Text: SF02447 Text: SF02449 Text: SF02400 - SF02499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. HEAVEN INITIATIVE. This Act shall be known and 1 2 may be cited as the "Health Enhancement and Value-Added ENergy 1 3 Initiative." 1 4 1. The general assembly finds and declares all of the 1 5 following: 1 6 a. The waters of this state must be protected from methyl 1 7 tertiary butyl ether (MTBE), a gasoline additive which is a 1 8 possible carcinogen possessed of unique chemical properties 1 9 making it highly soluble and allowing it to migrate through 1 10 drinking water supplies. 1 11 b. The state must capture the greatest economic benefit 1 12 from opportunities created by industries manufacturing high 1 13 value-added products derived from abundant resources of this 1 14 state, which may be used to transform alternative motor 1 15 vehicle fuels into conventional motor vehicle fuels. 1 16 2. The purpose of this Act is to protect the public 1 17 health, protect the waters of this state, and strengthen the 1 18 state's economy by encouraging the manufacture of compatible 1 19 value-added products. 1 20 Sec. 2. Section 15.333, subsection 1, Code Supplement 1 21 1999, is amended to read as follows: 1 22 1. An eligible business may claim a corporate tax credit 1 23 up to a maximum of ten percent of the new investment which is 1 24 directly related to new jobs created by the location or 1 25 expansion of an eligible business under the program. Any 1 26 credit in excess of the tax liability for the tax year may be 1 27 credited to the tax liability for the following seven years or 1 28 until depleted, whichever occurs earlier. Subject to prior 1 29 approval by the department of economic development in 1 30 consultation with the department of revenue and finance, an 1 31 eligible business whose project primarily involves the 1 32 production of value-added agricultural products may elect to 1 33 transfer all or a portion of an unused tax credit to any other 1 34 person. A tax credit shall only be transferred once and the 1 35 transferee shall not make a subsequent transfer of the tax 2 1 credit. The transferee may use the amount of the tax credit 2 2 transferred against a tax liability imposed under chapter 422, 2 3 division II, III, or V for any tax year the original 2 4 transferor could have claimed the credit. If the business is 2 5 a partnership, subchapter S corporation, limited liability 2 6 company, or estate or trust electing to have the income taxed 2 7 directly to the individual, an individual may claim the tax 2 8 credit allowed. The amount claimed by the individual shall be 2 9 based upon the pro rata share of the individual's earnings of 2 10 the partnership, subchapter S corporation, limited liability 2 11 company, or estate or trust. For purposes of this section, 2 12 "new investment directly related to new jobs created by the 2 13 location or expansion of an eligible business under the 2 14 program" means the cost of machinery and equipment, as defined 2 15 in section 427A.1, subsection 1, paragraphs "e" and "j", 2 16 purchased for use in the operation of the eligible business, 2 17 the purchase price of which has been depreciated in accordance 2 18 with generally accepted accounting principles, and the cost of 2 19 improvements made to real property which is used in the 2 20 operation of the eligible business and which receives a 2 21 partial property tax exemption for the actual value added 2 22 under section 15.332. 2 23 1A. Any consideration received for a transfer of a tax 2 24 credit pursuant to subsection 1 shall not be included as 2 25 income under chapter 422, division II, III, or V. Any 2 26 consideration paid for a transfer of a tax credit pursuant to 2 27 subsection 1 shall not be deducted from income under chapter 2 28 422, division II, III, or V. The amount of the new investment 2 29 directly related to new jobs created by the location or 2 30 expansion of an eligible business under the program which 2 31 equals the tax credit claimed shall not be deducted by the 2 32 transferor from income under chapter 422, division II, III, or 2 33 V. 2 34 1B. An eligible business whose project primarily involves 2 35 the production of value-added agricultural products shall 3 1 apply to the department of economic development for tax credit 3 2 certificates. An eligible business whose project primarily 3 3 involves the production of value-added agricultural products 3 4 shall not claim a tax credit under this section unless a tax 3 5 credit certificate issued by the department of economic 3 6 development is attached to the taxpayer's tax return for the 3 7 tax year during which the tax credit is claimed. A tax credit 3 8 certificate shall not be redeemed until the tax year following 3 9 the date of the