Bill Text: IA SF481 | 2021-2022 | 89th General Assembly | Introduced


Bill Title: A bill for an act relating to renewable fuel used to power motor vehicles, including by providing for standards and restrictions, infrastructure, tax credits, and requirements for state agencies operating motor vehicles powered by renewable fuel, making appropriations, providing penalties, making penalties applicable, and including effective date provisions.(Formerly SSB 1179; See SF 549.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2021-03-04 - Committee report approving bill, renumbered as SF 549. S.J. 530. [SF481 Detail]

Download: Iowa-2021-SF481-Introduced.html
Senate File 481 - Introduced SENATE FILE 481 BY COMMITTEE ON AGRICULTURE (SUCCESSOR TO SSB 1179) A BILL FOR An Act relating to renewable fuel used to power motor vehicles, 1 including by providing for standards and restrictions, 2 infrastructure, tax credits, and requirements for state 3 agencies operating motor vehicles powered by renewable fuel, 4 making appropriations, providing penalties, making penalties 5 applicable, and including effective date provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 1311SV (1) 89 da/ns
S.F. 481 DIVISION I 1 MOTOR FUEL 2 PART A 3 STANDARDS 4 Section 1. Section 214A.1, Code 2021, is amended by adding 5 the following new subsections: 6 NEW SUBSECTION . 11A. “Dispensing unit” means the equipment 7 connected to a motor fuel pump located at a retail motor fuel 8 site, if the equipment includes a nozzle to control the flow of 9 motor fuel discharged from the motor fuel storage tank to an 10 end point including the fuel supply tank of a motor vehicle. 11 NEW SUBSECTION . 19A. “Motor fuel storage and dispensing 12 infrastructure” or “infrastructure” means a motor fuel storage 13 tank, motor fuel pump, and a dispensing unit necessary to keep 14 and dispense motor fuel at a retail motor fuel site, including 15 but not limited to all associated equipment, dispensing units, 16 dispensers, pumps, pipes, hoses, tubes, lines, fittings, 17 valves, filters, seals, and covers. 18 NEW SUBSECTION . 26A. “Restricted use diesel fuel” means 19 diesel fuel that meets the standards of section 214A.2 and is 20 subject to restrictions based on classifications provided in 21 section 214A.32. 22 NEW SUBSECTION . 26B. “Restricted use gasoline” means 23 gasoline that meets the standards of section 214A.2 and is 24 subject to restrictions based on classifications provided in 25 section 214A.31. 26 NEW SUBSECTION . 30A. “Standard diesel fuel” means biodiesel 27 blended fuel that meets the standards of section 214A.2 and is 28 classified as provided in section 214A.32. 29 NEW SUBSECTION . 30B. “Standard gasoline” means ethanol 30 blended gasoline that meets the standards of section 214A.2 and 31 is classified as provided in section 214A.31. 32 Sec. 2. Section 214A.1, subsection 16, Code 2021, is amended 33 to read as follows: 34 16. “Gasoline” means any liquid product prepared, 35 -1- LSB 1311SV (1) 89 da/ns 1/ 31
S.F. 481 advertised, offered for sale , or sold for use as, or 1 commonly and commercially used as, motor fuel for use in a 2 spark-ignition, internal combustion engine, and which if it 3 meets the specifications standards provided in section 214A.2 . 4 Sec. 3. Section 214A.1, subsection 30, Code 2021, is amended 5 by striking the subsection. 6 Sec. 4. NEW SECTION . 214A.1A Disciplinary action. 7 The department may refuse to issue or renew and may suspend 8 or revoke a license issued to a retail dealer pursuant to 9 section 214.2 for any violation of this chapter, including 10 rules adopted by the department pursuant to section 214A.2. 11 Sec. 5. Section 214A.2, subsection 3, paragraph b, Code 12 2021, is amended by striking the paragraph and inserting in 13 lieu thereof the following: 14 b. If the motor fuel is advertised for sale or sold as 15 ethanol or ethanol blended gasoline, the motor fuel must 16 comply with departmental standards which shall meet all of the 17 following requirements: 18 (1) (a) Ethanol must be a fuel grade agriculturally 19 derived ethyl alcohol and must meet the requirements 20 of 27 C.F.R. pts. 20 and 21 and A.S.T.M. international 21 specification D4806 for blending with gasoline for use as 22 automotive spark-ignition engine fuel, or a successor A.S.T.M. 23 international specification, as established by rules adopted 24 by the department. 25 (b) Ethanol shall be classified as E-100. 26 (c) Gasoline containing no ethanol or trace amounts of 27 ethanol shall be classified as E-0. 28 (2) Gasoline blended with ethanol must meet requirements 29 based in part or in whole on A.S.T.M. international 30 specification D4814, or a successor A.S.T.M. international 31 specification, as established by rules adopted by the 32 department. 33 (3) Except as otherwise provided in this subparagraph, 34 ethanol blended gasoline shall be classified as E-xx where 35 -2- LSB 1311SV (1) 89 da/ns 2/ 31
S.F. 481 “xx” is the volume percent of ethanol in the ethanol blended 1 gasoline. However, all of the following shall apply: 2 (a) Ethanol blended gasoline with a percentage of at least 3 nine but not more than ten percent by volume of ethanol shall 4 be classified as E-10. 5 (b) Ethanol blended gasoline with a percentage of fifteen 6 percent by volume of ethanol shall be classified as E-15. 7 (c) Ethanol blended gasoline with a percentage of at least 8 seventy but not more than eighty-five percent by volume of 9 ethanol shall be classified as E-85. E-85 gasoline must meet 10 A.S.T.M. international specification D5798, or a successor 11 A.S.T.M. international specification, as established by rules 12 adopted by the department. 13 (4) In ensuring that ethanol blended gasoline meets the 14 classification requirements of this section, the department 15 shall take into account reasonable variations due to testing 16 and other limitations. 17 (5) Ethanol blended gasoline classified as higher than 18 E-20, other than E-85, must conform to A.S.T.M. international 19 specifications adopted by the department. 20 Sec. 6. Section 214A.2, subsection 3, paragraph c, Code 21 2021, is amended by adding the following new subparagraph: 22 NEW SUBPARAGRAPH . (3) (a) Biobutanol blended gasoline 23 shall be classified as Bu-xx where “xx” is the volume percent 24 of biobutanol in the biobutanol blended gasoline. 25 (b) In ensuring that biobutanol blended gasoline meets the 26 classification requirements of this section, the department 27 shall take into account reasonable variations due to testing 28 and other limitations. 29 Sec. 7. Section 214A.2, subsection 4, paragraph b, 30 subparagraph (1), Code 2021, is amended by adding the following 31 new subparagraph divisions: 32 NEW SUBPARAGRAPH DIVISION . (a) Biodiesel shall be 33 classified as B-100. 34 NEW SUBPARAGRAPH DIVISION . (b) Diesel fuel containing no 35 -3- LSB 1311SV (1) 89 da/ns 3/ 31
