House File 2754 - Introduced
HOUSE FILE
BY COMMITTEE ON WAYS AND MEANS
(SUCCESSOR TO HF 2735)
(SUCCESSOR TO HSB 587)
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 fuel, by providing
2 for renewable fuel including ethanol blended fuel and
3 biodiesel blended fuel, providing incentives for
4 infrastructure used to store and dispense renewable fuel,
5 providing for income tax credits and excise taxes, providing
6 for penalties, and providing effective and applicability
7 dates, including retroactive applicability.
8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
9 TLSB 5701HZ 81
10 da/je/5
PAG LIN
1 1 DIVISION I
1 2 ESTABLISHMENT OF RENEWABLE FUEL STANDARDS
1 3 Section 1. PETROLEUM REPLACEMENT GOAL. It is the goal of
1 4 this state that by January 1, 2025, biofuel will replace
1 5 twenty=five percent of all petroleum used in the formulation
1 6 of gasoline.
1 7 Sec. 2. Section 214A.1, Code 2005, is amended by adding
1 8 the following new subsections:
1 9 NEW SUBSECTION. 0A. "Advertise" means to present a
1 10 commercial message in any medium, including but not limited to
1 11 print, radio, television, sign, display, label, tag, or
1 12 articulation.
1 13 NEW SUBSECTION. 1A. "Biodiesel" means a renewable fuel
1 14 comprised of mono=alkyl esters of long=chain fatty acids
1 15 derived from vegetable oils or animal fats, which meets the
1 16 standards provided in section 214A.2.
1 17 NEW SUBSECTION. 1B. "Biodiesel blended fuel" means a
1 18 blend of biodiesel with petroleum=based diesel fuel which
1 19 meets the standards, including separately the standard for its
1 20 biodiesel constituent, provided in section 214A.2.
1 21 NEW SUBSECTION. 1C. "Biofuel" means ethanol or biodiesel.
1 22 NEW SUBSECTION. 1D. "Committee" means the renewable fuels
1 23 and coproducts advisory committee established pursuant to
1 24 section 159A.4.
1 25 NEW SUBSECTION. 1E. "Dealer" means a wholesale dealer or
1 26 retail dealer.
1 27 NEW SUBSECTION. 1F. "Diesel fuel" means any liquid, other
1 28 than gasoline, which is suitable for use as a fuel in a diesel
1 29 fuel powered engine, including but not limited to a motor
1 30 vehicle, equipment as defined in section 322F.1, or a train.
1 31 Diesel fuel includes a liquid product prepared, advertised,
1 32 offered for sale, or sold for use as, or commonly and
1 33 commercially used as, motor fuel for use in an internal
1 34 combustion engine and ignited by pressure without the presence
1 35 of an electric spark. Diesel fuel must meet the standards
2 1 provided in section 214A.2.
2 2 NEW SUBSECTION. 1G. "E=85 gasoline" means ethanol blended
2 3 gasoline formulated with a minimum percentage of between
2 4 seventy and eighty=five percent by volume of ethanol, if the
2 5 formulation meets the standards provided in section 214A.2.
2 6 NEW SUBSECTION. 1H. "Ethanol" means ethyl alcohol that is
2 7 to be blended with gasoline if it meets the standards provided
2 8 in section 214A.2.
2 9 NEW SUBSECTION. 1I. "Ethanol blended gasoline" means a
2 10 formulation of gasoline which is a liquid petroleum product
2 11 blended with ethanol, if the formulation meets the standards
2 12 provided in section 214A.2.
2 13 NEW SUBSECTION. 1J. "Gasoline" means any liquid product
2 14 prepared, advertised, offered for sale or sold for use as, or
2 15 commonly and commercially used as, motor fuel for use in a
2 16 spark=ignition, internal combustion engine, and which meets
2 17 the specifications provided in section 214A.2.
2 18 NEW SUBSECTION. 2A. "Motor fuel pump" means the same as
2 19 defined in section 214.1.
2 20 NEW SUBSECTION. 5A. "Renewable fuel" means a combustible
2 21 liquid derived from grain starch, oilseed, animal fat, or
2 22 other biomass; or produced from a biogas source, including any
2 23 nonfossilized decaying organic matter which is capable of
2 24 powering machinery, including but not limited to an engine or
2 25 power plant. Renewable fuel includes but is not limited to
2 26 biofuel, ethanol blended gasoline, or biodiesel blended fuel
2 27 meeting the standards provided in section 214A.2.
2 28 NEW SUBSECTION. 5B. "Renewable fuel producer" means a
2 29 person engaged in the production of any of the following:
2 30 a. Ethanol for use as a blending component in ethanol
2 31 blended gasoline.
2 32 b. Biodiesel for use as a motor fuel or as a distillate in
2 33 biodiesel blended fuel.
2 34 NEW SUBSECTION. 6A. "Retail motor fuel site" means a
2 35 geographic location in this state where a retail dealer sells
3 1 and dispenses motor fuel on a retail basis.
3 2 Sec. 3. Section 214A.1, subsection 2, Code 2005, is
3 3 amended to read as follows:
3 4 2. "Motor vehicle fuel" means a substance or combination
3 5 of substances which is intended to be or is capable of being
3 6 used for the purpose of propelling or running by combustion
3 7 any of operating an internal combustion engine, including but
3 8 not limited to a motor vehicle, and is kept for sale or sold
3 9 for that purpose. The products commonly known as kerosene and
3 10 distillate or petroleum products of lower gravity (Baume
3 11 scale), when not used to propel a motor vehicle or for
3 12 compounding or combining with a motor vehicle fuel, are exempt
3 13 from this chapter except as provided in section 214A.2A.
3 14 Sec. 4. Section 214A.1, subsections 6 and 8, Code 2005,
3 15 are amended by striking the subsections and inserting in lieu
3 16 thereof the following:
3 17 6. "Retail dealer" means a person engaged in the business
3 18 of storing and dispensing motor fuel from a motor fuel pump
3 19 for sale on a retail basis, regardless of whether the motor
3 20 fuel pump is located at a retail motor fuel site.
3 21 8. "Wholesale dealer" means a person, other than a retail
3 22 dealer, who operates a place of business where motor fuel is
3 23 stored and dispensed for sale in this state, including a
3 24 permanent or mobile location.
3 25 Sec. 5. Section 214A.2, subsection 1, Code 2005, is
3 26 amended to read as follows:
3 27 1. The secretary department shall adopt rules pursuant to
3 28 chapter 17A for carrying out this chapter. The rules may
3 29 include, but are not limited to, specifications relating to
3 30 motor fuel or oxygenate octane enhancers, including but not
3 31 limited to renewable fuel such as ethanol blended gasoline,
3 32 biodiesel, biodiesel blended fuel, and motor fuel components
3 33 such as an oxygenate. In the interest of uniformity, the
3 34 secretary department shall adopt by reference or otherwise
3 35 other specifications relating to tests and standards for motor
4 1 fuel or oxygenate octane enhancers including renewable fuel
4 2 and motor fuel components, established by the United States
4 3 environmental protection agency and A.S.T.M. (American society
4 4 for testing and materials) international, unless the secretary
4 5 determines those specifications are inconsistent with this
4 6 chapter or are not appropriate to the conditions which exist
4 7 in this state. In adopting standards for a renewable fuel,
4 8 the department shall consult with the committee.
4 9 Sec. 6. Section 214A.2, Code 2005, is amended by adding
4 10 the following new subsection:
4 11 NEW SUBSECTION. 2A. a. For motor fuel advertised for
4 12 sale or sold as gasoline by a dealer, the motor fuel must meet
4 13 registration requirements for that type of motor fuel and its
4 14 additives established by the United States environmental
4 15 protection agency including as provided under 42 U.S.C. }
4 16 7545.
4 17 b. If the motor fuel is advertised for sale or sold as
4 18 ethanol blended gasoline, the motor fuel must comply with
4 19 departmental standards which shall comply with specifications
4 20 for ethanol blended gasoline adopted by A.S.T.M.
4 21 international. For ethanol blended gasoline all of the
4 22 following shall apply:
4 23 (1) Ethanol must be agriculturally derived, having at
4 24 least one hundred ninety proof, be denatured as required by
4 25 federal law including 27 C.F.R., pts. 20 and 21, and conform
4 26 to A.S.T.M. international specification D 4806=95b or a
4 27 successor A.S.T.M. international specification as established
4 28 by rules adopted by the department.
4 29 (2) For ethanol blended gasoline other than E=85 gasoline,
4 30 at least ten percent of the gasoline by volume must be
4 31 ethanol.
4 32 (3) For E=85 gasoline all of the following must apply:
4 33 (a) From the first day of April until the last day of
4 34 October, at least eighty=five percent of the gasoline by
4 35 volume must be ethanol.
5 1 (b) From the first day of November until the last day of
5 2 March, at least seventy percent of the gasoline by volume must
5 3 be ethanol.
5 4 (c) E=85 gasoline must conform to A.S.T.M. international
5 5 specification D 5798=99 or a successor A.S.T.M. international
5 6 specification as established by rules adopted by the
5 7 department.
5 8 (4) In calculating the percentage of ethanol required for
5 9 the formulation of ethanol blended gasoline, a percentage of a
5 10 denaturant or contaminants permitted in the ethanol blended
5 11 gasoline may be excluded as provided by rules adopted by the
5 12 department.
5 13 Sec. 7. Section 214A.2, subsection 3, Code 2005, is
5 14 amended by striking the subsection and inserting in lieu
5 15 thereof the following:
5 16 3. a. For motor fuel advertised for sale or sold as
5 17 biodiesel or biodiesel blended fuel by a dealer, the motor
5 18 fuel must meet registration requirements for that type of
5 19 motor fuel and its additives established by the United States
5 20 environmental protection agency including as provided under 42
5 21 U.S.C. } 7545.
5 22 b. The motor fuel must comply with departmental standards
5 23 which shall comply with specifications adopted by A.S.T.M.
5 24 international for biodiesel or biodiesel blended fuel, to
5 25 every extent applicable as determined by rules adopted by the
5 26 department.
5 27 (1) Biodiesel must conform to A.S.T.M. international
5 28 specification D 6751 or a successor A.S.T.M. international
5 29 specification as established by rules adopted by the
5 30 department. The specification shall apply to biodiesel before
5 31 it leaves its place of manufacture.
5 32 (2) At least one percent of biodiesel blended fuel by
5 33 volume must be biodiesel.
5 34 (3) The biodiesel may be blended with diesel fuel whose
5 35 sulfur, aromatic, lubricity, and cetane levels do not comply
6 1 with A.S.T.M. international specification D 975 grades 1=D or
6 2 2=D, low sulfur 1=D or 2=D, or ultra=low sulfur grades 1=D or
6 3 2D, provided that the finished biodiesel blended fuel meets
6 4 A.S.T.M. international specification D 975 or a successor
6 5 A.S.T.M. international specification as established by rules
6 6 adopted by the department.
6 7 Sec. 8. Section 214A.2A, Code 2005, is amended to read as
6 8 follows:
6 9 214A.2A KEROSENE LABELING.
6 10 1. Fuel which is sold or is kept, offered, or exposed for
6 11 sale as kerosene shall be labeled as kerosene. The label
6 12 shall include the word "kerosene" and a designation as either
6 13 "K1" or "K2", and shall indicate that the kerosene is in
6 14 compliance with the standard specification adopted by the
6 15 A.S.T.M. in international specification D=3699 (1982).
6 16 2. A product commonly known as kerosene and a distillate
6 17 or a petroleum product of lower gravity (Baume scale), when
6 18 not used to propel a motor vehicle or for compounding or
6 19 combining with a motor fuel, are exempt from this chapter
6 20 except as provided in this section.
6 21 Sec. 9. Section 214A.3, Code 2005, is amended by striking
6 22 the section and inserting in lieu thereof the following:
6 23 214A.3 ADVERTISING.
6 24 1. For all motor fuel, a person shall not knowingly do any
6 25 of the following:
6 26 a. Advertise the sale of any motor fuel which does not
6 27 meet the standards provided in section 214A.2.
6 28 b. Falsely advertise the quality or kind of any motor fuel
6 29 or a component of motor fuel.
6 30 c. Add a coloring matter to the motor fuel which misleads
6 31 a person who is purchasing the motor fuel about the quality of
6 32 the motor fuel.
6 33 2. For a renewable fuel, all of the following applies:
6 34 a. A person shall not knowingly falsely advertise that a
6 35 motor fuel is a renewable fuel or is not a renewable fuel.
7 1 b. (1) Ethanol blended gasoline sold by a dealer shall be
7 2 designated E=xx where "xx" is the volume percent of ethanol in
7 3 the ethanol blended gasoline. A person shall not knowingly
7 4 falsely advertise ethanol blended gasoline by using an
7 5 inaccurate designation in violation of this subparagraph.
7 6 (2) Biodiesel blended fuel shall be designated B=xx where
7 7 "xx" is the volume percent of biodiesel in the biodiesel
7 8 blended fuel. A person shall not knowingly falsely advertise
7 9 biodiesel blended fuel by using an inaccurate designation in
7 10 violation of this subparagraph.
7 11 Sec. 10. Section 214A.8, Code 2005, is amended to read as
7 12 follows:
7 13 214A.8 PROHIBITION.
7 14 A retail or wholesale dealer defined in this chapter shall
7 15 not knowingly sell any motor vehicle fuel or an oxygenate
7 16 octane enhancer in the state that fails to meet applicable
7 17 standards and specifications set out in this chapter as
7 18 provided in section 214A.2.
7 19 Sec. 11. Section 214A.11, Code 2005, is amended to read as
7 20 follows:
7 21 214A.11 VIOLATIONS PENALTY.
7 22 Any A person violating the provisions who knowingly
7 23 violates a provision of this chapter shall be is guilty of a
7 24 simple serious misdemeanor.
7 25 DIVISION II
7 26 RENEWABLE FUEL INFRASTRUCTURE
7 27 Sec. 12. Section 323A.1, Code 2005, is amended by adding
7 28 the following new subsections:
7 29 NEW SUBSECTION. 0A. "E=85 gasoline" means the same as
7 30 defined in section 214A.1.
7 31 NEW SUBSECTION. 0B. "Ethanol blended gasoline" means the
7 32 same as defined in section 214A.1.
