House File 640 S-3251 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 323.1, Code 2013, is amended by 50 -1- HF640.2293 (2) 85 da/rj 1/ 6 #1.

adding the following new subsections: 1 NEW SUBSECTION . 01. “Blender pump” means a motor 2 fuel blender pump as defined in section 214.1 that 3 dispenses motor fuel or special fuel in a manner 4 required pursuant to chapters 214 and 214A. 5 NEW SUBSECTION . 3A. a. “Dispenser” means a meter 6 or similar commercial weighing and measuring device 7 used to measure and dispense motor fuel or special 8 fuel, including renewable fuel, originating from a 9 storage tank used to store fuel. 10 b. “Dispenser” includes but is not limited to a 11 motor fuel pump or blender pump. 12 NEW SUBSECTION . 7A. “Motor fuel pump” means the 13 same as defined in section 214.1 that dispenses motor 14 fuel or special fuel in a manner that complies with 15 standards set forth in chapters 214 and 214A. 16 NEW SUBSECTION . 7B. “Refiner” means a person 17 engaged in the refining of crude oil to produce motor 18 fuel or special fuel, and includes any affiliate of 19 such person. 20 NEW SUBSECTION . 7C. “Renewable fuel” means the 21 same as defined in section 214A.1 that complies with 22 standards set forth in section 214A.2. 23 NEW SUBSECTION . 11. “Storage tank” means a 24 motor fuel storage tank as defined in section 214.1, 25 including an underground storage tank subject to 26 regulation under chapter 455G. 27 NEW SUBSECTION . 12. “Supplier” means the same as 28 defined in section 452A.2. 29 Sec. 3. NEW SECTION . 323.4A Use of renewable fuel. 30 1. Except as provided in subsection 3, this section 31 applies to a supply agreement or other document 32 executed on or after the effective date of this 33 division of this Act by parties who are receiving and 34 furnishing motor fuel or special fuel as follows: 35 a. A dealer who is a party receiving motor fuel 36 or special fuel from another party who is a refiner, 37 supplier, or distributor furnishing the motor fuel or 38 special fuel. 39 b. A distributor who is a party receiving motor 40 fuel or special fuel from another party who is a 41 refiner, supplier, or other distributor furnishing the 42 motor fuel or special fuel. 43 2. A supply agreement or other document shall not 44 contain a provision restricting a dealer or distributor 45 who is a party receiving motor fuel or special fuel 46 from the other party furnishing the motor fuel or 47 special fuel as described in subsection 1 from doing 48 any of the following: 49 a. Installing, converting, or operating a storage 50 -2- HF640.2293 (2) 85 da/rj 2/ 6

tank or a dispenser located on the distributor’s 1 or dealer’s business premises for use in storing or 2 dispensing renewable fuel. However, this paragraph 3 does not apply to a dealer or distributor whose 4 business premises are leased from the other party 5 furnishing the renewable fuel. 6 b. Using a dispenser to dispense ethanol blended 7 gasoline, including gasoline with a specified blend or 8 a range of blends under chapter 214A, if the dispenser 9 is approved as required by the state fire marshal for 10 dispensing the specified blend or range of blends, 11 including as provided in section 455G.31. 12 c. Purchasing, selling, or dispensing motor fuel 13 or special fuel that is a renewable fuel from a source 14 other than the party furnishing other motor fuel or 15 special fuel, if such party furnishing the other motor 16 fuel or special fuel does not furnish motor fuel or 17 special fuel that is a renewable fuel for sale by the 18 distributor or dealer. 19 d. Marketing the sale of any renewable fuel, 20 including but not limited to advertising its 21 availability or price on a sign, on a dispenser, or by 22 media. 23 e. Selling or dispensing renewable fuel in any 24 specified area located on the distributor’s or dealer’s 25 business premises, including but not limited to any 26 area in which a name or logo of a franchiser or any 27 other entity appears. 28 f. Using a payment form for the sale of a renewable 29 fuel by the retail dealer that is the same type as the 30 payment form used for the sale of another type of motor 31 fuel or special fuel by the dealer on the dealer’s 32 retail premises. 33 3. This section does not apply to any activity 34 that constitutes mislabeling, misbranding, willful 35 adulteration, or other trademark violation by a dealer. 36 Sec. 4. Section 452A.2, Code 2013, is amended by 37 adding the following new subsections: 38 NEW SUBSECTION . 6A. “Conventional blendstock 39 for oxygenate blending” means one or more motor fuel 40 components intended for blending with an oxygenate or 41 oxygenates to produce gasoline. 42 NEW SUBSECTION . 9A. “Diesel fuel” or “diesel” means 43 diesel fuel as defined in section 214A.1. 44 NEW SUBSECTION . 28A. “Nonrefiner biofuel 45 manufacturer” means an entity that produces, 46 manufactures, or refines biofuel and does not directly 47 or through a related entity refine, blend, import, 48 or produce a conventional blendstock for oxygenate 49 blending, gasoline, or diesel fuel. 50 -3- HF640.2293 (2) 85 da/rj 3/ 6

