Text: SF02157 Text: SF02159 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 214A.1, Code 2003, is amended to read 1 2 as follows: 1 3 214A.1 DEFINITIONS. 1 4 The following definitions shall apply to the various terms 1 5 used in this chapter: 1 6 1. "A.S.T.M." means the American society for testing and 1 7 materials. 1 82. "Motor vehicle fuel" means a substance or combination1 9of substances which is intended to be or is capable of being1 10used for the purpose of propelling or running by combustion1 11any internal combustion engine and is kept for sale or sold1 12for that purpose. The products commonly known as kerosene and1 13distillate or petroleum products of lower gravity (Baume1 14scale), when not used to propel a motor vehicle or for1 15compounding or combining with a motor vehicle fuel, are exempt1 16from this chapter except as provided in section 214A.2A.1 17 2. "Ethanol blended gasoline" means gasoline containing at 1 18 least ten percent alcohol distilled from cereal grains. 1 19 3. "Motor vehicle" means a self-propelled vehicle that 1 20 operates using gasoline, including but not limited to any of 1 21 the following: 1 22 a. An automobile as defined in section 321.1. 1 23 b. A motor truck as defined in section 321.1. 1 24 c. A commercial motor vehicle as defined in section 1 25 452A.57. 1 26 d. A motorcycle as defined in section 321.1. 1 27 e. Watercraft as defined in section 462A.2. 1 28 f. An off-road vehicle which is a snowmobile or an all- 1 29 terrain vehicle as defined in section 321G.1. 1 30 4. "Motor vehicle fuel" means the same as defined in 1 31 section 214.1. 1 32 5. "Motor vehicle fuel pump" or "pump" means a stationary 1 33 pump located at a service station which is used for measuring 1 34 and dispensing motor vehicle fuel and which is required to be 1 35 licensed by the department pursuant to chapter 214. 2 13.6. "Motor vehicle fuel storage tank" means an 2 2 aboveground or belowground container that is a fixture, used 2 3 to keep an accumulation of motor vehicle fuel. 2 44.7. "MTBE" means methyl tertiary butyl ether. 2 55.8. "Oxygenate octane enhancer" means oxygen-containing 2 6 compounds, including but not limited to alcohols, ethers, or 2 7 ethanol. 2 86.9. "Retail dealer"shall mean and include any person,2 9firm, partnership, association, or corporation who operates,2 10maintains, or conducts, either in person, or by any agent,2 11employee, or servant, any place of business, filling station,2 12pump station, or tank wagon, from which any motor vehicle2 13fuel, as defined herein, is sold or offered for sale, at2 14retail, or to the final or ultimate consumer.means a person 2 15 who operates, maintains, or conducts a service station, either 2 16 in person, or by any agent or an employee. 2 177.10. "Sell" means to sell or to offer for sale. 2 18 11. "Service station" means the location of a for-profit 2 19 or nonprofit business in this state where motor vehicle fuel 2 20 is sold or offered for sale on a retail basis. 2 218.12. "Wholesale dealer"shall mean and include any2 22person, firm, partnership, association, or corporation, other2 23than retail dealers as defined in subsection 3 of this2 24section, who sells, keeps, or holds, for sale, or purchase for2 25the purpose of sale within this state, anymeans a person, 2 26 other than a retail dealer, who provides motor vehicle fuel 2 27 for sale within this state. 2 28 Sec. 2. Section 214A.2, subsection 1, Code Supplement 2 29 2003, is amended to read as follows: 2 30 1. a. Thesecretarydepartment shall adopt rules pursuant 2 31 to chapter 17A for carrying out this chapter. The rules may 2 32 include, but are not limited to, specifications relating to 2 33 motor vehicle fuel or oxygenate octane enhancers, including 2 34 ethanol blended gasoline. 2 35 b. In the interest of uniformity, thesecretarydepartment 3 1 shall adopt by reference or otherwise specifications relating 3 2 to tests and standards for motor vehicle fuel or oxygenate 3 3 octane enhancers,. The specifications shall be based on those 3 4 established by the American society for testing and materials 3 5 (A.S.T.M.), unless thesecretarydepartment determines those 3 6 specifications are inconsistent with this chapter or are not 3 7 appropriate to the conditions which exist in this state. 3 8 Sec. 3. Section 214A.2, subsection 3, Code Supplement 3 9 2003, is amended to read as follows: 3 10 3. a. Gasoline with a mixture of ten percent or more 3 11 ethanol, but not more than thirteen percent, shall be known as 3 12 conventional blend ethanol. 