Bill Text: OR HB2936 | 2011 | Regular Session | Engrossed

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Bill Title: Relating to tax treatment of waste materials; prescribing an effective date.

Spectrum: Bipartisan Bill

Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2936 Detail]

Download: Oregon-2011-HB2936-Engrossed.html

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     76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 2334

                           A-Engrossed

                         House Bill 2936
                  Ordered by the House April 18
            Including House Amendments dated April 18

Sponsored by Representatives THOMPSON, HANNA, ROBLAN, SCHAUFLER,
  SPRENGER; Representatives BOONE, G SMITH (Presession filed.)

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.

  Establishes tax credit for transportation of woody biomass from
forest management operations to biofuel producer.
    { - Establishes tax credit for biomass electrical generation
based on kilowatt hours of electricity produced. - }
    { - Establishes tax credit for purchase of equipment to
collect or process reclaimed material or to manufacture product
from reclaimed material. - }
  Applies to tax years beginning on or after January 1, 2011.
    { - Directs State Department of Energy to conduct study of
biomass facility sites in state. - }
   { +  Extends tax credit for purchases of qualifying fuel
blends, biofuel or home heating fuel partly composed of biodiesel
to January 1, 2019.
  Establishes Task Force on Biomass Facility Siting for purposes
related to siting biomass facilities. Requires task force to
submit report to interim committee related to revenue no later
than October 1, 2012. Sunsets on date of convening of 2013
regular session of Legislative Assembly. + }
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to tax treatment of waste materials; creating new
  provisions; amending ORS 315.141 and 469.790 and sections 6 and
  29, chapter 739, Oregon Laws 2007; and prescribing an effective
  date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 469.790 is amended to read:
  469.790. To be eligible for the tax credit under ORS 315.141,
the biomass must be produced or collected in Oregon as a
feedstock for bioenergy or biofuel production in Oregon. The
credit rates for biomass are:
  (1) For oil seed crops, $0.05 per pound.
  (2) For grain crops, including but not limited to wheat, barley
and triticale, $0.90 per bushel.
  (3) For virgin oil or alcohol delivered for production in
Oregon from Oregon-based feedstock, $0.10 per gallon.
  (4) For used cooking oil or waste grease, $0.10 per gallon.
  (5) For wastewater biosolids, $10.00 per wet ton.
  (6) For woody biomass collected from nursery, orchard,
agricultural, forest or rangeland property in Oregon, including
but not limited to prunings, thinning, plantation rotations, log
landing or slash resulting from harvest or forest health
stewardship, $10.00 per green ton.
  (7) For grass, wheat, straw or other vegetative biomass from
agricultural crops, $10.00 per green ton.
  (8) For yard debris and municipally generated food waste, $5.00
per wet ton.
  (9) For animal manure or rendering offal, $5.00 per wet ton.
   { +  (10) For transportation of woody biomass from forest
management operations to a biofuel producer, $4.00 per green
ton. This amount shall be in addition to any amount allowed to
the taxpayer, for the same quantity of biomass, at the credit
rate under subsection (6) of this section and any amount allowed
to the taxpayer as a credit for the production of biofuel from
that biomass. + }
  SECTION 2. ORS 315.141 is amended to read:
  315.141. (1) As used in this section:
  (a) 'Agricultural producer' means a person that produces
biomass in Oregon that is used, in Oregon, as biofuel or to
produce biofuel.
  (b) 'Biofuel' means liquid, gaseous or solid fuels, derived
from biomass, that have been converted into a processed fuel
ready for use as energy by a biofuel producer's customers or for
direct biomass energy use at the biofuel producer's site.
  (c) 'Biofuel producer' means a person that through activities
in Oregon:
  (A) Alters the physical makeup of biomass to convert it into
biofuel;
  (B) Changes one biofuel into another type of biofuel; or
  (C) Uses biomass in Oregon to produce energy.
  (d) 'Biomass' means organic matter that is available on a
renewable or recurring basis and that is derived from:
  (A) Forest or rangeland woody debris from harvesting or
thinning conducted to improve forest or rangeland ecological
health and reduce uncharacteristic stand replacing wildfire risk;
  (B) Wood material from hardwood timber described in ORS 321.267
(3);
  (C) Agricultural residues;
  (D) Offal and tallow from animal rendering;
