Text: HF2631            Text: HF2633
Complete Bill History


House File 2632

HOUSE FILE BY COMMITTEE ON AGRICULTURE (SUCCESSOR TO HSB 746) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to renewable fuel, including by providing for 2 infrastructure associated with storing, blending, and 3 dispensing renewable fuel, modifying tax credits, providing 4 for the purchase of renewable fuels by governmental entities, 5 providing for renewable fuel marketing efforts, providing for 6 retroactive applicability, and providing an effective date. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 TLSB 6451HV 82 9 da/nh/5 PAG LIN 1 1 DIVISION I 1 2 RENEWABLE FUEL INFRASTRUCTURE 1 3 Section 1. Section 15G.201, subsection 1, Code 2007, is 1 4 amended to read as follows: 1 5 1. "Biodiesel", "biodiesel blended fuel", "biodiesel 1 6 fuel", "E=85 gasoline", "ethanol", "ethanol blended gasoline", 1 7 "gasoline", "motor fuel", "motor fuel pump", "retail dealer", 1 8 and "retail motor fuel site" mean the same as defined in 1 9 section 214A.1. 1 10 Sec. 2. Section 15G.201, Code 2007, is amended by adding 1 11 the following new subsections: 1 12 NEW SUBSECTION. 4A. "Motor fuel pump" and "motor fuel 1 13 blender pump" or "blender pump" mean the same as defined in 1 14 section 214.1. 1 15 NEW SUBSECTION. 5A. "Tank vehicle" means the same as 1 16 defined in section 321.1. 1 17 Sec. 3. Section 15G.201, subsection 6, Code 2007, is 1 18 amended by adding the following new paragraph: 1 19 NEW PARAGRAPH. c. A biofuel manufacturer that is in the 1 20 business of producing ethanol or biodiesel from biomass as 1 21 defined in section 469.31. 1 22 Sec. 4. NEW SECTION. 15G.201A CLASSIFICATION OF 1 23 RENEWABLE FUEL. 1 24 For purposes of this division, ethanol blended fuel and 1 25 biodiesel fuel shall be classified in the same manner as 1 26 provided in section 214A.2. 1 27 Sec. 5. Section 15G.203, subsection 1, Code Supplement 1 28 2007, is amended to read as follows: 1 29 1. The purpose of the program is to improve retail motor 1 30 fuel sites by installing, replacing, or converting motor fuel 1 31 storage and dispensing infrastructure. The infrastructure 1 32 must be to be used to store, blend, or dispense renewable 1 33 fuel. The infrastructure shall be ethanol infrastructure or 1 34 biodiesel infrastructure. 1 35 a. (1) Ethanol infrastructure shall be designed and shall 2 1 be used exclusively to store do any of the following: 2 2 (a) Store and dispense renewable fuel which is E=85 2 3 gasoline,. 2 4 (b) Store, blend, and dispense motor fuel from a motor 2 5 fuel blender pump, as required in this subparagraph 2 6 subdivision. The ethanol infrastructure may provide for the 2 7 storage of ethanol or ethanol blended gasoline, or for 2 8 blending ethanol with gasoline, so long as the ethanol 2 9 infrastructure includes a motor fuel blender pump which 2 10 dispenses different classifications of ethanol blended 2 11 gasoline and which allows E=85 gasoline to be dispensed at all 2 12 times that the blender pump is operating. 2 13 (2) Biodiesel infrastructure shall be designed and used 2 14 exclusively to do any of the following: 2 15 (a) Store and dispense biodiesel, or biodiesel blended 2 16 fuel on the. 2 17 (b) Blend or dispense biodiesel fuel from a motor fuel 2 18 blender pump. 2 19 b. The infrastructure must be part of any of the 2 20 following: 2 21 (1) The premises of a retail motor fuel sites site 2 22 operated by a retail dealers dealer. 2 23 (2) A tank vehicle operated by a retail dealer who 2 24 operates the premises of a retail motor fuel site. 2 25 c. The retail dealer must have been licensed as a dealer 2 26 pursuant to section 452A.4 for at least two years prior to the 2 27 effective date of this Act. 2 28 Sec. 6. Section 15G.203, subsection 3, Code Supplement 2 29 2007, is amended by striking the subsection. 2 30 Sec. 7. Section 15G.203, subsection 4, paragraph b, 2 31 subparagraphs (3) and (4), Code Supplement 2007, are amended 2 32 to read as follows: 2 33 (3) A statement describing how the retail motor fuel site 2 34 is to be improved, the total estimated cost of the planned 2 35 improvement, and the date when the infrastructure will be 3 1 first used to store and dispense the renewable fuel. 3 2 (4) A statement certifying that the infrastructure shall 3 3 not only be used to store or dispense motor fuel other than 3 4 E=85 gasoline, biodiesel, or biodiesel blended fuel to comply 3 5 with the provisions of this section and as specified in the 3 6 cost=share agreement, unless granted a waiver by the 3 7 infrastructure board pursuant to this section. The 3 8 infrastructure board may approve a waiver to store, blend, or 3 9 dispense biodiesel fuel for a retail motor fuel site upon the 3 10 request of a participating person. The waiver shall be for 3 11 any three=consecutive=month period from November through 3 12 February to account for temperature=related issues. However, 3 13 the cost=share agreement shall be extended for the period of 3 14 the waiver. 3 15 Sec. 8. Section 15G.203, subsection 6, Code Supplement 3 16 2007, is amended by striking the subsection. 3 17 Sec. 9. Section 15G.203, subsection 7, Code Supplement 3 18 2007, is amended to read as follows: 3 19 7. An award of financial incentives to a participating 3 20 person shall be on a cost=share basis in the form of a grant. 3 21 To 3 22 In order to participate in the program, an eligible person 3 23 must execute a cost=share agreement with the department as 3 24 approved by the infrastructure board in which the person 3 25 contributes a percentage of the total costs related to 3 26 improving the retail motor fuel site. Except as otherwise 3 27 provided in this section, a cost=share agreement shall not be 3 28 for more than three years. The infrastructure board may 3 29 approve multiple improvements to the same retail motor fuel 3 30 site for the full amount available for both ethanol 3 31 infrastructure and biodiesel infrastructure so long as the 3 32 improvements for ethanol infrastructure and for biodiesel 3 33 infrastructure are made under separate cost=share agreements. 