project completion. However, in no case shall 3 10 a tax credit certificate be redeemed earlier than July 1, 3 11 2002. A tax credit certificate shall contain the taxpayer's 3 12 name, address, tax identification number, the date of project 3 13 completion, the amount of the tax credit, other information 3 14 required by the department of revenue and finance, and a place 3 15 for the name and tax identification number of a transferee and 3 16 the amount of the tax credit being transferred. The 3 17 department of economic development shall not issue tax credit 3 18 certificates which total more than four million dollars during 3 19 a fiscal year. If the department receives applications for 3 20 tax credit certificates in excess of four million dollars, the 3 21 applicants shall receive certificates for a prorated amount. 3 22 Sec. 3. Section 214A.1, Code 1999, is amended by adding 3 23 the following new subsections: 3 24 NEW SUBSECTION. 00. "Advertise" means the same as defined 3 25 in section 190C.1. 3 26 NEW SUBSECTION. 1A. "Conventional gasoline" means 3 27 gasoline other than renewable reformulated gasoline. 3 28 NEW SUBSECTION. 2A. "Motor vehicle fuel pump" or "pump" 3 29 means the same as defined in section 214.1. 3 30 NEW SUBSECTION. 2B. "Motor vehicle fuel storage tank" or 3 31 "tank" means an aboveground or belowground container that is a 3 32 fixture, used to keep an accumulation of motor vehicle fuel. 3 33 NEW SUBSECTION. 2C. "Motor vehicle fuel storage tank 3 34 equipment" means a motor vehicle fuel storage tank, motor 3 35 vehicle fuel storage tank piping, or a motor vehicle fuel 4 1 pump. 4 2 NEW SUBSECTION. 2D. "Motor vehicle fuel storage tank 4 3 piping" means any rigid or flexible piping used to transport 4 4 motor vehicle fuel from a motor vehicle fuel storage tank to a 4 5 motor vehicle fuel pump. 4 6 NEW SUBSECTION. 2E. "MTBE" means methyl tertiary butyl 4 7 ether. 4 8 NEW SUBSECTION. 3A. "Renewable fuel" means an energy 4 9 source which is derived from an agricultural commodity capable 4 10 of powering machinery, including an engine or power plant. 4 11 NEW SUBSECTION. 3B. "Renewable reformulated gasoline" 4 12 means gasoline that contains an oxygenate octane enhancer 4 13 which is a renewable fuel. 4 14 NEW SUBSECTION. 4A. "Sell" means to sell or to offer for 4 15 sale. 4 16 NEW SUBSECTION. 4B. "Site" means the premises of a retail 4 17 dealer where a tank is used to serve a connecting motor 4 18 vehicle fuel pump. 4 19 Sec. 4. Section 214A.2, subsection 1, Code Supplement 4 20 1999, is amended by adding the following new unnumbered 4 21 paragraph: 4 22 NEW UNNUMBERED PARAGRAPH. The department shall not use 4 23 Reid vapor pressure tests more frequently to test renewable 4 24 reformulated gasoline than customarily required to test 4 25 conventional gasoline. 4 26 Sec. 5. Section 214A.2, subsection 3, Code Supplement 4 27 1999, is amended by striking the subsection and inserting in 4 28 lieu thereof the following: 4 29 3. A person shall not sell gasoline containing ethanol in 4 30 this state by advertising that the gasoline is a renewable 4 31 reformulated gasoline, unless the gasoline contains at least 4 32 ten percent ethanol by volume. 4 33 Sec. 6. Section 214A.2, subsection 4, Code Supplement 4 34 1999, is amended to read as follows: 4 35 4.GasolineMotor vehicle fuel shall not containmethanol5 1without an equal amount of cosolvent, and shall not contain5 2more than five percent methanolmore than trace amounts of 5 3 MTBE, as provided in section 214A.18. 5 4 Sec. 7. Section 214A.11, Code 1999, is amended to read as 5 5 follows: 5 6 214A.11 VIOLATIONS. 5 7 1.AnyA personviolating thewho violates provisions of 5 8 this chaptershall beother than section 214A.16A is guilty of 5 9 a simple misdemeanor. 5 10 2. A retail dealer who violates section 214A.16A is 5 11 subject to a civil penalty of not more than one hundred 5 12 dollars. Each day that a violation continues constitutes a 5 13 separate offense. 5 14 a. The department shall issue an order assessing a civil 5 15 penalty against a retail dealer acting in violation of section 5 16 214A.16A. The order shall include the amount of the civil 5 17 penalty. The civil penalty shall be paid in accordance with 5 18 rules adopted by the department pursuant to chapter 17A and as 5 19 provided in the order, unless the person institutes a 5 20 contested case proceeding as provided in chapter 17A. 5 21 b. A retail dealer who fails to timely pay a civil penalty 5 22 assessed by a final order of the department shall pay, in 5 23 addition to the amount of the civil penalty, interest at the 5 24 rate of one and one-half percent of the unpaid balance of the 5 25 assessed civil penalty for each month or part of a month that 5 26 the penalty remains unpaid. 