Senate Amendment 5180


PAG LIN




     1  1    Amend Senate File 2383 as follows:
     1  2 #1.  By striking everything after the enacting
     1  3 clause and inserting the following:
     1  4                       <DIVISION I
     1  5        ESTABLISHMENT OF RENEWABLE FUEL STANDARDS
     1  6    Section 1.  PETROLEUM REPLACEMENT GOAL.  It is the
     1  7 goal of this state that by January 1, 2025, biofuel
     1  8 will replace twenty=five percent of all petroleum used
     1  9 in the formulation of gasoline.
     1 10    Sec. 2.  Section 214A.1, Code 2005, is amended by
     1 11 adding the following new subsections:
     1 12    NEW SUBSECTION.  0A.  "Advertise" means to present
     1 13 a commercial message in any medium, including but not
     1 14 limited to print, radio, television, sign, display,
     1 15 label, tag, or articulation.
     1 16    NEW SUBSECTION.  1A.  "Biodiesel" means a renewable
     1 17 fuel comprised of mono=alkyl esters of long=chain
     1 18 fatty acids derived from vegetable oils or animal
     1 19 fats, which meets the standards provided in section
     1 20 214A.2.
     1 21    NEW SUBSECTION.  1B.  "Biodiesel blended fuel"
     1 22 means a blend of biodiesel with petroleum=based diesel
     1 23 fuel which meets the standards, including separately
     1 24 the standard for its biodiesel constituent, provided
     1 25 in section 214A.2.
     1 26    NEW SUBSECTION.  1C.  "Biofuel" means ethanol or
     1 27 biodiesel.
     1 28    NEW SUBSECTION.  1D.  "Committee" means the
     1 29 renewable fuels and coproducts advisory committee
     1 30 established pursuant to section 159A.4.
     1 31    NEW SUBSECTION.  1E.  "Dealer" means a wholesale
     1 32 dealer or retail dealer.
     1 33    NEW SUBSECTION.  1F.  "Diesel fuel" means any
     1 34 liquid, other than gasoline, which is suitable for use
     1 35 as a fuel in a diesel fuel powered engine, including
     1 36 but not limited to a motor vehicle, equipment as
     1 37 defined in section 322F.1, or a train.  Diesel fuel
     1 38 includes a liquid product prepared, advertised,
     1 39 offered for sale, or sold for use as, or commonly and
     1 40 commercially used as, motor fuel for use in an
     1 41 internal combustion engine and ignited by pressure
     1 42 without the presence of an electric spark.  Diesel
     1 43 fuel must meet the standards provided in section
     1 44 214A.2.
     1 45    NEW SUBSECTION.  1G.  "E=85 gasoline" means ethanol
     1 46 blended gasoline formulated with a minimum percentage
     1 47 of between seventy and eighty=five percent by volume
     1 48 of ethanol, if the formulation meets the standards
     1 49 provided in section 214A.2.
     1 50    NEW SUBSECTION.  1H.  "Ethanol" means ethyl alcohol
     2  1 that is to be blended with gasoline if it meets the
     2  2 standards provided in section 214A.2.
     2  3    NEW SUBSECTION.  1I.  "Ethanol blended gasoline"
     2  4 means a formulation of gasoline which is a liquid
     2  5 petroleum product blended with ethanol, if the
     2  6 formulation meets the standards provided in section
     2  7 214A.2.
     2  8    NEW SUBSECTION.  1J.  "Gasoline" means any liquid
     2  9 product prepared, advertised, offered for sale or sold
     2 10 for use as, or commonly and commercially used as,
     2 11 motor fuel for use in a spark=ignition, internal
     2 12 combustion engine, and which meets the specifications
     2 13 provided in section 214A.2.
     2 14    NEW SUBSECTION.  2A.  "Motor fuel pump" means the
     2 15 same as defined in section 214.1.
     2 16    NEW SUBSECTION.  5A.  "Renewable fuel" means a
     2 17 combustible liquid derived from grain starch, oilseed,
     2 18 animal fat, or other biomass; or produced from a
     2 19 biogas source, including any nonfossilized decaying
     2 20 organic matter which is capable of powering machinery,
     2 21 including but not limited to an engine or power plant.
     2 22 Renewable fuel includes but is not limited to biofuel,
     2 23 ethanol blended gasoline, or biodiesel blended fuel
     2 24 meeting the standards provided in section 214A.2.
     2 25    NEW SUBSECTION.  6A.  "Retail motor fuel site"
     2 26 means a geographic location in this state where a
     2 27 retail dealer sells and dispenses motor fuel on a
     2 28 retail basis.
     2 29    Sec. 3.  Section 214A.1, subsection 2, Code 2005,
     2 30 is amended to read as follows:
     2 31    2.  "Motor vehicle fuel" means a substance or
     2 32 combination of substances which is intended to be or
     2 33 is capable of being used for the purpose of propelling
     2 34 or running by combustion any of operating an internal
     2 35 combustion engine, including but not limited to a
     2 36 motor vehicle, and is kept for sale or sold for that
     2 37 purpose.  The products commonly known as kerosene and
     2 38 distillate or petroleum products of lower gravity
     2 39 (Baume scale), when not used to propel a motor vehicle
     2 40 or for compounding or combining with a motor vehicle
     2 41 fuel, are exempt from this chapter except as provided
     2 42 in section 214A.2A.
     2 43    Sec. 4.  Section 214A.1, subsections 6 and 8, Code
     2 44 2005, are amended by striking the subsections and
     2 45 inserting in lieu thereof the following:
     2 46    6.  "Retail dealer" means a person engaged in the
     2 47 business of storing and dispensing motor fuel from a
     2 48 motor fuel pump for sale on a retail basis, regardless
     2 49 of whether the motor fuel pump is located at a retail
     2 50 motor fuel site.
     3  1    8.  "Wholesale dealer" means a person, other than a
     3  2 retail dealer, who operates a place of business where
     3  3 motor fuel is stored and dispensed for sale in this
     3  4 state, including a permanent or mobile location.
     3  5    Sec. 5.  Section 214A.2, subsection 1, Code 2005,
     3  6 is amended to read as follows:
     3  7    1.  The secretary department shall adopt rules
     3  8 pursuant to chapter 17A for carrying out this chapter.
     3  9 The rules may include, but are not limited to,
     3 10 specifications relating to motor fuel or oxygenate
     3 11 octane enhancers, including but not limited to
     3 12 renewable fuel such as ethanol blended gasoline,
     3 13 biodiesel, biodiesel blended fuel, and motor fuel
     3 14 components such as an oxygenate.  In the interest of
     3 15 uniformity, the secretary department shall adopt by
     3 16 reference or otherwise other specifications relating
     3 17 to tests and standards for motor fuel or oxygenate
     3 18 octane enhancers including renewable fuel and motor
     3 19 fuel components, established by the United States
     3 20 environmental protection agency and A.S.T.M. (American
     3 21 society for testing and materials) international,
     3 22 unless the secretary determines those specifications
     3 23 are inconsistent with this chapter or are not
     3 24 appropriate to the conditions which exist in this
     3 25 state.  In adopting standards for a renewable fuel,
     3 26 the department shall consult with the committee.
     3 27    Sec. 6.  Section 214A.2, Code 2005, is amended by
     3 28 adding the following new subsection:
     3 29    NEW SUBSECTION.  2A.  a.  For motor fuel advertised
     3 30 for sale or sold as gasoline by a dealer, the motor
     3 31 fuel must meet registration requirements for that type
     3 32 of motor fuel and its additives established by the
     3 33 United States environmental protection agency
     3 34 including as provided under 42 U.S.C. } 7545.
     3 35    b.  If the motor fuel is advertised for sale or
     3 36 sold as ethanol blended gasoline, the motor fuel must
     3 37 comply with departmental standards which shall comply
     3 38 with specifications for ethanol blended gasoline
     3 39 adopted by A.S.T.M.  international.  For ethanol
     3 40 blended gasoline all of the following shall apply:
     3 41    (1)  Ethanol must be agriculturally derived, having
     3 42 at least one hundred ninety proof, be denatured as
     3 43 required by federal law including 27 C.F.R., pts. 20
     3 44 and 21, and conform to A.S.T.M. international
     3 45 specification D 4806=95b or a successor A.S.T.M.
     3 46 international specification as established by rules
     3 47 adopted by the department.
     3 48    (2)  For ethanol blended gasoline other than E=85
     3 49 gasoline, at least ten percent of the gasoline by
     3 50 volume must be ethanol.
     4  1    (3)  For E=85 gasoline all of the following must
     4  2 apply:
     4  3    (a)  From the first day of April until the last day
     4  4 of October, at least eighty=five percent of the
     4  5 gasoline by volume must be ethanol.
     4  6    (b)  From the first day of November until the last
     4  7 day of March, at least seventy percent of the gasoline
     4  8 by volume must be ethanol.
     4  9    (c)  E=85 gasoline must conform to A.S.T.M.
     4 10 international specification D 5798=99 or a successor
     4 11 A.S.T.M. international specification as established by
     4 12 rules adopted by the department.
     4 13    (4)  In calculating the percentage of ethanol
     4 14 required for the formulation of ethanol blended
     4 15 gasoline, a percentage of a denaturant or contaminants
     4 16 permitted in the ethanol blended gasoline may be
     4 17 excluded as provided by rules adopted by the
     4 18 department.
     4 19    Sec. 7.  Section 214A.2, subsection 3, Code 2005,
     4 20 is amended by striking the subsection and inserting in
     4 21 lieu thereof the following:
     4 22    3.  a.  For motor fuel advertised for sale or sold
     4 23 as biodiesel or biodiesel blended fuel by a dealer,
     4 24 the motor fuel must meet registration requirements for
     4 25 that type of motor fuel and its additives established
     4 26 by the United States environmental protection agency
     4 27 including as provided under 42 U.S.C. } 7545.
     4 28    b.  The motor fuel must comply with departmental
     4 29 standards which shall comply with specifications
     4 30 adopted by A.S.T.M.  international for biodiesel or
     4 31 biodiesel blended fuel, to every extent applicable as
     4 32 determined by rules adopted by the department.
     4 33    (1)  Biodiesel must conform to A.S.T.M.
     4 34 international specification D 6751 or a successor
     4 35 A.S.T.M. international specification as established by
     4 36 rules adopted by the department.  The specification
     4 37 shall apply to biodiesel before it leaves its place of
     4 38 manufacture.
     4 39    (2)  At least one percent of biodiesel blended fuel
     4 40 by volume must be biodiesel.
     4 41    (3)  The biodiesel may be blended with diesel fuel
     4 42 whose sulfur, aromatic, lubricity, and cetane levels
     4 43 do not comply with A.S.T.M. international
     4 44 specification D 975 grades 1=D or 2=D, low sulfur 1=D
     4 45 or 2=D, or ultra=low sulfur grades 1=D or 2D, provided
     4 46 that the finished biodiesel blended fuel meets
     4 47 A.S.T.M. international specification D 975 or a
     4 48 successor A.S.T.M. international specification as
     4 49 established by rules adopted by the department.
     4 50    Sec. 8.  Section 214A.2A, Code 2005, is amended to
     5  1 read as follows:
     5  2    214A.2A  KEROSENE LABELING.
     5  3    1.  Fuel which is sold or is kept, offered, or
     5  4 exposed for sale as kerosene shall be labeled as
     5  5 kerosene.  The label shall include the word "kerosene"
     5  6 and a designation as either "K1" or "K2", and shall
     5  7 indicate that the kerosene is in compliance with the
     5  8 standard specification adopted by the A.S.T.M. in
     5  9 international specification D=3699 (1982).
     5 10    2.  A product commonly known as kerosene and a
     5 11 distillate or a petroleum product of lower gravity
     5 12 (Baume scale), when not used to propel a motor vehicle
     5 13 or for compounding or combining with a motor fuel, are
     5 14 exempt from this chapter except as provided in this
     5 15 section.
     5 16    Sec. 9.  Section 214A.3, Code 2005, is amended by
     5 17 striking the section and inserting in lieu thereof the
     5 18 following:
     5 19    214A.3  ADVERTISING.
     5 20    1.  For all motor fuel, a person shall not
     5 21 knowingly do any of the following:
     5 22    a.  Advertise the sale of any motor fuel which does
     5 23 not meet the standards provided in section 214A.2.
     5 24    b.  Falsely advertise the quality or kind of any
     5 25 motor fuel or a component of motor fuel.
     5 26    c.  Add a coloring matter to the motor fuel which
     5 27 misleads a person who is purchasing the motor fuel
     5 28 about the quality of the motor fuel.
     5 29    2.  For a renewable fuel, all of the following
     5 30 applies:
     5 31    a.  A person shall not knowingly falsely advertise
     5 32 that a motor fuel is a renewable fuel or is not a
     5 33 renewable fuel.
     5 34    b.  (1)  Ethanol blended gasoline sold by a dealer
     5 35 shall be designated E=xx where "xx" is the volume
     5 36 percent of ethanol in the ethanol blended gasoline.  A
     5 37 person shall not knowingly falsely advertise ethanol
     5 38 blended gasoline by using an inaccurate designation in
     5 39 violation of this subparagraph.
     5 40    (2)  Biodiesel blended fuel shall be designated B=
     5 41 xx where "xx" is the volume percent of biodiesel in
     5 42 the biodiesel blended fuel.  A person shall not
     5 43 knowingly falsely advertise biodiesel blended fuel by
     5 44 using an inaccurate designation in violation of this
     5 45 subparagraph.
     5 46    Sec. 10.  Section 214A.8, Code 2005, is amended to
     5 47 read as follows:
     5 48    214A.8  PROHIBITION.
     5 49    A retail or wholesale dealer defined in this
     5 50 chapter shall not knowingly sell any motor vehicle
     6  1 fuel or an oxygenate octane enhancer in the state that
     6  2 fails to meet applicable standards and specifications
     6  3 set out in this chapter as provided in section 214A.2.