7 33 Sec. 13. Section 323A.1, subsection 4, Code 2005, is
7 34 amended to read as follows:
7 35 4. "Motor fuel" means gasoline or diesel fuel the same as
8 1 motor fuel as defined in section 214A.1, which is of a type
8 2 distributed for use as a fuel in self=propelled vehicles
8 3 designed primarily for use on public streets, roads, and
8 4 highways.
8 5 Sec. 14. Section 323A.2, subsection 1, paragraph a, Code
8 6 2005, is amended to read as follows:
8 7 a. At least forty=eight hours prior to entering into an
8 8 agreement to purchase motor fuel from another source, the
8 9 franchisee has requested delivery of motor fuel from the
8 10 franchisor and the requested motor fuel has not been delivered
8 11 and the franchisor has given the franchisee notice that the
8 12 franchisor is unable to provide the requested motor fuel, or
8 13 prior to entering into an agreement the franchisor has stated
8 14 to the franchisee that the requested motor fuel will not be
8 15 delivered. The request to the franchisor for delivery shall
8 16 be for a type of fuel normally provided by the franchisor to
8 17 the franchisee and for a quantity of fuel not exceeding the
8 18 average amount sold by the franchisee in one week, based upon
8 19 average weekly sales in the three months preceding the
8 20 request, except that this provision shall not restrict a
8 21 franchisee from purchasing ethanol blended gasoline from a
8 22 source other than the franchisor or limit the quantity to be
8 23 purchased when the franchisor does not normally supply the
8 24 franchisee with ethanol blended gasoline. A franchisee may
8 25 also purchase E=85 gasoline as provided in section 323A.2A.
8 26 Sec. 15. NEW SECTION. 323A.2A PURCHASE OF E=85 GASOLINE
8 27 FROM OTHER SOURCE.
8 28 1. a. When on and after the effective date of this
8 29 section of this Act, a franchise is entered into or renewed,
8 30 the franchisor shall provide for the delivery of volumes of E=
8 31 85 gasoline at times demanded by the franchisee or shall allow
8 32 the franchisee to purchase those volumes of E=85 gasoline at
8 33 those times from another source.
8 34 b. If a franchise is in effect on the effective date of
8 35 this section of this Act and does not have an expiration date,
9 1 the franchisor shall provide for the delivery of volumes of E=
9 2 85 gasoline at times demanded by the franchisee or shall allow
9 3 the franchisee to purchase those volumes of E=85 gasoline at
9 4 those times from another source.
9 5 2. If the franchisee sells E=85 gasoline delivered from a
9 6 source other than the franchisor, the franchisee shall
9 7 prominently post a sign disclosing this fact to the public on
9 8 each motor fuel pump used for dispensing the E=85 gasoline.
9 9 The size of the sign shall not be less than eight inches by
9 10 ten inches and the letters on the sign shall be at least three
9 11 inches in height.
9 12 3. A franchisee who sells E=85 gasoline delivered from a
9 13 source other than the franchisor shall also fully indemnify
9 14 the franchisor against any claims asserted by a user on which
9 15 the claimant prevails and in which the court determines that
9 16 E=85 gasoline not acquired from the franchisor was the
9 17 proximate cause of the injury.
9 18 4. a. A purchase of E=85 gasoline in accordance with this
9 19 section is not good cause for the termination of a franchise.
9 20 b. A term of a franchise that is inconsistent with this
9 21 section is void and unenforceable.
9 22 Sec. 16. Section 455G.2, Code Supplement 2005, is amended
9 23 by adding the following new subsections:
9 24 NEW SUBSECTION. 3A. "Biodiesel" and "biodiesel blended
9 25 fuel" mean the same as defined in section 214A.1.
9 26 NEW SUBSECTION. 8A. "Department" means the department of
9 27 natural resources created in section 455A.2.
9 28 NEW SUBSECTION. 10A. "E=85 gasoline", "gasoline", "motor
9 29 fuel", "motor fuel pump", "retail dealer", and "retail motor
9 30 fuel site" mean the same as defined in section 214A.1.
9 31 NEW SUBSECTION. 13A. "Infrastructure board" means the
9 32 renewable fuel infrastructure board as created in section
9 33 455G.33.
9 34 NEW SUBSECTION. 13B. "Infrastructure fund" means the
9 35 renewable fuel infrastructure fund as created in section
10 1 455G.32.
10 2 NEW SUBSECTION. 15A. "Motor fuel storage and dispensing
10 3 infrastructure" or "infrastructure" means a tank and motor
10 4 fuel pumps necessary to keep and dispense motor fuel at a
10 5 retail motor fuel site, including but not limited to all
10 6 associated equipment, dispensers, pumps, pipes, hoses, tubes,
10 7 lines, fittings, valves, filters, seals, and covers.
10 8 NEW SUBSECTION. 21A. "Terminal" means a storage and
10 9 distribution facility for motor fuel or a blend stock such as
10 10 ethanol or biodiesel that is supplied to a motor vehicle,
10 11 pipeline, or a marine vessel and from which the motor fuel or
10 12 blend stock may be removed at a rack. "Terminal" does not
10 13 include any of the following:
10 14 a. A retail motor fuel site.
10 15 b. A facility at which motor fuel or special fuel, or
10 16 blend stocks are used in the manufacture of products other
10 17 than motor fuel and from which no motor fuel or special fuel
10 18 is removed.
10 19 NEW SUBSECTION. 21B. "Terminal operator" means a person
10 20 who has responsibility for, or physical control over, the
10 21 operation of a terminal, including by ownership, contractual
10 22 agreement, or appointment.
10 23 SUBCHAPTER III
10 24 RENEWABLE FUEL INFRASTRUCTURE
10 25 Sec. 17. NEW SECTION. 455G.31 E=85 GASOLINE STORAGE AND
10 26 DISPENSING INFRASTRUCTURE.
10 27 1. As used in this section, "gasoline storage and
10 28 dispensing infrastructure" means any storage tank located
10 29 below ground or above ground and any associated equipment
10 30 including but not limited to a pipe, hose, connection, fitting
10 31 seal, or pump, which is used to store, measure, and dispense
10 32 gasoline by a retail dealer as defined in section 214A.1.
10 33 2. A retail dealer may use gasoline storage and dispensing
10 34 infrastructure to store and dispense E=85 gasoline, if all of
10 35 the following apply:
11 1 a. For gasoline storage and dispensing infrastructure
11 2 other than the dispenser, the department must determine that
11 3 it is compatible with E=85 gasoline.
11 4 b. For a dispenser, the manufacturer must state all of the
11 5 following:
11 6 (1) That the equipment is, in the opinion of the
11 7 manufacturer, not incompatible with E=85 gasoline.
11 8 (2) The manufacturer has initiated the process of applying
11 9 to an independent testing laboratory for listing of the
11 10 equipment for use in dispensing E=85 gasoline.
11 11 A manufacturer's statement must include a written
11 12 statement, with reference to a particular type and model of
11 13 equipment, signed by a responsible official on behalf of the
11 14 manufacturer, provided either to the retail dealer using the
11 15 gasoline storage and dispensing infrastructure or to the
11 16 department of natural resources or the department of public
11 17 safety. If the written statement is provided to a retail
11 18 dealer, the statement shall be retained in the files on the
11 19 premises of the retail dealer and shall be available to
11 20 personnel of the department of natural resources or the
11 21 department of public safety upon request.
11 22 3. This section is repealed July 1, 2009.
11 23 Sec. 18. NEW SECTION. 455G.32 RENEWABLE FUEL
11 24 INFRASTRUCTURE FUND.
11 25 1. A renewable fuel infrastructure fund is created in the
11 26 state treasury under the control of the department. The fund
11 27 is separate from the general fund of the state.
11 28 2. Moneys in the renewable fuel infrastructure fund are
11 29 appropriated to the department exclusively to support the
11 30 renewable fuel infrastructure programs as provided in sections
11 31 455G.34 and 455G.35. Sixty=five percent of the moneys in the
11 32 fund shall be allocated to support infrastructure relating to
11 33 storing and dispensing E=85 gasoline as provided in section
11 34 455G.34 and the remaining amount shall be allocated to support
11 35 infrastructure relating to storing and dispensing biodiesel or
12 1 biodiesel blended fuel as provided in sections 455G.34 and
12 2 455G.35. However, the renewable fuel infrastructure board may
12 3 adjust this percentage allocation, if the board determines
12 4 that there are not sufficient persons eligible to be awarded
12 5 moneys to support infrastructure relating to storing and
12 6 dispensing E=85 gasoline or to support infrastructure relating
12 7 to storing and dispensing of biodiesel or biodiesel blended
12 8 fuel. Moneys in the fund shall not be transferred, used,
12 9 obligated, appropriated, or otherwise encumbered except as
12 10 necessary to administer the program.
12 11 3. a. Payments of interest, the recapture of awards or
12 12 penalties, or other repayments of moneys originating from the
12 13 renewable fuel infrastructure fund shall be deposited into the
12 14 fund.
12 15 b. Notwithstanding section 8.33, any unexpended balance in
12 16 the fund at the end of the fiscal year shall be retained in
12 17 the fund.
12 18 c. Notwithstanding section 12C.7, subsection 2, interest,
12 19 earnings on investments, or time deposits of the moneys in the
12 20 fund shall be credited to the fund.
12 21 Sec. 19. NEW SECTION. 455G.33 RENEWABLE FUEL
12 22 INFRASTRUCTURE BOARD.
12 23 A renewable fuel infrastructure board is established within
12 24 the department.
12 25 1. The department shall provide the infrastructure board
12 26 with necessary facilities, items, and clerical support. The
12 27 department shall perform administrative functions necessary
12 28 for the management of the infrastructure board, the renewable
12 29 fuel infrastructure fund created in section 455G.32, and the
12 30 renewable fuel infrastructure programs as provided in sections
12 31 455G.34 and 455G.35, all under the direction of the
12 32 infrastructure board.
12 33 2. The infrastructure board shall be composed of nine
12 34 members who shall be appointed by the governor as follows:
12 35 a. One person representing insurers who is knowledgeable
13 1 about issues relating to underground storage tanks.
13 2 b. Eight persons based on nominations made by the titular
13 3 heads of all of the following:
13 4 (1) The agribusiness association of Iowa.
13 5 (2) The Iowa corn growers association.
13 6 (3) The Iowa farm bureau federation.
13 7 (4) The Iowa motor truck association.
13 8 (5) The Iowa soybean association.
13 9 (6) The petroleum marketers and convenience stores of
13 10 Iowa.
13 11 (7) The Iowa petroleum equipment contractors association.
13 12 (8) The Iowa renewable fuels association.
13 13 3. Appointments of voting members to the infrastructure
13 14 board are subject to the requirements of sections 69.16 and
13 15 69.16A. In addition, the appointments shall be geographically
13 16 balanced. The governor's appointees shall be confirmed by the
13 17 senate, pursuant to section 2.32.
13 18 4. The members of the infrastructure board shall serve
13 19 five=year terms beginning and ending as provided in section
13 20 69.19. However, the governor shall appoint initial members to
13 21 serve for less than five years to ensure members serve
13 22 staggered terms. A member is eligible for reappointment. A
13 23 vacancy on the board shall be filled for the unexpired portion
13 24 of the regular term in the same manner as regular appointments
13 25 are made.
13 26 5. The infrastructure board shall elect a chairperson from
13 27 among its members each year on a rotating basis as provided by
13 28 the infrastructure board. The infrastructure board shall meet
13 29 on a regular basis and at the call of the chairperson or upon
13 30 the written request to the chairperson of five or more
13 31 members.
13 32 6. Members of the infrastructure board are not entitled to
13 33 receive compensation but shall receive reimbursement of
13 34 expenses from the department as provided in section 7E.6.
13 35 7. Five members of the infrastructure board constitute a
14 1 quorum and the affirmative vote of a majority of the members
14 2 present is necessary for any substantive action to be taken by
14 3 the infrastructure board. The majority shall not include any
14 4 member who has a conflict of interest and a statement by a
14 5 member that the member has a conflict of interest is
14 6 conclusive for this purpose. A vacancy in the membership does
14 7 not impair the duties of the infrastructure board.
14 8 Sec. 20. NEW SECTION. 455G.34 RENEWABLE FUEL
14 9 INFRASTRUCTURE PROGRAM FOR RETAIL MOTOR FUEL SITES.
14 10 A renewable fuel infrastructure program is established in
14 11 the department under the direction of the renewable fuel
14 12 infrastructure board created pursuant to section 455G.33.
14 13 1. The purpose of the program is to improve a retail motor
14 14 fuel site by installing, replacing, or converting motor fuel
14 15 storage and dispensing infrastructure. The infrastructure
14 16 must be designed and shall be used exclusively to store and
14 17 dispense E=85 gasoline, biodiesel, or biodiesel blended fuel
14 18 on the premises of retail motor fuel sites operated by retail
14 19 dealers.
14 20 2. The department shall award financial incentives to a
14 21 person participating in the program as directed by the
14 22 infrastructure board. The infrastructure board shall approve
14 23 the cost=share agreements executed by the department and
14 24 persons that the infrastructure board determines are eligible
14 25 as provided in this section, according to terms and conditions
14 26 required by the infrastructure board. The infrastructure
14 27 board shall determine the amount of the financial incentives
14 28 to be awarded to a person participating in the program. In
14 29 order to be eligible to participate in the program all of the
14 30 following must apply:
14 31 a. The person must be an owner or operator of the retail
14 32 motor fuel site.
14 33 b. The person must apply to the department in a manner and
14 34 according to procedures required by the infrastructure board.
14 35 The application must contain all information required by the
15 1 infrastructure board and shall at least include all of the
15 2 following:
15 3 (1) The name of the person and the address of the retail
15 4 motor fuel site to be improved.
15 5 (2) A detailed description of the infrastructure to be
15 6 installed, replaced, or converted, including but not limited
15 7 to the model number of each installed, replaced, or converted
15 8 motor fuel storage tank if available.
15 9 (3) A statement describing how the retail motor fuel site
15 10 is to be improved, the total estimated cost of the planned
15 11 improvement, and the date when the infrastructure will be
15 12 first used to store and dispense the renewable fuel.
15 13 (4) A statement certifying that the infrastructure shall
15 14 not be used to store or dispense motor fuel other than E=85
15 15 gasoline, biodiesel, or biodiesel blended fuel, unless granted
15 16 a waiver by the infrastructure board pursuant to this section.
