House File 317 - Introduced
HOUSE FILE
BY VAN ENGELENHOVEN
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act providing standards for ethanol blended gasoline and
2 biodiesel fuel, and making penalties applicable.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 2450HH 81
5 da/pj/5
PAG LIN
1 1 DIVISION I
1 2 ESTABLISHMENT OF RENEWABLE FUEL STANDARDS
1 3 Section 1. Section 159A.2, Code 2005, is amended by adding
1 4 the following new subsections:
1 5 NEW SUBSECTION. 0A. "Biodiesel fuel" means a motor
1 6 vehicle fuel which is a mixture of diesel fuel and processed
1 7 soybean oil, which meets the standards for such motor vehicle
1 8 fuel established in section 214A.2, if at least twenty percent
1 9 of the mixed fuel by volume is processed soybean oil.
1 10 NEW SUBSECTION. 3A. "Ethanol blended gasoline" means
1 11 motor vehicle fuel which is a mixture of gasoline and
1 12 denatured alcohol, which meets the standards for such motor
1 13 vehicle fuel established in section 214A.2.
1 14 NEW SUBSECTION. 4A. "Motor vehicle fuel" means the same
1 15 as defined in section 214A.1.
1 16 Sec. 2. Section 159A.2, subsection 6, Code 2005, is
1 17 amended by striking the subsection and inserting in lieu
1 18 thereof the following:
1 19 6. "Renewable fuel" means the same as defined in section
1 20 214A.1.
1 21 Sec. 3. Section 159A.3, subsection 3, Code 2005, is
1 22 amended to read as follows:
1 23 3. a. A chief purpose of the office is to further the
1 24 production and consumption of ethanol fuel blended gasoline in
1 25 this state. The office shall be the primary state agency
1 26 charged with the responsibility to promote public consumption
1 27 of ethanol fuel blended gasoline.
1 28 b. The office shall promote the production and consumption
1 29 of soydiesel biodiesel fuel in this state.
1 30 Sec. 4. Section 214A.1, Code 2005, is amended by adding
1 31 the following new subsections:
1 32 NEW SUBSECTION. 0A. "Advertise" means to present a
1 33 commercial message in any medium, including but not limited to
1 34 print, radio, television, sign, display, label, tag, or
1 35 articulation.
2 1 NEW SUBSECTION. 6A. "Renewable fuel" means an energy
2 2 source at least in part derived from biomass or other
2 3 nonfossil organic compound capable of powering machinery,
2 4 including but not limited to an engine or power plant. A
2 5 renewable fuel includes but is not limited to ethanol blended
2 6 gasoline or biodiesel fuel meeting the standards of section
2 7 214A.2.
2 8 Sec. 5. Section 214A.2, subsection 1, Code 2005, is
2 9 amended to read as follows:
2 10 1. The secretary shall adopt rules pursuant to chapter 17A
2 11 for carrying out this chapter. The rules may include, but are
2 12 not limited to, specifications relating to motor vehicle fuel
2 13 or, including but not limited to renewable fuel which may
2 14 contain oxygenate octane enhancers. In the interest of
2 15 uniformity, the secretary shall adopt by reference or
2 16 otherwise specifications relating to tests and standards for
2 17 motor fuel or oxygenate octane enhancers, established by
2 18 A.S.T.M. (American society for testing and materials)
2 19 international, unless the secretary determines those
2 20 specifications are inconsistent with this chapter or are not
2 21 appropriate to the conditions which exist in this state.
2 22 Sec. 6. Section 214A.2, subsection 3, Code 2005, is
2 23 amended by striking the subsection and inserting in lieu
2 24 thereof the following:
2 25 3. a. Gasoline blended with denatured alcohol shall be
2 26 known as ethanol blended gasoline if it meets the standards
2 27 for renewable fuel as provided in this section. In addition,
2 28 all of the following must apply:
2 29 (1) Until July 1, 2007, at least ten percent of the
2 30 mixture of gasoline and denatured alcohol by volume must be
2 31 denatured alcohol.
2 32 (2) On and after July 1, 2007, at least fifteen percent of
2 33 the mixture of gasoline and denatured alcohol by volume must
2 34 be denatured alcohol.
2 35 b. Ethanol blended gasoline shall be known as E=85
3 1 gasoline if it meets the standards for renewable fuel as
3 2 provided in this section. In addition, all of the following
3 3 must apply:
3 4 (1) From the first day of April until the last day of
3 5 October, at least eighty=five percent of the mixture of
3 6 gasoline and denatured alcohol by volume must be denatured
3 7 alcohol.
