House File 2548 - Introduced
HOUSE FILE
BY MURPHY, KUHN, GASKILL, FREVERT,
JOCHUM, WHITEAD, FORD, D. OLSON,
BUKTA, WENDT, SHOMSHOR, WHITAKER,
HEDDENS, WISE, REICHERT, REASONER,
SHOULTZ, T. TAYLOR, DAVITT, BELL,
FOEGE, COHOON, HOGG, HUNTER,
THOMAS, PETTENGILL, D. TAYLOR,
JACOBY, LYKAM, MILLER, SWAIM,
LENSING, WESSEL=KROESCHELL,
and WINCKLER
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the formulation of motor vehicle fuel, by
2 providing for ethanol blended gasoline, providing for the
3 promotion of ethanol blended gasoline and biodiesel and
4 biodiesel blended gasoline, providing tax incentives,
5 providing incentives for infrastructure used to store and
6 dispense E=85 gasoline, making appropriations, providing
7 penalties, and providing retroactive applicability and
8 effective dates.
9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
10 TLSB 5573YH 81
11 da/je/5
PAG LIN
1 1 DIVISION I
1 2 ESTABLISHMENT OF RENEWABLE FUEL STANDARDS
1 3 Section 1. Section 214A.1, Code 2005, is amended by adding
1 4 the following new subsections:
1 5 NEW SUBSECTION. 0A. "Advertise" means to present a
1 6 commercial message in any medium, including but not limited to
1 7 print, radio, television, sign, display, label, tag, or
1 8 articulation.
1 9 NEW SUBSECTION. 1A. "Biodiesel" means a renewable fuel
1 10 comprised of mono=alkyl esters of long=chain fatty acids
1 11 derived from vegetable oils or animal fats, which meets the
1 12 standards provided in section 214A.2.
1 13 NEW SUBSECTION. 1B. "Biodiesel blended fuel" means a
1 14 blend of biodiesel with petroleum=based diesel fuel which
1 15 meets the standards, including separately the standard for its
1 16 biodiesel constituent, provided in section 214A.2.
1 17 NEW SUBSECTION. 1C. "Business association" means the same
1 18 as defined in section 202B.102.
1 19 NEW SUBSECTION. 1D. "Committee" means the renewable fuels
1 20 and coproducts advisory committee established pursuant to
1 21 section 159A.4.
1 22 NEW SUBSECTION. 1E. "Dealer" means a wholesale dealer or
1 23 retail dealer.
1 24 NEW SUBSECTION. 1F. "Diesel fuel" means any liquid
1 25 product prepared, advertised, offered for sale, or sold for
1 26 use as, or commonly and commercially used as, motor fuel for
1 27 use in an internal combustion engine and ignited by pressure
1 28 without the presence of an electric spark, and which meets the
1 29 specifications provided in section 214A.2.
1 30 NEW SUBSECTION. 1G. "E=85 gasoline" means ethanol blended
1 31 gasoline formulated with a minimum percentage of between
1 32 seventy=five and eighty=five percent by volume of ethanol, if
1 33 the formulation meets the standards provided in section
1 34 214A.2.
1 35 NEW SUBSECTION. 1H. "Ethanol" means ethyl alcohol that is
2 1 denatured as required in 23 C.F.R., pts. 20 and 21, for use as
2 2 an oxygenate in gasoline.
2 3 NEW SUBSECTION. 1I. "Ethanol blended gasoline" means a
2 4 formulation of gasoline which is a liquid petroleum product
2 5 blended with ethanol, if the formulation meets the standards
2 6 provided in section 214A.2.
2 7 NEW SUBSECTION. 1J. "Gasoline" means any liquid product
2 8 prepared, advertised, offered for sale or sold for use as, or
2 9 commonly and commercially used as, motor fuel for use in a
2 10 spark=ignition, internal combustion engine, and which meets
2 11 the specifications provided in section 214A.2.
2 12 NEW SUBSECTION. 2A. "Motor fuel pump" means the same as
2 13 defined in section 214.1.
2 14 NEW SUBSECTION. 2B. "Motor fuel retail business" means a
2 15 person who is a retail dealer or who exercises control over
2 16 the management decisions of a retail dealer, including any
2 17 business association, which owns or controls one or more
2 18 service stations.
2 19 NEW SUBSECTION. 5A. "Renewable fuel" means a combustible
2 20 liquid derived from grain starch, oilseed, animal fat, or
2 21 other biomass; or produced from a biogas source, including any
2 22 nonfossilized decaying organic matter which is capable of
2 23 powering machinery, including but not limited to an engine or
2 24 power plant. Renewable fuel includes but is not limited to
2 25 ethanol blended gasoline, biodiesel, or biodiesel blended fuel
2 26 meeting the standards provided in section 214A.2.
2 27 NEW SUBSECTION. 7A. "Service station" means each
2 28 geographic location in this state where a retail dealer sells
2 29 and dispenses motor fuel on a retail basis.
2 30 Sec. 2. Section 214A.1, subsection 2, Code 2005, is
2 31 amended to read as follows:
2 32 2. "Motor vehicle fuel" means a substance or combination
2 33 of substances which is intended to be or is capable of being
2 34 used for the purpose of propelling or running by combustion
2 35 any of operating an internal combustion engine, including but
3 1 not limited to a motor vehicle, and is kept for sale or sold
3 2 for that purpose. The products commonly known as kerosene and
3 3 distillate or petroleum products of lower gravity (Baume
3 4 scale), when not used to propel a motor vehicle or for
3 5 compounding or combining with a motor vehicle fuel, are exempt
3 6 from this chapter except as provided in section 214A.2A.
3 7 Sec. 3. Section 214A.1, subsections 6 and 8, Code 2005,
3 8 are amended by striking the subsections and inserting in lieu
3 9 thereof the following:
3 10 6. "Retail dealer" means a person engaged in the business
3 11 of storing and dispensing motor fuel from a motor fuel pump
3 12 for sale on a retail basis.
3 13 8. "Wholesale dealer" means a person, other than a retail
3 14 dealer, who operates a place of business where motor fuel is
3 15 stored and dispensed for sale in this state, including a
3 16 permanent or mobile location.
3 17 Sec. 4. Section 214A.2, subsection 1, Code 2005, is
3 18 amended to read as follows:
3 19 1. The secretary department shall adopt rules pursuant to
3 20 chapter 17A for carrying out this chapter. The rules may
3 21 include, but are not limited to, specifications relating to
3 22 motor fuel or oxygenate octane enhancers, including but not
3 23 limited to renewable fuel such as ethanol blended gasoline,
3 24 biodiesel, biodiesel blended fuel, and motor fuel components
3 25 such as an oxygenate. In the interest of uniformity, the
3 26 secretary department shall adopt by reference or otherwise
3 27 other specifications relating to tests and standards for motor
3 28 fuel or oxygenate octane enhancers including renewable fuel
3 29 and motor fuel components, established by the United States
3 30 environmental protection agency or A.S.T.M. (American society
3 31 for testing and materials) international, unless the secretary
3 32 determines those specifications are inconsistent with this
3 33 chapter or are not appropriate to the conditions which exist
3 34 in this state. In adopting standards for a renewable fuel,
3 35 the department shall consult with the committee.
4 1 Sec. 5. Section 214A.2, Code 2005, is amended by adding
4 2 the following new subsection:
4 3 NEW SUBSECTION. 2A. a. For motor fuel advertised for
4 4 sale or sold as gasoline by a dealer, the motor fuel must meet
4 5 registration requirements for that type of motor fuel and its
4 6 additives established by the United States environmental
4 7 protection agency including as provided under 42 U.S.C. }
4 8 7545.
4 9 b. If the motor fuel is advertised for sale or sold as
4 10 ethanol blended gasoline, the motor fuel must comply with
4 11 departmental standards which to every extent feasible shall
4 12 comply with specifications for ethanol blended gasoline
4 13 adopted by A.S.T.M. international. For ethanol blended
4 14 gasoline all of the following shall apply:
4 15 (1) For ethanol blended gasoline other than E=85 gasoline,
4 16 at least ten percent of the gasoline by volume must be
4 17 ethanol.
4 18 (2) For E=85 gasoline all of the following must apply:
4 19 (a) From the first day of April until the last day of
4 20 October, at least eighty=five percent of the gasoline by
4 21 volume must be ethanol.
4 22 (b) From the first day of November until the last day of
4 23 March, at least seventy=five percent of the gasoline by volume
4 24 must be ethanol.
4 25 (3) In calculating the percentage of ethanol required for
4 26 the formulation of ethanol blended gasoline fuel, a percentage
4 27 of a denaturant or contaminants permitted in the ethanol
4 28 blended gasoline may be excluded as provided by rules adopted
4 29 by the department.
4 30 Sec. 6. Section 214A.2, subsection 3, Code 2005, is
4 31 amended by striking the subsection and inserting in lieu
4 32 thereof the following:
4 33 3. a. For motor fuel advertised for sale or sold as
4 34 biodiesel or biodiesel blended fuel by a dealer, the motor
4 35 fuel must meet registration requirements for that type of
5 1 motor fuel and its additives established by the United States
5 2 environmental protection agency including as provided under 42
5 3 U.S.C. } 7545.
5 4 b. The motor fuel must comply with departmental standards
5 5 which to every extent feasible shall comply with
5 6 specifications adopted by A.S.T.M. international for biodiesel
5 7 or biodiesel blended fuel.
5 8 (1) At least one percent of biodiesel blended fuel by
5 9 volume must be biodiesel.
5 10 (2) The biodiesel may be blended with diesel fuel whose
5 11 sulfur, aromatic, lubricity, and octane levels are outside
5 12 A.S.T.M. international specification D=975 Grades 1=D, 2=D,
5 13 and low sulfur 1=D and 2=D, provided that the finished
5 14 biodiesel blended fuel meets its applicable A.S.T.M.
5 15 international specifications for these properties.
5 16 Sec. 7. Section 214A.2A, Code 2005, is amended to read as
5 17 follows:
5 18 214A.2A KEROSENE LABELING.
5 19 1. Fuel which is sold or is kept, offered, or exposed for
5 20 sale as kerosene shall be labeled as kerosene. The label
5 21 shall include the word "kerosene" and a designation as either
5 22 "K1" or "K2", and shall indicate that the kerosene is in
5 23 compliance with the standard specification adopted by the
5 24 A.S.T.M. in international specification D=3699 (1982).
5 25 2. A product commonly known as kerosene and distillate or
5 26 a petroleum product of lower gravity (Baume scale), when not
5 27 used to propel a motor vehicle or for compounding or combining
5 28 with a motor fuel, are exempt from this chapter except as
5 29 provided in this section.
5 30 Sec. 8. Section 214A.3, Code 2005, is amended by striking
5 31 the section and inserting in lieu thereof the following:
5 32 214A.3 ADVERTISING.
5 33 1. For all motor fuel, a person shall not knowingly do any
5 34 of the following:
5 35 a. Advertise the sale of any motor fuel which does not
6 1 meet the standards provided in section 214A.2.
6 2 b. Falsely advertise the quality or kind of any motor fuel
6 3 or a component of motor fuel.
6 4 c. Add a coloring matter to the motor fuel which misleads
6 5 a person who is purchasing the motor fuel about the quality of
6 6 the motor fuel.