15 17 3. A retail motor fuel site which is improved using
15 18 financial incentives must comply with federal and state
15 19 standards governing new or upgraded motor fuel storage tanks
15 20 used to store and dispense the renewable fuel. A site
15 21 classified as a no further action site pursuant to a
15 22 certificate issued by the department under section 455B.474
15 23 shall retain its classification following modifications
15 24 necessary to store and dispense the renewable fuel and the
15 25 owner or operator shall not be required to perform a new site
15 26 assessment unless the site causes a clear, present, and
15 27 impending danger to the public health or the environment.
15 28 4. a. For the period beginning July 1, 2006, and ending
15 29 June 30, 2009, the department upon direction of the
15 30 infrastructure board shall distribute financial incentives to
15 31 improve retail motor fuel sites located within each of the six
15 32 geographic regions described in section 173.4A.
15 33 b. The infrastructure board shall not approve a cost=
15 34 share agreement which awards financial incentives to install,
15 35 replace, or convert infrastructure associated with more than
16 1 one motor fuel storage tank or motor fuel pump located at the
16 2 same retail motor fuel site.
16 3 5. An award of financial incentives to a participating
16 4 person shall be in the form of a grant.
16 5 a. In order to participate in the program an eligible
16 6 person must execute a cost=share agreement with the department
16 7 as approved by the infrastructure board in which the person
16 8 contributes a percentage of the total costs related to
16 9 improving the retail motor fuel site. The financial
16 10 incentives awarded to the participating person shall not
16 11 exceed thirty percent of the estimated cost of making the
16 12 improvements or thirty percent of the actual cost of making
16 13 the improvements, whichever is less.
16 14 b. The infrastructure board shall not approve an award of
16 15 more than thirty thousand dollars to improve a retail motor
16 16 fuel site. The infrastructure board may approve multiple
16 17 awards to make improvements to a retail motor fuel site so
16 18 long as the total amount of the awards in all years is not
16 19 more than thirty thousand dollars.
16 20 c. A participating person shall not use the infrastructure
16 21 to store or dispense motor fuel other than E=85 gasoline,
16 22 biodiesel, or biodiesel blended fuel unless one of the
16 23 following applies:
16 24 (1) The participating person is granted a waiver by the
16 25 infrastructure board. The participating person shall store or
16 26 dispense the motor fuel according to the terms and conditions
16 27 of the waiver.
16 28 (2) The infrastructure fund is immediately repaid the
16 29 total amount of moneys awarded to the participating person
16 30 together with a monetary penalty equal to twenty=five percent
16 31 of that awarded amount.
16 32 d. A participating person who acts in violation of an
16 33 agreement executed with the department pursuant to this
16 34 section is subject to a civil penalty of not more than one
16 35 thousand dollars a day for each day of the violation. The
17 1 civil penalty shall be deposited into the general fund of the
17 2 state.
17 3 Sec. 21. NEW SECTION. 455G.35 RENEWABLE FUEL
17 4 INFRASTRUCTURE PROGRAM FOR BIODIESEL TERMINAL FACILITIES.
17 5 The department, under the direction of the renewable fuel
17 6 infrastructure board created in section 455G.33, and in
17 7 cooperation with the Iowa comprehensive petroleum underground
17 8 storage tank fund board, shall establish and administer a
17 9 renewable fuel infrastructure program for terminal facilities
17 10 that store and dispense biodiesel or biodiesel blended fuel.
17 11 The infrastructure must be designed and shall be used
17 12 exclusively to store and distribute biodiesel or biodiesel
17 13 blended fuel. The department as directed by the
17 14 infrastructure board shall provide a cost=share program for
17 15 financial incentives.
17 16 1. To all extent practicable, the program shall be
17 17 administered in consultation with the department of economic
17 18 development when that department administers its cost=share
17 19 program pursuant to section 15.401.
17 20 2. The department of natural resources shall award
17 21 financial incentives to a terminal operator participating in
17 22 the program as directed by the infrastructure board. In order
17 23 to be eligible to participate in the program, the terminal
17 24 operator must apply to the department in a manner and
17 25 according to procedures required by the infrastructure board.
17 26 The application must contain information required by the
17 27 infrastructure board and shall at least include all of the
17 28 following:
17 29 a. The name of the terminal operator and the address of
17 30 the terminal to be improved.
17 31 b. A detailed description of the infrastructure to be
17 32 installed, replaced, or converted.
17 33 c. A statement describing how the terminal is to be
17 34 improved, the total estimated cost of the planned improvement,
17 35 and the date when the infrastructure will be first used to
18 1 store and distribute biodiesel or biodiesel blended fuel.
18 2 d. A statement certifying that the infrastructure shall
18 3 not be used to store or dispense motor fuel other than
18 4 biodiesel or biodiesel blended fuel, unless granted a waiver
18 5 by the infrastructure board pursuant to this section.
18 6 3. The department's award of financial incentives to a
18 7 participating terminal operator shall be in the form of a
18 8 grant. In order to participate in the program, an eligible
18 9 terminal operator must execute a cost=share agreement with the
18 10 department in which the terminal operator contributes a
18 11 percentage of the total costs related to improving the
18 12 terminal. The financial incentives awarded to the
18 13 participating terminal operator shall not exceed the estimated
18 14 cost of making the improvements or the actual cost of making
18 15 the improvements, whichever is less.
18 16 4. A participating terminal operator shall not use the
18 17 infrastructure to store or dispense motor fuel other than
18 18 biodiesel or biodiesel blended fuel, unless one of the
18 19 following applies:
18 20 a. The participating terminal operator is granted a waiver
18 21 by the infrastructure board. The participating terminal
18 22 operator shall store or dispense the motor fuel according to
18 23 the terms and conditions of the waiver.
18 24 b. The infrastructure fund is immediately repaid the total
18 25 amount of moneys awarded to the participating terminal
18 26 operator together with a monetary penalty equal to twenty=five
18 27 percent of that awarded amount.
18 28 c. A participating terminal operator who acts in violation
18 29 of an agreement executed with the department pursuant to this
18 30 section is subject to a civil penalty of not more than one
18 31 thousand dollars a day for each day of the violation. The
18 32 civil penalty shall be deposited into the general fund of the
18 33 state.
18 34 Sec. 22. EFFECTIVE DATE.
18 35 1. The sections of this Act amending sections 323A.1 and
19 1 323A.2, being deemed of immediate importance, take effect upon
19 2 enactment.
19 3 2. Section 323A.2A, as enacted in this Act, being deemed
19 4 of immediate importance, takes effect upon enactment.
19 5 DIVISION III
19 6 RENEWABLE FUEL INCOME TAX CREDIT PROVISIONS
19 7 Sec. 23. Section 422.11C, subsection 1, paragraphs a
19 8 through g, Code 2005, are amended by striking the paragraphs
19 9 and inserting in lieu thereof the following:
19 10 a. "E=85 gasoline", "ethanol blended gasoline",
19 11 "gasoline", and "retail dealer" mean the same as defined in
19 12 section 214A.1.
19 13 b. "Motor fuel pump" means the same as motor vehicle fuel
19 14 pump as defined in section 214.1.
19 15 c. "Retail motor fuel site" means the same as defined in
19 16 section 214A.1.
19 17 d. "Sell" means to sell on a retail basis.
19 18 e. "Tax credit" means the designated ethanol blended
19 19 gasoline tax credit as provided in this section.
19 20 Sec. 24. Section 422.11C, subsection 2, paragraph b, Code
19 21 2005, is amended to read as follows:
19 22 b. The taxpayer operates at least one service station
19 23 retail motor fuel site at which more than sixty percent of the
19 24 total gallons of gasoline sold and dispensed through one or
19 25 more metered motor fuel pumps by the taxpayer in the tax year
19 26 is ethanol blended gasoline.
19 27 Sec. 25. Section 422.11C, subsection 3, Code 2005, is
19 28 amended to read as follows:
19 29 3. The tax credit shall be calculated separately for each
19 30 service station retail motor fuel site operated by the
19 31 taxpayer. The amount of the tax credit for each eligible
19 32 service station retail motor fuel site is two and one=half
19 33 cents multiplied by the total number of gallons of ethanol
19 34 blended gasoline sold and dispensed through all metered motor
19 35 fuel pumps located at that service station retail motor fuel
20 1 site during the tax year in excess of sixty percent of all
20 2 gasoline sold and dispensed through metered motor fuel pumps
20 3 at that service station retail motor fuel site during the tax
20 4 year.
20 5 3A. A taxpayer is not eligible to claim a designated
20 6 ethanol blended gasoline tax credit as provided in this
20 7 section, if the taxpayer claims any of the following:
20 8 a. An ethanol promotion tax credit as provided in section
20 9 422.11N or 422.33.
20 10 b. An E=85 gasoline promotion tax credit as provided in
20 11 section 422.11O or 422.33 for the same gallons of ethanol
20 12 blended gasoline.
20 13 Sec. 26. Section 422.11C, Code 2005, is amended by adding
20 14 the following new subsection:
20 15 NEW SUBSECTION. 6. This section is repealed on January 1,
20 16 2007.
20 17 Sec. 27. NEW SECTION. 422.11N ETHANOL PROMOTION TAX
20 18 CREDIT.
20 19 1. As used in this section, unless the context otherwise
20 20 requires:
20 21 a. "E=85 gasoline", "ethanol", "ethanol blended gasoline",
20 22 "gasoline", "motor fuel pump", and "retail dealer" mean the
20 23 same as defined in section 214A.1.
20 24 b. "Sell" means to sell on a retail basis.
20 25 c. "Tax credit" means the ethanol promotion tax credit as
20 26 provided in this section.
20 27 2. The taxes imposed under this division, less the credits
20 28 allowed under sections 422.12 and 422.12B, shall be reduced by
20 29 an ethanol promotion tax credit for each tax year that the
20 30 taxpayer is eligible to claim the tax credit under this
20 31 section. In order to be eligible, all of the following must
20 32 apply:
20 33 a. The taxpayer is a retail dealer who sells and dispenses
20 34 ethanol blended gasoline through a motor fuel pump in the tax
20 35 year in which the tax credit is claimed.
21 1 b. The retail dealer complies with requirements of the
21 2 department to administer this section.
21 3 3. In order to receive the tax credit, the retail dealer
21 4 must calculate all of the following:
21 5 a. The retail dealer's total gasoline gallonage as
21 6 provided in section 452A.31.
21 7 b. The retail dealer's total ethanol gallonage as provided
21 8 in section 452A.31. The retail dealer may calculate the
21 9 ethanol gallonage based on the schedule provided in section
21 10 452A.32.
21 11 4. The tax credit is calculated by multiplying five cents
21 12 by the retail dealer's total ethanol gallonage as provided in
21 13 section 452A.31 as follows:
21 14 a. For each calendar year beginning during the period
21 15 commencing January 1, 2006, and ending December 31, 2010, the
21 16 tax credit shall be five cents multiplied by the retail
21 17 dealer's total ethanol gallonage.
21 18 b. For each calendar year beginning during the period
21 19 commencing January 1, 2011, and ending December 31, 2025, the
21 20 tax credit shall be calculated as follows:
21 21 (1) Take the retail dealer's total ethanol gallonage which
21 22 is the minuend.
21 23 (2) Multiply the retail dealer's total gasoline gallonage
21 24 by a deductible percentage and round off the resulting product
21 25 to the nearest whole number to obtain the subtrahend. For
21 26 calendar year 2011, the deductible percentage is one percent.
21 27 For each subsequent calendar year, the deductible percentage
21 28 shall keep increasing by one percent.
21 29 (3) Subtract the subtrahend from the minuend to obtain the
21 30 retail dealer's resulting qualifying ethanol gallonage.
21 31 (4) Multiply the retail dealer's resulting qualifying
21 32 ethanol gallonage by five cents.
21 33 c. If a retail dealer's tax year ends prior to December 31
21 34 of a calendar year, the retail dealer may continue to claim
21 35 the tax credit in the retail dealer's following tax year. In
22 1 that case, the tax credit shall be five cents multiplied by
22 2 the retail dealer's total ethanol gallonage for the period
22 3 beginning on the first day of the retail dealer's new tax year
22 4 until December 31. For that period, the tax credit shall be
22 5 calculated in the same manner as a retail dealer whose tax
22 6 year began on the previous January 1 and who is calculating
22 7 the tax credit on that same December 31.
22 8 5. a. A retail dealer is eligible to claim an ethanol
22 9 promotion tax credit as provided in this section even though
22 10 the retail dealer claims an E=85 gasoline promotion tax credit
22 11 pursuant to section 422.11O for the same tax year and for the
22 12 same ethanol gallonage.
22 13 b. A retail dealer is not eligible to claim an ethanol
22 14 promotion tax credit as provided in this section if the retail
22 15 dealer claims a designated ethanol blended gasoline tax credit
22 16 as provided in section 422.11C.
22 17 6. Any credit in excess of the retail dealer's tax
22 18 liability shall be refunded. In lieu of claiming a refund,
22 19 the retail dealer may elect to have the overpayment shown on
22 20 the retail dealer's final, completed return credited to the
22 21 tax liability for the following tax year.
22 22 7. An individual may claim the tax credit allowed a
22 23 partnership, limited liability company, S corporation, estate,
22 24 or trust electing to have the income taxed directly to the
22 25 individual. The amount claimed by the individual shall be
22 26 based upon the pro rata share of the individual's earnings of
22 27 a partnership, limited liability company, S corporation,
22 28 estate, or trust.
22 29 8. This section is repealed on January 1, 2026.
22 30 Sec. 28. NEW SECTION. 422.11O E=85 GASOLINE PROMOTION
22 31 TAX CREDIT.
22 32 1. As used in this section, unless the context otherwise
22 33 requires:
22 34 a. "E=85 gasoline", "ethanol", "gasoline", "motor fuel
22 35 pump", and "retail dealer" mean the same as defined in section
23 1 214A.1.
23 2 b. "Sell" means to sell on a retail basis.
23 3 c. "Tax credit" means the E=85 gasoline promotion tax
23 4 credit as provided in this section.
23 5 2. The taxes imposed under this division, less the credits
23 6 allowed under sections 422.12 and 422.12B, shall be reduced by
23 7 an E=85 gasoline promotion tax credit for each tax year that
23 8 the taxpayer is eligible to claim under this subsection. In
23 9 order to be eligible, all of the following must apply:
23 10 a. The taxpayer is a retail dealer who sells and dispenses
23 11 E=85 gasoline through a motor fuel pump in the tax year in
23 12 which the tax credit is claimed.
23 13 b. The retail dealer complies with requirements of the
23 14 department to administer this section.
