2007 Legislation
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HOUSE BILL NO. 151 – Biofuels supply enhancement prog

HOUSE BILL NO. 151

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Bill Status



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

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                              IN 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 / Fiscal Impact



                       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