Senate Amendment 3208
PAG LIN
1 1 Amend Senate File 464 as follows:
1 2 #1. By striking everything after the enacting
1 3 clause and inserting the following:
1 4 <DIVISION I
1 5 BIODIESEL FUEL STANDARD
1 6 Section 1. FINDINGS AND PURPOSE OF THE ACT ==
1 7 SUSTAINABLE BIODIESEL INITIATIVE.
1 8 1. The general assembly finds and declares that
1 9 access to affordable energy has become essential to
1 10 the functioning of modern economies. However, the
1 11 uneven distribution of energy supplies among countries
1 12 and the critical need for energy has created
1 13 significant vulnerabilities to this nation. Threats
1 14 to national energy security include the political
1 15 instability of several energy producing countries, the
1 16 manipulation of energy supplies, the competition over
1 17 energy sources, and attacks upon energy supply
1 18 infrastructure.
1 19 2. The purpose of this Act is to accomplish the
1 20 vital goals of promoting sustainable biodiesel that
1 21 will demonstrate environmental stewardship across its
1 22 life cycle by maximizing a net energy balance,
1 23 minimizing negative impacts on natural ecosystems,
1 24 both globally and locally, and adding value to Iowa
1 25 commodities; creating wealth; and enhancing the entire
1 26 community of energy stakeholders.
1 27 Sec. 2. Section 15G.201A, Code 2009, is amended to
1 28 read as follows:
1 29 15G.201A CLASSIFICATION DESIGNATION OF RENEWABLE
1 30 FUEL.
1 31 For purposes of this division subchapter, ethanol
1 32 blended fuel and biodiesel fuel shall be classified
1 33 designated in the same manner as provided in section
1 34 214A.2.
1 35 Sec. 3. Section 15G.203, subsection 1, paragraph
1 36 a, subparagraph (1), subparagraph division (b), Code
1 37 2009, is amended to read as follows:
1 38 (b) Store, blend, Blend and dispense motor fuel
1 39 from a motor fuel blender pump, as required in this
1 40 subparagraph subdivision division. The ethanol
1 41 infrastructure must provide for the storage of ethanol
1 42 or ethanol blended gasoline, or for blending ethanol
1 43 with gasoline. The ethanol infrastructure must at
1 44 least include a motor fuel blender pump which
1 45 dispenses different classifications designations of
1 46 ethanol blended gasoline and allows E=85 gasoline to
1 47 be dispensed at all times that the blender pump is
1 48 operating.
1 49 Sec. 4. Section 15G.203, subsection 1, paragraph
1 50 a, subparagraph (2), Code 2009, is amended to read as
2 1 follows:
2 2 (2) Biodiesel infrastructure shall be designed and
2 3 used exclusively to do any of the following:
2 4 (a) Store and dispense biodiesel or biodiesel
2 5 blended fuel designated as B=6 or higher.
2 6 (b) Blend or dispense biodiesel fuel from a motor
2 7 fuel blender pump which dispenses different
2 8 designations of biodiesel fuel and allows biodiesel
2 9 fuel designated B=6 or higher to be dispensed at all
2 10 times that the blender pump is operating.
2 11 Sec. 5. Section 15G.204, subsection 3, paragraph
2 12 a, subparagraph (1), Code 2009, is amended to read as
2 13 follows:
2 14 (1) For improvements to store, blend, or dispense
2 15 biodiesel fuel from B=2 B=5 or higher but not as high
2 16 as B=99, fifty percent of the actual cost of making
2 17 the improvements or fifty thousand dollars, whichever
2 18 is less.
2 19 Sec. 6. Section 214A.2, subsection 4, paragraph b,
2 20 subparagraph (2), Code 2009, is amended by striking
2 21 the subparagraph.
2 22 Sec. 7. NEW SECTION. 214A.2C STANDARD FOR DIESEL
2 23 FUEL == BIODIESEL REQUIRED.
2 24 1. A retail dealer shall not advertise for sale or
2 25 sell diesel fuel in this state, unless it is biodiesel
2 26 fuel designated as B=5 or higher as specified in
2 27 section 214A.2.
2 28 2. Subsection 1 does not apply to diesel fuel used
2 29 to power any of the following:
2 30 a. (1) A motor located at an electric generating
2 31 plant regulated by the United States nuclear
2 32 regulatory commission.
2 33 (2) This paragraph "a" is repealed thirty days
2 34 after the United States nuclear regulatory commission
2 35 approves the use of biodiesel fuel designated as B=5
2 36 or higher in motors located at electric generating
2 37 plants that it regulates.
