Text: SSB01089 Text: SSB01091 Text: SSB01000 - SSB01099 Text: SSB 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 "healthy environmental and value-added 1 3 energy initiative." 1 4 1. The general assembly finds and declares all of the 1 5 following: 1 6 a. A significant amount of this state's air pollution is 1 7 caused by vehicles emitting a variety of petroleum-based 1 8 pollutants, including benzene and other aromatics, nitrous 1 9 oxides, particulate matter in the forms of smoke and soot, 1 10 carbon monoxide, and carbon dioxide. 1 11 b. Motor vehicle fuel that contains three and five tenths 1 12 percent oxygen enhances octane levels and provides more oxygen 1 13 for fuel combustion resulting in reduced levels of hazardous 1 14 emissions such as carbon monoxide and providing citizens of 1 15 this state with healthier air to breathe. 1 16 c. The state must capture the greatest benefit from 1 17 opportunities created by industries manufacturing high value- 1 18 added products derived from abundant resources of this state, 1 19 which may be used to transform alternative motor vehicle fuels 1 20 into conventional motor vehicle fuels. 1 21 2. The purpose of this Act is to protect the public 1 22 health, preserve this state's natural environment, and 1 23 encourage the manufacture of compatible value-added products. 1 24 Sec. 2. Section 15.333, Code 1999, is amended to read as 1 25 follows: 1 26 15.333 INVESTMENT TAX CREDIT. 1 27 1. An eligible business may claim a corporate tax credit 1 28 up to a maximum of ten percent of the new investment which is 1 29 directly related to new jobs created by the location or 1 30 expansion of an eligible business under the program. Any 1 31 credit in excess of the tax liability for the tax year may be 1 32 credited to the tax liability for the following seven years or 1 33 until depleted, whichever occurs earlier. 1 34 2. a. If an eligible business provides for the processing 1 35 of agricultural commodities into value-added agricultural 2 1 products, the business may elect to fully transfer its 2 2 investment tax credit to other taxpayers of this state. 2 3 b. If the eligible business is a partnership, subchapter S 2 4 corporation, limited liability company, or estate or trust 2 5 electing to have the income taxed directly to the individual, 2 6 an individual may claim the tax credit allowed. The amount 2 7 claimed by the individual shall be based upon the pro rata 2 8 share of the individual's earnings of the partnership, 2 9 subchapter S corporation, limited liability company, or estate 2 10 or trust. 2 11 3. For purposes of this section, "new investment directly 2 12 related to new jobs created by the location or expansion of an 2 13 eligible business under the program" means the cost of 2 14 machinery and equipment, as defined in section 427A.1, 2 15 subsection 1, paragraphs "e" and "j", purchased for use in the 2 16 operation of the eligible business, the purchase price of 2 17 which has been depreciated in accordance with generally 2 18 accepted accounting principles, and the cost of improvements 2 19 made to real property which is used in the operation of the 2 20 eligible business and which receives a partial property tax 2 21 exemption for the actual value added under section 15.332. 2 22 Sec. 3. Section 214A.1, Code 1999, is amended to read as 2 23 follows: 2 24 214A.1 DEFINITIONS. 2 25 The following definitions shall apply to the various terms 2 26 used in this chapter: 2 27 1. "A.S.T.M." means the American society for testing and 2 28 materials. 2 292. "Motor vehicle fuel" means a substance or combination2 30of substances which is intended to be or is capable of being2 31used for the purpose of propelling or running by combustion2 32any internal combustion engine and is kept for sale or sold2 33for that purpose. The products commonly known as kerosene and2 34distillate or petroleum products of lower gravity (Baume2 35scale), when not used to propel a motor vehicle or for3 1compounding or combining with a motor vehicle fuel, are exempt3 2from this chapter except as provided in section 214A.2A.3 3 2. "Dealer" means a retail dealer or a wholesale dealer. 