Text: SSB1147
Text: SSB1149
Senate Study Bill 1148
SENATE FILE
BY (PROPOSED COMMITTEE ON
AGRICULTURE BILL BY
CHAIRPERSON SENG)
A BILL FOR
1 An Act relating to the promotion of biodiesel fuel, by
2 providing for tax credits to retail dealers and payments to
3 biodiesel producers, making an appropriation, providing a
4 penalty and including effective date provisions.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 DIVISION I
1 2 BIODIESEL BLENDED FUEL TAX CREDIT
1 3 Section 1. Section 422.11P, Code 2011, is amended by adding
1 4 the following new subsection:
1 5 NEW SUBSECTION. 1A. For purposes of this section, biodiesel
1 6 fuel shall be classified in the same manner as provided in
1 7 section 214A.2.
1 8 Sec. 2. Section 422.11P, subsection 2, paragraph a,
1 9 subparagraph (2), Code 2011, is amended by striking the
1 10 subparagraph.
1 11 Sec. 3. Section 422.11P, subsection 2, paragraph b, Code
1 12 2011, is amended to read as follows:
1 13 b. The tax credit shall apply to biodiesel blended fuel
1 14 formulated with a minimum percentage of two percent by volume
1 15 of biodiesel classified as B=5 or higher, if the formulation
1 16 biodiesel blended fuel meets the standards provided in
1 17 requirements for that classification as provided in section
1 18 214A.2.
1 19 Sec. 4. Section 422.11P, subsection 3, Code 2011, is amended
1 20 to read as follows:
1 21 3.a. The tax credit shall be calculated separately for
1 22 each retail motor fuel site operated by the retail dealer.
1 23 b. The amount of the tax credit is three cents a designated
1 24 amount multiplied by the total number of gallons of biodiesel
1 25 blended fuel sold and dispensed by the retail dealer through
1 26 all motor fuel pumps located at a retail motor fuel site
1 27 operated by the retail dealer during the retail dealer's tax
1 28 year. The designated amount is as follows:
1 29 a. For biodiesel blended fuel classified as B=5 or higher
1 30 but not higher than B=9, two cents.
1 31 b. For biodiesel blended fuel classified as B=10 or higher
1 32 but not higher than B=99, four cents.
1 33 Sec. 5. Section 422.11P, subsection 6, Code 2011, is amended
1 34 to read as follows:
1 35 6. This section is repealed January 1, 2012 2015.
2 1 Sec. 6. Section 422.33, subsection 11C, paragraph c, Code
2 2 2011, is amended by striking the paragraph.
2 3 Sec. 7. Section 422.33, subsection 11C, paragraph d, Code
2 4 2011, is amended to read as follows:
2 5 d. This subsection is repealed on January 1, 2012 2015.
2 6 Sec. 8. FUTURE APPLICABILITY DATE. Section 422.11P and
2 7 section 422.33, as amended by this Act, shall apply to tax
2 8 years beginning on or after January 1, 2012.
2 9 Sec. 9. TAX CREDIT AVAILABILITY UNDER PRIOR LAW. A retail
2 10 dealer who could claim a biodiesel blended fuel tax credit
2 11 under section 422.11P or 422.33, subsection 11C, as that
2 12 section or subsection exists on June 30, 2011, may continue
2 13 to claim the tax credit for biodiesel blended fuel sold and
2 14 dispensed by the retail dealer until December 31, 2011, as
2 15 provided in that section or subsection.
2 16 Sec. 10. 2006 Iowa Acts, chapter 1142, section 49,
2 17 subsection 5, is amended to read as follows:
2 18 5. For This subsection applies to a retail dealer who
2 19 may claim a biodiesel blended fuel tax credit under section
2 20 422.11P or 422.33, subsection 11C, as enacted in this Act or
2 21 as subsequently amended, in calendar year 2011 2014 and whose
2 22 tax year ends prior to December 31, 2011, the 2014. The retail
2 23 dealer may continue to claim the tax credit in the retail
2 24 dealer's following tax year. In that case, the tax credit
2 25 shall be calculated in the same manner as provided in section
2 26 422.11P or 422.33, subsection 11C, as enacted in this Act
2 27 that section or subsection exists on December 31, 2014, for
2 28 the remaining period beginning on the first day of the retail
2 29 dealer's new tax year until December 31, 2011 2014. For that
2 30 remaining period, the tax credit shall be calculated in the
2 31 same manner as a retail dealer whose tax year began on the
2 32 previous January 1 and who is calculating the tax credit on
2 33 December 31, 2011 2014.
2 34 Sec. 11. EFFECTIVE DATE. This division of this Act takes
2 35 effect January 1, 2012.
3 1 DIVISION II
3 2 BIODIESEL PRODUCTION PAYMENT
3 3 Sec. 12. Section 422.7, Code 2011, is amended by adding the
3 4 following new subsection:
3 5 NEW SUBSECTION. 54. Subtract, to the extent included, the
3 6 amount of any biodiesel production payment provided pursuant
3 7 to section 422.132.
3 8 Sec. 13. Section 422.35, Code 2011, is amended by adding the
3 9 following new subsection:
3 10 NEW SUBSECTION. 25. Subtract, to the extent included, the
3 11 amount of any biodiesel production payment provided pursuant
3 12 to section 422.132.