5 27 c. When a retail dealer against whom a civil penalty is 5 28 assessed under this section seeks timely judicial review, as 5 29 provided under chapter 17A, of an order imposing the civil 5 30 penalty, the order is not final for the purposes of this 5 31 section until all judicial review processes are completed. 5 32 d. The attorney general shall institute, at the request of 5 33 the department, legal proceedings in the county in which the 5 34 violation occurred in order to recover the civil penalty and 5 35 any accrued interest. 6 1 e. The civil penalty assessed by the department and 6 2 interest on the civil penalty shall be deposited in the 6 3 general fund of the state. 6 4 Sec. 8. Section 214A.16, Code 1999, is amended to read as 6 5 follows: 6 6 214A.16 NOTICE OF BLENDED FUEL – DECAL. 6 7AllIf motor vehicle fuelkept, offered, or exposed for6 8sale, or sold at retail containing over one percent ethanol,6 9methanol, or any combination of oxygenate octane enhancers6 10shall be identified as "with" either "ethanol", "methanol",6 11"ethanol/methanol", or similar wording oncontaining a 6 12 renewable fuel is sold from a motor vehicle fuel pump, the 6 13 pump shall have affixed a decal identifying the name of the 6 14 renewable fuel.All diesel fuel kept, offered, or exposed for6 15sale, or sold at retail containing over one percent soybean6 16oil by volume shall be identified as "with soydiesel" or6 17similar wording on a decal.The decal may be different based 6 18 on the type of renewable fuel used. The design and location 6 19 of thedecalsdecal shall be prescribed by rules adopted by 6 20 the department.The department shall adopt the rules to be6 21effective by January 1, 1995.A decal identifying a renewable 6 22 fuel shall be consistent with standards adopted pursuant to 6 23 section 159A.6.Until the department establishes standards6 24for decals, the wording shall be on a white adhesive decal6 25with black letters at least one-half inch high and at least6 26one-quarter inch wide placed between thirty and forty inches6 27above the driveway level on the front sides of any container6 28or pump from which the motor fuel is sold.The department may 6 29 approve an application to place a decal in a special location 6 30 on a pump or container or use a decal with special lettering 6 31 or colors, if the decal appears clear and conspicuous to the 6 32 consumer. The application shall be made in writing pursuant 6 33 to procedures adopted by the department.Designs for a decal6 34identifying a renewable fuel shall be consistent with6 35standards adopted pursuant to section 159A.6.7 1 Sec. 9. NEW SECTION. 214A.16A RENEWABLE REFORMULATED 7 2 GASOLINE – AVAILABILITY REQUIRED. 7 3 1. Except as provided in this section, a retail dealer 7 4 shall not sell conventional gasoline at a site, unless the 7 5 retail dealer also sells renewable reformulated gasoline at 7 6 that site. A retail dealer required to sell renewable 7 7 reformulated gasoline must operate at least one motor vehicle 7 8 fuel pump that dispenses renewable reformulated gasoline at 7 9 the same site where the retail dealer operates a motor vehicle 7 10 fuel pump that dispenses conventional gasoline. 7 11 2. a. This section does not apply to the extent that a 7 12 retail dealer cannot sell renewable reformulated gasoline at a 7 13 site because the motor vehicle fuel storage tank equipment 7 14 located on the site is not compatible with storing and 7 15 dispensing renewable reformulated gasoline. 7 16 b. This section does not require a retail dealer to sell 7 17 renewable reformulated gasoline at a site if the site has only 7 18 one single undivided motor vehicle fuel storage tank. 7 19 c. This section does not require a retail dealer to cease 7 20 selling conventional gasoline during any period when the 7 21 retail dealer cannot sell renewable reformulated gasoline due 7 22 to any of the following: 7 23 (1) A wholesale dealer fails to supply the retail dealer 7 24 with renewable reformulated gasoline on a timely basis. This 7 25 subparagraph does not apply if the retail dealer and the 7 26 wholesale dealer are the same person. 7 27 (2) A temporary depletion of the retail dealer's renewable 7 28 reformulated gasoline inventory. This subparagraph does not 7 29 apply if the retail dealer stores conventional gasoline in the 7 30 depleted tank. 7 31 (3) A communication, including the issuance of an order or 7 32 letter, by a federal or state agency, including the United 7 33 States environmental protection agency, the department of 7 34 natural resources, or the department of agriculture and land 7 35 stewardship, requiring or requesting that the retail dealer 8 1 cease using a motor vehicle fuel storage tank storing 8 2 renewable reformulated gasoline or related motor vehicle fuel 8 3 storage tank equipment. This subparagraph does not apply once 8 4 the terms of the communication have expired. 