WeVote
Log In

Bill

Bill

HB 2012

Film industry community zones; local designation.

2025 Regular Session Introduced by Rae Cousins and 2 co-sponsors

Kansas will reimburse retailers for year-over-year increases in higher ethanol blend sales, up to $0.05/gal, with caps and a sunset in 2030.

Passed by indefinitely in Local Government (9-Y 6-N)
0
WeVote Research Nonpartisan
Bill Summary · HB 2012

Summary — HB 2012 (Kansas substitute, 2025 session)

Note: multiple unrelated bills numbered HB 2012 appear in other jurisdictions (Arizona, Illinois). This summary covers the Kansas substitute for HB 2012 described in the provided supplemental note and substitute bill documents — the version that establishes an ethanol grant program.

Purpose

To encourage retail sales and retail availability of “higher ethanol blend” motor fuels (fuels containing 15%–85% ethanol) by providing reimbursement grants to retailers that increase their sales of such fuels. The program aims to support investment in infrastructure and expand consumer access to higher ethanol blends.

Key provisions

  • Definitions
    • “Higher ethanol blend” = fuel with ≥15% and ≤85% ethanol, dispensed directly into vehicle tanks.
    • “Retailer” = seller of motor fuels to end users at retail service stations; “retail service station” = location in Kansas selling higher ethanol blends to the general public.
  • Ethanol Grant Program Fund (Grant Fund)
    • Established in the State Treasury and administered by the Secretary of Agriculture (KDA).
    • Annual transfer: on July 1, 2026 and each July 1 thereafter, up to $5,000,000 is to be transferred from the State General Fund (SGF) into the Grant Fund. The transfer is reduced by any remaining balance already in the Grant Fund (certified by the Secretary in consultation with Director of the Budget).
    • Annual expenditures capped at not more than $5,000,000, including up to $50,000 for administration.
  • Grant eligibility and application
    • Retailers may apply during July of each fiscal year on forms approved by the Secretary.
    • Applications must report total gallons of higher ethanol blend sold in the preceding fiscal year and be signed/verified under oath by an authorized person.
  • Grant calculation and distribution
    • Each August beginning August 2026, the Secretary compares a retailer’s sales over the last two fiscal years.
    • If the latter year’s sales exceed the prior year’s, the retailer may receive a lump-sum reimbursement at a rate not to exceed $0.05 per gallon for the incremental gallons sold (i.e., only gallons representing year-over-year increase).
    • Per-retailer cap: no retailer may receive more than $500,000 in a fiscal year.
    • If approved grants exceed available funds, the Secretary must prorate awards so total disbursements do not exceed the Fund balance.
    • Disbursements occur August 31 each year (starting 2026).
  • Fraud and recovery
    • If the Secretary finds, following notice/hearing under the Kansas Administrative Procedure Act, that a retailer obtained a grant fraudulently or deceptively, the retailer must repay the full grant amount and may face additional civil/criminal penalties.
  • Sunset and wrap-up
    • Program and Fund expire September 1, 2030. On that date remaining Fund moneys transfer to the SGF and Fund liabilities shift to the SGF.

Who is affected

  • Primary: retail fuel sellers (retailers) in Kansas selling higher ethanol blends — only those that show sales growth year-over-year will qualify.
  • Secondary: ethanol producers and blending infrastructure suppliers (potential increased demand); Kansas motorists (potentially greater availability and lower retail prices depending on market effects).
  • State finances: SGF (annual transfers up to $5.0 million); Kansas Department of Agriculture (program administration, up to $50,000/year from the Fund).

Fiscal impact and implementation notes

  • Program funding: up to $5.0 million transfer from SGF each July 1 starting 2026 (FY2027) to support grants (annual cap $5.0 million).
  • Administrative cap: up to $50,000 per year from the Grant Fund for KDA administration; Secretary of Agriculture administers program.
  • The original introduced version of HB 2012 established a tax credit rather than a grant and would have involved the Department of Revenue (KDOR). A fiscal note for that tax-credit version estimated up to $5.0 million/year reduction in SGF revenues if fully utilized and KDOR implementation costs of $219,111 (FY2026) plus hiring 1.0 FTE (ongoing ~$72,182 FY2027). The House committee amended the bill to replace the tax credit with the reimbursement grant program described above and removed distributors from eligibility.
  • Timeline for applicants: apply in July; Secretary compares sales and approves awards; grants disbursed each August 31 (first distribution Aug 31, 2026).

Procedural history (select)

  • Introduced in House Committee on Taxation at request of POET Biofuels; hearings held Jan–Feb 2025 with multiple proponent organizations testifying.
  • On March 6, 2025, the House Committee amended the bill to convert the tax credit into the reimbursement grant program and remove distributors; committee recommended a substitute bill.
  • Program sunset scheduled for Sept 1, 2030.

Limitations / notable features

  • Grants reward growth in higher-ethanol blend sales (not total volume), which aims to incentivize retail adoption/expansion rather than subsidize existing sales.
  • Per-retailer and total annual caps ( $500,000 retailer cap; $5.0M fund cap) limit fiscal exposure.
  • The program sunsets in 2030, making it a time-limited incentive.

If you want, I can:
- Draft a one-page explainer targeted to retailers (application steps, deadlines, recordkeeping);
- Model possible grant distributions under sample uptake scenarios;
- Extract the original tax-credit vs. grant differences into a side-by-side comparison.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.