Text: H01491 Text: H01493 Text: H01400 - H01499 Text: H Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend House File 688 as follows: 1 2 #1. By striking everything after the enacting 1 3 clause and inserting the following: 1 4 "Section 1. NEW SECTION. 15E.110 DEFINITIONS. 1 5 As used in this division, unless the context 1 6 otherwise requires: 1 7 1. "Biodiesel stock" means a fuel stock comprised 1 8 of mon-alkyl esters which may be derived from soybean 1 9 oil and which is used to produce biodiesel-blended 1 10 fuel and meets requirements of the American society 1 11 for testing and materials. 1 12 2. "Biodiesel-blended fuel" means the same as 1 13 defined in section 159A.2. 1 14 3. "Special fuel" means the same as defined in 1 15 section 452A.2. 1 16 Sec. 2. NEW SECTION. 15E.113 BIODIESEL EQUIPMENT 1 17 ACQUISITION PROGRAM. 1 18 1. The department shall establish a biodiesel 1 19 equipment acquisition program. The department shall 1 20 provide financing to eligible persons for the 1 21 acquisition of equipment to produce and store 1 22 biodiesel-blended fuel for sale. Equipment includes 1 23 but is not limited to storage tanks, related devices, 1 24 and machinery required to compound or blend biodiesel- 1 25 blended fuel, including by splash blending or 1 26 injection of biodiesel stock with petroleum-based 1 27 diesel fuel. The department may provide financing to 1 28 an eligible person who acquires equipment for redesign 1 29 planning required to satisfy fire hazard prevention or 1 30 environmental protection standards promulgated by this 1 31 state or the federal government. 1 32 2. The department may provide financing to an 1 33 eligible person upon review and evaluation of the 1 34 person's application according to procedures adopted 1 35 by the department. Financing shall be awarded on a 1 36 cost-share basis. The eligible person must be one of 1 37 the following: 1 38 a. A marine or pipeline terminal. The amount of 1 39 the financing shall not exceed forty percent of the 1 40 cost of acquiring the equipment and redesign planning 1 41 as estimated by the department or forty percent of the 1 42 actual cost of acquiring the equipment and redesign 1 43 planning, whichever is less. However, the marine or 1 44 pipeline terminal shall not receive more than fifty 1 45 thousand dollars in financing for the acquisition of 1 46 equipment and the redesign planning at one business 1 47 location. 1 48 b. A marketer of special fuels other than a marine 1 49 or pipeline terminal. The amount of the financing 1 50 shall not exceed eighty percent of the cost of 2 1 acquiring the equipment and redesign planning as 2 2 estimated by the department or eighty percent of the 2 3 actual cost of acquiring the equipment and redesign 2 4 planning, whichever is less. However, the marketer 2 5 shall not receive more than fifty thousand dollars in 2 6 financing for the acquisition of equipment and the 2 7 redesign planning at one business location. 2 8 3. In order to qualify for financing all of the 2 9 following must apply: 2 10 a. The eligible person must be issued a license to 2 11 blend special fuels by the department of revenue and 2 12 finance if the person is required to be issued the 2 13 license pursuant to section 452A.6. 2 14 b. The eligible person has technical expertise 2 15 necessary to produce biodiesel-blended fuel. 2 16 4. a. An eligible person who receives financing 2 17 under this section shall prepare and deliver an annual 2 18 report to the administrative unit of the department of 2 19 natural resources designated by the department to 2 20 analyze issues relating to energy. A copy of the 2 21 report shall be delivered to the department of 2 22 economic development. 2 23 b. The report shall at least include the total 2 24 volume of biodiesel-blended fuel produced and sold 2 25 during the last year by the eligible person at each 2 26 business location installed with equipment financed 2 27 under this section. For each gallon of biodiesel- 2 28 blended fuel produced and sold, the report shall 2 29 indicate its percentage of biodiesel stock as required 2 30 by the department. 2 31 Sec. 3. NEW SECTION. 15E.113A BIODIESEL STOCK 2 32 PROCESSING PROGRAM. 