     6  4    Sec. 11.  Section 214A.11, Code 2005, is amended to
     6  5 read as follows:
     6  6    214A.11  VIOLATIONS PENALTY.
     6  7    Any A person violating the provisions who knowingly
     6  8 violates a provision of this chapter shall be is
     6  9 guilty of a simple serious misdemeanor.
     6 10                       DIVISION II
     6 11                RENEWABLE FUEL AND ENERGY
     6 12    Sec. 12.  Section 15.103, subsection 1, paragraph
     6 13 b, subparagraph (7), Code Supplement 2005, is amended
     6 14 to read as follows:
     6 15    (7)  Economics or alternative and renewable energy
     6 16 including the alternative and renewable energy sectors
     6 17 listed in section 476.42, subsection 1, paragraph "a".
     6 18    Sec. 13.  Section 15E.61, unnumbered paragraph 1,
     6 19 Code 2005, is amended to read as follows:
     6 20    The general assembly finds the following:
     6 21 Fundamental changes have occurred in national and
     6 22 international financial markets and in the financial
     6 23 markets of this state.  A critical shortage of seed
     6 24 and venture capital resources exists in the state, and
     6 25 such shortage is impairing the growth of commerce in
     6 26 the state.  A need exists to increase the availability
     6 27 of venture equity capital for emerging, expanding, and
     6 28 restructuring enterprises in Iowa, including, without
     6 29 limitation, enterprises in the life sciences, advanced
     6 30 manufacturing, information technology, alternative and
     6 31 renewable energy including the alternative and
     6 32 renewable energy sectors listed in section 476.42,
     6 33 subsection 1, paragraph "a", and value=added
     6 34 agriculture areas.  Such investments will create jobs
     6 35 for Iowans and will help to diversify the state's
     6 36 economic base.
     6 37    Sec. 14.  Section 15E.223, subsection 4, Code 2005,
     6 38 is amended to read as follows:
     6 39    4.  "Targeted industry business" means an existing
     6 40 or proposed business entity, including an emerging
     6 41 small business or qualified business which is operated
     6 42 for profit and which has a primary business purpose of
     6 43 doing business in at least one of the targeted
     6 44 industries designated by the department which include
     6 45 life sciences, software and information technology,
     6 46 advanced manufacturing, value=added agriculture,
     6 47 alternative and renewable energy including the
     6 48 alternative and renewable energy sectors listed in
     6 49 section 476.42, subsection 1, paragraph "a", and any
     6 50 other industry designated as a targeted industry by
     7  1 the department.
     7  2    Sec. 15.  Section 15E.231, subsection 1, Code
     7  3 Supplement 2005, is amended by adding the following
     7  4 new paragraph:
     7  5    NEW PARAGRAPH.  h.  Development of the alternative
     7  6 and renewable energy sector.
     7  7    Sec. 16.  Section 15E.351, subsection 1, Code
     7  8 Supplement 2005, is amended to read as follows:
     7  9    1.  The department shall establish and administer a
     7 10 business accelerator program to provide financial
     7 11 assistance for the establishment and operation of a
     7 12 business accelerator for technology=based, value=added
     7 13 agricultural, information solutions, alternative and
     7 14 renewable energy including the alternative and
     7 15 renewable energy sectors listed in section 476.42,
     7 16 subsection 1, paragraph "a", or advanced manufacturing
     7 17 start=up businesses or for a satellite of an existing
     7 18 business accelerator.  The program shall be designed
     7 19 to foster the accelerated growth of new and existing
     7 20 businesses through the provision of technical
     7 21 assistance.  The department shall use moneys
     7 22 appropriated to the department from the grow Iowa
     7 23 values fund pursuant to section 15G.111, subsection 1,
     7 24 subject to the approval of the economic development
     7 25 board, to provide financial assistance under this
     7 26 section.
     7 27    Sec. 17.  Section 260C.18A, subsection 2,
     7 28 unnumbered paragraph 1, Code Supplement 2005, is
     7 29 amended to read as follows:
     7 30    Moneys deposited in the funds and disbursed to
     7 31 community colleges for a fiscal year shall be expended
     7 32 for the following purposes, provided seventy percent
     7 33 of the moneys shall be used on projects in the areas
     7 34 of advanced manufacturing, information technology and
     7 35 insurance, alternative and renewable energy including
     7 36 the alternative and renewable energy sectors listed in
     7 37 section 476.42, subsection 1, paragraph "a", and life
     7 38 sciences which include the areas of biotechnology,
     7 39 health care technology, and nursing care technology:
     7 40    Sec. 18.  Section 323A.1, Code 2005, is amended by
     7 41 adding the following new subsections:
     7 42    NEW SUBSECTION.  0A.  "E=85 gasoline" means the
     7 43 same as defined in section 214A.1.
     7 44    NEW SUBSECTION.  0B.  "Ethanol blended gasoline"
     7 45 means the same as defined in section 214A.1.
     7 46    Sec. 19.  Section 323A.1, subsection 4, Code 2005,
     7 47 is amended to read as follows:
     7 48    4.  "Motor fuel" means gasoline or diesel fuel the
     7 49 same as motor fuel as defined in section 214A.1, which
     7 50 is of a type distributed for use as a fuel in self=
     8  1 propelled vehicles designed primarily for use on
     8  2 public streets, roads, and highways.
     8  3    Sec. 20.  Section 323A.2, subsection 1, paragraph
     8  4 a, Code 2005, is amended to read as follows:
     8  5    a.  At least forty=eight hours prior to entering
     8  6 into an agreement to purchase motor fuel from another
     8  7 source, the franchisee has requested delivery of motor
     8  8 fuel from the franchisor and the requested motor fuel
     8  9 has not been delivered and the franchisor has given
     8 10 the franchisee notice that the franchisor is unable to
     8 11 provide the requested motor fuel, or prior to entering
     8 12 into an agreement the franchisor has stated to the
     8 13 franchisee that the requested motor fuel will not be
     8 14 delivered.  The request to the franchisor for delivery
     8 15 shall be for a type of fuel normally provided by the
     8 16 franchisor to the franchisee and for a quantity of
     8 17 fuel not exceeding the average amount sold by the
     8 18 franchisee in one week, based upon average weekly
     8 19 sales in the three months preceding the request,
     8 20 except that this provision shall not restrict a
     8 21 franchisee from purchasing ethanol blended gasoline
     8 22 from a source other than the franchisor or limit the
     8 23 quantity to be purchased when the franchisor does not
     8 24 normally supply the franchisee with ethanol blended
     8 25 gasoline.  A franchisee may also purchase E=85
     8 26 gasoline as provided in section 323A.2A.
     8 27    Sec. 21.  NEW SECTION.  323A.2A  PURCHASE OF E=85
     8 28 GASOLINE FROM OTHER SOURCE.
     8 29    1.  a.  When on and after the effective date of
     8 30 this section of this Act, a franchise is entered into
     8 31 or renewed, the franchisor shall provide for the
     8 32 delivery of volumes of E=85 gasoline at times demanded
     8 33 by the franchisee or shall allow the franchisee to
     8 34 purchase those volumes of E=85 gasoline at those times
     8 35 from another source.
     8 36    b.  If a franchise is in effect on the effective
     8 37 date of this section of this Act and does not have an
     8 38 expiration date, the franchisor shall provide for the
     8 39 delivery of volumes of E=85 gasoline at times demanded
     8 40 by the franchisee or shall allow the franchisee to
     8 41 purchase those volumes of E=85 gasoline at those times
     8 42 from another source.
     8 43    2.  If the franchisee sells E=85 gasoline delivered
     8 44 from a source other than the franchisor, the
     8 45 franchisee shall prominently post a sign disclosing
     8 46 this fact to the public on each motor fuel pump used
     8 47 for dispensing the E=85 gasoline.  The size of the
     8 48 sign shall not be less than eight inches by ten inches
     8 49 and the letters on the sign shall be at least three
     8 50 inches in height.
     9  1    3.  A franchisee who sells E=85 gasoline delivered
     9  2 from a source other than the franchisor shall also
     9  3 fully indemnify the franchisor against any claims
     9  4 asserted by a user on which the claimant prevails and
     9  5 in which the court determines that E=85 gasoline not
     9  6 acquired from the franchisor was the proximate cause
     9  7 of the injury.
     9  8    4.  a.  A purchase of E=85 gasoline in accordance
     9  9 with this section is not good cause for the
     9 10 termination of a franchise.
     9 11    b.  A term of a franchise that is inconsistent with
     9 12 this section is void and unenforceable.
     9 13                     SUBCHAPTER III
     9 14              RENEWABLE FUEL INFRASTRUCTURE
     9 15    Sec. 22.  NEW SECTION.  455G.31  E=85 GASOLINE
     9 16 STORAGE AND DISPENSING INFRASTRUCTURE.
     9 17    1.  As used in this section, "gasoline storage and
     9 18 dispensing infrastructure" means any storage tank
     9 19 located below ground or above ground and any
     9 20 associated equipment including but not limited to a
     9 21 pipe, hose, connection, fitting seal, or pump, which
     9 22 is used to store, measure, and dispense gasoline by a
     9 23 retail dealer as defined in section 214A.1.
     9 24    2.  A retail dealer may use gasoline storage and
     9 25 dispensing infrastructure to store and dispense E=85
     9 26 gasoline, if all of the following apply:
     9 27    a.  For gasoline storage and dispensing
     9 28 infrastructure other than the dispenser, the
     9 29 department must determine that it is compatible with
     9 30 E=85 gasoline.
     9 31    b.  For a dispenser, the manufacturer must state
     9 32 all of the following:
     9 33    (1)  That the equipment is, in the opinion of the
     9 34 manufacturer, not incompatible with E=85 gasoline.
     9 35    (2)  The manufacturer has initiated the process of
     9 36 applying to an independent testing laboratory for
     9 37 listing of the equipment for use in dispensing E=85
     9 38 gasoline.
     9 39    A manufacturer's statement must include a written
     9 40 statement, with reference to a particular type and
     9 41 model of equipment, signed by a responsible official
     9 42 on behalf of the manufacturer, provided either to the
     9 43 retail dealer using the gasoline storage and
     9 44 dispensing infrastructure or to the department of
     9 45 natural resources or the department of public safety.
     9 46 If the written statement is provided to a retail
     9 47 dealer, the statement shall be retained in the files
     9 48 on the premises of the retail dealer and shall be
     9 49 available to personnel of the department of natural
     9 50 resources or the department of public safety upon
    10  1 request.
    10  2    3.  This section is repealed July 1, 2009.
    10  3    Sec. 23.  EFFECTIVE DATE.
    10  4    1.  The sections of this Act amending sections
    10  5 323A.1 and 323A.2, being deemed of immediate
    10  6 importance, take effect upon enactment.
    10  7    2.  Section 323A.2A, as enacted in this Act, being
    10  8 deemed of immediate importance, takes effect upon
    10  9 enactment.
    10 10                      DIVISION III
    10 11         RENEWABLE FUEL INFRASTRUCTURE PROGRAMS
    10 12                      SUBCHAPTER II
    10 13              RENEWABLE FUEL INFRASTRUCTURE
    10 14    Sec. 24.  NEW SECTION.   15G.114  DEFINITIONS.
    10 15    As used in this subchapter, unless the context
    10 16 otherwise requires:
    10 17    1.  "Biodiesel", "biodiesel blended fuel", "E=85
    10 18 gasoline", "gasoline", "motor fuel", "motor fuel
    10 19 pump", "retail dealer", and "retail motor fuel site"
    10 20 mean the same as defined in section 214A.1.
    10 21    2.  "Infrastructure board" means the renewable fuel
    10 22 infrastructure board as created in section 15G.115.
    10 23    3.  "Motor fuel storage and dispensing
    10 24 infrastructure" or "infrastructure" means a tank and
    10 25 motor fuel pumps necessary to keep and dispense motor
    10 26 fuel at a retail motor fuel site, including but not
    10 27 limited to all associated equipment, dispensers,
    10 28 pumps, pipes, hoses, tubes, lines, fittings, valves,
    10 29 filters, seals, and covers.
    10 30    4.  "Terminal" means a storage and distribution
    10 31 facility for motor fuel or a blend stock such as
    10 32 ethanol or biodiesel that is supplied to a motor
    10 33 vehicle, pipeline, or a marine vessel and from which
    10 34 the motor fuel or blend stock may be removed at a
    10 35 rack.  "Terminal" does not include any of the
    10 36 following:
    10 37    a.  A retail motor fuel site.
    10 38    b.  A facility at which motor fuel or special fuel,
    10 39 or blend stocks are used in the manufacture of
    10 40 products other than motor fuel and from which no motor
    10 41 fuel or special fuel is removed.
    10 42    5.  "Terminal operator" means a person who has
    10 43 responsibility for, or physical control over, the
    10 44 operation of a terminal, including by ownership,
    10 45 contractual agreement, or appointment.
    10 46    Sec. 25.  NEW SECTION.  15G.115  RENEWABLE FUEL
    10 47 INFRASTRUCTURE BOARD.
    10 48    A renewable fuel infrastructure board is
    10 49 established within the department.
    10 50    1.  The department shall provide the infrastructure
    11  1 board with necessary facilities, items, and clerical
    11  2 support.  The department shall perform administrative
    11  3 functions necessary for the management of the
    11  4 infrastructure board, and the renewable fuel
    11  5 infrastructure programs as provided in sections
    11  6 15G.116 and 15G.117, all under the direction of the
    11  7 infrastructure board.
    11  8    2.  The infrastructure board shall be composed of
    11  9 nine members who shall be appointed by the governor as
    11 10 follows:
    11 11    a.  One person representing insurers who is
    11 12 knowledgeable about issues relating to underground
    11 13 storage tanks.
