2005 Legislation
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HOUSE BILL NO. 322 – Gasohol, definition revised


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Bill Status

H0322...............................................by REVENUE AND TAXATION
GASOHOL - Amends existing law to revise the definition of gasohol in the
motor fuels tax law as gasoline blended with ten percent or more of
anhydrous ethanol.
03/11    House intro - 1st rdg - to printing
03/14    Rpt prt - to Transp
03/17    Rpt out - rec d/p - to 2nd rdg
03/18    2nd rdg - to 3rd rdg
    Rls susp - PASSED - 68-0-2
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon,
      Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
      Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest,
      Henderson, Jaquet, Kemp, Lake, LeFavour, Loertscher, Martinez,
      Mathews, McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen,
      Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
      Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley,
      Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail,
      Wills, Wood
      NAYS -- None
      Absent and excused -- Jones, Mr. Speaker
    Floor Sponsor - Moyle
    Title apvd - to Senate
03/21    Senate intro - 1st rdg - to Transp
03/23    Rpt out - rec d/p - to 2nd rdg
03/24    2nd rdg - to 3rd rdg
03/25    3rd rdg - PASSED - 33-0-1, 1 vacancy
      AYES -- Brandt, Broadsword, Bunderson, Burkett, Burtenshaw, Cameron,
      Coiner, Compton, Corder, Darrington, Davis, Gannon, Geddes, Goedde,
      Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge, Malepeai,
      Marley, McGee, McKenzie, Pearce, Richardson, Schroeder, Stegner,
      Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- Andreason, (District 21 seat vacant)
    Floor Sponsor - McGee
    Title apvd - to House
03/28    To enrol
03/29    Rpt enrol - Sp signed
03/30    Pres signed
03/31    To Governor
04/06    Governor signed
         Session Law Chapter 293
         Effective: 04/06/05