S.F. 481 biodiesel or trace amounts of biodiesel shall be classified as 1 B-0. 2 Sec. 8. Section 214A.2, subsection 4, paragraph b, Code 3 2021, is amended by adding the following new subparagraph: 4 NEW SUBPARAGRAPH . (04) (a) Biodiesel blended fuel shall be 5 classified B-xx where “xx” is the volume percent of biodiesel 6 in the biodiesel blended fuel. 7 (b) In ensuring that biodiesel blended fuel meets the 8 classification requirements of this section, the department 9 shall take into account reasonable variations due to testing 10 and other limitations. 11 Sec. 9. Section 214A.2, subsection 4, paragraph b, 12 subparagraph (4), Code 2021, is amended to read as follows: 13 (4) Biodiesel blended fuel classified as B-6 or higher 14 but not higher than up to and including B-20 must conform to 15 A.S.T.M. international specification D7467 , or a successor 16 A.S.T.M. international specification , as established by rules 17 adopted by the department. 18 Sec. 10. Section 214A.2, subsection 4, paragraph b, Code 19 2021, is amended by adding the following new subparagraph: 20 NEW SUBPARAGRAPH . (5) Biodiesel blended fuel classified 21 as higher than B-20 must conform to A.S.T.M. international 22 specifications adopted by the department. 23 Sec. 11. Section 214A.2, subsection 5, Code 2021, is amended 24 by striking the subsection. 25 Sec. 12. Section 214A.3, subsection 2, Code 2021, is amended 26 to read as follows: 27 2. For a renewable fuel, all of the following apply: 28 a. A person shall not knowingly falsely advertise that a 29 motor fuel for sale is a renewable fuel or is not a renewable 30 fuel. 31 b. (1) Ethanol blended A person shall not knowingly 32 falsely advertise that gasoline sold by a dealer shall be 33 designated according to its classification as provided in 34 section 214A.2 for sale is or is not restricted use gasoline . 35 -4- LSB 1311SV (1) 89 da/ns 4/ 31
S.F. 481 However, a person advertising E-9 or E-10 gasoline may only 1 designate it as ethanol blended gasoline. A person advertising 2 ethanol blended gasoline formulated with a percentage of 3 between seventy and eighty-five percent by volume of ethanol 4 shall designate it as E-85. A person shall not knowingly 5 falsely advertise ethanol blended gasoline for sale by using 6 an inaccurate designation in violation of this subparagraph 7 classification as provided in section 214A.2 . 8 (2) A person shall not knowingly falsely advertise 9 biobutanol blended gasoline for sale by using an inaccurate 10 designation classification as provided in section 214A.2 . 11 (3) A person shall not knowingly falsely advertise 12 biodiesel that diesel fuel for sale is or is not restricted use 13 diesel fuel. A person shall not knowingly falsely advertise 14 restricted use biodiesel fuel for sale by using an inaccurate 15 designation classification as provided in section 214A.2 . 16 Sec. 13. Section 214A.16, subsection 1, Code 2021, is 17 amended to read as follows: 18 1. a. If ethanol blended a retail dealer advertises for 19 sale or sells restricted use gasoline is sold from a motor fuel 20 pump dispensing unit , the motor fuel pump dispensing unit shall 21 have affixed a decal identifying the ethanol blended gasoline 22 is restricted use gasoline . 23 b. If the motor fuel pump dispenses a retail dealer 24 advertises for sale or sells ethanol blended gasoline 25 classified as E-11 to E-15 for use in gasoline-powered vehicles 26 not required to be flexible fuel vehicles from a dispensing 27 unit , the motor fuel pump dispensing unit shall have affixed 28 a decal as prescribed by the United States environmental 29 protection agency , including as provided in 40 C.F.R. pt. 80 . 30 c. If the motor fuel pump dispenses a retail dealer 31 advertises for sale or sells ethanol blended gasoline 32 classified as higher than standard ethanol blended gasoline 33 pursuant to section 214A.2 E-85 from a dispensing unit , the 34 dispensing unit shall have affixed a decal shall contain 35 -5- LSB 1311SV (1) 89 da/ns 5/ 31
S.F. 481 language that identifies the ethanol blended gasoline is for 1 use in flexible fuel vehicles as prescribed by the United 2 States environmental protection agency . 3 d. If a retail dealer advertises for sale or sells 4 biobutanol blended gasoline is sold from a motor fuel pump 5 dispensing unit , the motor fuel pump dispensing unit shall have 6 affixed a decal identifying the biobutanol blended gasoline. 7 e. If a retail dealer advertises for sale or sells biodiesel 8 blended fuel is sold from a motor fuel pump dispensing unit , 9 the motor fuel pump dispensing unit shall have affixed a decal 10 identifying the biodiesel blended fuel as provided in 16 C.F.R. 11 pt. 306. 12 f. If a retail dealer advertises for sale or sells 13 restricted use diesel fuel from a dispensing unit, the 14 dispensing unit shall have affixed a decal identifying the 15 diesel fuel as restricted use diesel fuel. 16 Sec. 14. NEW SECTION . 214A.31 Renewable fuel requirements 17 —— standard gasoline and restricted use gasoline. 18 1. a. A retail dealer may advertise for sale or sell 19 standard gasoline classified as E-10 or higher as provided in 20 section 214A.2 from any number of dispensing units located at a 21 retail motor fuel site. 22 b. Except as provided in subsection 3, a retail dealer 23 shall not advertise for sale or sell restricted use gasoline 24 classified as E-0 from more than one dispensing unit located at 25 a retail motor fuel site. 26 c. This subsection is repealed January 1, 2025. 27 2. a. A retail dealer may advertise for sale or sell 28 standard gasoline classified as E-15 or higher as provided in 29 section 214A.2 from any number of dispensing units located at a 30 retail motor fuel site. 31 b. On and after January 1, 2025, except as provided in 32 subsection 3, a retail dealer shall not advertise for sale 33 or sell restricted use gasoline classified as E-0 or ethanol 34 blended gasoline classified as E-10 and up to but not including 35 -6- LSB 1311SV (1) 89 da/ns 6/ 31
S.F. 481 E-15 from more than one dispensing unit located at a retail 1 motor fuel site. 2 3. A retail dealer may advertise for sale or sell restricted 3 use gasoline from one or more dispensing units located at 4 a restricted retail motor fuel site. For purposes of this 5 section, a restricted retail motor fuel site is limited to any 6 of the following: 7 a. An airport as defined in section 328.1. 8 b. A facility primarily used to support motor vehicles that 9 are not registered for highway use, including but not limited 10 to a location dedicated to motor vehicle racing. 11 c. A marina that provides a secured mooring or dry dock 12 storage for watercraft as defined in section 462A.2. 13 d. A location that is primarily used to store or sell any 14 of the following: 15 (1) Motor vehicles manufactured before 1985. 16 (2) All-terrain vehicles or motorcycles, as those terms are 17 defined in section 321.1, or snowmobiles as defined in section 18 321G.1. 19 Sec. 15. NEW SECTION . 214A.32 Renewable fuel requirements 20 —— standard diesel fuel and restricted use diesel fuel. 21 1. a. A retail dealer may advertise for sale or sell 22 standard diesel fuel classified as B-20 or higher from any 23 number of dispensing units located at a retail motor fuel site. 24 b. Except as otherwise provided in this section, a retail 25 dealer shall not advertise for sale or sell restricted use 26 diesel fuel which is diesel fuel classified as B-0 or biodiesel 27 blended fuel classified as B-1 and up to but not including 28 B-20, from more than one dispensing unit located at a retail 29 motor fuel site. 30 2. a. A retail dealer may advertise for sale or sell 31 restricted use diesel fuel which is biodiesel blended fuel 32 classified as B-5 or higher from more than one dispensing unit 33 located at a retail motor fuel site for each annual period 34 beginning October 1 and ending April 14. 35 -7- LSB 1311SV (1) 89 da/ns 7/ 31