2 38 b. A railroad locomotive.
2 39 c. A vehicle used exclusively as an airport
2 40 landing field.
2 41 d. A motor used to temporarily generate power due
2 42 to a disruption in the delivery of electricity or
2 43 natural gas until the delivery of the electricity or
2 44 natural gas may be resumed.
2 45 3. Subsection 1 does not apply during a period
2 46 that the governor issues a biodiesel suspension order.
2 47 a. The biodiesel suspension order must include a
2 48 determination by the governor that any of the
2 49 following exists:
2 50 (1) A lack of infrastructure in this state
3 1 necessary to support the retail sale of biodiesel fuel
3 2 designated as B=5.
3 3 (2) A significant shortage of biodiesel fuel
3 4 designated as B=5 in this state available for retail
3 5 sale in this state.
3 6 (3) A systemic market change in the supplies or
3 7 prices of biodiesel fuel designated B=5 will cause a
3 8 material economic hardship to the state.
3 9 b. The biodiesel suspension order may reduce the
3 10 biodiesel fuel designation provided in subsection 1
3 11 during the period of the suspension. The biodiesel
3 12 suspension order may apply to the entire state or to
3 13 specific counties named in the biodiesel suspension
3 14 order.
3 15 c. The biodiesel suspension order shall take
3 16 effect when published in the Iowa administrative
3 17 bulletin unless the biodiesel suspension order
3 18 specifies a later date. The biodiesel suspension
3 19 order shall terminate on a date certain as specified
3 20 in the biodiesel suspension order.
3 21 Sec. 8. EMERGENCY RULES. The department of
3 22 agriculture and land stewardship shall adopt emergency
3 23 rules under section 17A.4, subsection 3, and section
3 24 17A.5, subsection 2, paragraph "b", to implement the
3 25 provisions of section 214A.2C, as enacted in this Act,
3 26 and the rules shall be effective September 1, 2009.
3 27 Any rules adopted in accordance with this section
3 28 shall also be published as a notice of intended action
3 29 as provided in section 17A.4.
3 30 Sec. 9. EFFECTIVE DATE. This division of this Act
3 31 takes effect on September 1, 2009, except for the
3 32 provisions authorizing the department of agriculture
3 33 and land stewardship to adopt emergency rules and to
3 34 publish a notice of intended action to implement the
3 35 provisions of section 214A.2C, as enacted in this Act,
3 36 which, being deemed of immediate importance, take
3 37 effect upon enactment.
3 38 DIVISION II
3 39 BIOFUEL DESIGNATIONS AND LABELING == PENALTY
3 40 Sec. 10. Section 214A.2, subsection 5, Code 2009,
3 41 is amended to read as follows:
3 42 5. Ethanol blended gasoline shall be designated
3 43 E=xx where "xx" is the volume percent of ethanol in
3 44 the ethanol blended gasoline and biodiesel fuel shall
3 45 be designated B=xx where "xx" is the volume percent of
3 46 biodiesel.
3 47 Sec. 11. Section 214A.3, subsection 2, paragraph
3 48 b, subparagraph (2), Code 2009, is amended to read as
3 49 follows:
3 50 (2) Biodiesel fuel shall be designated according
4 1 to its classification as provided in section 214A.2.
4 2 A person shall not knowingly falsely advertise
4 3 biodiesel blended fuel by using an inaccurate
4 4 designation in violation of this subparagraph as
4 5 provided in section 214A.2.
4 6 Sec. 12. Section 214A.5, Code 2009, is amended to
4 7 read as follows:
4 8 214A.5 SALES SLIP ON DEMAND DOCUMENTATION.
4 9 1. A wholesale dealer or retail dealer shall, when
4 10 making a sale of motor fuel, give to a purchaser upon
4 11 demand a sales slip.
4 12 2. A wholesale dealer selling ethanol blended
4 13 gasoline or biodiesel blended fuel to a purchaser
4 14 shall provide the purchaser with a statement
4 15 indicating its designation as provided in section
4 16 214A.2. The statement may be on the sales slip
4 17 provided in this section or a similar document,
4 18 including but not limited to a bill of lading or
4 19 invoice.
4 20 Sec. 13. Section 214A.11, subsection 1, Code 2009,
4 21 is amended to read as follows:
4 22 1. Except as provided in subsection 2, a person
4 23 who violates a provision of this chapter is guilty of
4 24 a serious simple misdemeanor. Each day that a
4 25 continuing violation occurs shall be considered a
4 26 separate offense.
