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LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
HOUSE
OF
REPRESENTATIVES
HOUSE
BILL
NO.
943
BY
WAYS
AND
MEANS
COMMITTEE
AN
ACT
1
RELATING
TO
TAXATION;
PROVIDING
LEGISLATIVE
FINDINGS;
AMENDING
TITLE
63,
2
IDAHO
CODE,
BY
THE
ADDITION
OF
A
NEW
CHAPTER
46,
TITLE
63,
IDAHO
CODE,
3
TO
PROVIDE
A
SHORT
TITLE,
TO
DEFINE
TERMS,
TO
PROVIDE
AN
INCOME
TAX
4
CREDIT,
A
PROPERTY
TAX
EXEMPTION,
AND
A
SALES
TAX
EXEMPTION
FOR
STRATE
-
5
GIC
PIPELINE
INFRASTRUCTURE
PROJECTS,
TO
PROVIDE
REGULATORY
RELIEF
FOR
6
STRATEGIC
PIPELINE
INFRASTRUCTURE
PROJECTS,
AND
TO
PROVIDE
FOR
THE
AP
-
7
PLICATION
FOR
FEDERAL
GRANTS
AND
FINANCING
PROGRAMS;
AND
PROVIDING
AN
8
EFFECTIVE
DATE.
9
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
10
SECTION
1.
LEGISLATIVE
FINDINGS.
The
Legislature
finds
and
declares
1
1
that:
12
(1)
Reliable
access
to
motor
fuels
and
refined
petroleum
products
is
13
essential
to
Idaho's
economy,
public
safety,
and
quality
of
life,
including
14
but
not
limited
to
agriculture,
food
production,
manufacturing,
construc
-
15
tion,
transportation,
emergency
services,
health
care,
and
commerce.
16
(2)
Idaho
does
not
currently
have
an
in
-
state
petroleum
refining
capac
-
17
ity
and
therefore
relies
heavily
on
interstate
transportation
systems
and
18
out
-
of
-
state
fuel
supplies
to
meet
the
needs
of
residents
and
businesses.
19
(3)
Disruptions,
constraints,
and
increased
costs
affecting
in
-
20
terstate
fuel
supply
chains
can
result
in
higher
fuel
prices,
reduced
21
availability,
and
economic
harm
to
Idaho
consumers,
employers,
and
critical
22
services,
particularly
in
a
rural
state
where
travel
and
transportation
are
23
necessary.
24
(4)
A
resilient
and
diversified
fuel
supply
system,
including
access
to
25
multiple
interstate
pipeline
routes
and
sources,
reduces
vulnerability
to
26
supply
disruptions,
market
volatility,
and
external
policy
or
infrastruc
-
27
ture
constraints.
28
(5)
Energy
security
is
a
matter
of
public
safety
and
economic
stability
29
for
the
State
of
Idaho.
Ensuring
access
to
reliable,
sufficient,
and
diver
-
30
sified
supplies
of
motor
fuels
and
refined
petroleum
products
is
essential
31
to
protect
Idaho
residents,
businesses,
agriculture,
emergency
services,
32
and
critical
infrastructure
from
supply
disruptions,
price
volatility,
and
33
external
market
or
policy
constraints.
34
(6)
Investment
in
modern,
expanded,
and
reliable
interstate
pipeline
35
infrastructure
promotes
fuel
supply
stability,
enhances
energy
security,
36
supports
economic
growth,
and
benefits
consumers
through
improved
market
37
access
and
competition.
38
(7)
High
-
cost
pipeline
infrastructure
projects
require
substantial
39
up
-
front
capital
investment
and
long
-
term
regulatory
certainty,
and
such
40
projects
may
not
proceed
without
targeted
incentives
and
a
predictable,
41
timely
permitting
framework.
42
2
(8)
The
State
of
Idaho
has
a
legitimate
and
compelling
interest
in
1
encouraging
infrastructure
investment
that
strengthens
energy
supply
re
-
2
silience,
protects
consumers
from
supply
shocks,
and
supports
the
continued
3
functioning
of
Idaho's
economy
and
essential
services.
4
SECTION
2.