S.F. 481 b. (1) A retail dealer may advertise for sale or sell 1 restricted use diesel fuel which is biodiesel blended fuel 2 classified as B-11 or higher from more than one dispensing unit 3 located at a retail motor fuel site during any of the following 4 periods: 5 (a) From the effective date of this division of this Act 6 until September 30, 2021. 7 (b) From April 15, 2022, until September 30, 2022. 8 (c) From April 15, 2023, until September 30, 2023. 9 (2) This paragraph “b” is repealed October 1, 2023. 10 3. A retail dealer may advertise for sale or sell restricted 11 use diesel fuel from one or more dispensing units located at 12 a restricted retail motor fuel site. For purposes of this 13 section, a restricted retail motor fuel site is limited to any 14 of the following: 15 a. An airport as defined in section 328.1. 16 b. An electric generating plant regulated by the United 17 States nuclear regulatory commission. 18 c. A facility storing and serving railroad locomotives. 19 Sec. 16. NEW SECTION . 214A.33 Renewable fuel —— restricted 20 use gasoline or restricted use diesel fuel waiver. 21 1. The governor may issue or renew an executive order or the 22 secretary of agriculture may issue or renew an administrative 23 order temporarily waiving a requirement that a retail dealer 24 comply with section 214A.31 or 214A.32. 25 2. The order shall allow the retail dealer to advertise 26 for sale and sell restricted use gasoline or restricted use 27 diesel fuel from any number of dispensing units at the retail 28 dealer’s retail motor fuel site. However, the retail dealer 29 shall not advertise for sale or sell restricted use gasoline or 30 restricted use diesel fuel unless the fuel complies with all 31 of the following: 32 a. For gasoline, it must be ethanol blended gasoline 33 classified as E-10 or higher. 34 b. For diesel fuel, on and after April 15, 2024, during any 35 -8- LSB 1311SV (1) 89 da/ns 8/ 31
S.F. 481 part of the period beginning April 15 and ending September 30, 1 it must be biodiesel blended fuel classified as B-11 or higher. 2 3. The order must be supported by credible evidence that 3 the retail dealer has not been able to reasonably obtain the 4 required classification of renewable fuel to offer for sale or 5 sell at the retail dealer’s retail motor fuel site. 6 4. An order shall not apply to more than one retail motor 7 fuel site. 8 5. The department shall publish a copy of the order on the 9 department’s internet site within ten days after its issuance. 10 6. The order shall expire six months from the date of its 11 issuance, unless a shorter period is stated in the order. 12 Sec. 17. NEW SECTION . 214A.34 Renewable fuel —— restricted 13 use gasoline or diesel fuel suspension. 14 1. The governor may issue or renew an executive order 15 suspending a requirement that a retail dealer comply with 16 section 214A.31 or 214A.32 statewide or in a geographic region 17 of the state. 18 2. The executive order shall allow retail dealers to 19 advertise for sale and sell restricted use gasoline or 20 restricted use diesel fuel from any number of dispensing units 21 at retail motor fuel sites covered by the executive order. 22 However, a retail dealer shall not advertise for sale or sell 23 restricted use gasoline or restricted use diesel fuel unless 24 the fuel complies with all of the following: 25 a. For gasoline, it must be ethanol blended gasoline 26 classified as E-10 or higher. 27 b. For diesel fuel, on and after April 15, 2024, during any 28 part of the period beginning April 15 and ending September 30, 29 it must be biodiesel blended fuel classified as B-11 or higher. 30 3. The executive order must be based on the governor’s 31 determination that it is not commercially feasible for the 32 retail dealers to obtain the required classification of 33 renewable fuel to offer for sale or sell at retail motor fuel 34 sites in this state or the region described in the executive 35 -9- LSB 1311SV (1) 89 da/ns 9/ 31
S.F. 481 order. 1 4. The executive order shall take effect on its date of 2 publication in the Iowa administrative bulletin, unless the 3 order specifies a later date. The order shall expire six 4 months from the date of its publication unless a shorter period 5 is stated in the order. 6 PART B 7 WEIGHTS AND MEASURES 8 Sec. 18. NEW SECTION . 214.2A Disciplinary action. 9 The department may refuse to issue or renew and may suspend 10 or revoke a license issued to a retail dealer pursuant to 11 section 214.2 for a violation of this chapter, or chapter 214A, 12 including rules adopted by the department pursuant to section 13 214A.2. 14 PART C 15 EFFECTIVE DATE 16 Sec. 19. EFFECTIVE DATE. This division of this Act, being 17 deemed of immediate importance, takes effect upon enactment. 18 DIVISION II 19 INFRASTRUCTURE 20 PART A 21 FINANCIAL INCENTIVES FOR RETAIL MOTOR FUEL SITES 22 Sec. 20. Section 159A.12, Code 2021, is amended to read as 23 follows: 24 159A.12 Classification Classifications of renewable motor 25 fuel. 26 For purposes of this subchapter , all of the following apply: 27 1. Gasoline, ethanol , and ethanol blended fuel and 28 biodiesel fuel gasoline shall be classified in the same manner 29 as provided in section 214A.2 . 30 2. Diesel fuel, biodiesel fuel, and biodiesel blended fuel 31 shall be classified in the same manner as provided in section 32 214A.2. 33 Sec. 21. Section 159A.14, subsection 1, Code 2021, is 34 amended to read as follows: 35 -10- LSB 1311SV (1) 89 da/ns 10/ 31
S.F. 481 1. The purpose of the program is to improve retail 1 motor fuel sites by installing, replacing, or converting 2 infrastructure to be used to store, blend, or dispense , or 3 blend and dispense renewable fuel. The infrastructure shall be 4 ethanol infrastructure or biodiesel infrastructure. 5 a. (1) Ethanol infrastructure shall be designed and used 6 exclusively to do any of the following: 7 (a) (1) Store and dispense E-15 gasoline ethanol classified 8 as E-100 or store ethanol blended gasoline classified as E-85 9 or higher . At least for the period beginning on September 16 10 and ending on May 31 of each year, the ethanol infrastructure 11 must be used to store and dispense E-15 gasoline as a 12 registered fuel recognized by the United States environmental 13 protection agency. 14 (b) (2) Store and dispense ethanol blended gasoline 15 classified as E-85 gasoline or higher . 16 (c) (3) Store , ethanol classified as E-100 or store 17 ethanol blended gasoline classified as E-85 or higher to blend , 18 and dispense motor fuel ethanol or ethanol blended gasoline 19 classified as E-85 or higher from a motor fuel blender pump. 20 The ethanol infrastructure must be used for the storage of 21 ethanol or ethanol blended gasoline, or for blending ethanol 22 with gasoline. The ethanol infrastructure must at least 23 include a motor fuel blender pump which dispenses different 24 classifications of ethanol blended gasoline and allows E-85 25 gasoline to be dispensed at all times that the blender pump is 26 operating. 27 (2) b. (1) Biodiesel infrastructure shall be designed and 28 used exclusively to do any of the following: 29 (a) Store biodiesel classified as B-100 or store biodiesel 30 blended fuel classified as B-20 or higher. 31 (a) (b) Store and dispense biodiesel or biodiesel blended 32 fuel classified as B-20 or higher . 33 (b) (c) Blend or Store biodiesel classified as B-100 or 34 store biodiesel blended fuel classified as B-20 or higher, 35 -11- LSB 1311SV (1) 89 da/ns 11/ 31