3 4 3. "Dispense" means to do any of the following: 3 5 a. Sell motor vehicle fuel on a retail basis. 3 6 b. Place motor vehicle fuel in the fuel tank of a motor 3 7 vehicle or small engine for the operation of that motor 3 8 vehicle or small engine. 3 9 c. Place motor vehicle fuel in or remove motor vehicle 3 10 fuel from a motor vehicle fuel container, including for 3 11 storage in a motor vehicle fuel storage tank or transfer by 3 12 motor vehicle storage tank piping. 3 13 4. "Fiberglass motor vehicle fuel storage tank" or 3 14 "fiberglass storage tank" means a motor vehicle fuel storage 3 15 tank that is fiberglass or fiberglass lined when manufactured. 3 16 5. "Gasoline" means a motor vehicle fuel which is not any 3 17 of the following: 3 18 a. Diesel fuel. 3 19 b. Aviation gasoline or special fuel as defined in section 3 20 452A.2. 3 21 6. "Gasoline station" means the location of a profit or 3 22 nonprofit business where gasoline is dispensed by a retail 3 23 dealer. 3 24 7. "Motor vehicle" means a self-propelled vehicle that 3 25 operates using gasoline, including but not limited to any of 3 26 the following: 3 27 a. An automobile as defined in section 321.1. 3 28 b. A motor truck as defined in section 321.1. 3 29 c. A motor bus as used in section 452A.57. 3 30 d. A motorcycle as defined in section 321.1. 3 31 e. A watercraft as defined in section 462A.2. 3 32 f. An off-road vehicle which is a snowmobile or an all- 3 33 terrain vehicle as defined in section 321G.1. 3 34 8. "Motor vehicle fuel" means the same as defined in 3 35 section 214.1. 4 1 9. "Motor vehicle fuel container" means a container used 4 2 for the temporary storage of motor vehicle fuel by the 4 3 consumer of that motor vehicle fuel. 4 4 10. "Motor vehicle fuel pump" or "pump" means the same as 4 5 defined in section 214.1. 4 6 11. "Motor vehicle fuel storage tank equipment" or 4 7 "storage tank equipment" means a motor vehicle fuel storage 4 8 tank and motor vehicle fuel storage tank piping. 4 9 12. "Motor vehicle fuel storage tank" or "storage tank" 4 10 means a tank that is a fixture on the surface or underground 4 11 on the premises of a gasoline station, if the tank and piping 4 12 are used to store and dispense gasoline to customers on a 4 13 retail basis. 4 14 13. "Motor vehicle fuel storage tank piping" or "storage 4 15 tank piping" means any rigid or flexible piping used to 4 16 transport motor vehicle fuel from a motor vehicle fuel storage 4 17 tank to a motor vehicle storage tank pump. 4 183.14. "Oxygenate octane enhancer" means oxygen-containing 4 19 compounds, including but not limited to alcohols, ethers, or 4 20 ethanol. 4 21 15. "Oxygenated gasoline" means gasoline that contains an 4 22 oxygenate octane enhancer as provided in section 214A.2. 4 23 16. "Qualified motor vehicle" means a motor vehicle that 4 24 is any of the following: 4 25 a. A watercraft. 4 26 b. A motorcycle. 4 27 c. An antique vehicle registered under section 321.115. 4 28 d. An off-road vehicle that is a snowmobile or an all- 4 29 terrain vehicle. 4 30 17. "Raceway" means an enclosed area in which there is 4 31 located a public or private road used for racing. 4 324.18. "Retail dealer"shall mean and include anymeans a 4 33 person, firm, partnership, association, or corporationwho 4 34 operates, maintains, or conducts, either in person, or by any 4 35 agent, employee, or servant, any place of business, filling5 1station, pump station, or tank wagon,from whichanymotor 5 2 vehicle fuel, as defined herein,is sold or offered for sale, 5 3 at retail, or to the final or ultimate consumer. 5 45.19. "Wholesale dealer"shall mean and include anymeans 5 5 a person,firm, partnership, association, or corporation,5 6 other than a retaildealers as defined in subsection 3 of this5 7section, who sells, keeps, or holds, for sale, or purchase5 8 provides motor vehicle fuel forthe purpose ofsale within 5 9 this state, any motor vehicle fuel. 5 10 20. "Unoxygenated gasoline" means gasoline other than 5 11 oxygenated gasoline. 5 12 Sec. 4. Section 214A.2, subsection 1, Code 1999, is 5 13 amended to read as follows: 5 14 1. a. Thesecretarydepartment shall adopt rules pursuant 5 15 to chapter 17A for carrying out this chapter. The rulesmay5 16 shall include, but are not limited to, establishing 5 17 specifications relating to motor vehicle fuel or oxygenate 5 18 octane enhancers. 