House File 2687 - Enrolled House File 2687 AN ACT RELATING TO RENEWABLE FUEL INFRASTRUCTURE, INCLUDING BY PROVIDING FOR A FINANCING PROGRAM, AND INCLUDING EFFECTIVE DATE PROVISIONS. BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: Section 1. Section 159A.14, subsection 1, paragraph a, subparagraph (1), Code 2024, is amended by striking the subparagraph and inserting in lieu thereof the following: (1) (a) Except as provided in this subparagraph, the ethanol infrastructure shall have the capacity to store and dispense E-85 gasoline. (b) (i) If the ethanol infrastructure is not used to store and dispense E-85 gasoline, it must have the capacity to store and dispense ethanol blended gasoline classified as E-15 or higher. (ii) This subparagraph division is repealed January 1, 2026. (c) (i) If the ethanol infrastructure is not used to store and dispense E-85 gasoline, it must have the capacity to store and dispense ethanol blended gasoline classified as E-40 or higher.

House File 2687, p. 2 (ii) This subparagraph division shall be implemented beginning January 1, 2026. (iii) This subparagraph division is repealed July 1, 2030. (d) The ethanol infrastructure may store, blend, and dispense ethanol or ethanol blended gasoline from a motor fuel blender pump. The ethanol infrastructure must at least include a motor fuel blender pump that dispenses different classifications of ethanol blended gasoline, if it allows E-85 gasoline to be dispensed at all times that the blender pump is operating. Sec. 2. Section 455G.30, Code 2024, is amended by adding the following new subsections: NEW SUBSECTION . 4A. “Dispenser breakaway” means the part of gasoline storage and dispensing infrastructure that acts to immediately stop the flow of motor fuel from its storage system to its dispenser in the event that its dispensing hose or associated hanging infrastructure becomes detached, including when a vehicle pulls away from the dispenser while its nozzle is attached to the vehicle. NEW SUBSECTION . 4B. “E-85 gasoline” means the same as defined in section 214A.1. NEW SUBSECTION . 8. “Shear valve” means the part of gasoline storage and dispensing infrastructure that acts to immediately stop the flow of motor fuel from its storage system to its dispenser in the event of an emergency hazard, including but not limited to a vehicle impacting the dispenser or a fire. Sec. 3. Section 455G.31, subsection 2, Code 2024, is amended to read as follows: 2. Subject to section 455G.32 , a retail dealer may use gasoline storage and dispensing infrastructure to store and dispense ethanol blended gasoline classified as E-9 or higher if the department under this subchapter , or the director of the department of inspections, appeals, and licensing under chapter 101 , determines that the gasoline infrastructure is compatible with the classification of ethanol blended gasoline being used. Sec. 4. Section 455G.32, Code 2024, is amended to read as follows: 455G.32 E-85 gasoline Ethanol blended gasoline —— compatible infrastructure —— compliance requirement.

House File 2687, p. 3 1. A retail dealer shall not install, replace, or convert gasoline storage and dispensing infrastructure used to store and dispense ethanol blended gasoline classified as E-15 or higher, unless the installed, replaced, or converted gasoline infrastructure , that includes all parts prior to the point where the dispenser breakaway ends, is capable of storing and dispensing ethanol blended gasoline classified as E-85 gasoline . 2. a. Notwithstanding subsection 1, a retail dealer may install, replace, or convert any part of the gasoline infrastructure beginning at a point where the shear valve ends and continuing until the point where the dispenser breakaway ends that is incompatible with E-85 gasoline. However, that part of the gasoline infrastructure must be compatible with the following: (1) (a) Ethanol blended gasoline classified as E-15 or higher. (b) This subparagraph is repealed January 1, 2026. (2) (a) Ethanol blended gasoline classified as E-40 or higher. (b) This subparagraph shall be implemented beginning January 1, 2026. b. This subsection is repealed July 1, 2030. 2. 3. The gasoline infrastructure must be all of the following: a. Listed as compatible for use with ethanol blended gasoline classified for that part of the gasoline infrastructure as E-85 provided in subsection 1 by an independent testing laboratory or as approved by the manufacturer. b. Approved by the department or state fire marshal the director of the department of inspections, appeals, and licensing subject to conditions determined necessary by the department or state fire marshal the director of the department of inspections, appeals, and licensing . The department or state fire marshal the director of the department of inspections, appeals, and licensing may waive the requirement in paragraph “a” upon satisfaction that a substitute requirement serves the same purpose.

House File 2687, p. 4 Sec. 5. Section 455G.33, subsection 2, paragraph b, Code 2024, is amended to read as follows: b. Approved by the department , or director of the department of inspections, appeals, and licensing under chapter 101, subject to conditions determined necessary by the department or director of the department of inspections, appeals, and licensing. The department or director of the department of inspections, appeals, and licensing may waive the requirement in paragraph “a” upon satisfaction that a substitute requirement serves the same purpose. Sec. 6. APPLICATIONS FOR FINANCIAL INCENTIVES. This Act does not require the renewable fuel infrastructure board established in section 159A.13 to reconsider or reapprove a decision made prior to the effective date of this Act for an award of financial incentives under the renewable fuel infrastructure program for retail motor fuel sites established in section 159A.14. Sec. 7. EFFECTIVE DATE. This Act, being deemed of immediate importance, takes effect upon enactment. ______________________________ PAT GRASSLEY Speaker of the House ______________________________ AMY SINCLAIR President of the Senate I hereby certify that this bill originated in the House and is known as House File 2687, Ninetieth General Assembly. ______________________________ MEGHAN NELSON Chief Clerk of the House Approved _______________, 2024 ______________________________ KIM REYNOLDS Governor