S.F. 481 to blend and dispense biodiesel blended fuel classified as 1 B-20 or higher from a motor fuel blender pump. The biodiesel 2 infrastructure must at least include a motor fuel blender pump 3 which dispenses different classifications of biodiesel blended 4 fuel and allows B-20 to be dispensed at all times that the 5 blender pump is operating. 6 (2) This paragraph “b” is repealed July 1, 2024. 7 b. c. The infrastructure must be part of the premises of 8 a retail motor fuel site operated by a retail dealer. The 9 infrastructure shall not include a tank vehicle. 10 Sec. 22. Section 159A.14, subsection 5, Code 2021, is 11 amended to read as follows: 12 5. An award of financial incentives to a participating 13 person shall be on a cost-share basis in the form of a grant. 14 To participate in the program, an eligible person must execute 15 a cost-share agreement with the department as approved by 16 the infrastructure board in which the person contributes 17 a percentage of the total costs related to improving the 18 retail motor fuel site. A cost-share agreement shall be for 19 a three-year period or a five-year period. A cost-share 20 agreement shall include provisions for standard financial 21 incentives or standard financial incentives and supplemental 22 financial incentives as provided in this subsection . The 23 infrastructure board may approve multiple improvements to the 24 same retail motor fuel site for the full amount available for 25 both ethanol infrastructure and biodiesel infrastructure so 26 long as the improvements for ethanol infrastructure and for 27 biodiesel infrastructure are made under separate cost-share 28 agreements. 29 a. (1) Except as provided in paragraph “b” , a A 30 participating person may be awarded standard financial 31 incentives to make improvements to improve a retail motor fuel 32 site by installing, replacing, or converting infrastructure 33 to store ethanol classified as E-100, to store and dispense 34 ethanol blended gasoline classified as E-85 or higher, or to 35 -12- LSB 1311SV (1) 89 da/ns 12/ 31
S.F. 481 blend and dispense ethanol blended gasoline classified as E-85 1 or higher . A cost-share agreement shall be for a three-year or 2 a five-year period. The standard financial incentives awarded 3 to a participating person shall not exceed the following: 4 (a) For a three-year cost-share agreement, fifty percent of 5 the actual cost of making the improvement or thirty thousand 6 dollars, whichever is less. 7 (b) For a five-year cost-share agreement, seventy percent 8 of the actual cost of making the improvement or fifty thousand 9 dollars, whichever is less. 10 (2) The infrastructure board may approve multiple awards of 11 standard financial incentives to make improvements to a retail 12 motor fuel site so long as the total amount of the awards for 13 ethanol infrastructure or biodiesel infrastructure does not 14 exceed the limitations provided in subparagraph (1). 15 b. A participating person may be awarded standard financial 16 incentives to improve a retail motor fuel site by installing, 17 replacing, or converting infrastructure to store biodiesel 18 classified as B-100, store and dispense biodiesel blended 19 fuel classified as B-20 or higher, or to blend and dispense 20 biodiesel blended fuel classified as B-20 or higher. 21 (1) The standard financial incentives shall be awarded to 22 a participating person pursuant to a three-year cost-share 23 agreement not to exceed fifty percent of the actual cost of 24 making the improvement or thirty thousand dollars, whichever 25 is less. 26 (2) As part of the agreement, the participating person must 27 agree to sell biodiesel blended fuel classified as B-20 or 28 higher from April 15 to September 30 during each year that the 29 agreement is in effect. 30 (3) This paragraph “b” is repealed July 1, 2024. 31 c. In addition to any standard financial incentives awarded 32 to a participating person under paragraph “a” this subsection , 33 the participating person may be awarded supplemental financial 34 incentives to make improvements to a retail motor fuel site to 35 -13- LSB 1311SV (1) 89 da/ns 13/ 31
S.F. 481 do any of the following: 1 (1) Upgrade or replace a dispenser which is part of 2 gasoline storage and dispensing infrastructure used to store 3 and dispense E-85 gasoline as provided in section 455G.31 . 4 The participating person is only eligible to be awarded the 5 supplemental financial incentives if the person installed the 6 dispenser not later than sixty days after July 27, 2011. The 7 supplemental financial incentives awarded to the participating 8 person shall not exceed seventy-five percent of the actual cost 9 of making the improvement or thirty thousand dollars, whichever 10 is less. 11 (2) To improve additional retail motor fuel sites owned or 12 operated by a participating person within a twelve-month period 13 as provided in the cost-share agreement. The supplemental 14 financial incentives shall be used for the installation of an 15 additional tank and associated infrastructure at each such 16 retail motor fuel site. A participating person may be awarded 17 supplemental financial incentives under this subparagraph 18 and standard financial incentives under paragraph “a” to 19 improve the same motor fuel site. The supplemental financial 20 incentives awarded to the participating person shall not 21 exceed twenty-four thousand dollars. The participating person 22 shall be awarded the supplemental financial incentives on a 23 cumulative basis according to the schedule provided in this 24 subparagraph paragraph , which shall not exceed the following: 25 (a) (1) For the second retail motor fuel site, six thousand 26 dollars. 27 (b) (2) For the third retail motor fuel site, six thousand 28 dollars. 29 (c) (3) For the fourth retail motor fuel site, six thousand 30 dollars. 31 (d) (4) For the fifth retail motor fuel site, six thousand 32 dollars. 33 Sec. 23. Section 159A.16, subsection 3, Code 2021, is 34 amended to read as follows: 35 -14- LSB 1311SV (1) 89 da/ns 14/ 31
S.F. 481 3. Moneys in the renewable fuel infrastructure fund are 1 appropriated to the department exclusively to support and 2 market the renewable fuel infrastructure programs as provided 3 in sections 159A.14 and 159A.15 , and as allocated in financial 4 incentives by the renewable fuel infrastructure board created 5 in section 159A.13 . 6 a. (1) For each fiscal year of the period beginning July 1, 7 2021, and ending June 30, 2024, not more than one million two 8 hundred fifty thousand dollars shall be allocated to support 9 the renewable fuel infrastructure program for retail motor 10 fuel sites as provided in section 159A.14. The moneys shall 11 be used exclusively to finance the installation, replacement, 12 or conversion of infrastructure to be used to store biodiesel, 13 or store and dispense biodiesel blended fuel, or blend and 14 dispense biodiesel blended fuel as provided in that section. 15 (2) This paragraph “a” is repealed July 1, 2024. 16 b. Up to For the fiscal year beginning July 1, 2021, and 17 for each fiscal year thereafter, not more than fifty thousand 18 dollars shall be allocated each fiscal year to the department 19 to support the administration of the programs. 20 c. The For the fiscal year beginning July 1, 2021, and 21 for each fiscal year thereafter, the department may use up to 22 one and one-half percent of the program funds to market the 23 programs. Otherwise the moneys shall not be transferred, used, 24 obligated, appropriated, or otherwise encumbered except to 25 allocate as financial incentives under the programs. 26 Sec. 24. NEW SECTION . 159A.17 Appropriation. 27 For the fiscal year beginning July 1, 2021, and ending 28 June 30, 2022, and for each fiscal year thereafter, there 29 is appropriated from the general fund of the state to the 30 renewable fuel infrastructure fund created in section 159A.16 31 five million dollars. 32 Sec. 25. RENEWABLE FUEL INFRASTRUCTURE AGREEMENTS. The 33 department of agriculture and land stewardship shall continue 34 to administer any outstanding cost-share agreement executed 35 -15- LSB 1311SV (1) 89 da/ns 15/ 31