    11 14    b.  Eight persons based on nominations made by the
    11 15 titular heads of all of the following:
    11 16    (1)  The agribusiness association of Iowa.
    11 17    (2)  The Iowa corn growers association.
    11 18    (3)  The Iowa farm bureau federation.
    11 19    (4)  The Iowa motor truck association.
    11 20    (5)  The Iowa soybean association.
    11 21    (6)  The petroleum marketers and convenience stores
    11 22 of Iowa.
    11 23    (7)  The Iowa petroleum equipment contractors
    11 24 association.
    11 25    (8)  The Iowa renewable fuels association.
    11 26    3.  Appointments of voting members to the
    11 27 infrastructure board are subject to the requirements
    11 28 of sections 69.16 and 69.16A.  In addition, the
    11 29 appointments shall be geographically balanced.  The
    11 30 governor's appointees shall be confirmed by the
    11 31 senate, pursuant to section 2.32.
    11 32    4.  The members of the infrastructure board shall
    11 33 serve five=year terms beginning and ending as provided
    11 34 in section 69.19.  However, the governor shall appoint
    11 35 initial members to serve for less than five years to
    11 36 ensure members serve staggered terms.  A member is
    11 37 eligible for reappointment.  A vacancy on the board
    11 38 shall be filled for the unexpired portion of the
    11 39 regular term in the same manner as regular
    11 40 appointments are made.
    11 41    5.  The infrastructure board shall elect a
    11 42 chairperson from among its members each year on a
    11 43 rotating basis as provided by the infrastructure
    11 44 board.  The infrastructure board shall meet on a
    11 45 regular basis and at the call of the chairperson or
    11 46 upon the written request to the chairperson of five or
    11 47 more members.
    11 48    6.  Members of the infrastructure board are not
    11 49 entitled to receive compensation but shall receive
    11 50 reimbursement of expenses from the department as
    12  1 provided in section 7E.6.
    12  2    7.  Five members of the infrastructure board
    12  3 constitute a quorum and the affirmative vote of a
    12  4 majority of the members present is necessary for any
    12  5 substantive action to be taken by the infrastructure
    12  6 board.  The majority shall not include any member who
    12  7 has a conflict of interest and a statement by a member
    12  8 that the member has a conflict of interest is
    12  9 conclusive for this purpose.  A vacancy in the
    12 10 membership does not impair the duties of the
    12 11 infrastructure board.
    12 12    Sec. 26.  NEW SECTION.  15G.116  RENEWABLE FUEL
    12 13 INFRASTRUCTURE PROGRAM FOR RETAIL MOTOR FUEL SITES.
    12 14    A renewable fuel infrastructure program is
    12 15 established in the department under the direction of
    12 16 the renewable fuel infrastructure board created
    12 17 pursuant to section 15G.115.
    12 18    1.  The purpose of the program is to improve a
    12 19 retail motor fuel site by installing, replacing, or
    12 20 converting motor fuel storage and dispensing
    12 21 infrastructure.  The infrastructure must be designed
    12 22 and shall be used exclusively to store and dispense E=
    12 23 85 gasoline, biodiesel, or biodiesel blended fuel on
    12 24 the premises of retail motor fuel sites operated by
    12 25 retail dealers.
    12 26    2.  The department shall award financial incentives
    12 27 to a person participating in the program as directed
    12 28 by the infrastructure board on a cost=share basis.  To
    12 29 all extent practical, the program shall be
    12 30 administered in conjunction with the programs provided
    12 31 in section 15.401.  The department shall contract with
    12 32 a qualified organization to evaluate applications for
    12 33 referral to the department and evaluation and approval
    12 34 by the infrastructure board.
    12 35    3.  The infrastructure board shall approve cost=
    12 36 share agreements executed by the department and
    12 37 persons that the infrastructure board determines are
    12 38 eligible as provided in this section, according to
    12 39 terms and conditions required by the infrastructure
    12 40 board.  The infrastructure board shall determine the
    12 41 amount of the financial incentives to be awarded to a
    12 42 person participating in the program.  In order to be
    12 43 eligible to participate in the program all of the
    12 44 following must apply:
    12 45    a.  The person must be an owner or operator of the
    12 46 retail motor fuel site.
    12 47    b.  The person must apply to the department in a
    12 48 manner and according to procedures required by the
    12 49 infrastructure board.  The application must contain
    12 50 all information required by the infrastructure board
    13  1 and shall at least include all of the following:
    13  2    (1)  The name of the person and the address of the
    13  3 retail motor fuel site to be improved.
    13  4    (2)  A detailed description of the infrastructure
    13  5 to be installed, replaced, or converted, including but
    13  6 not limited to the model number of each installed,
    13  7 replaced, or converted motor fuel storage tank if
    13  8 available.
    13  9    (3)  A statement describing how the retail motor
    13 10 fuel site is to be improved, the total estimated cost
    13 11 of the planned improvement, and the date when the
    13 12 infrastructure will be first used to store and
    13 13 dispense the renewable fuel.
    13 14    (4)  A statement certifying that the infrastructure
    13 15 shall not be used to store or dispense motor fuel
    13 16 other than E=85 gasoline, biodiesel, or biodiesel
    13 17 blended fuel, unless granted a waiver by the
    13 18 infrastructure board pursuant to this section.
    13 19    4.  A retail motor fuel site which is improved
    13 20 using financial incentives must comply with federal
    13 21 and state standards governing new or upgraded motor
    13 22 fuel storage tanks used to store and dispense the
    13 23 renewable fuel.  A site classified as a no further
    13 24 action site pursuant to a certificate issued by the
    13 25 department of natural resources under section 455B.474
    13 26 shall retain its classification following
    13 27 modifications necessary to store and dispense the
    13 28 renewable fuel and the owner or operator shall not be
    13 29 required to perform a new site assessment unless the
    13 30 site causes a clear, present, and impending danger to
    13 31 the public health or the environment.
    13 32    5.  a.  For the period beginning July 1, 2006, and
    13 33 ending June 30, 2009, the department upon direction of
    13 34 the infrastructure board shall distribute financial
    13 35 incentives to improve retail motor fuel sites located
    13 36 within each of the six geographic regions described in
    13 37 section 173.4A.
    13 38    b.  The infrastructure board shall not approve a
    13 39 cost=share agreement which awards financial incentives
    13 40 to install, replace, or convert infrastructure
    13 41 associated with more than one motor fuel storage tank
    13 42 or motor fuel pump located at the same retail motor
    13 43 fuel site.
    13 44    6.  An award of financial incentives to a
    13 45 participating person shall be in the form of a grant.
    13 46    a.  In order to participate in the program an
    13 47 eligible person must execute a cost=share agreement
    13 48 with the department as approved by the infrastructure
    13 49 board in which the person contributes a percentage of
    13 50 the total costs related to improving the retail motor
    14  1 fuel site.  The financial incentives awarded to the
    14  2 participating person shall not exceed thirty percent
    14  3 of the estimated cost of making the improvements or
    14  4 thirty percent of the actual cost of making the
    14  5 improvements, whichever is less.
    14  6    b.  The infrastructure board shall not approve an
    14  7 award of more than thirty thousand dollars to improve
    14  8 a retail motor fuel site.  The infrastructure board
    14  9 may approve multiple awards to make improvements to a
    14 10 retail motor fuel site so long as the total amount of
    14 11 the awards in all years is not more than thirty
    14 12 thousand dollars.
    14 13    c.  A participating person shall not use the
    14 14 infrastructure to store or dispense motor fuel other
    14 15 than E=85 gasoline, biodiesel, or biodiesel blended
    14 16 fuel unless one of the following applies:
    14 17    (1)  The participating person is granted a waiver
    14 18 by the infrastructure board.  The participating person
    14 19 shall store or dispense the motor fuel according to
    14 20 the terms and conditions of the waiver.
    14 21    (2)  The infrastructure fund is immediately repaid
    14 22 the total amount of moneys awarded to the
    14 23 participating person together with a monetary penalty
    14 24 equal to twenty=five percent of that awarded amount.
    14 25    d.  A participating person who acts in violation of
    14 26 an agreement executed with the department pursuant to
    14 27 this section is subject to a civil penalty of not more
    14 28 than one thousand dollars a day for each day of the
    14 29 violation.  The civil penalty shall be deposited into
    14 30 the general fund of the state.
    14 31    e.  The infrastructure board shall submit a report
    14 32 to the general assembly each year which provides the
    14 33 same information as required in section 15.104,
    14 34 subsection 9.
    14 35    Sec. 27.  NEW SECTION.  15G.117  RENEWABLE FUEL
    14 36 INFRASTRUCTURE PROGRAM FOR BIODIESEL TERMINAL
    14 37 FACILITIES.
    14 38    The department, under the direction of the
    14 39 renewable fuel infrastructure board created in section
    14 40 15G.115, and in cooperation with the Iowa
    14 41 comprehensive petroleum underground storage tank fund
    14 42 board as provided in chapter 455G, shall establish and
    14 43 administer a renewable fuel infrastructure program for
    14 44 terminal facilities that store and dispense biodiesel
    14 45 or biodiesel blended fuel.  The infrastructure must be
    14 46 designed and shall be used exclusively to store and
    14 47 distribute biodiesel or biodiesel blended fuel.  The
    14 48 department as directed by the infrastructure board
    14 49 shall provide a cost=share program for financial
    14 50 incentives.
    15  1    1.  To all extent practical, the program shall be
    15  2 administered in conjunction with the programs provided
    15  3 in section 15.401.  The department shall contract with
    15  4 a qualified organization to evaluate applications for
    15  5 referral to the department and evaluation and approval
    15  6 by the infrastructure board.
    15  7    2.  The department shall award financial incentives
    15  8 to a terminal operator participating in the program as
    15  9 directed by the infrastructure board.  In order to be
    15 10 eligible to participate in the program, the terminal
    15 11 operator must apply to the department in a manner and
    15 12 according to procedures required by the infrastructure
    15 13 board.  The application must contain information
    15 14 required by the infrastructure board and shall at
    15 15 least include all of the following:
    15 16    a.  The name of the terminal operator and the
    15 17 address of the terminal to be improved.
    15 18    b.  A detailed description of the infrastructure to
    15 19 be installed, replaced, or converted.
    15 20    c.  A statement describing how the terminal is to
    15 21 be improved, the total estimated cost of the planned
    15 22 improvement, and the date when the infrastructure will
    15 23 be first used to store and distribute biodiesel or
    15 24 biodiesel blended fuel.
    15 25    d.  A statement certifying that the infrastructure
    15 26 shall not be used to store or dispense motor fuel
    15 27 other than biodiesel or biodiesel blended fuel, unless
    15 28 granted a waiver by the infrastructure board pursuant
    15 29 to this section.
    15 30    3.  The department's award of financial incentives
    15 31 to a participating terminal operator shall be in the
    15 32 form of a grant.  In order to participate in the
    15 33 program, an eligible terminal operator must execute a
    15 34 cost=share agreement with the department in which the
    15 35 terminal operator contributes a percentage of the
    15 36 total costs related to improving the terminal.  The
    15 37 financial incentives awarded to the participating
    15 38 terminal operator shall not exceed the estimated cost
    15 39 of making the improvements or the actual cost of
    15 40 making the improvements, whichever is less.
    15 41    4.  A participating terminal operator shall not use
    15 42 the infrastructure to store or dispense motor fuel
    15 43 other than biodiesel or biodiesel blended fuel, unless
    15 44 one of the following applies:
    15 45    a.  The participating terminal operator is granted
    15 46 a waiver by the infrastructure board.  The
    15 47 participating terminal operator shall store or
    15 48 dispense the motor fuel according to the terms and
    15 49 conditions of the waiver.
    15 50    b.  The infrastructure fund is immediately repaid
    16  1 the total amount of moneys awarded to the
    16  2 participating terminal operator together with a
    16  3 monetary penalty equal to twenty=five percent of that
    16  4 awarded amount.
    16  5    c.  A participating terminal operator who acts in
    16  6 violation of an agreement executed with the department
    16  7 pursuant to this section is subject to a civil penalty
    16  8 of not more than one thousand dollars a day for each
    16  9 day of the violation.  The civil penalty shall be
    16 10 deposited into the general fund of the state.
    16 11                       DIVISION IV
    16 12       RENEWABLE FUEL INCOME TAX CREDIT PROVISIONS
    16 13    Sec. 28.  Section 422.11C, subsection 1, paragraphs
    16 14 a through g, Code 2005, are amended by striking the
    16 15 paragraphs and inserting in lieu thereof the
    16 16 following:
    16 17    a.  "E=85 gasoline", "ethanol blended gasoline",
    16 18 "gasoline", and "retail dealer" mean the same as
    16 19 defined in section 214A.1.
    16 20    b.  "Motor fuel pump" means the same as motor
    16 21 vehicle fuel pump as defined in section 214.1.
    16 22    c.  "Retail motor fuel site" means the same as
    16 23 defined in section 214A.1.
    16 24    d.  "Sell" means to sell on a retail basis.
    16 25    e.  "Tax credit" means the designated ethanol
    16 26 blended gasoline tax credit as provided in this
    16 27 section.
    16 28    Sec. 29.  Section 422.11C, subsection 2, paragraph
    16 29 b, Code 2005, is amended to read as follows:
    16 30    b.  The taxpayer operates at least one service
    16 31 station retail motor fuel site at which more than
    16 32 sixty percent of the total gallons of gasoline sold
    16 33 and dispensed through one or more metered motor fuel
    16 34 pumps by the taxpayer in the tax year is ethanol
    16 35 blended gasoline.