3 8 (2) From the first day of November until the last day of
3 9 March, at least seventy=five percent of the mixture of
3 10 gasoline and denatured alcohol by volume must be denatured
3 11 alcohol.
3 12 Sec. 7. Section 214A.2, Code 2005, is amended by adding
3 13 the following new subsection:
3 14 NEW SUBSECTION. 3A. Diesel fuel blended with processed
3 15 soybean oil shall be known as biodiesel fuel if it meets the
3 16 standards for renewable fuel as provided in this section. In
3 17 addition, all of the following must apply:
3 18 (1) Until July 1, 2007, at least two percent of the
3 19 mixture of diesel fuel and processed soybean oil by volume
3 20 must be processed soybean oil.
3 21 (2) On and after July 1, 2007, at least fifteen percent of
3 22 the mixture of diesel fuel and processed soybean oil by volume
3 23 must be processed soybean oil.
3 24 Sec. 8. Section 214A.3, Code 2005, is amended to read as
3 25 follows:
3 26 214A.3 FALSE REPRESENTATIONS ADVERTISING.
3 27 A person for purposes of selling shall not falsely
3 28 represent do any of the following:
3 29 1. Falsely advertise the quality or kind of any motor
3 30 vehicle fuel or oxygenate octane enhancer or add which is
3 31 blended into the motor vehicle fuel.
3 32 2. Falsely advertise that a motor vehicle fuel is a
3 33 renewable fuel as provided in section 214A.2. The dealer
3 34 shall not advertise the sale of motor vehicle fuel using the
3 35 term "ethanol", "E=85", or "biodiesel", or use any derivative,
4 1 plural, or compound of any such word unless the motor vehicle
4 2 fuel meets the standards as provided in section 214A.2.
4 3 3. Add coloring matter thereto to motor vehicle fuel for
4 4 the purpose of misleading the public as to its quality.
4 5 Sec. 9. Section 214A.19, subsection 1, unnumbered
4 6 paragraph 1, Code 2005, is amended to read as follows:
4 7 The department of natural resources, conditioned upon the
4 8 availability of funds, is authorized to award demonstration
4 9 grants to persons who purchase vehicles which operate on
4 10 alternative fuels, including but not limited to, high blend
4 11 ethanol E=85 gasoline, compressed natural gas, electricity,
4 12 solar energy, or hydrogen. A grant shall be for the purpose
4 13 of conducting research connected with the fuel or the vehicle,
4 14 and not for the purchase of the vehicle itself, except that
4 15 the money may be used for the purchase of the vehicle if all
4 16 of the following conditions are satisfied:
4 17 DIVISION II
4 18 CONFORMING CHANGES
4 19 Sec. 10. Section 8A.362, subsection 3, unnumbered
4 20 paragraph 2, Code 2005, is amended to read as follows:
4 21 A motor vehicle operated under this subsection shall not
4 22 operate on gasoline other than ethanol blended gasoline
4 23 blended with at least ten percent ethanol as provided in
4 24 section 214A.2, unless under emergency circumstances. A
4 25 state=issued credit card used to purchase gasoline shall not
4 26 be valid to purchase gasoline other than ethanol blended
4 27 gasoline blended with at least ten percent ethanol, if
4 28 commercially available. The motor vehicle shall also be
4 29 affixed with a brightly visible sticker which notifies the
4 30 traveling public that the motor vehicle is being operated on
4 31 ethanol blended gasoline blended with ethanol. However, the
4 32 sticker is not required to be affixed to an unmarked vehicle
4 33 used for purposes of providing law enforcement or security.
4 34 Sec. 11. Section 8A.362, subsection 5, paragraph a,
4 35 subparagraphs (1) and (2), Code 2005, are amended to read as
5 1 follows:
5 2 (1) A fuel blended with not more than fifteen percent E=85
5 3 gasoline and at least eighty=five percent ethanol as provided
5 4 in section 214A.2.
5 5 (2) A fuel which is a mixture of diesel Biodiesel fuel and
5 6 processed soybean oil. At least twenty percent of the mixed
5 7 fuel by volume must be processed soybean oil as defined in
5 8 section 159A.2.