That
Title
63,
Idaho
Code,
be,
and
the
same
is
hereby
amended
5
by
the
addition
thereto
of
a
NEW
CHAPTER
,
to
be
known
and
designated
as
Chap
-
6
ter
46,
Title
63,
Idaho
Code,
and
to
read
as
follows:
7
CHAPTER
46
8
PROTECTING
IDAHO
PIPELINE
ENERGY
SECURITY
ACT
9
63
-
4601.
SHORT
TITLE.
This
chapter
shall
be
known
and
may
be
cited
as
10
the
"Protecting
Idaho
Pipeline
Energy
Security
Act"
or
the
"PIPES
Act."
1
1
63
-
4602.
DEFINITIONS.
For
the
purposes
of
this
chapter:
12
(1)
"Construction"
means
the
development,
installation,
or
creation
of
13
a
new
pipeline
or
related
facilities,
including
laterals,
interconnections,
14
pumping
stations,
storage
facilities,
and
associated
infrastructure.
15
(2)
"Developer"
means
any
person
or
business
entity,
including
an
16
owner,
operator,
developer,
or
investor,
who
engages
in
or
proposes
to
en
-
17
gage
in
the
interstate
transmission,
storage,
distribution,
or
delivery
of
18
crude
oil
or
refined
petroleum
products
and
is
eligible
for
any
incentive
19
provided
in
this
chapter.
20
(3)
"Energy
security"
means
the
availability
of
reliable,
sufficient,
21
and
diversified
fuel
supplies
necessary
to
support
economic
activity,
pub
-
22
lic
safety,
and
essential
services
within
the
state.
23
(4)
"Pipeline"
means
real
and
personal
property,
including
gathering
24
lines
and
fixtures,
owned
or
operated
to
facilitate
the
interstate
trans
-
25
mission,
storage,
distribution,
or
delivery
of
crude
oil
or
refined
petro
-
26
leum
products
through
a
pipe
that
has
an
outside
diameter
of
at
least
six
(6)
27
inches.
28
(5)
"Refined
petroleum
products"
means
gasoline,
diesel
fuel,
aviation
29
fuel,
and
other
liquid
products
derived
from
crude
oil
that
are
intended
for
30
use
as
motor
fuel.
31
(6)
"Strategic
pipeline
infrastructure
project"
means
any
phased
or
32
multistage
project
where
the
developer
certifies
to
the
state
tax
commission
33
in
writing
that
the
aggregate
investment
will
meet
or
exceed
fifty
million
34
dollars
($50,000,000)
in
new
investment
in
construction
of
a
new
pipeline
35
that:
36
(a)
Is
not
a
replacement
of
an
existing
pipeline;
37
(b)
Crosses
into
Idaho
from
an
adjacent
state
or
nation
from
which
no
38
pipeline
already
exists;
and
39
(c)
Delivers
crude
oil
or
refined
petroleum
products
to
Idaho
cus
-
40
tomers.
41
63
-
4603.
INCOME
TAX
CREDIT,
PROPERTY
TAX
EXEMPTION,
AND
SALES
TAX
EX
-
42
EMPTION
FOR
STRATEGIC
PIPELINE
INFRASTRUCTURE
PROJECTS.
43
(1)(a)
For
taxable
years
beginning
on
or
after
January
1,
2027,
a
devel
-
44
oper
that
places
a
strategic
pipeline
infrastructure
project
into
ser
-
45
vice
is
allowed
an
investment
tax
credit
against
any
applicable
tax
im
-
46
3
posed
by
chapter
30,
title
63,
Idaho
Code.
The
credit
shall
be
equal
to
1
thirty
-
five
percent
(35%)
of
the
new
infrastructure
-
related
revenue.
2
For
purposes
of
this
section,
"infrastructure
-
related
revenue"
means
3
an
increase,
if
any,
in
the
amount
of
revenue,
in
a
taxable
year,
that
is
4
attributable
to
the
strategic
pipeline
infrastructure
project.