3 34 a. Except as provided in paragraph "b", a participating 3 35 person may be awarded standard financial incentives. The 4 1 standard financial incentives awarded to the a participating 4 2 person for ethanol infrastructure improvements shall not 4 3 exceed fifty percent of the actual cost of making the 4 4 improvement or thirty fifty thousand dollars, whichever is 4 5 less. The standard financial incentives awarded to a 4 6 participating person for biodiesel infrastructure shall not 4 7 exceed fifty percent of the actual cost of making the 4 8 improvement or fifty thousand dollars, whichever is less. The 4 9 infrastructure board may approve multiple awards of standard 4 10 financial incentives to make improvements to a retail motor 4 11 fuel site so long as the total amount of the awards for 4 12 ethanol infrastructure or biodiesel infrastructure does not 4 13 exceed the limitations provided in this paragraph. 4 14 b. In addition to any standard financial incentives 4 15 awarded to a participating person under paragraph "a", the 4 16 participating person may be awarded supplemental financial 4 17 incentives to upgrade or replace a dispenser which is part of 4 18 gasoline storage and dispensing infrastructure used to store 4 19 and dispense E=85 gasoline as provided in section 455G.31. 4 20 The participating person is only eligible to receive the 4 21 supplemental financial incentives if the person installed the 4 22 dispenser not later than sixty days after the date of the 4 23 publication in the Iowa administrative bulletin of the state 4 24 fire marshal's order providing that a commercially available 4 25 dispenser is listed as compatible for use with E=85 gasoline 4 26 by an independent testing laboratory as provided in section 4 27 455G.31. The supplemental financial incentives awarded to the 4 28 participating person shall not exceed seventy=five percent of 4 29 the actual cost of making the improvement or thirty thousand 4 30 dollars, whichever is less. 4 31 Sec. 10. Section 15G.204, subsection 2, Code Supplement 4 32 2007, is amended by striking the subsection. 4 33 Sec. 11. Section 15G.204, subsection 4, Code Supplement 4 34 2007, is amended to read as follows: 4 35 4. a. An award of financial incentives to a participating 5 1 person shall be in the form of a grant. In order to 5 2 participate in the program, an eligible person must execute a 5 3 cost=share agreement with the department as approved by the 5 4 infrastructure board in which the person contributes a 5 5 percentage of the total costs related to improving the 5 6 terminal. The financial incentives awarded to the 5 7 participating person shall not exceed the following: 5 8 (1) For improvements to store or dispense biodiesel fuel 5 9 from B=1 or higher but not as high as B=99, fifty percent of 5 10 the actual cost of making the improvements or fifty thousand 5 11 dollars, whichever is less. 5 12 (2) For improvements to store or dispense biodiesel fuel 5 13 from B=99 to B=100, fifty percent of the actual cost of making 5 14 the improvements or one hundred thousand dollars, whichever is 5 15 less. 5 16 b. The infrastructure board may approve multiple awards to 5 17 make improvements to a terminal so long as the total amount of 5 18 the awards does not exceed the limitations provided in this 5 19 subsection. 5 20 Sec. 12. Section 214.1, Code 2007, is amended to read as 5 21 follows: 5 22 214.1 DEFINITIONS. 5 23 For the purpose of As used in this chapter, unless the 5 24 context otherwise requires: 5 25 1. "Biodiesel", "biodiesel fuel", "biofuel", "ethanol", 5 26 "motor fuel", "retail dealer", "retail motor fuel site", and 5 27 "wholesale dealer" mean the same as defined in section 214A.1. 5 28 2. "Commercial weighing and measuring device" or "device" 5 29 means the same as defined in section 215.26. 5 30 2. 3. "Motor fuel" means the same as defined in section 5 31 214A.1 fuel blender pump" or "blender pump" means a motor fuel 5 32 pump that dispenses a type of motor fuel that is blended from 5 33 two or more different types of motor fuels and which may 5 34 dispense more than one type of blended motor fuel. 5 35 3. 4. "Motor fuel pump" means a pump, meter, or similar 6 1 commercial weighing and measuring device used to measure and 6 2 dispense motor fuel on a retail basis. 6 3 4. "Retail dealer" means the same as defined in section 6 4 214A.1. 6 5 5. "Wholesale dealer" means the same as defined in section 6 6 214A.1 "Motor fuel storage tank" or "storage tank" means an 6 7 aboveground or belowground container that is a fixture used to 6 8 store an accumulation of motor fuel. 6 9 Sec. 13. Section 214.9, Code 2007, is amended to read as 6 10 follows: 6 11 214.9 SELF=SERVICE MOTOR FUEL PUMPS. 6 12 Self=service A self=service motor fuel pumps pump located 6 13 at a retail motor vehicle fuel stations site may be equipped 6 14 with an automatic latch=open devices device on the fuel 6 15 dispensing hose nozzle only if the nozzle valve is the 6 16 automatic closing type. 6 17 Sec. 14. Section 214A.1, Code 2007, is amended by adding 6 18 the following new subsection: 6 19 NEW SUBSECTION. 4A. "Biodiesel fuel" means biodiesel or 6 20 biodiesel blended fuel. 6 21 Sec. 15. Section 214A.1, subsections 9, 14, and 15, Code 6 22 2007, are amended to read as follows: 6 23 9. "E=85 gasoline" means ethanol blended gasoline 6 24 formulated with a minimum percentage of between seventy and 6 25 eighty=five percent by volume of ethanol, if the formulation 6 26 meets the standards provided in section 214A.2. 6 27 14. "Motor fuel pump" and "motor fuel blender pump" or 6 28 "blender pump" means the same as defined in section 214.1. 6 29 15. "Motor fuel storage tank" means an aboveground or 6 30 belowground container that is a fixture, used to keep an 6 31 accumulation of motor fuel the same as defined in section 6 32 214.1. 6 33 Sec. 16. Section 214A.1, Code 2007, is amended by adding 6 34 the following new subsection: 6 35 NEW SUBSECTION. 