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 322
                             BY REVENUE AND TAXATION COMMITTEE
  1                                        AN ACT
  4    Be It Enacted by the Legislature of the State of Idaho:
  5        SECTION  1.  That  Section 63-2401, Idaho Code, be, and the same is hereby
  6    amended to read as follows:
  7        63-2401.  DEFINITIONS. In this chapter:
  8        (1)  "Aircraft engine fuel" means:
  9        (a)  Aviation gasoline, defined as any mixture  of  volatile  hydrocarbons
 10        used in aircraft reciprocating engines; and
 11        (b)  Jet  fuel,  defined  as  any mixture of volatile hydrocarbons used in
 12        aircraft turbojet and turboprop engines.
 13        (2)  "Biodiesel" means any fuel or mixture of fuels that is:
 14        (a)  Derived in whole or in part from agricultural products or animal fats
 15        or the wastes of such products; and
 16        (b)  Suitable for use as fuel in diesel engines.
 17        (3)  "Bond" means:
 18        (a)  A surety bond, in an amount required by this chapter,  duly  executed
 19        by  a  surety company licensed and authorized to do business in this state
 20        conditioned upon faithful performance of all requirements of this chapter,
 21        including the payment of all taxes, penalties and other obligations  aris-
 22        ing out of the provisions of this chapter; or
 23        (b)  A  deposit  with the commission by any person required to be licensed
 24        pursuant to this chapter under terms and conditions as the commission  may
 25        prescribe,  of a like amount of lawful money of the United States or bonds
 26        or other obligations of the United States, the  state  of  Idaho,  or  any
 27        county of the state; or
 28        (c)  An  irrevocable  letter  of credit issued to the commission by a bank
 29        doing business in this state payable to the state upon failure of the per-
 30        son on whose behalf it is issued to remit any payment due under the provi-
 31        sions of this chapter.
 32        (4)  "Commercial motor boat" means any boat, equipped with a motor,  which
 33    is  wholly  or  partly  used in a profit-making enterprise or in an enterprise
 34    conducted with the intent of making a profit.
 35        (5)  "Commission" means the state tax commission of the state of Idaho.
 36        (6)  "Distributor" means any person who receives motor fuel in this state,
 37    and includes a special fuels dealer. Any person who sells or receives  gaseous
 38    fuels  will  not be considered a distributor unless the gaseous fuel is deliv-
 39    ered into the fuel supply tank or tanks of a motor vehicle not then  owned  or
 40    controlled by him.
 41        (7)  "Dyed  fuel"  means diesel fuel that is dyed pursuant to requirements
 42    of the internal revenue service, or the environmental protection agency.
 43        (8)  "Exported" means delivered by truck or rail across the boundaries  of
  1    this  state  by  or for the seller or purchaser from a place of origin in this
  2    state.
  3        (9)  "Gasohol" means gasoline containing a mixture of no more than blended
  4    with ten percent (10%) blend or more of anhydrous ethanol.
  5        (10) "Gasoline" means any mixture of volatile hydrocarbons suitable  as  a
  6    fuel  for  the  propulsion  of  motor vehicles or motor boats. "Gasoline" also
  7    means aircraft engine fuels when used for the operation or propulsion of motor
  8    vehicles or motor boats and includes gasohol, but  does  not  include  special
  9    fuels.
 10        (11) "Highways"  means  every  place of whatever nature open to the use of
 11    the public as a matter of right for the purpose of vehicular travel  which  is
 12    maintained  by  the  state of Idaho or an agency or taxing subdivision or unit
 13    thereof or the federal government or an  agency  or  instrumentality  thereof.
 14    Provided,  however, if the cost of maintaining a roadway is primarily borne by
 15    a special fuels user who operates motor vehicles on that roadway pursuant to a
 16    written contract during any period of time that a special fuels tax  liability
 17    accrues  to  the  user, such a roadway shall not be considered a "highway" for
 18    any purpose related to calculating that user's special fuels' tax liability or
 19    refund.
 20        (12) "Idling" means the period of time greater than twenty-five hundredths
 21    (.25) of an hour when a motor vehicle is stationary with the engine  operating
 22    at  less  than  one thousand two hundred (1,200) revolutions per minute (RPM),
 23    without the power take-off (PTO) unit engaged, with the  transmission  in  the
 24    neutral or park position, and with the parking brake set.
 25        (13) "Imported"  means delivered by truck or rail across the boundaries of
 26    this state by or for the seller or purchaser from a place  of  origin  outside
 27    this state.
 28        (14) "International  fuel tax agreement" and "IFTA" mean the international
 29    fuel tax agreement required by the  intermodal  surface  transportation  effi-
 30    ciency  act  of  1991,  Public Law 102-240, 105 Stat. 1914, and referred to in
 31    title 49, U.S.C., section  31701,  including  subsequent  amendments  to  that
 32    agreement.
 33        (15) "Jurisdiction"  means  a  state of the United States, the District of
 34    Columbia, a province or territory of Canada, or a state, territory  or  agency
 35    of Mexico in the event that the state, territory or agency participates in the
 36    international fuel tax agreement.
 37        (16) "Licensed  distributor"  means  any  distributor  who  has obtained a
 38    license under the provisions of section 63-2427A, Idaho Code.
 39        (17) "Motor fuel" means gasoline, special fuels, aircraft engine fuels  or
 40    any  other  fuels  suitable for the operation or propulsion of motor vehicles,
 41    motor boats or aircraft.
 42        (18) "Motor vehicle" means every self-propelled vehicle designed for oper-
 43    ation, or required to be licensed for operation, upon a highway.
 44        (19) "Person" means any individual, firm, fiduciary, copartnership,  asso-
 45    ciation,  limited liability company, corporation, governmental instrumentality
 46    including the state and all of its agencies and political subdivisions, or any
 47    other group or combination acting as a unit, and the plural  as  well  as  the
 48    singular number, unless the intent to give a more limited meaning is disclosed
 49    by the context. Whenever used in any clause prescribing and imposing a fine or
 50    imprisonment,  or  both,  the term "person" as applied to an association means
 51    the partners or members, and as applied to corporations, the officers.
 52        (20) "Recreational vehicle" means  a  snowmobile  as  defined  in  section
 53    67-7101,  Idaho Code; a motor driven cycle or motorcycle as defined in section
 54    49-114, Idaho Code; any recreational vehicle as  defined  in  section  49-119,
 55    Idaho  Code;  and  an all-terrain vehicle as defined in section 67-7101, Idaho
  1    Code.
  2        (21) "Retail dealer" means any person engaged in the retail sale of  motor
  3    fuels to the public or for use in the state.
  4        (22) "Special fuels" means:
  5        (a)  All fuel suitable as fuel for diesel engines;
  6        (b)  A  compressed  or  liquified gas obtained as a byproduct in petroleum
  7        refining or natural gasoline manufacture, such as butane, isobutane,  pro-
  8        pane, propylene, butylenes, and their mixtures; and
  9        (c)  Natural gas, either liquid or gas, and hydrogen, used for the genera-
 10        tion of power for the operation or propulsion of motor vehicles.
 11        (23) "Special  fuels  dealer"  means "distributor" under subsection (6) of
 12    this section.
 13        (24) "Special fuels user" means any person who uses  or  consumes  special
 14    fuels for the operation or propulsion of motor vehicles owned or controlled by
 15    him upon the highways of this state.
 16        (25) "Use" means either:
 17        (a)  The  receipt,  delivery or placing of fuels by a licensed distributor
 18        or a special fuels dealer into the fuel supply tank or tanks of any  motor
 19        vehicle  not  owned  or controlled by him while the vehicle is within this
 20        state; or
 21        (b)  The consumption of fuels in the operation or propulsion  of  a  motor
 22        vehicle on the highways of this state.
 23        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
 24    declared to exist, this act shall be in full force and effect on and after its
 25    passage and approval.

Statement of Purpose / Fiscal Impact

     REPRINT        REPRINT        REPRINT        REPRINT

                       STATEMENT OF PURPOSE

                             RS 15028

The original definition of "Gasohol" contemplated up to but no
more than ten percent (10%) anhydrous ethanol blended with
gasoline.  With the advent of advanced technological design, some
vehicles being produced today can run on eighty-five percent
(85%) ethanol blends.  Burning this fuel (E85) in vehicles
designed for use of E85 provides greater environmental air
quality benefits than vehicles burning the 10% ethanol blends. 
Increased production of E85 vehicles and use of E85 fuel will
provide benefits to air quality.  This legislation provides the
same intent as originally drafted with the inclusion of E85 fuel
being eligible to receive the same tax credit as 10% blended
fuel.  E85 will still be limited to the 10% cap but will be
eligible to receive the same credit as 10% blended fuel.  In
addition, the state and federal fleet of vehicles using E85 fuel
will be in compliance with federal law.  Finally, the credit will
allow E85 fuel to be priced the same as, or near the same as, 10%
blended fuel at the fueling station.  Currently there is only one
station providing E85 fuel in Idaho.  As demand increases there
will be additional stations.

                           FISCAL NOTE

The fiscal impact to the state will be the same as providing one
additional 10% blended fuel pump, around $600.00/year to the
general fund.


Name:  Rep. Mike Moyle 
Phone: (208) 332-1000
       Charley D. Jones
       (208) 375-0942

STATEMENT OF PURPOSE/FISCAL NOTE                     H 322