  (E) Food wastes collected as provided under ORS chapter 459 or
459A;
  (F) Yard or wood debris collected as provided under ORS chapter
459 or 459A;
  (G) Wastewater solids; or
  (H) Crops grown solely to be used for energy.
  (e) 'Biomass' does not mean wood that has been treated with
creosote, pentachlorophenol, inorganic arsenic or other inorganic
chemical compounds or waste, other than matter described in
paragraph (d) of this subsection.
  (f) 'Biomass collector' means a person that collects biomass in
Oregon to be used, in Oregon, as biofuel or to produce biofuel.
   { +  (g) 'Woody biomass' has the meaning given that term in
ORS 526.277. 'Woody biomass' includes biomass as defined in
subsection (1)(d)(A) of this section.
  (h) 'Woody biomass transporter' means a person that transports
woody biomass from forest management operations to a biofuel
producer. + }
  (2) The Director of the State Department of Energy may adopt
rules to define criteria, only as the criteria apply to organic
biomass, to determine additional characteristics of biomass for
purposes of this section.
  (3)(a) An agricultural producer { + , + }   { - or - }  biomass
collector  { + or woody biomass transporter + } shall be allowed
a credit against the taxes that would otherwise be due under ORS
chapter 316 or, if the taxpayer is a corporation, under ORS
chapter 317 or 318 for:
  (A) The production of biomass in Oregon that is used, in
Oregon, as biofuel or to produce biofuel; or
  (B) The collection of biomass { + , or the transportation of
woody biomass, + } in Oregon that is used, in Oregon, as biofuel
or to produce biofuel.
  (b) A credit under this section may be claimed in the tax year
in which the credit is certified under subsection (5) of this
section.
  (c) A taxpayer may be allowed a credit under this section for
more than one of the roles defined in subsection (1) of this
section,  { + for the same quantity of biomass, + } but a biofuel
producer that is not also an agricultural producer or a biomass
collector may not claim a credit under this section.
  (d) Notwithstanding paragraph (a) of this subsection, a tax
credit is not allowed for grain corn, but a tax credit shall be
allowed for other corn material.
  (4) The amount of the credit shall equal the amount certified
under subsection (5) of this section.
  (5)(a) The State Department of Energy may establish by rule
procedures and criteria for determining the amount of the tax
credit to be certified under this section, consistent with ORS
469.790. The department shall provide written certification to
taxpayers that are eligible to claim the credit under this
section.
   { +  (b) A taxpayer seeking a credit for the transportation of
woody biomass shall submit the following:
  (A) Scale tickets that document the net green tons of woody
biomass delivered to a biofuel producer.
  (B) A statement from the owner of the woody biomass that the
taxpayer was authorized to transport the woody biomass. The
statement must include the source of the woody biomass, whether
the land is publicly or privately owned, the type of forest
product treatment employed, the number of forest acres treated
and the number and type of employment positions created or
maintained due to transportation of the woody biomass. The owner
of the woody biomass shall also provide the name and address of
the biofuel producer to which the taxpayer was authorized by the
owner to deliver the woody biomass. + }
    { - (b) - }   { + (c) + } The State Department of Energy may
charge and collect a fee from taxpayers for certification of
credits under this section. The fee may not exceed the cost to
the department of determining the amount of certified cost { + ,
except that the fee for a credit allowed for transportation of
woody biomass shall equal the greater of $0.01 per scale ticket
submitted for the tax year by the taxpayer under paragraph (b) of
this subsection, or $50 + }.
    { - (c) - }   { + (d) + } The State Department of Energy
shall provide to the Department of Revenue a list, by tax year,
of taxpayers for which a credit is certified under this section,
upon request of the Department of Revenue.
  (6) The amount of the credit claimed under this section for any
tax year may not exceed the tax liability of the taxpayer.
  (7) Each agricultural producer { + , + }   { - or - }  biomass
collector  { + or woody biomass transporter + } shall maintain
the written documentation of the amount certified for tax credit
under this section in its records for a period of at least five
years after the tax year in which the credit is claimed and
provide the written documentation to the Department of Revenue
upon request.
  (8) The credit shall be claimed on a form prescribed by the
Department of Revenue that contains the information required by
the department.