21A. "Unleaded gasoline" means gasoline, 7 1 including ethanol blended gasoline, if all of the following 7 2 applies: 7 3 a. It has an octane number of not less than eighty=seven 7 4 as provided in section 214A.2. 7 5 b. Lead or phosphorus compounds have not been 7 6 intentionally added to it. 7 7 c. It does not contain more than thirteen thousandths 7 8 grams of lead per liter and not more than thirteen 7 9 ten=thousandths grams of phosphorus per liter. 7 10 Sec. 17. Section 214A.2, subsection 3, paragraph b, Code 7 11 2007, is amended to read as follows: 7 12 b. If the motor fuel is advertised for sale or sold as 7 13 ethanol blended gasoline, the motor fuel must comply with 7 14 departmental standards which shall comply with specifications 7 15 for ethanol blended gasoline adopted by A.S.T.M. 7 16 international. For ethanol blended gasoline meet all of the 7 17 following shall apply requirements: 7 18 (1) Ethanol must be an agriculturally derived ethyl 7 19 alcohol that meets A.S.T.M. international specification D4806 7 20 for denatured fuel ethanol for blending with gasoline for use 7 21 as automotive spark=ignition engine fuel, or a successor 7 22 A.S.T.M. international specification, as established by rules 7 23 adopted by the department. 7 24 (2) Gasoline blended with ethanol must meet any of the 7 25 following requirements: 7 26 (a) For the gasoline, A.S.T.M. international specification 7 27 D4814. 7 28 (b) For the ethanol blended gasoline, A.S.T.M. 7 29 international specification D4814. 7 30 (c) For the gasoline, A.S.T.M. international specification 7 31 D4814 except for distillation, if, for E=10 or a 7 32 classification below E=10, the ethanol blended gasoline meets 7 33 the requirements of A.S.T.M. international specification 7 34 D4814. 7 35 (3) For ethanol blended gasoline other than E=85 gasoline, 8 1 at least ten nine percent of the gasoline by volume must be 8 2 ethanol. 8 3 (3) (4) A vapor pressure tolerance not to exceed one pound 8 4 per square inch. 8 5 (5) E=85 gasoline must be an agriculturally derived ethyl 8 6 alcohol that meets A.S.T.M. international specification D5798, 8 7 described as a fuel blend for use in ground vehicles with 8 8 automotive spark=ignition engines, or a successor A.S.T.M. 8 9 international specification, as established by rules adopted 8 10 by the department. 8 11 Sec. 18. Section 214A.2, Code 2007, is amended by adding 8 12 the following new subsection: 8 13 NEW SUBSECTION. 4A. Ethanol blended gasoline shall be 8 14 designated E=xx where "xx" is the volume percent of ethanol in 8 15 the ethanol blended gasoline and biodiesel shall be designated 8 16 B=xx where "xx" is the volume percent of biodiesel. 8 17 Sec. 19. Section 214A.2B, Code Supplement 2007, is amended 8 18 to read as follows: 8 19 214A.2B LABORATORY FOR MOTOR FUEL AND BIOFUELS. 8 20 A laboratory for motor fuel and biofuels is established at 8 21 a merged area school which is engaged in biofuels testing on 8 22 July 1, 2007, and which testing includes but is not limited to 8 23 B20 B=20 biodiesel fuel testing for motor trucks and the 8 24 ability of biofuels to meet A.S.T.M. international standards. 8 25 The laboratory shall conduct testing of motor fuel sold in 8 26 this state and biofuel which is blended in motor fuel in this 8 27 state to ensure that the motor fuel or biofuels meet the 8 28 requirements in section 214A.2. 8 29 Sec. 20. Section 214A.3, subsection 2, paragraph b, Code 8 30 2007, is amended to read as follows: 8 31 b. (1) Ethanol blended gasoline sold by a dealer shall be 8 32 designated E=xx where "xx" is the volume percent of ethanol in 8 33 the ethanol blended gasoline according to its classification 8 34 as provided in section 214A.2. However, a person advertising 8 35 E=10 gasoline may only designate it as ethanol blended 9 1 gasoline. A person advertising ethanol blended gasoline 9 2 formulated with a percentage of between seventy and 9 3 eighty=five percent by volume of ethanol shall designate it as 9 4 E=85. A person shall not knowingly falsely advertise ethanol 9 5 blended gasoline by using an inaccurate designation in 9 6 violation of this subparagraph. 9 7 (2) Biodiesel blended fuel shall be designated B=xx where 9 8 "xx" is the volume percent of biodiesel in the biodiesel 9 9 blended fuel according to its classification as provided in 9 10 section 214A.2. A person shall not knowingly falsely 9 11 advertise biodiesel blended fuel by using an inaccurate 9 12 designation in violation of this subparagraph. 9 13 Sec. 21. Section 455G.31, subsection 1, Code Supplement 9 14 2007, is amended by adding the following new paragraph: 9 15 NEW PARAGRAPH. 0a. "Dispenser" includes a motor fuel pump 9 16 as defined in section 214.1, including but not limited to a 9 17 motor fuel blender pump. 9 18 Sec. 22. Section 455G.31, subsection 1, paragraph b, Code 9 19 Supplement 2007, is amended to read as follows: 9 20 b. "Gasoline storage and dispensing infrastructure" means 9 21 any storage tank located below ground or above ground and any 9 22 associated equipment including but not limited to a pipe, 9 23 hose, connection, fitting seal, or motor fuel pump, which is 9 24 used to store, measure, and dispense gasoline by a retail 9 25 dealer. 9 26 Sec. 23. Section 15.401, Code 2007, is repealed. 