23 15 3. The amount of the tax credit for a retail dealer is
23 16 calculated by multiplying a designated rate by the retail
23 17 dealer's total E=85 gasoline gallonage as provided in sections
23 18 452A.31 and 452A.32. The designated rate is as follows:
23 19 a. For calendar year 2006 or calendar year 2007, twenty=
23 20 five cents.
23 21 b. For calendar year 2008 or calendar year 2009, twenty
23 22 cents.
23 23 c. For calendar year 2010, ten cents.
23 24 d. For calendar year 2011, nine cents.
23 25 e. For calendar year 2012, eight cents.
23 26 f. For calendar year 2013, seven cents.
23 27 g. For calendar year 2014, six cents.
23 28 h. For calendar year 2015, five cents.
23 29 i. For calendar year 2016, four cents.
23 30 j. For calendar year 2017, three cents.
23 31 k. For calendar year 2018, two cents.
23 32 l. For calendar year 2019, one cent.
23 33 4. If a retail dealer's tax year ends prior to December 31
23 34 of a calendar year, the retail dealer may continue to claim
23 35 the tax credit in the retail dealer's following tax year. In
24 1 that case, the tax credit shall be the designated rate
24 2 multiplied by the retail dealer's total E=85 gasoline
24 3 gallonage for the remaining period beginning on the first day
24 4 of the retail dealer's new tax year until the next December
24 5 31. For that remaining period, the tax credit shall be
24 6 calculated in the same manner as a retail dealer whose tax
24 7 year began on the previous January 1 and who is calculating
24 8 the tax credit on that same December 31.
24 9 5. a. A retail dealer is eligible to claim an E=85
24 10 gasoline promotion tax credit as provided in this section even
24 11 though the retail dealer claims an ethanol promotion tax
24 12 credit pursuant to section 422.11N for the same tax year for
24 13 the same ethanol gallonage.
24 14 b. A retail dealer is not eligible to claim an E=85
24 15 gasoline tax credit as provided in this section, if the retail
24 16 dealer claims a designated ethanol blended gasoline tax credit
24 17 as provided in section 422.11C.
24 18 6. Any credit in excess of the retail dealer's tax
24 19 liability shall be refunded. In lieu of claiming a refund,
24 20 the retail dealer may elect to have the overpayment shown on
24 21 the retail dealer's final, completed return credited to the
24 22 tax liability for the following tax year.
24 23 7. An individual may claim the tax credit allowed a
24 24 partnership, limited liability company, S corporation, estate,
24 25 or trust electing to have the income taxed directly to the
24 26 individual. The amount claimed by the individual shall be
24 27 based upon the pro rata share of the individual's earnings of
24 28 a partnership, limited liability company, S corporation,
24 29 estate, or trust.
24 30 8. This section is repealed on January 1, 2020.
24 31 Sec. 29. NEW SECTION. 422.11P BIODIESEL BLENDED FUEL TAX
24 32 CREDIT.
24 33 1. As used in this section, unless the context otherwise
24 34 requires:
24 35 a. "Biodiesel blended fuel", "diesel fuel", and "retail
25 1 dealer" mean the same as defined in section 214A.1.
25 2 b. "Motor fuel pump" means the same as defined in section
25 3 214.1.
25 4 c. "Sell" means to sell on a retail basis.
25 5 d. "Tax credit" means a biodiesel blended fuel tax credit
25 6 as provided in this section.
25 7 2. The taxes imposed under this division, less the credits
25 8 allowed under sections 422.12 and 422.12B, shall be reduced by
25 9 the amount of the biodiesel blended fuel tax credit for each
25 10 tax year that the taxpayer is eligible to claim a tax credit
25 11 under this subsection.
25 12 a. In order to be eligible, all of the following must
25 13 apply:
25 14 (1) The taxpayer is a retail dealer who sells and
25 15 dispenses biodiesel blended fuel through a motor fuel pump in
25 16 the tax year in which the tax credit is claimed.
25 17 (2) Of the total gallons of diesel fuel that the retail
25 18 dealer sells and dispenses through all motor fuel pumps during
25 19 the retail dealer's tax year, fifty percent or more is
25 20 biodiesel blended fuel which meets the requirements of this
25 21 section.
25 22 (3) The retail dealer complies with requirements of the
25 23 department established to administer this section.
25 24 b. The tax credit shall apply to biodiesel blended fuel
25 25 formulated with a minimum percentage of two percent by volume
25 26 of biodiesel, if the formulation meets the standards provided
25 27 in section 214A.2.
25 28 3. The amount of the tax credit is three cents multiplied
25 29 by the total number of gallons of biodiesel blended fuel sold
25 30 and dispensed by the retail dealer through all motor fuel
25 31 pumps operated by the retail dealer during the retail dealer's
25 32 tax year.
25 33 4. Any credit in excess of the retail dealer's tax
25 34 liability shall be refunded. In lieu of claiming a refund,
25 35 the retail dealer may elect to have the overpayment shown on
26 1 the retail dealer's final, completed return credited to the
26 2 tax liability for the following tax year.
26 3 5. An individual may claim the tax credit allowed a
26 4 partnership, limited liability company, S corporation, estate,
26 5 or trust electing to have the income taxed directly to the
26 6 individual. The amount claimed by the individual shall be
26 7 based upon the pro rata share of the individual's earnings of
26 8 the partnership, limited liability company, S corporation,
26 9 estate, or trust.
26 10 6. This section is repealed January 1, 2012.
26 11 Sec. 30. Section 422.33, subsection 11, paragraph a,
26 12 subparagraph (1), Code Supplement 2005, is amended to read as
26 13 follows:
26 14 (1) "Ethanol "E=85 gasoline", "ethanol blended gasoline",
26 15 "gasoline", "metered pump", "motor fuel pump", "retail
26 16 dealer", "retail motor fuel site", and "sell", and "service
26 17 station" mean the same as defined in section 422.11C.
26 18 Sec. 31. Section 422.33, subsection 11, paragraph b,
26 19 subparagraph (2), Code Supplement 2005, is amended to read as
26 20 follows:
26 21 (2) The taxpayer operates at least one service station
26 22 retail motor fuel site at which more than sixty percent of the
26 23 total gallons of gasoline sold and dispensed through one or
26 24 more metered motor fuel pumps by the taxpayer is ethanol
26 25 blended gasoline.
26 26 Sec. 32. Section 422.33, subsection 11, paragraph c, Code
26 27 Supplement 2005, is amended to read as follows:
26 28 c. (1) The tax credit shall be calculated separately for
26 29 each service station retail motor fuel site operated by the
26 30 taxpayer.
26 31 (2) The amount of the tax credit for each eligible service
26 32 station retail motor fuel site is two and one=half cents
26 33 multiplied by the total number of gallons of ethanol blended
26 34 gasoline sold and dispensed through all metered motor fuel
26 35 pumps located at that service station retail motor fuel site
27 1 during the tax year in excess of sixty percent of all gasoline
27 2 sold and dispensed through metered motor fuel pumps at that
27 3 service station retail motor fuel site during the tax year.
27 4 (3) A taxpayer is not eligible to claim a designated
27 5 ethanol blended gasoline tax credit as provided in this
27 6 subsection, if the taxpayer claims any of the following:
27 7 (a) An ethanol promotion tax credit as provided in section
27 8 422.11N or this section.
27 9 (b) An E=85 promotion tax credit as provided in section
27 10 422.11O or this section for the same gallons of ethanol
27 11 blended gasoline.
27 12 Sec. 33. Section 422.33, subsection 11, Code Supplement
27 13 2005, is amended by adding the following new paragraph:
27 14 NEW PARAGRAPH. e. This subsection is repealed on January
27 15 1, 2007.
27 16 Sec. 34. Section 422.33, Code Supplement 2005, is amended
27 17 by adding the following new subsections:
27 18 NEW SUBSECTION. 11A. The taxes imposed under this
27 19 division shall be reduced by an ethanol promotion tax credit
27 20 for each tax year that the taxpayer is eligible to claim the
27 21 tax credit under this subsection.
27 22 a. The taxpayer shall claim the tax credit in the same
27 23 manner as provided in section 422.11N. The taxpayer may claim
27 24 the tax credit according to the same requirements, for the
27 25 same amount, and calculated in the same manner, as provided
27 26 for the ethanol promotion tax credit pursuant to section
27 27 422.11N.
27 28 b. Any ethanol promotion tax credit which is in excess of
27 29 the taxpayer's tax liability shall be refunded or may be shown
27 30 on the taxpayer's final, completed return credited to the tax
27 31 liability for the following tax year in the same manner as
27 32 provided in section 422.11N.
27 33 c. This subsection is repealed on January 1, 2026.
27 34 NEW SUBSECTION. 11B. The taxes imposed under this
27 35 division shall be reduced by an E=85 gasoline promotion tax
28 1 credit for each tax year that the taxpayer is eligible to
28 2 claim the tax credit under this subsection.
28 3 a. The taxpayer shall claim the tax credit in the same
28 4 manner as provided in section 422.11O. The taxpayer may claim
28 5 the tax credit according to the same requirements, for the
28 6 same amount, and calculated in the same manner, as provided
28 7 for the E=85 gasoline promotion tax credit pursuant to section
28 8 422.11O.
28 9 b. Any E=85 gasoline promotion tax credit which is in
28 10 excess of the taxpayer's tax liability shall be refunded or
28 11 may be shown on the taxpayer's final, completed return
28 12 credited to the tax liability for the following tax year in
28 13 the same manner as provided in section 422.11O.
28 14 c. This subsection is repealed on January 1, 2020.
28 15 Sec. 35. Section 422.33, Code Supplement 2005, is amended
28 16 by adding the following new subsection:
28 17 NEW SUBSECTION. 11C. The taxes imposed under this
28 18 division shall be reduced by a biodiesel blended fuel tax
28 19 credit for each tax year that the taxpayer is eligible to
28 20 claim the tax credit under this subsection.
28 21 a. The taxpayer may claim the biodiesel blended fuel tax
28 22 credit according to the same requirements, for the same
28 23 amount, and calculated in the same manner, as provided for the
28 24 biodiesel blended fuel tax credit pursuant to section 422.11P.
28 25 b. Any biodiesel blended fuel tax credit which is in
28 26 excess of the taxpayer's tax liability shall be refunded or
28 27 may be shown on the taxpayer's final, completed return
28 28 credited to the tax liability for the following tax year in
28 29 the same manner as provided in section 422.11P.
28 30 c. This subsection is repealed on January 1, 2012.
28 31 Sec. 36. RETROACTIVE APPLICABILITY DATE. Sections
28 32 422.11N, 422,11O, and 422.11P, as enacted in this Act, and
28 33 section 422.33, subsections 11A, 11B, and 11C, as enacted in
28 34 this Act, apply retroactively to tax years beginning on or
28 35 after January 1, 2006.
29 1 Sec. 37. TAX CREDIT AVAILABILITY.
29 2 1. For a retail dealer who may claim a designated ethanol
29 3 blended gasoline tax credit under section 422.11C or 422.33,
29 4 subsection 11, as amended by this Act, in calendar year 2006
29 5 and whose tax year ends prior to December 31, 2006, the retail
29 6 dealer may continue to claim the tax credit in the retail
29 7 dealer's following tax year. In that case, the tax credit
29 8 shall be calculated in the same manner as provided in section
29 9 422.11C or 422.33, subsection 11, as amended by this Act, for
29 10 the remaining period beginning on the first day of the retail
29 11 dealer's new tax year until December 31, 2006. For that
29 12 remaining period, the tax credit shall be calculated in the
29 13 same manner as a retail dealer whose tax year began on the
29 14 previous January 1 and who is calculating the tax credit on
29 15 December 31, 2006.
29 16 2. For a retail dealer who may claim an ethanol promotion
29 17 tax credit under section 422.11N or 422.33, subsection 11A, as
29 18 enacted in this Act, in calendar year 2025 and whose tax year
29 19 ends prior to December 31, 2025, the retail dealer may
29 20 continue to claim the tax credit in the retail dealer's
29 21 following tax year. In that case, the tax credit shall be
29 22 calculated in the same manner as provided in section 422.11N
29 23 or 422.33, subsection 11A, as enacted in this Act, for the
29 24 remaining period beginning on the first day of the retail
29 25 dealer's new tax year until December 31, 2025. For that
29 26 remaining period, the tax credit shall be calculated in the
29 27 same manner as a retail dealer whose tax year began on the
29 28 previous January 1 and who is calculating the tax credit on
29 29 December 31, 2025.
29 30 3. For a retail dealer who may claim an E=85 gasoline
29 31 promotion tax credit under section 422.11O or 422.33,
29 32 subsection 11B, as enacted in this Act, in calendar year 2019
29 33 and whose tax year ends prior to December 31, 2019, the retail
29 34 dealer may continue to claim the tax credit in the retail
29 35 dealer's following tax year. In that case, the tax credit
30 1 shall be calculated in the same manner as provided in section
30 2 422.11O or 422.33, subsection 11B, as enacted in this Act, for
30 3 the remaining period beginning on the first day of the retail
30 4 dealer's new tax year until December 31, 2019. For that
30 5 remaining period, the tax credit shall be calculated in the
30 6 same manner as a retail dealer whose tax year began on the
30 7 previous January 1 and who is calculating the tax credit on
30 8 December 31, 2019.
30 9 4. For a retail dealer who may claim a biodiesel blended
30 10 fuel tax credit under section 422.11P or 422.33, subsection
30 11 11C, as enacted in this Act, in calendar year 2006 and whose
30 12 tax year ends before December 31, 2006, the retail dealer may
30 13 claim the tax credit during the period beginning January 1,
30 14 2006, and ending on the last day of the retail dealer's tax
30 15 year, if of the total gallons of diesel fuel that the retail
30 16 dealer sells and dispenses through all motor fuel pumps during
30 17 that period, fifty percent or more is biodiesel blended fuel
30 18 which meets the requirements of section 422.11P or 422.33,
30 19 subsection 11C, as enacted in this Act.
30 20 5. For a retail dealer who may claim a biodiesel blended
30 21 fuel tax credit under section 422.11P or 422.33, subsection
30 22 11C, as enacted in this Act, in calendar year 2011 and whose
30 23 tax year ends prior to December 31, 2011, the retail dealer
30 24 may continue to claim the tax credit in the retail dealer's
30 25 following tax year. In that case, the tax credit shall be
30 26 calculated in the same manner as provided in section 422.11P
30 27 or 422.33, subsection 11C, as enacted in this Act, for the
30 28 remaining period beginning on the first day of the retail
30 29 dealer's new tax year until December 31, 2011. For that
30 30 remaining period, the tax credit shall be calculated in the
30 31 same manner as a retail dealer whose tax year began on the
30 32 previous January 1 and who is calculating the tax credit on
30 33 December 31, 2011.
