Capitol Reflections Week 3 - 2026

Dexton Lake recaps week 3 of the Idaho legislative session with proposed bills dealing with domestic wells, rulemaking, livestock predation, and a possible Utah bill that could raise gas prices in Idaho.

Transcript

Welcome to Capitol Reflections from the Idaho Farm Bureau Federation where we bring you the latest policy updates affecting Idaho Agriculture.

I’m Dexton Lake and we are free of week three of the session. 

Senate Bill 1222 builds on reforms passed during the 2025 legislative session and is intended to provide clarity and certainty as those changes are implemented.

Last year, lawmakers approved S1083a, which updated Idaho’s domestic use exemption to better manage growing demands on limited water resources while preserving the exemption for homeowners. That law addressed how exempt wells are used in subdivisions, coordinated water considerations with land-use planning, and added safeguards to protect existing water rights.

S1222 does not change that policy direction. Instead, it provides targeted clarifications to ensure the law is applied as intended. The bill defines a “subdivision,” for purposes of the exemption, as a development with five lots. It also makes clear that the subdivision-related provisions adopted last year apply only to final subdivision applications filed on or after July 1, 2025. These updates help prevent confusion and ensure the law is applied prospectively, not retroactively. Idaho Farm Bureau policy supports thoughtful reform of the domestic use exemption, and IFBF supports S1222.

Also this week, the House State Affairs Committee unanimously introduced H539, a bill designed to ensure the negotiated rulemaking process is used whenever possible and that temporary rules are reserved primarily for emergency situations.

Negotiated rulemaking allows the regulated community to participate in developing rules, leading to better collaboration, clearer expectations, and more effective outcomes. H539 is a word-for-word copy of S1076a from last session. That bill passed the Senate but ultimately died after unrelated amendments were added in the House and not accepted by the Senate.

H539 sets common-sense guardrails around when temporary rules may be used and helps prevent agencies from bypassing legislative oversight by repeatedly relying on temporary rules. Representative Jeff Ehlers is sponsoring the bill, and IFBF supports H539.

In addition, Senate Joint Memorial 108 was introduced this week urging Congress and the Administration to protect livestock producers who report depredation losses from wolves, grizzly bears, and other wildlife.

Ranchers grazing on U.S. Forest Service or Bureau of Land Management allotments have grown hesitant to report losses out of concern that federal agencies could reduce or revoke their grazing permits. Since the Idaho Legislature has specifically appropriated funds to compensate producers for depredation, that fear undermines the effectiveness of those programs.

SJM108 calls for clear federal direction stating that reporting wildlife depredation cannot be used as a reason to reduce or cancel grazing privileges. The memorial is sponsored by Senator Todd Lakey and Representative Judy Boyle, and IFBF supports SJM108.

Finally, lawmakers are responding to a proposal being discussed in the Utah Legislature that could significantly increase fuel costs for Idaho families, farmers, and businesses.

The proposal would create a new tax on fuel refined in Utah but exported for use in other states — fuel that Idaho relies on heavily. Because Idaho has no in-state petroleum refineries, we import the majority of our transportation fuels from Utah nearly 3 million gallons, per day. The plan would shift an estimated $250 million per year in transportation funding costs onto out-of-state fuel users, primarily Idahoans.

That would mean higher operating and transportation costs with no benefit to Idaho’s own infrastructure. Idahoans already pay a 32-cent-per-gallon state fuel tax to maintain our roads and bridges, which does not include federal tax and other fees. Under the Utah plan, fuel taxes paid by Utah consumers would be reduced, while a new 23.9-cent-per-gallon tax would be imposed on exported fuel to make up the difference. This means fuel used in Idaho could face a combined tax burden of more than 75 cents per gallon, with a significant share of that revenue flowing to Utah instead of being invested here at home.

Idaho Speaker of the House Mike Moyle: This is a big deal. The impact to Idaho’s economy and the citizens in this state. It’s a big deal. We are kind of at a disadvantage because we don’t have a refinery in Idaho and we don’t produce crude in Idaho. We’re stuck. We don’t have that advantage. 

Beyond the economic impact, taxing fuel based on its destination conflicts with long-standing principles governing interstate commerce and sets a troubling precedent for other states. More fundamentally, Article I, Section 9, Clause 5 of the U.S. Constitution states that no tax or duty shall be laid on articles exported from any state. That language raises significant constitutional questions about the legality of Utah’s proposal and suggests it would face strong challenges in court. However, any legal fight could be lengthy and costly, and Idaho fuel users could bear financial impacts in the meantime if relief is not granted quickly.

In response, the Idaho House introduced House Joint Memorial 12, calling on all states to refrain from imposing unconstitutional taxes on neighboring states and instead continue working together in good faith to meet shared transportation needs. The memorial was sent directly to the second reading calendar, signaling lawmakers intend to move it quickly to send a clear message to Utah. 

Idaho Farm Bureau supports HJM12 and will continue monitoring the situation closely to keep members informed about a proposal that could have serious consequences for Idaho agriculture and our broader economy. We strongly encourage our members who may have connections within the Utah legislature to reach out and stress how terrible this fuel tax proposal is. 

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You can learn more, become engaged, and advocate for Idaho agriculture policy by visiting idahofb.org.

This has been Capitol Reflections with the Idaho Farm Bureau Federation, the Voice of Idaho Agriculture.