    16 36    Sec. 30.  Section 422.11C, subsection 3, Code 2005,
    16 37 is amended to read as follows:
    16 38    3.  The tax credit shall be calculated separately
    16 39 for each service station retail motor fuel site
    16 40 operated by the taxpayer.  The amount of the tax
    16 41 credit for each eligible service station retail motor
    16 42 fuel site is two and one=half cents multiplied by the
    16 43 total number of gallons of ethanol blended gasoline
    16 44 sold and dispensed through all metered motor fuel
    16 45 pumps located at that service station retail motor
    16 46 fuel site during the tax year in excess of sixty
    16 47 percent of all gasoline sold and dispensed through
    16 48 metered motor fuel pumps at that service station
    16 49 retail motor fuel site during the tax year.
    16 50    3A.  A taxpayer is not eligible to claim a
    17  1 designated ethanol blended gasoline tax credit as
    17  2 provided in this section, if the taxpayer claims any
    17  3 of the following:
    17  4    a.  An ethanol promotion tax credit as provided in
    17  5 section 422.11N or 422.33.
    17  6    b.  An E=85 gasoline promotion tax credit as
    17  7 provided in section 422.11O or 422.33 for the same
    17  8 gallons of ethanol blended gasoline.
    17  9    Sec. 31.  Section 422.11C, Code 2005, is amended by
    17 10 adding the following new subsection:
    17 11    NEW SUBSECTION.  6.  This section is repealed on
    17 12 January 1, 2007.
    17 13    Sec. 32.  NEW SECTION.  422.11N  ETHANOL PROMOTION
    17 14 TAX CREDIT.
    17 15    1.  As used in this section, unless the context
    17 16 otherwise requires:
    17 17    a.  "E=85 gasoline", "ethanol", "ethanol blended
    17 18 gasoline", "gasoline", "motor fuel pump", and "retail
    17 19 dealer" mean the same as defined in section 214A.1.
    17 20    b.  "Sell" means to sell on a retail basis.
    17 21    c.  "Tax credit" means the ethanol promotion tax
    17 22 credit as provided in this section.
    17 23    2.  The taxes imposed under this division, less the
    17 24 credits allowed under sections 422.12 and 422.12B,
    17 25 shall be reduced by an ethanol promotion tax credit
    17 26 for each tax year that the taxpayer is eligible to
    17 27 claim the tax credit under this section.  In order to
    17 28 be eligible, all of the following must apply:
    17 29    a.  The taxpayer is a retail dealer who sells and
    17 30 dispenses ethanol blended gasoline through a motor
    17 31 fuel pump in the tax year in which the tax credit is
    17 32 claimed.
    17 33    b.  The retail dealer complies with requirements of
    17 34 the department to administer this section.
    17 35    3.  In order to receive the tax credit, the retail
    17 36 dealer must calculate all of the following:
    17 37    a.  The retail dealer's total gasoline gallonage as
    17 38 provided in section 452A.31.
    17 39    b.  The retail dealer's total ethanol gallonage as
    17 40 provided in section 452A.31.  The retail dealer may
    17 41 calculate the ethanol gallonage based on the schedule
    17 42 provided in section 452A.32.
    17 43    4.  The tax credit is calculated by multiplying
    17 44 five cents by the retail dealer's total ethanol
    17 45 gallonage as provided in section 452A.31 as follows:
    17 46    a.  For each calendar year beginning during the
    17 47 period commencing January 1, 2006, and ending December
    17 48 31, 2010, the tax credit shall be five cents
    17 49 multiplied by the retail dealer's total ethanol
    17 50 gallonage.
    18  1    b.  For each calendar year beginning during the
    18  2 period commencing January 1, 2011, and ending December
    18  3 31, 2025, the tax credit shall be calculated as
    18  4 follows:
    18  5    (1)  Take the retail dealer's total ethanol
    18  6 gallonage which is the minuend.
    18  7    (2)  Multiply the retail dealer's total gasoline
    18  8 gallonage by a deductible percentage and round off the
    18  9 resulting product to the nearest whole number to
    18 10 obtain the subtrahend.  For calendar year 2011, the
    18 11 deductible percentage is one percent.  For each
    18 12 subsequent calendar year, the deductible percentage
    18 13 shall keep increasing by one percent.
    18 14    (3)  Subtract the subtrahend from the minuend to
    18 15 obtain the retail dealer's resulting qualifying
    18 16 ethanol gallonage.
    18 17    (4)  Multiply the retail dealer's resulting
    18 18 qualifying ethanol gallonage by five cents.
    18 19    c.  If a retail dealer's tax year ends prior to
    18 20 December 31 of a calendar year, the retail dealer may
    18 21 continue to claim the tax credit in the retail
    18 22 dealer's following tax year.  In that case, the tax
    18 23 credit shall be five cents multiplied by the retail
    18 24 dealer's total ethanol gallonage for the period
    18 25 beginning on the first day of the retail dealer's new
    18 26 tax year until December 31.  For that period, the tax
    18 27 credit shall be calculated in the same manner as a
    18 28 retail dealer whose tax year began on the previous
    18 29 January 1 and who is calculating the tax credit on
    18 30 that same December 31.
    18 31    5.  a.  A retail dealer is eligible to claim an
    18 32 ethanol promotion tax credit as provided in this
    18 33 section even though the retail dealer claims an E=85
    18 34 gasoline promotion tax credit pursuant to section
    18 35 422.11O for the same tax year and for the same ethanol
    18 36 gallonage.
    18 37    b.  A retail dealer is not eligible to claim an
    18 38 ethanol promotion tax credit as provided in this
    18 39 section if the retail dealer claims a designated
    18 40 ethanol blended gasoline tax credit as provided in
    18 41 section 422.11C.
    18 42    6.  Any credit in excess of the retail dealer's tax
    18 43 liability shall be refunded.  In lieu of claiming a
    18 44 refund, the retail dealer may elect to have the
    18 45 overpayment shown on the retail dealer's final,
    18 46 completed return credited to the tax liability for the
    18 47 following tax year.
    18 48    7.  An individual may claim the tax credit allowed
    18 49 a partnership, limited liability company, S
    18 50 corporation, estate, or trust electing to have the
    19  1 income taxed directly to the individual.  The amount
    19  2 claimed by the individual shall be based upon the pro
    19  3 rata share of the individual's earnings of a
    19  4 partnership, limited liability company, S corporation,
    19  5 estate, or trust.
    19  6    8.  This section is repealed on January 1, 2026.
    19  7    Sec. 33.  NEW SECTION.  422.11O  E=85 GASOLINE
    19  8 PROMOTION TAX CREDIT.
    19  9    1.  As used in this section, unless the context
    19 10 otherwise requires:
    19 11    a.  "E=85 gasoline", "ethanol", "gasoline", "motor
    19 12 fuel pump", and "retail dealer" mean the same as
    19 13 defined in section 214A.1.
    19 14    b.  "Sell" means to sell on a retail basis.
    19 15    c.  "Tax credit" means the E=85 gasoline promotion
    19 16 tax credit as provided in this section.
    19 17    2.  The taxes imposed under this division, less the
    19 18 credits allowed under sections 422.12 and 422.12B,
    19 19 shall be reduced by an E=85 gasoline promotion tax
    19 20 credit for each tax year that the taxpayer is eligible
    19 21 to claim under this subsection.  In order to be
    19 22 eligible, all of the following must apply:
    19 23    a.  The taxpayer is a retail dealer who sells and
    19 24 dispenses E=85 gasoline through a motor fuel pump in
    19 25 the tax year in which the tax credit is claimed.
    19 26    b.  The retail dealer complies with requirements of
    19 27 the department to administer this section.
    19 28    3.  The amount of the tax credit for a retail
    19 29 dealer is calculated by multiplying a designated rate
    19 30 by the retail dealer's total E=85 gasoline gallonage
    19 31 as provided in sections 452A.31 and 452A.32.  The
    19 32 designated rate is as follows:
    19 33    a.  For calendar year 2006 or calendar year 2007,
    19 34 twenty=five cents.
    19 35    b.  For calendar year 2008 or calendar year 2009,
    19 36 twenty cents.
    19 37    c.  For calendar year 2010, ten cents.
    19 38    d.  For calendar year 2011, nine cents.
    19 39    e.  For calendar year 2012, eight cents.
    19 40    f.  For calendar year 2013, seven cents.
    19 41    g.  For calendar year 2014, six cents.
    19 42    h.  For calendar year 2015, five cents.
    19 43    i.  For calendar year 2016, four cents.
    19 44    j.  For calendar year 2017, three cents.
    19 45    k.  For calendar year 2018, two cents.
    19 46    l.  For calendar year 2019, one cent.
    19 47    4.  If a retail dealer's tax year ends prior to
    19 48 December 31 of a calendar year, the retail dealer may
    19 49 continue to claim the tax credit in the retail
    19 50 dealer's following tax year.  In that case, the tax
    20  1 credit shall be the designated rate multiplied by the
    20  2 retail dealer's total E=85 gasoline gallonage for the
    20  3 remaining period beginning on the first day of the
    20  4 retail dealer's new tax year until the next December
    20  5 31.  For that remaining period, the tax credit shall
    20  6 be calculated in the same manner as a retail dealer
    20  7 whose tax year began on the previous January 1 and who
    20  8 is calculating the tax credit on that same December
    20  9 31.
    20 10    5.  a.  A retail dealer is eligible to claim an E=
    20 11 85 gasoline promotion tax credit as provided in this
    20 12 section even though the retail dealer claims an
    20 13 ethanol promotion tax credit pursuant to section
    20 14 422.11N for the same tax year for the same ethanol
    20 15 gallonage.
    20 16    b.  A retail dealer is not eligible to claim an E=
    20 17 85 gasoline tax credit as provided in this section, if
    20 18 the retail dealer claims a designated ethanol blended
    20 19 gasoline tax credit as provided in section 422.11C.
    20 20    6.  Any credit in excess of the retail dealer's tax
    20 21 liability shall be refunded.  In lieu of claiming a
    20 22 refund, the retail dealer may elect to have the
    20 23 overpayment shown on the retail dealer's final,
    20 24 completed return credited to the tax liability for the
    20 25 following tax year.
    20 26    7.  An individual may claim the tax credit allowed
    20 27 a partnership, limited liability company, S
    20 28 corporation, estate, or trust electing to have the
    20 29 income taxed directly to the individual.  The amount
    20 30 claimed by the individual shall be based upon the pro
    20 31 rata share of the individual's earnings of a
    20 32 partnership, limited liability company, S corporation,
    20 33 estate, or trust.
    20 34    8.  This section is repealed on January 1, 2020.
    20 35    Sec. 34.  NEW SECTION.  422.11P  BIODIESEL BLENDED
    20 36 FUEL TAX CREDIT.
    20 37    1.  As used in this section, unless the context
    20 38 otherwise requires:
    20 39    a.  "Biodiesel blended fuel", "diesel fuel", and
    20 40 "retail dealer" mean the same as defined in section
    20 41 214A.1.
    20 42    b.  "Motor fuel pump" means the same as defined in
    20 43 section 214.1.
    20 44    c.  "Sell" means to sell on a retail basis.
    20 45    d.  "Tax credit" means a biodiesel blended fuel tax
    20 46 credit as provided in this section.
    20 47    2.  The taxes imposed under this division, less the
    20 48 credits allowed under sections 422.12 and 422.12B,
    20 49 shall be reduced by the amount of the biodiesel
    20 50 blended fuel tax credit for each tax year that the
    21  1 taxpayer is eligible to claim a tax credit under this
    21  2 subsection.
    21  3    a.  In order to be eligible, all of the following
    21  4 must apply:
    21  5    (1)  The taxpayer is a retail dealer who sells and
    21  6 dispenses biodiesel blended fuel through a motor fuel
    21  7 pump in the tax year in which the tax credit is
    21  8 claimed.
    21  9    (2)  Of the total gallons of diesel fuel that the
    21 10 retail dealer sells and dispenses through all motor
    21 11 fuel pumps during the retail dealer's tax year, fifty
    21 12 percent or more is biodiesel blended fuel which meets
    21 13 the requirements of this section.
    21 14    (3)  The retail dealer complies with requirements
    21 15 of the department established to administer this
    21 16 section.
    21 17    b.  The tax credit shall apply to biodiesel blended
    21 18 fuel formulated with a minimum percentage of two
    21 19 percent by volume of biodiesel, if the formulation
    21 20 meets the standards provided in section 214A.2.
    21 21    3.  The amount of the tax credit is three cents
    21 22 multiplied by the total number of gallons of biodiesel
    21 23 blended fuel sold and dispensed by the retail dealer
    21 24 through all motor fuel pumps operated by the retail
    21 25 dealer during the retail dealer's tax year.
    21 26    4.  Any credit in excess of the retail dealer's tax
    21 27 liability shall be refunded.  In lieu of claiming a
    21 28 refund, the retail dealer may elect to have the
    21 29 overpayment shown on the retail dealer's final,
    21 30 completed return credited to the tax liability for the
    21 31 following tax year.
    21 32    5.  An individual may claim the tax credit allowed
    21 33 a partnership, limited liability company, S
    21 34 corporation, estate, or trust electing to have the
    21 35 income taxed directly to the individual.  The amount
    21 36 claimed by the individual shall be based upon the pro
    21 37 rata share of the individual's earnings of the
    21 38 partnership, limited liability company, S corporation,
    21 39 estate, or trust.
    21 40    6.  This section is repealed January 1, 2012.
    21 41    Sec. 35.  Section 422.33, subsection 11, paragraph
    21 42 a, subparagraph (1), Code Supplement 2005, is amended
    21 43 to read as follows:
    21 44    (1)  "Ethanol "E=85 gasoline", "ethanol blended
    21 45 gasoline", "gasoline", "metered pump", "motor fuel
    21 46 pump", "retail dealer", "retail motor fuel site", and
    21 47 "sell", and "service station" mean the same as defined
    21 48 in section 422.11C.
