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H0151.................................by ENVIRONMENT, ENERGY AND TECHNOLOGY ALTERNATIVE FUEL - Adds to existing law to create the Idaho Biofuels Supply Enhancement Program in the Department of Agriculture. 02/09 House intro - 1st rdg - to printing 02/12 Rpt prt - to Transp
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature First Regular Session - 2007IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 151 BY ENVIRONMENT, ENERGY AND TECHNOLOGY COMMITTEE 1 AN ACT 2 RELATING TO BIOFUELS; AMENDING CHAPTER 2, TITLE 71, IDAHO CODE, BY THE ADDI- 3 TION OF A NEW SECTION 71-241A, IDAHO CODE, TO PROVIDE A SHORT TITLE, TO 4 CREATE THE IDAHO BIOFUELS SUPPLY ENHANCEMENT PROGRAM IN THE DEPARTMENT OF 5 AGRICULTURE, TO PROVIDE INCENTIVES, TO PROVIDE FOR ADMINISTRATION, TO PRO- 6 VIDE LIMITATIONS AND TO PROVIDE A SUNSET PROVISION. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. That Chapter 2, Title 71, Idaho Code, be, and the same is 9 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 10 ignated as Section 71-241A, Idaho Code, and to read as follows: 11 71-241A. THE IDAHO CONSUMER CHOICE AND FUEL INDEPENDENCE ACT OF 2007 -- 12 BIOFUELS SUPPLY ENHANCEMENT PROGRAM. (1) This act shall be known and cited as 13 the "Idaho Consumer Choice and Fuel Independence Act of 2007." 14 (2) The Idaho biofuels supply enhancement program is hereby created in 15 the department of agriculture to encourage the use of locally produced agri- 16 cultural products as feedstock for in-state biofuel production. 17 (3) Incentives provided under this chapter shall only be available to 18 fifteen million (15,000,000) gallons of biofuel production per year, per 19 biofuel production facility with a situs in Idaho, regardless of nameplate 20 capacity of the plant. 21 (4) Incentives provided under this section shall only apply to biofuels 22 that are produced from feedstock grown in Idaho. 23 (5) The department of agriculture shall administer this program and shall 24 promulgate necessary rules for the implementation of the program, including 25 reporting requirements and documentation required for certification of produc- 26 tion and Idaho grown feedstock usage. 27 (6) (a) Production of ethanol shall be granted a counter-cyclical pro- 28 ducer incentive based on the wholesale price of ethanol in Idaho as 29 reported by the oil price information service, or other report as deter- 30 mined by the director. 31 (b) If the wholesale price of ethanol in Idaho is: 32 (i) Above $1.50 per gallon, no incentive will be paid; 33 (ii) Between $1.40 and $1.49, 5¢ per gallon incentive will be paid; 34 (iii) Between $1.30 and $1.39, 15¢ per gallon incentive will be paid; 35 (iv) Between $1.20 and $1.29, 25¢ per gallon incentive will be paid; 36 (v) Below $1.20, 35¢ per gallon incentive will be paid. 37 (7) (a) Production of biodiesel shall be granted a counter-cyclical pro- 38 ducer incentive based on the wholesale price of biodiesel in Idaho as 39 reported by the oil price information service, or other report as deter- 40 mined by the director. 41 (b) If the wholesale price of biodiesel in Idaho is: 42 (i) Above $2.50 per gallon, no incentive will be paid; 43 (ii) Between $2.40 and $2.49, 5¢ per gallon incentive will be paid; 2 1 (iii) Between $2.30 and $2.39, 15¢ per gallon incentive will be paid; 2 (iv) Between $2.20 and $2.29, 25¢ per gallon incentive will be paid; 3 (v) Below $2.20, 35¢ per gallon incentive will be paid. 4 (8) Only the first one hundred fifty million (150,000,000) gallons of 5 nameplate capacity of biofuel production facilities with a situs in Idaho 6 shall be eligible to enroll in the program for producer incentive regardless 7 of plant size. 8 (9) The incentive made available by this section shall only be available, 9 regardless of the date of enrollment, for a period of ten (10) years from the 10 first quarter of actual biofuel production at the plant, or July 1, 2007, 11 whichever is later. 12 (10) After one hundred fifty million (150,000,000) gallons of nameplate 13 capacity of biofuel production facilities with a situs in Idaho have enrolled 14 for the program pursuant to this section and each plant has been eligible 15 under the program for ten (10) years, this section shall be null, void and of 16 no force and effect.
STATEMENT OF PURPOSE RS 16787 The purpose of this legislation is to assist Idaho bio-fuel producers that use Idaho grown feedstock during a period of significantly reduced fuel prices. When fuel prices are similar to those of the past couple of years, the incentive is not available, nor necessary. However, if fuel prices drop significantly, the incentive is available to help service debt on the capital investment for a limited time period. It is in the interest of Idaho to encourage the production of bio-fuels in Idaho to increase fuel supplies to meet our growing demand, and to keep Idaho fuel dollars in Idaho to provide jobs, taxes, expanded agricultural markets and rural economic development. FISCAL NOTE Due to the market-driven nature of this legislation, there is no automatic fiscal impact that would result. Any fiscal impacts would be determined each year based on the price of fuel. For example, this legislation will have no negative fiscal impact on the General Fund during years in which bio-fuels are in price ranges comparable to 2005-2006. If fuel prices decline significantly, the incentive would begin to be available. There are restrictions placed on the amount of fuel that can qualify for the incentive to keep the impact within limits. Fuel would have to drop to less than $1.20/gallon for the maximum incentive to be paid to producers. Contact Name: Sen. McKenzie, Sen. Gannon, Sen.Lodge, Rep. Eskridge, Rep. Stevenson, Rep Wood (35) Phone: 332-1000 STATEMENT OF PURPOSE/FISCAL NOTE H 151