NEW SUBSECTION . 30A. “Refiner” means a person 1 engaged in the refining of crude oil to produce motor 2 fuel or special fuel, and includes any affiliate of 3 such person. 4 NEW SUBSECTION . 37A. “Terminal owner” means a 5 person who holds a legal interest or equitable interest 6 in a terminal. 7 Sec. 5. NEW SECTION . 452A.6A Right of distributors 8 and dealers to blend conventional blendstock for 9 oxygenate blending, gasoline, or diesel fuel using a 10 biofuel. 11 1. a. A dealer or distributor may blend a 12 conventional blendstock for oxygenate blending, 13 gasoline, or diesel fuel using the appropriate biofuel, 14 or sell unblended or blended gasoline or diesel fuel on 15 any premises in this state. 16 b. Paragraph “a” does not apply to the extent that 17 the use of the premises is restricted by federal, 18 state, or local law. 19 2. A refiner, supplier, terminal operator, or 20 terminal owner who in the ordinary course of business 21 sells or transports a conventional blendstock for 22 oxygenate blending, gasoline unblended or blended with 23 a biofuel, or diesel fuel unblended or blended with 24 a biofuel shall not refuse to sell or transport to 25 a distributor or dealer any conventional blendstock 26 for oxygenate blending, unblended gasoline, or 27 unblended diesel fuel that is at the terminal, based 28 on the distributor’s or dealer’s intent to use the 29 conventional blendstock for oxygenate blending, or 30 blend the gasoline or diesel fuel with a biofuel. 31 3. This section shall not be construed to do any of 32 the following: 33 a. Prohibit a distributor or dealer from 34 purchasing, selling or transporting a conventional 35 blendstock for oxygenate blending, gasoline that has 36 not been blended with a biofuel, or diesel fuel that 37 has not been blended with a biofuel. 38 b. Affect the blender’s license requirements under 39 section 452A.6. 40 c. Prohibit a dealer or distributor from leaving a 41 terminal with a conventional blendstock for oxygenate 42 blending, gasoline that has not been blended with a 43 biofuel, or diesel fuel that has not been blended with 44 a biofuel. 45 d. Require a nonrefiner biofuel manufacturer to 46 offer or sell a conventional blendstock for oxygenate 47 blending, gasoline that has not been blended with a 48 biofuel, or diesel fuel that has not been blended with 49 a biofuel. 50 -4- HF640.2293 (2) 85 da/rj 4/ 6