    21 49    Sec. 36.  Section 422.33, subsection 11, paragraph
    21 50 b, subparagraph (2), Code Supplement 2005, is amended
    22  1 to read as follows:
    22  2    (2)  The taxpayer operates at least one service
    22  3 station retail motor fuel site at which more than
    22  4 sixty percent of the total gallons of gasoline sold
    22  5 and dispensed through one or more metered motor fuel
    22  6 pumps by the taxpayer is ethanol blended gasoline.
    22  7    Sec. 37.  Section 422.33, subsection 11, paragraph
    22  8 c, Code Supplement 2005, is amended to read as
    22  9 follows:
    22 10    c.  (1)  The tax credit shall be calculated
    22 11 separately for each service station retail motor fuel
    22 12 site operated by the taxpayer.
    22 13    (2)  The amount of the tax credit for each eligible
    22 14 service station retail motor fuel site is two and one=
    22 15 half cents multiplied by the total number of gallons
    22 16 of ethanol blended gasoline sold and dispensed through
    22 17 all metered motor fuel pumps located at that service
    22 18 station retail motor fuel site during the tax year in
    22 19 excess of sixty percent of all gasoline sold and
    22 20 dispensed through metered motor fuel pumps at that
    22 21 service station retail motor fuel site during the tax
    22 22 year.
    22 23    (3)  A taxpayer is not eligible to claim a
    22 24 designated ethanol blended gasoline tax credit as
    22 25 provided in this subsection, if the taxpayer claims
    22 26 any of the following:
    22 27    (a)  An ethanol promotion tax credit as provided in
    22 28 section 422.11N or this section.
    22 29    (b)  An E=85 promotion tax credit as provided in
    22 30 section 422.11O or this section for the same gallons
    22 31 of ethanol blended gasoline.
    22 32    Sec. 38.  Section 422.33, subsection 11, Code
    22 33 Supplement 2005, is amended by adding the following
    22 34 new paragraph:
    22 35    NEW PARAGRAPH.  e.  This subsection is repealed on
    22 36 January 1, 2007.
    22 37    Sec. 39.  Section 422.33, Code Supplement 2005, is
    22 38 amended by adding the following new subsections:
    22 39    NEW SUBSECTION.  11A.  The taxes imposed under this
    22 40 division shall be reduced by an ethanol promotion tax
    22 41 credit for each tax year that the taxpayer is eligible
    22 42 to claim the tax credit under this subsection.
    22 43    a.  The taxpayer shall claim the tax credit in the
    22 44 same manner as provided in section 422.11N.  The
    22 45 taxpayer may claim the tax credit according to the
    22 46 same requirements, for the same amount, and calculated
    22 47 in the same manner, as provided for the ethanol
    22 48 promotion tax credit pursuant to section 422.11N.
    22 49    b.  Any ethanol promotion tax credit which is in
    22 50 excess of the taxpayer's tax liability shall be
    23  1 refunded or may be shown on the taxpayer's final,
    23  2 completed return credited to the tax liability for the
    23  3 following tax year in the same manner as provided in
    23  4 section 422.11N.
    23  5    c.  This subsection is repealed on January 1, 2026.
    23  6    NEW SUBSECTION.  11B.  The taxes imposed under this
    23  7 division shall be reduced by an E=85 gasoline
    23  8 promotion tax credit for each tax year that the
    23  9 taxpayer is eligible to claim the tax credit under
    23 10 this subsection.
    23 11    a.  The taxpayer shall claim the tax credit in the
    23 12 same manner as provided in section 422.11O.  The
    23 13 taxpayer may claim the tax credit according to the
    23 14 same requirements, for the same amount, and calculated
    23 15 in the same manner, as provided for the E=85 gasoline
    23 16 promotion tax credit pursuant to section 422.11O.
    23 17    b.  Any E=85 gasoline promotion tax credit which is
    23 18 in excess of the taxpayer's tax liability shall be
    23 19 refunded or may be shown on the taxpayer's final,
    23 20 completed return credited to the tax liability for the
    23 21 following tax year in the same manner as provided in
    23 22 section 422.11O.
    23 23    c.  This subsection is repealed on January 1, 2020.
    23 24    Sec. 40.  Section 422.33, Code Supplement 2005, is
    23 25 amended by adding the following new subsection:
    23 26    NEW SUBSECTION.  11C.  The taxes imposed under this
    23 27 division shall be reduced by a biodiesel blended fuel
    23 28 tax credit for each tax year that the taxpayer is
    23 29 eligible to claim the tax credit under this
    23 30 subsection.
    23 31    a.  The taxpayer may claim the biodiesel blended
    23 32 fuel tax credit according to the same requirements,
    23 33 for the same amount, and calculated in the same
    23 34 manner, as provided for the biodiesel blended fuel tax
    23 35 credit pursuant to section 422.11P.
    23 36    b.  Any biodiesel blended fuel tax credit which is
    23 37 in excess of the taxpayer's tax liability shall be
    23 38 refunded or may be shown on the taxpayer's final,
    23 39 completed return credited to the tax liability for the
    23 40 following tax year in the same manner as provided in
    23 41 section 422.11P.
    23 42    c.  This subsection is repealed on January 1, 2012.
    23 43    Sec. 41.  RETROACTIVE APPLICABILITY DATE.  Sections
    23 44 422.11N, 422,11O, and 422.11P, as enacted in this Act,
    23 45 and section 422.33, subsections 11A, 11B, and 11C, as
    23 46 enacted in this Act, apply retroactively to tax years
    23 47 beginning on or after January 1, 2006.
    23 48    Sec. 42.  TAX CREDIT AVAILABILITY.
    23 49    1.  For a retail dealer who may claim a designated
    23 50 ethanol blended gasoline tax credit under section
    24  1 422.11C or 422.33, subsection 11, as amended by this
    24  2 Act, in calendar year 2006 and whose tax year ends
    24  3 prior to December 31, 2006, the retail dealer may
    24  4 continue to claim the tax credit in the retail
    24  5 dealer's following tax year.  In that case, the tax
    24  6 credit shall be calculated in the same manner as
    24  7 provided in section 422.11C or 422.33, subsection 11,
    24  8 as amended by this Act, for the remaining period
    24  9 beginning on the first day of the retail dealer's new
    24 10 tax year until December 31, 2006.  For that remaining
    24 11 period, the tax credit shall be calculated in the same
    24 12 manner as a retail dealer whose tax year began on the
    24 13 previous January 1 and who is calculating the tax
    24 14 credit on December 31, 2006.
    24 15    2.  For a retail dealer who may claim an ethanol
    24 16 promotion tax credit under section 422.11N or 422.33,
    24 17 subsection 11A, as enacted in this Act, in calendar
    24 18 year 2025 and whose tax year ends prior to December
    24 19 31, 2025, the retail dealer may continue to claim the
    24 20 tax credit in the retail dealer's following tax year.
    24 21 In that case, the tax credit shall be calculated in
    24 22 the same manner as provided in section 422.11N or
    24 23 422.33, subsection 11A, as enacted in this Act, for
    24 24 the remaining period beginning on the first day of the
    24 25 retail dealer's new tax year until December 31, 2025.
    24 26 For that remaining period, the tax credit shall be
    24 27 calculated in the same manner as a retail dealer whose
    24 28 tax year began on the previous January 1 and who is
    24 29 calculating the tax credit on December 31, 2025.
    24 30    3.  For a retail dealer who may claim an E=85
    24 31 gasoline promotion tax credit under section 422.11O or
    24 32 422.33, subsection 11B, as enacted in this Act, in
    24 33 calendar year 2019 and whose tax year ends prior to
    24 34 December 31, 2019, the retail dealer may continue to
    24 35 claim the tax credit in the retail dealer's following
    24 36 tax year.  In that case, the tax credit shall be
    24 37 calculated in the same manner as provided in section
    24 38 422.11O or 422.33, subsection 11B, as enacted in this
    24 39 Act, for the remaining period beginning on the first
    24 40 day of the retail dealer's new tax year until December
    24 41 31, 2019.  For that remaining period, the tax credit
    24 42 shall be calculated in the same manner as a retail
    24 43 dealer whose tax year began on the previous January 1
    24 44 and who is calculating the tax credit on December 31,
    24 45 2019.
    24 46    4.  For a retail dealer who may claim a biodiesel
    24 47 blended fuel tax credit under section 422.11P or
    24 48 422.33, subsection 11C, as enacted in this Act, in
    24 49 calendar year 2006 and whose tax year ends before
    24 50 December 31, 2006, the retail dealer may claim the tax
    25  1 credit during the period beginning January 1, 2006,
    25  2 and ending on the last day of the retail dealer's tax
    25  3 year, if of the total gallons of diesel fuel that the
    25  4 retail dealer sells and dispenses through all motor
    25  5 fuel pumps during that period, fifty percent or more
    25  6 is biodiesel blended fuel which meets the requirements
    25  7 of section 422.11P or 422.33, subsection 11C, as
    25  8 enacted in this Act.
    25  9    5.  For a retail dealer who may claim a biodiesel
    25 10 blended fuel tax credit under section 422.11P or
    25 11 422.33, subsection 11C, as enacted in this Act, in
    25 12 calendar year 2011 and whose tax year ends prior to
    25 13 December 31, 2011, the retail dealer may continue to
    25 14 claim the tax credit in the retail dealer's following
    25 15 tax year.  In that case, the tax credit shall be
    25 16 calculated in the same manner as provided in section
    25 17 422.11P or 422.33, subsection 11C, as enacted in this
    25 18 Act, for the remaining period beginning on the first
    25 19 day of the retail dealer's new tax year until December
    25 20 31, 2011.  For that remaining period, the tax credit
    25 21 shall be calculated in the same manner as a retail
    25 22 dealer whose tax year began on the previous January 1
    25 23 and who is calculating the tax credit on December 31,
    25 24 2011.
    25 25                       DIVISION V
    25 26            PETROLEUM REPLACEMENT INITIATIVE
    25 27    Sec. 43.  Section 452A.2, subsection 2, Code
    25 28 Supplement 2005, is amended by striking the subsection
    25 29 and inserting in lieu thereof the following:
    25 30    2.  "Biofuel" means the same as defined in section
    25 31 214A.1.
    25 32    Sec. 44.  Section 452A.2, Code Supplement 2005, is
    25 33 amended by adding the following new subsections:
    25 34    NEW SUBSECTION.  1A.  "Biodiesel" means the same as
    25 35 defined in section 214A.1.
    25 36    NEW SUBSECTION.  1B.  "Biodiesel blended fuel"
    25 37 means the same as defined in section 214A.1.
    25 38    NEW SUBSECTION.  9A.  "E=85 gasoline" means the
    25 39 same as defined in section 214A.1.
    25 40    NEW SUBSECTION.  10A.  "Ethanol" means the same as
    25 41 defined in section 214A.1.
    25 42    NEW SUBSECTION.  13A.  "Gasoline" means the same as
    25 43 defined in section 214A.1.
    25 44    NEW SUBSECTION.  19A.  "Motor fuel pump" means the
    25 45 same as defined in section 214.1.
    25 46    NEW SUBSECTION.  20A.  "Nonethanol blended
    25 47 gasoline" means gasoline other than ethanol blended
    25 48 gasoline.
    25 49    NEW SUBSECTION.  24A.  "Retail dealer" means the
    25 50 same as defined in section 214A.1.
    26  1    NEW SUBSECTION.  24B.  "Retail motor fuel site"
    26  2 means the same as defined in section 214A.1.
    26  3    Sec. 45.  Section 452A.2, subsection 11, Code
    26  4 Supplement 2005, is amended to read as follows:
    26  5    11.  "Ethanol blended gasoline" means motor fuel
    26  6 containing at least ten percent alcohol distilled from
    26  7 cereal grains the same as defined in section 214A.1.
    26  8    Sec. 46.  Section 452A.2, subsection 19, unnumbered
    26  9 paragraph 1, Code Supplement 2005, is amended to read
    26 10 as follows:
    26 11    "Motor fuel" means both motor fuel as defined in
    26 12 section 214A.1 and includes all of the following:
    26 13    Sec. 47.  Section 452A.3, subsection 1A, Code 2005,
    26 14 is amended by striking the subsection and inserting in
    26 15 lieu thereof the following:
    26 16    1A.  Except as otherwise provided in this section
    26 17 and in this division, after June 30, 2007, this
    26 18 subsection shall apply to the excise tax imposed on
    26 19 each gallon of gasoline used for any purpose for the
    26 20 privilege of operating motor vehicles in this state.
    26 21 The amount of the excise tax is the applicable rate
    26 22 multiplied by each gallon of ethanol blended gasoline
    26 23 and nonethanol blended gasoline.
    26 24    a.  The applicable rate is the base rate of twenty
    26 25 cents for ethanol blended gasoline and nonethanol
    26 26 blended gasoline.
    26 27    b.  By March 1, following each key determination
    26 28 period as provided in section 452A.31, the department
    26 29 shall determine whether the biofuel percentage
    26 30 threshold has been met as provided in section 452A.34.
    26 31    (1)  If the biofuel threshold percentage has been
    26 32 met, the applicable rate of the excise tax is the base
    26 33 rate as provided in paragraph "a".
    26 34    (2)  If the biofuel threshold percentage has not
    26 35 been met, the applicable rate of the excise tax is a
    26 36 special rate.
    26 37    (a)  The special rate is calculated as follows:
    26 38    (i)  Multiply the biofuel threshold disparity
    26 39 factor for that key determination period as provided
    26 40 in section 452A.34 by two cents to obtain the
    26 41 resulting product.
    26 42    (ii)  Add the resulting product to the base rate as
    26 43 if the biofuel threshold percentage had been met as
    26 44 provided in paragraph "a" to obtain the resulting sum
    26 45 which is the special rate.
    26 46    (b)  The special rate shall be effective as
    26 47 follows:
    26 48    (i)  If the biofuel threshold percentage has not
    26 49 been met during the first key determination period,
    26 50 the special rate is effective beginning on July 1,
    27  1 2010, and ending on June 30, 2015.