4 27 Sec. 14. Section 214A.16, subsection 1, Code 2009,
4 28 is amended to read as follows:
4 29 1. a. If motor fuel containing a renewable fuel
4 30 ethanol blended gasoline is sold from a motor fuel
4 31 pump, the motor fuel pump shall have affixed a decal
4 32 identifying the name of the renewable fuel ethanol
4 33 blended gasoline. The decal shall be different based
4 34 on the type of renewable fuel dispensed. If the motor
4 35 fuel pump dispenses ethanol blended gasoline
4 36 classified as higher than standard ethanol blended
4 37 gasoline pursuant to section 214A.2, the decal shall
4 38 contain the following notice: "FOR FLEXIBLE FUEL
4 39 VEHICLES ONLY".
4 40 b. If biodiesel fuel is sold from a motor fuel
4 41 pump, the motor fuel pump shall have affixed a decal
4 42 identifying the biodiesel fuel as provided in 16
4 43 C.F.R. pt. 306.
4 44 Sec. 15. Section 452A.12, subsection 2, Code 2009,
4 45 is amended to read as follows:
4 46 2. A person while transporting motor fuel or
4 47 undyed special fuel from a refinery or marine or
4 48 pipeline terminal in this state or from a point
4 49 outside this state over the highways of this state in
4 50 service other than that under subsection 1 shall carry
5 1 in the vehicle a loading invoice showing the name and
5 2 address of the seller or consignor, the date and place
5 3 of loading, and the kind and quantity of motor fuel or
5 4 special fuel loaded, together with invoices showing
5 5 the kind and quantity of each delivery and the name
5 6 and address of each purchaser or consignee. An
5 7 invoice carried pursuant to this subsection for
5 8 ethanol blended gasoline or biodiesel blended fuel
5 9 shall state its designation as provided in section
5 10 214A.2.
5 11 DIVISION III
5 12 BIOFUEL TAX CREDITS == REPORTING
5 13 Sec. 16. Section 422.11N, subsection 4, paragraph
5 14 a, Code 2009, is amended to read as follows:
5 15 a. The retail dealer's adjusted biofuel
5 16 distribution percentage which is the sum of the retail
5 17 dealer's total ethanol gallonage plus the retail
5 18 dealer's total biodiesel gallonage expressed as a
5 19 percentage of the retail dealer's total gasoline
5 20 gallonage, calculated pursuant to section 452A.31,
5 21 subsection 3A, in the retail dealer's applicable
5 22 determination period.
5 23 Sec. 17. Section 422.11N, subsection 4, paragraph
5 24 c, Code 2009, is amended to read as follows:
5 25 c. The retail dealer's biofuel threshold
5 26 percentage disparity which is a positive percentage
5 27 difference obtained by taking the minuend which is the
5 28 retail dealer's biofuel threshold percentage and
5 29 subtracting from it the subtrahend which is the retail
5 30 dealer's adjusted biofuel distribution percentage, in
5 31 the retail dealer's applicable determination period.
5 32 Sec. 18. Section 422.11P, subsections 1 through 3,
5 33 Code 2009, are amended to read as follows:
5 34 1. As used in this section, unless the context
5 35 otherwise requires:
5 36 a. "Biodiesel blended fuel", "diesel fuel", and
5 37 "retail dealer" mean the same as defined in section
5 38 214A.1.
5 39 b. "Motor fuel pump" means the same as defined in
5 40 section 214.1.
5 41 c. "Sell" means to sell on a retail basis.
5 42 d. "Tax credit" means a biodiesel blended fuel
5 43 promotion tax credit as provided in this section.
5 44 2. The taxes imposed under this division, less the
5 45 credits allowed under section 422.12, shall be reduced
5 46 by the amount of the biodiesel blended fuel promotion
5 47 tax credit for each tax year that the taxpayer is
5 48 eligible to claim a tax credit under this subsection.
5 49 a. In order to be eligible, all of the following
5 50 must apply:
6 1 (1) The taxpayer is a retail dealer who sells and
6 2 dispenses biodiesel blended fuel through a motor fuel
6 3 pump located at a motor fuel site operated by the
6 4 retail dealer in this state in the tax year in which
6 5 the tax credit is claimed.
6 6 (2) Of the total gallons of diesel fuel that the
6 7 retail dealer sells and dispenses through all motor
6 8 fuel pumps located at a motor fuel site operated by
6 9 the retail dealer during the retail dealer's tax year,
6 10 fifty percent or more is biodiesel blended fuel which
6 11 meets the requirements of this section.
6 12 (3) The retail dealer complies with requirements
6 13 of the department established to administer this
6 14 section.
