House File 859 H-1398 Amend House File 859 as follows: 1 1. Page 1, by striking lines 26 through 29. 2 2. Page 1, line 30, by striking < 29B. > and inserting < 29A. > 3 3. Page 1, line 33, by striking < 29C. > and inserting < 29B. > 4 4. Page 2, line 6, after < classification > by inserting < not 5 subject to restrictions > 6 5. Page 2, line 9, after < classification > by inserting < not 7 subject to restrictions > 8 6. Page 5, line 11, by striking < two > and inserting < one > 9 7. Page 5, line 21, by striking < two > and inserting < one > 10 8. Page 6, line 5, by striking < two > and inserting < one > 11 9. By striking page 7, line 32, through page 8, line 4, and 12 inserting: 13 < NEW SUBSECTION . 4. A retail dealer shall not be subject 14 to a criminal or civil penalty under this section or an 15 administrative action suspending or revoking a license under 16 this section or section 214.2A for a violation of any of the 17 following: 18 a. A restriction applying to special use gasoline sold 19 at a retail motor fuel site as provided in section 214A.31, 20 subsections 1 and 2, if all of the following apply: 21 (1) The special use gasoline dispensed at the retail motor 22 fuel site is selected by the end consumer of the gasoline. 23 (2) Each dispensing unit located at the retail motor fuel 24 site is labeled in compliance with applicable federal and state 25 requirements, including as provided in sections 214A.35 and 26 214A.36. 27 b. (1) A restriction applying to special use gasoline 28 sold at a retail motor fuel site provided in section 214A.32, 29 subsections 1 and 2, if all of the following apply: 30 (a) The special use gasoline dispensed at the retail motor 31 fuel site is selected by the end consumer of the gasoline. 32 (b) Each dispensing unit located at the retail motor fuel 33 site is labeled in compliance with applicable federal and state 34 requirements, including as provided in sections 214A.35 and 35 -1- HF 859.2088 (5) 89 da/ns 1/ 12 #1. #2. #3. #4. #5. #6. #7. #8. #9.

214A.36. 1 (2) (a) This paragraph “b” shall be implemented on January 2 1, 2026. 3 (b) This subparagraph (2) is repealed January 2, 2026. 4 c. (1) A restriction applying to special use diesel fuel 5 sold at a retail motor fuel site provided in section 214A.34, 6 subsections 1 and 2, if all of the following apply: 7 (a) The special use diesel fuel dispensed at the retail 8 motor fuel site is selected by the end consumer of the 9 gasoline. 10 (b) Each dispensing unit located at the retail motor fuel 11 site is labeled in compliance with applicable federal and state 12 requirements, including as provided in sections 214A.35 and 13 214A.36. 14 (2) (a) This paragraph “c” shall be implemented on April 15 1, 2022. 16 (b) This subparagraph (2) is repealed April 2, 2022. > 17 10. Page 8, by striking lines 7 through 10 and inserting: 18 < 1. A retail dealer shall not knowingly advertise for sale 19 or knowingly sell special use gasoline classified as E-0 as 20 provided in section 214A.2. 21 2. Notwithstanding subsection 1, a retail dealer may 22 advertise for sale or sell special use gasoline classified 23 as E-0 as provided in section 214A.2 to power an engine that 24 operates any of the following: 25 a. A 1985 or older model year motor vehicle. 26 b. A motorcycle as defined in section 321.1. 27 c. An all-terrain vehicle as defined in section 321.1. 28 d. A snowmobile as defined in section 321G.1. 29 e. A vehicle serviced by a marina, dock, or airport. 30 f. A vehicle principally designed for use off a public 31 highway. 32 g. Machinery or equipment not primarily designed to 33 transport a person or property. 34 3. A retail dealer shall not knowingly advertise for sale 35 -2- HF 859.2088 (5) 89 da/ns 2/ 12 #10.