5 19 b. In the interest of uniformity, thesecretarydepartment 5 20 shall adopt rules, by reference or otherwise, to establish 5 21 specifications relating to tests and standards for motor 5 22 vehicle fuel or oxygenate octane enhancers, established. The 5 23 specifications shall be based on those established by the 5 24 American society for testing and materials (A.S.T.M.), unless 5 25 thesecretarydepartment determines that those specifications 5 26 are inconsistent with this chapter or are not appropriate to 5 27 the conditions which exist in this state. 5 28 c. The department shall not use Reid vapor pressure tests 5 29 more frequently to test oxygenated gasoline than customarily 5 30 required to test unoxygenated gasoline. 5 31 Sec. 5. Section 214A.2, Code 1999, is amended by adding 5 32 the following new subsection: 5 33 NEW SUBSECTION. 1A. An oxygenated gasoline must contain 5 34 at least three and five-tenths percent oxygen by weight. 5 35 Sec. 6. Section 214A.2A, Code 1999, is amended to read as 6 1 follows: 6 2 214A.2A KEROSENELABELINGAND LOW GRAVITY PETROLEUM 6 3 PRODUCTS. 6 4 1. Fuel which is sold or is kept, offered, or exposed for 6 5 sale as kerosene shall be labeled as kerosene. The label 6 6 shall include the word "kerosene" and a designation as either 6 7 "K1" or "K2", and shall indicate that the kerosene is in 6 8 compliance with the standard specification adopted by the 6 9 A.S.T.M. in specification D-3699 (1982). 6 10 2. Kerosene and distillate or petroleum products of lower 6 11 gravity (Baume scale), when not used to propel a motor vehicle 6 12 or compounded or combined with a motor vehicle fuel, are 6 13 exempt from this chapter. 6 14 Sec. 7. Section 214A.16, Code 1999, is amended to read as 6 15 follows: 6 16 214A.16 NOTICEOF BLENDED FUEL – DECALON MOTOR VEHICLE 6 17 FUEL PUMPS. 6 18 1.All motor vehicle fuel kept, offered, or exposed for6 19sale, or sold at retail containing overA retail dealer shall 6 20 place a decal on the motor vehicle fuel pump that dispenses 6 21 motor vehicle fuel identifying the fuel as follows: 6 22 a. If the motor vehicle fuel is gasoline containing more 6 23 than one percent ethanol, methanol, or any combination of 6 24 oxygenate octane enhancersshall be identified as "with"6 25eitherthe decal shall identify the gasoline as containing 6 26 "ethanol", "methanol", "ethanol/methanol", or similar wording 6 27on a decal. 6 28 b. If the motor vehicle fuel is unoxygenated gasoline, the 6 29 decal shall state the following: "Nonoxygenated gasoline only 6 30 for use in antique vehicles, off-road vehicles, motorcycles, 6 31 watercraft, or small engines." 6 32 c.AllIf the motor vehicle fuel is diesel fuelkept,6 33offered, or exposed for sale, or sold at retailcontaining 6 34overmore than one percent soybean oil by volume the decal 6 35 shallbe identifiedshall identify the diesel fuel as "with 7 1 soydiesel" or similar wording on a decal. 7 2 2. The design and location of the decals shall be 7 3 prescribed by rules adopted by the department. The department 7 4 shall adopt the rules to be effective by January 1,19952000. 7 5 A decal identifying a renewable fuel shall be consistent with 7 6 standards adopted pursuant to section 159A.6.Until the7 7department establishes standards for decals, the wording shall7 8be on a white adhesive decal with black letters at least one-7 9half inch high and at least one-quarter inch wide placed7 10between thirty and forty inches above the driveway level on7 11the front sides of any container or pump from which the motor7 12fuel is sold.The department may approve an application to 7 13 place a decal in a special location on a pump or container or 7 14 use a decal with special lettering or colors, if the decal 7 15 appears clear and conspicuous to the consumer. The 7 16 application shall be made in writing pursuant to procedures 7 17 adopted by the department. Designs for a decal identifying a 7 18 renewable fuel shall be consistent with standards adopted 7 19 pursuant to section 159A.6. 