3 13 b. Gasoline with a mixture of more than thirteen percent 3 14 ethanol, but not more than twenty-five percent, shall be known 3 15 as high blend ethanol. For purposes of chapters 323A, 422, 3 16 and 452A, high blend ethanol shall be treated as conventional 3 17 blend ethanol. 3 18 c. Gasoline with a mixture of at least eighty-five percent 3 19 ethanol shall be known as E-85 blended gasoline. However, 3 20 during the period beginning on November 1 and ending on March 3 21 31, gasoline with a mixture of at least seventy percent 3 22 ethanol shall also be known as E-85 blended gasoline. 3 23 Sec. 4. Section 214A.2A, Code 2003, is amended to read as 3 24 follows: 3 25 214A.2A KEROSENELABELINGAND LOW-GRAVITY PETROLEUM. 3 26 1. Fuel which is sold or is kept, offered, or exposed for 3 27 sale as kerosene shall be labeled as kerosene. The label 3 28 shall include the word "kerosene" and a designation as either 3 29 "K1" or "K2", and shall indicate that the kerosene is in 3 30 compliance with the standard specification adopted by the 3 31 A.S.T.M. in specification D-3699 (1982). 3 32 2. Kerosene and distillate or petroleum products of lower 3 33 gravity according to the Baume scale, when not used to propel 3 34 a motor vehicle or compounded or combined with a motor vehicle 3 35 fuel, are exempt from this chapter. 4 1 Sec. 5. Section 214A.16, Code 2003, is amended to read as 4 2 follows: 4 3 214A.16 NOTICE TO PUBLIC OFBLENDED FUEL – DECALTYPES OF 4 4 MOTOR VEHICLE FUEL SOLD AT A PUMP. 4 5 1. If motor vehicle fuel containing a renewable fuel is 4 6 sold from a motor vehicle fuel pump, the pump shall have 4 7 affixed a decal identifying the name of the renewable fuel. 4 8 The decal may be different based on the type of renewable fuel 4 9 used. The design and location of the decal shall be 4 10 prescribed by rules adopted by the department. A decal 4 11 identifying a renewable fuel shall be consistent with 4 12 standards adopted pursuant to section 159A.6. The department 4 13 may approve an application to place a decal in a special 4 14 location on a pump or container or use a decal with special 4 15 lettering or colors, if the decal appears clear and 4 16 conspicuous to the consumer. The application shall be made in 4 17 writing pursuant to procedures adopted by the department. 4 18 2. If gasoline that does not meet the minimum ethanol 4 19 content standards for conventional blend ethanol as specified 4 20 in section 214A.2 is sold from a motor vehicle fuel pump, the 4 21 pump shall have affixed a label. The label shall identify 4 22 that the gasoline does not meet those standards and provide 4 23 notice that its use is restricted under this chapter. The 4 24 design and location of the decal shall be prescribed by rules 4 25 adopted by the department. 4 26 Sec. 6. NEW SECTION. 214A.18A PROHIBITION – GASOLINE 4 27 FUEL STANDARD. 4 28 On and after January 1, 2007, except as provided in this 4 29 section, a retail dealer shall not sell gasoline in this state 4 30 that does not meet the minimum ethanol content standards for 4 31 conventional blend ethanol as specified in section 214A.2. 4 32 1. This section shall not apply to a retail dealer that 4 33 sells gasoline used to operate any of the following: 4 34 a. An aircraft as defined in section 328.1. 4 35 b. A motor vehicle used exclusively for motor sports, 5 1 including on a raceway, if the motor vehicle cannot operate on 5 2 a highway as provided in chapter 321 or rules adopted by the 5 3 state department of transportation. 5 4 c. A motor vehicle operated by using diesel fuel. 5 5 2. A retail dealer may sell gasoline that does not meet 5 6 the minimum ethanol content standards for conventional blend 5 7 ethanol as specified in section 214A.2 if all of the following 5 8 apply: 5 9 a. The gasoline is premium grade unleaded gasoline as 5 10 provided in section 214A.2. 5 11 b. The gasoline is sold exclusively for the operation of 5 12 one of the following: 5 13 (1) A motorcycle as defined in section 321.1. 5 14 (2) An antique vehicle registered under section 321.115. 5 15 (3) A snowmobile as defined in section 321G.1. 5 16 (4) An all-terrain vehicle as defined in section 321G.1. 5 17 (5) Watercraft as defined in section 462A.2. 5 18 (6) A small motor vehicle such as a lawnmower. 