6 7 2. For a renewable fuel, all of the following applies:
6 8 a. A person shall not knowingly falsely advertise that a
6 9 motor fuel is a renewable fuel or is not a renewable fuel.
6 10 b. (1) Ethanol blended gasoline sold by a dealer shall be
6 11 designated E=xx where "xx" is the volume percent of ethanol in
6 12 the ethanol blended gasoline. A person shall not knowingly
6 13 falsely advertise ethanol blended gasoline by using an
6 14 inaccurate designation in violation of this subparagraph.
6 15 (2) Biodiesel blended fuel shall be designated B=xx where
6 16 "xx" is the volume percent of biodiesel in the biodiesel
6 17 blended fuel. A person shall not knowingly falsely advertise
6 18 biodiesel blended fuel by using an inaccurate designation in
6 19 violation of this subparagraph.
6 20 Sec. 9. Section 214A.11, Code 2005, is amended to read as
6 21 follows:
6 22 214A.11 VIOLATIONS PENALTY.
6 23 Any A person violating the provisions who violates a
6 24 provision of this chapter shall be is guilty of a simple
6 25 serious misdemeanor.
6 26 SUBCHAPTER 2
6 27 PETROLEUM REPLACEMENT INITIATIVE
6 28 Sec. 10. NEW SECTION. 214A.31 RENEWABLE FUELS SOLD AND
6 29 DISPENSED DURING A DETERMINATION PERIOD.
6 30 For each determination period beginning January 1 and
6 31 ending December 31, the department of revenue shall obtain
6 32 information regarding the distribution of renewable fuels
6 33 dispensed from motor fuel pumps located at service stations in
6 34 this state, including information required to calculate all of
6 35 the following:
7 1 1. The aggregate distribution percentage for a motor fuel
7 2 retail business, which is the total number of gallons of
7 3 ethanol sold and dispensed as a formulation of ethanol blended
7 4 gasoline from motor fuel pumps located at all service stations
7 5 owned or controlled by the motor fuel retail business in this
7 6 state as expressed as a percentage of the total number of
7 7 gallons of gasoline sold and dispensed from all motor fuel
7 8 pumps located at all service stations owned or controlled by
7 9 the motor fuel retail business in this state, which percentage
7 10 is used in determining whether the motor fuel retail business
7 11 meets the threshold as provided in the petroleum replacement
7 12 schedule established pursuant to sections 214A.33 and 214A.34.
7 13 2. The total number of gallons of biodiesel sold and
7 14 dispensed as a formulation of biodiesel blended fuel from
7 15 motor fuel pumps located at all service stations owned or
7 16 controlled by a motor fuel retail business in this state,
7 17 which is used in determining whether the motor fuel retail
7 18 business meets the threshold as provided in the petroleum
7 19 replacement schedule established pursuant to sections 214A.33
7 20 and 214A.34.
7 21 Sec. 11. NEW SECTION. 214A.32 RENEWABLE FUELS SOLD AND
7 22 DISPENSED DURING A DETERMINATION PERIOD == REPORT.
7 23 1. The department of agriculture and land stewardship, in
7 24 cooperation with the committee, and the department of revenue
7 25 shall jointly monitor the progress of each motor fuel retail
7 26 business in meeting the thresholds as provided in the
7 27 petroleum replacement schedule established pursuant to
7 28 sections 214A.33 and 214A.34.
7 29 2. On or before February 1 following a determination
7 30 period, the department of revenue shall send a report which
7 31 compiles the information obtained pursuant to section 214A.31
7 32 to the department of agriculture and land stewardship and the
7 33 fiscal services division of the legislative services agency.
7 34 The report shall state whether the aggregate distribution
7 35 percentage for each motor fuel retail business for the
8 1 determination period meets the threshold required as provided
8 2 in section 214A.33, and if the threshold is not met, the
8 3 amount of additional renewable fuel required to be sold and
8 4 dispensed from all motor fuel pumps located at all service
8 5 stations owned or controlled by each motor fuel retail
8 6 business in order to meet the threshold.
8 7 Sec. 12. NEW SECTION. 214A.33 PETROLEUM REPLACEMENT
8 8 SCHEDULE.
8 9 A petroleum replacement schedule is established based on
8 10 aggregate distribution percentages calculated by the
8 11 department of revenue for each determination period pursuant
8 12 to section 214A.31.
8 13 1. a. For a motor fuel retail business that sells and
8 14 dispenses more than five hundred thousand gallons of gasoline,
8 15 all of the following shall apply:
8 16 (1) For each determination period in the period beginning
8 17 January 1, 2008, and ending December 31, 2009, the threshold
8 18 for the aggregate distribution percentage must be ten percent.
8 19 (2) For each determination period in the period beginning
8 20 January 1, 2010, and ending December 31, 2011, the threshold
8 21 for the aggregate distribution percentage must be fifteen
8 22 percent.
8 23 (3) For each determination period in the period beginning
8 24 January 1, 2012, and ending December 31, 2014, the threshold
8 25 for the aggregate distribution percentage must be twenty
8 26 percent.
8 27 (4) For each determination period beginning on or after
8 28 January 1, 2015, the threshold for the aggregate distribution
8 29 percentage must be twenty=five percent.
8 30 b. If a business does not meet a threshold for a
8 31 determination period as provided in paragraph "a", each gallon
8 32 of biodiesel that is sold and dispensed as a formulation of
8 33 biodiesel blended fuel from motor fuel pumps located at all
8 34 service stations owned or controlled by the motor fuel retail
8 35 business shall be counted as a gallon of ethanol.
9 1 2. a. For a motor fuel retail business that sells and
9 2 dispenses five hundred thousand gallons of gasoline or less,
9 3 all of the following shall apply:
9 4 (1) For each determination period in the period beginning
9 5 January 1, 2010, and ending December 31, 2011, the threshold
9 6 for the aggregate distribution percentage must be ten percent.
9 7 (2) For each determination period in the period beginning
9 8 January 1, 2012, and ending December 31, 2013, the threshold
9 9 for the aggregate distribution percentage must be fifteen
9 10 percent.
9 11 (3) For each determination period in the period beginning
9 12 January 1, 2014, and ending December 31, 2016, the threshold
9 13 for the aggregate distribution percentage must be twenty
9 14 percent.
9 15 (4) For each determination period in the period beginning
9 16 on or after January 1, 2017, the threshold for the aggregate
9 17 distribution percentage must be twenty=five percent.
9 18 b. If a motor fuel retail business does not meet a
9 19 threshold for a determination period as provided in paragraph
9 20 "a", each gallon of biodiesel that is sold and dispensed as a
9 21 formulation of biodiesel blended fuel from motor fuel pumps
9 22 located at all service stations owned or controlled by the
9 23 motor fuel retail business shall be counted as a gallon of
9 24 ethanol.
9 25 Sec. 13. NEW SECTION. 214A.34 PETROLEUM REPLACEMENT
9 26 SCHEDULE == ADJUSTMENT.
9 27 1. A threshold for an aggregate distribution percentage
9 28 for a determination period established in the petroleum
9 29 replacement schedule provided in section 214A.33 shall be
9 30 based on an assumption that a target number of flexible fuel
9 31 vehicles using E=85 gasoline are registered under chapter 321.
9 32 The target numbers of flexible fuel vehicles are as
9 33 follows:
9 34 a. On December 1 of 2010 and 2011, three hundred ninety=
9 35 five thousand.
10 1 b. On December 1 of 2012 through 2014, five hundred fifty
10 2 thousand.
10 3 c. On December 1 of 2015 and each year after that, eight
10 4 hundred twenty=five thousand.
10 5 2. The department of revenue shall adjust a threshold for
10 6 the aggregate distribution percentage for a determination
10 7 period if the department determines that less than the target
10 8 number of flexible fuel vehicles are registered pursuant to
10 9 chapter 321. The department shall calculate the total number
10 10 of gallons of ethanol that would be used if the target number
10 11 of flexible fuel vehicles were registered and adjust the
10 12 threshold for the aggregate distribution percentage
10 13 proportionally to account for the decrease in ethanol use.
10 14 Sec. 14. NEW SECTION. 214A.35 PUBLICATION OF THE
10 15 PETROLEUM REPLACEMENT SCHEDULE THRESHOLD.
10 16 The department shall state the total number of flexible
10 17 fuel vehicles registered on December 1 of each year, whether
10 18 the target number of flexible fuel vehicles have been
10 19 registered as provided in section 214A.34, and the threshold
10 20 for the aggregate distribution percentage for the following
10 21 determination period as provided in section 214A.33. If the
10 22 department of revenue is required to adjust a threshold for
10 23 the aggregate distribution percentage for a determination
10 24 period as provided in section 214A.34, the department shall
10 25 state the adjusted threshold. The statements shall be
10 26 delivered to the administrative code editor by December 10 for
10 27 publication in the next edition of the Iowa administrative
10 28 bulletin.
10 29 Sec. 15. NEW SECTION. 214A.36 FAILURE TO COMPLY WITH
10 30 PETROLEUM REPLACEMENT SCHEDULE == PETROLEUM REPLACEMENT ORDER.
10 31 If at the end of a determination period a motor fuel retail
10 32 business has not met a threshold for the aggregate
10 33 distribution percentage for the determination period as
10 34 published in the Iowa administrative bulletin pursuant to
10 35 section 214A.35, the secretary shall issue an accelerated
11 1 petroleum replacement order after consulting with the
11 2 committee and the department of revenue.
11 3 1. a. The secretary shall deliver the order to each motor
11 4 fuel retail business that fails to meet the threshold.
11 5 b. The secretary shall compile a report listing each motor
11 6 fuel retail business that fails to meet the threshold. The
11 7 report shall be delivered to all of the following:
11 8 (1) The secretary of the senate and the chief clerk of the
11 9 house of representatives.
11 10 (2) The office of attorney general.
11 11 (3) The department of revenue.
11 12 (4) The fiscal services division of the legislative
11 13 services agency.
11 14 c. The accelerated petroleum replacement order shall take
11 15 effect as provided in the order but no later than thirty days
11 16 following the order's issuance.
11 17 d. The secretary may delay issuing the order or may
11 18 suspend the effectiveness of the order for up to twelve months
11 19 if the secretary determines that a shortage in the production
11 20 biomass feedstock will result in a dramatic decrease in
11 21 ethanol inventories.
11 22 2. If the secretary issues a petroleum replacement order,
11 23 all of the following shall apply:
11 24 a. The motor fuel retail business that fails to meet the
11 25 threshold, including each motor fuel retail business owned or
11 26 controlled by a retail dealer, shall not be eligible to claim
11 27 an ethanol blended gasoline tax credit as provided in sections
11 28 422.11C or 422.33 for any part of the tax year which is
11 29 subject to the petroleum replacement order.
11 30 b. (1) Except as provided in subparagraph (2), a retail
11 31 dealer that is owned or controlled by a motor fuel retail
11 32 business which fails to meet the threshold shall not advertise
11 33 for sale, sell, or dispense gasoline other than ethanol
11 34 blended gasoline in this state.