    27  2    (ii)  If the biofuel threshold percentage has not
    27  3 been met during the second key determination period,
    27  4 the special rate is effective beginning on July 1,
    27  5 2015, and ending on June 30, 2020.
    27  6    (iii)  If the biofuel threshold percentage has not
    27  7 been met during the third key determination period,
    27  8 the special rate is effective beginning on July 1,
    27  9 2020, and ending on June 30, 2025.
    27 10    (iv)  If the biofuel threshold percentage has not
    27 11 been met during the fourth key determination period,
    27 12 the special rate is effective on and after July 1,
    27 13 2025.
    27 14    Sec. 48.  NEW SECTION.  452A.31  SPECIAL TERMS.
    27 15    For purposes of this division, all of the following
    27 16 shall apply:
    27 17    1.  a.  A determination period is any twelve=month
    27 18 period beginning on January 1 and ending on December
    27 19 31.
    27 20    b.  A key determination period and key
    27 21 determination date are as follows:
    27 22    (1)  For the first key determination period, the
    27 23 period beginning January 1 and ending December 31,
    27 24 2009, and for the first key determination date, March
    27 25 1, 2010.
    27 26    (2)  For the second key determination period, the
    27 27 period beginning January 1 and ending December 31,
    27 28 2014, and for the second key determination date, March
    27 29 1, 2015.
    27 30    (3)  For the third key determination period, the
    27 31 period beginning January 1 and ending December 31,
    27 32 2019, and for the third key determination date, March
    27 33 1, 2020.
    27 34    (4)  For the fourth key determination period, the
    27 35 period beginning January 1 and ending December 31,
    27 36 2024, and for the fourth key determination date, March
    27 37 1, 2025.
    27 38    2.  a.  A retail dealer's total gasoline gallonage
    27 39 is the total number of gallons of gasoline, which the
    27 40 retail dealer sells and dispenses from all motor fuel
    27 41 pumps operated by the retail dealer in this state
    27 42 during a twelve=month period beginning January 1 and
    27 43 ending December 31.  The retail dealer's total
    27 44 gasoline gallonage is divided into the following
    27 45 classifications:
    27 46    (1)  The total ethanol blended gasoline gallonage
    27 47 which is the retail dealer's total number of gallons
    27 48 of ethanol blended gasoline and which includes all of
    27 49 the following subclassifications:
    27 50    (a)  The total E=xx gasoline gallonage which is the
    28  1 total number of gallons of ethanol blended gasoline
    28  2 other than E=85 gasoline.
    28  3    (b)  The total E=85 gasoline gallonage which is the
    28  4 total number of gallons of E=85 gasoline.
    28  5    (2)  The total nonblended gasoline gallonage which
    28  6 is the total number of gallons of nonblended ethanol
    28  7 gasoline.
    28  8    b.  A retail dealer's total ethanol gallonage is
    28  9 the total number of gallons of ethanol which is a
    28 10 component of ethanol blended gasoline which the retail
    28 11 dealer sells and dispenses from motor fuel pumps as
    28 12 provided in paragraph "a" during a twelve=month period
    28 13 beginning January 1 and ending December 31.
    28 14    3.  a.  A retail dealer's total diesel fuel
    28 15 gallonage is the total number of gallons of diesel
    28 16 fuel, which the retail dealer sells and dispenses from
    28 17 all motor fuel pumps operated by the retail dealer in
    28 18 this state during a twelve=month period beginning
    28 19 January 1 and ending December 31.  The retail dealer's
    28 20 total diesel fuel gallonage is divided into the
    28 21 following classifications:
    28 22    (1)  The total biodiesel blended fuel gallonage
    28 23 which is the retail dealer's total number of gallons
    28 24 of biodiesel blended fuel.
    28 25    (2)  The total nonblended diesel fuel gallonage
    28 26 which is the total number of gallons of diesel fuel
    28 27 which is not biodiesel or biodiesel blended fuel.
    28 28    b.  A retail dealer's total biodiesel gallonage is
    28 29 the total number of gallons of biodiesel which may or
    28 30 may not be a component of biodiesel blended fuel, and
    28 31 which the retail dealer sells and dispenses from motor
    28 32 fuel pumps as provided in paragraph "a" during a
    28 33 twelve=month period beginning January 1 and ending
    28 34 December 31.
    28 35    4.  a.  The aggregate gasoline gallonage is the
    28 36 total number of gallons of gasoline, which all retail
    28 37 dealers sell and dispense from all motor fuel pumps
    28 38 operated by the retail dealers in this state during a
    28 39 twelve=month period beginning January 1 and ending
    28 40 December 31.  The aggregate gasoline gallonage is
    28 41 divided into the following classifications:
    28 42    (1)  The aggregate ethanol blended gasoline
    28 43 gallonage which is the aggregate total number of
    28 44 gallons of ethanol blended gasoline and which includes
    28 45 all of the following subclassifications:
    28 46    (a)  The aggregate E=xx gasoline gallonage which is
    28 47 the aggregate total number of gallons of ethanol
    28 48 blended gasoline other than E=85 gasoline.
    28 49    (b)  The aggregate E=85 gasoline gallonage which is
    28 50 the aggregate total number of gallons of E=85
    29  1 gasoline.
    29  2    (2)  The aggregate nonblended gasoline gallonage,
    29  3 which is the aggregate number of gallons of nonblended
    29  4 ethanol gasoline.
    29  5    b.  The aggregate ethanol gallonage is the total
    29  6 number of gallons of ethanol which is a component of
    29  7 ethanol blended gasoline which all retail dealers sell
    29  8 and dispense from motor fuel pumps as provided in
    29  9 paragraph "a" during a twelve=month period beginning
    29 10 January 1 and ending December 31.
    29 11    5.  a.  The aggregate diesel fuel gallonage is the
    29 12 total number of gallons of diesel fuel, which all
    29 13 retail dealers sell and dispense from all motor fuel
    29 14 pumps operated by the retail dealers in this state
    29 15 during a twelve=month period beginning January 1 and
    29 16 ending December 31.  The aggregate diesel fuel
    29 17 gallonage is divided into the following
    29 18 classifications:
    29 19    (1)  The aggregate biodiesel blended fuel gallonage
    29 20 which is the aggregate number of gallons of biodiesel
    29 21 blended fuel.
    29 22    (2)  The aggregate nonblended diesel fuel gallonage
    29 23 which is the aggregate number of gallons of diesel
    29 24 fuel which is not biodiesel or biodiesel blended fuel.
    29 25    b.  The aggregate biodiesel gallonage is the total
    29 26 number of gallons of biodiesel which may or may not be
    29 27 a component of biodiesel blended fuel, and which all
    29 28 retail dealers sell and dispense from motor fuel pumps
    29 29 as provided in paragraph "a" during a twelve=month
    29 30 period beginning January 1 and ending December 31.
    29 31    6.  a.  The aggregate ethanol distribution
    29 32 percentage is the aggregate ethanol gallonage
    29 33 expressed as a percentage of the aggregate gasoline
    29 34 gallonage calculated for a twelve=month period
    29 35 beginning January 1 and ending December 31.
    29 36    b.  The aggregate per gallon distribution
    29 37 percentage which is the aggregate ethanol blended
    29 38 gasoline gallonage expressed as a percentage of the
    29 39 aggregate gasoline gallonage.
    29 40    7.  a.  The aggregate biodiesel distribution
    29 41 percentage is the aggregate biodiesel gallonage
    29 42 expressed as a percentage of the aggregate diesel fuel
    29 43 gallonage calculated for a twelve=month period
    29 44 beginning January 1 and ending December 31.
    29 45    b.  The aggregate per gallon distribution
    29 46 percentage is the aggregate biodiesel blended fuel
    29 47 gallonage expressed as a percentage of the aggregate
    29 48 diesel fuel gallonage.
    29 49    8.  The aggregate biofuel distribution percentage
    29 50 is the sum of the aggregate ethanol gallonage plus the
    30  1 aggregate biodiesel gallonage expressed as a
    30  2 percentage of the sum of the aggregate gasoline
    30  3 gallonage plus the aggregate diesel fuel gallonage.
    30  4    9.  a.  The biofuel threshold percentage is the
    30  5 aggregate biofuel distribution percentage required to
    30  6 be met during a key determination period as provided
    30  7 in section 452A.34.
    30  8    b.  The biofuel threshold percentage disparity is a
    30  9 positive percentage difference obtained by taking the
    30 10 minuend which is the aggregate biofuel distribution
    30 11 percentage and subtracting from it the subtrahend
    30 12 which is the biofuel threshold percentage, as
    30 13 calculated for a key determination period as provided
    30 14 in section 452A.34.
    30 15    c.  The biofuel threshold disparity factor is the
    30 16 biofuel threshold percentage disparity expressed as a
    30 17 positive number rounded to the nearest tenth of a
    30 18 whole number.
    30 19    Sec. 49.  NEW SECTION.  452A.32  SCHEDULE FOR
    30 20 AVERAGING BIOFUEL CONTENT IN MOTOR FUEL.
    30 21    1.  The department shall establish a schedule
    30 22 listing the average amount of ethanol contained in E=
    30 23 85 gasoline as defined in section 214A.1, for use by a
    30 24 retail dealer in calculating the retail dealer's total
    30 25 ethanol gallonage, as provided in section 452A.31.  In
    30 26 establishing the schedule, the department shall assume
    30 27 that a retail dealer begins selling and dispensing E=
    30 28 85 gasoline from a motor fuel pump on the first day of
    30 29 a month and ceases selling and distributing E=85
    30 30 gasoline on the last day of a month.
    30 31    2.  The department shall establish a schedule
    30 32 listing the average amount of biodiesel contained in
    30 33 biodiesel blended fuel as defined in section 214A.1,
    30 34 for use by a retail dealer in calculating the retail
    30 35 dealer's total biodiesel gallonage, as provided in
    30 36 section 452A.31.  In establishing the schedule, the
    30 37 department shall assume that a retail dealer begins
    30 38 selling and dispensing biodiesel blended fuel from a
    30 39 motor fuel pump on the first day of a month and ceases
    30 40 selling and distributing biodiesel blended fuel on the
    30 41 last day of a month.
    30 42    Sec. 50.  NEW SECTION.  452A.33  REPORTING
    30 43 REQUIREMENTS.
    30 44    1.  a.  Each retail dealer shall report its total
    30 45 motor fuel gallonage for a determination period as
    30 46 follows:
    30 47    (1)  Its total gasoline gallonage and its total
    30 48 ethanol gallonage, including for each classification
    30 49 and subclassification as provided in section 452A.31.
    30 50    (2)  Its total diesel fuel gallonage and its total
    31  1 biodiesel gallonage, including for each classification
    31  2 and subclassification as provided in section 452A.31.
    31  3    b.  The retail dealer shall prepare and submit the
    31  4 report in a manner and according to procedures
    31  5 required by the department.  The department may
    31  6 require that retail dealers report to the department
    31  7 on an annual, quarterly, or monthly basis.
    31  8    c.  The information included in a report submitted
    31  9 by a retail dealer is deemed to be a trade secret,
    31 10 protected as a confidential record pursuant to section
    31 11 22.7.
    31 12    2.  On or before February 1 the department shall
    31 13 deliver a report to the governor and the legislative
    31 14 services agency.  The report shall compile information
    31 15 reported by retail dealers to the department as
    31 16 provided in this section and shall at least include
    31 17 all of the following:
    31 18    a.  (1)  The aggregate gasoline gallonage for the
    31 19 previous determination period, including for all
    31 20 classifications and subclassifications as provided in
    31 21 section 452A.31.
    31 22    (2)  The aggregate diesel fuel gallonage for the
    31 23 previous determination period, including for all
    31 24 classifications and subclassifications as provided in
    31 25 section 452A.31.
    31 26    b.  (1)  The aggregate ethanol distribution
    31 27 percentage for the previous determination period.
    31 28    (2)  The aggregate biodiesel distribution
    31 29 percentage for the previous determination period.
    31 30    c.  (1)  The projected aggregate gasoline
    31 31 gallonage, the aggregate ethanol gallonage, and the
    31 32 projected aggregate ethanol distribution percentage,
    31 33 for each future key determination period as provided
    31 34 in section 452A.34.
    31 35    (2)  The projected aggregate diesel fuel gallonage,
    31 36 the projected aggregate biodiesel gallonage, and the
    31 37 projected aggregate biodiesel distribution percentage,
    31 38 for each future key determination period as provided
    31 39 in section 452A.34.
    31 40    (3)  The projected aggregate biofuel gallonage and
    31 41 the projected aggregate biofuel distribution
    31 42 percentage, for each future key determination period
    31 43 as provided in section 452A.34.
    31 44    d.  The biofuel threshold percentage required for
    31 45 the next key determination period as provided in
    31 46 section 452A.34 and any projected biofuel threshold
    31 47 percentage disparity, including the amount of
    31 48 additional biofuel required to be sold and dispensed
    31 49 from all motor fuel pumps located at all retail motor
    31 50 fuel sites in this state in order to meet the next
    32  1 biofuel threshold percentage.
    32  2    e.  The report shall not provide information
    32  3 regarding motor fuel or biofuel which is sold and
    32  4 dispensed by an individual retail dealer or at a
    32  5 particular retail motor fuel site.  The report shall
    32  6 not include a trade secret protected as a confidential
    32  7 record pursuant to section 22.7.
    32  8    3.  On or before February 1 of each year, the state
    32  9 department of transportation shall deliver a report to
    32 10 the governor and the legislative services agency
    32 11 providing information regarding flexible fuel vehicles
    32 12 registered in this state during the previous
    32 13 determination period.  The information shall state all
    32 14 of the following:
    32 15    a.  The aggregate number of flexible fuel vehicles.
    32 16    b.  Of the aggregate number of flexible fuel
    32 17 vehicles, all of the following:
    32 18    (1)  The number of flexible fuel vehicles according
    32 19 to the year of manufacture.
