Senate File 401 - Introduced
SENATE FILE
BY COMMITTEE ON WAYS AND MEANS
(SUCCESSOR TO SSB 1288)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to motor vehicle fuel taxes, by exempting small
2 biofuel producers and providing a future repeal.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 2392SV 81
5 da/sh/8
PAG LIN
1 1 Section 1. Section 452A.2, Code 2005, is amended by adding
1 2 the following new subsection:
1 3 NEW SUBSECTION. 24A. a. "Small biofuel producer" means a
1 4 natural person who produces a biofuel for use in powering
1 5 diesel engines, if all of the following apply:
1 6 (1) The biofuel is used for the person's own use or the
1 7 use of other natural persons who reside in the person's
1 8 household.
1 9 (2) The person does not produce more than three hundred
1 10 gallons of biofuel during any year.
1 11 b. This subsection is repealed on July 1, 2010.
1 12 Sec. 2. Section 452A.3, Code 2005, is amended by adding
1 13 the following new subsection:
1 14 NEW SUBSECTION. 1B. An excise tax shall not be imposed on
1 15 a biofuel produced by a small biofuel producer. This
1 16 subsection is repealed July 1, 2010.
1 17 Sec. 3. Section 452A.6, Code 2005, is amended to read as
1 18 follows:
1 19 452A.6 ETHANOL BLENDED GASOLINE AND OTHER PRODUCTS ==
1 20 BLENDER'S LICENSE.
1 21 1. A person other than a supplier, restrictive supplier,
1 22 or importer licensed under this division, who blends gasoline
1 23 with alcohol distilled from cereal grains so that the blend
1 24 contains at least ten percent alcohol distilled from cereal
1 25 grains, shall obtain a blender's license.
1 26 2. a. A person who blends two or more special fuel
1 27 products or sells one hundred percent biofuel shall obtain a
1 28 blender's license. The
1 29 b. Notwithstanding paragraph "a", a small biofuel producer
1 30 is not required to obtain a blender's license under this
1 31 section. This paragraph is repealed on July 1, 2010.
1 32 3. A blender's license required in this section shall be
1 33 obtained by following complying with the procedure under
1 34 section 452A.4 and the. The blender's license is subject to
1 35 the same restrictions as contained in that section. A blender
2 1 shall maintain records as required by section 452A.10 as to
2 2 motor fuel, alcohol, ethanol blended gasoline, and special
2 3 fuels.
2 4 EXPLANATION
2 5 Current Code chapter 452A provides for imposition of excise
2 6 taxes on motor vehicle fuel, including gasoline and diesel
2 7 fuel, as well as an excise tax on so=called special motor
2 8 vehicle fuel, including a biofuel which is an oxygenated
2 9 product derived from soybean oil, vegetable oil, or animal
2 10 fats. The oil is often blended with diesel fuel to create
2 11 biodiesel. A person who manufactures biofuel for use in motor
2 12 vehicles, including as use in a blend, must obtain a blender's
2 13 license. The fuel is also taxed as a special fuel. The rate
2 14 of the excise tax on the use of special fuel is 22.5 cents per
2 15 gallon.
2 16 This bill exempts a small biofuel producer from the
2 17 licensing requirements of Code chapter 452A. It also exempts
2 18 a small producer from paying an excise tax on biofuel produced
2 19 by the small biofuel producer. A small biofuel producer must
2 20 meet a number of qualifications. The producer must be a
2 21 natural person and must use the biofuel in powering diesel
2 22 engines. The biofuel must be used for the person's own use or
2 23 the use of other natural persons who reside in the household.
2 24 In addition, the producer cannot produce more than 300 gallons
2 25 of biofuel during any year. The exemptions are eliminated on
2 26 July 1, 2010.
2 27 LSB 2392SV 81
2 28 da:rj/sh/8