11 35 (2) A retail dealer may advertise for sale, sell, or
12 1 dispense gasoline, other than ethanol blended gasoline, in
12 2 this state if both of the following apply:
12 3 (a) The gasoline is used to operate one of the following
12 4 motor vehicles:
12 5 (i) An aircraft as defined in section 328.1.
12 6 (ii) A motor vehicle used exclusively for motor sports,
12 7 including on a raceway, if the motor vehicle cannot operate on
12 8 a highway as provided in chapter 321 or rules adopted by the
12 9 state department of transportation.
12 10 (iii) An antique vehicle registered under section 321.115.
12 11 (iv) A snowmobile as defined in section 321G.1.
12 12 (v) An all=terrain vehicle as defined in section 321G.1.
12 13 (vi) A watercraft as defined in section 462A.2.
12 14 (vii) A small motor such as a lawnmower motor.
12 15 (b) The retail dealer does not use more than one motor
12 16 fuel pump located at a service station to sell and dispense
12 17 the gasoline.
12 18 Sec. 16. Section 422.11C, Code 2005, is amended by adding
12 19 the following new subsection:
12 20 NEW SUBSECTION. 6. A taxpayer shall not be eligible to
12 21 claim the tax credit for any part of the tax year which is
12 22 subject to a petroleum replacement order that applies to the
12 23 retail dealer as provided in section 214A.36.
12 24 Sec. 17. Section 422.33, subsection 11, Code Supplement
12 25 2005, is amended by adding the following new paragraph:
12 26 NEW PARAGRAPH. e. A taxpayer shall not be eligible to
12 27 claim the tax credit for any part of the tax year which is
12 28 subject to a petroleum replacement order that applies to the
12 29 retail dealer as provided in section 214A.36.
12 30 DIVISION II
12 31 MOTOR FUEL FRANCHISE AGREEMENTS ==
12 32 SUPPLIES OF E=85 GASOLINE
12 33 Sec. 18. Section 323A.1, Code 2005, is amended by adding
12 34 the following new subsections:
12 35 NEW SUBSECTION. 0A. "E=85 gasoline" means the same as
13 1 defined in section 214A.1.
13 2 NEW SUBSECTION. 0B. "Ethanol blended gasoline" means the
13 3 same as defined in section 214A.1.
13 4 Sec. 19. Section 323A.1, subsection 4, Code 2005, is
13 5 amended to read as follows:
13 6 4. "Motor fuel" means gasoline or diesel fuel the same as
13 7 motor fuel as defined in section 214A.1, which is of a type
13 8 distributed for use as a fuel in self=propelled vehicles
13 9 designed primarily for use on public streets, roads, and
13 10 highways.
13 11 Sec. 20. Section 323A.2, subsection 1, paragraph a, Code
13 12 2005, is amended to read as follows:
13 13 a. At least forty=eight hours prior to entering into an
13 14 agreement to purchase motor fuel from another source, the
13 15 franchisee has requested delivery of motor fuel from the
13 16 franchisor and the requested motor fuel has not been delivered
13 17 and the franchisor has given the franchisee notice that the
13 18 franchisor is unable to provide the requested motor fuel, or
13 19 prior to entering into an agreement the franchisor has stated
13 20 to the franchisee that the requested motor fuel will not be
13 21 delivered. The request to the franchisor for delivery shall
13 22 be for a type of fuel normally provided by the franchisor to
13 23 the franchisee and for a quantity of fuel not exceeding the
13 24 average amount sold by the franchisee in one week, based upon
13 25 average weekly sales in the three months preceding the
13 26 request, except that this provision shall not restrict a
13 27 franchisee from purchasing ethanol blended gasoline from a
13 28 source other than the franchisor or limit the quantity to be
13 29 purchased when the franchisor does not normally supply the
13 30 franchisee with ethanol blended gasoline. A franchisee may
13 31 also purchase E=85 gasoline as provided in section 323A.2A.
13 32 Sec. 21. NEW SECTION. 323A.2A PURCHASE OF E=85 GASOLINE
13 33 FROM OTHER SOURCE.
13 34 1. a. When on and after the effective date of this Act, a
13 35 franchise is entered into or renewed, the franchisor shall
14 1 provide for the delivery of volumes of E=85 gasoline at times
14 2 demanded by the franchisee or shall allow the franchisee to
14 3 purchase those volumes of E=85 gasoline at those times from
14 4 another source.
14 5 b. If a franchise is in effect on the effective date of
14 6 this Act and does not have an expiration date, the franchisor
14 7 shall provide for the delivery of volumes of E=85 gasoline at
14 8 times demanded by the franchisee or shall allow the franchisee
14 9 to purchase those volumes of E=85 gasoline at those times from
14 10 another source.
14 11 2. If the franchisee sells E=85 gasoline delivered from a
14 12 source other than the franchisor, the franchisee shall
14 13 prominently post a sign disclosing this fact to the public on
14 14 each motor fuel pump used for dispensing the E=85 gasoline.
14 15 The size of the sign shall not be less than eight inches by
14 16 ten inches and the letters on the sign shall be at least three
14 17 inches in height.
14 18 3. A franchisee who sells E=85 gasoline delivered from a
14 19 source other than the franchisor shall also fully indemnify
14 20 the franchisor against any claims asserted by a user on which
14 21 the claimant prevails and in which the court determines that
14 22 E=85 gasoline not acquired from the franchisor was the
14 23 proximate cause of the injury.
14 24 4. a. A purchase of E=85 gasoline in accordance with this
14 25 section is not good cause for the termination of a franchise.
14 26 b. A term of a franchise that is inconsistent with this
14 27 section is void and unenforceable.
14 28 Sec. 22. EFFECTIVE DATE. This division, being deemed of
14 29 immediate importance, takes effect upon enactment.
14 30 DIVISION III
14 31 NOTICE OF FLEXIBLE FUEL MOTOR VEHICLES AND
14 32 E=85 GASOLINE STATIONS
14 33 Sec. 23. Section 321.1, Code Supplement 2005, is amended
14 34 by adding the following new subsections:
14 35 NEW SUBSECTION. 23A. "E=85 gasoline" means the same as
15 1 defined in section 214A.1.
15 2 NEW SUBSECTION. 25A. "Flexible fuel vehicle" means a
15 3 vehicle equipped with an engine using E=85 gasoline.
15 4 NEW SUBSECTION. 71A. "Service station" means the same as
15 5 defined in section 214A.1.
15 6 Sec. 24. NEW SECTION. 321.16A INTERNET SITE == FLEXIBLE
15 7 FUEL.
15 8 The department shall publish information relating to
15 9 flexible fuel on its internet website. The information shall
15 10 include all of the following:
15 11 1. A current list of available makes and models of
15 12 flexible fuel vehicles.
15 13 2. The locations of all service stations that sell and
15 14 dispense E=85 gasoline. The internet website shall include a
15 15 map which illustrates the locations of the service stations.
15 16 Sec. 25. Section 321.31, subsection 1, unnumbered paragraph
15 17 1, Code 2005, is amended to read as follows:
15 18 a. The department shall install and maintain a records
15 19 system which shall contain all of the following:
15 20 (1) The name and address of the vehicle owner,.
15 21 (2) The current and previous registration number, of the
15 22 vehicle.
15 23 (3) The vehicle identification number,.
15 24 (4) The make, model, style, of the vehicle.
15 25 (5) Whether the vehicle is a flexible fuel vehicle.
15 26 (6) The date of the vehicle's purchase,.
15 27 (7) The registration certificate number,.
15 28 (8) The maximum gross weight, and weight, of the vehicle.
15 29 (9) The list price or value of the vehicle as fixed by the
15 30 department,.
15 31 (10) The fees paid and date of payment.
15 32 b. The records system shall also contain a record of the
15 33 certificate of title including such information as the
15 34 department deems necessary. The information to be kept in the
15 35 records system shall be entered within forty=eight hours after
16 1 receipt insofar as is practical.
16 2 c. The records system shall constitute the permanent
16 3 record of ownership of each vehicle titled under the laws of
16 4 this state.
16 5 Sec. 26. Section 321.40, unnumbered paragraph 3, Code
16 6 Supplement 2005, is amended to read as follows:
16 7 On or before the fifteenth day of the eleventh month of a
16 8 vehicle's registration year, the department shall create an
16 9 electronic file and the county treasurer shall send a
16 10 statement of fees due to the appropriate owner of record.
16 11 After the department has generated the electronic file used to
16 12 produce statements for a registration month, and before the
16 13 fifteenth day of the month following expiration of a vehicle's
16 14 registration year, the department shall create a subsequent
16 15 electronic file and the county treasurer shall send a
16 16 statement of fees due to the appropriate owner of record for
16 17 any vehicle subsequently registered for that registration
16 18 month. If the vehicle is a flexible fuel vehicle, as
16 19 identified in section 321.31, the statement of fees shall
16 20 include a conspicuous notice identifying the vehicle as a
16 21 flexible fuel vehicle. The statement shall be mailed or
16 22 electronically transmitted to the most current address of
16 23 record, showing information sufficient to identify the vehicle
16 24 and a listing of the various fees as appropriate. Failure to
16 25 receive a statement shall have no effect upon the accrual of
16 26 penalty at the appropriate date.
16 27 DIVISION IV
16 28 RENEWABLE FUEL TAX CREDITS FOR RETAIL DEALERS
16 29 Sec. 27. Section 422.11C, subsection 1, paragraphs a
16 30 through g, Code 2005, are amended by striking the paragraphs
16 31 and inserting in lieu thereof the following:
16 32 a. "E=85 gasoline", "ethanol blended gasoline",
16 33 "gasoline", "retail dealer", and "service station" mean the
16 34 same as defined in section 214A.1.
16 35 b. "Motor fuel pump" means the same as motor vehicle fuel
17 1 pump as defined in section 214.1.
17 2 c. "Sell" means to sell on a retail basis.
17 3 d. "Tax credit" means the designated ethanol blended
17 4 gasoline tax credit as provided in this section.
17 5 Sec. 28. Section 422.11C, subsection 2, paragraph b, Code
17 6 2005, is amended to read as follows:
17 7 b. The taxpayer operates at least one service station at
17 8 which more than sixty percent of the total gallons of gasoline
17 9 sold and dispensed through one or more metered motor fuel
17 10 pumps by the taxpayer in the tax year is ethanol blended
17 11 gasoline.
17 12 Sec. 29. Section 422.11C, subsection 3, Code 2005, is
17 13 amended to read as follows:
17 14 3. The tax credit shall be calculated separately for each
17 15 service station site operated by the taxpayer. The amount of
17 16 the tax credit for each eligible service station is two and
17 17 one=half cents multiplied by the total number of gallons of
17 18 ethanol blended gasoline sold and dispensed through all
17 19 metered motor fuel pumps located at that service station
17 20 during the tax year in excess of sixty percent of all gasoline
17 21 sold and dispensed through metered motor fuel pumps at that
17 22 service station during the tax year.
17 23 3A. A taxpayer is not eligible to claim a designated
17 24 ethanol blended gasoline tax credit as provided in this
17 25 section, if the taxpayer claims an E=85 gasoline tax credit as
17 26 provided in section 422.11M or 422.33 for the same gallons of
17 27 ethanol blended gasoline in the same tax year.
17 28 Sec. 30. NEW SECTION. 422.11M E=85 GASOLINE TAX CREDIT.