30 34 DIVISION IV
30 35 PETROLEUM REPLACEMENT INITIATIVE
31 1 Sec. 38. Section 452A.2, subsection 2, Code Supplement
31 2 2005, is amended by striking the subsection and inserting in
31 3 lieu thereof the following:
31 4 2. "Biofuel" means the same as defined in section 214A.1.
31 5 Sec. 39. Section 452A.2, Code Supplement 2005, is amended
31 6 by adding the following new subsections:
31 7 NEW SUBSECTION. 1A. "Biodiesel" means the same as defined
31 8 in section 214A.1.
31 9 NEW SUBSECTION. 1B. "Biodiesel blended fuel" means the
31 10 same as defined in section 214A.1.
31 11 NEW SUBSECTION. 9A. "E=85 gasoline" means the same as
31 12 defined in section 214A.1.
31 13 NEW SUBSECTION. 10A. "Ethanol" means the same as defined
31 14 in section 214A.1.
31 15 NEW SUBSECTION. 13A. "Gasoline" means the same as defined
31 16 in section 214A.1.
31 17 NEW SUBSECTION. 19A. "Motor fuel pump" means the same as
31 18 defined in section 214.1.
31 19 NEW SUBSECTION. 20A. "Nonethanol blended gasoline" means
31 20 gasoline other than ethanol blended gasoline.
31 21 NEW SUBSECTION. 24A. "Retail dealer" means the same as
31 22 defined in section 214A.1.
31 23 NEW SUBSECTION. 24B. "Retail motor fuel site" means the
31 24 same as defined in section 214A.1.
31 25 Sec. 40. Section 452A.2, subsection 11, Code Supplement
31 26 2005, is amended to read as follows:
31 27 11. "Ethanol blended gasoline" means motor fuel containing
31 28 at least ten percent alcohol distilled from cereal grains the
31 29 same as defined in section 214A.1.
31 30 Sec. 41. Section 452A.2, subsection 19, unnumbered
31 31 paragraph 1, Code Supplement 2005, is amended to read as
31 32 follows:
31 33 "Motor fuel" means both motor fuel as defined in section
31 34 214A.1 and includes all of the following:
31 35 Sec. 42. Section 452A.3, subsection 1A, Code 2005, is
32 1 amended by striking the subsection and inserting in lieu
32 2 thereof the following:
32 3 1A. Except as otherwise provided in this section and in
32 4 this division, after June 30, 2007, this subsection shall
32 5 apply to the excise tax imposed on each gallon of gasoline
32 6 used for any purpose for the privilege of operating motor
32 7 vehicles in this state. The amount of the excise tax is the
32 8 applicable rate multiplied by each gallon of ethanol blended
32 9 gasoline and nonethanol blended gasoline.
32 10 a. The applicable rate is the base rate of twenty cents
32 11 for ethanol blended gasoline and nonethanol blended gasoline.
32 12 b. By March 1, following each key determination period as
32 13 provided in section 452A.31, the department shall determine
32 14 whether the biofuel percentage threshold has been met as
32 15 provided in section 452A.34.
32 16 (1) If the biofuel threshold percentage has been met, the
32 17 applicable rate of the excise tax is the base rate as provided
32 18 in paragraph "a".
32 19 (2) If the biofuel threshold percentage has not been met,
32 20 the applicable rate of the excise tax is a special rate.
32 21 (a) The special rate is calculated as follows:
32 22 (i) Multiply the biofuel threshold disparity factor for
32 23 that key determination period as provided in section 452A.34
32 24 by two cents to obtain the resulting product.
32 25 (ii) Add the resulting product to the base rate as if the
32 26 biofuel threshold percentage had been met as provided in
32 27 paragraph "a" to obtain the resulting sum which is the special
32 28 rate.
32 29 (b) The special rate shall be effective as follows:
32 30 (i) If the biofuel threshold percentage has not been met
32 31 during the first key determination period, the special rate is
32 32 effective beginning on July 1, 2010, and ending on June 30,
32 33 2015.
32 34 (ii) If the biofuel threshold percentage has not been met
32 35 during the second key determination period, the special rate
33 1 is effective beginning on July 1, 2015, and ending on June 30,
33 2 2020.
33 3 (iii) If the biofuel threshold percentage has not been met
33 4 during the third key determination period, the special rate is
33 5 effective beginning on July 1, 2020, and ending on June 30,
33 6 2025.
33 7 (iv) If the biofuel threshold percentage has not been met
33 8 during the fourth key determination period, the special rate
33 9 is effective on and after July 1, 2025.
33 10 Sec. 43. NEW SECTION. 452A.31 SPECIAL TERMS.
33 11 For purposes of this division, all of the following shall
33 12 apply:
33 13 1. a. A determination period is any twelve=month period
33 14 beginning on January 1 and ending on December 31.
33 15 b. A key determination period and key determination date
33 16 are as follows:
33 17 (1) For the first key determination period, the period
33 18 beginning January 1 and ending December 31, 2009, and for the
33 19 first key determination date, March 1, 2010.
33 20 (2) For the second key determination period, the period
33 21 beginning January 1 and ending December 31, 2014, and for the
33 22 second key determination date, March 1, 2015.
33 23 (3) For the third key determination period, the period
33 24 beginning January 1 and ending December 31, 2019, and for the
33 25 third key determination date, March 1, 2020.
33 26 (4) For the fourth key determination period, the period
33 27 beginning January 1 and ending December 31, 2024, and for the
33 28 fourth key determination date, March 1, 2025.
33 29 2. a. A retail dealer's total gasoline gallonage is the
33 30 total number of gallons of gasoline, which the retail dealer
33 31 sells and dispenses from all motor fuel pumps operated by the
33 32 retail dealer in this state during a twelve=month period
33 33 beginning January 1 and ending December 31. The retail
33 34 dealer's total gasoline gallonage is divided into the
33 35 following classifications:
34 1 (1) The total ethanol blended gasoline gallonage which is
34 2 the retail dealer's total number of gallons of ethanol blended
34 3 gasoline and which includes all of the following
34 4 subclassifications:
34 5 (a) The total E=xx gasoline gallonage which is the total
34 6 number of gallons of ethanol blended gasoline other than E=85
34 7 gasoline.
34 8 (b) The total E=85 gasoline gallonage which is the total
34 9 number of gallons of E=85 gasoline.
34 10 (2) The total nonblended gasoline gallonage which is the
34 11 total number of gallons of nonblended ethanol gasoline.
34 12 b. A retail dealer's total ethanol gallonage is the total
34 13 number of gallons of ethanol which is a component of ethanol
34 14 blended gasoline which the retail dealer sells and dispenses
34 15 from motor fuel pumps as provided in paragraph "a" during a
34 16 twelve=month period beginning January 1 and ending December
34 17 31.
34 18 3. a. A retail dealer's total diesel fuel gallonage is
34 19 the total number of gallons of diesel fuel, which the retail
34 20 dealer sells and dispenses from all motor fuel pumps operated
34 21 by the retail dealer in this state during a twelve=month
34 22 period beginning January 1 and ending December 31. The retail
34 23 dealer's total diesel fuel gallonage is divided into the
34 24 following classifications:
34 25 (1) The total biodiesel blended fuel gallonage which is
34 26 the retail dealer's total number of gallons of biodiesel
34 27 blended fuel.
34 28 (2) The total nonblended diesel fuel gallonage which is
34 29 the total number of gallons of diesel fuel which is not
34 30 biodiesel or biodiesel blended fuel.
34 31 b. A retail dealer's total biodiesel gallonage is the
34 32 total number of gallons of biodiesel which may or may not be a
34 33 component of biodiesel blended fuel, and which the retail
34 34 dealer sells and dispenses from motor fuel pumps as provided
34 35 in paragraph "a" during a twelve=month period beginning
35 1 January 1 and ending December 31.
35 2 4. a. The aggregate gasoline gallonage is the total
35 3 number of gallons of gasoline, which all retail dealers sell
35 4 and dispense from all motor fuel pumps operated by the retail
35 5 dealers in this state during a twelve=month period beginning
35 6 January 1 and ending December 31. The aggregate total
35 7 gasoline gallonage is divided into the following
35 8 classifications:
35 9 (1) The aggregate ethanol blended gasoline gallonage which
35 10 is the aggregate total number of gallons of ethanol blended
35 11 gasoline and which includes all of the following
35 12 subclassifications:
35 13 (a) The aggregate E=xx gasoline gallonage which is the
35 14 aggregate total number of gallons of ethanol blended gasoline
35 15 other than E=85 gasoline.
35 16 (b) The aggregate E=85 gasoline gallonage which is the
35 17 aggregate total number of gallons of E=85 gasoline.
35 18 (2) The aggregate total nonblended gasoline gallonage,
35 19 which is the aggregate total number of gallons of nonblended
35 20 ethanol gasoline.
35 21 b. The aggregate ethanol gallonage is the total number of
35 22 gallons of ethanol which is a component of ethanol blended
35 23 gasoline which all retail dealers sell and dispense from motor
35 24 fuel pumps as provided in paragraph "a" during a twelve=month
35 25 period beginning January 1 and ending December 31.
35 26 5. a. The aggregate diesel fuel gallonage is the total
35 27 number of gallons of diesel fuel, which all retail dealers
35 28 sell and dispense from all motor fuel pumps operated by the
35 29 retail dealers in this state during a twelve=month period
35 30 beginning January 1 and ending December 31. The aggregate
35 31 total diesel fuel gallonage is divided into the following
35 32 classifications:
35 33 (1) The aggregate biodiesel blended fuel gallonage which
35 34 is the aggregate number of gallons of biodiesel blended fuel.
35 35 (2) The aggregate nonblended diesel fuel gallonage which
36 1 is the aggregate number of gallons of diesel fuel which is not
36 2 biodiesel or biodiesel blended fuel.
36 3 b. The aggregate biodiesel gallonage is the total number
36 4 of gallons of biodiesel which may or may not be a component of
36 5 biodiesel blended fuel, and which all retail dealers sell and
36 6 dispense from motor fuel pumps as provided in paragraph "a"
36 7 during a twelve=month period beginning January 1 and ending
36 8 December 31.
36 9 6. a. The aggregate ethanol distribution percentage is
36 10 the aggregate ethanol gallonage expressed as a percentage of
36 11 the aggregate gasoline gallonage calculated for a twelve=
36 12 month period beginning January 1 and ending December 31.
36 13 b. The aggregate per gallon distribution percentage which
36 14 is the aggregate ethanol blended gasoline gallonage expressed
36 15 as a percentage of the aggregate gasoline gallonage.
36 16 7. a. The aggregate biodiesel distribution percentage is
36 17 the aggregate biodiesel gallonage expressed as a percentage of
36 18 the aggregate diesel fuel gallonage calculated for a twelve=
36 19 month period beginning January 1 and ending December 31.
36 20 b. The aggregate per gallon distribution percentage is the
36 21 aggregate biodiesel blended fuel gallonage expressed as a
36 22 percentage of the aggregate diesel fuel gallonage.
36 23 8. The aggregate biofuel distribution percentage is the
36 24 sum of the aggregate ethanol distribution percentage plus the
36 25 aggregate biodiesel distribution percentage expressed as a
36 26 percentage of the sum of the aggregate gasoline gallonage plus
36 27 the aggregate diesel fuel gallonage.
36 28 9. a. The biofuel threshold percentage is the aggregate
36 29 biofuel distribution percentage required to be met during a
36 30 key determination period as provided in section 452A.34.
36 31 b. The biofuel threshold percentage disparity is a
36 32 positive percentage difference obtained by taking the minuend
36 33 which is the aggregate biofuel distribution percentage and
36 34 subtracting from it the subtrahend which is the biofuel
36 35 threshold percentage, as calculated for a key determination
37 1 period as provided in section 452A.34.
37 2 c. The biofuel threshold disparity factor is the biofuel
37 3 threshold percentage disparity expressed as a positive number
37 4 rounded to the nearest tenth of a whole number.
37 5 Sec. 44. NEW SECTION. 452A.32 SCHEDULE FOR AVERAGING
37 6 BIOFUEL CONTENT IN MOTOR FUEL.
37 7 1. The department shall establish a schedule listing the
37 8 average amount of ethanol contained in E=85 gasoline as
37 9 defined in section 214A.1, for use by a retail dealer in
37 10 calculating the retail dealer's total ethanol gallonage, as
37 11 provided in section 452A.31. In establishing the schedule,
37 12 the department shall assume that a retail dealer begins
37 13 selling and dispensing E=85 gasoline from a motor fuel pump on
37 14 the first day of a month and ceases selling and distributing
37 15 E=85 gasoline on the last day of a month.
37 16 2. The department shall establish a schedule listing the
37 17 average amount of biodiesel contained in biodiesel blended
37 18 fuel as defined in section 214A.1, for use by a retail dealer
37 19 in calculating the retail dealer's total biodiesel gallonage,
37 20 as provided in section 452A.31. In establishing the schedule,
37 21 the department shall assume that a retail dealer begins
37 22 selling and dispensing biodiesel blended fuel from a motor
37 23 fuel pump on the first day of a month and ceases selling and
37 24 distributing biodiesel blended fuel on the last day of a
37 25 month.
37 26 Sec. 45. NEW SECTION. 452A.33 REPORTING REQUIREMENTS.
37 27 1. a. Each retail dealer shall report its total motor
37 28 fuel gallonage for a determination period as follows:
37 29 (1) Its total gasoline gallonage and its total ethanol
37 30 gallonage, including for each classification and
37 31 subclassification as provided in section 452A.31.
37 32 (2) Its total diesel fuel gallonage and its total
37 33 biodiesel gallonage, including for each classification and
37 34 subclassification as provided in section 452A.31.
37 35 b. The retail dealer shall prepare and submit the report
38 1 in a manner and according to procedures required by the
38 2 department. The department may require that retail dealers
38 3 report to the department on an annual, quarterly, or monthly
38 4 basis.
38 5 2. On or before February 1 the department shall deliver a
38 6 report to the governor and the legislative services agency.