5 19 c. The retail dealer's service station does not use more 5 20 than one motor vehicle fuel pump to sell the gasoline at any 5 21 one time. 5 22 Sec. 7. Section 422.11C, Code Supplement 2003, is amended 5 23 by adding the following new subsection: 5 24 NEW SUBSECTION. 6. This section is repealed on January 1, 5 25 2009. 5 26 Sec. 8. NEW SECTION. 422.11J E-85 ETHANOL BLENDED 5 27 GASOLINE MOTOR VEHICLE PURCHASE TAX CREDIT. 5 28 1. As used in this section: 5 29 a. "E-85 ethanol blended gasoline" means E-85 ethanol 5 30 blended gasoline as described section 214A.2. 5 31 b. "Motor vehicle" means a new motor vehicle as new motor 5 32 vehicle is defined in section 321.1. 5 33 2. The taxes imposed under this division, less the credits 5 34 allowed under sections 422.12 and 422.12B, shall be reduced by 5 35 the E-85 ethanol blended gasoline motor vehicle purchase tax 6 1 credit for the tax year in which the taxpayer purchases a 6 2 motor vehicle powered by using E-85 ethanol blended gasoline 6 3 from a retail seller of motor vehicles. The tax credit equals 6 4 the lesser of one hundred dollars or the amount paid by the 6 5 taxpayer less any discounts and trade-ins. 6 6 3. a. Any credit in excess of the tax liability shall be 6 7 refunded. In lieu of claiming a refund, a taxpayer may elect 6 8 to have the overpayment shown on the taxpayer's final, 6 9 completed return credited to the tax liability for the 6 10 following tax year. 6 11 b. Married taxpayers who have filed joint federal returns 6 12 electing to file separate returns or to file separately on a 6 13 combined return form must determine the E-85 ethanol blended 6 14 gasoline motor vehicle purchase tax credit based upon their 6 15 combined net income and allocate the total credit amount to 6 16 each spouse in the proportion that each spouse's respective 6 17 net income bears to the total combined net income. 6 18 Nonresidents or part-year residents of Iowa must determine 6 19 their E-85 ethanol blended gasoline motor vehicle purchase tax 6 20 credit in the ratio of their Iowa-source net income to their 6 21 all-source net income. Nonresidents or part-year residents 6 22 who are married and elect to file separate returns or to file 6 23 separately on a combined return form must allocate the E-85 6 24 ethanol blended gasoline motor vehicle purchase tax credit 6 25 between the spouses in the ratio of each spouse's Iowa-source 6 26 net income to the combined Iowa-source net income of the 6 27 taxpayers. An individual may claim the E-85 ethanol blended 6 28 gasoline motor vehicle purchase tax credit allowed a 6 29 partnership, S corporation, limited liability company, or 6 30 estate or trust electing to have the income taxed directly to 6 31 the individual. The amount claimed by the individual shall be 6 32 based upon the pro rata share of the individual's earnings of 6 33 the partnership, S corporation, limited liability company, or 6 34 estate or trust. 6 35 4. This section is repealed on January 1, 2009. 7 1 Sec. 9. Section 422.33, subsection 11, Code Supplement 7 2 2003, is amended by adding the following new paragraph: 7 3 NEW PARAGRAPH. e. This subsection is repealed on January 7 4 1, 2009. 7 5 Sec. 10. Section 452A.3, subsection 1, unnumbered 7 6 paragraph 1, Code 2003, is amended to read as follows: 7 7 Except as otherwise provided in this section and in this 7 8 division, untilJune 30, 2007December 31, 2007, this 7 9 subsection shall apply to the excise tax imposed on each 7 10 gallon of motor fuel used for any purpose for the privilege of 7 11 operating motor vehicles in this state. 7 12 Sec. 11. Section 452A.3, subsection 1A, Code 2003, is 7 13 amended to read as follows: 7 14 1A. Except as otherwise provided in this section and in 7 15 this division, on and afterJune 30, 2007January 1, 2007, an 7 16 excise tax of twenty cents is imposed on each gallon of motor 7 17 fuel used for any purpose for the privilege of operating motor 7 18 vehicles in this state. 7 19 Sec. 12. Section 455G.3, Code Supplement 2003, is amended 7 20 by adding the following new subsection: 7 21 NEW SUBSECTION. 6. a. There is appropriated from the 7 22 unassigned revenue fund administered by the Iowa comprehensive 7 23 petroleum underground storage tank fund board to support the 7 24 ethanol blended gasoline storage tank incentive program as 7 25 provided in section 455G.23, one hundred fifty thousand 7 26 dollars for each fiscal year for the fiscal period beginning 7 27 on July 1, 2004, and ending June 30, 2009. The board shall 7 28 cooperate with the department of natural resources in awarding 7 29 moneys under the program. 