17 29 1. As used in this section, unless the context otherwise
17 30 requires:
17 31 a. "E=85 gasoline", "ethanol", "gasoline", "motor fuel
17 32 pump", "retail dealer", and "service station" mean the same as
17 33 defined in section 214A.1.
17 34 b. "Sell" means to sell on a retail basis.
17 35 c. "Tax credit" means the E=85 gasoline tax credit as
18 1 provided in this section.
18 2 2. The taxes imposed under this division, less the credits
18 3 allowed under sections 422.12 and 422.12B, shall be reduced by
18 4 an E=85 gasoline tax credit for each tax year that the
18 5 taxpayer is eligible to claim under this subsection. In order
18 6 to be eligible, all of the following must apply:
18 7 a. The taxpayer is a retail dealer who owns or operates at
18 8 least one service station at which E=85 gasoline is sold and
18 9 dispensed through a motor fuel pump in the tax year in which
18 10 the tax credit is claimed.
18 11 b. The taxpayer complies with requirements of the
18 12 department to administer this section.
18 13 3. The amount of the tax credit for a retail dealer is
18 14 calculated by multiplying ten cents by the total number of
18 15 gallons of E=85 gasoline sold and dispensed through all
18 16 metered pumps located at all service stations operated by the
18 17 retailer dealer during the tax year.
18 18 4. A taxpayer is not eligible to claim an E=85 gasoline
18 19 tax credit as provided in this section, if the taxpayer claims
18 20 a designated ethanol blended gasoline tax credit as provided
18 21 in section 422.11C for the same gallons of E=85 gasoline.
18 22 5. Any credit in excess of the taxpayer's tax liability
18 23 shall be refunded. In lieu of claiming a refund, the taxpayer
18 24 may elect to have the overpayment shown on the taxpayer's
18 25 final, completed return credited to the tax liability for the
18 26 following tax year.
18 27 6. An individual may claim the tax credit allowed a
18 28 partnership, limited liability company, S corporation, estate,
18 29 or trust electing to have the income taxed directly to the
18 30 individual. The amount claimed by the individual shall be
18 31 based upon the pro rata share of the individual's earnings of
18 32 a partnership, limited liability company, S corporation,
18 33 estate, or trust.
18 34 Sec. 31. NEW SECTION. 422.11N BIODIESEL BLENDED FUEL TAX
18 35 CREDIT.
19 1 1. As used in this section, unless the context otherwise
19 2 requires:
19 3 a. "Biodiesel blended fuel", "diesel fuel", "and retail
19 4 dealer" mean the same as defined in section 214A.1.
19 5 b. "Motor fuel pump" means the same as defined in section
19 6 214.1.
19 7 c. "Sell" means to sell on a retail basis.
19 8 d. "Tax credit" means a biodiesel blended fuel tax credit
19 9 as provided in this section.
19 10 2. The taxes imposed under this division, less the credits
19 11 allowed under sections 422.12 and 422.12B, shall be reduced by
19 12 the amount of the biodiesel blended fuel tax credit for each
19 13 tax year that the taxpayer is eligible to claim under this
19 14 subsection.
19 15 a. In order to be eligible, all of the following must
19 16 apply:
19 17 (1) The taxpayer is a retail dealer who sells and
19 18 dispenses biodiesel blended fuel through a motor fuel pump in
19 19 the tax year in which the tax credit is claimed.
19 20 (2) The taxpayer complies with requirements of the
19 21 department established to administer this section.
19 22 b. The tax credit shall apply to biodiesel blended fuel
19 23 formulated with a minimum percentage of one percent by volume
19 24 of biodiesel, if the formulation meets the standards provided
19 25 in section 214A.2. The amount of the tax credit is calculated
19 26 by multiplying a designated rate by the total number of
19 27 gallons of each grade of biodiesel blended fuel that the
19 28 retail dealer sells and dispenses through all of the dealer's
19 29 motor fuel pumps during that tax year. The designated rate
19 30 shall be calculated as follows:
19 31 (1) For each gallon of biodiesel blended fuel containing
19 32 one percent or more but less than two percent of biodiesel,
19 33 one cent per gallon.
19 34 (2) For each gallon of biodiesel blended fuel containing
19 35 two percent or more but less than five percent of biodiesel,
20 1 two cents per gallon.
20 2 (3) For each gallon of biodiesel blended fuel containing
20 3 five percent or more of biodiesel, five cents per gallon.
20 4 3. Any credit in excess of the taxpayer's tax liability
20 5 shall be refunded. In lieu of claiming a refund, the taxpayer
20 6 may elect to have the overpayment shown on the taxpayer's
20 7 final, completed return credited to the tax liability for the
20 8 following tax year.
20 9 4. An individual may claim the tax credit allowed a
20 10 partnership, limited liability company, S corporation, estate,
20 11 or trust electing to have the income taxed directly to the
20 12 individual. The amount claimed by the individual shall be
20 13 based upon the pro rata share of the individual's earnings of
20 14 the partnership, limited liability company, S corporation,
20 15 estate, or trust.
20 16 Sec. 32. NEW SECTION. 422.11O E=85 GASOLINE
20 17 INFRASTRUCTURE INVESTMENT TAX CREDIT.
20 18 1. As used in this section, unless the context otherwise
20 19 requires:
20 20 a. "E=85 gasoline", "motor fuel", "motor fuel pump",
20 21 "retail dealer", and "service station" mean the same as
20 22 defined in section 214A.1.
20 23 b. "Motor fuel storage and dispensing infrastructure" or
20 24 "infrastructure" means a tank and motor fuel pump necessary to
20 25 keep and dispense motor fuel at a service station, including
20 26 but not limited to all associated equipment, motor fuel pumps
20 27 or dispensers, other pumps, hoses, tubes, lines, fittings,
20 28 valves, filters, seals, and covers.
20 29 c. "Tax credit" means the E=85 gasoline infrastructure
20 30 investment tax credit as provided in this section.
20 31 2. The taxes imposed under this division, less the credits
20 32 allowed under sections 422.12 and 422.12B shall be reduced by
20 33 an E=85 gasoline infrastructure investment tax credit. A
20 34 retail dealer is eligible to receive the tax credit which is
20 35 equal to twenty percent of the costs incurred by the retail
21 1 dealer in installing, converting, or replacing motor fuel
21 2 storage and dispensing infrastructure necessary to store and
21 3 dispense E=85 gasoline on the premises of the service station.
21 4 3. In order to be eligible to claim the tax credit, all of
21 5 the following must apply:
21 6 a. The taxpayer is a retail dealer.
21 7 b. The taxpayer operates at least one service station.
21 8 c. The taxpayer complies with requirements of the
21 9 department to administer this section.
21 10 d. The costs eligible for the tax credit are limited to
21 11 those costs meeting all of the following requirements:
21 12 (1) The costs were incurred after June 30, 2006.
21 13 (2) The infrastructure used to store and dispense E=85
21 14 gasoline was used to store and dispense only E=85 gasoline.
21 15 4. Any credit in excess of the tax liability shall be
21 16 refunded with interest computed under section 422.25. In lieu
21 17 of claiming a refund, a taxpayer may elect to have the
21 18 overpayment shown on the taxpayer's final, completed return
21 19 credited to the tax liability for the following tax year.
21 20 5. An individual may claim the tax credit allowed a
21 21 partnership, limited liability company, S corporation, estate,
21 22 or trust electing to have the income taxed directly to the
21 23 individual. The amount claimed by the individual shall be
21 24 based upon the pro rata share of the individual's earnings of
21 25 the partnership, limited liability company, S corporation,
21 26 estate, or trust.
21 27 Sec. 33. Section 422.33, subsection 11, paragraph a,
21 28 subparagraph (1), Code Supplement 2005, is amended to read as
21 29 follows:
21 30 (1) "Ethanol "E=85 gasoline", "ethanol blended gasoline",
21 31 "gasoline", "metered pump", "motor fuel pump", "retail
21 32 dealer", "sell", and "service station" mean the same as
21 33 defined in section 422.11C.
21 34 Sec. 34. Section 422.33, subsection 11, paragraph b,
21 35 subparagraph (2), Code Supplement 2005, is amended to read as
22 1 follows:
22 2 (2) The taxpayer operates at least one service station at
22 3 which more than sixty percent of the total gallons of gasoline
22 4 sold and dispensed through one or more metered motor fuel
22 5 pumps by the taxpayer is ethanol blended gasoline.
22 6 Sec. 35. Section 422.33, subsection 11, paragraph c, Code
22 7 Supplement 2005, is amended to read as follows:
22 8 c. (1) The tax credit shall be calculated separately for
22 9 each service station site operated by the taxpayer.
22 10 (2) The amount of the tax credit for each eligible service
22 11 station is two and one=half cents multiplied by the total
22 12 number of gallons of ethanol blended gasoline sold and
22 13 dispensed through all metered motor fuel pumps located at that
22 14 service station during the tax year in excess of sixty percent
22 15 of all gasoline sold and dispensed through metered motor fuel
22 16 pumps at that service station during the tax year.
22 17 (3) The tax credit is not allowed for E=85 gasoline if the
22 18 taxpayer claims an E=85 gasoline tax credit as provided in
22 19 this subsection for the same gallons of ethanol blended
22 20 gasoline in the same tax year that the taxpayer may claim an
22 21 ethanol blended gasoline tax credit as provided in this
22 22 section.
22 23 Sec. 36. Section 422.33, Code Supplement 2005, is amended
22 24 by adding the following new subsections:
22 25 NEW SUBSECTION. 11A. The taxes imposed under this
22 26 division shall be reduced by an E=85 gasoline tax credit for
22 27 each tax year that the taxpayer is eligible to claim the tax
22 28 credit under this subsection.
22 29 a. The taxpayer may claim the E=85 gasoline tax credit
22 30 according to the same requirements, for the same amount, and
22 31 calculated in the same manner, as provided for the E=85
22 32 gasoline tax credit pursuant to section 422.11M.
22 33 b. Any E=85 gasoline tax credit which is in excess of the
22 34 taxpayer's tax liability shall be refunded or may be shown on
22 35 the taxpayer's final, completed return credited to the tax
23 1 liability for the following tax year in the same manner as
23 2 provided in section 422.11M.
23 3 NEW SUBSECTION. 11B. The taxes imposed under this
23 4 division shall be reduced by a biodiesel blended fuel tax
23 5 credit for each tax year that the taxpayer is eligible to
23 6 claim the tax credit under this subsection.
23 7 a. The taxpayer may claim the biodiesel blended fuel tax
23 8 credit according to the same requirements, for the same
23 9 amount, and calculated in the same manner, as provided for the
23 10 biodiesel blended fuel tax credit pursuant to section 422.11N.
23 11 b. Any biodiesel blended fuel tax credit which is in
23 12 excess of the taxpayer's tax liability shall be refunded or
23 13 may be shown on the taxpayer's final, completed return
23 14 credited to the tax liability for the following tax year in
23 15 the same manner as provided in section 422.11N.
23 16 NEW SUBSECTION. 11C. The taxes imposed under this
23 17 division shall be reduced by an E=85 gasoline infrastructure
23 18 investment tax credit for each tax year that the taxpayer is
23 19 eligible to claim the tax credit under this subsection.