7 20 Sec. 8. Section 214A.4, Code 1999, is amended to read as 7 21 follows: 7 22 214A.4 INTRASTATE SHIPMENTS. 7 23 Awholesaledealeror retail dealershall not receive or 7 24 sell or hold for sale, within this state,anymotor vehicle 7 25 fuel or an oxygenate octane enhancerfor which specifications7 26are prescribed in this chapter, unlesstheall of the 7 27 following apply: 7 28 1. The motor vehicle fuel is subject to specifications 7 29 required in this chapter, other than standards relating to the 7 30 oxygen content of oxygenated gasoline as provided pursuant to 7 31 section 214A.2A. 7 32 2. The dealerfirst securesreceives from the refiner or 7 33 producer of the motor vehicle fuel or oxygenate octane 7 34 enhancer, a certified statement, verified by the oath ofby a 7 35competentchemist qualified according to requirements of the 8 1 department, who is employed by orrepresentingrepresents the 8 2 refiner or producer, showing. The statement shall certify 8 3 that thetrue standards and tests of themotor vehicle fuel or 8 4 oxygenate octane enhancer, obtained by the methods referred to8 5 satisfies specifications for the motor vehicle fuel as 8 6 required by the department pursuant to section 214A.2. The 8 7 statement shall be based on tests and standards approved by 8 8 the department as provided in section 214A.2. Theverified8 9tests are required andstatement must accompany the bill of 8 10 lading or shipping documents representing the shipment of the 8 11 motor vehicle fuel or oxygenate octane enhancer into this 8 12 state before the shipment can be received and unloaded, and 8 13 shall be included with any cargo documents required pursuant 8 14 to section 452A.12. 8 15 Sec. 9. NEW SECTION. 214A.21 GENERAL REQUIREMENTS. 8 16 1. Except as provided in this section, a person shall not 8 17 dispense gasoline other than oxygenated gasoline in this 8 18 state. 8 19 2. This section shall not apply to gasoline used to 8 20 operate any of the following: 8 21 a. An aircraft as defined in section 328.1. 8 22 b. A motor vehicle used exclusively for motor sports, 8 23 including a raceway, if the motor vehicle cannot operate on a 8 24 highway as provided in chapter 321 or rules adopted by the 8 25 state department of transportation. 8 26 3. A person may dispense unoxygenated gasoline only as 8 27 provided in this subsection. All unoxygenated gasoline 8 28 dispensed in this state shall be premium grade unleaded 8 29 gasoline as provided in section 214A.2. The unoxygenated 8 30 gasoline shall only be dispensed for one of the following 8 31 purposes: 8 32 a. The operation of a qualified motor vehicle or a small 8 33 engine. 8 34 b. The temporary storage of unoxygenated gasoline in a 8 35 small motor vehicle fuel container. The small motor vehicle 9 1 fuel container shall meet all of the following requirements: 9 2 (1) It shall comply with the standards set forth in 9 3 section 214A.15, or rules adopted by the department. 9 4 (2) It shall have a capacity of not more than six gallons. 9 5 c. A retail dealer shall only dispense unoxygenated 9 6 gasoline at a gasoline station. A gas station that is a 9 7 marina, mooring facility, or resort shall only dispense 9 8 unoxygenated gasoline for use by a watercraft. 9 9 Sec. 10. NEW SECTION. 214A.22 MOTOR VEHICLE FUEL STORAGE 9 10 TANK – EQUIPMENT. 9 11 1. A retail dealer shall not install storage tank 9 12 equipment used to store or dispense gasoline, unless the 9 13 storage tank equipment is compatible with the storage and 9 14 dispensing of oxygenated gasoline. 9 15 2. Except as provided in this section, a retail dealer 9 16 shall not use more than one motor fuel vehicle storage tank 9 17 located on the premises of a retail gasoline station for 9 18 dispensing nonoxygenated gasoline as provided in section 9 19 214A.21. However, a retail dealer may use more than one 9 20 storage tank located on the premises of a retail gasoline 9 21 station for dispensing nonoxygenated gasoline, if the storage 9 22 tank is a fiberglass motor vehicle fuel storage tank that is 9 23 incompatible with the storage or dispensing of oxygenated 9 24 gasoline, as certified by the department pursuant to this 9 25 section. 