Reprinted
February 2, 2010
HOUSE BILL No. 1261
_____
DIGEST OF HB 1261
(Updated February 1, 2010 5:42 pm - DI 113)
Citations Affected: IC 15-11.
Synopsis: Agricultural biomass infrastructure grants. Changes the
name of the E85 fueling station grant fund to the agricultural biomass
infrastructure grant fund. Authorizes the department of agriculture to
award grants from the agricultural biomass infrastructure grant fund for
certain infrastructure used for the production or distribution of biofuels
(fuels produced from biomass). Adds certain definitions. Makes
changes to the definition of a qualified expense. Provides that grants
for biofuels projects may be awarded for infrastructure expenses
incurred after December 31, 2008. Provides that the amount of a grant
for certain infrastructure used for the production or distribution of
biofuels may not exceed the lesser of: (1) 50% of the recipient's
qualified investment; or (2) $100,000. Makes related changes.
Effective: January 1, 2011.
Friend, Pearson
January 12, 2010, read first time and referred to Committee on Agriculture and Rural
Development.
January 26, 2010, reported _ Do Pass.
February 1, 2010, read second time, amended, ordered engrossed.
Reprinted
February 2, 2010
Second Regular Session 116th General Assembly (2010)
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HOUSE BILL No. 1261
A BILL FOR AN ACT to amend the Indiana Code concerning
agriculture and animals.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 15-11-2-3; (10)HB1261.2.1. -->
SECTION 1. IC 15-11-2-3, AS AMENDED BY P.L.71-2009,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2011]: Sec. 3. The department shall do the following:
(1) Provide administrative and staff support for the following:
(A) The state fair board for purposes of carrying out the
director's duties under IC 15-13-5.
(B) The Indiana corn marketing council for purposes of
administering the duties of the director under IC 15-15-12.
(C) The Indiana organic peer review panel under IC 15-15-8.
(D) The Indiana dairy industry development board for
purposes of administering the duties of the director under
IC 15-18-5.
(E) The Indiana land resources council under IC 15-12-5.
(F) The Indiana grain buyers and warehouse licensing agency
under IC 26-3-7.
(G) The Indiana grain indemnity corporation under IC 26-4-3.
(H) The division.
(I) The E85 fueling station agricultural biomass
infrastructure grant program under IC 15-11-11.
(2) Administer the election of state fair board members under
IC 15-13-5.
(3) Administer state programs and laws promoting agricultural
trade.
(4) Administer state livestock or agriculture marketing grant
programs.
(5) Administer economic development efforts for agriculture by
doing the following:
(A) Promoting value added agricultural resources.
(B) Marketing Indiana agriculture to businesses
internationally.
(C) Assisting Indiana agricultural businesses with developing
partnerships with the Indiana economic development
corporation.
(D) Soliciting private funding for selective economic
development and trade initiatives.
(E) Providing for the orderly economic development and
growth of Indiana's agricultural economy.
(F) Facilitating the use of biomass (as defined in
IC 15-11-11-0.7) and algae production systems to generate
renewable energy.
SOURCE: IC 15-11-11-0.3; (10)HB1261.2.2. -->
SECTION 2. IC 15-11-11-0.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2011]: Sec. 0.3. As used in this chapter,
"biofuels" means biomass converted into liquid or gaseous fuels.
SOURCE: IC 15-11-11-0.5; (10)HB1261.2.3. -->
SECTION 3. IC 15-11-11-0.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2011]: Sec. 0.5. As used in this chapter,
"biofuels project" means a project to produce or distribute
biofuels through the use of a renewable energy system
infrastructure.
SOURCE: IC 15-11-11-0.7; (10)HB1261.2.4. -->
SECTION 4. IC 15-11-11-0.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2011]: Sec. 0.7. As used in this chapter,
"biomass" means agriculturally based sources of renewable
energy, including the following:
(1) Agricultural crops.
(2) Agricultural wastes and residues.
(3) Wood and wood byproducts, including the following:
(A) Wood residue.
(B) Forest thinning.
(C) Mill residue wood.
(4) Animal wastes.
(5) Animal byproducts.
(6) Aquatic plants.
(7) Algae.
The term does not include biomass used in direct-fired (direct
combustion) or co-firing systems.
SOURCE: IC 15-11-11-3; (10)HB1261.2.5. -->
SECTION 5. IC 15-11-11-3, AS ADDED BY P.L.2-2008,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2011]: Sec. 3. As used in this chapter, "location" refers
to one (1) or more parcels of land that:
(1) have a common access to a public highway; and
(2) are or would appear to the reasonable person individual
making an observation from a public highway to be part of the
same business.
