73rd OREGON LEGISLATIVE ASSEMBLY--2005 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 1228
House Bill 3034
Sponsored by Representatives DINGFELDER, KROPF, Senators METSGER,
NELSON; Representatives AVAKIAN, BERGER, BEYER, BOONE, BOQUIST,
BROWN, BRUUN, BUCKLEY, BURLEY, BUTLER, DALLUM, FARR, GARRARD,
HANNA, HASS, HUNT, JENSON, KOMP, KRIEGER, MARCH, ROBLAN,
ROSENBAUM, G SMITH, P SMITH, SUMNER, TOMEI, WHISNANT, WITT,
Senators MORRISETTE, PROZANSKI, WESTLUND
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 as
introduced.
Directs Oregon Department of Administrative Services to
determine total amount of diesel used in state vehicles during
year. Directs department to purchase and make available for use
in following year amount of biodiesel greater than or equal to
five percent of total amount.
Reduces use fuel tax for use of biodiesel.
Allows owners of registered farm vehicles to apply for refund
of use fuel tax paid if fuel used is pure biodiesel.
Sunsets provisions relating to use fuel tax on January 2, 2012.
A BILL FOR AN ACT
Relating to biodiesel; creating new provisions; and amending ORS
283.305, 283.327, 319.530 and 319.831.
Whereas using biodiesel in place of, or blended with, petroleum
diesel reduces emissions of carbon monoxide, hydrocarbons and
particulate matter; and
Whereas biodiesel biodegrades faster than petroleum diesel; and
Whereas biodiesel is less toxic to humans and the environment
than petroleum diesel; and
Whereas biodiesel has lower lifecycle carbon dioxide emissions
than petroleum diesel; and
Whereas the United States Environmental Protection Agency's
emission standards for petroleum diesel that take effect on June
1, 2006, will require the addition of a lubricant to ultra-low
sulfur diesel to counteract premature wear of injection pumps and
biodiesel provides the needed lubricity; and
Whereas biodiesel can be produced domestically, thus reducing
dependency on imported oil; and
Whereas in-state production of biodiesel will result in
value-added processing in Oregon and increases in jobs and rural
income; now, therefore,
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 283.305 is amended to read:
283.305. As used in ORS 283.305 to 283.350:
(1) 'Authorized driver' means any of the following who has a
valid driver license and an acceptable driving record:
(a) A salaried state employee, including an agent of the state;
(b) A volunteer, appointed in writing, whose written
description of duties includes driving motor vehicles;
(c) An agency client required to drive motor vehicles as part
of a rehabilitation or treatment program authorized by law;
(d) Any personnel of any unit of government whose use of motor
vehicles is permitted by an authorized intergovernmental
agreement;
(e) Any student enrolled at any state institution of higher
education and whose use of motor vehicles meets the requirements
of ORS 283.310; and
(f) An inmate of a correctional institution with specific
Department of Corrections approval who is accompanied by a
supervising correctional institution employee or who is
performing a specific work assignment driving a special purpose
vehicle required for that assignment and within the visual range
of a supervising correctional institution employee who is at the
work assignment site or who is part of the transport caravan.
(2) 'Alternative fuel' means { + biodiesel, + } natural gas,
liquified petroleum gas, methanol, ethanol, any fuel mixture
containing at least 85 percent methanol or ethanol and
electricity.
(3) 'Motor vehicles' includes state-owned, leased or otherwise
controlled motor vehicles and the supplies, parts and equipment
for the operation, maintenance or repair of such motor vehicles.
(4) 'Official state business' means activity conducted by a
state agency that advances the lawful policies of the agency as
specified by the Oregon Department of Administrative Services by
rule.
(5) 'Standard passenger vehicle' means a motor vehicle that is
commonly known as a sedan or a station wagon and that is not
equipped with special or unusual equipment.
(6) 'State agency' or 'agency' includes the Legislative
Assembly, at its option, or any of its statutory, standing,
special or interim committees, at the option of such committee.