2 33 1. The department shall establish a biodiesel 2 34 stock processing program. The purpose of the program 2 35 is to provide financing to eligible persons engaged in 2 36 the processing of soybean oil into biodiesel stock to 2 37 be used for the production of biodiesel-blended fuel. 2 38 This section does not require that a person eligible 2 39 to receive financing obtain a license to blend special 2 40 fuels as required by the department of revenue and 2 41 finance pursuant to section 452A.6. 2 42 2. A person is eligible to receive financing under 2 43 the biodiesel stock processing program if all of the 2 44 following apply: 2 45 a. The person is a business association organized 2 46 as a cooperative association under chapter 499 or 501, 2 47 or a limited liability company organized under chapter 2 48 490A. Qualified persons as defined in section 10.1 2 49 must hold at least fifty-one percent of the business 2 50 association, including fifty-one percent of each class 3 1 of or groups of members' equity. As used in this 3 2 paragraph, "members' equity" includes but is not 3 3 limited to issued shares, including common stock or 3 4 preferred stock, regardless of distributions, and 3 5 membership interests. However, "members' equity" does 3 6 not include nonvoting interests such as nonvoting 3 7 common stock or nonvoting membership interests. A 3 8 security such as a warrant or option that may be 3 9 converted to voting stock shall be considered members' 3 10 equity. 3 11 b. The person demonstrates financial capability 3 12 and technical expertise necessary for the processing 3 13 of soybean oil into biodiesel stock used to produce 3 14 biodiesel-blended fuel. The department may require 3 15 that the person submit a business plan which includes 3 16 a description of how the financing will be used, and a 3 17 description of how the person expects the business 3 18 association to become profitable. 3 19 3. a. The department may provide financing to an 3 20 eligible person upon review and evaluation of the 3 21 person's application according to procedures adopted 3 22 by the department. Financing shall be in the form of 3 23 a grant, loan, forgivable loan, loan guarantee, cost 3 24 share, indemnification of costs, or any combination of 3 25 such financing deemed appropriate by the department. 3 26 The department shall not approve an application to 3 27 refinance an existing loan. If moneys are repaid to 3 28 the department pursuant to a loan agreement, the 3 29 moneys shall be deposited into the biodiesel fuel 3 30 promotion fund established in section 15E.114. 3 31 b. An eligible person who receives financing under 3 32 this section shall prepare and deliver an annual 3 33 report to the administrative unit of the department of 3 34 natural resources designated by the department to 3 35 analyze issues relating to energy. A copy of the 3 36 report shall be delivered to the department of 3 37 economic development. The report shall at least 3 38 include the total volume of biodiesel stock produced 3 39 during the last year by the eligible person at each 3 40 business location which benefits from the financing. 3 41 Sec. 4. NEW SECTION. 15E.114 BIODIESEL FUEL 3 42 PROMOTION FUND. 3 43 1. A biodiesel fuel promotion fund is created in 3 44 the state treasury under the control of the 3 45 department. 3 46 2. The biodiesel fuel promotion fund shall include 3 47 any moneys appropriated to the fund by the general 3 48 assembly, payments of interest earned, recaptures of 3 49 awards, repayments of moneys loaned or expended under 3 50 the biodiesel stock processing program as provided in 4 1 section 15E.113A, the repossession and sale of assets 4 2 securing a loan made under the program, and any other 4 3 moneys available to and obtained or accepted by the 4 4 department from the federal government or private 4 5 sources for placement in the fund. 4 6 3. The fund shall be used to support the biodiesel 4 7 equipment acquisition program as provided in section 4 8 15E.113 and the biodiesel stock processing program as 4 9 provided in section 15E.113A. 4 10 4. a. The department shall not use more than two 4 11 percent of all moneys deposited and required to be 4 12 deposited in the fund, as calculated on July 1 of each 4 13 year for departmental administrative expenses. 