7 30 b. This subsection is repealed on July 1, 2009. 7 31 Sec. 13. NEW SECTION. 455G.23 E-85 ETHANOL BLENDED 7 32 GASOLINE STORAGE TANK INCENTIVE PROGRAM. 7 33 1. As used in this section: 7 34 a. "E-85 ethanol blended gasoline" means E-85 ethanol 7 35 blended gasoline as described in section 214A.2. 8 1 b. "Motor vehicle fuel" means the same as defined in 8 2 section 214A.1. 8 3 c. "Motor vehicle fuel pump" or "pump" means the same as 8 4 defined in section 214.1. 8 5 d. "Motor vehicle fuel storage tank" or "tank" means a 8 6 container that is a fixture on a site, used to keep an 8 7 accumulation of motor vehicle fuel. 8 8 e. "Site" means the premises where a motor vehicle fuel 8 9 storage tank is located, if the tank is used to serve a 8 10 connecting motor vehicle fuel pump where motor vehicle fuel is 8 11 dispensed to customers on a retail basis. 8 12 2. The board shall establish an E-85 ethanol blended 8 13 gasoline storage tank incentive program to do any of the 8 14 following: 8 15 a. Reimburse the owner or operator of a site for costs 8 16 necessary to install, replace, or convert an aboveground motor 8 17 vehicle fuel storage tank for use in storing and dispensing E- 8 18 85 ethanol blended gasoline. 8 19 b. Reimburse the owner or operator of a site for costs 8 20 necessary to convert a belowground motor vehicle fuel storage 8 21 tank for use in storing and dispensing E-85 ethanol blended 8 22 gasoline. 8 23 3. An owner or operator shall not be reimbursed more than 8 24 seven thousand five hundred dollars for each tank that is 8 25 installed, replaced, or converted under the program. In order 8 26 to be eligible for reimbursement, all of the following must 8 27 apply: 8 28 a. The motor vehicle fuel storage tank must be located at 8 29 a site. 8 30 b. The site must comply with federal and state standards 8 31 governing new or upgraded motor vehicle fuel storage tanks 8 32 used to store and dispense motor vehicle fuel, including E-85 8 33 ethanol blended gasoline. 8 34 c. The owner or operator of the site must apply to the 8 35 board in a manner and according to procedures required by the 9 1 board. The application must contain all information required 9 2 by the board and shall at least include all of the following: 9 3 (1) The name of the owner or operator and the address of 9 4 the site. 9 5 (2) A detailed description of the motor vehicle fuel 9 6 storage tank to be installed, replaced, or converted on the 9 7 site, including but not limited to the model number of the 9 8 tank if available. 9 9 (3) A statement that the installation, replacement, or 9 10 conversion is necessary to store and dispense E-85 ethanol 9 11 blended gasoline. 9 12 4. A site classified as a no further action site pursuant 9 13 to a certificate issued by the department of natural resources 9 14 under section 455B.474 shall retain its classification 9 15 following modifications necessary to store and dispense E-85 9 16 ethanol blended gasoline, and the owner or operator shall not 9 17 be required to perform a new site assessment unless the site 9 18 causes a clear, present, and impending danger to the public 9 19 health or the environment. 9 20 5. This section is repealed on July 1, 2009. 9 21 Sec. 14. RETROACTIVE APPLICATION – EFFECTIVE DATE. 9 22 Section 422.11J as enacted in this Act takes effect upon 9 23 enactment and applies retroactively to tax years beginning on 9 24 or after January 1, 2004. 9 25 EXPLANATION 9 26 BACKGROUND. In 2001 the general assembly enacted House 9 27 File 716 (2001 Iowa Acts, chapter 123), which promoted the 9 28 production and consumption of ethanol. That Act created 9 29 provisions providing a tax credit for retail dealers of 9 30 gasoline who sell ethanol blended gasoline (motor fuel 9 31 containing at least 10 percent alcohol). The tax credit 9 32 applies to both taxpayers filing as individuals under Code 9 33 section 422.11C and businesses under Code section 422.33. 9 34 Specifically, the Act provided a tax credit for a retail 9 35 dealer who operates at least one service station at which more 10 1 than 60 percent of the total gallons of gasoline sold by the 10 2 retail dealer are ethanol blended gasoline. The Act also 10 3 amended provisions in Code section 452A.3 that provide for an 10 4 excise tax on each gallon of motor fuel sold in the state. 