Senate Amendment to House File 640 H-1454 Amend House File 640, as amended, passed, and 1 reprinted by the House, as follows: 2 1. By striking everything after the enacting clause 3 and inserting: 4 < DIVISION I 5 LEGISLATIVE INTENT 6 Section 1. USE OF RENEWABLE FUELS. The general 7 assembly finds and declares all of the following: 8 1. In accordance with the federal Energy Policy 9 Act of 2005, Pub. L. No. 109-58, as amended by the 10 federal Energy Independence and Security Act of 2007, 11 Pub. L. No. 110-140, the United States has demonstrated 12 its commitment to the long-term policy of increasing 13 the production of clean renewable fuels according to 14 a renewable fuel standard, sometimes referred to as 15 “RFS2,” by requiring the increased domestic production 16 and use of renewable fuels, which include total 17 renewable biofuels such as ethanol, advanced biofuels, 18 cellulosic and agricultural waste-based biofuels, and 19 biomass-based biodiesel. 20 2. The renewable fuel standard provides the 21 foundation for reducing dependence on foreign 22 sources of crude oil, reducing the price of domestic 23 transportation fuels, reducing greenhouse gases, 24 increasing farm income, and encouraging the development 25 and expansion of a new industry, and consequently 26 promoting economic growth. 27 3. The rising price of petroleum hampers this 28 nation’s economic recovery and contributes to 29 increasing retail prices, including increased costs 30 attributable to the transportation of food and other 31 goods, that drain the finances of both consumers and 32 business. 33 4. The United States Environmental Protection 34 Agency is responsible for establishing and implementing 35 the renewable fuel standard, including by requiring 36 that certain volumes of various types of biofuels 37 be blended in transportation fuels each year with 38 authority to adjust those volumes due to availability. 39 5. The United States government should renew its 40 commitment to this nation’s energy security, move the 41 United States toward greater energy independence and 42 security as required by the federal Energy Independence 43 and Security Act, and use all efforts to meet the 44 highest possible renewable fuel volume requirements set 45 forth in the renewable fuel standard in order to ensure 46 that this nation achieves energy independence. 47 DIVISION II 48 MOTOR FUEL MARKETING 49 Sec. 2. Section 214A.1, Code 2013, is amended by 50 -1- HF640.2331.S (1) 85 jh 1/ 8 #1.

adding the following new subsections: 1 NEW SUBSECTION . 8A. “Distributor” means the same 2 as defined in section 452A.2. 3 NEW SUBSECTION . 12A. “Marketer” means a dealer, 4 distributor, nonrefiner biofuel manufacturer, or 5 supplier. 6 NEW SUBSECTION . 16A. “Nonrefiner biofuel 7 manufacturer” means the same as defined in section 8 452A.2. 9 NEW SUBSECTION . 18A. “Pipeline company” means the 10 same as defined in section 479B.2. 11 NEW SUBSECTION . 18B. “Refiner” means a person 12 engaged in the refining of crude oil to produce motor 13 fuel, and includes any affiliate of such person. 14 NEW SUBSECTION . 23A. “Supplier” means the same as 15 defined in section 452A.2. 16 NEW SUBSECTION . 23B. “Terminal” means the same as 17 defined in section 452A.2. 18 NEW SUBSECTION . 23C. “Terminal operator” means the 19 same as defined in section 452A.2. 20 NEW SUBSECTION . 23D. “Terminal owner” means the 21 same as defined in section 452A.2. 22 Sec. 3. Section 214A.20, subsection 1, Code 2013, 23 is amended to read as follows: 24 1. A retail dealer or other marketer, pipeline 25 company, refiner, terminal operator, or terminal 26 owner is not liable for damages caused by the use 27 of incompatible motor fuel dispensed at the retail 28 dealer’s retail motor fuel site, if all of the 29 following applies: 30 a. The incompatible motor fuel complies with the 31 specifications for a type of motor fuel as provided in 32 section 214A.2 . 33 b. The incompatible motor fuel is selected by a 34 person other than the retail dealer, including an 35 employee or agent of the retail dealer the end consumer 36 of the motor fuel . 37 c. The incompatible motor fuel is dispensed from a 38 motor fuel pump that correctly labels the type of fuel 39 dispensed. 40 Sec. 4. Section 323.1, Code 2013, is amended by 41 adding the following new subsections: 42 NEW SUBSECTION . 01. “Blender pump” means a motor 43 fuel blender pump as defined in section 214.1 that 44 dispenses motor fuel or special fuel in a manner 45 required pursuant to chapters 214 and 214A. 46 NEW SUBSECTION . 3A. a. “Dispenser” means a meter 47 or similar commercial weighing and measuring device 48 used to measure and dispense motor fuel or special 49 fuel, including renewable fuel, originating from a 50 -2- HF640.2331.S (1) 85 jh 2/ 8