38 7 The report shall compile information reported by retail
38 8 dealers to the department as provided in this section and
38 9 shall at least include all of the following:
38 10 a. (1) The aggregate gasoline gallonage for the previous
38 11 determination period, including for all classifications and
38 12 subclassifications as provided in section 452A.31.
38 13 (2) The aggregate diesel fuel gallonage for the previous
38 14 determination period, including for all classifications and
38 15 subclassifications as provided in section 452A.31.
38 16 b. (1) The aggregate ethanol distribution percentage for
38 17 the previous determination period.
38 18 (2) The aggregate biodiesel distribution percentage for
38 19 the previous determination period.
38 20 c. (1) The projected aggregate gasoline gallonage, the
38 21 aggregate ethanol gallonage, and the projected aggregate
38 22 ethanol distribution percentage, for each future key
38 23 determination period as provided in section 452A.34.
38 24 (2) The projected aggregate diesel fuel gallonage, the
38 25 projected aggregate biodiesel gallonage, and the projected
38 26 aggregate biodiesel distribution percentage, for each future
38 27 key determination period as provided in section 452A.34.
38 28 (3) The projected aggregate biofuel gallonage and the
38 29 projected aggregate biofuel distribution percentage, for each
38 30 future key determination period as provided in section
38 31 452A.34.
38 32 d. The biofuel threshold percentage required for the next
38 33 key determination period as provided in section 452A.34 and
38 34 any projected biofuel threshold percentage disparity,
38 35 including the amount of additional biofuel required to be sold
39 1 and dispensed from all motor fuel pumps located at all retail
39 2 motor fuel sites in this state in order to meet the next
39 3 biofuel threshold percentage.
39 4 3. On or before February 1 of each year, the state
39 5 department of transportation shall deliver a report to the
39 6 governor and the legislative services agency providing
39 7 information regarding flexible fuel vehicles registered in
39 8 this state during the previous determination period. The
39 9 information shall state all of the following:
39 10 a. The aggregate number of flexible fuel vehicles.
39 11 b. Of the aggregate number of flexible fuel vehicles, all
39 12 of the following:
39 13 (1) The number of flexible fuel vehicles according to the
39 14 year of manufacture.
39 15 (2) The number of passenger vehicles and the number of
39 16 passenger vehicles according to the year of manufacture.
39 17 (3) The number of light pickup trucks and the number of
39 18 light pickup trucks according to the year of manufacture.
39 19 Sec. 46. NEW SECTION. 452A.34 BIOFUEL THRESHOLD
39 20 PERCENTAGES.
39 21 1. The department shall determine whether a biofuel
39 22 threshold percentage has been met on the following key
39 23 determination dates:
39 24 a. On March 1, 2010, the department must determine that
39 25 the aggregate distribution percentage was at least ten percent
39 26 in order to meet the first biofuel threshold percentage for
39 27 the key determination period beginning on January 1, 2009, and
39 28 ending December 31, 2009.
39 29 b. On March 1, 2015, the department must determine that
39 30 the aggregate distribution percentage was at least fifteen
39 31 percent in order to meet the second biofuel threshold
39 32 percentage for the key determination period beginning on
39 33 January 1, 2014, and ending December 31, 2014.
39 34 c. On March 1, 2020, the department must determine that
39 35 the aggregate distribution percentage was at least twenty
40 1 percent in order to meet the third biofuel threshold
40 2 percentage for the key determination period beginning on
40 3 January 1, 2019, and ending December 31, 2019.
40 4 d. On March 1, 2025, the department must determine that
40 5 the aggregate distribution percentage was at least twenty=five
40 6 percent in order to meet the fourth biofuel threshold
40 7 percentage for the key determination period beginning on
40 8 January 1, 2024, and ending December 31, 2024.
40 9 2. If on a key determination date, a biofuel threshold
40 10 percentage has not been met, the department shall calculate
40 11 the biofuel threshold percentage disparity and the resulting
40 12 biofuel threshold disparity factor as provided in section
40 13 452A.31 which shall be used to determine the special rate of
40 14 the excise tax imposed on each gallon of nonethanol blended
40 15 gasoline as provided in section 452A.3.
40 16 DIVISION V
40 17 COORDINATING PROVISIONS == GOVERNMENT VEHICLES
40 18 Sec. 47. Section 8A.362, subsection 3, Code 2005, is
40 19 amended to read as follows:
40 20 3. a. The director shall provide for a record system for
40 21 the keeping of records of the total number of miles state=
40 22 owned motor vehicles are driven and the per=mile cost of
40 23 operation of each motor vehicle. Every state officer or
40 24 employee shall keep a record book to be furnished by the
40 25 director in which the officer or employee shall enter all
40 26 purchases of gasoline, lubricating oil, grease, and other
40 27 incidental expense in the operation of the motor vehicle
40 28 assigned to the officer or employee, giving the quantity and
40 29 price of each purchase, including the cost and nature of all
40 30 repairs on the motor vehicle. Each operator of a state=owned
40 31 motor vehicle shall promptly prepare a report at the end of
40 32 each month on forms furnished by the director and forwarded to
40 33 the director, giving the information the director may request
40 34 in the report. Each month the director shall compile the
40 35 costs and mileage of state=owned motor vehicles from the
41 1 reports and keep a cost history for each motor vehicle and the
41 2 costs shall be reduced to a cost=per=mile basis for each motor
41 3 vehicle. The director shall call to the attention of an
41 4 elected official or the head of any state agency to which a
41 5 motor vehicle has been assigned any evidence of the
41 6 mishandling or misuse of a state=owned motor vehicle which is
41 7 called to the director's attention.
41 8 b. A motor vehicle operated under this subsection shall
41 9 not operate on gasoline other than ethanol blended gasoline
41 10 blended with at least ten percent ethanol as defined in
41 11 section 214A.1, unless under emergency circumstances. A
41 12 state=issued credit card used to purchase gasoline shall not
41 13 be valid to purchase gasoline other than ethanol blended
41 14 gasoline blended with at least ten percent ethanol, if
41 15 commercially available. The motor vehicle shall also be
41 16 affixed with a brightly visible sticker which notifies the
41 17 traveling public that the motor vehicle is being operated on
41 18 ethanol blended gasoline blended with ethanol. However, the
41 19 sticker is not required to be affixed to an unmarked vehicle
41 20 used for purposes of providing law enforcement or security.
41 21 Sec. 48. Section 8A.362, subsection 5, paragraph a,
41 22 subparagraphs (1) and (2), Code 2005, are amended to read as
41 23 follows:
41 24 (1) A fuel blended with not more than fifteen percent E=85
41 25 gasoline and at least eighty=five percent ethanol as defined
41 26 in section 214A.1.
41 27 (2) A B=20 biodiesel blended fuel which is a mixture of
41 28 diesel fuel and processed soybean oil as defined in section
41 29 214A.1. At least twenty percent of the mixed fuel by volume
41 30 must be processed soybean oil.
41 31 Sec. 49. Section 216B.3, subsection 16, paragraph a, Code
41 32 2005, is amended to read as follows:
41 33 a. A motor vehicle purchased by the commission shall not
41 34 operate on gasoline other than ethanol blended gasoline
41 35 blended with at least ten percent ethanol. A state issued
42 1 credit card used to purchase gasoline shall not be valid to
42 2 purchase gasoline other than ethanol blended gasoline blended
42 3 with at least ten percent ethanol. The motor vehicle shall
42 4 also be affixed with a brightly visible sticker which notifies
42 5 the traveling public that the motor vehicle is being operated
42 6 on ethanol blended gasoline blended with ethanol. However,
42 7 the sticker is not required to be affixed to an unmarked
42 8 vehicle used for purposes of providing law enforcement or
42 9 security.
42 10 Sec. 50. Section 216B.3, subsection 16, paragraph b,
42 11 subparagraph (1), subparagraph subdivisions (a) and (b), Code
42 12 2005, are amended to read as follows:
42 13 (a) A fuel blended with not more than fifteen percent E=85
42 14 gasoline and at least eighty=five percent ethanol as defined
42 15 in section 214A.1.
42 16 (b) A B=20 biodiesel blended fuel which is a mixture of
42 17 diesel fuel and processed soybean oil as defined in section
42 18 214A.1. At least twenty percent of the mixed fuel by volume
42 19 must be processed soybean oil.
42 20 Sec. 51. Section 260C.19A, subsection 1, Code 2005, is
42 21 amended to read as follows:
42 22 1. A motor vehicle purchased by or used under the
42 23 direction of the board of directors to provide services to a
42 24 merged area shall not operate on gasoline other than ethanol
42 25 blended gasoline blended with at least ten percent ethanol as
42 26 defined in section 214A.1. The motor vehicle shall also be
42 27 affixed with a brightly visible sticker which notifies the
42 28 traveling public that the motor vehicle is being operated on
42 29 ethanol blended gasoline blended with ethanol. However, the
42 30 sticker is not required to be affixed to an unmarked vehicle
42 31 used for purposes of providing law enforcement or security.
42 32 Sec. 52. Section 260C.19A, subsection 2, paragraph a,
42 33 subparagraphs (1) and (2), Code 2005, are amended to read as
42 34 follows:
42 35 (1) A fuel blended with not more than fifteen percent E=85
43 1 gasoline and at least eighty=five percent ethanol as defined
43 2 in section 214A.1.
43 3 (2) A B=20 biodiesel blended fuel which is a mixture of
43 4 diesel fuel and processed soybean oil as defined in section
43 5 214A.1. At least twenty percent of the mixed fuel by volume
43 6 must be processed soybean oil.
43 7 Sec. 53. Section 262.25A, subsection 2, Code 2005, is
43 8 amended to read as follows:
43 9 2. A motor vehicle purchased by the institutions shall not
43 10 operate on gasoline other than gasoline blended with at least
43 11 ten percent ethanol. A state=issued credit card used to
43 12 purchase gasoline shall not be valid to purchase gasoline
43 13 other than ethanol blended gasoline blended with at least ten
43 14 percent ethanol as defined in section 214A.1. The motor
43 15 vehicle shall also be affixed with a brightly visible sticker
43 16 which notifies the traveling public that the motor vehicle is
43 17 being operated on ethanol blended gasoline blended with
43 18 ethanol. However, the sticker is not required to be affixed
43 19 to an unmarked vehicle used for purposes of providing law
43 20 enforcement or security.
43 21 Sec. 54. Section 262.25A, subsection 3, paragraph a,
43 22 subparagraphs (1) and (2), Code 2005, are amended to read as
43 23 follows:
43 24 (1) A fuel blended with not more than fifteen percent E=85
43 25 gasoline and at least eighty=five percent ethanol as defined
43 26 in section 214A.1.
43 27 (2) A B=20 biodiesel blended fuel which is a mixture of
43 28 processed soybean oil and diesel fuel as defined in section
43 29 214A.1. At least twenty percent of the fuel by volume must be
43 30 processed soybean oil.
43 31 Sec. 55. Section 279.34, Code 2005, is amended to read as
43 32 follows:
43 33 279.34 MOTOR VEHICLES REQUIRED TO OPERATE ON ETHANOL=
43 34 BLENDED ETHANOL BLENDED GASOLINE.
43 35 A motor vehicle purchased by or used under the direction of
44 1 the board of directors to provide services to a school
44 2 corporation shall not, on or after January 1, 1993, operate on
44 3 gasoline other than ethanol blended gasoline blended with at
44 4 least ten percent ethanol. The motor vehicle shall also be
44 5 affixed with a brightly visible sticker which notifies the
44 6 traveling public that the motor vehicle is being operated on
44 7 ethanol blended gasoline blended with ethanol. However, the
44 8 sticker is not required to be affixed to an unmarked vehicle
44 9 used for purposes of providing law enforcement or security.
44 10 Sec. 56. Section 307.21, subsection 4, paragraph d, Code
44 11 2005, is amended to read as follows:
44 12 d. A motor vehicle purchased by the administrator shall
44 13 not operate on gasoline other than ethanol blended gasoline
44 14 blended with at least ten percent ethanol as defined in
44 15 section 214A.1. A state=issued credit card used to purchase
44 16 gasoline shall not be valid to purchase gasoline other than
44 17 ethanol blended gasoline blended with at least ten percent
44 18 ethanol. The motor vehicle shall also be affixed with a
44 19 brightly visible sticker which notifies the traveling public
44 20 that the motor vehicle is being operated on ethanol blended
44 21 gasoline blended with ethanol. However, the sticker is not
44 22 required to be affixed to an unmarked vehicle used for
44 23 purposes of providing law enforcement or security.
44 24 Sec. 57. Section 307.21, subsection 5, paragraph a,
44 25 subparagraphs (1) and (2), Code 2005, are amended to read as
44 26 follows:
44 27 (1) A fuel blended with not more than fifteen percent E=85
44 28 gasoline and at least eighty=five percent ethanol as defined
44 29 in section 214A.1.
44 30 (2) A B=20 biodiesel blended fuel which is a mixture of
44 31 processed soybean oil and diesel fuel as defined in section
44 32 214A.1. At least twenty percent of the fuel by volume must be
44 33 processed soybean oil.
44 34 Sec. 58. Section 331.908, Code 2005, is amended to read as
44 35 follows:
45 1 331.908 MOTOR VEHICLES REQUIRED TO OPERATE ON ETHANOL=
45 2 BLENDED ETHANOL BLENDED GASOLINE.
45 3 A motor vehicle purchased or used by a county to provide
45 4 county services shall not, on or after January 1, 1993,
45 5 operate on gasoline other than ethanol blended gasoline
45 6 blended with at least ten percent ethanol as defined in
45 7 section 214A.1. The motor vehicle shall also be affixed with
45 8 a brightly visible sticker which notifies the traveling public
45 9 that the motor vehicle is being operated on ethanol blended
45 10 gasoline blended with ethanol. However, the sticker is not
45 11 required to be affixed to an unmarked vehicle used for
45 12 purposes of providing law enforcement or security.
45 13 Sec. 59. Section 364.20, Code 2005, is amended to read as
45 14 follows:
45 15 364.20 MOTOR VEHICLES REQUIRED TO OPERATE ON ETHANOL=
45 16 BLENDED ETHANOL BLENDED GASOLINE.
45 17 A motor vehicle purchased or used by a city to provide city
45 18 services shall not, on or after January 1, 1993, operate on
45 19 gasoline other than ethanol blended gasoline blended with at
45 20 least ten percent ethanol as defined in section 214A.1. The
45 21 motor vehicle shall also be affixed with a brightly visible
45 22 sticker which notifies the traveling public that the motor
45 23 vehicle is being operated on ethanol blended gasoline blended
45 24 with ethanol. However, the sticker is not required to be
45 25 affixed to an unmarked vehicle used for purposes of providing
45 26 law enforcement or security.