9 27 Sec. 24. APPLICATIONS == RENEWABLE FUEL INFRASTRUCTURE 9 28 PROGRAM FOR RETAIL MOTOR FUEL SITES. A person who has already 9 29 received an award of financial incentives prior to the 9 30 effective date of this Act pursuant to section 15G.203 for the 9 31 costs of making improvements to ethanol infrastructure or 9 32 biodiesel infrastructure at a retail motor fuel site may 9 33 receive additional financial incentives for those same 9 34 improvements pursuant to section 15G.203 as amended by this 9 35 Act. The total amount of standard financial incentives 10 1 awarded to the person for making an improvement for ethanol 10 2 infrastructure shall not exceed fifty percent of the actual 10 3 cost of making the improvement or fifty thousand dollars, 10 4 whichever is less. The total amount of standard financial 10 5 incentives awarded to the person for making an improvement for 10 6 biodiesel infrastructure shall not exceed fifty percent of the 10 7 actual cost of making the improvement or fifty thousand 10 8 dollars, whichever is less. 10 9 Sec. 25. APPLICATIONS == RENEWABLE FUEL INFRASTRUCTURE 10 10 PROGRAM FOR BIODIESEL TERMINAL FACILITIES. A person who has 10 11 already received an award of financial incentives prior to the 10 12 effective date of this Act pursuant to section 15G.204 for the 10 13 costs of making improvements to biodiesel terminal facilities 10 14 to store or dispense biodiesel fuel from B=99 to B=100 may 10 15 receive additional financial incentives for those same 10 16 improvements pursuant to section 15G.204 as amended by this 10 17 Act. The total amount of financial incentives awarded to the 10 18 person for making such improvements shall not exceed in total 10 19 fifty percent of the actual cost of making the improvements or 10 20 one hundred thousand dollars, whichever is less. 10 21 Sec. 26. LEGISLATIVE INTENT == FUTURE REVENUE SOURCES. It 10 22 is the intent of the general assembly that all options be 10 23 examined in order to continue the financing of renewable fuel 10 24 infrastructure as provided in chapter 15G, subchapter II. 10 25 DIVISION II 10 26 INCOME TAX CREDIT 10 27 Sec. 27. Section 422.11N, subsection 4, paragraph b, 10 28 subparagraph (3), subparagraph subdivision (b), Code 10 29 Supplement 2007, is amended to read as follows: 10 30 (b) A shortage in the available biofuel feedstock 10 31 resulting in a dramatic decrease in biofuel inventories. 10 32 (c) Market conditions prevent ethanol blended gasoline 10 33 from being priced in a manner that is competitive with 10 34 gasoline that is not ethanol blended gasoline or that prevents 10 35 biodiesel fuel from being priced in a manner that is 11 1 competitive with diesel fuel that is not biodiesel fuel, 11 2 including all state incentives. The governor shall consider 11 3 adjusting the biofuel threshold percentage at any time that, 11 4 based on a statewide retail sale average, any of the following 11 5 applies: 11 6 (i) Ethanol blended gasoline is more than forty percent 11 7 more than gasoline that is not ethanol blended gasoline. 11 8 (ii) Biodiesel fuel is more than forty percent more than 11 9 diesel fuel that is not biodiesel fuel. 11 10 Sec. 28. Section 422.11P, subsection 1, paragraph a, Code 11 11 Supplement 2007, is amended to read as follows: 11 12 a. "Biodiesel blended fuel", "diesel fuel", and "retail 11 13 dealer" mean the same as defined in section 214A.1. 11 14 Sec. 29. Section 422.11P, subsections 2 and 3, Code 11 15 Supplement 2007, are amended to read as follows: 11 16 2. a. The taxes imposed under this division, less the 11 17 credits allowed under section 422.12, shall be reduced by the 11 18 amount of the biodiesel blended fuel tax credit for each tax 11 19 year that the taxpayer is eligible to claim a tax credit under 11 20 this subsection. For a taxpayer 11 21 a. In order to be eligible, all of the following must 11 22 apply: 11 23 (1) The taxpayer is a retail dealer who sells and 11 24 dispenses biodiesel blended fuel through a motor fuel pump in 11 25 the tax year in which the tax credit is claimed. 11 26 (2) Of the total gallons of diesel fuel that the retail 11 27 dealer sells and dispenses through all motor fuel pumps during 11 28 the retail dealer's tax year, fifty percent or more is 11 29 biodiesel blended fuel which meets the requirements of this 11 30 section. 11 31 (3) (2) The retail dealer complies with requirements of 11 32 the department established to administer this section. 11 33 b. The tax credit shall apply to biodiesel blended fuel 11 34 formulated with a minimum percentage of two percent by volume 11 35 of biodiesel, if the formulation meets the standards provided 12 1 in section 214A.2. 12 2 b. The tax credit shall be calculated separately for each 12 3 retail motor fuel site operated by the taxpayer. 12 4 3. The amount of the tax credit is three cents multiplied 12 5 calculated by multiplying a designated rate by the total 12 6 number of gallons of each class of biodiesel blended fuel sold 12 7 and dispensed by the retail dealer through all motor fuel 12 8 pumps operated by the retail dealer during the retail dealer's 12 9 tax year. The biodiesel fuel must meet the standards provided 12 10 for in section 214A.2. The classes of biodiesel fuel shall be 12 11 the same as provided in that section. The schedule of 12 12 designated rates for each class of biodiesel fuel is as 12 13 follows: 12 14 a. Three cents for biodiesel fuel which is classified as 12 15 B=2 or higher, but is not as high as B=5. 12 16 b. Seven and one=half cents for biodiesel fuel which is 12 17 classified as B=5 or higher, but is not as high as B=10. 12 18 c. Fifteen cents for biodiesel fuel which is classified as 12 19 B=10 or higher, but is not as high as B=20. 12 20 d. Thirty cents for biodiesel fuel which is classified as 12 21 B=20 or higher. 12 22 Sec. 30. Section 422.33, subsection 11C, paragraph c, Code 12 23 Supplement 2007, is amended to read as follows: 12 24 c. The tax credit shall be calculated separately for each 12 25 retail motor fuel site operated by the taxpayer. 12 26 d. This subsection is repealed on January 1, 2012. 12 27 Sec. 31. ETHANOL BLENDED GASOLINE TAX CREDITS == 12 28 TRANSITION. The department of revenue shall to every extent 12 29 feasible provide for a simple transition for a taxpayer to 12 30 claim an ethanol blended gasoline tax credit as provided in 12 31 section 422.11C or section 422.33, subsection 11C, for the 12 32 taxpayer's last tax year before the section is repealed on 12 33 January 1, 2009, and then to claim the ethanol promotion tax 12 34 credit as provided in section 422.11N or section 422.33, 12 35 subsection 11A, commencing on January 1, 2009, for the 13 1 taxpayer's succeeding tax year. 13 2 Sec. 32. RETROACTIVE APPLICABILITY DATE. Section 422.11P, 13 3 as amended in this Act, and section 422.33, subsection 11C, as 13 4 applied due to the enactment of this Act, shall apply 13 5 retroactively to the tax year beginning on or after January 1, 13 6 2008. 