House File 859 H-1392 Amend House File 859 as follows: 1 1. Page 16, after line 26 by inserting: 2 < Sec. ___. Section 159A.11, Code 2021, is amended by adding 3 the following new subsection: 4 NEW SUBSECTION . 2A. “Ethanol fuel” means ethanol or ethanol 5 blended gasoline. > 6 2. Page 17, line 35, by striking < (1) > 7 3. Page 18, line 2, by striking < (a) > and inserting < (a) 8 (1) > 9 4. Page 18, line 4, by striking < (b) > and inserting < (b) 10 (2) > 11 5. Page 18, by striking line 12. 12 6. Page 20, line 19, by striking < three-year > and inserting 13 < five-year > 14 7. Page 20, line 20, by striking < fifty > and inserting 15 < seventy > 16 8. Page 20, by striking line 31. 17 9. Page 20, line 32, by striking < (1) > 18 10. Page 21, by striking line 3. 19 11. Page 22, after line 6 by inserting: 20 < Sec. ___. Section 159A.15, Code 2021, is amended to read 21 as follows: 22 159A.15 Renewable fuel infrastructure program for biodiesel 23 terminal facilities. 24 1. The department, under the direction of the renewable 25 fuel infrastructure board created in section 159A.13 , shall 26 establish and administer a renewable fuel infrastructure 27 program for terminal facilities that store , blend, and dispense 28 biodiesel or biodiesel blended fuel biodiesel fuel or ethanol 29 fuel . The infrastructure must be designed and shall be used 30 exclusively to store and distribute biodiesel or biodiesel 31 blended fuel. The department as directed by the infrastructure 32 board shall provide a cost-share program for to award financial 33 incentives to terminal operators participating in the program. 34 The financial incentives must be used to improve the capacity 35 -1- HF 859.2048 (5) 89 da/ns 1/ 4 #1. #2. #3. #4. #5. #6. #7. #8. #9. #10. #11.

of terminals by constructing new facilities or expanding 1 existing facilities . 2 1. 2. A person may apply to the department to receive 3 financial incentives on a cost-share basis. The department 4 shall forward the applications to the underground storage 5 tank fund board as required by that board for evaluation and 6 recommendation. The underground storage tank fund board may 7 rank the applications with comments and shall forward them to 8 the infrastructure board for approval or disapproval. The 9 department shall award financial incentives on a cost-share 10 basis to an eligible person whose application was approved by 11 the infrastructure board. 12 2. 3. The department shall award financial incentives to 13 a terminal operator participating in the program as directed 14 by the infrastructure board. In order to be eligible to 15 participate in the program, the terminal operator must apply to 16 the department in a manner and according to procedures required 17 by the infrastructure board. The application must contain 18 information required by the infrastructure board and shall at 19 least include all of the following: 20 a. The name of the terminal operator and the address of the 21 terminal to be improved. 22 b. A detailed description of the infrastructure to be 23 installed, replaced, or converted. 24 c. Whether biodiesel fuel or ethanol fuel is to be stored, 25 blended, or dispensed, and the classification for that type of 26 fuel. 27 c. d. A statement describing how the terminal is to be 28 improved, the total estimated cost of the planned improvement, 29 and the date when the infrastructure will be first used to 30 store and distribute the biodiesel or biodiesel blended fuel or 31 ethanol fuel. 32 d. e. A statement certifying that the infrastructure shall 33 not be used to store , blend, or dispense motor fuel other than 34 biodiesel or biodiesel blended fuel or ethanol fuel as provided 35 -2- HF 859.2048 (5) 89 da/ns 2/ 4

in the cost-share agreement , unless granted a waiver by the 1 infrastructure board pursuant to this section . 2 3. 4. a. An award of financial incentives to a 3 participating person terminal operator shall be in the form of 4 a grant. In order to participate in the program, an eligible 5 person terminal operator must execute a cost-share agreement 6 with the department as approved by the infrastructure board in 7 which the person terminal operator contributes a percentage 8 of the total costs related to improving the terminal. The 9 financial incentives awarded to the participating person 10 terminal operator shall not exceed be made to support the 11 following: 12 (1) For improvements Improvements to store, blend, or 13 dispense biodiesel fuel from subject to the following: 14 (a) For biodiesel blended fuel classified as B-2 or 15 higher up to but not as high as including B-99, the financial 16 incentives shall not exceed fifty percent of the actual cost of 17 making the improvements or fifty thousand dollars, whichever 18 is less . 19 (2) (b) For improvements to store, blend, and dispense 20 biodiesel fuel from For biodiesel blended fuel classified 21 as B-99 to or biodiesel classified as B-100, the financial 22 incentives shall not exceed fifty percent of the actual cost 23 of making the improvements or one hundred thousand dollars, 24 whichever is less. However, a person shall not be awarded 25 moneys under this subparagraph if the person has been awarded a 26 total of eight hundred thousand dollars under this subparagraph 27 during any period of time and pursuant to all cost-share 28 agreements in which the person participates . 29 (2) Improvements to store, blend, or dispense ethanol 30 blended gasoline classified as E-1 or higher or ethanol 31 classified as E-100. The incentives shall not exceed fifty 32 percent of the actual cost of making the improvement. 33 b. The infrastructure board may approve multiple awards to 34 make improvements to a terminal so long as the total amount 35 -3- HF 859.2048 (5) 89 da/ns 3/ 4

of the awards does not exceed the limitations provided in 1 paragraph “a” . 2 4. 5. A participating terminal operator shall not use 3 the infrastructure to store , blend, or dispense motor fuel 4 other than biodiesel or biodiesel blended fuel or ethanol fuel 5 as provided in the cost-share agreement , unless one of the 6 following applies: 7 a. The participating terminal operator is granted a waiver 8 by the infrastructure board. The participating terminal 9 operator shall store , blend, or dispense the motor fuel 10 according to the terms and conditions of the waiver. 11 b. The renewable fuel infrastructure fund created in section 12 159A.16 is immediately repaid the total amount of moneys 13 awarded to the participating terminal operator together with a 14 monetary penalty equal to twenty-five percent of that awarded 15 amount. The amount shall be deposited in the renewable fuel 16 infrastructure fund created in section 159A.16 . 17 c. A participating terminal operator who acts in violation 18 of an a cost-share agreement executed with the department 19 pursuant to this section is subject to a civil penalty of 20 not more than one thousand dollars a day for each day of the 21 violation. The civil penalty shall be deposited into the 22 general fund of the state. > 23 12. Page 22, by striking lines 15 through 25. 24 13. Page 22, line 26, by striking < b. > and inserting < a. > 25 14. Page 22, line 30, by striking < c. > and inserting < b. > 26 15. Page 23, by striking lines 1 through 9. 27 16. By renumbering as necessary. 28 ______________________________ PAUSTIAN of Scott -4- HF 859.2048 (5) 89 da/ns 4/ 4 #12. #13. #14. #15. #16.