5 9 Sec. 12. Section 216B.3, subsection 16, paragraph a, Code
5 10 2005, is amended to read as follows:
5 11 a. A motor vehicle purchased by the commission shall not
5 12 only operate on ethanol blended gasoline other than gasoline
5 13 blended with at least ten percent ethanol as provided in
5 14 section 214A.2. A state issued state=issued credit card used
5 15 to purchase gasoline shall not be valid to purchase gasoline
5 16 other than ethanol blended gasoline blended with at least ten
5 17 percent ethanol. The motor vehicle shall also be affixed with
5 18 a brightly visible sticker which notifies the traveling public
5 19 that the motor vehicle is being operated on ethanol blended
5 20 gasoline blended with ethanol. However, the sticker is not
5 21 required to be affixed to an unmarked vehicle used for
5 22 purposes of providing law enforcement or security.
5 23 Sec. 13. Section 216B.3, subsection 16, paragraph b,
5 24 subparagraph (1), subparagraph subdivisions (a) and (b), Code
5 25 2005, are amended to read as follows:
5 26 (a) A fuel blended with not more than fifteen percent E=85
5 27 gasoline and at least eighty=five percent ethanol as provided
5 28 in section 214A.2.
5 29 (b) A fuel which is a mixture of diesel Biodiesel fuel and
5 30 processed soybean oil. At least twenty percent of the mixed
5 31 fuel by volume must be processed soybean oil as defined in
5 32 section 159A.2.
5 33 Sec. 14. Section 260C.19A, subsection 1, Code 2005, is
5 34 amended to read as follows:
5 35 1. A motor vehicle purchased by or used under the
6 1 direction of the board of directors to provide services to a
6 2 merged area shall not only operate on ethanol blended gasoline
6 3 other than gasoline blended with at least ten percent ethanol
6 4 as provided in section 214A.2. The motor vehicle shall also
6 5 be affixed with a brightly visible sticker which notifies the
6 6 traveling public that the motor vehicle is being operated on
6 7 ethanol blended gasoline blended with ethanol. However, the
6 8 sticker is not required to be affixed to an unmarked vehicle
6 9 used for purposes of providing law enforcement or security.
6 10 Sec. 15. Section 260C.19A, subsection 2, paragraph a,
6 11 subparagraphs (1) and (2), Code 2005, are amended to read as
6 12 follows:
6 13 (1) A fuel blended with not more than fifteen percent E=85
6 14 gasoline and at least eighty=five percent ethanol as provided
6 15 in section 214A.2.
6 16 (2) A fuel which is a mixture of diesel Biodiesel fuel and
6 17 processed soybean oil. At least twenty percent of the mixed
6 18 fuel by volume must be processed soybean oil as defined in
6 19 section 159A.2.
6 20 Sec. 16. Section 262.25A, subsection 2, Code 2005, is
6 21 amended to read as follows:
6 22 2. A motor vehicle purchased by the institutions shall not
6 23 only operate on ethanol blended gasoline other than gasoline
6 24 blended with at least ten percent ethanol as provided in
6 25 section 214A.2. A state=issued credit card used to purchase
6 26 gasoline shall not be valid to purchase gasoline other than
6 27 ethanol blended gasoline blended with at least ten percent
6 28 ethanol. The motor vehicle shall also be affixed with a
6 29 brightly visible sticker which notifies the traveling public
6 30 that the motor vehicle is being operated on ethanol blended
6 31 gasoline blended with ethanol. However, the sticker is not
6 32 required to be affixed to an unmarked vehicle used for
6 33 purposes of providing law enforcement or security.
6 34 Sec. 17. Section 279.34, Code 2005, is amended to read as
6 35 follows:
7 1 279.34 MOTOR VEHICLES REQUIRED TO OPERATE ON ETHANOL=
7 2 BLENDED ETHANOL BLENDED GASOLINE.
7 3 A motor vehicle purchased by or used under the direction of
7 4 the board of directors to provide services to a school
7 5 corporation shall not, on or after January 1, 1993, only
7 6 operate on ethanol blended gasoline other than gasoline
7 7 blended with at least ten percent ethanol as provided in
7 8 section 214A.2. The motor vehicle shall also be affixed with
7 9 a brightly visible sticker which notifies the traveling public
7 10 that the motor vehicle is being operated on ethanol blended
7 11 gasoline blended with ethanol. However, the sticker is not
7 12 required to be affixed to an unmarked vehicle used for
7 13 purposes of providing law enforcement or security.
