Efficiency Maine: www.efficiencymaine.com

AP-ES-06-05-08 1636EDT