4. A refiner, supplier, terminal operator, or 1 terminal owner who violates this section is subject to 2 a civil penalty of not more than ten thousand dollars 3 per violation. Each day that a violation continues is 4 deemed a separate offense. 5 DIVISION III 6 STORAGE TANKS 7 Sec. 6. Section 101.22, subsections 4 through 8, 8 Code 2013, are amended to read as follows: 9 4. The registration notice of the owner or operator 10 to the state fire marshal under subsections 1 through 11 3 shall be accompanied by an annual fee of ten twenty 12 dollars for each tank included in the notice. All 13 moneys collected shall be retained by the department of 14 public safety and are appropriated for the use of the 15 state fire marshal. The annual renewal fee applies to 16 all owners or operators who file a registration notice 17 with the state fire marshal pursuant to subsections 1 18 through 3 . 19 5. A person who deposits flammable or combustible 20 liquid in an aboveground flammable or combustible 21 liquid storage tank shall notify the owner or operator 22 in writing of the notification requirements of this 23 section . 24 6. A person who sells or constructs a tank intended 25 to be used as an aboveground storage tank shall 26 notify the purchaser of the tank in writing of the 27 notification requirements of this section applicable 28 to the purchaser. 29 7. 6. It is unlawful to deposit flammable or 30 combustible liquid in An owner or operator shall 31 register an aboveground flammable or combustible liquid 32 storage tank which has not been registered pursuant to 33 subsections 1 through 4 . 34 8. 7. The state fire marshal shall furnish the 35 owner or operator of an aboveground flammable or 36 combustible liquid storage tank with a registration tag 37 for each aboveground flammable or combustible liquid 38 storage tank registered with the state fire marshal. 39 a. The owner or operator shall affix the tag to the 40 fill pipe of each registered aboveground flammable or 41 combustible liquid storage tank. 42 b. A person who conveys or deposits flammable 43 or combustible liquid shall inspect the aboveground 44 flammable or combustible liquid storage tank to 45 determine the existence or absence of the registration 46 tag. If a registration tag is not affixed to the 47 aboveground flammable or combustible liquid storage 48 tank fill pipe, the person conveying or depositing 49 the flammable or combustible liquid may deposit the 50 -5- HF640.2293 (2) 85 da/rj 5/ 6

flammable or combustible liquid in the unregistered 1 tank. However, only one deposit is allowed into 2 the unregistered tank, the person making the deposit 3 shall provide the owner or operator of the tank with 4 another notice as required by subsection 5 , and the 5 person shall provide the owner or operator with an 6 aboveground flammable or combustible liquid storage 7 tank registration form. 8 c. It is the owner or operator’s duty to comply 9 with registration requirements. 10 8. A late registration penalty of twenty-five 11 dollars is imposed in addition to the registration fee 12 for a tank registered after the required date. 13 DIVISION IV 14 FUEL TAX 15 Sec. 7. Section 452A.3, subsection 1, unnumbered 16 paragraph 1, Code 2013, is amended to read as follows: 17 Except as otherwise provided in this section and 18 in this division , until June 30, 2013 2014 , this 19 subsection shall apply to the excise tax imposed on 20 each gallon of motor fuel used for any purpose for the 21 privilege of operating motor vehicles in this state. 22 Sec. 8. Section 452A.3, subsection 1A, Code 2013, 23 is amended to read as follows: 24 1A. Except as otherwise provided in this section 25 and in this division , after June 30, 2013 2014 , an 26 excise tax of twenty cents is imposed on each gallon of 27 motor fuel used for any purpose for the privilege of 28 operating motor vehicles in this state. 29 Sec. 9. EFFECTIVE UPON ENACTMENT. This division of 30 this Act, being deemed of immediate importance, takes 31 effect upon enactment. > 32 2. Title page, lines 6 and 7, by striking 33 < providing for liability, > 34 3. By renumbering, redesignating, and correcting 35 internal references as necessary. 36 ______________________________ COMMITTEE ON WAYS AND MEANS JOE BOLKCOM, CHAIRPERSON -6- HF640.2293 (2) 85 da/rj 6/ 6 #2. #3.