23 20 a. The taxpayer shall claim the tax credit in the same
23 21 manner as provided in section 422.11O. The taxpayer may claim
23 22 the tax credit according to the same requirements, for the
23 23 same amount, and calculated in the same manner, as provided
23 24 for the E=85 gasoline promotion tax credit pursuant to section
23 25 422.11O.
23 26 b. Any E=85 gasoline infrastructure investment tax credit
23 27 which is in excess of the taxpayer's tax liability shall be
23 28 refunded or may be shown on the taxpayer's final, completed
23 29 return credited to the tax liability for the following tax
23 30 year in the same manner as provided in section 422.11O.
23 31 Sec. 37. RETROACTIVE APPLICABILITY DATE. Sections
23 32 422.11M, 422.11N, and 422.11O, as enacted in this Act, and
23 33 section 422.33, subsections 11A, 11B and 11C, as enacted in
23 34 this Act, apply retroactively to tax years beginning on or
23 35 after January 1, 2006.
24 1 DIVISION V
24 2 ECONOMIC DEVELOPMENT
24 3 CLEAN ENERGY ASSISTANCE
24 4 Sec. 38. NEW SECTION. 15E.400 CLEAN ENERGY ASSISTANCE.
24 5 1. The Iowa economic development board shall establish a
24 6 clean energy assistance program to encourage the
24 7 establishment, modernization, and expansion of facilities
24 8 producing renewable energy or energy=efficient products or
24 9 technology in this state. The board may award financial
24 10 assistance to eligible persons in the form of a loan, loan
24 11 guarantee, grant, or combination of financial assistance.
24 12 2. A person is eligible to apply for assistance under this
24 13 section if the person satisfies all of the following
24 14 requirements:
24 15 a. The existing or proposed facility for producing
24 16 renewable energy or energy=efficient products or technology is
24 17 located in this state.
24 18 b. The person applies to the department in a manner and
24 19 according to procedures required by the board.
24 20 c. The person submits a business plan which demonstrates
24 21 managerial and technical expertise.
24 22 3. The board shall select an applicant to receive
24 23 financial assistance based on the following criteria:
24 24 a. The probability of actual or potential improvements to
24 25 the environment including but not limited to reductions in
24 26 emissions of greenhouse gases from the use of the product or
24 27 technology by the facility owner or the customers of the
24 28 facility owner.
24 29 b. The number and quality of jobs created or retained that
24 30 provide living wages at or above the state average and eighty
24 31 percent of the costs of comprehensive health insurance.
24 32 c. The use of natural resources from this state other than
24 33 coal.
24 34 d. The use of research or technology developed in this
24 35 state by a college, university, business, or governmental
25 1 agency in this state.
25 2 e. The potential research value or potential for further
25 3 technological development to fund the business in the future.
25 4 f. The feasibility of the existing or proposed facility to
25 5 remain a viable enterprise and the degree to which the
25 6 facility will increase the utilization of renewable energy or
25 7 energy=efficient products or technology.
25 8 4. The board may consult with the department of natural
25 9 resources, the department of agriculture and land stewardship,
25 10 the university of Iowa, Iowa state university, and the
25 11 university of northern Iowa when selecting applicants for
25 12 financial assistance pursuant to this section.
25 13 5. Of the moneys in the clean energy financial assistance
25 14 fund created in section 15E.401, the board may expend up to
25 15 two million five hundred thousand dollars for purposes of
25 16 providing financial assistance for the development of an
25 17 advanced biorefinery designed to integrate biomass conversion
25 18 processes and equipment to produce fuels, power, and
25 19 chemicals.
25 20 Sec. 39. NEW SECTION. 15E.401 CLEAN ENERGY FINANCIAL
25 21 ASSISTANCE FUND.
25 22 1. A clean energy financial assistance fund is created
25 23 within the state treasury under the control of the Iowa
25 24 economic development board. The fund shall consist of moneys
25 25 appropriated from the general fund pursuant to 15E.402, and
25 26 any other moneys available to and obtained or accepted by the
25 27 board from the federal government or private sources for
25 28 placement in the fund. The assets of the fund shall be used
25 29 by the board only for administration and carrying out the
25 30 purposes of section 15E.400.
25 31 2. In administering the fund and the clean energy
25 32 financial assistance program, the board may do any of the
25 33 following:
25 34 a. Contract, sue and be sued, and adopt administrative
25 35 rules necessary to carry out the provisions of this section
26 1 and section 15E.400. However, the board shall not in any
26 2 manner directly or indirectly pledge the credit of the state.
26 3 b. Authorize payment from the fund for costs, commissions,
26 4 attorney fees, and other reasonable expenses, including
26 5 expenses related to carrying out duties necessary for issuing
26 6 or guaranteeing loans under section 15E.400, and for the
26 7 recovery of loan moneys issued or guaranteed or the management
26 8 of property acquired in connection with such loans.
26 9 3. Payments of interest, recaptures of awards, or
26 10 repayments of moneys loaned under the clean energy financial
26 11 assistance program shall be deposited into the fund. Section
26 12 8.33 does not apply to any moneys in the fund.
26 13 Sec. 40. NEW SECTION. 15E.402 APPROPRIATION.
26 14 There is appropriated from the rebuild Iowa infrastructure
26 15 fund created in section 8.57, for each fiscal year of the
26 16 fiscal period beginning July 1, 2006, and ending June 30,
26 17 2014, to the clean energy financial assistance fund created in
26 18 section 15E.401, five million dollars.
26 19 This section is repealed June 30, 2014.
26 20 DIVISION VI
26 21 UNIVERSITY=BASED RESEARCH AND DEVELOPMENT
26 22 IOWA CENTER FOR ADVANCED RENEWABLE ENERGY
26 23 Sec. 41. NEW SECTION. 266.39G APPROPRIATION.
26 24 1. There is appropriated from the rebuild Iowa
26 25 infrastructure fund created in section 8.57 for each fiscal
26 26 year of the fiscal period beginning July 1, 2006, and ending
26 27 June 30, 2014, to the Iowa center for advanced renewable
26 28 energy fund created in section 266.39H, five million dollars.
26 29 2. This section is repealed July 1, 2014.
26 30 Sec. 42. NEW SECTION. 266.39H IOWA CENTER FOR ADVANCED
26 31 RENEWABLE ENERGY FUND.
26 32 1. An Iowa center for advanced renewable energy fund is
26 33 created in the state treasury under the control of the Iowa
26 34 center for advanced renewable energy. The fund is separate
26 35 from the general fund of the state.
27 1 2. Moneys in the Iowa center for advanced renewable energy
27 2 fund are appropriated to the Iowa center for advanced
27 3 renewable energy established in section 266.39I exclusively to
27 4 support the advanced renewable energy financial assistance
27 5 program as provided in that section.
27 6 Moneys in the fund shall not be transferred, used,
27 7 obligated, appropriated, or otherwise encumbered except as
27 8 necessary to administer the program.
27 9 3. a. The recaptures of moneys awarded pursuant to the
27 10 program shall be deposited in the Iowa center for advanced
27 11 renewable energy fund.
27 12 b. Notwithstanding section 8.33, any unexpended balance in
27 13 the fund at the end of the fiscal year shall be retained in
27 14 the fund.
27 15 c. Notwithstanding section 12C.7, subsection 2, interest,
27 16 earnings on investments, or time deposits of the moneys in the
27 17 fund shall be credited to the fund.
27 18 Sec. 43. NEW SECTION. 266.39I ADVANCED RENEWABLE ENERGY
27 19 TECHNOLOGY RESEARCH AND DEVELOPMENT.
27 20 1. The Iowa center for advanced renewable energy is
27 21 established at Iowa state university of science and technology
27 22 to improve the economic and environmental performance and
27 23 feasibility of renewable energy products and production in
27 24 Iowa. The center shall conduct and sponsor research for and
27 25 assist in the commercialization of renewable fuels, methane
27 26 recapture, and other renewable energy conversion systems that
27 27 may reduce the dependence of Iowans on petroleum, create jobs
27 28 and economic growth in Iowa, and reduce the emissions of
27 29 greenhouse gases.
27 30 2. An advanced renewable energy financial assistance
27 31 program is established under the direction of the Iowa center
27 32 for advanced renewable energy. The center shall provide for
27 33 competitive research grants to Iowa organizations, businesses,
27 34 colleges, and universities in the state for purposes of
27 35 encouraging the commercialization of cellulose=based fuels,
28 1 biodiesel, and other renewable energy conversion systems and
28 2 processes that may reduce the dependence of Iowans on
28 3 petroleum, create jobs and economic growth in Iowa, and reduce
28 4 the emissions of greenhouse gases.
28 5 DIVISION VII
28 6 COORDINATING PROVISIONS == GOVERNMENT VEHICLES
28 7 Sec. 44. Section 8A.362, subsection 3, Code 2005, is
28 8 amended to read as follows:
28 9 3. a. The director shall provide for a record system for
28 10 the keeping of records of the total number of miles state=
28 11 owned motor vehicles are driven and the per=mile cost of
28 12 operation of each motor vehicle. Every state officer or
28 13 employee shall keep a record book to be furnished by the
28 14 director in which the officer or employee shall enter all
28 15 purchases of gasoline, lubricating oil, grease, and other
28 16 incidental expense in the operation of the motor vehicle
28 17 assigned to the officer or employee, giving the quantity and
28 18 price of each purchase, including the cost and nature of all
28 19 repairs on the motor vehicle. Each operator of a state=owned
28 20 motor vehicle shall promptly prepare a report at the end of
28 21 each month on forms furnished by the director and forwarded to
28 22 the director, giving the information the director may request
28 23 in the report. Each month the director shall compile the
28 24 costs and mileage of state=owned motor vehicles from the
28 25 reports and keep a cost history for each motor vehicle and the
28 26 costs shall be reduced to a cost=per=mile basis for each motor
28 27 vehicle. The director shall call to the attention of an
28 28 elected official or the head of any state agency to which a
28 29 motor vehicle has been assigned any evidence of the
28 30 mishandling or misuse of a state=owned motor vehicle which is
28 31 called to the director's attention.
28 32 b. A motor vehicle operated under this subsection shall
28 33 not operate on gasoline other than ethanol blended gasoline
28 34 blended with at least ten percent ethanol as defined in
28 35 section 214A.1, unless under emergency circumstances. A
29 1 state=issued credit card used to purchase gasoline shall not
29 2 be valid to purchase gasoline other than ethanol blended
29 3 gasoline blended with at least ten percent ethanol, if
29 4 commercially available. The motor vehicle shall also be
29 5 affixed with a brightly visible sticker which notifies the
29 6 traveling public that the motor vehicle is being operated on
29 7 ethanol blended gasoline blended with ethanol. However, the
29 8 sticker is not required to be affixed to an unmarked vehicle
29 9 used for purposes of providing law enforcement or security.
29 10 Sec. 45. Section 8A.362, subsection 5, paragraph a,
29 11 subparagraphs (1) and (2), Code 2005, are amended to read as
29 12 follows:
29 13 (1) A fuel blended with not more than fifteen percent E=85
29 14 gasoline and at least eighty=five percent ethanol as defined
29 15 in section 214A.1.
