Renewable chemical production tax credit program—definition of “building block chemical,” 81.2
ECONOMIC DEVELOPMENT AUTHORITY
Adopted and Filed
Rule making related to renewable chemical production tax credit
The Economic Development Authority hereby amends Chapter 81, "Renewable Chemical Production Tax Credit Program," Iowa Administrative Code.
Legal Authority for Rule Making
This rule making is adopted under the authority provided in Iowa Code section 15.106A.
State or Federal Law Implemented
This rule making implements, in whole or in part, Iowa Code section 15.316.
Purpose and Summary
Under the renewable chemical production tax credit, Iowa Code section 15.316 provides that the term "building block chemical" includes a prescribed list of chemicals "or such additional molecules as may be included by the authority by rule after consultation with appropriate experts from Iowa state university, including but not limited to the Iowa state university center for biorenewable chemicals." In accordance with Iowa Code section 15.316 and the procedures set forth in rule 261—81.8(15), the Authority is adding the chemicals "ethylyne glycol" and "1,4 butanediol" to the list of approved building block chemicals. Brent Shanks at the Iowa State University Center for Biorenewable Chemicals (CBiRC) has recommended approval of these chemicals, and the Authority concurs.
Public Comment and Changes to Rule Making
Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on March 11, 2020, as ARC 4966C. No public comments were received. No changes from the Notice have been made.
Adoption of Rule Making
This rule making was adopted by the Authority on July 17, 2020.
This rule making has no fiscal impact to the State of Iowa.
After analysis and review of this rule making, no impact on jobs has been found.
Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Authority for a waiver of the discretionary provisions, if any, pursuant to 261—Chapter 199.
Review by Administrative Rules Review Committee
The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee's meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).
This rule making will become effective on September 16, 2020.
The following rule-making action is adopted:
Amend rule 261—81.2(15), definition of "Building block chemical," as follows:
"Building block chemical" means a molecule converted from biomass feedstock as a first product or a secondarily derived product that can be further refined into a higher-value chemical, material, or consumer product. "Building block chemical" includes but is not limited to high-purity glycerol, oleic acid, lauric acid, methanoic or formic acid, arabonic acid, erythonic erythronic acid, glyceric acid, glycolic acid, lactic acid, 3-hydroxypropionate, propionic acid, malonic acid, serine, succinic acid, fumaric acid, malic acid, aspartic acid, 3-hydroxybutyrolactone, acetoin, threonine, itaconic acid, furfural, levulinic acid, glutamic acid, xylonic acid, xylaric acid, xylitol, arabitol, citric acid, aconitic acid, 5-hydroxymethylfurfural, lysine, gluconic acid, glucaric acid, sorbitol, gallic acid, ferulic acid, nonfuel butanol, nonfuel ethanol, benzene, toluene, xylene, ethylbenzene, butanoic acid, hexanoic acid, octanoic acid, pentanoic acid, and heptanoic acid, ethylyne glycol, and 1,4 butanediol, or such additional molecules as may be included by the authority following the procedure in rule 261—81.8(15).
[Filed 7/24/20, effective 9/16/20]
Editor's Note: For replacement pages for IAC, see IAC Supplement 8/12/20.