6 15 b. The tax credit shall apply to biodiesel blended
6 16 fuel formulated with a minimum percentage of two
6 17 percent by volume of biodiesel, if the formulation
6 18 meets the standards provided in section 214A.2 must
6 19 meet the standards for biodiesel fuel provided in
6 20 section 214A.2.
6 21 3. a. The tax credit shall be calculated
6 22 separately for each retail motor fuel site operated by
6 23 the retail dealer.
6 24 b. The amount of the tax credit is three cents
6 25 multiplied by the total number of gallons of biodiesel
6 26 blended fuel designated as B=10 or higher as provided
6 27 in section 214A.2 sold and dispensed by the retail
6 28 dealer through all motor fuel pumps located at a
6 29 retail motor fuel site operated by the retail dealer
6 30 in this state during the retail dealer's tax year.
6 31 Sec. 19. Section 422.33, subsection 11C, Code
6 32 2009, is amended to read as follows:
6 33 11C. The taxes imposed under this division shall
6 34 be reduced by a biodiesel blended fuel promotion tax
6 35 credit for each tax year that the taxpayer is eligible
6 36 to claim the tax credit under this subsection.
6 37 a. The taxpayer may claim the biodiesel blended
6 38 fuel promotion tax credit according to the same
6 39 requirements, for the same amount, and calculated in
6 40 the same manner, as provided for the biodiesel blended
6 41 fuel promotion tax credit pursuant to section 422.11P.
6 42 b. Any biodiesel blended fuel promotion tax credit
6 43 which is in excess of the taxpayer's tax liability
6 44 shall be refunded or may be shown on the taxpayer's
6 45 final, completed return credited to the tax liability
6 46 for the following tax year in the same manner as
6 47 provided in section 422.11P.
6 48 c. The tax credit shall be calculated separately
6 49 for each retail motor fuel site operated by the
6 50 taxpayer in the same manner as provided in section
7 1 422.11P.
7 2 d. This subsection is repealed on January 1, 2012.
7 3 Sec. 20. Section 452A.31, subsection 3, paragraph
7 4 b, Code 2009, is amended to read as follows:
7 5 b. A retail dealer's total biodiesel gallonage is
7 6 the total number of gallons of biodiesel which may or
7 7 may not be a component of biodiesel blended fuel, and
7 8 which the retail dealer sells and dispenses from motor
7 9 fuel pumps as provided in paragraph "a" during a
7 10 twelve=month period beginning January 1 and ending
7 11 December 31. The retail dealer's total biodiesel
7 12 gallonage is divided into the following
7 13 classifications:
7 14 (1) The total standard biodiesel gallonage which
7 15 is the aggregate biodiesel gallonage that is a
7 16 component of biodiesel blended fuel designated B=5 or
7 17 less.
7 18 (2) The total above standard biodiesel gallonage
7 19 which is the total biodiesel gallonage that is any of
7 20 the following:
7 21 (a) A component of biodiesel blended fuel
7 22 designated B=6 or higher.
7 23 (b) B=100.
7 24 Sec. 21. Section 452A.31, Code 2009, is amended by
7 25 adding the following new subsection:
7 26 NEW SUBSECTION. 3A. a. The retail dealer's
7 27 biofuel distribution percentage which is the sum of
7 28 the retail dealer's total ethanol gallonage plus the
7 29 retail dealer's total biodiesel gallonage expressed as
7 30 a percentage of the retail dealer's total gasoline
7 31 gallonage during a twelve=month period beginning
7 32 January 1 and ending December 31.
7 33 b. The retail dealer's adjusted biofuel
7 34 distribution percentage which is the sum of the retail
7 35 dealer's total ethanol gallonage plus the retail
7 36 dealer's total above standard biodiesel gallonage
7 37 expressed as a percentage of the retail dealer's total
7 38 gasoline gallonage during a twelve=month period
7 39 beginning January 1 and ending December 31.
7 40 Sec. 22. TAX CREDIT APPLICABILITY.
7 41 1. A taxpayer who is a retail dealer selling or
7 42 dispensing ethanol blended gasoline prior to the
7 43 effective date of this division of this Act may claim
7 44 the ethanol promotion tax credit on ethanol blended
7 45 gasoline by calculating the retail dealer's biofuel
7 46 distribution percentage pursuant to section 422.11N
7 47 and section 422.33, subsection 11A, Code 2009. The
7 48 taxpayer selling or dispensing ethanol blended
7 49 gasoline on or after the effective date of this
7 50 division of this Act shall only claim the tax credit
8 1 by calculating the retail dealer's adjusted biofuel
8 2 distribution percentage pursuant to section 422.11N
8 3 and section 422.33, subsection 11A, as provided in
8 4 this division of this Act.