SECTION 2. ORS 283.327 is amended to read:
283.327. (1) To the maximum extent economically possible,
state-owned motor vehicles { + , whether the motor vehicles are
for on-road, off-road or construction applications, + } shall use
alternative fuel for operation.
(2) After July 1, 1994, state agencies shall acquire only motor
vehicles capable of using alternative fuel, except that acquired
vehicles assigned to areas unable economically to dispense
alternative fuel need not be so configured.
{ + (3) By January 15 of each year, the Oregon Department of
Administrative Services shall determine the total amount of
diesel fuel used during the preceding year by all state-owned
motor vehicles, whether the motor vehicles are for on-road,
off-road or construction applications. Based on that
determination, the department shall, in making fuel purchases for
the year, purchase and make available for use by the state motor
pool an amount of biodiesel greater than or equal to five percent
of the amount of diesel fuel used the preceding year. The
department may, in meeting the five-percent requirement
established in this subsection:
(a) Subsidize the purchase of biodiesel by school districts; or
(b) Purchase pure or blended biodiesel. + }
{ - (3) - } { + (4) + } Each agency owning motor vehicles
shall comply with all safety standards established by the United
States Department of Transportation in the conversion, operation
and maintenance of vehicles using alternative fuel.
SECTION 3. ORS 319.530 is amended to read:
319.530. (1) To compensate this state partially for the use of
its highways, an excise tax { - hereby - } is imposed at the
rate of 24 cents per gallon on the use of fuel in a motor
vehicle.
{ + (2) + } Except as otherwise provided in subsections
{ - (2) and (3) - } { + (3) and (4) + } of this section, 100
cubic feet of fuel used or sold in a gaseous state, measured at
14.73 pounds per square inch of pressure at 60 degrees
Fahrenheit, is taxable at the same rate as a gallon of liquid
fuel.
{ - (2) - } { + (3) + } One hundred twenty cubic feet of
compressed natural gas used or sold in a gaseous state, measured
at 14.73 pounds per square inch of pressure at 60 degrees
Fahrenheit, is taxable at the same rate as a gallon of liquid
fuel.
{ - (3) - } { + (4) + } One and three-tenths liquid gallons
of propane at 60 degrees Fahrenheit is taxable at the same rate
as a gallon of other liquid fuel.
{ + (5) Notwithstanding the excise tax specified in
subsection (1) of this section, if the fuel used in a motor
vehicle is pure or part biodiesel, the excise tax imposed under
this section shall be reduced at the rate of 0.24 cents per
gallon for each percent of biodiesel contained in the fuel. + }
SECTION 4. ORS 319.530, as amended by section 3 of this 2005
Act, is amended to read:
319.530. (1) To compensate this state partially for the use of
its highways, an excise tax is imposed at the rate of 24 cents
per gallon on the use of fuel in a motor vehicle.
(2) Except as otherwise provided in subsections (3) and (4) of
this section, 100 cubic feet of fuel used or sold in a gaseous
state, measured at 14.73 pounds per square inch of pressure at 60
degrees Fahrenheit, is taxable at the same rate as a gallon of
liquid fuel.
(3) One hundred twenty cubic feet of compressed natural gas
used or sold in a gaseous state, measured at 14.73 pounds per
square inch of pressure at 60 degrees Fahrenheit, is taxable at
the same rate as a gallon of liquid fuel.
(4) One and three-tenths liquid gallons of propane at 60
degrees Fahrenheit is taxable at the same rate as a gallon of
other liquid fuel.