S.F. 481 prior to July 1, 2024, in which a participating person 1 was awarded a grant to improve a retail motor fuel site by 2 installing, replacing, or converting infrastructure to be used 3 to store and dispense biodiesel blended fuel or blend and 4 dispense biodiesel blended fuel as provided in section 159A.14, 5 as amended by this Act. 6 PART B 7 REQUIREMENTS FOR STORAGE AND DISPENSING INFRASTRUCTURE 8 Sec. 26. Section 323.4A, subsection 2, paragraphs a and b, 9 Code 2021, are amended to read as follows: 10 a. Installing, converting, or operating a storage tank 11 or a dispenser located on the distributor’s or dealer’s 12 business premises for use in storing or dispensing renewable 13 fuel. However, this paragraph does not apply to a dealer or 14 distributor whose business premises are leased from the other 15 party furnishing the renewable fuel. 16 b. Using a dispenser to dispense ethanol blended gasoline, 17 including gasoline with a specified blend or a range of blends 18 under chapter 214A , if the dispenser is approved as required by 19 the state fire marshal for dispensing the specified blend or 20 range of blends , including as provided in section 455G.31 . 21 Sec. 27. NEW SECTION . 455G.32 Definitions. 22 As used in this subchapter unless the context otherwise 23 requires: 24 1. “Motor fuel” means the same as defined in section 214A.1. 25 2. “Motor fuel storage and dispensing infrastructure” means 26 the same as defined in section 214A.1. 27 3. “Retail dealer” means the same as defined in section 28 214A.1. 29 Sec. 28. NEW SECTION . 455G.33 Classifications. 30 For purposes of this subchapter, motor fuel shall be 31 classified in the same manner as provided in section 214A.2. 32 Sec. 29. NEW SECTION . 455G.34 Restrictions. 33 1. A retail dealer shall not install, replace, or convert 34 motor fuel storage and dispensing infrastructure unless the 35 -16- LSB 1311SV (1) 89 da/ns 16/ 31
S.F. 481 installed, replaced, or converted infrastructure is capable of 1 storing and dispensing ethanol blended gasoline classified as 2 E-85 or higher. 3 2. The infrastructure must be all of the following: 4 a. Listed as compatible for use with ethanol blended 5 gasoline classified as E-85 or higher by either an independent 6 testing laboratory approved by the manufacturer or by 7 underwriters laboratories. 8 b. Approved by the state fire marshal subject to conditions 9 determined necessary by the state fire marshal. The state 10 fire marshal may waive the requirement in paragraph “a” upon 11 satisfaction that a substitute requirement serves the same 12 purpose. 13 Sec. 30. REPEAL. Section 455G.31, Code 2021, is repealed. 14 PART C 15 EFFECTIVE DATE 16 Sec. 31. EFFECTIVE DATE. This division of this Act, being 17 deemed of immediate importance, takes effect upon enactment. 18 DIVISION III 19 TAXATION 20 Sec. 32. Section 422.11O, subsection 8, Code 2021, is 21 amended to read as follows: 22 8. This section is repealed on January 1, 2025 2029 . 23 Sec. 33. Section 422.11P, subsection 4, Code 2021, is 24 amended to read as follows: 25 4. For a retail dealer whose tax year is on a calendar year 26 basis, the retail dealer shall calculate the amount of the tax 27 credit by multiplying a designated rate by the retail dealer’s 28 total biodiesel blended fuel gallonage as provided in section 29 452A.31 which qualifies under this subsection . 30 a. In order to qualify for the tax credit, the biodiesel 31 blended fuel must be classified as B-5 B-11 or higher as 32 provided in paragraph “b” this subsection . 33 b. (1) Beginning January 1, 2018 2022 , the designated rate 34 is determined as follows: 35 -17- LSB 1311SV (1) 89 da/ns 17/ 31
S.F. 481 (1) For biodiesel blended fuel classified as B-5 or higher 1 but not as high as B-11, the designated rate is three and 2 one-half cents. 3 (2) For biodiesel blended fuel classified as B-11 or higher, 4 the designated rate is five and one-half cents. 5 (a) During the period beginning January 1 and ending April 6 14 for biodiesel blended fuel classified as B-11 or higher, the 7 designated rate is four cents. 8 (b) During the period beginning April 15 and ending 9 September 30 for biodiesel blended fuel classified as B-20 or 10 higher, the designated rate is six cents. 11 (c) During the period beginning October 1 and ending 12 December 30 for biodiesel blended fuel classified as B-11 or 13 higher, the designated rate is four cents. 14 (2) This paragraph “b” is repealed January 1, 2024. 15 c. Beginning January 1, 2024, the designated rate is 16 determined as follows: 17 (1) During the period beginning January 1 and ending April 18 14 for biodiesel blended fuel classified as B-11 or higher, the 19 designated rate is four cents. 20 (2) During the period beginning April 15 and ending 21 September 30 for biodiesel blended fuel classified as B-30 or 22 higher, the designated rate is ten cents. 23 (3) During the period beginning October 1 and ending 24 December 30 for biodiesel blended fuel classified as B-11 or 25 higher, the designated rate is four cents. 26 Sec. 34. Section 422.11P, subsection 8, Code 2021, is 27 amended to read as follows: 28 8. This section is repealed January 1, 2025 2029 . 29 Sec. 35. Section 422.11Y, subsection 4, paragraph b, Code 30 2021, is amended to read as follows: 31 b. The Beginning January 1, 2022, the designated rate of the 32 tax credit for the following three periods within each calendar 33 year is as follows: 34 (1) For the first period beginning January 1 and ending May 35 -18- LSB 1311SV (1) 89 da/ns 18/ 31
S.F. 481 31, three cents. 1 (2) For the second period beginning June 1 and ending 2 September 15, ten cents. 3 (3) For the third period beginning September 16 and ending 4 December 31, three cents. 5 Sec. 36. Section 422.11Y, subsection 9, Code 2021, is 6 amended to read as follows: 7 9. This section is repealed on January 1, 2025 2029 . 8 Sec. 37. Section 422.33, subsection 11B, paragraph c, Code 9 2021, is amended to read as follows: 10 c. This subsection is repealed on January 1, 2025 2029 . 11 Sec. 38. Section 422.33, subsection 11C, paragraph c, Code 12 2021, is amended to read as follows: 13 c. This subsection is repealed on January 1, 2025 2029 . 14 Sec. 39. Section 422.33, subsection 11D, paragraph c, Code 15 2021, is amended to read as follows: 16 c. This subsection is repealed on January 1, 2025 2029 . 17 Sec. 40. Section 452A.12, subsection 2, Code 2021, is 18 amended to read as follows: 19 2. A person while transporting motor fuel or undyed special 20 fuel from a refinery or marine or pipeline terminal in this 21 state or from a point outside this state over the highways 22 of this state in service other than that under subsection 23 1 shall carry in the vehicle a loading invoice showing the 24 name and address of the seller or consignor, the date and 25 place of loading, and the kind and quantity of motor fuel or 26 special fuel loaded, together with invoices showing the kind 27 and quantity of each delivery and the name and address of each 28 purchaser or consignee. An invoice carried pursuant to this 29 subsection for ethanol blended gasoline or biodiesel blended 30 fuel shall state its designation classification as provided in 31 section 214A.2 . 32 Sec. 41. Section 452A.31, subsection 3, paragraph a, 33 subparagraph (2), Code 2021, is amended to read as follows: 34 (2) (a) The total B-11 gallonage which is the total number 35 -19- LSB 1311SV (1) 89 da/ns 19/ 31