13 7 DIVISION III 13 8 RENEWABLE FUEL REPORTING REQUIREMENTS 13 9 Sec. 33. Section 452A.33, subsection 1, Code 2007, is 13 10 amended to read as follows: 13 11 1. a. Each retail dealer shall report its The department 13 12 shall monitor the total motor fuel gallonage for each retail 13 13 motor fuel site or other permanent or temporary location from 13 14 which the retail dealer sells and dispenses motor fuel during 13 15 a determination period as follows:. The department shall 13 16 monitor all of the following: 13 17 (1) Its The total gasoline gallonage and its total ethanol 13 18 gallonage, including for each classification and 13 19 subclassification as provided in section 452A.31. 13 20 (2) Its The total diesel fuel gallonage and its total 13 21 biodiesel gallonage, including for each classification and 13 22 subclassification as provided in section 452A.31. 13 23 b. The report shall include a breakdown of the information 13 24 required in paragraph "a" for each retail motor fuel site or 13 25 other permanent or temporary location from which the retail 13 26 dealer sells and dispenses motor fuel. 13 27 c. The retail dealer shall prepare and submit the report 13 28 in a manner and according to procedures required by the 13 29 department. The department may require that retail dealers 13 30 report to the department on an annual, quarterly, or monthly 13 31 basis. 13 32 d. b. The Any information included in a report submitted 13 33 by obtained from a wholesale dealer or a retail dealer by the 13 34 department is deemed to be a trade secret, protected as a 13 35 confidential record pursuant to section 22.7. 14 1 Sec. 34. Section 452A.33, subsection 2, unnumbered 14 2 paragraph 1, Code 2007, is amended to read as follows: 14 3 On or before February 1 the department shall deliver a 14 4 report to the governor and the legislative services agency. 14 5 The report shall compile any information reported by retail 14 6 dealers to the obtained by the department as provided in this 14 7 section and shall at least which may include all of the 14 8 following: 14 9 DIVISION IV 14 10 GOVERNMENT FLEET PURCHASES 14 11 OF RENEWABLE FUELS 14 12 Sec. 35. Section 8A.362, subsection 3, paragraph b, Code 14 13 Supplement 2007, is amended to read as follows: 14 14 b. A gasoline=powered motor vehicle operated under this 14 15 subsection shall not operate on gasoline other than ethanol 14 16 blended gasoline as defined in section 214A.1, unless under 14 17 emergency circumstances. A diesel=powered motor vehicle 14 18 operated under this subsection shall not operate on diesel 14 19 fuel other than biodiesel fuel as defined in section 214A.1, 14 20 if commercially available. A state=issued credit card used to 14 21 purchase gasoline shall not be valid to purchase gasoline 14 22 other than ethanol blended gasoline, if commercially 14 23 available, or to purchase diesel fuel other than biodiesel 14 24 fuel, if commercially available. The motor vehicle shall also 14 25 be affixed with a brightly visible sticker which notifies the 14 26 traveling public that the motor vehicle is being operated on 14 27 ethanol blended gasoline or biodiesel fuel, as applicable. 14 28 However, the sticker is not required to be affixed to an 14 29 unmarked vehicle used for purposes of providing law 14 30 enforcement or security. 14 31 Sec. 36. Section 216B.3, subsection 16, paragraph a, Code 14 32 Supplement 2007, is amended to read as follows: 14 33 a. A gasoline=powered motor vehicle purchased by the 14 34 commission shall not operate on gasoline other than ethanol 14 35 blended gasoline as defined in section 214A.1. A 15 1 diesel=powered motor vehicle purchased by the commission shall 15 2 not operate on diesel fuel other than biodiesel fuel as 15 3 defined in section 214A.1, if commercially available. A state 15 4 issued credit card used to purchase gasoline shall not be 15 5 valid to purchase gasoline other than ethanol blended gasoline 15 6 or to purchase diesel fuel other than biodiesel fuel, if 15 7 commercially available. The motor vehicle shall also be 15 8 affixed with a brightly visible sticker which notifies the 15 9 traveling public that the motor vehicle is being operated on 15 10 ethanol blended gasoline or biodiesel fuel, as applicable. 15 11 However, the sticker is not required to be affixed to an 15 12 unmarked vehicle used for purposes of providing law 15 13 enforcement or security. 15 14 Sec. 37. Section 260C.19A, subsection 1, Code Supplement 15 15 2007, is amended to read as follows: 15 16 1. A gasoline=powered motor vehicle purchased by or used 15 17 under the direction of the board of directors to provide 15 18 services to a merged area shall not operate on gasoline other 15 19 than ethanol blended gasoline as defined in section 214A.1. A 15 20 diesel=powered motor vehicle purchased by or used under the 15 21 direction of the board of directors to provide services to a 15 22 merged area shall not operate on diesel fuel other than 15 23 biodiesel fuel as defined in section 214A.1, if commercially 15 24 available. The motor vehicle shall also be affixed with a 15 25 brightly visible sticker which notifies the traveling public 15 26 that the motor vehicle is being operated on ethanol blended 15 27 gasoline or biodiesel fuel, as applicable. However, the 15 28 sticker is not required to be affixed to an unmarked vehicle 15 29 used for purposes of providing law enforcement or security. 