{ - (5) Notwithstanding the excise tax specified in
subsection (1) of this section, if the fuel used in a motor
vehicle is pure or part biodiesel, the excise tax imposed under
this section shall be reduced at the rate of 0.24 cents per
gallon for each percent of biodiesel contained in the fuel. - }
SECTION 5. { + The amendments to ORS 319.530 by section 4 of
this 2005 Act become operative on January 2, 2012. + }
SECTION 6. ORS 319.831 is amended to read:
319.831. (1) If a user obtains fuel for use in a motor vehicle
in this state and pays the use fuel tax on the fuel obtained, the
user may apply for a refund of that part of the use fuel tax paid
which is applicable to use of the fuel to propel a motor vehicle:
(a) In another state, if the user pays to the other state an
additional tax on the same fuel;
(b) Upon any road, thoroughfare or property in private
ownership;
(c) Upon any road, thoroughfare or property, other than a state
highway, county road or city street, for the removal of forest
products, as defined in ORS 321.005, or the products of such
forest products converted to a form other than logs at or near
the harvesting site, or for the construction or maintenance of
the road, thoroughfare or property, pursuant to a written
agreement or permit authorizing the use, construction or
maintenance of the road, thoroughfare or property, with or by:
(A) An agency of the United States;
(B) The State Board of Forestry;
(C) The State Forester; or
(D) A licensee of an agency named in subparagraph (A), (B) or
(C) of this paragraph;
(d) By an agency of the United States or of this state or of
any county, city or port of this state on any road, thoroughfare
or property, other than a state highway, county road or city
street;
(e) By any incorporated city or town of this state;
(f) By any county of this state or by any road assessment
district formed under ORS 371.405 to 371.535;
(g) Upon any county road for the removal of forest products as
defined in ORS 321.005, or the products of such forest products
converted to a form other than logs at or near the harvesting
site, if:
(A) Such use upon the county road is pursuant to a written
agreement entered into with, or to a permit issued by, the State
Board of Forestry, the State Forester or an agency of the United
States, authorizing such user to use such road and requiring such
user to pay for or to perform the construction or maintenance of
the county road;
(B) The board, officer or agency that entered into the
agreement or granted the permit, by contract with the county
court or board of county commissioners, has assumed the
responsibility for the construction or maintenance of such county
road; and
(C) Copies of the agreements or permits required by
subparagraphs (A) and (B) of this paragraph are filed with the
Department of Transportation;
(h) By a school district or education service district of this
state or the contractors of a school district or education
service district, for those vehicles being used to transport
students;
(i) By a rural fire protection district organized under the
provisions of ORS chapter 478;
(j) By any district, as defined in ORS chapter 198, that is not
otherwise specifically provided for in this section; { - or - }
(k) By any state agency, as defined in ORS 240.855 { + ; or
(L) In any location, if the motor vehicle has a registration
plate issued under ORS 803.520 but meets the qualifications under
ORS 805.310 for farm vehicle registration and if the fuel used to
propel the motor vehicle is pure biodiesel + }.
(2) An application for a refund under subsection (1) of this
section shall be filed with the department within 15 months after
the date the use fuel tax, for which a refund is claimed, is
paid.
(3) The application for a refund provided by subsection (1) of
this section shall include a signed statement by the applicant
indicating the amount of fuel for which a refund is claimed, and
the way in which the fuel was used which qualifies the applicant
for a refund. If the fuel upon which the refund is claimed was
obtained from a seller to whom the use fuel tax was paid, the
application shall be supported by the invoices which cover the
purchase of the fuel. If the applicant paid the use fuel tax
directly to the department, the applicant shall indicate the
source of the fuel and the date it was obtained.
(4) The department may require any person who applies for a
refund provided by subsection (1) of this section to furnish a
statement, under oath, giving the person's occupation,
description of the machines or equipment in which the fuel was
used, the place where used and such other information as the
department may require.