or knowingly sell special use gasoline classified as E-0 as 1 provided in subsection 2, unless the gasoline is premium grade 2 unleaded gasoline as provided in section 214A.2. > 3 11. Page 8, line 13, after < sale > by inserting < or knowingly 4 sell > 5 12. Page 8, line 17, after < sale > by inserting < or sell > 6 13. Page 8, line 18, after < higher > by inserting < as 7 provided in section 214A.2 > 8 14. Page 8, after line 27 by inserting: 9 < 3. A retail dealer shall not knowingly advertise for sale 10 or knowingly sell special use gasoline classified as E-10 or 11 higher up to but not including E-15 as provided in subsection 12 2, unless the gasoline is premium grade unleaded gasoline as 13 provided in section 214A.2. > 14 15. Page 8, line 28, by striking < 3. > and inserting < 4. > 15 16. Page 8, line 28, by striking < 2028 > and inserting < 2026 > 16 17. Page 8, line 29, by striking < 2028 > and inserting < 2026 > 17 18. By striking page 8, line 30, through page 9, line 4 and 18 inserting: 19 < Sec. ___. NEW SECTION . 214A.33 Gasoline classified as E-15 20 or higher —— retail motor fuel sites. 21 1. A retail dealer who advertises for sale or sells gasoline 22 from more than two dispensing units located at a retail motor 23 fuel site shall not knowingly advertise for sale or knowingly 24 sell gasoline classified as less than E-15 from any number of 25 its dispensing units, unless the retail dealer also advertises 26 for sale or sells gasoline classified as E-15 or higher from at 27 least one of the dispensing units located at the retail motor 28 fuel site. 29 2. Subsection 1 does not apply to a retail motor fuel site 30 that was used by a retail dealer as a permanent location to 31 sell and dispense gasoline at any time within six months prior 32 to the effective date of this section of this division of this 33 Act. > 34 19. Page 9, line 9, after < sale > by inserting < or knowingly 35 -3- HF 859.2088 (5) 89 da/ns 3/ 12 #11. #12. #13. #14. #15. #16. #17. #18.

sell > 1 20. Page 9, line 12, after < sale > by inserting < or sell > 2 21. Page 9, line 13, after < higher > by inserting < as 3 provided in section 214A.2 > 4 22. Page 9, after line 22 by inserting: 5 < 4. a. This section shall be implemented on April 1, 2022. 6 b. This subsection is repealed April 2, 2022. > 7 23. Page 9, line 33, by striking < the sale of > and inserting 8 < for sale or selling > 9 24. Page 10, line 2, after < gasoline. > by inserting < To the 10 extent required by the department, the decal shall describe the 11 types of engines that may be powered by using that gasoline as 12 provided in section 214A.31, subsection 2. > 13 25. Page 10, lines 3 and 4, by striking < the sale of > and 14 inserting < for sale or selling > 15 26. Page 10, line 7, by striking < gasoline and list > and 16 inserting < gasoline. To the extent required by the department, 17 the decal shall describe > 18 27. Page 10, line 11, by striking < 2028 > and inserting 19 < 2026 > 20 28. Page 10, line 12, by striking < 2028 > and inserting 21 < 2026 > 22 29. Page 10, line 13, by striking < the sale of > and 23 inserting < for sale or selling > 24 30. Page 10, line 17, after < 4. > by inserting < a. > 25 31. Page 10, lines 17 and 18, by striking < the sale of > and 26 inserting < for sale or selling > 27 32. Page 10, line 21, by striking < fuel and list > and 28 inserting < fuel. To the extent required by the department, the 29 decal shall describe > 30 33. Page 10, after line 23 by inserting: 31 < b. (1) This subsection shall be implemented on April 1, 32 2022. 33 (2) This paragraph “b” is repealed April 2, 2022. > 34 34. Page 11, by striking lines 4 through 12 and inserting: 35 -4- HF 859.2088 (5) 89 da/ns 4/ 12 #20. #21. #22. #23. #24. #25. #26. #27. #28. #29. #30. #31. #32. #33. #34.