    32 20    (2)  The number of passenger vehicles and the
    32 21 number of passenger vehicles according to the year of
    32 22 manufacture.
    32 23    (3)  The number of light pickup trucks and the
    32 24 number of light pickup trucks according to the year of
    32 25 manufacture.
    32 26    Sec. 51.  NEW SECTION.  452A.34  BIOFUEL THRESHOLD
    32 27 PERCENTAGES.
    32 28    1.  The department shall determine whether a
    32 29 biofuel threshold percentage has been met on the
    32 30 following key determination dates:
    32 31    a.  On March 1, 2010, the department must determine
    32 32 that the aggregate biofuel distribution percentage was
    32 33 at least ten percent in order to meet the first
    32 34 biofuel threshold percentage for the key determination
    32 35 period beginning on January 1, 2009, and ending
    32 36 December 31, 2009.
    32 37    b.  On March 1, 2015, the department must determine
    32 38 that the aggregate biofuel distribution percentage was
    32 39 at least fifteen percent in order to meet the second
    32 40 biofuel threshold percentage for the key determination
    32 41 period beginning on January 1, 2014, and ending
    32 42 December 31, 2014.
    32 43    c.  On March 1, 2020, the department must determine
    32 44 that the aggregate biofuel distribution percentage was
    32 45 at least twenty percent in order to meet the third
    32 46 biofuel threshold percentage for the key determination
    32 47 period beginning on January 1, 2019, and ending
    32 48 December 31, 2019.
    32 49    d.  On March 1, 2025, the department must determine
    32 50 that the aggregate biofuel distribution percentage was
    33  1 at least twenty=five percent in order to meet the
    33  2 fourth biofuel threshold percentage for the key
    33  3 determination period beginning on January 1, 2024, and
    33  4 ending December 31, 2024.
    33  5    2.  If on a key determination date, a biofuel
    33  6 threshold percentage has not been met, the department
    33  7 shall calculate the biofuel threshold percentage
    33  8 disparity and the resulting biofuel threshold
    33  9 disparity factor as provided in section 452A.31 which
    33 10 shall be used to determine the special rate of the
    33 11 excise tax imposed on each gallon of nonethanol
    33 12 blended gasoline as provided in section 452A.3.
    33 13                       DIVISION VI
    33 14     COORDINATING PROVISIONS == GOVERNMENT VEHICLES
    33 15    Sec. 52.  Section 8A.362, subsection 3, Code 2005,
    33 16 is amended to read as follows:
    33 17    3.  a.  The director shall provide for a record
    33 18 system for the keeping of records of the total number
    33 19 of miles state=owned motor vehicles are driven and the
    33 20 per=mile cost of operation of each motor vehicle.
    33 21 Every state officer or employee shall keep a record
    33 22 book to be furnished by the director in which the
    33 23 officer or employee shall enter all purchases of
    33 24 gasoline, lubricating oil, grease, and other
    33 25 incidental expense in the operation of the motor
    33 26 vehicle assigned to the officer or employee, giving
    33 27 the quantity and price of each purchase, including the
    33 28 cost and nature of all repairs on the motor vehicle.
    33 29 Each operator of a state=owned motor vehicle shall
    33 30 promptly prepare a report at the end of each month on
    33 31 forms furnished by the director and forwarded to the
    33 32 director, giving the information the director may
    33 33 request in the report.  Each month the director shall
    33 34 compile the costs and mileage of state=owned motor
    33 35 vehicles from the reports and keep a cost history for
    33 36 each motor vehicle and the costs shall be reduced to a
    33 37 cost=per=mile basis for each motor vehicle.  The
    33 38 director shall call to the attention of an elected
    33 39 official or the head of any state agency to which a
    33 40 motor vehicle has been assigned any evidence of the
    33 41 mishandling or misuse of a state=owned motor vehicle
    33 42 which is called to the director's attention.
    33 43    b.  A motor vehicle operated under this subsection
    33 44 shall not operate on gasoline other than ethanol
    33 45 blended gasoline blended with at least ten percent
    33 46 ethanol as defined in section 214A.1, unless under
    33 47 emergency circumstances.  A state=issued credit card
    33 48 used to purchase gasoline shall not be valid to
    33 49 purchase gasoline other than ethanol blended gasoline
    33 50 blended with at least ten percent ethanol, if
    34  1 commercially available.  The motor vehicle shall also
    34  2 be affixed with a brightly visible sticker which
    34  3 notifies the traveling public that the motor vehicle
    34  4 is being operated on ethanol blended gasoline blended
    34  5 with ethanol.  However, the sticker is not required to
    34  6 be affixed to an unmarked vehicle used for purposes of
    34  7 providing law enforcement or security.
    34  8    Sec. 53.  Section 8A.362, subsection 5, paragraph
    34  9 a, subparagraphs (1) and (2), Code 2005, are amended
    34 10 to read as follows:
    34 11    (1)  A fuel blended with not more than fifteen
    34 12 percent E=85 gasoline and at least eighty=five percent
    34 13 ethanol as provided in section 214A.2.
    34 14    (2)  A B=20 biodiesel blended fuel which is a
    34 15 mixture of diesel fuel and processed soybean oil as
    34 16 provided in section 214A.2.  At least twenty percent
    34 17 of the mixed fuel by volume must be processed soybean
    34 18 oil.
    34 19    Sec. 54.  Section 216B.3, subsection 16, paragraph
    34 20 a, Code 2005, is amended to read as follows:
    34 21    a.  A motor vehicle purchased by the commission
    34 22 shall not operate on gasoline other than ethanol
    34 23 blended gasoline blended with at least ten percent
    34 24 ethanol as defined in section 214A.1.  A state issued
    34 25 credit card used to purchase gasoline shall not be
    34 26 valid to purchase gasoline other than ethanol blended
    34 27 gasoline blended with at least ten percent ethanol.
    34 28 The motor vehicle shall also be affixed with a
    34 29 brightly visible sticker which notifies the traveling
    34 30 public that the motor vehicle is being operated on
    34 31 ethanol blended gasoline blended with ethanol.
    34 32 However, the sticker is not required to be affixed to
    34 33 an unmarked vehicle used for purposes of providing law
    34 34 enforcement or security.
    34 35    Sec. 55.  Section 216B.3, subsection 16, paragraph
    34 36 b, subparagraph (1), subparagraph subdivisions (a) and
    34 37 (b), Code 2005, are amended to read as follows:
    34 38    (a)  A fuel blended with not more than fifteen
    34 39 percent E=85 gasoline and at least eighty=five percent
    34 40 ethanol as provided in section 214A.2.
    34 41    (b)  A B=20 biodiesel blended fuel which is a
    34 42 mixture of diesel fuel and processed soybean oil as
    34 43 provided in section 214A.2.  At least twenty percent
    34 44 of the mixed fuel by volume must be processed soybean
    34 45 oil.
    34 46    Sec. 56.  Section 260C.19A, subsection 1, Code
    34 47 2005, is amended to read as follows:
    34 48    1.  A motor vehicle purchased by or used under the
    34 49 direction of the board of directors to provide
    34 50 services to a merged area shall not operate on
    35  1 gasoline other than ethanol blended gasoline blended
    35  2 with at least ten percent ethanol as defined in
    35  3 section 214A.1.  The motor vehicle shall also be
    35  4 affixed with a brightly visible sticker which notifies
    35  5 the traveling public that the motor vehicle is being
    35  6 operated on ethanol blended gasoline blended with
    35  7 ethanol.  However, the sticker is not required to be
    35  8 affixed to an unmarked vehicle used for purposes of
    35  9 providing law enforcement or security.
    35 10    Sec. 57.  Section 260C.19A, subsection 2, paragraph
    35 11 a, subparagraphs (1) and (2), Code 2005, are amended
    35 12 to read as follows:
    35 13    (1)  A fuel blended with not more than fifteen
    35 14 percent E=85 gasoline and at least eighty=five percent
    35 15 ethanol as provided in section 214A.2.
    35 16    (2)  A B=20 biodiesel blended fuel which is a
    35 17 mixture of diesel fuel and processed soybean oil as
    35 18 provided in section 214A.2.  At least twenty percent
    35 19 of the mixed fuel by volume must be processed soybean
    35 20 oil.
    35 21    Sec. 58.  Section 262.25A, subsection 2, Code 2005,
    35 22 is amended to read as follows:
    35 23    2.  A motor vehicle purchased by the institutions
    35 24 shall not operate on gasoline other than ethanol
    35 25 blended gasoline blended with at least ten percent
    35 26 ethanol as defined in section 214A.1, unless under
    35 27 emergency circumstances.  A state=issued credit card
    35 28 used to purchase gasoline shall not be valid to
    35 29 purchase gasoline other than ethanol blended gasoline
    35 30 blended with at least ten percent ethanol if
    35 31 commercially available.  The motor vehicle shall also
    35 32 be affixed with a brightly visible sticker which
    35 33 notifies the traveling public that the motor vehicle
    35 34 is being operated on ethanol blended gasoline blended
    35 35 with ethanol.  However, the sticker is not required to
    35 36 be affixed to an unmarked vehicle used for purposes of
    35 37 providing law enforcement or security.
    35 38    Sec. 59.  Section 262.25A, subsection 3, paragraph
    35 39 a, subparagraphs (1) and (2), Code 2005, are amended
    35 40 to read as follows:
    35 41    (1)  A fuel blended with not more than fifteen
    35 42 percent E=85 gasoline and at least eighty=five percent
    35 43 ethanol as provided in section 214A.2.
    35 44    (2)  A B=20 biodiesel blended fuel which is a
    35 45 mixture of processed soybean oil and diesel fuel as
    35 46 provided in section 214A.2.  At least twenty percent
    35 47 of the fuel by volume must be processed soybean oil.
    35 48    Sec. 60.  Section 279.34, Code 2005, is amended to
    35 49 read as follows:
    35 50    279.34  MOTOR VEHICLES REQUIRED TO OPERATE ON
    36  1 ETHANOL=BLENDED ETHANOL BLENDED GASOLINE.
    36  2    A motor vehicle purchased by or used under the
    36  3 direction of the board of directors to provide
    36  4 services to a school corporation shall not, on or
    36  5 after January 1, 1993, operate on gasoline other than
    36  6 ethanol blended gasoline blended with at least ten
    36  7 percent ethanol as defined in section 214A.1.  The
    36  8 motor vehicle shall also be affixed with a brightly
    36  9 visible sticker which notifies the traveling public
    36 10 that the motor vehicle is being operated on ethanol
    36 11 blended gasoline blended with ethanol.  However, the
    36 12 sticker is not required to be affixed to an unmarked
    36 13 vehicle used for purposes of providing law enforcement
    36 14 or security.
    36 15    Sec. 61.  Section 307.21, subsection 4, paragraph
    36 16 d, Code 2005, is amended to read as follows:
    36 17    d.  A motor vehicle purchased by the administrator
    36 18 shall not operate on gasoline other than ethanol
    36 19 blended gasoline blended with at least ten percent
    36 20 ethanol as defined in section 214A.1.  A state=issued
    36 21 credit card used to purchase gasoline shall not be
    36 22 valid to purchase gasoline other than ethanol blended
    36 23 gasoline blended with at least ten percent ethanol.
    36 24 The motor vehicle shall also be affixed with a
    36 25 brightly visible sticker which notifies the traveling
    36 26 public that the motor vehicle is being operated on
    36 27 ethanol blended gasoline blended with ethanol.
    36 28 However, the sticker is not required to be affixed to
    36 29 an unmarked vehicle used for purposes of providing law
    36 30 enforcement or security.
    36 31    Sec. 62.  Section 307.21, subsection 5, paragraph
    36 32 a, subparagraphs (1) and (2), Code 2005, are amended
    36 33 to read as follows:
    36 34    (1)  A fuel blended with not more than fifteen
    36 35 percent E=85 gasoline and at least eighty=five percent
    36 36 ethanol as provided in section 214A.2.
    36 37    (2)  A B=20 biodiesel blended fuel which is a
    36 38 mixture of processed soybean oil and diesel fuel as
    36 39 provided in section 214A.2.  At least twenty percent
    36 40 of the fuel by volume must be processed soybean oil.
    36 41    Sec. 63.  Section 331.908, Code 2005, is amended to
    36 42 read as follows:
    36 43    331.908  MOTOR VEHICLES REQUIRED TO OPERATE ON
    36 44 ETHANOL=BLENDED ETHANOL BLENDED GASOLINE.
    36 45    A motor vehicle purchased or used by a county to
    36 46 provide county services shall not, on or after January
    36 47 1, 1993, operate on gasoline other than ethanol
    36 48 blended gasoline blended with at least ten percent
    36 49 ethanol as defined in section 214A.1.  The motor
    36 50 vehicle shall also be affixed with a brightly visible
    37  1 sticker which notifies the traveling public that the
    37  2 motor vehicle is being operated on ethanol blended
    37  3 gasoline blended with ethanol.  However, the sticker
    37  4 is not required to be affixed to an unmarked vehicle
    37  5 used for purposes of providing law enforcement or
    37  6 security.
    37  7    Sec. 64.  Section 364.20, Code 2005, is amended to
    37  8 read as follows:
    37  9    364.20  MOTOR VEHICLES REQUIRED TO OPERATE ON
    37 10 ETHANOL=BLENDED ETHANOL BLENDED GASOLINE.
    37 11    A motor vehicle purchased or used by a city to
    37 12 provide city services shall not, on or after January
    37 13 1, 1993, operate on gasoline other than ethanol
    37 14 blended gasoline blended with at least ten percent
    37 15 ethanol as defined in section 214A.1.  The motor
    37 16 vehicle shall also be affixed with a brightly visible
    37 17 sticker which notifies the traveling public that the
    37 18 motor vehicle is being operated on ethanol blended
    37 19 gasoline blended with ethanol.  However, the sticker
    37 20 is not required to be affixed to an unmarked vehicle
    37 21 used for purposes of providing law enforcement or
    37 22 security.