SECTION 7. ORS 319.831, as amended by section 6 of this 2005
Act, is amended to read:
319.831. (1) If a user obtains fuel for use in a motor vehicle
in this state and pays the use fuel tax on the fuel obtained, the
user may apply for a refund of that part of the use fuel tax paid
which is applicable to use of the fuel to propel a motor vehicle:
(a) In another state, if the user pays to the other state an
additional tax on the same fuel;
(b) Upon any road, thoroughfare or property in private
ownership;
(c) Upon any road, thoroughfare or property, other than a state
highway, county road or city street, for the removal of forest
products, as defined in ORS 321.005, or the products of such
forest products converted to a form other than logs at or near
the harvesting site, or for the construction or maintenance of
the road, thoroughfare or property, pursuant to a written
agreement or permit authorizing the use, construction or
maintenance of the road, thoroughfare or property, with or by:
(A) An agency of the United States;
(B) The State Board of Forestry;
(C) The State Forester; or
(D) A licensee of an agency named in subparagraph (A), (B) or
(C) of this paragraph;
(d) By an agency of the United States or of this state or of
any county, city or port of this state on any road, thoroughfare
or property, other than a state highway, county road or city
street;
(e) By any incorporated city or town of this state;
(f) By any county of this state or by any road assessment
district formed under ORS 371.405 to 371.535;
(g) Upon any county road for the removal of forest products as
defined in ORS 321.005, or the products of such forest products
converted to a form other than logs at or near the harvesting
site, if:
(A) Such use upon the county road is pursuant to a written
agreement entered into with, or to a permit issued by, the State
Board of Forestry, the State Forester or an agency of the United
States, authorizing such user to use such road and requiring such
user to pay for or to perform the construction or maintenance of
the county road;
(B) The board, officer or agency that entered into the
agreement or granted the permit, by contract with the county
court or board of county commissioners, has assumed the
responsibility for the construction or maintenance of such county
road; and
(C) Copies of the agreements or permits required by
subparagraphs (A) and (B) of this paragraph are filed with the
Department of Transportation;
(h) By a school district or education service district of this
state or the contractors of a school district or education
service district, for those vehicles being used to transport
students;
(i) By a rural fire protection district organized under the
provisions of ORS chapter 478;
(j) By any district, as defined in ORS chapter 198, that is not
otherwise specifically provided for in this section; { + or + }
(k) By any state agency, as defined in ORS 240.855 { - ;
or - } { + . + }
{ - (L) In any location, if the motor vehicle has a
registration plate issued under ORS 803.520 but meets the
qualifications under ORS 805.310 for farm vehicle registration
and if the fuel used to propel the motor vehicle is pure
biodiesel. - }
(2) An application for a refund under subsection (1) of this
section shall be filed with the department within 15 months after
the date the use fuel tax, for which a refund is claimed, is
paid.
(3) The application for a refund provided by subsection (1) of
this section shall include a signed statement by the applicant
indicating the amount of fuel for which a refund is claimed, and
the way in which the fuel was used which qualifies the applicant
for a refund. If the fuel upon which the refund is claimed was
obtained from a seller to whom the use fuel tax was paid, the
application shall be supported by the invoices which cover the
purchase of the fuel. If the applicant paid the use fuel tax
directly to the department, the applicant shall indicate the
source of the fuel and the date it was obtained.
(4) The department may require any person who applies for a
refund provided by subsection (1) of this section to furnish a
statement, under oath, giving the person's occupation,
description of the machines or equipment in which the fuel was
used, the place where used and such other information as the
department may require.
SECTION 8. { + The amendments to ORS 319.831 by section 7 of
this 2005 Act become operative on January 2, 2012. + }
SECTION 9. { + (1) Pursuant to the sustainability goals
specified in ORS 184.423 and pursuant to the purposes of the
Oregon Department of Administrative Services specified in ORS
184.305, by January 15 of each year, each agency of the state
government, as defined in ORS 174.111, shall determine the total
amount of diesel fuel used during the preceding year by the
agency in all applications, whether for motor vehicle use or
otherwise, and report that amount to the Oregon Department of
Administrative Services.
(2) Based on that determination, the agency shall, in making
fuel purchases for the year, purchase and make available for use
by the agency an amount of biodiesel greater than or equal to
five percent of the amount of diesel fuel used by the agency in
the preceding year. The agency shall include, as part of its
annual report to the Oregon Department of Administrative
Services, the success of the agency's effort in meeting the
five-percent requirement of this subsection.
(3) The agency may, in meeting the five-percent requirement
established in this section, purchase pure or blended biodiesel.
(4) The Oregon Department of Administrative Services may
provide a centralized purchasing infrastructure for the purpose
of assisting agencies of the state government in meeting the
goals established under this section. + }
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