Bill Text: OR HB3268 | 2011 | Regular Session | Introduced

Oregon House Bill 3268 (Prior Session Legislation)

Introduced

Bill Title: Relating to carbon tax; appropriating money; prescribing an effective date; providing for revenue raising that requires approval by a three-fifths majority.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB3268 Detail]

Download: Oregon-2011-HB3268-Introduced.html



     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 3534

                         House Bill 3268

Sponsored by Representative HOLVEY (at the request of Frank
  Vignola)

                             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.

  Imposes tax on each fuel supplier and utility based on amount
of carbon in carbon-based fuel that is sold by fuel supplier to
consumers in state or that is used to produce carbon-generated
electricity supplied by utility to consumers in state.
Continuously appropriates moneys from tax revenues for purpose of
reducing carbon emissions and use of carbon-based fuels.
  Applies to carbon-based fuel sold to consumers or used to
produce carbon-generated electricity on or after effective date
of Act.
  Takes effect only if House Joint Resolution 33 (2011) is
approved by people at next regular general election. Takes effect
on effective date of constitutional amendment proposed in House
Joint Resolution 33 (2011).

                        A BILL FOR AN ACT
Relating to carbon tax; appropriating money; prescribing an
  effective date; and providing for revenue raising that requires
  approval by a three-fifths majority.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + As used in sections 1 to 5 of this 2011 Act:
  (1) 'Carbon-based fuel' means coal, natural gas, petroleum
products and any other product used for fuel that contains carbon
and emits carbon dioxide when combusted. 'Carbon-based fuel '
does not include any product used for fuel that is derived from a
resource that is less than 1,000 years old in its natural state.
  (2) 'Carbon-based fuel group' means a group of carbon-based
fuels that contain similar levels of carbon.
  (3) 'Carbon-generated electricity' means electric energy that
is produced by using a carbon-based fuel. 'Carbon-generated
electricity' does not include electric energy produced by using a
fuel that is derived from a resource that is less than 1,000
years old in its natural state.
  (4) 'Fuel supplier' means a person that sells carbon-based fuel
to consumers.
  (5) 'Utility' means a public utility operating under ORS
chapter 757, a people's utility district operating under ORS
chapter 261, a municipal utility operating under ORS chapter 225
or any other entity that supplies carbon-generated electricity to
consumers. + }

  SECTION 2.  { + (1) A tax is imposed on each fuel supplier and
utility at a rate of $___ per ton of carbon in a carbon-based
fuel that is:
  (a) Sold by a fuel supplier to consumers in this state; or
  (b) Used to produce carbon-generated electricity that is
supplied by a utility to consumers in this state.
  (2) The Department of Revenue shall calculate the tax liability
of a fuel supplier or utility by multiplying the rate designated
in subsection (1) of this section by the total amount of carbon
in each carbon-based fuel group that is:
  (a) Sold by the fuel supplier to consumers in this state in the
previous calendar year; or
  (b) Used to produce carbon-generated electricity supplied by
the utility to consumers in this state in the previous calendar
year.
  (3)(a) If a utility is unable to provide the information
required for the calculation under subsection (2) of this
section, the Department of Revenue shall calculate the utility's
tax liability by multiplying the rate designated in subsection
(1) of this section by the product of the average amount of
carbon used in the generation of one kilowatt of electricity
supplied by the utility and the total number of kilowatts of
electricity supplied by the utility to consumers in this state.
  (b) The State Department of Energy shall calculate the average
amount of carbon used in the generation of one kilowatt of
electricity supplied by the utility by estimating the ratio of
carbon contributed by each carbon-based fuel group to the total
amount of carbon produced in the generation of the electricity.
Each year, the State Department of Energy shall recalculate and
report to the Department of Revenue the average amount of carbon
used in the generation of one kilowatt of electricity supplied by
the utility to take into account any changes in the ratio of
carbon-based fuel groups used in the generation of the
electricity.
  (4) The Department of Revenue and the State Department of
Energy may adopt any rules necessary for the calculation and
collection of the tax imposed under this section.
  (5) The tax imposed under this section does not apply to:
  (a) Carbon-based fuel or carbon-generated electricity that this
state is prohibited from taxing under the Constitution or laws of
the United States or the Constitution or laws of the State of
Oregon.
  (b) Any fuel supplier or utility that is administered by a
federal agency.
  (c) Any carbon-based fuel or carbon-generated electricity that
is transported through this state but not consumed in this
state. + }
  SECTION 3.  { + Moneys received by the Department of Revenue
pursuant to the tax imposed under section 2 of this 2011 Act
shall be deposited in a suspense account created pursuant to ORS
293.445. After payment of administrative expenses and refunds,
moneys in the account are continuously appropriated to the State
Department of Energy for the following purposes:
  (1) Funding construction or installation of alternative energy
systems that do not release carbon emissions into air or water or
onto land; and
  (2) Funding implementation of systems or programs that result
in the reduction of the use of carbon-based fuels. + }
  SECTION 4.  { + Unless the context requires otherwise, the
provisions of ORS chapters 305, 314, 316, 317 and 318 that relate
to the audit and examination of reports and returns,
confidentiality and disclosure of reports and returns,
determination of deficiencies, assessments, claims for refunds,
penalties, interest, jeopardy assessments, warrants, conferences
and appeals to the Oregon Tax Court, and related procedures,

apply to sections 1 to 5 of this 2011 Act, the same as if the tax
were a tax imposed upon or measured by net income. + }
  SECTION 5.  { + For the purpose of first calculating the tax
imposed under section 2 of this 2011 Act, the State Department of
Energy shall determine the percentage of carbon in each
carbon-based fuel group and report those percentages to the
Department of Revenue. + }
  SECTION 6.  { + Sections 1 to 5 of this 2011 Act apply to
carbon-based fuel sold to consumers or used to produce
carbon-generated electricity on or after the effective date of
this 2011 Act. + }
  SECTION 7.  { + This 2011 Act does not take effect unless the
amendments to the Oregon Constitution proposed by House Joint
Resolution 33 (2011) is approved by the people at the next
regular general election held throughout this state. This 2011
Act takes effect on the effective date of House Joint Resolution
33 (2011). + }
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