S.F. 481 of gallons of biodiesel blended fuel classified as B-11 or 1 higher up to but not including B-20 . 2 (b) The total B-20 gallonage which is the total number of 3 gallons of biodiesel blended fuel classified as B-20 or higher 4 up to but not including B-30. 5 (c) The total B-30 gallonage which is the total number of 6 gallons of biodiesel blended fuel classified as B-30 or higher 7 up to and including B-99. 8 Sec. 42. 2006 Iowa Acts, chapter 1142, section 49, 9 subsection 3, as amended by 2011 Iowa Acts, chapter 113, 10 section 20, and 2016 Iowa Acts, chapter 1106, section 6, is 11 amended to read as follows: 12 3. For a retail dealer who may claim an E-85 gasoline 13 promotion tax credit under section 422.11O or 422.33, 14 subsection 11B , as enacted in this Act and amended in 15 subsequent Acts, in calendar year 2024 2028 and whose tax 16 year ends prior to December 31, 2024 2028 , the retail dealer 17 may continue to claim the tax credit in the retail dealer’s 18 following tax year. In that case, the tax credit shall be 19 calculated in the same manner as provided in section 422.11O 20 or 422.33, subsection 11B , as enacted in this Act and amended 21 in subsequent Acts, for the remaining period beginning on the 22 first day of the retail dealer’s new tax year until December 23 31, 2024 2028 . For that remaining period, the tax credit shall 24 be calculated in the same manner as a retail dealer whose tax 25 year began on the previous January 1 and who is calculating the 26 tax credit on December 31, 2024 2028 . 27 Sec. 43. 2011 Iowa Acts, chapter 113, section 31, as amended 28 by 2016 Iowa Acts, chapter 1106, section 10, is amended to read 29 as follows: 30 SEC. 31. TAX CREDIT AVAILABILITY. For a retail dealer 31 who may claim a biodiesel blended fuel promotion tax credit 32 under section 422.11P or 422.33, subsection 11C , as amended 33 in this Act and amended in subsequent Acts, in calendar year 34 2024 2028 , and whose tax year ends prior to December 31, 2024 35 -20- LSB 1311SV (1) 89 da/ns 20/ 31
S.F. 481 2028 , the retail dealer may continue to claim the tax credit in 1 the retail dealer’s following tax year. In that case, the tax 2 credit shall be calculated in the same manner as provided in 3 section 422.11P or 422.33, subsection 11C , as amended in this 4 Act and amended in subsequent Acts, for the remaining period 5 beginning on the first day of the retail dealer’s new tax year 6 until December 31, 2024 2028 . For that remaining period, the 7 tax credit shall be calculated in the same manner as a retail 8 dealer whose tax year began on the previous January 1 and who 9 is calculating the tax credit on December 31, 2024 2028 . 10 Sec. 44. 2011 Iowa Acts, chapter 113, section 37, as amended 11 by 2016 Iowa Acts, chapter 1106, section 3, is amended to read 12 as follows: 13 SEC. 37. TAX CREDIT AVAILABILITY. For a retail dealer who 14 may claim an E-15 plus gasoline promotion tax credit under 15 section 422.11Y or 422.33, subsection 11D , as enacted in this 16 Act and amended in subsequent Acts, in calendar year 2024 17 2028 , and whose tax year ends prior to December 31, 2024 2028 , 18 the retail dealer may continue to claim the tax credit in the 19 retail dealer’s following tax year. In that case, the tax 20 credit shall be calculated in the same manner as provided in 21 section 422.11Y or 422.33, subsection 11D , as enacted in this 22 Act and amended in subsequent Acts, for the remaining period 23 beginning on the first day of the retail dealer’s new tax year 24 until December 31, 2024 2028 . For that remaining period, the 25 tax credit shall be calculated in the same manner as a retail 26 dealer whose tax year began on the previous January 1 and who 27 is calculating the tax credit on December 31, 2024 2028 . 28 Sec. 45. EFFECTIVE DATE. This division of this Act takes 29 effect January 1, 2022. 30 DIVISION IV 31 RENEWABLE FUEL USE BY STATE MOTOR VEHICLES 32 Sec. 46. Section 8A.362, subsection 3, paragraph b, Code 33 2021, is amended by striking the paragraph and inserting in 34 lieu thereof the following: 35 -21- LSB 1311SV (1) 89 da/ns 21/ 31
S.F. 481 b. The director shall provide for the purchase and operation 1 of motor vehicle fuel and motor vehicles in the manner provided 2 in section 8A.362A. 3 Sec. 47. NEW SECTION . 8A.362A Definitions and 4 classifications. 5 1. As used in section 8A.362B and 8A.362C, unless the 6 context otherwise requires: 7 a. “Biodiesel blended fuel” means the same as defined in 8 section 214A.1. 9 b. “Biofuel” means the same as defined in section 214A.1. 10 c. “Determination period” means any twelve-month period 11 beginning January 1 and ending December 31. 12 d. “Ethanol blended gasoline” means the same as defined in 13 section 214A.1. 14 e. “Renewable fuel” means ethanol blended gasoline or 15 biodiesel blended gasoline that meets the standards for that 16 type of motor fuel as provided in section 214A.2. 17 2. For purposes of sections 8A.362B and 8A.362C, a renewable 18 fuel shall be classified in the same manner as provided in 19 section 214A.2. 20 Sec. 48. NEW SECTION . 8A.362B Motor vehicle purchases —— 21 renewable fuels. 22 1. A gasoline-powered motor vehicle, or a diesel-powered 23 motor vehicle, operating under section 8A.362, shall be powered 24 using the highest classification of renewable fuel if all of 25 the following apply: 26 a. The manufacturer of the motor vehicle expressly warrants 27 that the classification of renewable fuel is compatible with 28 the motor vehicle’s normal operation. 29 b. That classification of renewable fuel is commercially 30 available in the region where the motor vehicle is being 31 operated. 32 c. No emergency situation exists that requires the immediate 33 use of a motor fuel regardless of whether it has been blended 34 with a biofuel. 35 -22- LSB 1311SV (1) 89 da/ns 22/ 31
S.F. 481 2. If the highest classification of renewable fuel is able 1 to be used to power a motor vehicle as provided in subsection 2 1, a state-issued credit card shall not be used to purchase 3 motor fuel other than the highest classification of motor fuel. 4 3. A motor vehicle subject to this section shall be affixed 5 with a brightly colored, highly visible sticker which notifies 6 the traveling public that the motor vehicle is powered using 7 the highest classification of renewable fuel. However, the 8 sticker is not required to be affixed to an unmarked vehicle 9 used for purposes of providing law enforcement or security. 10 4. As part of the department’s competitive bidding 11 procedure for the purchase of a diesel-powered motor vehicle, 12 the director shall require that a bidder certify that the 13 motor vehicle’s manufacturer expressly warrants that the motor 14 vehicle is capable of being powered using biodiesel blended 15 fuel classified as B-20 or higher. 16 Sec. 49. NEW SECTION . 8A.362C Motor vehicle purchases —— 17 renewable fuels —— reports. 18 1. The department shall compile information regarding 19 the department’s compliance with section 8A.362B during the 20 previous determination period. The information shall include 21 all of the following: 22 a. Of the motor vehicles used to routinely travel on the 23 state’s highways that are powered using gasoline, all of the 24 following: 25 (1) The total number of such motor vehicles according to 26 model year of manufacture. 27 (2) The total number of such motor vehicles according to 28 model year of manufacture that are capable of being powered 29 using ethanol blended gasoline classified as E-15 and E-85 30 according to the express warranty of the motor vehicle’s 31 manufacturer. 32 (3) The total number of gallons of ethanol blended gasoline 33 classified as E-15, and the total number of gallons of ethanol 34 blended gasoline classified as E-85, purchased during the 35 -23- LSB 1311SV (1) 89 da/ns 23/ 31