< 2. a. The order may allow the retail dealer to advertise 1 for sale or sell special use gasoline classified as E-0 without 2 restriction, notwithstanding section 214A.31, subsections 1 and 3 2. If the order allows the retail dealer to sell the special 4 use gasoline, it may also allow the retail dealer to advertise 5 for sale or sell the E-0 as regular grade unleaded gasoline, 6 notwithstanding section 214A.31, subsection 3. 7 b. The order may require that the retail dealer affix a 8 clearly visible decal to each dispensing unit discharging such 9 gasoline that describes the gasoline’s allowable use under the 10 order, notwithstanding section 214A.36, subsection 1. 11 3. a. The order may allow the retail dealer to advertise 12 for sale or sell special use gasoline classified as E-10 13 without restriction, notwithstanding section 214A.32, 14 subsections 1 and 2. If the order allows the retail dealer to 15 sell the special use gasoline, it may also allow the retail 16 dealer to advertise for sale or sell the E-10 as regular grade 17 unleaded gasoline, notwithstanding section 214A.32, subsection 18 3. 19 b. The order may require that the retail dealer affix a 20 clearly visible decal to each dispensing unit discharging such 21 gasoline that describes the gasoline’s allowable use under the 22 order, notwithstanding section 214A.36, subsection 2. > 23 35. Page 11, line 13, by striking < b. > and inserting < c. > 24 36. Page 11, line 14, by striking < 2028 > and inserting 25 < 2026 > 26 37. Page 11, line 15, by striking < “b” > and inserting < “c” > 27 38. Page 11, line 15, by striking < 2028 > and inserting 28 < 2026 > 29 39. Page 11, after line 15 by inserting: 30 < 4. The order may allow the retail dealer to advertise for 31 sale or sell ethanol blended gasoline classified as E-10 in 32 lieu of E-15 from a dispensing unit located at a retail motor 33 fuel site without restriction, notwithstanding section 214A.33. 34 If the order allows a retail dealer to advertise for sale and 35 -5- HF 859.2088 (5) 89 da/ns 5/ 12 #35. #36. #37. #38. #39.

sell E-10 from the dispensing unit, it may require that the 1 gasoline is premium grade unleaded gasoline as provided in 2 section 214A.2. > 3 40. Page 11, line 16, by striking < 4. > by inserting < 5. a. > 4 41. Page 11, by striking lines 17 and 18 and inserting < for 5 sale or sell diesel fuel classified as B-0 or biodiesel blended 6 fuel without restriction, notwithstanding section 214A.34. 7 b. The order may require that the retail dealer affix a 8 clearly visible decal to each dispensing unit discharging such 9 diesel fuel that describes the diesel fuel’s allowable use 10 under the order, notwithstanding section 214A.36, subsection 4. 11 c. (1) This subsection shall be implemented on April 1, 12 2022. 13 (2) This paragraph “c” is repealed April 2, 2022. > 14 42. Page 11, line 19, by striking < 5. > and inserting < 6. > 15 43. Page 11, line 21, by striking < grade or classification > 16 and inserting < classification or grade > 17 44. Page 11, line 22, before < standard > by inserting < obtain 18 the required classification of > 19 45. Page 11, line 24, by striking < 6. > and inserting < 7. > 20 46. Page 11, line 27, by striking < 7. > and inserting < 8. > 21 47. Page 11, line 29, by striking < 8. > and inserting < 9. > 22 48. Page 12, by striking lines 4 through 12 and inserting: 23 < 2. a. The order may allow the retail dealer to advertise 24 for sale or sell special use gasoline classified as E-0 without 25 restriction, notwithstanding section 214A.31, subsections 1 and 26 2. If the order allows the retail dealer to sell the special 27 use gasoline, it may also allow the retail dealer to advertise 28 for sale or sell the E-0 as regular grade unleaded gasoline, 29 notwithstanding section 214A.31, subsection 3. 30 b. The order may require that the retail dealer affix a 31 clearly visible decal to each dispensing unit discharging such 32 gasoline that describes the gasoline’s allowable use under the 33 order notwithstanding section 214A.36, subsection 1. 34 3. a. The order may allow the retail dealer to advertise 35 -6- HF 859.2088 (5) 89 da/ns 6/ 12 #40. #41. #42. #43. #44. #45. #46. #47. #48.

