January 26, 2010





HOUSE BILL No. 1261

_____


DIGEST OF HB 1261 (Updated January 26, 2010 11:12 am - DI 77)



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.






January 26, 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)HB1261.1.1. -->     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 and algae production systems to generate renewable energy.
SOURCE: IC 15-11-11-0.3; (10)HB1261.1.2. -->     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)HB1261.1.3. -->     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)HB1261.1.4. -->     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.
            (D) Waste from clean construction and demolition.
        (4) Animal wastes.
        (5) Animal byproducts.
        (6) Aquatic plants.
        (7) Algae.

SOURCE: IC 15-11-11-3; (10)HB1261.1.5. -->     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)HB1261.1.6. -->     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)HB1261.1.7. -->     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)HB1261.1.8. -->     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)HB1261.1.9. -->     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)HB1261.1.10. -->     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.