9 26 3. The department shall grant an exemption certificate 9 27 upon application by the retail dealer in a manner and 9 28 according to procedures approved by the department. The 9 29 application shall contain all information required by the 9 30 department and shall at least include all of the following: 9 31 a. The name of the retail dealer and the address of the 9 32 gasoline station. 9 33 b. A detailed description of the fiberglass storage tank, 9 34 including all of the following: 9 35 (1) The location of the fiberglass storage tank on the 10 1 premises of the gasoline station. 10 2 (2) The date that the fiberglass storage tank was 10 3 installed on the premises of the gasoline station. 10 4 (3) The model number of the fiberglass storage tank, if 10 5 available. 10 6 (4) A statement certified by the retail dealer that the 10 7 conversion necessary to store oxygenated fuel in the 10 8 fiberglass storage tank has not begun or been completed since 10 9 the date of installation. 10 10 c. A statement certified by the manufacturer of the 10 11 fiberglass storage tank verifying that the fiberglass storage 10 12 tank is not warranted for the storage of oxygenated fuel. 10 13 4. The exemption certificate shall expire upon the earlier 10 14 of the following: 10 15 a. The date that the fiberglass storage tank is replaced 10 16 or converted with modifications necessary to store oxygenated 10 17 fuel in the storage tank. The retail dealer shall immediately 10 18 notify the department in writing of the date that the 10 19 exemption certificate expires under this paragraph. 10 20 b. The twenty-year anniversary date of the installation of 10 21 the fiberglass storage tank. 10 22 5. The department shall extend an exemption certificate 10 23 upon application by the retail dealer in a manner and 10 24 according to procedures approved by the department. The 10 25 application shall contain all information required in order to 10 26 grant a certificate. 10 27 a. The retail dealer may apply for an extension within one 10 28 hundred eighty days from the certificate's expiration date. 10 29 b. The retail dealer may apply for any number of 10 30 additional extensions within one hundred eighty days from the 10 31 last extended certificate's expiration date. The department 10 32 shall grant the extension if the application meets all 10 33 requirements for granting an original certificate. 10 34 c. An extended exemption certificate shall expire upon the 10 35 earlier of the following: 11 1 (1) The date that the fiberglass storage tank is replaced 11 2 or converted with modifications necessary to store oxygenated 11 3 fuel in the storage tank. The retail dealer shall immediately 11 4 notify the department in writing of the date that the 11 5 exemption certificate expires under this paragraph. 11 6 (2) The ten-year anniversary date of the expiration of the 11 7 original or an extended certificate. 11 8 Sec. 11. Section 452A.3, subsection 2, Code 1999, is 11 9 amended to read as follows: 11 10 2.a.For the privilege of operating aircraft in this 11 11 state an excise tax of eight cents per gallon is imposed on 11 12 the use of all aviation gasoline. 11 13b. For the privilege of operating motor vehicles in this11 14state, an excise tax of nineteen cents per gallon until June11 1530, 2007, is imposed upon the use of motor fuel containing at11 16least ten percent alcohol distilled from cereal grains grown11 17in the United States and used for any purpose except as11 18otherwise provided in this division.11 19 Sec. 12. Section 452A.12, Code 1999, is amended to read as 11 20 follows: 11 21 452A.12 LOADING AND DELIVERY EVIDENCE ON TRANSPORTATION 11 22 EQUIPMENT. 11 23 1. As used in this section, unless the context otherwise 11 24 requires: 11 25 a. "Cargo document" means a manifest or loading and 11 26 delivery evidence as provided in this section. 11 27 b. "Gasoline" means the same as defined in section 214A.1. 11 28 c. "Oxygenated gasoline" means the same as defined in 11 29 section 214A.1. 11 30 d. "Oxygenate octane enhancer" means the same as defined 11 31 in section 214A.1. 11 32 e. "Premium grade unleaded gasoline" means a gasoline that 11 33 complies with the requirements of section 214A.2. 