7 14 Sec. 18. Section 307.20, subsection 3, paragraph a, Code
7 15 2005, is amended to read as follows:
7 16 a. "Biodiesel fuel" means soydiesel fuel the same as
7 17 defined in section 159A.2.
7 18 Sec. 19. Section 307.21, subsection 4, paragraph d, Code
7 19 2005, is amended to read as follows:
7 20 d. A motor vehicle purchased by the administrator shall
7 21 not operate on gasoline other than ethanol blended gasoline
7 22 blended with at least ten percent ethanol as provided in
7 23 section 214A.2. A state=issued credit card used to purchase
7 24 gasoline shall not be valid to purchase gasoline other than
7 25 ethanol blended gasoline blended with at least ten percent
7 26 ethanol. The motor vehicle shall also be affixed with a
7 27 brightly visible sticker which notifies the traveling public
7 28 that the motor vehicle is being operated on ethanol blended
7 29 gasoline blended with ethanol. However, the sticker is not
7 30 required to be affixed to an unmarked vehicle used for
7 31 purposes of providing law enforcement or security.
7 32 Sec. 20. Section 307.21, subsection 5, paragraph a,
7 33 subparagraphs (1) and (2), Code 2005, are amended to read as
7 34 follows:
7 35 (1) A fuel blended with not more than fifteen percent E=85
8 1 gasoline and at least eighty=five percent ethanol as provided
8 2 in section 214A.2.
8 3 (2) A fuel which is a mixture of processed soybean oil and
8 4 diesel Biodiesel fuel. At least twenty percent of the fuel by
8 5 volume must be processed soybean oil as defined in section
8 6 159A.2.
8 7 Sec. 21. Section 331.908, Code 2005, is amended to read as
8 8 follows:
8 9 331.908 MOTOR VEHICLES REQUIRED TO OPERATE ON ETHANOL=
8 10 BLENDED ETHANOL BLENDED GASOLINE.
8 11 A motor vehicle purchased or used by a county to provide
8 12 county services shall not, on or after January 1, 1993,
8 13 operate on gasoline other than ethanol blended gasoline
8 14 blended with at least ten percent ethanol as provided in
8 15 section 214A.2. The motor vehicle shall also be affixed with
8 16 a brightly visible sticker which notifies the traveling public
8 17 that the motor vehicle is being operated on ethanol blended
8 18 gasoline blended with ethanol. However, the sticker is not
8 19 required to be affixed to an unmarked vehicle used for
8 20 purposes of providing law enforcement or security.
8 21 Sec. 22. Section 364.20, Code 2005, is amended to read as
8 22 follows:
8 23 364.20 MOTOR VEHICLES REQUIRED TO OPERATE ON ETHANOL=
8 24 BLENDED ETHANOL BLENDED GASOLINE.
8 25 A motor vehicle purchased or used by a city to provide city
8 26 services shall not, on or after January 1, 1993, operate on
8 27 gasoline other than ethanol blended gasoline blended with at
8 28 least ten percent ethanol as provided in section 214A.2. The
8 29 motor vehicle shall also be affixed with a brightly visible
8 30 sticker which notifies the traveling public that the motor
8 31 vehicle is being operated on ethanol blended gasoline blended
8 32 with ethanol. However, the sticker is not required to be
8 33 affixed to an unmarked vehicle used for purposes of providing
8 34 law enforcement or security.
8 35 Sec. 23. Section 452A.2, subsection 11, Code 2005, is
9 1 amended to read as follows:
9 2 11. "Ethanol blended gasoline" means motor fuel containing
9 3 at least ten percent alcohol distilled from cereal grains
9 4 gasoline which meets the standards provided in section 214A.2.
9 5 Sec. 24. Section 904.312A, subsection 1, Code 2005, is
9 6 amended to read as follows:
9 7 1. A motor vehicle purchased by the department shall not
9 8 operate on gasoline other than ethanol blended gasoline
9 9 blended with at least ten percent ethanol as provided in
9 10 section 214A.2. A state=issued credit card used to purchase
9 11 gasoline shall not be valid to purchase gasoline other than
9 12 ethanol blended gasoline blended with at least ten percent
9 13 ethanol. The motor vehicle shall also be affixed with a
9 14 brightly visible sticker which notifies the traveling public
9 15 that the motor vehicle is being operated on ethanol blended
9 16 gasoline blended with ethanol. However, the sticker is not
9 17 required to be affixed to an unmarked vehicle used for
9 18 purposes of providing law enforcement or security.