29 16 (2) A B=20 biodiesel blended fuel which is a mixture of
29 17 diesel fuel and processed soybean oil as defined in section
29 18 214A.1. At least twenty percent of the mixed fuel by volume
29 19 must be processed soybean oil.
29 20 Sec. 46. Section 216B.3, subsection 16, paragraph a, Code
29 21 2005, is amended to read as follows:
29 22 a. A motor vehicle purchased by the commission shall not
29 23 operate on gasoline other than ethanol blended gasoline
29 24 blended with at least ten percent ethanol. A state issued
29 25 credit card used to purchase gasoline shall not be valid to
29 26 purchase gasoline other than ethanol blended gasoline blended
29 27 with at least ten percent ethanol. The motor vehicle shall
29 28 also be affixed with a brightly visible sticker which notifies
29 29 the traveling public that the motor vehicle is being operated
29 30 on ethanol blended gasoline blended with ethanol. However,
29 31 the sticker is not required to be affixed to an unmarked
29 32 vehicle used for purposes of providing law enforcement or
29 33 security.
29 34 Sec. 47. Section 216B.3, subsection 16, paragraph b,
29 35 subparagraph (1), subparagraph subdivisions (a) and (b), Code
30 1 2005, are amended to read as follows:
30 2 (a) A fuel blended with not more than fifteen percent E=85
30 3 gasoline and at least eighty=five percent ethanol as defined
30 4 in section 214A.1.
30 5 (b) A B=20 biodiesel blended fuel which is a mixture of
30 6 diesel fuel and processed soybean oil as defined in section
30 7 214A.1. At least twenty percent of the mixed fuel by volume
30 8 must be processed soybean oil.
30 9 Sec. 48. Section 260C.19A, subsection 1, Code 2005, is
30 10 amended to read as follows:
30 11 1. A motor vehicle purchased by or used under the
30 12 direction of the board of directors to provide services to a
30 13 merged area shall not operate on gasoline other than ethanol
30 14 blended gasoline blended with at least ten percent ethanol as
30 15 defined in section 214A.1. The motor vehicle shall also be
30 16 affixed with a brightly visible sticker which notifies the
30 17 traveling public that the motor vehicle is being operated on
30 18 ethanol blended gasoline blended with ethanol. However, the
30 19 sticker is not required to be affixed to an unmarked vehicle
30 20 used for purposes of providing law enforcement or security.
30 21 Sec. 49. Section 260C.19A, subsection 2, paragraph a,
30 22 subparagraphs (1) and (2), Code 2005, are amended to read as
30 23 follows:
30 24 (1) A fuel blended with not more than fifteen percent E=85
30 25 gasoline and at least eighty=five percent ethanol as defined
30 26 in section 214A.1.
30 27 (2) A B=20 biodiesel blended fuel which is a mixture of
30 28 diesel fuel and processed soybean oil as defined in section
30 29 214A.1. At least twenty percent of the mixed fuel by volume
30 30 must be processed soybean oil.
30 31 Sec. 50. Section 262.25A, subsection 2, Code 2005, is
30 32 amended to read as follows:
30 33 2. A motor vehicle purchased by the institutions shall not
30 34 operate on gasoline other than gasoline blended with at least
30 35 ten percent ethanol. A state=issued credit card used to
31 1 purchase gasoline shall not be valid to purchase gasoline
31 2 other than ethanol blended gasoline blended with at least ten
31 3 percent ethanol as defined in section 214A.1. The motor
31 4 vehicle shall also be affixed with a brightly visible sticker
31 5 which notifies the traveling public that the motor vehicle is
31 6 being operated on ethanol blended gasoline blended with
31 7 ethanol. However, the sticker is not required to be affixed
31 8 to an unmarked vehicle used for purposes of providing law
31 9 enforcement or security.
31 10 Sec. 51. Section 262.25A, subsection 3, paragraph a,
31 11 subparagraphs (1) and (2), Code 2005, are amended to read as
31 12 follows:
31 13 (1) A fuel blended with not more than fifteen percent E=85
31 14 gasoline and at least eighty=five percent ethanol as defined
31 15 in section 214A.1.
31 16 (2) A B=20 biodiesel blended fuel which is a mixture of
31 17 processed soybean oil and diesel fuel as defined in section
31 18 214A.1. At least twenty percent of the fuel by volume must be
31 19 processed soybean oil.
31 20 Sec. 52. Section 279.34, Code 2005, is amended to read as
31 21 follows:
31 22 279.34 MOTOR VEHICLES REQUIRED TO OPERATE ON ETHANOL=
31 23 BLENDED ETHANOL BLENDED GASOLINE.
31 24 A motor vehicle purchased by or used under the direction of
31 25 the board of directors to provide services to a school
31 26 corporation shall not, on or after January 1, 1993, operate on
31 27 gasoline other than ethanol blended gasoline blended with at
31 28 least ten percent ethanol. The motor vehicle shall also be
31 29 affixed with a brightly visible sticker which notifies the
31 30 traveling public that the motor vehicle is being operated on
31 31 ethanol blended gasoline blended with ethanol. However, the
31 32 sticker is not required to be affixed to an unmarked vehicle
31 33 used for purposes of providing law enforcement or security.
31 34 Sec. 53. Section 307.21, subsection 4, paragraph d, Code
31 35 2005, is amended to read as follows:
32 1 d. A motor vehicle purchased by the administrator shall
32 2 not operate on gasoline other than ethanol blended gasoline
32 3 blended with at least ten percent ethanol as defined in
32 4 section 214A.1. A state=issued credit card used to purchase
32 5 gasoline shall not be valid to purchase gasoline other than
32 6 ethanol blended gasoline blended with at least ten percent
32 7 ethanol. The motor vehicle shall also be affixed with a
32 8 brightly visible sticker which notifies the traveling public
32 9 that the motor vehicle is being operated on ethanol blended
32 10 gasoline blended with ethanol. However, the sticker is not
32 11 required to be affixed to an unmarked vehicle used for
32 12 purposes of providing law enforcement or security.
32 13 Sec. 54. Section 307.21, subsection 5, paragraph a,
32 14 subparagraphs (1) and (2), Code 2005, are amended to read as
32 15 follows:
32 16 (1) A fuel blended with not more than fifteen percent E=85
32 17 gasoline and at least eighty=five percent ethanol as defined
32 18 in section 214A.1.
32 19 (2) A B=20 biodiesel blended fuel which is a mixture of
32 20 processed soybean oil and diesel fuel as defined in section
32 21 214A.1. At least twenty percent of the fuel by volume must be
32 22 processed soybean oil.
32 23 Sec. 55. Section 331.908, Code 2005, is amended to read as
32 24 follows:
32 25 331.908 MOTOR VEHICLES REQUIRED TO OPERATE ON ETHANOL=
32 26 BLENDED ETHANOL BLENDED GASOLINE.
32 27 A motor vehicle purchased or used by a county to provide
32 28 county services shall not, on or after January 1, 1993,
32 29 operate on gasoline other than ethanol blended gasoline
32 30 blended with at least ten percent ethanol as defined in
32 31 section 214A.1. The motor vehicle shall also be affixed with
32 32 a brightly visible sticker which notifies the traveling public
32 33 that the motor vehicle is being operated on ethanol blended
32 34 gasoline blended with ethanol. However, the sticker is not
32 35 required to be affixed to an unmarked vehicle used for
33 1 purposes of providing law enforcement or security.
33 2 Sec. 56. Section 364.20, Code 2005, is amended to read as
33 3 follows:
33 4 364.20 MOTOR VEHICLES REQUIRED TO OPERATE ON ETHANOL=
33 5 BLENDED ETHANOL BLENDED GASOLINE.
33 6 A motor vehicle purchased or used by a city to provide city
33 7 services shall not, on or after January 1, 1993, operate on
33 8 gasoline other than ethanol blended gasoline blended with at
33 9 least ten percent ethanol as defined in section 214A.1. The
33 10 motor vehicle shall also be affixed with a brightly visible
33 11 sticker which notifies the traveling public that the motor
33 12 vehicle is being operated on ethanol blended gasoline blended
33 13 with ethanol. However, the sticker is not required to be
33 14 affixed to an unmarked vehicle used for purposes of providing
33 15 law enforcement or security.
33 16 Sec. 57. Section 904.312A, subsection 1, Code 2005, is
33 17 amended to read as follows:
33 18 1. A motor vehicle purchased by the department shall not
33 19 operate on gasoline other than ethanol blended gasoline
33 20 blended with at least ten percent ethanol as defined in
33 21 section 214A.1. A state=issued credit card used to purchase
33 22 gasoline shall not be valid to purchase gasoline other than
33 23 ethanol blended gasoline blended with at least ten percent
33 24 ethanol. The motor vehicle shall also be affixed with a
33 25 brightly visible sticker which notifies the traveling public
33 26 that the motor vehicle is being operated on ethanol blended
33 27 gasoline blended with ethanol. However, the sticker is not
33 28 required to be affixed to an unmarked vehicle used for
33 29 purposes of providing law enforcement or security.
33 30 Sec. 58. Section 904.312A, subsection 2, paragraph a,
33 31 subparagraphs (1) and (2), Code 2005, are amended to read as
33 32 follows:
33 33 (1) A fuel blended with not more than fifteen percent E=85
33 34 gasoline and at least eighty=five percent ethanol as defined
33 35 in section 214A.1.
34 1 (2) A B=20 biodiesel blended fuel which is a mixture of
34 2 diesel fuel and processed soybean oil as defined in section
34 3 214A.1. At least twenty percent of the mixed fuel by volume
34 4 must be processed soybean oil.
34 5 DIVISION VIII
34 6 COORDINATING PROVISIONS == MISCELLANEOUS
34 7 Sec. 59. Section 15.401, Code Supplement 2005, is amended
34 8 to read as follows:
34 9 15.401 E=85 BLENDED GASOLINE RENEWABLE FUELS.
34 10 1. As used in this section, unless the context otherwise
34 11 requires, "biodiesel", "biodiesel blended fuel", "E=85
34 12 gasoline" and "service station" mean the same as defined in
34 13 section 214A.1.
34 14 2. The department shall provide a cost=share program for
34 15 financial incentives for the installation or conversion of
34 16 infrastructure used by service stations to do all of the
34 17 following:
34 18 a. sell Sell and dispense E=85 blended gasoline and for
34 19 the installation or conversion of.
34 20 b. Install or convert infrastructure required to establish
34 21 on=site and off=site terminal facilities that store biodiesel
34 22 or biodiesel blended fuel for distribution to service
34 23 stations.
34 24 3. The department shall provide for an addition of at
34 25 least thirty new or converted E=85 gasoline retail outlets and
34 26 four new or converted on=site or off=site terminal facilities
34 27 with a maximum expenditure of three hundred twenty=five
34 28 thousand dollars per year for the fiscal period beginning July
34 29 1, 2005, and ending June 30, 2008. The department may provide
34 30 for the marketing of these products in conjunction with this
34 31 infrastructure program.
34 32 Sec. 60. Section 159A.2, Code 2005, is amended by adding
34 33 the following new subsections:
34 34 NEW SUBSECTION. 0A. "Biodiesel" and "biodiesel blended
34 35 fuel" mean the same as defined in section 214A.1.