4 14 b. In administering the fund, the department may 4 15 contract, sue and be sued, and adopt administrative 4 16 rules necessary to carry out the provisions of this 4 17 section and sections 15E.113 and 15E.113A. However, 4 18 the department shall not in any manner directly or 4 19 indirectly pledge the credit of the state. 4 20 c. Moneys shall not be transferred, used, 4 21 obligated, appropriated, or otherwise encumbered 4 22 except as provided in this section. 4 23 5. Section 8.33 does not apply to any moneys in 4 24 the fund. Notwithstanding section 12C.7, interest 4 25 earned on moneys in the fund shall be credited to the 4 26 fund. 4 27 6. The fund is subject to an annual audit by the 4 28 auditor of state. Moneys in the fund, which may be 4 29 subject to warrants written by the director of revenue 4 30 and finance, shall be drawn upon the written 4 31 requisition of the director of the department of 4 32 economic development or an authorized representative 4 33 of the director. 4 34 Sec. 5. Section 159A.2, subsections 6 and 8, Code 4 35 2003, are amended to read as follows: 4 36 6. "Renewable fuel" means an energy source at 4 37 least in part derived from an organic compound capable 4 38 of powering machinery, including an engine or power 4 39 plant. A renewable fuel includes but is not limited 4 40 to ethanol-blended orsoydieselbiodiesel-blended 4 41 fuel. 4 42 8."Soydiesel"Biodiesel-blended fuel" means a 4 43 fuel which is a mixture of diesel fuel and processed 4 44 soybean oil, if at leasttwentytwo percent of the 4 45 mixed fuel by volume is processed soybean oil which 4 46 meets American society for testing and materials 4 47 standards. 4 48 Sec. 6. Section 159A.3, subsection 3, paragraph b, 4 49 Code 2003, is amended to read as follows: 4 50 b. The office shall promote the production and 5 1 consumption ofsoydieselbiodiesel-blended fuel in 5 2 this state. 5 3 Sec. 7. Section 307.20, subsection 1, Code 2003, 5 4 is amended to read as follows: 5 5 1. a. Abiodieselbiodiesel-blended fuel 5 6 revolving fund is created in the state treasury. The 5 7biodieselbiodiesel-blended fuel revolving fund shall 5 8 be administered by the department and shall consist of 5 9 moneys received from the sale of EPAct credits banked 5 10 by the departmenton April 19, 2001, moneys 5 11 appropriated by the general assembly, and any other 5 12 moneys obtained or accepted by the department for 5 13 deposit in the fund. 5 14 b. Moneys in the fund are appropriated to and 5 15 shall be used by the department for the purchase of 5 16biodieselbiodiesel-blended fuel for use in department 5 17 vehicles. The department shall submit an annual 5 18 report not later than January 31 to the members of the 5 19 general assembly and the legislative fiscal bureau, of 5 20 the expenditures made from the fund during the 5 21 preceding fiscal year. 5 22 c. Section 8.33 does not apply to any moneys in 5 23 the fund and, notwithstanding section 12C.7, 5 24 subsection 2, earnings or interest on moneys deposited 5 25 in the fund shall be credited to the fund. 5 26 Sec. 8. Section 307.20, subsection 3, paragraph a, 5 27 Code 2003, is amended to read as follows: 5 28 a."Biodiesel"Biodiesel-blended fuel" means 5 29soydiesel fuelthe same as defined in section 159A.2. 5 30 Sec. 9. ELIGIBILITY FOR BIODIESEL EQUIPMENT 5 31 ACQUISITION PROGRAM. The department may provide 5 32 financing to a person who is a marine or pipeline 5 33 terminal or marketer of special fuels under the 5 34 biodiesel equipment acquisition program as provided in 5 35 section 15E.113, and who is otherwise eligible to 5 36 participate in the program if the person has acquired 5 37 equipment or completed redesign planning on or after 5 38 January 1, 2002, but prior to the effective date of 5 39 this Act. 5 40 Sec. 10. DIRECTIONS TO CODE EDITOR. The Code 5 41 editor is directed to transfer section 15E.110 as 5 42 enacted in this Act to division X of chapter 15E and 5 43 rename the division's title. 5 44 Sec. 11. CONTINGENT EFFECTIVENESS OF THIS ACT. 5 45 This Act takes effect only if 2003 Iowa Acts, House 5 46 File 683 is enacted." 5 47 #2. Title page, by striking lines 2 and 3, and 5 48 inserting the following: "financing, and providing 5 49 for the Act's effectiveness." 5 50 6 1 6 2 6 3 DRAKE of Pottawattamie 6 4 HF 688.203 80 6 5 da/sh
Text: H01491 Text: H01493 Text: H01400 - H01499 Text: H Index Bills and Amendments: General Index Bill History: General Index
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