House File 2263 - Introduced



                                       HOUSE FILE       
                                       BY  MAY


    Passed House, Date                Passed Senate,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to motor vehicles and motor vehicle fuel, by
  2    providing for notice to consumers that a motor vehicle is a
  3    flexible fuel motor vehicle.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 6261HH 81
  6 da/sh/8

PAG LIN



  1  1    Section 1.  Section 159A.2, Code 2005, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  3A.  "E=85 gasoline" and "ethanol blended
  1  4 gasoline" mean the same as defined in section 214A.1.
  1  5    Sec. 2.  Section 159A.2, subsection 6, Code 2005, is
  1  6 amended to read as follows:
  1  7    6.  "Renewable fuel" means an energy source at least in
  1  8 part derived from an organic compound capable of powering
  1  9 machinery, including an engine or power plant.  A renewable
  1 10 fuel includes but is not limited to ethanol=blended ethanol
  1 11 blended gasoline or soydiesel fuel.
  1 12    Sec. 3.  Section 159A.6, subsection 2, unnumbered paragraph
  1 13 2, Code 2005, is amended to read as follows:
  1 14    2A.  The committee shall develop standards for decals
  1 15 required pursuant to section 214A.16, which shall be designed
  1 16 to promote the advantages of using renewable fuels.  The
  1 17 standards may be incorporated within a model decal adopted by
  1 18 the committee and approved by the office.  The committee shall
  1 19 assist the state department of transportation in developing
  1 20 standards for a decal required to be affixed to a flexible
  1 21 fuel motor vehicle offered for sale by a dealer pursuant to
  1 22 section 321.163.
  1 23    Sec. 4.  Section 214A.1, Code 2005, is amended by adding
  1 24 the following new subsections:
  1 25    NEW SUBSECTION.  1A.  "E=85 gasoline" means ethanol blended
  1 26 gasoline formulated with a minimum percentage of between
  1 27 seventy=five and eighty=five percent by volume of ethanol, if
  1 28 the formulation meets the standards provided in section
  1 29 214A.2.
  1 30    NEW SUBSECTION.  1B.  "Ethanol" means ethyl alcohol that is
  1 31 denatured as required in 23 C.F.R., pts. 20 and 21, for use as
  1 32 an oxygenate octane enhancer in gasoline.
  1 33    NEW SUBSECTION.  1C.  "Ethanol blended gasoline" means a
  1 34 formulation of gasoline which is a liquid petroleum product
  1 35 blended with ethanol, if the formulation meets the standards
  2  1 provided in section 214A.2.
  2  2    NEW SUBSECTION.  1D.  "Gasoline" means any liquid product
  2  3 prepared, advertised, offered for sale or sold for use as, or
  2  4 commonly and commercially used as, motor vehicle fuel for use
  2  5 in a spark=ignition, internal combustion engine, and which
  2  6 meets the specifications provided in section 214A.2.
  2  7    Sec. 5.  Section 214A.2, subsection 3, Code 2005, is
  2  8 amended by striking the subsection and inserting in lieu
  2  9 thereof the following:
  2 10    3.  For motor vehicle fuel advertised for sale or sold as
  2 11 gasoline by a dealer, the motor vehicle fuel must meet
  2 12 registration requirements for fuels and fuel additives
  2 13 established by the United States environmental protection
  2 14 agency including as provided under 42 U.S.C. } 7545.  If the
  2 15 motor vehicle fuel is advertised for sale or sold as ethanol
  2 16 blended gasoline, the motor vehicle fuel must comply with
  2 17 departmental standards which to every extent feasible shall
  2 18 comply with specifications adopted by A.S.T.M. international.
  2 19    a.  For ethanol blended gasoline all of the following shall
  2 20 apply:
  2 21    (1)  Except as provided in subparagraph (2), at least ten
  2 22 percent of the gasoline by volume must be ethanol.
  2 23    (2)  For E=85 gasoline all of the following must apply:
  2 24    (a)  From the first day of April until the last day of
  2 25 October, at least eighty=five percent of the gasoline by
  2 26 volume must be ethanol.
  2 27    (b)  From the first day of November until the last day of
  2 28 March, at least seventy=five percent of the gasoline by volume
  2 29 must be ethanol.
  2 30    b.  In calculating the percentage of ethanol required for
  2 31 the formulation of ethanol blended fuel, a percentage of a