35 1 NEW SUBSECTION. 3A. "Department" means the department of
35 2 agriculture and land stewardship.
35 3 NEW SUBSECTION. 3B. "Ethanol blended gasoline" means the
35 4 same as defined in section 214A.1.
35 5 Sec. 61. Section 159A.2, subsection 6, Code 2005, is
35 6 amended by striking the subsection and inserting in lieu
35 7 thereof the following:
35 8 6. "Renewable fuel" means the same as defined in section
35 9 214A.1.
35 10 Sec. 62. Section 159A.2, subsection 8, Code 2005, is
35 11 amended by striking the subsection.
35 12 Sec. 63. Section 159A.3, subsection 3, Code 2005, is
35 13 amended to read as follows:
35 14 3. a. A chief purpose of the office is to further the
35 15 production and consumption of ethanol fuel blended gasoline in
35 16 this state. The office shall be the primary state agency
35 17 charged with the responsibility to promote public consumption
35 18 of ethanol fuel blended gasoline.
35 19 b. The office shall promote the production and consumption
35 20 of soydiesel fuel biodiesel and biodiesel blended fuel in this
35 21 state.
35 22 Sec. 64. Section 214A.19, subsection 1, unnumbered
35 23 paragraph 1, Code 2005, is amended to read as follows:
35 24 The department of natural resources, conditioned upon the
35 25 availability of funds, is authorized to award demonstration
35 26 grants to persons who purchase vehicles which operate on
35 27 alternative fuels, including but not limited to, high blend
35 28 ethanol E=85 gasoline, biodiesel, compressed natural gas,
35 29 electricity, solar energy, or hydrogen. A grant shall be for
35 30 the purpose of conducting research connected with the fuel or
35 31 the vehicle, and not for the purchase of the vehicle itself,
35 32 except that the money may be used for the purchase of the
35 33 vehicle if all of the following conditions are satisfied:
35 34 Sec. 65. Section 307.20, Code 2005, is amended to read as
35 35 follows:
36 1 307.20 BIODIESEL AND BIODIESEL BLENDED FUEL REVOLVING
36 2 FUND.
36 3 1. A biodiesel and biodiesel blended fuel revolving fund
36 4 is created in the state treasury. The biodiesel and biodiesel
36 5 blended fuel revolving fund shall be administered by the
36 6 department and shall consist of moneys received from the sale
36 7 of EPAct credits banked by the department on April 19, 2001,
36 8 moneys appropriated by the general assembly, and any other
36 9 moneys obtained or accepted by the department for deposit in
36 10 the fund. Moneys in the fund are appropriated to and shall be
36 11 used by the department for the purchase of biodiesel and
36 12 biodiesel blended fuel for use in department vehicles. The
36 13 department shall submit an annual report not later than
36 14 January 31 to the members of the general assembly and the
36 15 legislative services agency, of the expenditures made from the
36 16 fund during the preceding fiscal year. Section 8.33 does not
36 17 apply to any moneys in the fund and, notwithstanding section
36 18 12C.7, subsection 2, earnings or interest on moneys deposited
36 19 in the fund shall be credited to the fund.
36 20 2. A department departmental motor vehicle operating on
36 21 using biodiesel or biodiesel blended fuel shall be affixed
36 22 with a brightly visible sticker that notifies the traveling
36 23 public that the motor vehicle uses biodiesel blended fuel.
36 24 3. For purposes of this section the following definitions
36 25 apply:
36 26 a. "Biodiesel "Biodiesel" and "biodiesel blended fuel"
36 27 means soydiesel fuel mean the same as defined in section
36 28 159A.2 214A.1.
36 29 b. "EPAct credit" means a credit issued pursuant to the
36 30 federal Energy Policy Act (EPAct), 42 U.S.C. } 13201 et seq.
36 31 Sec. 66. Section 452A.2, subsection 2, Code Supplement
36 32 2005, is amended by striking the subsection and inserting in
36 33 lieu thereof the following:
36 34 2. "Biodiesel" and "biodiesel blended fuel" mean the same
36 35 as defined in section 214A.1.
37 1 Sec. 67. Section 452A.2, subsection 3, Code Supplement
37 2 2005, is amended to read as follows:
37 3 3. "Blender" means a person who owns and blends alcohol
37 4 ethanol with gasoline to produce ethanol blended gasoline and
37 5 blends the product at a nonterminal location. The blender
37 6 person is not restricted to blending alcohol ethanol with
37 7 gasoline. Products blended with gasoline other than grain
37 8 alcohol ethanol are taxed as gasoline. "Blender" also means a
37 9 person blending two or more special fuel products at a
37 10 nonterminal location where the tax has not been paid on all of
37 11 the products blended. This blend is taxed as a special fuel.
37 12 Sec. 68. Section 452A.2, Code Supplement 2005, is amended
37 13 by adding the following new subsection:
37 14 NEW SUBSECTION. 9A. "E=85 gasoline" means the same as
37 15 defined in section 214A.1.
37 16 Sec. 69. Section 452A.2, subsection 11, Code Supplement
37 17 2005, is amended to read as follows:
37 18 11. "Ethanol blended gasoline" means motor fuel containing
37 19 at least ten percent alcohol distilled from cereal grains the
37 20 same as defined in section 214A.1.
37 21 Sec. 70. Section 452A.2, subsection 19, unnumbered
37 22 paragraph 1, Code Supplement 2005, is amended to read as
37 23 follows:
37 24 "Motor fuel" means both motor fuel as defined in section
37 25 214A.1 and includes all of the following:
37 26 Sec. 71. Section 452A.2, subsection 21, Code Supplement
37 27 2005, is amended to read as follows:
37 28 21. "Nonterminal storage facility" means a facility where
37 29 motor fuel or special fuel, other than liquefied petroleum
37 30 gas, is stored that is not supplied by a pipeline or a marine
37 31 vessel. "Nonterminal storage facility" includes a facility
37 32 that manufactures products such as alcohol ethanol as defined
37 33 in section 214A.1, biofuel, blend stocks, or additives which
37 34 may be used as motor fuel or special fuel, other than
37 35 liquefied petroleum gas, for operating motor vehicles or
38 1 aircraft.
38 2 Sec. 72. Section 452A.3, subsection 1B, Code Supplement
38 3 2005, is amended to read as follows:
38 4 1B. An excise tax of seventeen cents is imposed on each
38 5 gallon of E=85 gasoline, which contains at least eighty=five
38 6 percent denatured alcohol by volume from the first day of
38 7 April until the last day of October or seventy percent
38 8 denatured alcohol from the first day of November until the
38 9 last day of March, used for the privilege of operating motor
38 10 vehicles in this state as defined in section 214A.1, subject
38 11 to the determination provided in subsection 1C.
38 12 Sec. 73. Section 452A.6, Code 2005, is amended to read as
38 13 follows:
38 14 452A.6 ETHANOL BLENDED GASOLINE AND OTHER PRODUCTS ==
38 15 BLENDER'S LICENSE.
38 16 1. a. A person other than a supplier, restrictive
38 17 supplier, or importer licensed under this division, who blends
38 18 gasoline with alcohol distilled from cereal grains so that the
38 19 blend contains at least ten percent alcohol distilled from
38 20 cereal grains ethanol as defined in section 214A.1 in order to
38 21 formulate ethanol blended gasoline, shall obtain a blender's
38 22 license.
38 23 b. A person who blends two or more special fuel products
38 24 or sells one hundred percent biofuel shall obtain a blender's
38 25 license.
38 26 2. The A blender's license shall be obtained by following
38 27 the procedure under section 452A.4 and the blender's license
38 28 is subject to the same restrictions as contained in that
38 29 section.
38 30 3. A blender required to obtain a license pursuant to this
38 31 section shall maintain records as required by section 452A.10
38 32 as to motor fuel, alcohol ethanol, ethanol blended gasoline,
38 33 and special fuels.
38 34 DIVISION IX
38 35 CHANGE OF TERMS
39 1 Sec. 74. CHANGE OF TERMS.
39 2 1. Sections 8A.362, 101.21, 159A.4, 214.1, 214.11, 214A.1,
39 3 214A.2, 214A.4, 214A.5, 214A.7, 214A.8, 214A.9, 214A.10,
39 4 214A.16, 214A.17, 214A.18, 306C.11, 312.1, 321.56, 423.14,
39 5 452A.63, 452A.66, and 452A.78, Code 2005, are amended by
39 6 striking from the provisions the words "motor vehicle fuel"
39 7 and inserting the following: "motor fuel".
39 8 2. Sections 214.1, 214.3, 214.9, 214.11, and 214A.16, Code
39 9 2005, are amended by striking the words "motor vehicle fuel
39 10 pump" or "motor vehicle fuel pumps" and inserting the
39 11 following: "motor fuel pump" or "motor fuel pumps".
39 12 3. Sections 159A.3 and 214A.17, Code 2005, are amended by
39 13 striking from the provisions the words "oxygenate octane
39 14 enhancers" and inserting the following: "oxygenates".
39 15 4. Sections 214A.1, 214A.4, 214A.5, 214A.7, 214A.8, and
39 16 214A.10, Code 2005, are amended by striking from the
39 17 provisions the words "oxygenate octane enhancer" and inserting
39 18 the following: "oxygenate".
39 19 EXPLANATION
39 20 BACKGROUND. The general assembly has enacted a number of
39 21 Acts which have promoted the production and consumption of
39 22 ethanol blended gasoline.
39 23 In 1991, the general assembly enacted S.F. 545 (1991 Iowa
39 24 Acts, ch. 254), which requires that state and local government
39 25 vehicles operate using ethanol blended gasoline and provides
39 26 that a state=issued credit card can only be used to purchase
39 27 ethanol blended gasoline. The provisions state that ethanol
39 28 blended gasoline must contain at least 10 percent ethanol.
39 29 In 1994, the general assembly enacted H.F. 2337 (1994 Iowa
39 30 Acts, chapter 1119), which requires that of all new passenger
39 31 vehicles and light pickup trucks purchased by the department
39 32 of administrative services, other state agencies, and
39 33 community colleges, a minimum of 10 percent of those motor
39 34 vehicles must be equipped with engines which utilize
39 35 alternative fuels (referred to as alternative methods of
40 1 propulsion), including a flexible fuel (E=85 gasoline or
40 2 biodiesel blended gasoline). The alternative fuel
40 3 requirements do not apply to motor vehicles purchased and
40 4 directly used for law enforcement or purchased and used for
40 5 off=road maintenance work or to pull loaded trailers.
40 6 In 2001, the general assembly enacted H.F. 716 (2001 Iowa
40 7 Acts, ch. 123), which created a tax credit for retail dealers
40 8 of gasoline who sell ethanol blended gasoline (containing at
40 9 least 10 percent alcohol). The tax credit applies to both
40 10 taxpayers filing as individuals under Code section 422.11C and
40 11 businesses under Code section 422.33. Specifically, the Act
40 12 provided a tax credit for a retail dealer who operates at
40 13 least one service station at which more than 60 percent of the
40 14 total gallons of gasoline sold by the retail dealer is ethanol
40 15 blended gasoline.