S.F. 481 preceding determination period, to the extent such information 1 may be practically obtained. 2 b. Of the motor vehicles used to routinely travel on the 3 state’s highways that are powered using diesel fuel, all of the 4 following: 5 (1) The total number of such motor vehicles according to 6 model year of manufacture. 7 (2) The total number of such motor vehicles according to 8 model year of manufacture that are capable of being powered 9 using biodiesel blended fuel classified as B-20 according to 10 the express warranty of the motor vehicle’s manufacturer. 11 (3) The total number of gallons of biodiesel blended fuel 12 classified as B-20 purchased during the preceding determination 13 period, to the extent such information may be practically 14 obtained. 15 2. The department of administrative services shall 16 prepare a state fleet renewable fuels compliance report which 17 shall consolidate information compiled by the department 18 under subsection 1 together with information compiled by 19 the commission for the blind pursuant to section 216B.3, 20 institutions governed by the state board of regents pursuant to 21 section 262.25A, the department of transportation pursuant to 22 section 307.21, and the department of corrections pursuant to 23 section 904.312A. The department of administrative services 24 shall submit the state fleet renewable fuels compliance report 25 to the governor and general assembly not later than March 1 of 26 each year. 27 Sec. 50. Section 216B.3, subsection 16, paragraph a, Code 28 2021, is amended by striking the paragraph and inserting in 29 lieu thereof the following: 30 a. Provide for the purchase and operation of motor vehicles 31 powered by renewable fuel in the same manner required for the 32 director of the department of administrative services pursuant 33 to section 8A.362B. The commission shall compile information 34 regarding compliance with the provisions of this paragraph in 35 -24- LSB 1311SV (1) 89 da/ns 24/ 31
S.F. 481 the same manner as the department of administrative services 1 pursuant to section 8A.362C. The commission shall cooperate 2 with the department of administrative services in preparing the 3 annual state fleet renewable fuels compliance report regarding 4 compliance with this paragraph as provided in section 8A.362C. 5 Sec. 51. Section 262.25A, subsection 2, Code 2021, is 6 amended by striking the subsection and inserting in lieu 7 thereof the following: 8 2. An institution shall provide for the purchase and 9 operation of motor vehicles powered by renewable fuel in 10 the same manner required for the director of the department 11 of administrative services pursuant to section 8A.362B. An 12 institution shall compile information regarding compliance 13 with the provisions of this subsection in the same manner as 14 the department of administrative services pursuant to section 15 8A.362C. The state board of regents shall cooperate with 16 the department of administrative services in preparing the 17 annual state fleet renewable fuels compliance report regarding 18 compliance with this paragraph as provided in section 8A.362C. 19 Sec. 52. Section 307.21, subsection 4, Code 2021, is amended 20 by striking the subsection and inserting in lieu thereof the 21 following: 22 4. The administrator shall provide for the purchase and 23 operation of motor vehicles powered by renewable fuel in 24 the same manner required for the director of the department 25 of administrative services pursuant to section 8A.362B. 26 The department of transportation shall compile information 27 regarding compliance with the provisions of this subsection in 28 the same manner as the department of administrative services 29 pursuant to section 8A.362C. The department of transportation 30 shall cooperate with the department of administrative services 31 in preparing the annual state fleet renewable fuels compliance 32 report regarding compliance with this subsection as provided 33 in section 8A.362C. 34 Sec. 53. Section 904.312A, subsection 1, Code 2021, is 35 -25- LSB 1311SV (1) 89 da/ns 25/ 31
S.F. 481 amended by striking the subsection and inserting in lieu 1 thereof the following: 2 1. The department of corrections shall provide for the 3 purchase and operation of motor vehicles powered by renewable 4 fuel in the same manner required for the director of the 5 department of administrative services pursuant to section 6 8A.362B. The department of corrections shall compile 7 information regarding compliance with the provisions of 8 this subsection in the same manner as the department of 9 administrative services pursuant to section 8A.362C. The 10 department of corrections shall cooperate with the department 11 of administrative services in preparing the annual state fleet 12 renewable fuels compliance report regarding compliance with 13 this subsection as provided in section 8A.362C. 14 Sec. 54. EFFECTIVE DATE. This division of this Act, being 15 deemed of immediate importance, takes effect upon enactment. 16 EXPLANATION 17 The inclusion of this explanation does not constitute agreement with 18 the explanation’s substance by the members of the general assembly. 19 GENERAL. This bill provides for the regulation of motor 20 fuel, which provisions are administered and enforced by 21 the department of agriculture and land stewardship (DALS) 22 (Code chapter 214A). This includes two types of motor fuel, 23 including gasoline, specifically ethanol blended gasoline 24 beginning with an ethanol percentage of between 9 and 10 25 percent per volume (E-10) and diesel fuel, specifically 26 biodiesel blended fuel beginning with a minimum biodiesel 27 percentage of 1 percent (B-1). The bill limits retail dealers 28 (dealers) operating motor fuel sites (sites) from advertising 29 for sale or selling certain types of motor fuel designated as 30 restricted use. It revises certain advertising and notice 31 provisions, including the use of decals affixed to motor fuel 32 pumps. 33 The bill amends other Code chapters providing for motor fuel 34 infrastructure such as motor fuel storage tanks, including 35 -26- LSB 1311SV (1) 89 da/ns 26/ 31
S.F. 481 programs to assist dealers installing, converting, or replacing 1 infrastructure, which provisions are also administered by DALS 2 (Code chapter 159A), and the regulation of infrastructure used 3 to store and dispense ethanol blended gasoline regulated by 4 the state fire marshal and the department of natural resources 5 (Code chapter 455G). It also amends tax credits which provide 6 incentives for consumers to purchase renewable fuel from 7 dealers (Code chapters 422 and 452A). Finally, it requires the 8 use of higher classifications of renewable fuel powering motor 9 vehicles in the state fleet (Code chapters 8A, 216B, 262, 307, 10 and 904). 11 RESTRICTED USE GASOLINE. The bill designates nonblended 12 gasoline (E-0) as restricted use gasoline (amended Code section 13 214A.1 and new Code section 214A.31). It also designates 14 ethanol blended gasoline classified as E-10 or higher up to 15 but not including E-15 as restricted use gasoline on and 16 after January 1, 2025. The bill does recognize two types of 17 exceptions. A single dispensing unit may be reserved at a site 18 to dispense restricted use gasoline. A restricted site may be 19 used to dispense restricted use gasoline from any number of 20 dispensing units. Such sites include an airport, a facility 21 servicing motor vehicles engaged in racing, a marina, or a 22 location used to store or sell older model motor vehicles, 23 all-terrain vehicles, motorcycles, or snowmobiles. 24 RESTRICTED USE DIESEL FUEL. The bill designates nonblended 25 diesel (B-0) as restricted use diesel fuel (amended Code 26 section 214A.2 and new Code section 214A.32) and designates 27 biodiesel blended fuel classified as B-1 or higher up to but 28 not including B-20 as restricted use diesel fuel subject to 29 certain exceptions. One dispensing unit may be reserved at 30 a site to dispense restricted use diesel fuel. Any number 31 of dispensing units at a site may dispense biodiesel blended 32 fuel classified as B-5 or higher annually between October 1 33 and ending April 14. Until September 30, 2023, any number 34 of dispensing units at a site may dispense biodiesel blended 35 -27- LSB 1311SV (1) 89 da/ns 27/ 31