storage tank used to store fuel. 1 b. “Dispenser” includes but is not limited to a 2 motor fuel pump or blender pump. 3 NEW SUBSECTION . 7A. “Motor fuel pump” means the 4 same as defined in section 214.1 that dispenses motor 5 fuel or special fuel in a manner that complies with 6 standards set forth in chapters 214 and 214A. 7 NEW SUBSECTION . 7B. “Refiner” means a person 8 engaged in the refining of crude oil to produce motor 9 fuel or special fuel, and includes any affiliate of 10 such person. 11 NEW SUBSECTION . 7C. “Renewable fuel” means the 12 same as defined in section 214A.1 that complies with 13 standards set forth in section 214A.2. 14 NEW SUBSECTION . 11. “Storage tank” means a 15 motor fuel storage tank as defined in section 214.1, 16 including an underground storage tank subject to 17 regulation under chapter 455G. 18 NEW SUBSECTION . 12. “Supplier” means the same as 19 defined in section 452A.2. 20 Sec. 5. NEW SECTION . 323.4A Use of renewable fuel. 21 1. Except as provided in subsection 3, this section 22 applies to a supply agreement or other document 23 executed on or after the effective date of this 24 division of this Act by parties who are receiving and 25 furnishing motor fuel or special fuel as follows: 26 a. A dealer who is a party receiving motor fuel 27 or special fuel from another party who is a refiner, 28 supplier, or distributor furnishing the motor fuel or 29 special fuel. 30 b. A distributor who is a party receiving motor 31 fuel or special fuel from another party who is a 32 refiner, supplier, or other distributor furnishing the 33 motor fuel or special fuel. 34 2. A supply agreement or other document shall not 35 contain a provision restricting a dealer or distributor 36 who is a party receiving motor fuel or special fuel 37 from the other party furnishing the motor fuel or 38 special fuel as described in subsection 1 from doing 39 any of the following: 40 a. Installing, converting, or operating a storage 41 tank or a dispenser located on the distributor’s 42 or dealer’s business premises for use in storing or 43 dispensing renewable fuel. However, this paragraph 44 does not apply to a dealer or distributor whose 45 business premises are leased from the other party 46 furnishing the renewable fuel. 47 b. Using a dispenser to dispense ethanol blended 48 gasoline, including gasoline with a specified blend or 49 a range of blends under chapter 214A, if the dispenser 50 -3- HF640.2331.S (1) 85 jh 3/ 8

is approved as required by the state fire marshal for 1 dispensing the specified blend or range of blends, 2 including as provided in section 455G.31. 3 c. Purchasing, selling, or dispensing motor fuel 4 or special fuel that is a renewable fuel from a source 5 other than the party furnishing other motor fuel or 6 special fuel, if such party furnishing the other motor 7 fuel or special fuel does not furnish motor fuel or 8 special fuel that is a renewable fuel for sale by the 9 distributor or dealer. 10 d. Marketing the sale of any renewable fuel, 11 including but not limited to advertising its 12 availability or price on a sign, on a dispenser, or by 13 media. 14 e. Selling or dispensing renewable fuel in any 15 specified area located on the distributor’s or dealer’s 16 business premises, including but not limited to any 17 area in which a name or logo of a franchiser or any 18 other entity appears. 19 f. Using a payment form for the sale of a renewable 20 fuel by the retail dealer that is the same type as the 21 payment form used for the sale of another type of motor 22 fuel or special fuel by the dealer on the dealer’s 23 retail premises. 24 3. This section does not apply to any activity 25 that constitutes mislabeling, misbranding, willful 26 adulteration, or other trademark violation by a dealer. 