9 19 Sec. 25. Section 904.312A, subsection 2, paragraph a,
9 20 subparagraphs (1) and (2), Code 2005, are amended to read as
9 21 follows:
9 22 (1) A fuel blended with not more than fifteen percent E=85
9 23 gasoline and at least eighty=five percent ethanol as provided
9 24 in section 214A.2.
9 25 (2) A fuel which is a mixture of diesel Biodiesel fuel and
9 26 processed soybean oil. At least twenty percent of the mixed
9 27 fuel by volume must be processed soybean oil as defined in
9 28 section 159A.2.
9 29 EXPLANATION
9 30 This bill relates to renewable fuels, including motor
9 31 vehicle fuel referred to as ethanol blended gasoline, which is
9 32 a mixture of gasoline and denatured grain alcohol, and
9 33 biodiesel fuel, which is also referred to as soydiesel, and
9 34 which contains a mixture of diesel fuel and processed soybean
9 35 oil.
10 1 DIVISION I. This division amends provisions in Code
10 2 chapter 159A, which provides for the promotion of renewable
10 3 fuels, and Code chapter 214A, which provides for the
10 4 regulation of motor vehicle fuel and oxygenate enhancers.
10 5 Both chapters are administered by the department of
10 6 agriculture and land stewardship. Code section 159A.2
10 7 currently regulates "soydiesel fuel", which is defined to mean
10 8 diesel fuel which is mixed with at least 20 percent processed
10 9 soybean oil by volume. The division renames "soydiesel fuel"
10 10 as "biodiesel fuel" but does not change the 20 percent
10 11 requirement. The division amends a number of other
10 12 definitions including ethanol blended gasoline by referring to
10 13 standards for such motor vehicle fuel established in Code
10 14 section 214A.2.
10 15 The division amends Code section 214A.2 by eliminating a
10 16 section that refers to a number of different types of ethanol
10 17 blended gasoline which depend upon the mixture ratio of
10 18 denatured alcohol to conventional gasoline. The division
10 19 provides that gasoline blended with denatured alcohol shall be
10 20 known as "ethanol blended gasoline" and diesel fuel blended
10 21 with processed soybean oil is referred to as "biodiesel fuel"
10 22 only if the motor vehicle fuel meets standards for renewable
10 23 fuel as provided by the department. In addition, it
10 24 establishes a ratio mixture for both the ethanol blended
10 25 gasoline and biodiesel fuel. Until July 1, 2007, the ratio is
10 26 at least 10 percent denatured alcohol to conventional gasoline
10 27 by volume. On and after that date the ratio increases to 15
10 28 percent. There is also a standard for gasoline referred to as
10 29 "E=85 gasoline". In that case, there must be a ratio of 85
10 30 percent denatured alcohol to conventional gasoline except in
10 31 winter months when the mixture of denatured alcohol may
10 32 decrease to 75 percent. A graduated ratio for biodiesel fuel
10 33 is established. Until July 1, 2007, at least 2 percent of the
10 34 motor vehicle fuel must be processed soybean oil by volume.
10 35 On and after that date the ratio of processed soybean oil
11 1 increases to 15 percent.
11 2 The division amends Code section 214A.3 to prohibit falsely
11 3 advertising that a motor vehicle fuel is a renewable fuel as
11 4 provided in Code section 214A.2, including advertising that
11 5 the motor vehicle fuel is mixed with alcohol or processed
11 6 soybean oil.
11 7 In general, a person who violates a standard or requirement
11 8 of Code chapter 214A is guilty of a simple misdemeanor (see
11 9 Code section 214A.11). A simple misdemeanor is punishable by
11 10 confinement for no more than 30 days or a fine of at least $50
11 11 but not more than $500 or by both.
11 12 DIVISION II. The division makes a number of conforming
11 13 changes to various Code chapters that require state and local
11 14 governments to purchase renewable fuel when operating motor
11 15 vehicles which includes gasoline containing at least 10
11 16 percent ethanol. Of all new passenger vehicles and light
11 17 trucks, at least 10 percent must use alternative fuel sources,
11 18 including flexible fuels. For gasoline=powered motor
11 19 vehicles, they must operate on fuel containing at least 85
11 20 percent ethanol. For diesel=powered vehicles, they must
11 21 operate on fuel containing at least 20 percent processed
11 22 soybean oil. The division amends those provisions to conform
11 23 with the terms used in Code chapters 159A and 214A.
11 24 LSB 2450HH 81
11 25 da:rj/pj/5