3 13 Sec. 14. NEW SECTION. 422.131 Definitions.
3 14 As used in this division, unless the context otherwise
3 15 requires:
3 16 1. "Biodiesel" and "biodiesel blended fuel" means the same
3 17 as defined in section 214A.1.
3 18 2. "Biodiesel producer" means a person engaged in the
3 19 manufacturing of biodiesel who has registered with the United
3 20 States environmental protection agency as a manufacturer
3 21 according to the requirements in 40 C.F.R. { 79.4.
3 22 Sec. 15. NEW SECTION. 422.132 Biodiesel production payment.
3 23 1. A biodiesel producer may receive a biodiesel production
3 24 payment by doing all of the following:
3 25 a. Producing biodiesel for use in biodiesel blended fuel.
3 26 b. Complying with the requirements of this section and rules
3 27 adopted by the department pursuant to this section.
3 28 2. The amount of the biodiesel production payment shall be
3 29 calculated by multiplying a designated rate by the total number
3 30 of gallons of biodiesel produced by the biodiesel producer
3 31 in this state during each quarter of a calendar year. The
3 32 designated rate shall be as follows:
3 33 a. For the calendar year 2012, three cents.
3 34 b. For the calendar year 2013, three cents.
3 35 c. For the calendar year 2014, two cents.
4 1 3. To receive a biodiesel production payment, the biodiesel
4 2 producer must file a claim for each quarterly period of a
4 3 calendar year as required by rules adopted by the department
4 4 and on forms prescribed by the department. The claim must be
4 5 filed on or before the last day of the month following the
4 6 close of the quarterly period.
4 7 4. There is appropriated from moneys in the general fund of
4 8 the state, which are not otherwise obligated or encumbered, an
4 9 amount sufficient to provide biodiesel production payments to
4 10 biodiesel producers as provided in this section.
4 11 Sec. 16. NEW SECTION. 422.133 Penalty.
4 12 A person fraudulently claiming a payment in excess of the
4 13 entitled amount of a biodiesel production payment is guilty of
4 14 a serious misdemeanor.
4 15 Sec. 17. NEW SECTION. 422.134 Repeal.
4 16 This division is repealed on January 1, 2015.
4 17 Sec. 18. DIRECTIONS TO CODE EDITOR. The Code editor shall
4 18 codify sections 422.131 and 422.132 as a new division in
4 19 chapter 422.
4 20 Sec. 19. EFFECTIVE DATE. This division of this Act is
4 21 effective on January 1, 2012.
4 22 EXPLANATION
4 23 GENERAL. This bill provides for the promotion of biodiesel
4 24 used in the manufacture of motor fuel which is a blend of
4 25 diesel fuel and biodiesel (biodiesel blended fuel). Biodiesel
4 26 fuel is designated B=xx where "xx" is the volume percent of
4 27 biodiesel (Code section 214A.2). For example, all biodiesel
4 28 blended fuel must be classified as B=1 or higher, meaning at
4 29 least 1 percent of biodiesel blended fuel by volume must be
4 30 biodiesel. The provisions of the bill are administered by the
4 31 department of revenue.
4 32 The bill includes two divisions. First, the bill amends
4 33 current provisions which establish a biodiesel blended fuel
4 34 tax credit for retail dealers, and second, the bill provides
4 35 payments to biodiesel producers.
5 1 DIVISION I ==== BIODIESEL BLENDED FUEL TAX CREDIT. Under
5 2 current law a retail dealer who sells and dispenses diesel fuel
5 3 from a motor fuel pump is eligible for a biodiesel blended fuel
5 4 tax credit. The tax credit is multiplied by taking a constant
5 5 rate of 3 cents multiplied by the number of gallons of B=2 or
5 6 higher sold and dispensed. The tax credit is due to expire on
5 7 January 1, 2012.
5 8 The bill eliminates an eligibility requirement specifying
5 9 that the retail dealer of diesel fuel must sell and dispense
5 10 50 percent or more biodiesel blended fuel during the tax year.
5 11 It increases the minimum biodiesel classification from B=2 to
5 12 B=5. The amount of the tax credit is changed depending upon
5 13 the classification. The designated rate for B=5 to B=9 is 2
5 14 cents and the designated rate for B=10 to B=99 is 4 cents. The
5 15 tax credit's expiration date is extended to January 1, 2015.
5 16 DIVISION II ==== BIODIESEL PRODUCTION PAYMENT. The bill
5 17 creates a program to pay biodiesel producers for production.
5 18 The amount of the payment is calculated by multiplying a
5 19 designated rate by the total number of gallons of biodiesel
5 20 produced during each quarter of a calendar year, beginning
5 21 in calendar year 2012 and ending in calendar year 2014. The
5 22 bill appropriates moneys from the general fund of the state to
5 23 finance the payments. The program terminates on January 1,
5 24 2015. A person fraudulently claiming a payment in excess of
5 25 the entitled amount of a biodiesel production payment is guilty
5 26 of a serious misdemeanor. A serious misdemeanor is punishable
5 27 by confinement for no more than one year and a fine of at least
5 28 $315 but not more than $1,875.
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Text: SSB1147
Text: SSB1149