S.F. 481 fuel classified as B-11 or higher annually between April 15 1 and September 30. A restricted site may be used to dispense 2 restricted use diesel fuel from any number of dispensing units. 3 Such sites include an airport, an electric generating plant, 4 and a facility storing and serving railroad locomotives. 5 ADVERTISING AND NOTICE PROVISIONS. The bill requires that 6 when advertising motor fuel for sale, a dealer must designate 7 its restricted status (amended Code section 214A.3). It 8 eliminates a provision that requires that a decal be placed 9 on a motor fuel pump that notifies the traveling public that 10 gasoline is blended with ethanol. It provides that a decal 11 must identify motor fuel as restricted (amended Code section 12 214A.16). 13 WAIVER AND SUSPENSION. The bill authorizes the governor or 14 secretary of agriculture to issue an order temporarily waiving 15 a requirement that a retail dealer comply with the restricted 16 use requirements if there is credible evidence that the retail 17 dealer has not been able to reasonably obtain the required 18 classification of renewable fuel (new Code section 214A.33). 19 The governor may issue an order suspending compliance for 20 all retail dealers in the state or a geographic segment of 21 the state if the governor determines it is not commercially 22 feasible for the retail dealers to obtain the required 23 classification (new Code section 214A.34). 24 PENALTY. A person who violates a provision of Code chapter 25 214A is guilty of a serious misdemeanor (Code section 214A.11). 26 A serious misdemeanor is punishable by confinement for no more 27 than one year and a fine of at least $430 but not more than 28 $2,560. Alternatively, the state may initiate an alternative 29 civil proceeding against the person for at least $100 but not 30 more than $1,000 for each violation. 31 INFRASTRUCTURE. The bill revises the renewable fuel 32 infrastructure program for retail motor fuel sites (program) 33 by eliminating a requirement that moneys used to support 34 improvements be used to store and dispense E-15. The 35 -28- LSB 1311SV (1) 89 da/ns 28/ 31
S.F. 481 infrastructure must be capable of storing and dispensing 1 ethanol blended gasoline classified as E-85 or higher (amended 2 Code section 159A.14). The bill eliminates a requirement 3 that moneys used to support improvements be used to store and 4 dispense biodiesel of any classification and replaces it with a 5 requirement that the improvements be used to store and dispense 6 biodiesel blended fuel classified as B-20 or higher (amended 7 Code section 159A.14). The bill provides that the financial 8 incentives for biodiesel improvements must be awarded pursuant 9 to a three-year cost-share agreement not to exceed 50 percent 10 of the cost of the improvement or $30,000, whichever is less. 11 In addition, the retail dealer must agree to advertise for sale 12 and sell biodiesel blended fuel classified as B-20 or higher 13 from April 15 to September 30. The bill eliminates that part 14 of the program which finances biodiesel improvements on July 15 1, 2024. 16 The bill provides that for the fiscal years of the period 17 beginning July 1, 2021, and ending June 30, 2024, $1.25 million 18 is allocated from the Iowa renewable fuel infrastructure fund 19 to support that part of the program financing infrastructure 20 used to store and dispense or blend and dispense biodiesel 21 blended fuel (amended Code section 159A.16). For each 22 fiscal year beginning July 1, 2021, and thereafter, the bill 23 appropriates $5 million from the state general fund (new Code 24 section 159A.17) to the renewable fuel infrastructure fund 25 to support the entire program as well as the renewable fuel 26 infrastructure program for biodiesel terminal facilities (Code 27 section 159A.15). 28 The bill provides that a retail dealer is prohibited from 29 installing, replacing, or converting motor fuel storage and 30 dispensing infrastructure, unless it is capable of storing 31 and dispensing ethanol blended gasoline classified as E-85 or 32 higher (new Code section 455G.32). The bill provides that 33 the infrastructure must be listed as compatible with E-85 by 34 a testing laboratory and must be approved by the state fire 35 -29- LSB 1311SV (1) 89 da/ns 29/ 31
S.F. 481 marshal. 1 TAX CREDITS. The bill extends the expiration date of three 2 renewable fuel tax programs from January 1, 2025, to January 3 1, 2029, including: (1) the E-85 gasoline promotion tax 4 credit (amended Code sections 422.11O and 422.33(11B)), (2) 5 the biodiesel blended fuel tax credit (Code sections 422.11P 6 and 422.33(11C)), and (3) the E-15 plus gasoline promotion tax 7 credit (amended Code sections 422.11Y and 422.33(11D)). In 8 each case, the tax credit is calculated by taking the number of 9 gallons of renewable fuel sold multiplied by a designated rate 10 (rate). The rate may differ depending upon the time of year 11 the type of renewable fuel is sold or upon its classification. 12 For the biodiesel blended fuel tax credit, the bill replaces 13 a system allocating two different rates based on both (1) the 14 time of year sold and (2) its classification. During the first 15 period beginning January 1 and ending April 14, and the third 16 period beginning October 1 and ending December 31, the rate 17 is 4 cents for biodiesel blended fuel classified as B-11 or 18 higher. For the second period beginning April 15 and ending 19 September 30, the rate is 6 cents for biodiesel blended fuel 20 classified as B-20 or higher, until January 1, 2024. On and 21 after that date, the rate for the second period is 10 cents for 22 biodiesel blended fuel classified as B-30 or higher. 23 USE OF RENEWABLE FUEL BY THE STATE MOTOR VEHICLE FLEET. 24 Current law requires state and local governments to power 25 motor vehicles using any classification of renewable fuel 26 (E-10 or B-1). A state-issued credit card cannot be used 27 to purchase motor fuel other than renewable fuel unless it 28 is not commercially available or there is an emergency. The 29 motor vehicle being powered by motor fuel must be affixed with 30 a sticker that notifies the traveling public that the motor 31 vehicle is powered using renewable fuel. The bill provides 32 that a motor vehicle which is part of the state government 33 fleet must be powered using the highest classification of 34 renewable fuel available so long as (1) it is warranted by 35 -30- LSB 1311SV (1) 89 da/ns 30/ 31
S.F. 481 the motor vehicle’s manufacturer, (2) that classification is 1 available, and (3) an emergency situation does not exist. 2 The bill also requires a state entity to revise its bidding 3 procedures as necessary to account for the purchase of motor 4 vehicles powered by biodiesel blended fuel classified as 5 B-20 or higher. The state entities involved include the 6 department of administrative services (new Code sections 7 8A.362A, 8A.362B, and 8A.362C), the commission for the blind 8 (amended Code section 216B.3), institutions governed by the 9 board of regents (amended Code section 262.25A), the department 10 of transportation (amended Code section 307.21), and the 11 department of corrections (amended Code section 904.312A). 12 Finally, the bill requires the department of administrative 13 services, in cooperation with the other entities operating 14 motor vehicles, to prepare an annual report to be submitted 15 to the governor and general assembly providing information 16 regarding the number of state motor vehicles powered using 17 motor fuel, including gasoline and diesel fuel, the number 18 of those motor vehicles capable of being powered using E-15 19 and E-85 or B-20, and the number of gallons of renewable fuel 20 purchased. 21 EFFECTIVE DATES. The bill takes effect upon enactment other 22 than the tax credit provisions which take effect January 1, 23 2022. 24 -31- LSB 1311SV (1) 89 da/ns 31/ 31
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