40 16 In 2005, the general assembly enacted H.F. 868 (2005 Iowa
40 17 Acts, ch. 150) imposing a special rate of 17 cents on each
40 18 gallon of E=85 gasoline (a blend containing a minimum of
40 19 between 75 and 85 percent alcohol depending on the season) if
40 20 certain conditions were met. The Act requires the department
40 21 of revenue to compare the amount of moneys actually collected
40 22 using the special 17 cents rate with the amount of moneys that
40 23 would have been collected if the adjusted rate applied. If
40 24 the difference is equal to or greater than $25,000, the tax
40 25 rate beginning the next year is at the adjusted rate.
40 26 DIVISION I == ESTABLISHMENT OF RENEWABLE FUEL STANDARDS.
40 27 This division amends Code chapter 214A, which provides
40 28 authority to the department of agriculture and land
40 29 stewardship to regulate the sale of motor fuel.
40 30 The division amends Code section 214A.1 by providing a
40 31 number of definitions for "biodiesel", "biodiesel blended
40 32 fuel", "ethanol", "ethanol blended gasoline", and "E=85
40 33 gasoline".
40 34 The division amends Code section 214A.2, which provides for
40 35 different types of motor fuel and establishes standards or
41 1 specifications for motor fuel. The division amends the
41 2 section to require that ethanol blended gasoline contain a
41 3 blend of at least 10 percent ethanol (the so called "E=10"
41 4 standard). It designates gasoline with a minimum seasonal
41 5 blend of between 75 and 85 percent or more ethanol as E=85
41 6 blended gasoline based on current law (see Code Supplement
41 7 section 452A.3).
41 8 The division establishes similar standards for biodiesel
41 9 and biodiesel blended fuel. It requires that biodiesel
41 10 blended fuel contain at least 1 percent biodiesel by volume.
41 11 It prohibits any person from falsely advertising motor fuel,
41 12 including renewable fuel, and specifically, ethanol blended
41 13 gasoline and biodiesel blended gasoline. Code section 214A.11
41 14 provides that any person violating the provisions of Code
41 15 chapter 214A is guilty of a simple misdemeanor. A simple
41 16 misdemeanor is punishable by confinement for no more than 30
41 17 days or a fine of at least $50, but not more than $500, or by
41 18 both. The bill increases that offense to a serious
41 19 misdemeanor. A serious misdemeanor is punishable by
41 20 confinement for no more than one year and a fine of at least
41 21 $250 but not more than $1,500.
41 22 The division imposes a number of requirements of businesses
41 23 which own or control service stations operated by retail
41 24 dealers. The requirements are administered and enforced by
41 25 the department of revenue and the department of agriculture
41 26 and land stewardship working in consultation with the
41 27 renewable fuels and coproducts advisory committee.
41 28 The division requires that businesses must sell a certain
41 29 percentage of ethanol within a determination period (beginning
41 30 January 1 and ending December 31). The percentage is referred
41 31 to as a threshold. The division provides a number of
41 32 thresholds which increase periodically according to a
41 33 schedule. The thresholds are delayed for two years for small
41 34 businesses (selling 500,000 gallons or less of gasoline). A
41 35 threshold is based on an assumption that there is a target
42 1 number of state registered flexible fuel vehicles using E=85
42 2 gasoline. The department of revenue may adjust a threshold if
42 3 a target is not met and publish the adjusted threshold in the
42 4 Iowa administrative bulletin.
42 5 If at the end of a determination period, a business has not
42 6 met a threshold, the secretary of agriculture must issue an
42 7 accelerated petroleum replacement order, unless the secretary
42 8 finds a delay or suspension is warranted based on decreased
42 9 ethanol inventories.
42 10 A dealer who is owned or controlled by such business not
42 11 meeting the threshold is not eligible to claim an ethanol
42 12 blended tax credit. In addition, the retail dealer is
42 13 prohibited from selling gasoline other than ethanol blended
42 14 gasoline, with a number of exceptions. The prohibition does
42 15 not apply to gasoline used to operate aircraft, motor vehicles
42 16 involved exclusively in motor sports events, or motor vehicles
42 17 operating using diesel fuel. The requirement also does not
42 18 apply to selling gasoline for use in certain vehicles such as
42 19 antique vehicles, snowmobiles, all=terrain vehicles,
42 20 watercraft, and small motors.
42 21 DIVISION II == MOTOR FUEL FRANCHISE AGREEMENTS == SUPPLIES
42 22 OF E=85 GASOLINE. This division amends provisions affecting
42 23 franchises of motor fuel. A franchise is a contract between
42 24 persons who sell and purchase motor fuel, including refiners,
42 25 distributors, and retailers.
42 26 Code section 323A.2 provides that when there is a hardship
42 27 in a community served by a franchisee, and the franchisor
42 28 cannot honor a request to deliver motor fuel to the
42 29 franchisee, the franchisee may obtain the motor fuel from
42 30 another source. The division provides that when a contract is
42 31 entered into or renewed, it must provide for the delivery of
42 32 volumes of E=85 gasoline at times demanded by the franchisee
42 33 or it must allow the franchisee to purchase those volumes of
42 34 E=85 gasoline at those times from another source. However, if
42 35 the contract does not have an expiration date, and the
43 1 franchisor cannot provide for the delivery of E=85 gasoline,
43 2 the franchisee may immediately obtain the E=85 gasoline from
43 3 another source, without regard to the contract.
43 4 The division provides that if the franchisee obtains the E=
43 5 85 gasoline from another source, the franchisee must provide
43 6 notice to the public of its source. The franchisee must fully
43 7 indemnify the franchisor against any claims for liability
43 8 arising out of the use of the E=85 gasoline which was
43 9 delivered by another source.
43 10 The division provides that a franchisor cannot terminate a
43 11 contract based on a franchisee's purchase of E=85 gasoline in
43 12 accordance with the division's provisions. The division also
43 13 provides that a term of a contract that is inconsistent with
43 14 the division is void.
43 15 The division takes effect upon enactment.
43 16 DIVISION III == NOTICE OF FLEXIBLE FUEL MOTOR VEHICLES AND
43 17 E=85 GASOLINE STATIONS. This division amends provisions in
43 18 Code chapter 321 which in part currently requires the state
43 19 department of transportation to maintain a records system
43 20 which includes information regarding vehicles registered in
43 21 this state. The system is used by counties to notify persons
43 22 that they must pay an annual vehicle registration fee. The
43 23 division requires that the department's system must include
43 24 whether a vehicle is a flexible fuel vehicle with an engine
43 25 capable of operating using E=85 gasoline. The county must
43 26 provide a statement in its renewal notice informing
43 27 registrants that their vehicles are flexible fuel vehicles.
43 28 It also requires that the state department of transportation
43 29 include information on its internet website regarding makes
43 30 and models of flexible fuel vehicles and service stations
43 31 which sell E=85 gasoline.
43 32 DIVISION IV == RENEWABLE FUEL TAX CREDIT FOR RETAIL
43 33 DEALERS. This division amends tax credit provisions in Code
43 34 chapter 422 to provide that a retail dealer who sells E=85
43 35 gasoline is eligible to receive a tax credit. The tax credit
44 1 applies to taxpayers filing as individuals or businesses. The
44 2 amount of the tax credit is 10 cents multiplied by the total
44 3 number of gallons of E=85 gasoline sold and dispensed through
44 4 all motor fuel pumps operated at each of the taxpayer's
44 5 service stations during the tax year.
44 6 The division provides that a retail dealer who sells
44 7 biodiesel blended fuel is also eligible to receive a tax
44 8 credit with similar requirements. In this case, the amount is
44 9 based on the grade of biodiesel blended fuel sold and
44 10 dispensed by the retail dealer and ranges from 1 to 5 cents
44 11 depending upon the percentage of biodiesel contained in the
44 12 biodiesel blended fuel.
44 13 Finally, the division provides for an E=85 gasoline
44 14 infrastructure investment tax credit. The tax credit applies
44 15 to a retail dealer who improves a service station by
44 16 installing, converting, or replacing motor fuel storage and
44 17 dispensing infrastructure as part of a process of providing
44 18 for infrastructure used exclusively to store and dispense E=85
44 19 gasoline at the service station. The tax credit is equal to
44 20 20 percent of the amount of the investment.
44 21 The provisions in the division which provide tax credits to
44 22 retail dealers apply to tax years beginning on or after
44 23 January 1, 2006.
44 24 DIVISION V == ECONOMIC DEVELOPMENT == CLEAN ENERGY
44 25 ASSISTANCE. This division requires the Iowa economic
44 26 development board to establish a clean energy assistance
44 27 program to provide financial assistance for the establishment
44 28 or expansion of renewable energy facilities or energy=
44 29 efficient products or technology in this state.
44 30 The division establishes a clean energy financial
44 31 assistance fund under the control of the board in order to
44 32 support the program. The division appropriates moneys from
44 33 the rebuild Iowa infrastructure fund to the clean energy
44 34 financial assistance fund. The division authorizes the
44 35 economic development board to use moneys in the fund to
45 1 support a biorefinery.
45 2 DIVISION VI == UNIVERSITY=BASED RESEARCH AND DEVELOPMENT ==
45 3 IOWA CENTER FOR ADVANCED RENEWABLE ENERGY. This division
45 4 establishes the Iowa center for advanced renewable energy at
45 5 Iowa state university of science and technology to improve the
45 6 economic and environmental performance in addition to the
45 7 feasibility of renewable energy products and production in
45 8 this state.
45 9 The division establishes an Iowa center for advanced
45 10 renewable energy fund under the control of the center. The
45 11 fund is used to support the center and an advanced renewable
45 12 energy financial assistance program. Under the program, the
45 13 center provides competitive research grants to Iowa
45 14 organizations, businesses, colleges, and universities in the
45 15 state for purposes of encouraging the commercialization of
45 16 cellulose=based fuels, biodiesel, and other renewable energy
45 17 conversion systems. The fund is supported by moneys
45 18 appropriated from the rebuild Iowa infrastructure fund.
45 19 DIVISION VII == COORDINATING PROVISIONS == GOVERNMENT
45 20 VEHICLES. This division amends the provisions that require
45 21 state and local government vehicles to operate using ethanol
45 22 blended gasoline. It also amends similar provisions which
45 23 require state agencies to purchase flexible fuel vehicles.
45 24 The division standardizes the language and refers to common
45 25 definitions as created in the division amending Code section
45 26 214A.1 and related standards created in the division amending
45 27 Code section 214A.2.
45 28 DIVISION VIII == COORDINATING PROVISIONS == MISCELLANEOUS.
45 29 A number of provisions in the Code refer to alcohol or ethanol
45 30 blended gasoline, including E=85 gasoline, and soydiesel or
45 31 biofuel. This division standardizes the language and refers
45 32 to common definitions as created in the division amending Code
45 33 section 214A.1 and related standards created in the division
45 34 amending Code section 214A.2.
45 35 DIVISION IX == CHANGE OF TERMS. This division amends a
46 1 number of provisions by changing the term "oxygenate octane
46 2 enhancer" to "oxygenate", "motor vehicle fuel" to "motor
46 3 fuel", and "motor vehicle fuel pump" to "motor fuel pump" for
46 4 purposes of consistency in chapters throughout the Code, but
46 5 in particular in Code chapters 214A and 452A.
46 6 LSB 5573YH 81
46 7 da:rj/je/5.2