for sale or sell special use gasoline classified as E-10 1 without restriction, notwithstanding section 214A.32, 2 subsections 1 and 2. If the order allows the retail dealer to 3 sell the special use gasoline, it may also allow the retail 4 dealer to advertise for sale or sell the E-10 as regular grade 5 unleaded gasoline, notwithstanding section 214A.32, subsection 6 3. 7 b. The order may require that the retail dealer affix a 8 clearly visible decal to each dispensing unit discharging such 9 gasoline that describes the gasoline’s allowable use under the 10 order, notwithstanding section 214A.36, subsection 2. > 11 49. Page 12, line 13, by striking < b. > and inserting < c. > 12 50. Page 12, line 14, by striking < 2028 > and inserting 13 < 2026 > 14 51. Page 12, line 15, by striking < “b” > and inserting < “c” > 15 52. Page 12, line 15, by striking < 2028 > and inserting 16 < 2026 > 17 53. Page 12, after line 15 by inserting: 18 < 4. The order may allow the retail dealer to advertise for 19 sale or sell ethanol blended gasoline classified as E-10 in 20 lieu of E-15 from a dispensing unit located at a retail motor 21 fuel site without restriction, notwithstanding section 214A.33. 22 If the order allows a retail dealer to advertise for sale and 23 sell E-10 from the dispensing unit, it may require that the 24 gasoline is premium grade unleaded gasoline as provided in 25 section 214A.2. > 26 54. Page 12, by striking lines 16 through 19 and inserting: 27 < 5. a. The order may allow retail dealers to advertise 28 for sale or sell diesel fuel classified as B-0 or biodiesel 29 blended fuel as provided in section 214A.2 without restriction, 30 notwithstanding section 214A.34. 31 b. The order may require that the retail dealer affix a 32 clearly visible decal to each dispensing unit discharging such 33 diesel fuel that describes the diesel fuel’s allowable use 34 under the order, notwithstanding section 214A.36, subsection 4. 35 -7- HF 859.2088 (5) 89 da/ns 7/ 12 #49. #50. #51. #52. #53. #54.

c. (1) This subsection shall be implemented on April 1, 1 2022. 2 (2) This paragraph “c” is repealed April 2, 2022. > 3 55. Page 12, line 20, by striking < 5. > and inserting < 6. > 4 56. Page 12, by striking lines 26 and 27 and inserting: 5 < b. It is not commercially feasible to obtain the 6 required classification or grade of gasoline or the required 7 classification of diesel fuel to be advertised for > 8 57. Page 12, line 30, by striking < 6. > and inserting < 7. > 9 58. By striking page 13, line 1, through page 14, line 23, 10 and inserting: 11 < Sec. ___. NEW SECTION . 214A.43 Exception for special use 12 gasoline requirements —— future implementation. 13 1. As used in this section, “department” means the 14 department of natural resources. 15 2. The director of the department may issue an 16 administrative order granting a retail dealer an exception from 17 the requirements of section 214A.32. 18 a. The order may allow the retail dealer to advertise for 19 sale or sell gasoline classified as E-10 or higher and that is 20 premium grade gasoline as provided in section 214A.2 without 21 restriction, notwithstanding section 214A.32. 22 b. The order may require the retail dealer to affix a 23 clearly visible decal to each dispensing unit discharging such 24 gasoline that describes the gasoline’s allowable use under the 25 order, notwithstanding section 214A.36, subsection 2. 26 3. A retail dealer must apply for an exception by submitting 27 a form to the department in a manner and according to 28 procedures required by the department. 29 4. The department shall grant an exception to a retail 30 dealer for each retail motor fuel site identified in the 31 application, if all of the following apply: 32 a. The retail dealer cannot comply with section 214A.32 33 because the retail motor fuel site’s existing underground motor 34 fuel storage and dispensing infrastructure is incompatible with 35 -8- HF 859.2088 (5) 89 da/ns 8/ 12 #55. #56. #57. #58.

standard use gasoline classified as E-15 or higher. 1 b. The retail motor fuel site’s existing underground 2 motor fuel storage and dispensing infrastructure has not been 3 installed, replaced, or converted on or after January 1, 2010. 4 5. The department shall terminate the order granting the 5 exception when the department determines that the retail dealer 6 has installed, replaced, or converted underground motor fuel 7 storage and dispensing infrastructure on or after the effective 8 date of this section of this division of this Act. 9 6. The department shall file the order granting the 10 exception or terminating the exception in the same manner as a 11 final order pursuant to section 17A.3. The order shall take 12 effect on a date stated in the order. > 13 59. Page 14, line 24, by striking < 2028 > and inserting 14 < 2026 > 15 60. Page 14, line 25, by striking < 2028 > and inserting 16 < 2026 > 17 61. Page 14, by striking lines 26 through 31 and inserting: 18 < Sec. ___. RULEMAKING —— EXCEPTION FROM STANDARD USE 19 GASOLINE REQUIREMENTS. The department of natural resources 20 shall adopt rules pursuant to chapter 17A on or before January 21 1, 2025, as necessary to allow retail dealers to apply for 22 an exception from the standard use gasoline requirements and 23 for the department to receive and consider such application as 24 provided in section 214A.43, prior to January 1, 2026. > 25 62. Page 15, line 11, by striking < 214A.1A > and inserting 26 < 214A.1A, subject to the exemptions provided in section 27 214A.11 > 28 63. Page 16, by striking lines 11 through 15 and inserting 29 < to allow retail dealers to apply for an exception from the 30 standard use gasoline requirements as provided in section 31 214A.43 and for the department to consider those applications 32 takes effect upon enactment. > 33 64. Page 16, by striking lines 20 through 26 and inserting: 34 < Sec. ___. Section 159A.11, Code 2021, is amended by adding 35 -9- HF 859.2088 (5) 89 da/ns 9/ 12 #59. #60. #61. #62. #63. #64.