15 30 Sec. 38. Section 262.25A, subsection 2, Code Supplement 15 31 2007, is amended to read as follows: 15 32 2. A gasoline=powered motor vehicle purchased by the 15 33 institutions shall not operate on gasoline other than ethanol 15 34 blended gasoline as defined in section 214A.1, unless under 15 35 emergency circumstances. A diesel=powered motor vehicle 16 1 purchased by the institutions shall not operate on diesel fuel 16 2 other than biodiesel fuel as defined in section 214A.1, if 16 3 commercially available. A state=issued credit card used to 16 4 purchase gasoline shall not be valid to purchase gasoline 16 5 other than ethanol blended gasoline if commercially available 16 6 or to purchase diesel fuel other than biodiesel fuel if 16 7 commercially available. The motor vehicle shall also be 16 8 affixed with a brightly visible sticker which notifies the 16 9 traveling public that the motor vehicle is being operated on 16 10 ethanol blended gasoline or biodiesel fuel, as applicable. 16 11 However, the sticker is not required to be affixed to an 16 12 unmarked vehicle used for purposes of providing law 16 13 enforcement or security. 16 14 Sec. 39. Section 279.34, Code Supplement 2007, is amended 16 15 to read as follows: 16 16 279.34 MOTOR VEHICLES REQUIRED TO OPERATE ON ETHANOL 16 17 BLENDED GASOLINE OR BIODIESEL FUEL. 16 18 A gasoline=powered motor vehicle purchased by or used under 16 19 the direction of the board of directors to provide services to 16 20 a school corporation shall not operate on gasoline other than 16 21 ethanol blended gasoline as defined in section 214A.1. A 16 22 diesel=powered motor vehicle purchased by or used under the 16 23 direction of the board of directors to provide services to a 16 24 school corporation shall not operate on diesel fuel other than 16 25 biodiesel fuel as defined in section 214A.1, if commercially 16 26 available. The motor vehicle shall also be affixed with a 16 27 brightly visible sticker which notifies the traveling public 16 28 that the motor vehicle is being operated on ethanol blended 16 29 gasoline for biodiesel fuel, as applicable. However, the 16 30 sticker is not required to be affixed to an unmarked vehicle 16 31 used for purposes of providing law enforcement or security. 16 32 Sec. 40. Section 307.21, subsection 4, paragraph d, Code 16 33 Supplement 2007, is amended to read as follows: 16 34 d. A motor gasoline=powered vehicle purchased by the 16 35 administrator shall not operate on gasoline other than ethanol 17 1 blended gasoline as defined in section 214A.1. A 17 2 diesel=powered motor vehicle purchased by the administrator 17 3 shall not operate on diesel fuel other than biodiesel fuel as 17 4 defined in section 214A.1, if commercially available. A 17 5 state=issued credit card used to purchase gasoline shall not 17 6 be valid to purchase gasoline other than ethanol blended 17 7 gasoline or to purchase diesel fuel other than biodiesel fuel, 17 8 if commercially available. The motor vehicle shall also be 17 9 affixed with a brightly visible sticker which notifies the 17 10 traveling public that the motor vehicle is being operated on 17 11 ethanol blended gasoline or biodiesel fuel, as applicable. 17 12 However, the sticker is not required to be affixed to an 17 13 unmarked vehicle used for purposes of providing law 17 14 enforcement or security. 17 15 Sec. 41. Section 331.908, Code 2007, is amended to read as 17 16 follows: 17 17 331.908 MOTOR VEHICLES REQUIRED TO OPERATE ON ETHANOL 17 18 BLENDED GASOLINE OR BIODIESEL FUEL. 17 19 A motor gasoline=powered vehicle purchased or used by a 17 20 county to provide county services shall not operate on 17 21 gasoline other than ethanol blended gasoline as defined in 17 22 section 214A.1. A diesel=powered motor vehicle purchased or 17 23 used by a county to provide county services shall not operate 17 24 on diesel fuel other than biodiesel fuel as defined in section 17 25 214A.1, if commercially available. The motor vehicle shall 17 26 also be affixed with a brightly visible sticker which notifies 17 27 the traveling public that the motor vehicle is being operated 17 28 on ethanol blended gasoline or biodiesel fuel, as applicable. 17 29 However, the sticker is not required to be affixed to an 17 30 unmarked vehicle used for purposes of providing law 17 31 enforcement or security. 17 32 Sec. 42. Section 364.20, Code 2007, is amended to read as 17 33 follows: 17 34 364.20 MOTOR VEHICLES REQUIRED TO OPERATE ON ETHANOL 17 35 BLENDED GASOLINE OR BIODIESEL FUEL. 18 1 A gasoline=powered motor vehicle purchased or used by a 18 2 city to provide city services shall not operate on gasoline 18 3 other than ethanol blended gasoline as defined in section 18 4 214A.1. A diesel=powered motor vehicle purchased or used by a 18 5 city to provide city services shall not operate on diesel fuel 18 6 other than biodiesel fuel as defined in section 214A.1, if 18 7 commercially available. The motor vehicle shall also be 18 8 affixed with a brightly visible sticker which notifies the 18 9 traveling public that the motor vehicle is being operated on 18 10 ethanol blended gasoline or biodiesel fuel, as applicable. 18 11 However, the sticker is not required to be affixed to an 18 12 unmarked vehicle used for purposes of providing law 18 13 enforcement or security. 18 14 Sec. 43. Section 904.312A, subsection 1, Code Supplement 18 15 2007, is amended to read as follows: 18 16 1. A gasoline=powered motor vehicle purchased by the 18 17 department shall not operate on gasoline other than ethanol 18 18 blended gasoline as defined in section 214A.1. A 18 19 diesel=powered motor vehicle purchased by the department shall 18 20 not operate on diesel fuel other than biodiesel fuel as 18 21 defined in section 214A.1, if commercially available. A 18 22 state=issued credit card used to purchase gasoline shall not 18 23 be valid to purchase gasoline other than ethanol blended 18 24 gasoline, or to purchase diesel fuel other than biodiesel 18 25 fuel, if commercially available. The motor vehicle shall also 18 26 be affixed with a brightly visible sticker which notifies the 18 27 traveling public that the motor vehicle is being operated on 18 28 ethanol blended gasoline or biodiesel fuel, as applicable. 18 29 However, the sticker is not required to be affixed to an 18 30 unmarked vehicle used for purposes of providing law 18 31 enforcement or security. 18 32 DIVISION V 18 33 RENEWABLE FUEL MARKETING EFFORTS 18 34 Sec. 44. RENEWABLE FUEL MARKETING PLAN. The office of 18 35 energy independence shall develop a renewable fuel marketing 19 1 plan to promote the biofuel industry in this state. 