  (9) Any tax credit otherwise allowable under this section that
is not used by the taxpayer in a particular tax year may be
carried forward and offset against the taxpayer's tax liability
for the next succeeding tax year. Any credit remaining unused in
the next succeeding tax year may be carried forward and used in
the second succeeding tax year, and likewise any credit not used
in that second succeeding tax year may be carried forward and
used in the third succeeding tax year, and any credit not used in
that third succeeding tax year may be carried forward and used in
the fourth succeeding tax year, but may not be carried forward
for any tax year thereafter.
  (10) In the case of a credit allowed under this section:
  (a) A nonresident shall be allowed the credit under this
section in the proportion provided in ORS 316.117.
  (b) If a change in the status of the taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by this section shall be determined in a manner
consistent with ORS 316.117.
  (c) If a change in the taxable year of the taxpayer occurs as
described in ORS 314.085, or if the Department  { + of
Revenue + } terminates the taxpayer's taxable year under ORS
314.440, the credit allowed under this section shall be prorated
or computed in a manner consistent with ORS 314.085.
  SECTION 3.  { + The amendments to ORS 315.141 and 469.790 by
sections 1 and 2 of this 2011 Act apply to tax years beginning on
or after January 1, 2011. + }
  SECTION 4. Section 6, chapter 739, Oregon Laws 2007, as amended
by section 5, chapter 590, Oregon Laws 2007, and section 18,
chapter 913, Oregon Laws 2009, is amended to read:
   { +  Sec. 6. + } (1) ORS 315.141, 315.144 and 469.790 apply to
tax credits for tax years beginning on or after January 1, 2007,
and before January 1,   { - 2012 - }  { +  2019 + }.
  (2) Notwithstanding subsection (1) of this section, a tax
credit is not allowed for wheat grain (other than nongrain wheat
material)   { - before - }   { + for + } tax years beginning
 { - on or after - }   { + before + } January 1, 2009, or on or
after January 1,   { - 2012 - }  { +  2019 + }.
  SECTION 5. Section 29, chapter 739, Oregon Laws 2007, as
amended by section 17, chapter 913, Oregon Laws 2009, is amended
to read:
   { +  Sec. 29. + } ORS 315.465 and 315.469 apply to tax years
beginning on or after January 1, 2007, and before January 1,
 { - 2012 - }  { +  2019 + }.
  SECTION 6.  { + (1) The Task Force on Biomass Facility Siting
is established, consisting of 15 members appointed as follows:
  (a) The President of the Senate shall appoint:
  (A) Three members from among members of the Senate.
  (B) Three members who are representatives from the biomass
collection, transportation or production industries.
  (b) The Speaker of the House of Representatives shall appoint:
  (A) Three members from among members of the House of
Representatives.
  (B) Three members who are representatives from the biomass
collection, transportation or production industries.
  (c) The Governor shall appoint a representative from each of
the following:
  (A) The State Department of Energy.
  (B) The State Forestry Department.
  (C) The Oregon Business Development Department.
  (2) The task force shall identify:
  (a) Locations of biomass in this state.
  (b) The amount of biomass available in the various regions of
this state.
  (c) The types of biomass facilities that may be developed using
biomass as fuel.

  (d) Potential sites for biomass facilities, which may include
existing facilities.
  (3) A majority of the voting members of the task force
constitutes a quorum for the transaction of business.
  (4) Official action by the task force requires the approval of
a majority of the voting members of the task force.
  (5) The task force shall elect one of its members to serve as
chairperson.
  (6) If there is a vacancy for any cause, the appointing
authority shall make an appointment to become immediately
effective.
  (7) The task force shall meet at times and places specified by
the call of the chairperson or of a majority of the voting
members of the task force.
  (8) The task force may adopt rules necessary for the operation
of the task force.
  (9) The task force shall submit a report, and may include
recommendations for legislation, to an interim committee of the
Legislative Assembly related to revenue as appropriate no later
than October 1, 2012.
  (10) The Legislative Administrator shall provide staff support
to the task force.
  (11) Members of the task force who are not members of the
Legislative Assembly are not entitled to compensation, but may be
reimbursed for actual and necessary travel and other expenses
incurred by them in the performance of their official duties in
the manner and amounts provided for in ORS 292.495. Claims for
expenses incurred in performing functions of the task force shall
be paid out of funds appropriated to the Legislative
Administrator for purposes of the task force.
  (12) All agencies of state government, as defined in ORS
174.111, are directed to assist the task force in the performance
of its duties and, to the extent permitted by laws relating to
confidentiality, to furnish such information and advice as the
members of the task force consider necessary to perform their
duties. + }
  SECTION 7.  { + Section 6 of this 2011 Act is repealed on the
date of the convening of the 2013 regular session of the
Legislative Assembly as specified in ORS 171.010. + }
  SECTION 8.  { + This 2011 Act takes effect on the 91st day
after the date on which the 2011 regular session of the
Seventy-sixth Legislative Assembly adjourns sine die. + }
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