8 5 2. A taxpayer who is a retail dealer selling or
8 6 dispensing biodiesel blended fuel prior to the
8 7 effective date of this division of this Act may claim
8 8 the biodiesel blended fuel tax credit on biodiesel
8 9 blended fuel formulated with a minimum percentage of
8 10 two percent by volume of biodiesel pursuant to section
8 11 422.11P and section 422.33, subsection 11C, Code 2009.
8 12 The taxpayer selling or dispensing biodiesel blended
8 13 fuel on or after the effective date of this division
8 14 of this Act shall only claim the tax credit as a
8 15 biodiesel fuel promotion tax credit pursuant to
8 16 section 422.11P and section 422.33, subsection 11C, as
8 17 provided in this division of this Act.
8 18 Sec. 23. 2006 Iowa Acts, chapter 1142, section 49,
8 19 subsection 5, is amended to read as follows:
8 20 5. For a retail dealer who may claim a biodiesel
8 21 blended fuel promotion tax credit under section
8 22 422.11P or 422.33, subsection 11C, as enacted in this
8 23 Act 2006 Iowa Acts, chapter 1142, sections 41 and 47,
8 24 and amended in this 2009 Iowa Act, in calendar year
8 25 2011 and whose tax year ends prior to December 31,
8 26 2011, the retail dealer may continue to claim the tax
8 27 credit in the retail dealer's following tax year. In
8 28 that case, the tax credit shall be calculated in the
8 29 same manner as provided in section 422.11P or 422.33,
8 30 subsection 11C, as enacted in this Act 2006 Iowa Acts,
8 31 chapter 1142, sections 41 and 47, and amended in this
8 32 2009 Iowa Act, for the remaining period beginning on
8 33 the first day of the retail dealer's new tax year
8 34 until December 31, 2011. For that remaining period,
8 35 the tax credit shall be calculated in the same manner
8 36 as a retail dealer whose tax year began on the
8 37 previous January 1 and who is calculating the tax
8 38 credit on December 31, 2011.
8 39 Sec. 24. EFFECTIVE DATE. This division of this
8 40 Act takes effect September 1, 2009.>
8 41 #2. Title page, by striking lines 1 and 2 and
8 42 inserting the following: <An Act relating to motor
8 43 fuel, by providing for a biodiesel quality standard
8 44 for energy security and sustainability, ethanol
8 45 blended gasoline and biodiesel blended fuel
8 46 designations and tax credits, penalties, and effective
8 47 dates.>
8 48
8 49
8 50
9 1 JOHN P. KIBBIE
9 2
9 3
9 4
9 5 DARYL BEALL
9 6
9 7
9 8
9 9 STEVEN J. SODDERS
9 10
9 11
9 12
9 13 MERLIN BARTZ
9 14
9 15
9 16
9 17 HUBERT HOUSER
9 18
9 19
9 20
9 21 ROBERT M. HOGG
9 22
9 23
9 24
9 25 NANCY J. BOETTGER
9 26
9 27
9 28
9 29 ROGER STEWART
9 30
9 31
9 32
9 33 TOM HANCOCK
9 34
9 35
9 36
9 37 JAMES F. HAHN
9 38
9 39
9 40
9 41 EUGENE FRAISE
9 42
9 43
9 44
9 45 AMANDA RAGAN
9 46
9 47
9 48
9 49 ROBERT E. DVORSKY
9 50
10 1
10 2
10 3 BECKY SCHMITZ
10 4
10 5
10 6
10 7 JOE BOLKCOM
10 8
10 9
10 10
10 11 DENNIS H. BLACK
10 12
10 13
10 14
10 15 JEFF DANIELSON
10 16
10 17
10 18
10 19 STACI APPEL
10 20
10 21
10 22
10 23 THOMAS G. COURTNEY
10 24
10 25
10 26
10 27 RICH OLIVE
10 28
10 29
10 30
10 31 JAMES A. SEYMOUR
10 32
10 33
10 34
10 35 TOM RIELLY
10 36
10 37
10 38
10 39 PAM JOCHUM
10 40
10 41
10 42
10 43 WILLIAM A. DOTZLER
10 44
10 45
10 46
10 47 HERMAN C. QUIRMBACH
10 48
10 49
10 50
11 1 DICK L. DEARDEN
11 2 SF 464.702 83
11 3 da/rj/23328
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