8 5 (4) A motor vehicle fuel storage tank used to store 8 6 renewable reformulated gasoline or related motor vehicle fuel 8 7 storage tank equipment cannot function because of repair, 8 8 replacement, or maintenance. This subparagraph does not apply 8 9 after the tank or related equipment has been repaired, 8 10 replaced, or maintained or should have been repaired, 8 11 replaced, or maintained within a period customary for that 8 12 type of repair, replacement, or maintenance. 8 13 3. The department shall adopt pursuant to chapter 17A all 8 14 rules necessary in order to administer this section. 8 15 Sec. 10. NEW SECTION. 214A.18 MTBE PROHIBITION. 8 16 1. A person shall not do any of the following: 8 17 a. Sell motor vehicle fuel containing more than trace 8 18 amounts of MTBE in this state. 8 19 b. Store motor vehicle fuel containing more than trace 8 20 amounts of MTBE in a motor vehicle fuel storage tank located 8 21 in this state. 8 22 2. As used in this section, "trace amounts" means not more 8 23 than one-half of one percent by volume. 8 24 Sec. 11. Section 214A.19, subsection 1, unnumbered 8 25 paragraph 1, Code 1999, is amended to read as follows: 8 26 The department of natural resources, conditioned upon the 8 27 availability of funds, is authorized to award demonstration 8 28 grants to persons who purchase vehicles which operate on 8 29 alternative fuels, including but not limited to,high blend8 30ethanolrenewable reformulated gasoline which contains more 8 31 than thirteen percent ethanol, compressed natural gas, 8 32 electricity, solar energy, or hydrogen. A grant shall be for 8 33 the purpose of conducting research connected with the fuel or 8 34 the vehicle, and not for the purchase of the vehicle itself, 8 35 except that the money may be used for the purchase of the 9 1 vehicle if all of the following conditions are satisfied: 9 2 Sec. 12. Section 455G.9, subsection 1, Code Supplement 9 3 1999, is amended by adding the following new paragraph: 9 4 NEW PARAGRAPH. k. Up to one hundred percent of the costs 9 5 necessary to reimburse the owner or operator for costs 9 6 associated with converting a motor vehicle fuel storage tank 9 7 or storage tank piping used to store and dispense renewable 9 8 reformulated gasoline from a storage tank to a motor vehicle 9 9 fuel pump as required pursuant to chapter 214A, pursuant to 9 10 section 455G.23. However, the owner or operator shall not be 9 11 reimbursed more than ten thousand dollars for converting a 9 12 motor vehicle fuel storage tank or more than three thousand 9 13 dollars for converting storage tank piping. 9 14 Sec. 13. NEW SECTION. 455G.23 CONVERSION NECESSARY TO 9 15 STORE AND DISPENSE RENEWABLE REFORMULATED GASOLINE. 9 16 1. As used in this section: 9 17 a. "Conventional gasoline" means conventional blended 9 18 gasoline as defined in section 214A.1. 9 19 b. "Motor vehicle fuel storage tank" or "tank" means the 9 20 same as defined in section 214A.1. 9 21 c. "Motor vehicle fuel storage tank equipment" means the 9 22 same as defined in section 214A.1. 9 23 d. "Motor vehicle fuel storage tank piping" means the same 9 24 as defined in section 214A.1. 9 25 e. "Renewable reformulated gasoline" means the same as 9 26 defined in section 214A.1. 9 27 f. "Site" means the same as defined in section 214A.1. 9 28 2. The board shall establish a program to reimburse the 9 29 owner or operator of a site for costs necessary to convert 9 30 motor vehicle fuel storage tank equipment for use in storing 9 31 or dispensing renewable reformulated gasoline as provided 9 32 pursuant to chapter 214A. The conversion may be in the form 9 33 of the replacement of or modifications in the motor vehicle 9 34 fuel storage tank equipment. 9 35 3. In order to be eligible for reimbursement, all of the 10 1 following must apply: 10 2 a. The motor vehicle fuel storage tank equipment is 10 3 located at a site. 10 4 b. The site must comply with federal and state standards 10 5 governing new or upgraded motor vehicle fuel storage tank 10 6 equipment. 10 7 4. The owner or operator shall apply to the board in a 10 8 manner and according to procedures required by the board. The 10 9 application shall contain all information required by the 10 10 board and shall at least include all of the following: 10 11 a. The name of the owner or operator and the address of 10 12 the site. 10 13 b. A detailed description of the motor vehicle fuel 10 14 storage tank equipment, including all of the following: 10 15 (1) The location of the motor vehicle fuel storage tank 10 16 equipment on the site. 10 17 (2) The date that the motor vehicle fuel storage tank 10 18 equipment was installed on the site. 10 19 (3) The model number of the motor vehicle fuel storage 10 20 tank equipment, if available. 