HB 1142-FN-A – VERSION ADOPTED BY BOTH BODIES
HOUSE BILL 1142-FN-A
This bill imposes the road toll on alternative fuels, such as compressed natural gas, liquefied natural gas, and propane, and requires alternative fuel dealers to be licensed by the department of safety to collect and remit the road toll.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [
in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Fourteen
AN ACT relative to the road toll for alternative fuels.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Sections; Definitions; Alternative Fuel, Dealer, and Dispenser. Amend RSA 259 by inserting after section 3-c the following new sections:
259:3-d Alternative Fuel. “Alternative fuel” means any source of fuel, other than motor fuel and electricity, used to propel a motor vehicle over the ways of the state. Alternative fuel shall include, but not be limited to, compressed natural gas, liquefied natural gas, and propane.
259:3-e Alternative Fuel Dealer. “Alternative fuel dealer” means any person who sells, produces, or refines alternative fuel for use in a motor vehicle as defined in RSA 259:60, IV and who has an alternative fuel dispenser at the person’s facility. Alternative fuel dealers shall not include persons who sell, produce, or refine alternative fuel specifically for non-highway purposes.
259:3-f Alternative Fuel Dispenser. “Alternative fuel dispenser” shall mean a machine specifically used at an alternative fuel dealer that is used to pump compressed natural gas, liquid natural gas, propane, or other types of alternative fuel directly into a motor vehicle for use on the ways of the state. Alternative fuel dispenser shall not include machines that are not designed to dispense alternative fuel directly into a motor vehicle.
2 New Section; Definition; Motor Fuel Equivalent Gallon. Amend RSA 259 by inserting after section 58-a the following new section:
259:58-b Motor Fuel Equivalent Gallon. “Motor fuel equivalent gallon” means the volume of alternative fuel it takes to equal the energy content of one gallon of gasoline or special fuel. The commissioner of safety shall adopt in rules under RSA 260:57 the applicable conversion rates for motor fuel equivalent gallons for compressed natural gas, liquid natural gas, and propane based on nationally recognized standards for weights and measures.
3 New Section; Levy of Road Toll on Alternative Fuels. Amend RSA 260 by inserting after section 32-b the following new section:
260:32-c Levy of Road Toll on Alternative Fuels. There is hereby imposed a road toll on alternative fuels, as defined in RSA 259:3-d and sold by licensed alternative fuel dealers, on the motor fuel equivalent gallon, as defined in RSA 259:58-b, for such alternative fuel at the rate per gallon established in RSA 260:32. The alternative fuel road toll shall be subject to the exemptions provided for by RSA 260:32, I-V and the refund provisions as provided in RSA 260:47, RSA 260:52-b, and RSA 260:52-e.
4 New Section; Alternative Fuel Dealers. Amend RSA 260 by inserting after section 36-d the following new section:
260:36-e Application for License as an Alternative Fuel Dealer.
I. It shall be unlawful for any person to sell or use alternative fuel upon which the road toll imposed and collected under this subdivision has not been paid, unless the person is the holder of a valid license to engage in business as a dealer of alternative fuels. To procure an alternative fuel dealer license, an application, signed subject to prosecution for unsworn falsification and accompanied by a bond, shall be filed with the department in such form as the commissioner may prescribe. Once approved, the department shall issue a license certificate valid only for the dealer in whose name issued. The license shall be unassignable and shall remain in full force and effect from the date of issuance through June 30 unless cancelled, suspended, or revoked. The license shall be renewable upon completion of an annual application renewal form, provided that the dealer is in good standing with the division. Renewals are effective July 1 through June 30.
II. A person who has facilities for placing alternative fuel into the supply system of an internal combustion engine fueled by individual portable containers of 10 gallons or less is not required to be licensed as an alternative fuel dealer, provided that the fuel is only used for exempt purposes.
III. Any person who acts as an alternative fuel dealer and who does not hold a valid license issued under paragraph I shall pay a penalty of $500 for each month of operation without a license or a penalty of 10 percent of the tax assessed on the total purchases made during the unlicensed period, whichever is greater. This penalty shall immediately accrue and shall bear interest as specified in RSA 260:40-a.
IV. When an alternative fuel dealer license application is filed by a person whose previous license was canceled for cause by the department, or the department believes that such application was not filed in good faith, or is filed by another person as a subterfuge for the actual person in interest whose previous license has been canceled, the department may, if evidence warrants, refuse to issue a license for such an application.
V. An alternative fuel dealer shall:
(a) Collect and remit road tolls as provided in this subdivision.
(b) File in the same manner as a distributor in accordance with RSA 260:38.
(c) Be subject to the same penalty for failure to report or pay road toll in accordance with RSA 260:40.
5 Effective Date. This act shall take effect January 1, 2015.
HB 1142-FN-A FISCAL NOTE
AN ACT relative to the road toll for alternative fuels.
The Department of Safety states this bill, as amended by the House (Amendment #2014-1168h), will increase state highway fund revenues and expenditures, and local revenues by an indeterminable amount in FY 2015 and each year thereafter. There will be no impact on county revenues and expenditures, or local expenditures.
The Department of Safety states this bill imposes the road toll on alternative fuels such as compressed natural gas (CNG), liquefied natural gas (LNG), and propane and also requires all alternative fuel dealers to be licensed. The Department states there are currently three CNG stations in the state with an additional two in the planning phase. Also, the Division of Motor Vehicles currently has 268 registered propane and CNG vehicles and based upon this count, the Department anticipates a minimal annual revenue collection of $20,315. However, the Department recognizes the usage of alternative fuel vehicles is increasing and does not have adequate data to project a revenue impact of this bill in FY 2015 and each year thereafter, of which 12% of the previous year’s collection would be distributed as state highway block grants to municipalities pursuant to RSA 235:23. The Department also states this bill will result in an increase of highway fund expenditures of $41,400 in FY 2015 and $4,000 in each year thereafter for implementation of alternative fuel license registration forms, road toll tax forms, and information technology program changes.