    37 23    Sec. 65.  Section 904.312A, subsection 1, Code
    37 24 2005, is amended to read as follows:
    37 25    1.  A motor vehicle purchased by the department
    37 26 shall not operate on gasoline other than ethanol
    37 27 blended gasoline blended with at least ten percent
    37 28 ethanol as defined in section 214A.1.  A state=issued
    37 29 credit card used to purchase gasoline shall not be
    37 30 valid to purchase gasoline other than ethanol blended
    37 31 gasoline blended with at least ten percent ethanol.
    37 32 The motor vehicle shall also be affixed with a
    37 33 brightly visible sticker which notifies the traveling
    37 34 public that the motor vehicle is being operated on
    37 35 ethanol blended gasoline blended with ethanol.
    37 36 However, the sticker is not required to be affixed to
    37 37 an unmarked vehicle used for purposes of providing law
    37 38 enforcement or security.
    37 39    Sec. 66.  Section 904.312A, subsection 2, paragraph
    37 40 a, subparagraphs (1) and (2), Code 2005, are amended
    37 41 to read as follows:
    37 42    (1)  A fuel blended with not more than fifteen
    37 43 percent E=85 gasoline and at least eighty=five percent
    37 44 ethanol as provided in section 214A.2.
    37 45    (2)  A B=20 biodiesel blended fuel which is a
    37 46 mixture of diesel fuel and processed soybean oil as
    37 47 provided in section 214A.2.  At least twenty percent
    37 48 of the mixed fuel by volume must be processed soybean
    37 49 oil.
    37 50                      DIVISION VII
    38  1        COORDINATING PROVISIONS == MISCELLANEOUS
    38  2    Sec. 67.  Section 15.401, Code Supplement 2005, is
    38  3 amended to read as follows:
    38  4    15.401  E=85 BLENDED GASOLINE RENEWABLE FUELS.
    38  5    1.  As used in this section, unless the context
    38  6 otherwise requires, "biodiesel", "biodiesel blended
    38  7 fuel", "E=85 gasoline", and "retail motor fuel site"
    38  8 mean the same as defined in section 214A.1.
    38  9    2.  The department shall provide a cost=share
    38 10 program for financial incentives for the installation
    38 11 or conversion of infrastructure used by service
    38 12 stations retail motor fuel sites to do all of the
    38 13 following:
    38 14    a.  sell Sell and dispense E=85 blended gasoline
    38 15 and for the installation or conversion of.
    38 16    b.  Install or convert infrastructure required to
    38 17 establish on=site and off=site terminal facilities
    38 18 that store biodiesel or biodiesel blended fuel for
    38 19 distribution to service stations retail motor fuel
    38 20 sites.
    38 21    3.  The department shall provide for an addition of
    38 22 at least thirty new or converted E=85 gasoline retail
    38 23 outlets and four new or converted on=site or off=site
    38 24 terminal facilities with a maximum expenditure of
    38 25 three hundred twenty=five thousand dollars per year
    38 26 for the fiscal period beginning July 1, 2005, and
    38 27 ending June 30, 2008.  The department may provide for
    38 28 the marketing of these products in conjunction with
    38 29 this infrastructure program.
    38 30    Sec. 68.  Section 159A.2, Code 2005, is amended by
    38 31 adding the following new subsections:
    38 32    NEW SUBSECTION.  0A.  "Biodiesel" and "biodiesel
    38 33 blended fuel" mean the same as defined in section
    38 34 214A.1.
    38 35    NEW SUBSECTION.  3A.  "Department" means the
    38 36 department of agriculture and land stewardship.
    38 37    NEW SUBSECTION.  3B.  "Ethanol blended gasoline"
    38 38 means the same as defined in section 214A.1.
    38 39    Sec. 69.  Section 159A.2, subsection 6, Code 2005,
    38 40 is amended by striking the subsection and inserting in
    38 41 lieu thereof the following:
    38 42    6.  "Renewable fuel" means the same as defined in
    38 43 section 214A.1.
    38 44    Sec. 70.  Section 159A.2, subsection 8, Code 2005,
    38 45 is amended by striking the subsection.
    38 46    Sec. 71.  Section 159A.3, subsection 3, Code 2005,
    38 47 is amended to read as follows:
    38 48    3.  a.  A chief purpose of the office is to further
    38 49 the production and consumption of ethanol fuel blended
    38 50 gasoline in this state.  The office shall be the
    39  1 primary state agency charged with the responsibility
    39  2 to promote public consumption of ethanol fuel blended
    39  3 gasoline.
    39  4    b.  The office shall promote the production and
    39  5 consumption of soydiesel fuel biodiesel and biodiesel
    39  6 blended fuel in this state.
    39  7    Sec. 72.  Section 214A.19, subsection 1, unnumbered
    39  8 paragraph 1, Code 2005, is amended to read as follows:
    39  9    The department of natural resources, conditioned
    39 10 upon the availability of funds, is authorized to award
    39 11 demonstration grants to persons who purchase vehicles
    39 12 which operate on alternative fuels, including but not
    39 13 limited to, high blend ethanol E=85 gasoline,
    39 14 biodiesel, compressed natural gas, electricity, solar
    39 15 energy, or hydrogen.  A grant shall be for the purpose
    39 16 of conducting research connected with the fuel or the
    39 17 vehicle, and not for the purchase of the vehicle
    39 18 itself, except that the money may be used for the
    39 19 purchase of the vehicle if all of the following
    39 20 conditions are satisfied:
    39 21    Sec. 73.  Section 307.20, Code 2005, is amended to
    39 22 read as follows:
    39 23    307.20  BIODIESEL AND BIODIESEL BLENDED FUEL
    39 24 REVOLVING FUND.
    39 25    1.  A biodiesel and biodiesel blended fuel
    39 26 revolving fund is created in the state treasury.  The
    39 27 biodiesel and biodiesel blended fuel revolving fund
    39 28 shall be administered by the department and shall
    39 29 consist of moneys received from the sale of EPAct
    39 30 credits banked by the department on April 19, 2001,
    39 31 moneys appropriated by the general assembly, and any
    39 32 other moneys obtained or accepted by the department
    39 33 for deposit in the fund.  Moneys in the fund are
    39 34 appropriated to and shall be used by the department
    39 35 for the purchase of biodiesel and biodiesel blended
    39 36 fuel for use in department vehicles.  The department
    39 37 shall submit an annual report not later than January
    39 38 31 to the members of the general assembly and the
    39 39 legislative services agency, of the expenditures made
    39 40 from the fund during the preceding fiscal year.
    39 41 Section 8.33 does not apply to any moneys in the fund
    39 42 and, notwithstanding section 12C.7, subsection 2,
    39 43 earnings or interest on moneys deposited in the fund
    39 44 shall be credited to the fund.
    39 45    2.  A department departmental motor vehicle
    39 46 operating on using biodiesel or biodiesel blended fuel
    39 47 shall be affixed with a brightly visible sticker that
    39 48 notifies the traveling public that the motor vehicle
    39 49 uses biodiesel blended fuel.
    39 50    3.  For purposes of this section the following
    40  1 definitions apply:
    40  2    a.  "Biodiesel "Biodiesel" and "biodiesel blended
    40  3 fuel" means soydiesel fuel mean the same as defined in
    40  4 section 159A.2 214A.1.
    40  5    b.  "EPAct credit" means a credit issued pursuant
    40  6 to the federal Energy Policy Act (EPAct), 42 U.S.C. }
    40  7 13201 et seq.
    40  8    Sec. 74.  Section 452A.2, subsection 3, Code
    40  9 Supplement 2005, is amended to read as follows:
    40 10    3.  "Blender" means a person who owns and blends
    40 11 alcohol ethanol with gasoline to produce ethanol
    40 12 blended gasoline and blends the product at a
    40 13 nonterminal location.  The blender person is not
    40 14 restricted to blending alcohol ethanol with gasoline.
    40 15 Products blended with gasoline other than grain
    40 16 alcohol ethanol are taxed as gasoline.  "Blender" also
    40 17 means a person blending two or more special fuel
    40 18 products at a nonterminal location where the tax has
    40 19 not been paid on all of the products blended.  This
    40 20 blend is taxed as a special fuel.
    40 21    Sec. 75.  Section 452A.2, Code Supplement 2005, is
    40 22 amended by adding the following new subsection:
    40 23    NEW SUBSECTION.  9A.  "E=85 gasoline" means the
    40 24 same as defined in section 214A.1.
    40 25    Sec. 76.  Section 452A.2, subsection 11, Code
    40 26 Supplement 2005, is amended to read as follows:
    40 27    11.  "Ethanol blended gasoline" means motor fuel
    40 28 containing at least ten percent alcohol distilled from
    40 29 cereal grains the same as defined in section 214A.1.
    40 30    Sec. 77.  Section 452A.2, subsection 19, unnumbered
    40 31 paragraph 1, Code Supplement 2005, is amended to read
    40 32 as follows:
    40 33    "Motor fuel" means both motor fuel as defined in
    40 34 section 214A.1 and includes all of the following:
    40 35    Sec. 78.  Section 452A.2, subsection 21, Code
    40 36 Supplement 2005, is amended to read as follows:
    40 37    21.  "Nonterminal storage facility" means a
    40 38 facility where motor fuel or special fuel, other than
    40 39 liquefied petroleum gas, is stored that is not
    40 40 supplied by a pipeline or a marine vessel.
    40 41 "Nonterminal storage facility" includes a facility
    40 42 that manufactures products such as alcohol ethanol as
    40 43 defined in section 214A.1, biofuel, blend stocks, or
    40 44 additives which may be used as motor fuel or special
    40 45 fuel, other than liquefied petroleum gas, for
    40 46 operating motor vehicles or aircraft.
    40 47    Sec. 79.  Section 452A.3, subsection 1B, Code
    40 48 Supplement 2005, is amended to read as follows:
    40 49    1B.  An excise tax of seventeen cents is imposed on
    40 50 each gallon of E=85 gasoline, which contains at least
    41  1 eighty=five percent denatured alcohol by volume from
    41  2 the first day of April until the last day of October
    41  3 or seventy percent denatured alcohol from the first
    41  4 day of November until the last day of March, used for
    41  5 the privilege of operating motor vehicles in this
    41  6 state as defined in section 214A.1, subject to the
    41  7 determination provided in subsection 1C.
    41  8    Sec. 80.  Section 452A.6, Code 2005, is amended to
    41  9 read as follows:
    41 10    452A.6  ETHANOL BLENDED GASOLINE AND OTHER PRODUCTS
    41 11 == BLENDER'S LICENSE.
    41 12    1.  a.  A person other than a supplier, restrictive
    41 13 supplier, or importer licensed under this division,
    41 14 who blends gasoline with alcohol distilled from cereal
    41 15 grains so that the blend contains at least ten percent
    41 16 alcohol distilled from cereal grains ethanol as
    41 17 defined in section 214A.1 in order to formulate
    41 18 ethanol blended gasoline, shall obtain a blender's
    41 19 license.
    41 20    b.  A person who blends two or more special fuel
    41 21 products or sells one hundred percent biofuel shall
    41 22 obtain a blender's license.
    41 23    2.  The A blender's license shall be obtained by
    41 24 following the procedure under section 452A.4 and the
    41 25 blender's license is subject to the same restrictions
    41 26 as contained in that section.
    41 27    3.  A blender required to obtain a license pursuant
    41 28 to this section shall maintain records as required by
    41 29 section 452A.10 as to motor fuel, alcohol ethanol,
    41 30 ethanol blended gasoline, and special fuels.
    41 31                      DIVISION VIII
    41 32                     CHANGE OF TERMS
    41 33    Sec. 81.  CHANGE OF TERMS.
    41 34    1.  Sections 8A.362, 101.21, 159A.4, 214.1, 214.11,
    41 35 214A.1, 214A.2, 214A.4, 214A.5, 214A.7, 214A.8,
    41 36 214A.9, 214A.10, 214A.16, 214A.17, 214A.18, 306C.11,
    41 37 312.1, 321.56, 423.14, 452A.63, 452A.66, and 452A.78,
    41 38 Code 2005, are amended by striking from the provisions
    41 39 the words "motor vehicle fuel" and inserting the
    41 40 following:  "motor fuel".
    41 41    2.  Sections 214.1, 214.3, 214.9, 214.11, and
    41 42 214A.16, Code 2005, are amended by striking the words
    41 43 "motor vehicle fuel pump" or "motor vehicle fuel
    41 44 pumps" and inserting the following:  "motor fuel pump"
    41 45 or "motor fuel pumps".
    41 46    3.  Sections 159A.3 and 214A.17, Code 2005, are
    41 47 amended by striking from the provisions the words
    41 48 "oxygenate octane enhancers" and inserting the
    41 49 following:  "oxygenates".
    41 50    4.  Sections 214A.1, 214A.4, 214A.5, 214A.7,
    42  1 214A.8, and 214A.10, Code 2005, are amended by
    42  2 striking from the provisions the words "oxygenate
    42  3 octane enhancer" and inserting the following:
    42  4 "oxygenate".>
    42  5 #2.  Title page, by striking lines 1 through 7 and
    42  6 inserting the following:  <An Act relating to
    42  7 renewable fuel and energy, providing incentives for
    42  8 infrastructure used to store and dispense renewable
    42  9 fuel, providing for income tax credits and excise
    42 10 taxes, providing for penalties, and providing
    42 11 effective and applicability dates, including
    42 12 retroactive applicability.>
    42 13
    42 14
    42 15                               
    42 16 DAVID JOHNSON
    42 17 THOMAS RIELLY
    42 18 SF 2383.201 81
    42 19 da/sh/5658

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