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Senate File 38

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 214A.1, Code 2001, is amended by
  1  2 striking the section and inserting in lieu thereof the
  1  3 following:
  1  4    214A.1  DEFINITIONS.
  1  5    The following definitions shall apply to the various terms
  1  6 used in this chapter:
  1  7    1.  "A.S.T.M." means the American society for testing and
  1  8 materials.
  1  9    2.  "Dealer" means a retail dealer or a wholesale dealer.
  1 10    3.  "Dispense" means to do any of the following:
  1 11    a.  Sell motor vehicle fuel on a retail basis.
  1 12    b.  Place motor vehicle fuel in the fuel tank of a motor
  1 13 vehicle or small engine for the operation of that motor
  1 14 vehicle or small engine.
  1 15    c.  Place motor vehicle fuel in or remove motor vehicle
  1 16 fuel from a motor vehicle fuel container, including for
  1 17 storage in a motor vehicle fuel storage tank or transfer by
  1 18 motor vehicle storage tank piping.
  1 19    4.  "Fiberglass motor vehicle fuel storage tank" or
  1 20 "fiberglass storage tank" means a motor vehicle fuel storage
  1 21 tank that is fiberglass or fiberglass lined when manufactured.
  1 22    5.  "Gasoline" means a motor vehicle fuel which is not any
  1 23 of the following:
  1 24    a.  Diesel fuel.
  1 25    b.  Aviation gasoline or special fuel as defined in section
  1 26 452A.2.
  1 27    6.  "Gasoline station" means the location of a profit or
  1 28 nonprofit business where gasoline is sold or offered for sale
  1 29 by a retail dealer.
  1 30    7.  "Motor vehicle" means a self-propelled vehicle that
  1 31 operates using gasoline, including but not limited to any of
  1 32 the following:
  1 33    a.  An automobile as defined in section 321.1.
  1 34    b.  A motor truck as defined in section 321.1.
  1 35    c.  A motor bus as used in section 452A.57.
  2  1    d.  A motorcycle as defined in section 321.1.
  2  2    e.  A watercraft as defined in section 462A.2.
  2  3    f.  An off-road vehicle which is a snowmobile or an all-
  2  4 terrain vehicle as defined in section 321G.1.
  2  5    8.  "Motor vehicle fuel" means the same as defined in
  2  6 section 214.1.
  2  7    9.  "Motor vehicle fuel container" means a container used
  2  8 for the temporary storage of motor vehicle fuel by the
  2  9 consumer of that motor vehicle fuel.
  2 10    10.  "Motor vehicle fuel pump" or "pump" means the same as
  2 11 defined in section 214.1.
  2 12    11.  "Motor vehicle fuel storage tank" or "storage tank"
  2 13 means a tank that is a fixture on the surface or underground
  2 14 on the premises of a gasoline station, if the tank and piping
  2 15 are used to store and dispense gasoline to customers on a
  2 16 retail basis.
  2 17    12.  "Motor vehicle fuel storage tank equipment" or
  2 18 "storage tank equipment" means a motor vehicle fuel storage
  2 19 tank and motor vehicle fuel storage tank piping.
  2 20    13.  "Motor vehicle fuel storage tank piping" or "storage
  2 21 tank piping" means any rigid or flexible piping used to
  2 22 transport motor vehicle fuel from a motor vehicle fuel storage
  2 23 tank to a motor vehicle storage tank pump.
  2 24    14.  "MTBE" means methyl tertiary butyl ether.
  2 25    15.  "Oxygenate octane enhancer" means oxygen-containing
  2 26 compounds, including but not limited to alcohols, ethers, or
  2 27 ethanol.
  2 28    16.  "Oxygenated gasoline" means gasoline that contains an
  2 29 oxygenate octane enhancer as provided in section 214A.2.
  2 30    17.  "Qualified motor vehicle" means a motor vehicle that
  2 31 is any of the following:
  2 32    a.  A watercraft.
  2 33    b.  A motorcycle.
  2 34    c.  An antique vehicle registered under section 321.115.
  2 35    d.  An off-road vehicle that is a snowmobile or an all-
  3  1 terrain vehicle.
  3  2    18.  "Raceway" means an enclosed area in which there is
  3  3 located a public or private road used for racing.
  3  4    19.  "Retail dealer" means a person who operates,
  3  5 maintains, or conducts, either in person, or by any agent,
  3  6 employee, or servant, any place of business from which motor
  3  7 vehicle fuel is sold or offered for sale, at retail.
  3  8    20.  "Sell" means to sell or offer to sell.
  3  9    21.  "Unoxygenated gasoline" means gasoline other than
  3 10 oxygenated gasoline.