11 34 2. A cargo document shall describe any transportation of 11 35 motor fuel as required in this section. 12 1 2A. a. Aserially numbered manifestcargo document shall 12 2 be carried on every vehicle, except small tank wagons, while 12 3 in use in transportation service, on which shall be entered12 4the following. The cargo document shall be a serially 12 5 numbered manifest. The manifest shall include informationas12 6toabout the cargo of motor fuel or special fuel being moved 12 7 in the vehicle as required by the department, including all of 12 8 the following: 12 9 (1) The date and place of loading,and the placeto be12 10unloaded, theof unloading the cargo. 12 11 (2) The person for whomitthe cargo is to be delivered,12 12the. 12 13 (3) The nature and kind of product, thebeing delivered. 12 14 The manifest shall state whether the motor fuel is gasoline or 12 15 another type of motor fuel. 12 16 (4) The amount of product,and other information required12 17by the departmentincluding the number of gallons of motor 12 18 fuel being delivered. 12 19 (5) If the motor fuel is gasoline, the manifest shall 12 20 include provisions required in subsection 4. 12 21 b. The manifest for small tank wagons shall be retained at 12 22 the home office. The manifest covering each load transported, 12 23 upon consummation of the delivery, shall be completed by 12 24 showing the date and place of actual delivery and the person 12 25 to whom actually delivered and shall be kept as a permanent 12 26 record for a period of three years.However, theThe record 12 27 of the manifest of past cargoesneedis not required to be 12 28 carried on the conveyance but shall be preserved by the 12 29 carrier for inspection by the department. A carrier subject 12 30 to this subsection when distributing for a licensee may with 12 31 the approval of the department substitute the loading and 12 32 delivery evidence required in subsection2 forin lieu of the 12 33 manifest. 12 342.3. A person while transporting motor fuel or undyed 12 35 special fuel from a refinery or marine or pipeline terminal in 13 1 this state or from a point outside this state over the 13 2 highways of this state in service other than that under 13 3 subsection12A shall carry in the vehicle aloading invoice13 4 cargo document which shall be loading and delivery evidence 13 5 showing all of the following: 13 6 a. The name and address of the seller or consignor, the. 13 7 b. The date and place of loading, and the. 13 8 c. The kind and quantity of motor fuel or special fuel 13 9 loaded, together with invoices. The loading and delivery 13 10 evidence shall state whether the motor fuel is gasoline or 13 11 another type of motor fuel. 13 12 d. Invoices showing the kind and quantity of each delivery 13 13 and the name and address of each purchaser or consignee. If 13 14 the motor fuel is gasoline, the invoice shall state the number 13 15 of gallons of gasoline being delivered. The loading invoice 13 16 shall include provisions required in subsection 4. 13 17 4. a. Except as provided in paragraph "b", if the cargo 13 18 is gasoline, the cargo document shall identify the volume 13 19 percentage or gallons of oxygenate octane enhancers in the 13 20 gasoline, and the octane number for the gasoline as provided 13 21 in section 214A.2. The cargo document shall include a 13 22 statement printed in at least ten-point boldface type. The 13 23 statement shall provide as follows: 13 24 (1) If the motor fuel is oxygenated gasoline, the 13 25 statement shall provide: "This motor fuel is oxygenated 13 26 gasoline legal for sale in this state as provided by Iowa Code 13 27 chapter 214A." 13 28 (2) If the motor fuel is not oxygenated gasoline, one the 13 29 of the following shall apply: 13 30 (a) If the unoxygenated gasoline is a premium grade 13 31 unleaded gasoline, the statement shall provide: "This motor 13 32 fuel is nonoxygenated unleaded premium grade gasoline legal 13 33 for restricted retail sale in this state as provided in Iowa 13 34 Code chapter 214A." 13 35 (b) If the unoxygenated gasoline is not a premium grade 14 1 unleaded gasoline, the statement shall provide: "This motor 14 2 fuel is nonoxygenated gasoline and shall not be sold on a 14 3 retail basis in this state." 