the following new subsection: 1 NEW SUBSECTION . 6A. “Small retail dealer” means a retail 2 dealer engaged in the business of storing and dispensing motor 3 fuel from a motor fuel pump advertised for sale or sold on 4 a retail basis at fewer than ten permanent retail motor fuel 5 sites. > 6 65. Page 17, line 35, by striking < (1) > 7 66. Page 18, by striking lines 2 and 3 and inserting: 8 < (a) (1) Store and dispense biodiesel classified as B-l00 9 or biodiesel blended fuel classified as B-20 or higher . 10 (2) Dispense biodiesel blended fuel classified as B-20 or 11 higher. > 12 67. Page 18, line 4, by striking < (b) > and inserting 13 < (b) (3) > 14 68. Page 18, by striking line 12. 15 69. By striking page 18, line 24, through page 19, line 4, 16 and inserting: 17 < a. (1) The department shall establish an annual deadline 18 for submitting applications by persons seeking to participate 19 in the program. Of all unobligated or unencumbered moneys 20 available to finance eligible persons submitting timely 21 applications, the infrastructure board shall allocate those 22 moneys according to the following formula: 23 (a) For the first category, sixty percent of the available 24 moneys shall be used to finance eligible persons submitting 25 applications to improve retail motor fuel sites that have been 26 constructed and are operating. 27 (b) For the second category, forty percent of the available 28 moneys shall be used to finance eligible persons submitting 29 applications to improve retail motor fuel sites that are in any 30 stage of construction and are not operating. 31 (2) Whether a retail motor fuel site is constructed and 32 operating shall be determined on the date that the application 33 is submitted to the department. 34 (3) For each category the infrastructure board shall 35 -10- HF 859.2088 (5) 89 da/ns 10/ 12 #65. #66. #67. #68. #69.

provide priority to small retail dealers. 1 (4) If available moneys remain after all applications 2 submitted by eligible persons assigned to one category have 3 been approved, the infrastructure board shall use those 4 remaining moneys to finance any eligible persons assigned to 5 the other category. 6 b. The department shall award financial incentives on a 7 cost-share basis to an eligible person whose application was 8 approved by the infrastructure board. > 9 70. Page 20, by striking line 31. 10 71. Page 20, line 32, by striking < (1) > 11 72. Page 21, by striking line 3. 12 73. Page 23, by striking lines 1 through 9. 13 74. Page 24, after line 27 by inserting: 14 < Sec. ___. Section 422.11O, subsection 5, Code 2021, is 15 amended to read as follows: 16 5. a. A retail dealer is eligible to claim an E-85 gasoline 17 promotion tax credit as provided in this section even though 18 the retail dealer claims an E-15 plus gasoline promotion tax 19 credit pursuant to section 422.11Y for the same tax year. 20 b. This subsection is repealed January 1, 2026. > 21 75. Page 26, line 13, by striking < 2028 > and inserting 22 < 2026 > 23 76. Page 26, line 22, by striking < 2028 > and inserting 24 < 2026 > 25 77. Page 27, line 32, by striking < 2027 , and > and inserting 26 < 2025 , and > 27 78. Page 27, line 32, by striking < 2024 2027 > and inserting 28 < 2024 2025 > 29 79. Page 28, line 4, by striking < 2027 > and inserting < 2025 > 30 80. Page 28, line 7, by striking < 2027 > and inserting < 2025 > 31 81. By renumbering as necessary. 32 -11- HF 859.2088 (5) 89 da/ns 11/ 12 #70. #71. #72. #73. #74. #75. #76. #77. #78. #79. #80.