  3 11    22.  "Wholesale dealer" means a person, other than a retail
  3 12 dealer, who provides motor vehicle fuel for sale within this
  3 13 state.
  3 14    Sec. 2.  Section 214A.2, subsection 1, Code 2001, is
  3 15 amended to read as follows:
  3 16    1.  a.  The secretary department shall adopt rules pursuant
  3 17 to chapter 17A for carrying out this chapter.  The rules may
  3 18 shall include, but are not limited to, establishing
  3 19 specifications relating to motor vehicle fuel or oxygenate
  3 20 octane enhancers.
  3 21    b.  In the interest of uniformity, the secretary department
  3 22 shall adopt rules, by reference or otherwise, to establish
  3 23 specifications relating to tests and standards for motor
  3 24 vehicle fuel or oxygenate octane enhancers, established.  The
  3 25 specifications shall be based on those established by the
  3 26 American society for testing and materials (A.S.T.M.), unless
  3 27 the secretary department determines that those specifications
  3 28 are inconsistent with this chapter or are not appropriate to
  3 29 the conditions which exist in this state.
  3 30    Sec. 3.  Section 214A.2, Code 2001, is amended by adding
  3 31 the following new subsection:
  3 32    NEW SUBSECTION.  1A.  An oxygenated gasoline must contain
  3 33 at least three and five-tenths percent oxygen by weight.
  3 34    Sec. 4.  Section 214A.2A, Code 2001, is amended to read as
  3 35 follows:
  4  1    214A.2A  KEROSENE LABELING AND LOW GRAVITY PETROLEUM
  4  2 PRODUCTS.
  4  3    1.  Fuel which is sold or is kept, offered, or exposed for
  4  4 sale as kerosene shall be labeled as kerosene.  The label
  4  5 shall include the word "kerosene" and a designation as either
  4  6 "K1" or "K2", and shall indicate that the kerosene is in
  4  7 compliance with the standard specification adopted by the
  4  8 A.S.T.M. in specification D-3699 (1982).
  4  9    2.  Kerosene and distillate or petroleum products of lower
  4 10 gravity (Baume scale), when not used to propel a motor vehicle
  4 11 or compounded or combined with a motor vehicle fuel, are
  4 12 exempt from this chapter.
  4 13    Sec. 5.  Section 214A.4, Code 2001, is amended to read as
  4 14 follows:
  4 15    214A.4  INTRASTATE SHIPMENTS.
  4 16    A wholesale dealer or retail dealer shall not receive or
  4 17 sell or hold for sale, within this state, any motor vehicle
  4 18 fuel or an oxygenate octane enhancer for which specifications
  4 19 are prescribed in this chapter, unless the all of the
  4 20 following apply:
  4 21    1.  The motor vehicle fuel complies with specifications
  4 22 required in this chapter, other than standards relating to the
  4 23 oxygen content of oxygenated gasoline as provided pursuant to
  4 24 section 214A.2.
  4 25    2.  The dealer first secures receives from the refiner or
  4 26 producer of the motor vehicle fuel or oxygenate octane
  4 27 enhancer, a certified statement, verified by the oath of by a
  4 28 competent chemist qualified according to requirements of the
  4 29 department, who is employed by or representing represents the
  4 30 refiner or producer, showing.  The statement shall certify
  4 31 that the true standards and tests of the motor vehicle fuel or
  4 32 oxygenate octane enhancer, obtained by the methods referred to
  4 33 satisfies specifications for the motor vehicle fuel or
  4 34 oxygenate octane enhancer as required by the department
  4 35 pursuant to section 214A.2.  The statement shall be based on
  5  1 tests and standards approved by the department as provided in
  5  2 section 214A.2.  The verified tests are required and statement
  5  3 must accompany the bill of lading or shipping documents
  5  4 representing the shipment of the motor vehicle fuel or
  5  5 oxygenate octane enhancer into this state before the shipment
  5  6 can be received and unloaded, and shall be included with any
  5  7 cargo documents required pursuant to section 452A.12.
  5  8    Sec. 6.  NEW SECTION.  214A.21  GENERAL REQUIREMENTS.
  5  9    1.  Except as provided in this section, a person shall not
  5 10 dispense gasoline other than oxygenated gasoline in this
  5 11 state.
  5 12    2.  This section shall not apply to gasoline used to
  5 13 operate any of the following:
  5 14    a.  An aircraft as defined in section 328.1.
  5 15    b.  A motor vehicle used exclusively for motor sports,
  5 16 including a raceway, if the motor vehicle cannot operate on a
  5 17 highway as provided in chapter 321 or rules adopted by the
  5 18 state department of transportation.