10 5 Under the Act, until June 30, 2007, the rates for unblended 10 6 and blended motor fuel are adjusted each year based on the 10 7 number of gallons of ethanol blended gasoline that are 10 8 distributed in this state as expressed as a percentage of the 10 9 total number of gallons of motor fuel distributed in this 10 10 state. 10 11 ETHANOL REQUIREMENTS. This bill amends Code chapter 214A, 10 12 which provides authority to the department of agriculture and 10 13 land stewardship to regulate the sale of motor vehicle fuel. 10 14 The bill amends Code section 214A.2, which provides for 10 15 different types of gasoline, including gasoline that contains 10 16 a blend of gasoline with 10 percent or more ethanol referred 10 17 to as "conventional blend ethanol". It also provides for E-85 10 18 blended gasoline, which contains a mixture of at least between 10 19 70 and 85 percent ethanol based on whether it is the winter 10 20 season. 10 21 The bill prohibits retail dealers of gasoline from selling 10 22 gasoline that does not at least meet the minimum ethanol 10 23 content specifications for conventional blend ethanol on or 10 24 after January 1, 2007, but provides a number of exceptions. 10 25 The prohibition does not apply to gasoline used to operate 10 26 aircraft, motor vehicles involved exclusively in motor sports 10 27 events, or motor vehicles operating using diesel fuel. The 10 28 requirement also does not apply to selling gasoline for use in 10 29 certain vehicles such as motorcycles, antique vehicles, 10 30 snowmobiles, all-terrain vehicles, watercraft, and small motor 10 31 vehicles. The bill also provides that all such gasoline must 10 32 be premium-grade unleaded gasoline. The bill prohibits a 10 33 retail dealer from using more than one pump to dispense the 10 34 gasoline, and the pump must be labeled, notifying the public 10 35 of its restricted use. Code section 214A.11 provides that any 11 1 person violating the provisions of Code chapter 214A is guilty 11 2 of a simple misdemeanor. A simple misdemeanor is punishable 11 3 by confinement for no more than 30 days or a fine of at least 11 4 $50, but not more than $500, or by both. 11 5 TAXES. The bill eliminates the tax credit provisions in 11 6 Code sections 422.11C and 422.33 on July 1, 2009. 11 7 The bill also amends provisions in Code section 452A.3 that 11 8 provide for an adjustable excise tax on gallons of gasoline 11 9 sold in the state based on ethanol blended gasoline purchased 11 10 in this state. The bill eliminates that formula on December 11 11 31, 2007. After that date, a general rate of 20 cents per 11 12 gallon is imposed. 11 13 E-85 ETHANOL BLENDED GASOLINE MOTOR VEHICLE PURCHASE TAX 11 14 CREDIT. The bill provides an income tax credit for persons 11 15 purchasing a motor vehicle which operates using E-85 ethanol 11 16 blended gasoline. The tax credit equals the lesser of $100 or 11 17 the amount paid by the taxpayer less any discounts and trade- 11 18 ins. The tax credit is repealed on January 1, 2009. 11 19 E-85 STORAGE TANK INCENTIVE PROGRAM. The bill establishes 11 20 an E-85 storage tank incentive program administered by the 11 21 Iowa comprehensive petroleum underground storage tank fund 11 22 board. The purpose of the program is to reimburse the owner 11 23 or operator of a site for costs necessary to install, replace, 11 24 or convert a motor vehicle fuel storage tank for use in 11 25 storing and dispensing motor vehicle fuel containing E-85 11 26 blended gasoline. An owner or operator cannot be reimbursed 11 27 more than $7,500 for each tank that is installed, replaced, or 11 28 converted under the program. The bill provides eligibility 11 29 and application requirements. The bill provides that a site 11 30 classified as a no further action site pursuant to a 11 31 certificate issued by the department of natural resources 11 32 retains its classification following modifications necessary 11 33 to store and dispense E-85 blended gasoline. Moneys used to 11 34 support the fund derive from the unassigned revenue fund 11 35 administered by the board. The bill provides procedures for 12 1 the expenditure of moneys from the fund. The bill eliminates 12 2 the program on July 1, 2009. 12 3 LSB 6357SV 80 12 4 da/gg/14
Text: SF02157 Text: SF02159 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
© 2004 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: Thu Mar 4 03:30:00 CST 2004
URL: /DOCS/GA/80GA/Legislation/SF/02100/SF02158/040223.html
jhf