5
(b)
The
credit
allowed
under
this
section
may
be
claimed
annually
6
through
the
taxable
year
that
the
earliest
of
the
following
occurs:
7
(i)
The
economic
life
of
the
strategic
pipeline
infrastructure
8
project
has
ended,
provided
that
a
developer
shall
provide
the
9
state
tax
commission
with
such
information
as
the
state
tax
com
-
10
mission
may
require
to
determine
and
certify
the
economic
life
of
1
1
the
strategic
pipeline
infrastructure
project;
12
(ii)
Twenty
(20)
years
have
passed
from
the
time
the
initial
13
credit
was
claimed;
or
14
(iii)
The
developer
has
recovered
fifty
percent
(50%)
of
the
total
15
cost
of
the
strategic
pipeline
infrastructure
project
through
the
16
credit
provided
in
this
section.
17
(c)
A
developer
seeking
a
credit
under
this
section
shall,
for
each
tax
-
18
able
year,
file
a
report
with
the
state
tax
commission
showing
the
in
-
19
frastructure
-
related
revenue.
The
report
shall
be
prepared
by
an
inde
-
20
pendent
certified
public
accountant
that
verifies
the
infrastructure
-
21
related
revenue
described
in
paragraph
(a)
of
this
subsection
in
accor
-
22
dance
with
generally
accepted
accounting
principles.
23
(2)
The
construction
of
a
pipeline
on
or
after
January
1,
2027,
that
is
24
the
result
of
a
completed
strategic
pipeline
infrastructure
project
in
Idaho
25
shall
be
exempt
from
real
and
personal
property
taxation.
26
(3)
Beginning
on
January
1,
2027,
the
sale,
lease,
or
purchase
of
tan
-
27
gible
property
that
is
incorporated
into
the
pipeline
system
as
a
component
28
part
of
the
strategic
pipeline
infrastructure
project
is
exempt
from
any
29
sales
or
use
tax
under
Idaho
law.
30
63
-
4604.
REGULATORY
RELIEF
FOR
STRATEGIC
PIPELINE
INFRASTRUCTURE
31
PROJECTS.
(1)
Except
as
otherwise
required
by
federal
law,
a
strategic
32
pipeline
infrastructure
project
shall
be
exempt
from
any
additional
state
33
permitting,
licensing,
certification,
environmental
review,
or
any
other
34
applicable
statutory
requirement.
35
(2)
If
a
state
agency
is
charged
with
implementing
or
enforcing
any
fed
-
36
eral
regulatory
review
and
approval
process
in
connection
with
a
strategic
37
pipeline
infrastructure
project,
such
agency
shall
expedite
and
prioritize
38
such
review
or
approval
to
the
extent
permitted
by
federal
law.
39
(3)
This
section
shall
not
be
construed
to
prevent
any
county
or
city
40
permitting,
licensing,
certification,
environmental
review,
or
any
other
41
applicable
requirements.
42
(4)
In
the
event
a
state
agency,
county,
or
city
fails
to
issue
a
fi
-
43
nal
decision
on
an
application
for
a
permit,
license,
certification,
or
any
44
other
applicable
regulatory
authorization
within
sixty
(60)
days,
or
within
45
the
timeline
mandated
by
federal
law,
whichever
is
shorter,
the
application
46
for
any
permit,
license,
certification,
or
other
similar
application
shall
47
be
deemed
approved.
48
4
(5)
State
agencies,
counties,
cities,
and
all
other
political
subdi
-
1
visions
shall
give
priority
consideration
to
strategic
pipeline
infrastruc
-
2
ture
projects
that
materially
enhance
Idaho's
energy
security
by:
3
(a)
Increasing
access
to
diversified
interstate
fuel
supply
sources;
4
(b)
Improving
redundancy
or
resiliency
of
fuel
transportation
infra
-
5
structure;
or
6
(c)
Reducing
Idaho's
reliance
on
a
limited
number
of
supply
corridors
7
or
single
-
source
markets.
8
63
-
4605.
APPLICATION
FOR
FEDERAL
GRANTS
AND
FINANCING
PROGRAMS.
State
9
agencies
are
authorized
and
directed
to
seek
out
all
available
federal
10
grants,
state
or
federal
low
-
interest
or
no
-
interest
financing
options,
or
1
1
other
similar
state
or
federal
programs
that
may
be
available
to
financially
12
or
otherwise
assist
a
business
seeking
to
invest
in
and
complete
a
strategic
13
pipeline
infrastructure
project.
14
SECTION
3.
This
act
shall
be
in
full
force
and
effect
on
and
after
Jan
-
15
uary
1,
2027.
16