  5 19    3.  A person may dispense unoxygenated gasoline only as
  5 20 provided in this subsection.  All unoxygenated gasoline
  5 21 dispensed in this state shall be premium grade unleaded
  5 22 gasoline as provided in section 214A.2.  The unoxygenated
  5 23 gasoline shall only be dispensed for one of the following
  5 24 purposes:
  5 25    a.  The operation of a qualified motor vehicle or a small
  5 26 engine.
  5 27    b.  The temporary storage of unoxygenated gasoline in a
  5 28 small motor vehicle fuel container.  The small motor vehicle
  5 29 fuel container shall meet all of the following requirements:
  5 30    (1)  It shall comply with the standards set forth in
  5 31 section 214A.15, or rules adopted by the department.
  5 32    (2)  It shall have a capacity of not more than six gallons.
  5 33    c.  A retail dealer shall only dispense unoxygenated
  5 34 gasoline at a gasoline station.  A gasoline station that is a
  5 35 marina, mooring facility, or resort shall only dispense
  6  1 unoxygenated gasoline for use by a watercraft.
  6  2    Sec. 7.  NEW SECTION.  214A.22  MOTOR VEHICLE FUEL STORAGE
  6  3 TANK – EQUIPMENT.
  6  4    1.  A retail dealer shall not install storage tank
  6  5 equipment used to store or dispense gasoline, unless the
  6  6 storage tank equipment is compatible with the storage and
  6  7 dispensing of oxygenated gasoline.
  6  8    2.  a.  Except as provided in this section, a retail dealer
  6  9 shall not use more than one motor vehicle fuel storage tank
  6 10 and connecting motor vehicle fuel storage tank piping located
  6 11 on the premises of a retail gasoline station for dispensing
  6 12 nonoxygenated gasoline as provided in section 214A.21.
  6 13    b.  A retail dealer may use storage tank equipment located
  6 14 on the premises of a retail gasoline station for storing and
  6 15 dispensing nonoxygenated gasoline, if the storage tank
  6 16 equipment is certified as exempt by the department pursuant to
  6 17 this section.
  6 18    c.  In order to receive an exemption certificate, the motor
  6 19 vehicle storage tank equipment must be incompatible with the
  6 20 storage or dispensing of oxygenated gasoline according to
  6 21 manufacturer specifications.  If the storage tank equipment is
  6 22 a motor vehicle fuel storage tank, it must be a fiberglass
  6 23 motor vehicle fuel storage tank.
  6 24    3.  The department shall grant an exemption certificate
  6 25 upon application by the retail dealer in a manner and
  6 26 according to procedures approved by the department.  The
  6 27 application shall contain all information required by the
  6 28 department and shall at least include all of the following:
  6 29    a.  The name of the retail dealer and the address of the
  6 30 gasoline station.
  6 31    b.  A detailed description of the storage tank equipment,
  6 32 including all of the following:
  6 33    (1)  The location of the storage tank equipment on the
  6 34 premises of the gasoline station.
  6 35    (2)  The date that the storage tank equipment was installed
  7  1 on the premises of the gasoline station.
  7  2    (3)  The model number of the storage tank equipment, if
  7  3 available.
  7  4    (4)  A statement certified by the retail dealer that the
  7  5 conversion necessary to store oxygenated gasoline in the
  7  6 fiberglass storage tank or dispense oxygenated gasoline using
  7  7 storage tank piping has not begun or been completed since the
  7  8 date of installation.
  7  9    c.  A statement certified by the manufacturer of the
  7 10 storage tank equipment verifying that the storage tank
  7 11 equipment is not warranted for the storage or dispensing of
  7 12 oxygenated gasoline.
  7 13    4.  The exemption certificate shall expire upon the earlier
  7 14 of the following:
  7 15    a.  The date that the storage tank equipment is replaced or
  7 16 converted with modifications necessary to store or dispense
  7 17 oxygenated gasoline.  The retail dealer shall immediately
  7 18 notify the department in writing of the date that the
  7 19 exemption certificate expires under this paragraph.
  7 20    b.  The twenty-year anniversary date of the installation of
  7 21 the storage tank equipment.
  7 22    5.  The department shall extend an exemption certificate
  7 23 upon application by the retail dealer in a manner and
  7 24 according to procedures approved by the department.  The
  7 25 application shall contain all information required in order to
  7 26 grant a certificate.
  7 27    a.  The retail dealer may apply for an extension within one
  7 28 hundred eighty days from the certificate's expiration date.