14 4 b. This subsection shall not apply to the transport of 14 5 gasoline between refineries, between terminals, or between a 14 6 refinery and a terminal. 14 7 Sec. 13. Section 455G.9, subsection 1, Code 1999, is 14 8 amended by adding the following new lettered paragraph: 14 9 NEW PARAGRAPH. j. Up to one hundred percent of the costs 14 10 necessary to reimburse the owner or operator for costs 14 11 associated with converting a fiberglass motor vehicle fuel 14 12 storage tank or storage tank piping used to transport 14 13 oxygenated gasoline from a fiberglass storage tank to a pump 14 14 as required pursuant to chapter 214A, pursuant to section 14 15 455G.23. However, the owner or operator shall not be 14 16 reimbursed more than ten thousand dollars for converting a 14 17 fiberglass storage tank or more than three thousand dollars 14 18 for converting storage tank piping. 14 19 Sec. 14. NEW SECTION. 455G.23 CONVERSION NECESSARY TO 14 20 STORE AND DISPENSE OXYGENATED GASOLINE. 14 21 1. The board shall establish a program to reimburse the 14 22 owner or operator of a site for costs necessary to convert a 14 23 fiberglass storage tank or storage tank equipment for use in 14 24 storing or dispensing oxygenated gasoline as required pursuant 14 25 to chapter 214A. The conversion may be the replacement of 14 26 storage tank equipment or modifications necessary for the 14 27 storage and dispensing of oxygenated gasoline. The owner or 14 28 operator shall apply to the board in a manner and according to 14 29 procedures required by the board. 14 30 2. In order to be eligible for reimbursement, all of the 14 31 following must apply: 14 32 a. The site must be located at a gasoline station as 14 33 defined in section 214A.1. 14 34 b. The site must comply with federal and state standards 14 35 governing new or upgraded storage tank equipment. 15 1 c. If a storage tank is converted, the department of 15 2 agriculture and land stewardship must grant an exemption 15 3 certificate to the owner or operator pursuant to section 15 4 214A.22. 15 5 3. A site classified as a no further action site pursuant 15 6 to a certificate issued by the department under section 15 7 455B.474 shall retain its classification following 15 8 modifications necessary to store and dispense oxygenated 15 9 gasoline, and the owner operator shall not be required to 15 10 perform a new site assessment unless the site causes a clear, 15 11 present, and impending danger to the public health or the 15 12 environment. 15 13 Sec. 15. STUDY – ALTERNATIVE FUELS. 15 14 1. As used in this section, "alternative fuels" means 15 15 electricity, compressed natural gas, liquefied natural gas, 15 16 biodiesel fuels, gasoline containing a mixture of eighty-five 15 17 or more percent ethanol, and gasoline containing eighty-five 15 18 percent or more methanol. 15 19 2. The department of revenue and finance, in consultation 15 20 with the state department of transportation, shall conduct a 15 21 study regarding methods to tax alternative fuels, including 15 22 the amount of revenue raised from such methods, in order to 15 23 ensure that such fuels are taxed on the same basis as 15 24 conventional motor vehicle fuels. 15 25 3. The department of revenue and finance shall submit its 15 26 report to the general assembly not later than January 10, 15 27 2000. 15 28 EXPLANATION 15 29 This bill provides for the establishment of a healthy 15 30 environmental and value-added energy initiative. 15 31 The bill includes a section describing the purposes of the 15 32 bill, including providing for protecting the public health, 15 33 preserving the state's natural environment, and encouraging 15 34 the manufacture of compatible value-added products. 15 35 The bill amends Code section 15.33, which provides for tax 16 1 credits for eligible businesses. The bill provides that if an 16 2 eligible business provides for the manufacturing of 16 3 agricultural commodities into value-added agricultural 16 4 products, the business may elect to fully transfer its 16 5 investment tax credit to other taxpayers of this state. 