House File 376 - Introduced HOUSE FILE 376 BY S. OLSON A BILL FOR An Act providing for the blending of gasoline or diesel fuel by 1 dealers or distributors, and including penalties. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2132YH (3) 85 da/nh

H.F. 376 Section 1. Section 452A.2, Code 2013, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 9A. “Diesel fuel” or “diesel” means diesel 3 fuel as defined in section 214A.1. 4 Sec. 2. NEW SECTION . 452A.6A Right of distributors and 5 dealers to blend gasoline or diesel fuel using a biofuel. 6 1. a. A dealer or distributor may blend gasoline or diesel 7 fuel using the appropriate biofuel on any premises in this 8 state notwithstanding any contrary agreement pursuant to which 9 a terminal operator, terminal owner, or supplier is a party and 10 the distributor or dealer is the other party. 11 b. Paragraph “a” does not apply to the extent that the use 12 of the premises is restricted by federal, state, or local law, 13 or otherwise by a person holding a legal or equitable interest 14 in the premises. 15 2. A terminal operator, terminal owner, or supplier who in 16 the ordinary course of business sells or transports gasoline 17 or diesel fuel which is unblended or blended with a biofuel 18 shall not refuse to sell or transport unblended gasoline or 19 unblended diesel fuel to a distributor or dealer based on the 20 distributor’s or dealer’s intent to blend the gasoline or 21 diesel fuel with a biofuel. 22 3. A terminal operator, terminal owner, or supplier shall 23 not prevent or inhibit a distributor or dealer from being a 24 blender or from qualifying for any federal or state tax credit 25 offered to blenders. 26 4. This section shall not be construed to do any of the 27 following: 28 a. Prohibit a distributor or dealer from purchasing, 29 selling, or transporting gasoline or diesel fuel that has not 30 been blended with a biofuel. 31 b. Affect the blender’s license requirements under section 32 452A.6. 33 5. A terminal operator, terminal owner, or supplier who 34 violates this section is subject to a civil penalty of not 35 -1- LSB 2132YH (3) 85 da/nh 1/ 2

H.F. 376 more than ten thousand dollars per violation. Each day that a 1 violation continues is deemed a separate offense. 2 EXPLANATION 3 Motor fuel (e.g., gasoline) and special fuel (e.g., diesel 4 fuel) move into this state via a pipeline or marine vessel to a 5 terminal where in turn the fuel is withdrawn by a supplier and 6 then purchased and transported by a distributor and ultimately 7 a dealer who sells the fuel at retail. During this process, 8 gasoline may be blended with alcohol (ethanol) and diesel fuel 9 may be blended with soybean oil (biodiesel) at a nonterminal 10 location by a person referred to as a blender. Both ethanol 11 and biodiesel are referred to as biofuel (Code sections 214A.1 12 and 452A.2). 13 This bill provides that a terminal operator or owner or 14 a supplier cannot restrict the sale and movement of gasoline 15 or diesel fuel only because the fuel is unblended or inhibit 16 a distributor or dealer from being a blender or qualifying 17 for any federal or state tax credit offered to blenders. A 18 terminal operator or owner or a supplier who violates the bill 19 is subject to a civil penalty of not more than $10,000 per 20 violation. 21 -2- LSB 2132YH (3) 85 da/nh 2/ 2