  7 29    b.  The retail dealer may apply for any number of
  7 30 additional extensions within one hundred eighty days from the
  7 31 last extended certificate's expiration date.  The department
  7 32 shall grant the extension if the application meets all
  7 33 requirements for granting an original certificate.
  7 34    c.  An extended exemption certificate shall expire upon the
  7 35 earlier of the following:
  8  1    (1)  The date that the storage tank equipment is replaced
  8  2 or converted with modifications necessary to store or dispense
  8  3 oxygenated gasoline.  The retail dealer shall immediately
  8  4 notify the department in writing of the date that the
  8  5 exemption certificate expires under this paragraph.
  8  6    (2)  The ten-year anniversary date of the expiration of the
  8  7 original or an extended certificate.
  8  8    Sec. 8.  Section 452A.3, subsection 2, Code 2001, is
  8  9 amended to read as follows:
  8 10    2.  a.  For the privilege of operating aircraft in this
  8 11 state an excise tax of eight cents per gallon is imposed on
  8 12 the use of all aviation gasoline.
  8 13    b.  For the privilege of operating motor vehicles in this
  8 14 state, an excise tax of nineteen cents per gallon until June
  8 15 30, 2007, is imposed upon the use of motor fuel containing at
  8 16 least ten percent alcohol distilled from cereal grains grown
  8 17 in the United States and used for any purpose except as
  8 18 otherwise provided in this division.
  8 19    Sec. 9.  Section 452A.12, Code 2001, is amended to read as
  8 20 follows:
  8 21    452A.12  LOADING AND DELIVERY EVIDENCE ON TRANSPORTATION
  8 22 EQUIPMENT.
  8 23    1.  As used in this section, unless the context otherwise
  8 24 requires:
  8 25    a.  "Cargo document" means a manifest or loading and
  8 26 delivery evidence as provided in this section.
  8 27    b.  "Gasoline" means the same as defined in section 214A.1.
  8 28    c.  "Oxygenate octane enhancer" means the same as defined
  8 29 in section 214A.1.
  8 30    d.  "Oxygenated gasoline" means the same as defined in
  8 31 section 214A.1.
  8 32    e.  "Premium grade unleaded gasoline" means a gasoline that
  8 33 complies with the requirements of section 214A.2.
  8 34    2.  A cargo document shall describe any transportation of
  8 35 motor fuel as required in this section.
  9  1    2A.  a.  A serially numbered manifest cargo document shall
  9  2 be carried on every vehicle, except small tank wagons, while
  9  3 in use in transportation service, on which shall be entered
  9  4 the following.  The cargo document shall be a serially
  9  5 numbered manifest.  The manifest shall include information as
  9  6 to about the cargo of motor fuel or special fuel being moved
  9  7 in the vehicle as required by the department, including all of
  9  8 the following:
  9  9    (1)  The date and place of loading, and the place to be
  9 10 unloaded, the of unloading the cargo.
  9 11    (2)  The person for whom it the cargo is to be delivered,
  9 12 the.
  9 13    (3)  The nature and kind of product, the being delivered.
  9 14 The manifest shall state whether the motor fuel is gasoline or
  9 15 another type of motor fuel.
  9 16    (4)  The amount of product, and other information required
  9 17 by the department including the number of gallons of motor
  9 18 fuel or special fuel being delivered.
  9 19    (5)  If the motor fuel is gasoline, the manifest shall
  9 20 include the provisions required in subsection 4.
  9 21    b.  The manifest for small tank wagons shall be retained at
  9 22 the home office.  The manifest covering each load transported,
  9 23 upon consummation of the delivery, shall be completed by
  9 24 showing the date and place of actual delivery and the person
  9 25 to whom actually delivered and shall be kept as a permanent
  9 26 record for a period of three years.  However, the The record
  9 27 of the manifest of past cargoes need is not required to be
  9 28 carried on the conveyance but shall be preserved by the
  9 29 carrier for inspection by the department.  A carrier subject
  9 30 to this subsection when distributing for a licensee may with
  9 31 the approval of the department substitute the loading and
  9 32 delivery evidence required in subsection 2 for 3 in lieu of
  9 33 the manifest.
  9 34    2. 3.  A person while transporting motor fuel or undyed
  9 35 special fuel from a refinery or marine or pipeline terminal in
 10  1 this state or from a point outside this state over the
 10  2 highways of this state in service other than that under
 10  3 subsection 1 2A shall carry in the vehicle a loading invoice
 10  4 cargo document which shall be loading and delivery evidence
 10  5 showing all of the following:
 10  6    a.  The name and address of the seller or consignor, the.
 10  7    b.  The date and place of loading, and the.