16 6 The bill amends Code chapter 214A by prohibiting a person 16 7 from dispensing gasoline other than oxygenated gasoline on a 16 8 retail basis. According to the bill, oxygenated gasoline is 16 9 gasoline with an oxygen content of at least three and five- 16 10 tenths percent. The bill also establishes a number of 16 11 exceptions to this prohibition. The bill's requirement does 16 12 not apply to gasoline used to operate aircraft or motor 16 13 vehicles involved in motor sports events. The requirement 16 14 also does not apply to the dispensing of unoxygenated gasoline 16 15 for certain limited purposes. The bill provides that all 16 16 unoxygenated gasoline dispensed in this state must be premium 16 17 grade unleaded gasoline. In addition, the bill provides that 16 18 unoxygenated gasoline must be dispensed for the operation of a 16 19 qualified motor vehicle or a small engine, or the temporary 16 20 storage of unoxygenated gasoline in a small container. The 16 21 bill requires that a decal must be placed on a motor vehicle 16 22 fuel pump stating the restricted use of the gasoline. 16 23 The bill provides that the department shall not use Reid 16 24 vapor pressure tests more frequently to test oxygenated 16 25 gasoline than customarily required to test unoxygenated 16 26 gasoline. 16 27 The bill prohibits a retail dealer from using more than one 16 28 motor fuel vehicle storage tank located on the premises of a 16 29 retail gasoline station for dispensing nonoxygenated gasoline. 16 30 The bill provides an exception, if the tank is incompatible 16 31 with the storage of oxygenated gasoline, as certified by the 16 32 department of agriculture and land stewardship. The bill 16 33 provides that the certification expires on the twenty-year 16 34 anniversary date of the installation of the storage tank or 16 35 the date that the storage tank is replaced or modifications 17 1 necessary to store and dispense oxygenated fuel from the 17 2 storage tank are completed, whichever occurs earlier. The 17 3 bill allows for multiple ten-year extensions of the 17 4 certificate. 17 5 Code section 214A.11 provides that any person violating the 17 6 provisions of Code chapter 214A is guilty of a simple 17 7 misdemeanor. 17 8 The bill repeals a provision contained in Code section 17 9 452A.2 that provides an one cent reduction in the excise tax 17 10 on gasoline that contains ethanol. 17 11 The bill also amends Code section 452A.12 requiring that 17 12 special information be contained on cargo documents such as 17 13 manifests that are associated with the transportation of motor 17 14 vehicle fuel, including the type of motor vehicle fuel being 17 15 transported, the volume percentage or gallons of oxygenate 17 16 octane enhancers contained in the gasoline, and a notice 17 17 identifying any legal requirements or restrictions upon 17 18 dispensing the gasoline. 17 19 The bill amends Code chapter 455G by requiring the Iowa 17 20 comprehensive petroleum underground storage tank fund board to 17 21 establish a program to reimburse the owner or operator of a 17 22 site for costs necessary to store and dispense oxygenated 17 23 gasoline from storage tanks or tank piping. Moneys for 17 24 reimbursement derive from the remedial account of the Iowa 17 25 comprehensive petroleum underground storage tank fund. The 17 26 bill provides that a site classified as a no further action 17 27 site pursuant to a certificate issued by the department under 17 28 Code section 455B.474 shall retain its classification 17 29 following the replacement or modifications necessary to store 17 30 and dispense oxygenated gasoline, unless the site causes a 17 31 clear, present, and impending danger to the public health or 17 32 the environment. 17 33 Finally, the bill requires the department of revenue and 17 34 finance, in consultation with the state department of 17 35 transportation, to conduct a study regarding methods to tax 18 1 alternative fuels, including the amount of revenue raised from 18 2 such methods. The department of revenue and finance must 18 3 submit a report, including recommendations, to the general 18 4 assembly not later than January 10, 2000. 18 5 LSB 1725XC 78 18 6 da/cf/24.1
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