HSB 689 (LSB 6326YC (4) 88)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON AGRICULTURE BILL BY CHAIRPERSON PAUSTIAN)

A BILL FOR

An Act relating to the renewable fuel infrastructure program for retail motor fuel sites, by providing for the award of standard financial incentives to participating persons.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 159A.11, Code 2020, is amended by adding the following new subsection:
   NEW SUBSECTION.  2A.  “E-15 plus gasoline” means ethanol blended gasoline classified as E-15 or higher, other than E-85 gasoline, if the formulation of the gasoline meets the standards set forth in section 214A.2.
    Sec. 2.  Section 159A.14, subsection 1, paragraph a, subparagraph (1), subparagraph division (a), Code 2020, is amended to read as follows:
   (a)  Store and dispense E-15 plus gasoline. At least for the period beginning on September 16 and ending on May 31 of each year, the ethanol infrastructure must be used to store and dispense E-15 gasoline as a registered fuel recognized by the United States environmental protection agency.
    Sec. 3.  Section 159A.14, subsection 5, paragraph a, subparagraph (1), subparagraph division (b), Code 2020, is amended to read as follows:
   (b)  For a five-year cost-share agreement, seventy percent of the actual cost of making the improvement or fifty one hundred thousand dollars, whichever is less.
    Sec. 4.  Section 159A.14, subsection 5, paragraph a, Code 2020, is amended by adding the following new subparagraph:
   NEW SUBPARAGRAPH.  (3)  The infrastructure board shall not award a total of more than five hundred thousand dollars in standard financial incentives to a participating person as provided in subparagraphs (1) and (2) during any twelve-month period.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   GENERAL. This bill amends the renewable fuel infrastructure program for retail motor fuel sites (program), which supports the improvement of retail motor fuel sites by installing, replacing, or converting motor fuel storage and dispensing (e.g., underground storage tanks and motor fuel pumps infrastructure) associated with E-15 gasoline, E-85 gasoline, or biodiesel.
   AWARDS. The bill provides that the infrastructure may be used to support ethanol blended gasoline classified as E-15 or higher (E-15 plus gasoline) but not classified as E-85 gasoline (between 70 and 85 percent ethanol). The bill removes a restriction on when E-15 gasoline may be stored in a motor fuel storage tank, increases the amount of moneys that may be awarded as standard financial incentives (grants) to a participating person (retail dealer) to support an improvement, and places a cap on the amount of moneys that may be awarded to the participating person during any 12-month period.
   BACKGROUND. The program is administered by the department of agriculture and land stewardship which executes cost-share agreements with participating persons subject to approval by the renewable fuel infrastructure board (Code sections 159A.13 and 159A.14). The program includes standard financial incentives awarded to improve one or more motor fuel sites subject to certain award caps. The award may be for either three years with an award cap of $30,000 or five years with an award cap of $50,000. The program also provides for supplemental financial incentives for improvements relating to E-85 infrastructure or improvements to additional motor fuel sites owned or operated by a participating person. The program is supported by moneys credited to the renewable fuel infrastructure fund (Code section 159A.16). In 2019, moneys in the fund were appropriated from the rebuild Iowa infrastructure fund (2019 Iowa Acts, chapter 137, section 1).