19 2 1. The renewable fuel marketing plan shall provide for 19 3 research to determine what barriers hinder increased biofuel 19 4 use in this state. The research shall include but is not 19 5 limited to determining all of the following: 19 6 a. Barriers that may prevent retail dealers from selling 19 7 more biofuels, which shall at least include issues involving 19 8 infrastructure, product quality, and cost efficiencies. 19 9 b. Barriers that may prevent consumers from purchasing 19 10 more biofuels, which shall at least include issues involving 19 11 fuel efficiency and consumer awareness of biofuels and 19 12 flexible fuel vehicles. 19 13 2. The office shall prepare and submit the renewable fuel 19 14 marketing plan to the governor and the general assembly by 19 15 January 30, 2009. 19 16 Sec. 45. DIRECT MARKETING CAMPAIGN == FLEXIBLE FUEL 19 17 VEHICLES. The office of energy independence shall conduct a 19 18 direct marketing campaign specifically targeted to owners of 19 19 flexible fuel vehicles. 19 20 1. The direct marketing campaign shall include but is not 19 21 limited to education to increase owner awareness and knowledge 19 22 regarding flexible fuel vehicles and E=85 as an alternative 19 23 fuel choice. The office shall provide owners with maps 19 24 indicating where E=85 dispensers are located. 19 25 2. The department of transportation shall provide the 19 26 office with a list of the names and addresses of owners of 19 27 flexible fuel vehicles, including vehicles registered under 19 28 sections 321.109, 321.121, and 321.122. 19 29 3. The office shall complete the direct marketing campaign 19 30 by October 1, 2008. 19 31 Sec. 46. COLLABORATION. The office of energy independence 19 32 may collaborate with public or private organizations to carry 19 33 out the provisions of this division of this Act. 19 34 Sec. 47. FUNDING. The office of energy independence shall 19 35 carry out the provisions of this division of this Act using 20 1 moneys appropriated to the office as provided in section 20 2 469.10. 20 3 DIVISION VI 20 4 EFFECTIVE DATE 20 5 Sec. 48. EFFECTIVE DATE. This Act, being deemed of 20 6 immediate importance, takes effect upon enactment. 20 7 EXPLANATION 20 8 BACKGROUND. This bill amends Code provisions relating to 20 9 renewable fuel and specifically biofuels used in motor fuels, 20 10 including ethanol (ethyl alcohol) and biodiesel (derived from 20 11 vegetable oils or animal fats). Ethanol is blended into 20 12 gasoline and biodiesel used without blending or blending into 20 13 diesel fuel. The bill refers to biodiesel and biodiesel 20 14 blended fuel and "biodiesel fuel". The bill also refers to 20 15 the percentage of biofuel contained in a gallon of motor fuel 20 16 as E=xx where "xx" equals the percentage of ethanol by volume 20 17 and B=xx equals the percentage of biodiesel by volume. 20 18 Generally, motor fuel pumps and motor fuel are regulated by 20 19 the department of agriculture and land stewardship. 20 20 DIVISION I == RENEWABLE FUEL INFRASTRUCTURE. The bill 20 21 amends provisions relating to infrastructure associated with 20 22 the storage, blending, and dispensing of renewable fuel and 20 23 specifically programs administered by the renewable fuel 20 24 infrastructure board (see Code section 15G.202) established 20 25 within the department of economic development and supported by 20 26 moneys appropriated from the grow Iowa values fund (see Code 20 27 section 15G.111(7)). The programs include the renewable fuel 20 28 infrastructure programs for retail motor fuel sites (see Code 20 29 section 15G.203) and biodiesel terminal facilities (see Code 20 30 section 15G.204) which provide grants on a cost=share basis to 20 31 participating persons. 20 32 TANK VEHICLES. The bill provides that a tank vehicle 20 33 operated by a retail dealer qualifies as renewable fuel 20 34 infrastructure. 20 35 LIMITATIONS ON RETAIL DEALERS. The bill provides that in 21 1 order to participate in the program, a retail dealer must have 21 2 been licensed by the department of revenue as a dealer for two 21 3 years prior to the bill's effective date. 21 4 BLENDER PUMPS. The bill provides for a new type of motor 21 5 fuel pump referred to as a motor fuel blender pump (blender 21 6 pump) which dispenses a blend of two or more types of motor 21 7 fuel and may allow a retail customer to select the percent of 21 8 biofuel, either ethanol or biodiesel. The bill expands the 21 9 renewable fuel infrastructure program to provide financing to 21 10 support the installation, replacement, or conversion of 21 11 infrastructure associated with using a blender pump to 21 12 dispense ethanol blended gasoline or biodiesel fuel. 21 13 COST=SHARE AGREEMENTS. The bill provides that the board 21 14 may waive a requirement that a participating person keep 21 15 biodiesel fuel during any three=month period during the 21 16 winter, if the cost=share agreement is extended to cover those 21 17 waived months. 21 18 The bill provides that a cost=share agreement executed by 21 19 the infrastructure board and a participating person receiving 21 20 financial incentives to improve a retail motor fuel site 21 21 cannot exceed three years. 21 22 Under the bill, a participating person may execute two 21 23 cost=share agreements: (1) to receive up to the full amount 21 24 available to improve their retail motor fuel site with ethanol 21 25 infrastructure, and (2) to receive up to the full amount 21 26 available to improve the same retail motor fuel site with 21 27 biodiesel infrastructure. 