  2 32 denaturant or contaminants permitted in the ethanol blended
  2 33 gasoline may be excluded as provided by rules adopted by the
  2 34 department.
  2 35                     FLEXIBLE FUEL VEHICLES
  3  1    Sec. 6.  NEW SECTION.  321.163  FLEXIBLE FUEL MOTOR
  3  2 VEHICLES == DECAL REQUIRED.
  3  3    A dealer who sells motor vehicles on a retail basis shall
  3  4 affix a removable decal on each flexible fuel motor vehicle
  3  5 equipped with an engine operating using E=85 gasoline as
  3  6 defined in section 214A.1 which notifies consumers that the
  3  7 motor vehicle is a flexible fuel motor vehicle.  The dealer
  3  8 shall affix the decal to a flexible fuel motor vehicle's
  3  9 windshield or motor fuel tank door.  The department may
  3 10 approve an application submitted by a dealer in a manner
  3 11 prescribed by the department to affix the decal in a special
  3 12 location on the motor vehicle or use a temporary placard
  3 13 conspicuously placed on the flexible fuel motor vehicle in a
  3 14 manner approved by the department until the decal is
  3 15 available.  The department shall adopt standards for the
  3 16 design of the decal in cooperation with the renewable fuels
  3 17 and coproducts advisory committee established pursuant to
  3 18 section 159A.4.
  3 19    Sec. 7.  Section 452A.2, Code Supplement 2005, is amended
  3 20 by adding the following new subsection:
  3 21    NEW SUBSECTION.  9A.  "E=85 gasoline" means the same as
  3 22 defined in section 214A.1.
  3 23    Sec. 8.  Section 452A.2, subsection 11, Code Supplement
  3 24 2005, is amended to read as follows:
  3 25    11.  "Ethanol blended gasoline" means motor fuel containing
  3 26 at least ten percent alcohol distilled from cereal grains the
  3 27 same as defined in section 214A.1.
  3 28    Sec. 9.  Section 452A.3, subsection 1B, Code Supplement
  3 29 2005, is amended to read as follows:
  3 30    1B.  An excise tax of seventeen cents is imposed on each
  3 31 gallon of E=85 gasoline, which contains at least eighty=five
  3 32 percent denatured alcohol by volume from the first day of
  3 33 April until the last day of October or seventy percent
  3 34 denatured alcohol from the first day of November until the
  3 35 last day of March, used for the privilege of operating motor
  4  1 vehicles in this state.
  4  2                           EXPLANATION
  4  3    This bill amends Code chapter 214A, which provides
  4  4 authority to the department of agriculture and land
  4  5 stewardship to regulate the sale of motor vehicle fuel.  The
  4  6 bill amends Code section 214A.1 by providing definitions for
  4  7 "ethanol", "ethanol blended gasoline", and "E=85 gasoline".
  4  8 It also amends Code section 214A.2, which provides for
  4  9 different types of gasoline and establishes standards for
  4 10 gasoline, commonly based on A.S.T.M. international
  4 11 specifications.  The bill amends the section to require that
  4 12 ethanol blended gasoline contain a blend of at least 10
  4 13 percent ethanol.  It designates gasoline with a minimum
  4 14 seasonal blend of between 75 and 85 percent or more ethanol as
  4 15 E=85 blended gasoline based on current law (see Code
  4 16 Supplement section 452A.3).
  4 17    The bill amends Code chapter 321, which regulates motor
  4 18 vehicles and the law of the road.  Specifically, it regulates
  4 19 dealers who have an established place of business in this
  4 20 state for purposes of buying, selling, or exchanging motor
  4 21 vehicles registered under the Code chapter.
  4 22    The bill provides that a dealer who sells motor vehicles on
  4 23 a retail basis must affix a removable decal on each flexible
  4 24 fuel motor vehicle equipped with an engine operating using E=
  4 25 85 gasoline which notifies consumers that the motor vehicle is
  4 26 a flexible fuel motor vehicle.  The bill provides where the
  4 27 decal is to be placed on the flexible fuel motor vehicle and
  4 28 allows a dealer to use a placard in lieu of the decal until
  4 29 the decal is available.  The department must establish
  4 30 standards for the design of the decal in cooperation with the
  4 31 renewable fuels and coproducts advisory committee established
  4 32 within the department of agriculture and land stewardship.
  4 33 LSB 6261HH 81
  4 34 da:rj/sh/8