 10  8    c.  The kind and quantity of motor fuel or special fuel
 10  9 loaded, together with invoices.  The loading and delivery
 10 10 evidence shall state whether the motor fuel is gasoline or
 10 11 another type of motor fuel.
 10 12    d.  Invoices showing the kind and quantity of each delivery
 10 13 and the name and address of each purchaser or consignee.  If
 10 14 the cargo is gasoline, the invoice shall state the number of
 10 15 gallons of gasoline being delivered.  The loading invoice
 10 16 shall include the provisions required in subsection 4.
 10 17    4.  a.  Except as provided in paragraph "b", if the cargo
 10 18 is gasoline, the cargo document shall identify the volume
 10 19 percentage or gallons of oxygenate octane enhancers in the
 10 20 gasoline, and the octane number for the gasoline as provided
 10 21 in section 214A.2.  The cargo document shall include a
 10 22 statement printed in at least ten-point boldface type.  The
 10 23 statement shall provide as follows:
 10 24    (1)  If the cargo is oxygenated gasoline, the statement
 10 25 shall provide:  "This motor fuel is oxygenated gasoline legal
 10 26 for sale in this state as provided by Iowa Code chapter 214A."
 10 27    (2)  If the cargo is not oxygenated gasoline, one of the
 10 28 following shall apply:
 10 29    (a)  If the unoxygenated gasoline is a premium grade
 10 30 unleaded gasoline, the statement shall provide:  "This motor
 10 31 fuel is nonoxygenated unleaded premium grade gasoline legal
 10 32 for restricted retail sale in this state as provided in Iowa
 10 33 Code chapter 214A."
 10 34    (b)  If the unoxygenated gasoline is not a premium grade
 10 35 unleaded gasoline, the statement shall provide:  "This motor
 11  1 fuel is nonoxygenated gasoline and shall not be sold on a
 11  2 retail basis in this state."
 11  3    b.  This subsection shall not apply to the transport of
 11  4 gasoline between refineries, between terminals, or between a
 11  5 refinery and a terminal.  
 11  6                           EXPLANATION 
 11  7    This bill amends Code chapter 214A by prohibiting a person
 11  8 from dispensing gasoline other than oxygenated gasoline on a
 11  9 retail basis.  According to the bill, oxygenated gasoline is
 11 10 gasoline with an oxygen content of at least 3.5 percent.  The
 11 11 bill also establishes a number of exceptions to this
 11 12 prohibition.  The bill's requirement does not apply to
 11 13 gasoline used to operate aircraft or motor vehicles involved
 11 14 exclusively in motor sports events.  The requirement also does
 11 15 not apply to the dispensing of unoxygenated gasoline for
 11 16 certain limited purposes.  The bill provides that all
 11 17 unoxygenated gasoline dispensed in this state must be premium
 11 18 grade unleaded gasoline.  In addition, the bill provides that
 11 19 unoxygenated gasoline must be dispensed for the operation of a
 11 20 qualified motor vehicle or a small engine, or the temporary
 11 21 storage of unoxygenated gasoline in a small container.
 11 22    The bill prohibits a retail dealer from using more than one
 11 23 motor fuel vehicle storage tank located on the premises of a
 11 24 retail gasoline station for dispensing nonoxygenated gasoline.
 11 25 The bill provides an exception, if the tank or related piping
 11 26 is incompatible with the storage of oxygenated gasoline, as
 11 27 certified by the department of agriculture and land
 11 28 stewardship.  The bill provides that the certification expires
 11 29 on the 20-year anniversary date of the installation of the
 11 30 storage tank or the date that the storage tank equipment is
 11 31 replaced or modifications necessary to store and dispense
 11 32 oxygenated fuel are completed, whichever occurs earlier.  The
 11 33 bill allows for multiple 10-year extensions of the
 11 34 certificate.
 11 35    Code section 214A.11 provides that any person violating the
 12  1 provisions of Code chapter 214A is guilty of a simple
 12  2 misdemeanor.
 12  3    The bill repeals a provision contained in Code section
 12  4 452A.2 that provides a one cent reduction in the excise tax on
 12  5 gasoline that contains ethanol.
 12  6    The bill also amends Code section 452A.12 requiring that
 12  7 special information be contained on cargo documents such as
 12  8 manifests that are associated with the transportation of motor
 12  9 vehicle fuel, including the type of motor vehicle fuel or
 12 10 special fuel being transported, the volume percentage or
 12 11 gallons of oxygenate octane enhancers contained in the
 12 12 gasoline, and a notice identifying any legal requirements or
 12 13 restrictions upon dispensing the gasoline.  
 12 14 LSB 1442SS 79
 12 15 da/cf/24.1
     

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