27 Sec. 6. Section 452A.2, Code 2013, is amended by 28 adding the following new subsections: 29 NEW SUBSECTION . 6A. “Conventional blendstock 30 for oxygenate blending” means one or more motor fuel 31 components intended for blending with an oxygenate or 32 oxygenates to produce gasoline. 33 NEW SUBSECTION . 9A. “Diesel fuel” or “diesel” means 34 diesel fuel as defined in section 214A.1. 35 NEW SUBSECTION . 28A. “Nonrefiner biofuel 36 manufacturer” means an entity that produces, 37 manufactures, or refines biofuel and does not directly 38 or through a related entity refine, blend, import, 39 or produce a conventional blendstock for oxygenate 40 blending, gasoline, or diesel fuel. 41 NEW SUBSECTION . 30A. “Refiner” means a person 42 engaged in the refining of crude oil to produce motor 43 fuel or special fuel, and includes any affiliate of 44 such person. 45 NEW SUBSECTION . 37A. “Terminal owner” means a 46 person who holds a legal interest or equitable interest 47 in a terminal. 48 Sec. 7. NEW SECTION . 452A.6A Right of distributors 49 and dealers to blend conventional blendstock for 50 -4- HF640.2331.S (1) 85 jh 4/ 8

oxygenate blending, gasoline, or diesel fuel using a 1 biofuel. 2 1. a. A dealer or distributor may blend a 3 conventional blendstock for oxygenate blending, 4 gasoline, or diesel fuel using the appropriate biofuel, 5 or sell unblended or blended gasoline or diesel fuel on 6 any premises in this state. 7 b. Paragraph “a” does not apply to the extent that 8 the use of the premises is restricted by federal, 9 state, or local law. 10 2. A refiner, supplier, terminal operator, or 11 terminal owner who in the ordinary course of business 12 sells or transports a conventional blendstock for 13 oxygenate blending, gasoline unblended or blended with 14 a biofuel, or diesel fuel unblended or blended with 15 a biofuel shall not refuse to sell or transport to 16 a distributor or dealer any conventional blendstock 17 for oxygenate blending, unblended gasoline, or 18 unblended diesel fuel that is at the terminal, based 19 on the distributor’s or dealer’s intent to use the 20 conventional blendstock for oxygenate blending, or 21 blend the gasoline or diesel fuel with a biofuel. 22 3. This section shall not be construed to do any of 23 the following: 24 a. Prohibit a distributor or dealer from 25 purchasing, selling or transporting a conventional 26 blendstock for oxygenate blending, gasoline that has 27 not been blended with a biofuel, or diesel fuel that 28 has not been blended with a biofuel. 29 b. Affect the blender’s license requirements under 30 section 452A.6. 31 c. Prohibit a dealer or distributor from leaving a 32 terminal with a conventional blendstock for oxygenate 33 blending, gasoline that has not been blended with a 34 biofuel, or diesel fuel that has not been blended with 35 a biofuel. 36 d. Require a nonrefiner biofuel manufacturer to 37 offer or sell a conventional blendstock for oxygenate 38 blending, gasoline that has not been blended with a 39 biofuel, or diesel fuel that has not been blended with 40 a biofuel. 41 4. A refiner, supplier, terminal operator, or 42 terminal owner who violates this section is subject to 43 a civil penalty of not more than ten thousand dollars 44 per violation. Each day that a violation continues is 45 deemed a separate offense. 46 DIVISION III 47 STORAGE TANKS 48 Sec. 8. Section 101.21, subsection 1, paragraphs a 49 through c, Code 2013, are amended to read as follows: 50 -5- HF640.2331.S (1) 85 jh 5/ 8

a. Aboveground tanks of An aboveground tank which 1 complies with any of the following: 2 (1) Has one thousand one hundred gallons or less 3 capacity. 4 (2) Stores flammable liquids on a farm located 5 outside the limits of a city, if the aboveground tank 6 has two thousand gallons or less capacity. 7 (3) Stores combustible liquids on a farm located 8 outside the limits of a city, if the aboveground tank 9 has five thousand gallons or less capacity. 10 b. Tanks A tank used for storing heating oil for 11 consumptive use on the premises where stored. 12 c. Underground An underground storage tanks tank as 13 defined by section 455B.471 . 