Introduced by Senator Dunne of Windsor District, Senator Lyons of Chittenden District and Senator Starr of Essex-Orleans District
Subject: Motor vehicles; diesel fuel tax; biodiesel tax exemption
Statement of purpose: This bill proposes to exempt from the diesel fuel tax those diesel fuels consisting of a blend of at least five percent ethanol or 20 percent biodiesel fuel.
AN ACT RELATING TO DIESEL FUEL COMPOSITION AND TAXATION
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 23 V.S.A. § 3002 is amended to read:
§ 3002. Definitions
For the purposes of this chapter:
means the commissioner of motor vehicles or any officer or employee of the
department duly authorized by him or her to perform the functions herein
mentioned or described
means any person who sells or delivers fuel into the fuel supply tanks of motor
vehicles owned or operated by others
means any person who sells or delivers fuel into bulk storage tanks of a dealer
means clear diesel fuel that has not been dyed in accordance with 26 U.S.C. §
4082 or section 211(I) of the Clean Air Act and any blend of undyed diesel and
other fuel used or suitable for use for the generation of power to propel motor
vehicle” means any self-propelled vehicle using fuel on the public highways and
registered or required to be registered for operation thereon
bus” means any motor vehicle with a seating capacity of more than 20 persons
truck” means a motor vehicle designed primarily for the transportation of
property and goods, and not primarily for the transportation of passengers
fuel” means diesel fuel and any blend of diesel and other fuel used or suitable
for use for the generation of power to propel a railroad train
means the consumption of fuel by a user to propel motor vehicles on the
highways of the state
* * *
(11) “Biodiesel fuel” means a renewable, biodegradable, mono alkyl ester combustible liquid fuel derived from waste vegetable oil, agricultural plant oil, or animal fat which meets the American Society for Testing and Materials (ASTM) Specification D6751-02 for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels.
(12) “Biomass” means nonfossil organic materials that have an intrinsic chemical energy content, including soybean oil, other vegetable oils, and ethanol.
(13) “Ethanol” means fermentation ethyl alcohol derived from agricultural products, including potatoes, cereal, grains, cheese whey, and sugar beets; forest products; or other renewable resources, including residue and waste generated from the production, processing, and marketing of agricultural products, forest products, and other renewable resources, that:
(A) meets all of the specifications in ASTM specification D 4806-88; and
(B) is denatured as specified in 27 C.F.R. parts 20 and 21.
Sec. 2. 23 V.S.A. § 3003(f) is added to read:
(f) Users and dealers shall be exempted from taxation under this chapter and entitled to a credit for any tax paid under this section if the blend of the diesel fuel contains at least five percent ethanol or 20 percent biodiesel fuel.
The Vermont General Assembly
115 State Street