45 27 Sec. 60. Section 904.312A, subsection 1, Code 2005, is
45 28 amended to read as follows:
45 29 1. A motor vehicle purchased by the department shall not
45 30 operate on gasoline other than ethanol blended gasoline
45 31 blended with at least ten percent ethanol as defined in
45 32 section 214A.1. A state=issued credit card used to purchase
45 33 gasoline shall not be valid to purchase gasoline other than
45 34 ethanol blended gasoline blended with at least ten percent
45 35 ethanol. The motor vehicle shall also be affixed with a
46 1 brightly visible sticker which notifies the traveling public
46 2 that the motor vehicle is being operated on ethanol blended
46 3 gasoline blended with ethanol. However, the sticker is not
46 4 required to be affixed to an unmarked vehicle used for
46 5 purposes of providing law enforcement or security.
46 6 Sec. 61. Section 904.312A, subsection 2, paragraph a,
46 7 subparagraphs (1) and (2), Code 2005, are amended to read as
46 8 follows:
46 9 (1) A fuel blended with not more than fifteen percent E=85
46 10 gasoline and at least eighty=five percent ethanol as defined
46 11 in section 214A.1.
46 12 (2) A B=20 biodiesel blended fuel which is a mixture of
46 13 diesel fuel and processed soybean oil as defined in section
46 14 214A.1. At least twenty percent of the mixed fuel by volume
46 15 must be processed soybean oil.
46 16 DIVISION VI
46 17 COORDINATING PROVISIONS == MISCELLANEOUS
46 18 Sec. 62. Section 15.401, Code Supplement 2005, is amended
46 19 to read as follows:
46 20 15.401 E=85 BLENDED GASOLINE RENEWABLE FUELS.
46 21 1. As used in this section, unless the context otherwise
46 22 requires, "biodiesel", "biodiesel blended fuel", "E=85
46 23 gasoline", and "retail motor fuel site" mean the same as
46 24 defined in section 214A.1.
46 25 2. The department shall provide a cost=share program for
46 26 financial incentives for the installation or conversion of
46 27 infrastructure used by service stations retail motor fuel
46 28 sites to do all of the following:
46 29 a. sell Sell and dispense E=85 blended gasoline and for
46 30 the installation or conversion of.
46 31 b. Install or convert infrastructure required to establish
46 32 on=site and off=site terminal facilities that store biodiesel
46 33 or biodiesel blended fuel for distribution to service stations
46 34 retail motor fuel sites.
46 35 3. The department shall provide for an addition of at
47 1 least thirty new or converted E=85 gasoline retail outlets and
47 2 four new or converted on=site or off=site terminal facilities
47 3 with a maximum expenditure of three hundred twenty=five
47 4 thousand dollars per year for the fiscal period beginning July
47 5 1, 2005, and ending June 30, 2008. The department may provide
47 6 for the marketing of these products in conjunction with this
47 7 infrastructure program.
47 8 Sec. 63. Section 159A.2, Code 2005, is amended by adding
47 9 the following new subsections:
47 10 NEW SUBSECTION. 0A. "Biodiesel" and "biodiesel blended
47 11 fuel" mean the same as defined in section 214A.1.
47 12 NEW SUBSECTION. 3A. "Department" means the department of
47 13 agriculture and land stewardship.
47 14 NEW SUBSECTION. 3B. "Ethanol blended gasoline" means the
47 15 same as defined in section 214A.1.
47 16 Sec. 64. Section 159A.2, subsection 6, Code 2005, is
47 17 amended by striking the subsection and inserting in lieu
47 18 thereof the following:
47 19 6. "Renewable fuel" means the same as defined in section
47 20 214A.1.
47 21 Sec. 65. Section 159A.2, subsection 8, Code 2005, is
47 22 amended by striking the subsection.
47 23 Sec. 66. Section 159A.3, subsection 3, Code 2005, is
47 24 amended to read as follows:
47 25 3. a. A chief purpose of the office is to further the
47 26 production and consumption of ethanol fuel blended gasoline in
47 27 this state. The office shall be the primary state agency
47 28 charged with the responsibility to promote public consumption
47 29 of ethanol fuel blended gasoline.
47 30 b. The office shall promote the production and consumption
47 31 of soydiesel fuel biodiesel and biodiesel blended fuel in this
47 32 state.
47 33 Sec. 67. Section 214A.19, subsection 1, unnumbered
47 34 paragraph 1, Code 2005, is amended to read as follows:
47 35 The department of natural resources, conditioned upon the
48 1 availability of funds, is authorized to award demonstration
48 2 grants to persons who purchase vehicles which operate on
48 3 alternative fuels, including but not limited to, high blend
48 4 ethanol E=85 gasoline, biodiesel, compressed natural gas,
48 5 electricity, solar energy, or hydrogen. A grant shall be for
48 6 the purpose of conducting research connected with the fuel or
48 7 the vehicle, and not for the purchase of the vehicle itself,
48 8 except that the money may be used for the purchase of the
48 9 vehicle if all of the following conditions are satisfied:
48 10 Sec. 68. Section 307.20, Code 2005, is amended to read as
48 11 follows:
48 12 307.20 BIODIESEL AND BIODIESEL BLENDED FUEL REVOLVING
48 13 FUND.
48 14 1. A biodiesel and biodiesel blended fuel revolving fund
48 15 is created in the state treasury. The biodiesel and biodiesel
48 16 blended fuel revolving fund shall be administered by the
48 17 department and shall consist of moneys received from the sale
48 18 of EPAct credits banked by the department on April 19, 2001,
48 19 moneys appropriated by the general assembly, and any other
48 20 moneys obtained or accepted by the department for deposit in
48 21 the fund. Moneys in the fund are appropriated to and shall be
48 22 used by the department for the purchase of biodiesel and
48 23 biodiesel blended fuel for use in department vehicles. The
48 24 department shall submit an annual report not later than
48 25 January 31 to the members of the general assembly and the
48 26 legislative services agency, of the expenditures made from the
48 27 fund during the preceding fiscal year. Section 8.33 does not
48 28 apply to any moneys in the fund and, notwithstanding section
48 29 12C.7, subsection 2, earnings or interest on moneys deposited
48 30 in the fund shall be credited to the fund.
48 31 2. A department departmental motor vehicle operating on
48 32 using biodiesel or biodiesel blended fuel shall be affixed
48 33 with a brightly visible sticker that notifies the traveling
48 34 public that the motor vehicle uses biodiesel blended fuel.
48 35 3. For purposes of this section the following definitions
49 1 apply:
49 2 a. "Biodiesel "Biodiesel" and "biodiesel blended fuel"
49 3 means soydiesel fuel mean the same as defined in section
49 4 159A.2 214A.1.
49 5 b. "EPAct credit" means a credit issued pursuant to the
49 6 federal Energy Policy Act (EPAct), 42 U.S.C. } 13201 et seq.
49 7 Sec. 69. Section 452A.2, subsection 3, Code Supplement
49 8 2005, is amended to read as follows:
49 9 3. "Blender" means a person who owns and blends alcohol
49 10 ethanol with gasoline to produce ethanol blended gasoline and
49 11 blends the product at a nonterminal location. The blender
49 12 person is not restricted to blending alcohol ethanol with
49 13 gasoline. Products blended with gasoline other than grain
49 14 alcohol ethanol are taxed as gasoline. "Blender" also means a
49 15 person blending two or more special fuel products at a
49 16 nonterminal location where the tax has not been paid on all of
49 17 the products blended. This blend is taxed as a special fuel.
49 18 Sec. 70. Section 452A.2, Code Supplement 2005, is amended
49 19 by adding the following new subsection:
49 20 NEW SUBSECTION. 9A. "E=85 gasoline" means the same as
49 21 defined in section 214A.1.
49 22 Sec. 71. Section 452A.2, subsection 11, Code Supplement
49 23 2005, is amended to read as follows:
49 24 11. "Ethanol blended gasoline" means motor fuel containing
49 25 at least ten percent alcohol distilled from cereal grains the
49 26 same as defined in section 214A.1.
49 27 Sec. 72. Section 452A.2, subsection 19, unnumbered
49 28 paragraph 1, Code Supplement 2005, is amended to read as
49 29 follows:
49 30 "Motor fuel" means both motor fuel as defined in section
49 31 214A.1 and includes all of the following:
49 32 Sec. 73. Section 452A.2, subsection 21, Code Supplement
49 33 2005, is amended to read as follows:
49 34 21. "Nonterminal storage facility" means a facility where
49 35 motor fuel or special fuel, other than liquefied petroleum
50 1 gas, is stored that is not supplied by a pipeline or a marine
50 2 vessel. "Nonterminal storage facility" includes a facility
50 3 that manufactures products such as alcohol ethanol as defined
50 4 in section 214A.1, biofuel, blend stocks, or additives which
50 5 may be used as motor fuel or special fuel, other than
50 6 liquefied petroleum gas, for operating motor vehicles or
50 7 aircraft.
50 8 Sec. 74. Section 452A.3, subsection 1B, Code Supplement
50 9 2005, is amended to read as follows:
50 10 1B. An excise tax of seventeen cents is imposed on each
50 11 gallon of E=85 gasoline, which contains at least eighty=five
50 12 percent denatured alcohol by volume from the first day of
50 13 April until the last day of October or seventy percent
50 14 denatured alcohol from the first day of November until the
50 15 last day of March, used for the privilege of operating motor
50 16 vehicles in this state as defined in section 214A.1, subject
50 17 to the determination provided in subsection 1C.
50 18 Sec. 75. Section 452A.6, Code 2005, is amended to read as
50 19 follows:
50 20 452A.6 ETHANOL BLENDED GASOLINE AND OTHER PRODUCTS ==
50 21 BLENDER'S LICENSE.
50 22 1. a. A person other than a supplier, restrictive
50 23 supplier, or importer licensed under this division, who blends
50 24 gasoline with alcohol distilled from cereal grains so that the
50 25 blend contains at least ten percent alcohol distilled from
50 26 cereal grains ethanol as defined in section 214A.1 in order to
50 27 formulate ethanol blended gasoline, shall obtain a blender's
50 28 license.
50 29 b. A person who blends two or more special fuel products
50 30 or sells one hundred percent biofuel shall obtain a blender's
50 31 license.
50 32 2. The A blender's license shall be obtained by following
50 33 the procedure under section 452A.4 and the blender's license
50 34 is subject to the same restrictions as contained in that
50 35 section.
51 1 3. A blender required to obtain a license pursuant to this
51 2 section shall maintain records as required by section 452A.10
51 3 as to motor fuel, alcohol ethanol, ethanol blended gasoline,
51 4 and special fuels.
51 5 DIVISION VII
51 6 CHANGE OF TERMS
51 7 Sec. 76. CHANGE OF TERMS.
51 8 1. Sections 8A.362, 101.21, 159A.4, 214.1, 214.11, 214A.1,
51 9 214A.2, 214A.4, 214A.5, 214A.7, 214A.8, 214A.9, 214A.10,
51 10 214A.16, 214A.17, 214A.18, 306C.11, 312.1, 321.56, 423.14,
51 11 452A.63, 452A.66, and 452A.78, Code 2005, are amended by
51 12 striking from the provisions the words "motor vehicle fuel"
51 13 and inserting the following: "motor fuel".
51 14 2. Sections 214.1, 214.3, 214.9, 214.11, and 214A.16, Code
51 15 2005, are amended by striking the words "motor vehicle fuel
51 16 pump" or "motor vehicle fuel pumps" and inserting the
51 17 following: "motor fuel pump" or "motor fuel pumps".
51 18 3. Sections 159A.3 and 214A.17, Code 2005, are amended by
51 19 striking from the provisions the words "oxygenate octane
51 20 enhancers" and inserting the following: "oxygenates".
51 21 4. Sections 214A.1, 214A.4, 214A.5, 214A.7, 214A.8, and
51 22 214A.10, Code 2005, are amended by striking from the
51 23 provisions the words "oxygenate octane enhancer" and inserting
51 24 the following: "oxygenate".
51 25 EXPLANATION
51 26 BACKGROUND. The general assembly has enacted a number of
51 27 Acts which have promoted the production and consumption of
51 28 ethanol blended gasoline.
51 29 In 1991, the general assembly enacted S.F. 545 (1991 Iowa
51 30 Acts, ch. 254), which requires that state and local government
51 31 vehicles operate using ethanol blended gasoline and provides
51 32 that a state=issued credit card can only be used to purchase
51 33 ethanol blended gasoline. The provisions state that ethanol
51 34 blended gasoline must contain at least 10 percent ethanol.
51 35 In 1994, the general assembly enacted H.F. 2337 (1994 Iowa
52 1 Acts, chapter 1119), which requires that of all new passenger
52 2 vehicles and light pickup trucks purchased by the department
52 3 of administrative services, other state agencies, and
52 4 community colleges, a minimum of 10 percent of those motor
52 5 vehicles must be equipped with engines which utilize
52 6 alternative fuels (referred to as alternative methods of
52 7 propulsion), including a flexible fuel (E=85 gasoline or
52 8 biodiesel blended gasoline). The alternative fuel
52 9 requirements do not apply to motor vehicles purchased and
52 10 directly used for law enforcement or purchased and used for
52 11 off=road maintenance work or to pull loaded trailers.
52 12 In 2001, the general assembly enacted H.F. 716 (2001 Iowa
52 13 Acts, ch. 123), which created a tax credit for retail dealers
52 14 of gasoline who sell ethanol blended gasoline (containing at
52 15 least 10 percent alcohol). The tax credit applies to both
52 16 taxpayers filing as individuals under Code section 422.11C and
52 17 businesses under Code section 422.33. Specifically, the Act
52 18 provided a tax credit for a retail dealer who operates at
52 19 least one service station at which more than 60 percent of the
52 20 total gallons of gasoline sold by the retail dealer is ethanol
52 21 blended gasoline.
52 22 The Act also amended provisions in Code section 452A.3 that
52 23 provide for an excise tax on each gallon of motor fuel sold in
52 24 the state. Under the Act, until June 30, 2007, the rates for
52 25 unblended and blended motor fuel are adjusted each year based
52 26 on the number of gallons of ethanol blended gasoline that are
52 27 distributed in this state as expressed as a percentage of the
52 28 total number of gallons of motor fuel distributed in this
52 29 state.