10 21 (4) A statement that the conversion necessary to store 10 22 renewable reformulated gasoline in the motor vehicle fuel 10 23 storage tank or to dispense renewable reformulated gasoline 10 24 using motor vehicle fuel storage tank piping has not begun or 10 25 been completed since the date of installation. 10 26 c. One of the following: 10 27 (1) A statement certified by the manufacturer of the motor 10 28 vehicle fuel storage tank equipment verifying that the motor 10 29 vehicle fuel storage tank equipment is not warranted for the 10 30 storage or dispensing of renewable reformulated gasoline. 10 31 (2) A letter signed by an agent or representative of two 10 32 property and casualty insurers of motor vehicle fuel storage 10 33 tank equipment recognized by the board. Each letter must 10 34 state that the motor vehicle fuel storage tank equipment is 10 35 not insurable for the storage or dispensing of renewable 11 1 reformulated gasoline under policies customarily issued by the 11 2 insurer covering motor vehicle fuel storage tank equipment. 11 3 5. A site classified as a no further action site pursuant 11 4 to a certificate issued by the department under section 11 5 455B.474 shall retain its classification following 11 6 modifications necessary to store and dispense renewable 11 7 reformulated gasoline, and the owner-operator shall not be 11 8 required to perform a new site assessment unless the site 11 9 causes a clear, present, and impending danger to the public 11 10 health or the environment. 11 11 6. The board shall not accept an application for 11 12 reimbursement of conversion costs as provided in this section 11 13 on or after July 1, 2002. 11 14 Sec. 14. RENEWABLE REFORMULATED GASOLINE – PROMOTIONAL 11 15 AND EDUCATIONAL CAMPAIGN – STUDY. 11 16 1. There is appropriated from the general fund of the 11 17 state to the department of agriculture and land stewardship 11 18 for the fiscal year beginning July 1, 2000, and ending June 11 19 30, 2001, the following amount, or so much thereof as is 11 20 necessary, to be used for the purposes designated: 11 21 For carrying out a renewable reformulated gasoline 11 22 promotional and educational campaign and study: 11 23 .................................................. $ 100,000 11 24 2. In carrying out this section, the department shall 11 25 provide participating retail dealers of motor vehicle fuel as 11 26 provided in chapter 214A with promotional and educational 11 27 information designed to increase the demand for renewable 11 28 reformulated gasoline. The information shall be posted in a 11 29 printed format and located in a conspicuous place at the point 11 30 of sale. The information shall be in a form that increases 11 31 consumer awareness of renewable reformulated gasoline, 11 32 including but not limited to signs or decals placed on motor 11 33 vehicle fuel pumps, including decals required pursuant to 11 34 section 214A.16. 11 35 3. The office of renewable fuels and coproducts created 12 1 pursuant to section 159A.3 shall administer this section 12 2 together with other departmental divisions as determined 12 3 necessary by the secretary of agriculture. The department may 12 4 cooperate with persons interested in increasing the demand for 12 5 ethanol in order to carry out this section. 12 6 4. The department shall submit a report to the governor 12 7 and the general assembly not later than March 1, 2001. The 12 8 report shall include a summary of the expenditure of moneys 12 9 appropriated under this section, the extent to which the 12 10 promotional and educational information increased demand, and 12 11 any recommendations for legislative action. 12 12 Sec. 15. 1999 Iowa Acts, chapter 204, section 15, 12 13 subsection 4, paragraph a, is amended by striking the 12 14 paragraph. 12 15 Sec. 16. INTERIM STUDY. The legislative council is 12 16 requested to establish an interim study committee. The study 12 17 committee shall consider the availability of motor vehicle 12 18 fuel with levels of octane customarily used to combine with 12 19 alcohol in order to produce renewable reformulated gasoline as 12 20 provided in chapter 214A as amended by this Act. The study 12 21 committee is directed to submit its findings, together with 12 22 any recommendations, in a report to the general assembly which 12 23 convenes in January 2001, as required by the legislative 12 24 council. 12 25 SF 2448 12 26 da/cc/26
Text: SF02447 Text: SF02449 Text: SF02400 - SF02499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
© 2000 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Fri Jun 2 03:35:00 CDT 2000
URL: /DOCS/GA/78GA/Legislation/SF/02400/SF02448/000417.html
jhf