SF 2101 (LSB 5791SS (3) 85)

SENATE FILE 2101

BY  BOWMAN

(COMPANION TO LSB 5791HH BY BYRNES)

A BILL FOR

An Act concerning the excise tax on compressed natural gas and liquefied natural gas used as special fuel.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 452A.3, subsection 4, Code 2014, is amended to read as follows:
   4.  For compressed natural gas used as a special fuel, the rate of tax that is equivalent to the motor fuel tax shall be sixteen is twenty-one cents per hundred gasoline gallon equivalent. A gasoline gallon equivalent of compressed natural gas is five and sixty-six hundredths pounds or one hundred twenty-six and sixty-seven hundredths cubic feet adjusted to measured at a base temperature of sixty degrees Fahrenheit and a pressure of fourteen and seventy-three hundredths pounds per square inch absolute.
    Sec. 2.  Section 452A.3, Code 2014, is amended by adding the following new subsection:
   NEW SUBSECTION.  4A.  For liquefied natural gas used as a special fuel, the rate of tax that is equivalent to the motor fuel tax is twenty-two and one-half cents per diesel gallon equivalent. A diesel gallon equivalent of liquefied natural gas is six and six hundredths pounds of liquefied natural gas.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill revises the method of calculating the excise tax on compressed natural gas used as a special fuel and establishes an excise tax on liquefied petroleum gas used as a special fuel. Both rates are calculated to be equivalent to the motor fuel tax.
   For compressed natural gas used as a special fuel, the rate of tax that is equivalent to the motor fuel tax is 21 cents per gasoline gallon equivalent. A gasoline gallon equivalent of compressed natural gas is 5.66 pounds or 126.67 cubic feet measured at a base temperature of 60 degrees Fahrenheit and a pressure of 14.73 pounds per square inch absolute. (Under current law, the rate of the tax is 16 cents per 100 cubic feet adjusted to a base temperature of 60 degrees Fahrenheit and a pressure of 14.73 pounds per square inch absolute.)
   For liquefied natural gas used as a special fuel, the rate of tax that is equivalent to the motor fuel tax is 22.5 cents per diesel gallon equivalent. A diesel gallon equivalent of liquefied natural gas is 6.06 pounds of liquefied natural gas.