52 30 In 2005, the general assembly enacted H.F. 868 (2005 Iowa
52 31 Acts, ch. 150) imposing a special rate of 17 cents on each
52 32 gallon of E=85 gasoline (a blend containing a minimum of
52 33 between 75 and 85 percent alcohol depending on the season) if
52 34 certain conditions were met. The Act requires the department
52 35 of revenue to compare the amount of moneys actually collected
53 1 using the special 17 cents rate with the amount of moneys that
53 2 would have been collected if the adjusted rate applied. If
53 3 the difference is equal to or greater than $25,000, the tax
53 4 rate beginning the next year is at the adjusted rate.
53 5 DIVISION I == ESTABLISHMENT OF RENEWABLE FUEL STANDARDS.
53 6 GOAL. This division establishes a goal that by January 1,
53 7 2025, ethanol and biodiesel (biofuel) is to replace 25 percent
53 8 of all petroleum used in the formulation of gasoline.
53 9 MOTOR FUEL STANDARDS. The division amends Code chapter
53 10 214A, which provides authority to the department of
53 11 agriculture and land stewardship to regulate motor fuel. It
53 12 provides for a number of definitions that apply to provisions
53 13 in Code chapter 214A and other Code chapters by reference.
53 14 The definitions include those for "biodiesel", "biodiesel
53 15 blended fuel", "biofuel", "dealer", "diesel fuel", "E=85
53 16 gasoline", "ethanol", "ethanol blended gasoline", "gasoline",
53 17 "renewable fuel", and "retail motor fuel site". The division
53 18 moves substantive language referring to kerosene from the
53 19 definitional section to a section that specifically regulates
53 20 kerosene.
53 21 The division authorizes the department to establish
53 22 standards for motor fuel. The division provides that the
53 23 department is required to adopt rules relating to renewable
53 24 fuel such as ethanol blended gasoline, biodiesel, and
53 25 biodiesel blended fuel and motor fuel components such as an
53 26 oxygenate. The division requires that ethanol blended
53 27 gasoline contain a blend of at least 10 percent ethanol. E=85
53 28 gasoline must contain a minimum seasonal blend of between 70
53 29 and 85 percent or more ethanol. Biodiesel fuel must contain
53 30 at least 1 percent biodiesel.
53 31 The department of agriculture and land stewardship must
53 32 adopt by reference other specifications relating to tests and
53 33 standards for renewable fuel and motor fuel components
53 34 established by the United States environmental protection
53 35 agency or A.S.T.M. (American society for testing and
54 1 materials) international. In adopting standards for a
54 2 renewable fuel, the department of agriculture and land
54 3 stewardship must consult with the renewable fuels and
54 4 coproducts advisory committee (See Code chapter 159A).
54 5 FALSE ADVERTISING. The division rewrites provisions which
54 6 regulate false advertising of motor fuel to prohibit a person
54 7 from knowingly advertising the sale of any motor fuel that
54 8 does not meet standards adopted by the department of
54 9 agriculture and land stewardship. The division prohibits a
54 10 person from knowingly falsely advertising that motor fuel is a
54 11 renewable fuel or is not a renewable fuel, or falsely
54 12 advertising that ethanol blended gasoline or biodiesel blended
54 13 fuel does or does not contain the appropriate percentage blend
54 14 (referred to as "E=xx" or "B=xx").
54 15 PENALTY. The division provides that the penalty for any
54 16 violation of the Code chapter is increased from a simple
54 17 misdemeanor to a serious misdemeanor. A simple misdemeanor is
54 18 punishable by confinement for no more than 30 days or a fine
54 19 of at least $50 but not more than $500, or by both. A serious
54 20 misdemeanor is punishable by confinement for no more than one
54 21 year and a fine of at least $250 but not more than $1,500.
54 22 DIVISION II == RENEWABLE FUEL INFRASTRUCTURE. This
54 23 division establishes a renewable fuel infrastructure
54 24 initiative. It specifically provides for motor fuel storage
54 25 and dispensing infrastructure, which includes tanks and motor
54 26 fuel pumps necessary to keep and dispense motor fuel.
54 27 FRANCHISES. The division amends provisions included in
54 28 Code chapter 323A affecting franchises of motor fuel. A
54 29 franchise is a contract between persons who sell and who
54 30 purchase for resale motor fuel, including refiners,
54 31 distributors, and retailers. The division provides that when
54 32 a contract is entered into or renewed, it must provide for the
54 33 delivery of volumes of E=85 gasoline at times demanded by the
54 34 franchisee or it must allow the franchisee to purchase those
54 35 volumes of E=85 gasoline at those times from another source.
55 1 However, if the contract does not have an expiration date, and
55 2 the franchisor cannot provide for the delivery of E=85
55 3 gasoline, the franchisee may immediately obtain the E=85
55 4 gasoline from another source, without regard to the contract.
55 5 The division provides that if the franchisee obtains the E=85
55 6 gasoline from another source, the franchisee must provide
55 7 notice to the public of its source. The franchisee must fully
55 8 indemnify the franchisor against any claims for liability
55 9 arising out of the use of the E=85 gasoline which was
55 10 delivered by another source. These provisions are effective
55 11 upon enactment.
55 12 INFRASTRUCTURE USED TO STORE AND DISPENSE E=85 GASOLINE.
55 13 The division provides that a retail dealer may use gasoline
55 14 infrastructure to store and dispense E=85 gasoline, if the
55 15 department of natural resources determines that the
55 16 infrastructure is compatible with the E=85 gasoline. For a
55 17 dispenser, the division requires that a manufacturer state
55 18 that it is not incompatible with E=85 gasoline and that the
55 19 manufacturer has initiated the process of applying to an
55 20 independent testing laboratory for listing of the equipment
55 21 for use in dispensing the E=85 gasoline. These provisions are
55 22 repealed on July 1, 2009.
55 23 RENEWABLE FUEL INFRASTRUCTURE PROGRAMS. The division
55 24 establishes a renewable fuel infrastructure fund. The fund is
55 25 under the control of the department of natural resources to be
55 26 used for the two renewable fuel infrastructure programs. The
55 27 moneys are to be allocated between supporting infrastructure
55 28 relating to the storage and dispensing of E=85 gasoline and
55 29 biodiesel or biodiesel blended fuel at retail motor fuel sites
55 30 and biodiesel at terminals. The fund and programs are
55 31 controlled by a renewable fuel infrastructure board which
55 32 includes members representing agricultural producers,
55 33 petroleum marketers, contractors, insurers, and the renewable
55 34 fuels industry. The purpose of the renewable fuel
55 35 infrastructure program for retail motor fuel sites is to
56 1 provide cost=share financial assistance to retail motor fuel
56 2 sites installing, replacing, or converting motor fuel storage
56 3 and dispensing infrastructure designed and used exclusively
56 4 for E=85 gasoline, biodiesel, or biodiesel blended fuel. The
56 5 purpose of the renewable fuel infrastructure program for
56 6 biodiesel terminal facilities is to provide cost=share
56 7 financial assistance to support infrastructure designed and
56 8 used exclusively to store and distribute biodiesel or
56 9 biodiesel blended fuel.
56 10 DIVISION III == RENEWABLE FUEL INCOME TAX CREDIT
56 11 PROVISIONS. This division provides tax credits under Code
56 12 chapter 422, which applies to taxpayers filing as individuals
56 13 or businesses.
56 14 DESIGNATED ETHANOL BLENDED GASOLINE TAX CREDIT. The
56 15 division amends designated ethanol tax credit provisions in
56 16 Code chapter 422 to provide that a retail dealer who sells
56 17 ethanol blended gasoline is eligible to receive a tax credit.
56 18 The division provides that a retail dealer cannot claim this
56 19 tax credit if the retail dealer claims an ethanol promotion
56 20 tax credit as provided in this division. The retail dealer
56 21 also cannot claim the tax credit on the same gallons of
56 22 ethanol that is claimed under an E=85 gasoline promotion tax
56 23 credit as provided in the division. This tax credit is
56 24 repealed on January 1, 2007.
56 25 ETHANOL PROMOTION TAX CREDIT. The division creates an
56 26 ethanol promotion tax credit for retail dealers. In order to
56 27 receive this tax credit, the retailer must calculate the total
56 28 gasoline gallonage and the total ethanol gallonage for a
56 29 determination period (calendar year). The tax credit is 5
56 30 cents multiplied by the gallon of ethanol sold. The total
56 31 gallons of ethanol eligible for the ethanol promotion tax
56 32 credit is reduced according to a formula based on a schedule
56 33 starting in 2011. After that, only eligible gallons of
56 34 ethanol are subject to the tax credit. This is determined by
56 35 multiplying the total gasoline sold by a deductible
57 1 percentage, and the resulting product is subtracted from the
57 2 total gallons of ethanol sold by the retail dealer. For the
57 3 year 2011, the deductible percentage is 1 percent. Each year
57 4 after that the deductible percentage increases until 2025,
57 5 when it is 15 percent. The division provides that the
57 6 retailer may claim this tax credit and the E=85 promotion tax
57 7 credit as provided in the division. This tax credit is
57 8 eliminated on January 1, 2026.
57 9 E=85 PROMOTION TAX CREDIT. The division establishes an E=
57 10 85 gasoline promotion tax credit. A retail dealer who sells
57 11 E=85 gasoline is eligible for the tax credit. The tax credit
57 12 begins at 25 cents per gallon of E=85 gasoline sold in
57 13 calendar years 2006 and 2007. After that the rate of the
57 14 amount of the tax credit decreases by year until 2019 when it
57 15 is 1 cent per gallon of E=85 gasoline. The tax credit is
57 16 repealed on January 1, 2020.
57 17 BIODIESEL BLENDED FUEL TAX CREDIT. The division
57 18 establishes a biodiesel blended fuel tax credit. In this
57 19 case, the bioldiesel blended fuel must include at least 2
57 20 percent biodiesel, even though a 1 percent blend satisfies
57 21 standards adopted by the department of agriculture and land
57 22 stewardship under Code chapter 214A. A retail dealer who
57 23 sells diesel fuel is eligible for this new tax credit if the
57 24 retail dealer sells 50 percent or more biodiesel blended fuel.
57 25 The tax credit is 3 cents for the total number of gallons of
57 26 biodiesel blended fuel sold by the retailer. This tax credit
57 27 is repealed on January 1, 2012.
57 28 RETROACTIVE APPLICABILITY. The division provides for the
57 29 applicability of the retail tax credit provisions, including
57 30 by providing that the tax credits apply retroactively
57 31 beginning on and after January 1, 2006.
57 32 DIVISION IV == PETROLEUM REPLACEMENT INITIATIVE. This
57 33 division amends provisions in Code chapter 452A providing for
57 34 the excise tax on motor fuel. The division amends Code
57 35 section 214A.2 which currently provides that after June 30,
58 1 2007, the excise tax for both ethanol and nonethanol is 20
58 2 cents per gallon.
58 3 KEY DETERMINATION PERIODS. The division provides that by
58 4 March 1 after each key determination period, the department of
58 5 revenue must determine whether a biofuel percentage threshold
58 6 has been met. The thresholds are as follows: (1) the
58 7 aggregate distribution must be at least 10 percent biofuel for
58 8 the key determination period beginning January 1, 2009, and
58 9 ending December 31, 2009; (2) the aggregate distribution must
58 10 be at least 15 percent biofuel for the key determination
58 11 period beginning January 1, 2014, and ending December 31,
58 12 2014; (3) the aggregate distribution must be at least 20
58 13 percent biofuel for the key determination period beginning
58 14 January 1, 2019, and ending December 31, 2019; and (4) the
58 15 aggregate distribution must be at least 25 percent biofuel for
58 16 the key determination period beginning January 1, 2024, and
58 17 ending December 31, 2024.
58 18 EXCISE TAXES. According to the division, if a biofuel
58 19 threshold has been met, the excise tax is 20 cents per gallon
58 20 for both ethanol and nonethanol for the next five years. If a
58 21 biofuel threshold has not been met, then starting July 1 of
58 22 the following year the excise tax on nonethanol is increased
58 23 to a special rate for the next five years. The special rate
58 24 is determined by using a formula which multiplies 2 cents by a
58 25 biofuel threshold disparity factor. The factor is determined
58 26 by calculating the difference between the aggregate gallons of
58 27 biofuel sold and the number of aggregate gallons of biofuel
58 28 which were required to be sold to meet the threshold during a
58 29 key determination period.
58 30 REPORTING. The division requires that each retailer report
58 31 its total gasoline and diesel fuel gallonage and its total
58 32 ethanol and biodiesel gallonage to the department of revenue
58 33 by February 1 of each year. The department must deliver a
58 34 report to the governor and the legislative services agency
58 35 including the aggregate gasoline and diesel fuel gallonage for
59 1 the previous determination period, the aggregate biofuel
59 2 distribution percentage for the previous determination period,
59 3 the projected aggregate gasoline and diesel fuel gallonage,
59 4 the aggregate ethanol and biodiesel gallonage, and the
59 5 projected biofuel threshold percentage disparity for each
59 6 future key determination period.
59 7 DIVISION V == COORDINATING PROVISIONS == GOVERNMENT
59 8 VEHICLES. This division amends the provisions that require
59 9 state and local government vehicles to operate using ethanol
59 10 blended gasoline. It also amends similar provisions which
59 11 require state agencies to purchase flexible fuel vehicles.
59 12 The division standardizes the language and refers to common
59 13 definitions as created in the division amending Code section
59 14 214A.1 and related standards created in the division amending
59 15 Code section 214A.2.
59 16 DIVISION VI == COORDINATING PROVISIONS == MISCELLANEOUS. A
59 17 number of provisions in the Code refer to alcohol or ethanol
59 18 blended gasoline, including E=85 gasoline, and soydiesel or
59 19 biofuel. This division standardizes the language and refers
59 20 to common definitions as created in the division amending Code
59 21 section 214A.1 and related standards created in the division
59 22 amending Code section 214A.2.
59 23 DIVISION VII == CHANGE IN TERMS. This division amends a
59 24 number of provisions by changing the term "oxygenate octane
59 25 enhancer" to "oxygenate", "motor vehicle fuel" to "motor
59 26 fuel", and "motor vehicle fuel pump" to "motor fuel pump" for
59 27 purposes of consistency in chapters throughout the Code, but
59 28 in particular in Code chapters 214A and 452A.
59 29 LSB 5701HZ 81
59 30 da:rj/je/5