SOURCE: IC 15-11-11-4.3; (10)HB1261.2.6. -->
SECTION 6. IC 15-11-11-4.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2011]: Sec. 4.3. As used in this chapter,
"person" means:
(1) an individual;
(2) an agricultural producer;
(3) a partnership;
(4) a corporation;
(5) a limited liability company; or
(6) an unincorporated association.
SOURCE: IC 15-11-11-5; (10)HB1261.2.7. -->
SECTION 7. IC 15-11-11-5, AS ADDED BY P.L.2-2008,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2011]: Sec. 5.
(a) As used in this chapter, "qualified
investment" refers to
either of the following:
(1) An ordinary and usual expense that is incurred after June 30,
2007, to do either of the following:
(1) (A) Purchase any part of a renewable fuel compatible
fueling station for the purpose of:
(A) (i) installing the new renewable fuel compatible fuel
station at a location on which a fueling station is not located;
or
(B) (ii) converting an existing fueling station that is not a
renewable fuel compatible fueling station into a fueling
station that is a renewable fuel compatible fueling station.
(2) (B) Refit any part of a fueling station that is not renewable
fuel compatible as a renewable fuel compatible fueling station,
including the costs of cleaning storage tanks and piping to
remove petroleum sludge and other contaminants.
(2) An ordinary and ususal expense that is incurred after
December 31, 2008, for the installation of a renewable energy
system infrastructure that uses commercial technologies to
produce or distribute biofuels.
(b) For the purposes of subsection (a)(2), the term does not
include a cost or expense for:
(1) research and development;
(2) land acquisition;
(3) agricultural tillage equipment;
(4) salaries; or
(5) other noninfrastructure purposes determined ineligible by
the department.
SOURCE: IC 15-11-11-7; (10)HB1261.2.8. -->
SECTION 8. IC 15-11-11-7, AS ADDED BY P.L.91-2008,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2011]: Sec. 7. (a) Subject to subsection (c), the
department may award a grant under this chapter to a person or unit
that:
(1) makes a qualified investment under section 5(a)(1) of this
chapter and
(2) places the qualified investment in service in Indiana for the
dispensing of E85 base fuel into the fuel tanks of motor vehicles;
or
(2) places a qualified investment under section 5(a)(2) of this
chapter in service in Indiana for the production or
distribution of biofuels.
(b) A recipient of a grant awarded under this chapter must comply
with any guidelines developed by the department and the office of
energy and defense development.
(c) The department may not, under this chapter, award:
(1) more than one (1) grant under this chapter for a renewable
fuel compatible fueling station at a particular location; or
(2) more than one (1) grant for a particular biofuels project.
SOURCE: IC 15-11-11-8; (10)HB1261.2.9. -->
SECTION 9. IC 15-11-11-8, AS ADDED BY P.L.91-2008,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2011]: Sec. 8. (a) Subject to
subsection subsections (b)
and (c), the department and the office of energy and defense
development shall determine the amount of each grant awarded under
this chapter.
(b) The amount of a grant awarded under this chapter for a
renewable fuel compatible fueling station at a location may not
exceed the lesser of the following:
(1) The amount of the grant recipient's qualified investment
under section 5(a)(1) of this chapter for the location.
(2) Twenty thousand dollars ($20,000).
(c) A grant awarded under this chapter for a biofuels project
must be awarded on a competitive basis and may not exceed the
lesser of:
(1) fifty percent (50%) of the grant recipient's qualified
investment under section 5(a)(2) of this chapter for the
biofuels project; or
(2) one hundred thousand dollars ($100,000).
(c) (d) The amount of a grant awarded under this chapter for a
renewable fuel compatible fueling station at a location may be less
than the amount of the grant recipient's qualified investment under
section 5(a)(1) of this chapter for the location. The amount of a
grant awarded under this chapter for a biofuels project may be less
than the amount of the grant recipient's qualified investment under
section 5(a)(2) of this chapter for the biofuels project.
SOURCE: IC 15-11-11-11; (10)HB1261.2.10. -->
SECTION 10. IC 15-11-11-11, AS ADDED BY P.L.2-2008,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2011]: Sec. 11. (a) The
E85 fueling station agricultural
biomass infrastructure grant fund is established to provide grants
under this chapter.
(b) The fund consists of appropriations from the general assembly.
(c) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public funds may be invested.
(d) Money in the fund at the end of a state fiscal year does not revert
to the state general fund but remains in the fund to be used exclusively
for purposes of this chapter.
(e) Money in the fund is continuously appropriated for the purposes
of this chapter.