21 28 For ethanol infrastructure used to improve a motor fuel 21 29 site, the amount of the financing is increased from $30,000 to 21 30 $50,000, so long as the financing does not exceed 50 percent 21 31 of the cost of making the improvement. For biodiesel 21 32 infrastructure used to improve a motor fuel site, the amount 21 33 of financing shall not exceed 50 percent of the cost of making 21 34 the improvement or $50,000, whichever is less. It also 21 35 provides that a person who has made such improvement under an 22 1 old cost=share agreement may be reimbursed for the extra 22 2 amount up to the new limits provided in the bill. 22 3 The bill amends provisions relating to the renewable fuel 22 4 infrastructure program for biodiesel terminals, by increasing 22 5 the amount that a participating person is eligible to receive 22 6 from $50,000 to $100,000 for installing improvements to store 22 7 and dispense B=99 to B=100. The bill retains the alternative 22 8 cap of 50 percent of making an improvement for installing 22 9 improvements to store and dispense less than B=99. It also 22 10 provides that a person who has made such improvements under an 22 11 old cost=share agreement may be reimbursed for the extra 22 12 amount up to the new limits provided in the bill. 22 13 MOTOR FUEL STANDARDS. The bill provides a definition of 22 14 unleaded gasoline including by providing that it contains an 22 15 octane number of at least 87, and limits the amount of lead or 22 16 phosphorus. It provides standards for unleaded gasoline 22 17 blended with ethanol based on A.S.T.M. specifications. It 22 18 reduces the minimum percentage of ethanol contained in ethanol 22 19 blended gasoline from 10 to 9 percent by volume. It requires 22 20 that a retail dealer advertising motor fuel containing between 22 21 70 and 85 percent ethanol must be advertised as "E=85". 22 22 AUTHORIZATION TO USE BLENDER PUMPS. The bill amends Code 22 23 section 455G.31 which allows the state fire marshal to approve 22 24 the installation of infrastructure associated with storing and 22 25 dispensing E=85. The bill provides that such infrastructure 22 26 includes blender pumps. 22 27 FUTURE SOURCES OF REVENUE. The bill includes a provision 22 28 expressing the intent of the general assembly to examine all 22 29 options to continue the financing of renewable fuel 22 30 infrastructure. 22 31 DIVISION II == ETHANOL PROMOTION TAX CREDIT. The bill 22 32 amends Code section 422.11N, which allows a retail dealer to 22 33 claim an ethanol promotion tax credit based on a formula which 22 34 calculates a retail dealer's biofuel distribution percentage 22 35 (the sum of the retail dealer's total ethanol gallonage plus 23 1 the retail dealer's total biodiesel gallonage expressed as a 23 2 percentage of the retail dealer's total gasoline gallonage). 23 3 The Code section allows the governor to reduce the applicable 23 4 biofuel threshold percentage by replacing it with an adjusted 23 5 biofuel threshold percentage if exigent circumstances exist 23 6 (e.g., a lack of available feedstock). The bill provides a 23 7 new exigent circumstance based on market conditions that 23 8 prevent ethanol blended gasoline from being competitive with 23 9 unblended gasoline or biodiesel fuel from being competitive 23 10 with nonbiodiesel fuel. 23 11 BIODIESEL TAX CREDIT. The bill amends provisions relating 23 12 to the biodiesel blended fuel tax credit available to a retail 23 13 dealer of biodiesel blended fuel during each tax year until 23 14 the tax credit expires on January 1, 2012. The bill provides 23 15 that the tax credit must be calculated separately for each 23 16 retail motor fuel site operated by the taxpayer. The bill 23 17 eliminates a requirement that a retail dealer must sell 50 23 18 percent or more biodiesel blended fuel in order to qualify for 23 19 the tax credit. The bill replaces the rate of 3 cents for 23 20 each gallon of B=2 or higher sold, with a schedule which 23 21 increases the rate depending upon the class of biodiesel 23 22 blended fuel sold (from 3 cents for B=2 to 30 cents for B=20 23 23 or higher). The bill applies retroactively to the tax year 23 24 beginning on or after January 1, 2008. 23 25 DIVISION III == RENEWABLE FUEL REPORTING REQUIREMENTS. The 23 26 bill amends provisions that require a retail dealer to submit 23 27 periodic reports to the department of revenue tracking motor 23 28 fuel and biofuel sold at each retail motor fuel site. The 23 29 bill provides that the department of revenue is responsible 23 30 for tracking motor fuel and biofuel use. 23 31 DIVISION IV == GOVERNMENT FLEET PURCHASES OF BIODIESEL 23 32 FUEL. The bill amends a number of provisions that currently 23 33 require state and local government gasoline=powered vehicles 23 34 to operate using ethanol blended gasoline, and prohibits the 23 35 use of a state=issued credit card to purchase gasoline other 24 1 than ethanol blended gasoline by state agencies. The bill 24 2 provides that state and local diesel=powered vehicles must use 24 3 biodiesel fuel whenever commercially available and prohibits 24 4 the use of a state=issued credit card to purchase diesel fuel 24 5 other than biodiesel fuel by state agencies. State and local 24 6 governments affected include the department of administrative 24 7 services (Code chapter 8A), the department for the blind (Code 24 8 chapter 216B), community colleges (Code chapter 260C), the 24 9 board of regents (Code chapter 262), school districts (Code 24 10 chapter 279), the state department of transportation (Code 24 11 chapter 307), counties (Code chapter 331), cities (Code 24 12 chapter 364), and the department of corrections (Code chapter 24 13 904). The bill may create a state mandate as provided in Code 24 14 chapter 25B. 24 15 DIVISION V == RENEWABLE FUEL MARKETING EFFORTS. The bill 24 16 requires the office of energy independence to develop a 24 17 renewable fuel marketing plan to provide research to determine 24 18 what barriers hinder increased biofuel use in this state. The 24 19 bill also requires the office to conduct a direct marketing 24 20 campaign specifically targeted to owners of flexible fuel 24 21 vehicles. The department of transportation must assist the 24 22 office in carrying out the campaign. 24 23 DIVISION VI == EFFECTIVE DATE. The bill takes effect upon 24 24 enactment. 24 25 LSB 6451HV 82 24 26 da/nh/5.1
Text: HF2631            Text: HF2633 Complete Bill History