14 Sec. 9. Section 101.21, Code 2013, is amended by 15 adding the following new subsection: 16 NEW SUBSECTION . 1A. a. “Farm” means land and 17 associated improvements used to produce agricultural 18 commodities, if at least one thousand dollars is 19 annually generated from the sale of the agricultural 20 commodities. 21 b. As used in paragraph “a” , “commodities” means 22 crops as defined in section 202.1 or animals as defined 23 in section 459.102. 24 Sec. 10. Section 101.22, subsections 4 through 8, 25 Code 2013, are amended to read as follows: 26 4. The registration notice of the owner or operator 27 to the state fire marshal under subsections 1 through 28 3 shall be accompanied by an annual fee of ten twenty 29 dollars for each tank included in the notice. All 30 moneys collected shall be retained by the department of 31 public safety and are appropriated for the use of the 32 state fire marshal. The annual renewal fee applies to 33 all owners or operators who file a registration notice 34 with the state fire marshal pursuant to subsections 1 35 through 3 . 36 5. A person who deposits flammable or combustible 37 liquid in an aboveground flammable or combustible 38 liquid storage tank shall notify the owner or operator 39 in writing of the notification requirements of this 40 section . 41 6. A person who sells or constructs a tank intended 42 to be used as an aboveground storage tank shall 43 notify the purchaser of the tank in writing of the 44 notification requirements of this section applicable 45 to the purchaser. 46 7. 6. It is unlawful to deposit flammable or 47 combustible liquid in An owner or operator shall 48 register an aboveground flammable or combustible liquid 49 storage tank which has not been registered pursuant to 50 -6- HF640.2331.S (1) 85 jh 6/ 8

subsections 1 through 4 . 1 8. 7. The state fire marshal shall furnish the 2 owner or operator of an aboveground flammable or 3 combustible liquid storage tank with a registration tag 4 for each aboveground flammable or combustible liquid 5 storage tank registered with the state fire marshal. 6 a. The owner or operator shall affix the tag to the 7 fill pipe of each registered aboveground flammable or 8 combustible liquid storage tank. 9 b. A person who conveys or deposits flammable 10 or combustible liquid shall inspect the aboveground 11 flammable or combustible liquid storage tank to 12 determine the existence or absence of the registration 13 tag. If a registration tag is not affixed to the 14 aboveground flammable or combustible liquid storage 15 tank fill pipe, the person conveying or depositing 16 the flammable or combustible liquid may deposit the 17 flammable or combustible liquid in the unregistered 18 tank. However, only one deposit is allowed into 19 the unregistered tank, the person making the deposit 20 shall provide the owner or operator of the tank with 21 another notice as required by subsection 5 , and the 22 person shall provide the owner or operator with an 23 aboveground flammable or combustible liquid storage 24 tank registration form. 25 c. It is the owner or operator’s duty to comply 26 with registration requirements. 27 8. A late registration penalty of twenty-five 28 dollars is imposed in addition to the registration fee 29 for a tank registered after the required date. 30 DIVISION IV 31 FUEL TAX 32 Sec. 11. Section 452A.3, subsection 1, unnumbered 33 paragraph 1, Code 2013, is amended to read as follows: 34 Except as otherwise provided in this section and 35 in this division , until June 30, 2013 2014 , this 36 subsection shall apply to the excise tax imposed on 37 each gallon of motor fuel used for any purpose for the 38 privilege of operating motor vehicles in this state. 39 Sec. 12. Section 452A.3, subsection 1A, Code 2013, 40 is amended to read as follows: 41 1A. Except as otherwise provided in this section 42 and in this division , after June 30, 2013 2014 , an 43 excise tax of twenty cents is imposed on each gallon of 44 motor fuel used for any purpose for the privilege of 45 operating motor vehicles in this state. 46 Sec. 13. EFFECTIVE UPON ENACTMENT. This division 47 of this Act, being deemed of immediate importance, 48 takes effect upon enactment. > 49 2. Title page, lines 6 and 7, by striking < providing 1 50 -7- HF640.2331.S (1) 85 jh 7/ 8