House File 623 - Introduced
HOUSE FILE
BY COMMITTEE ON AGRICULTURE
(SUCCESSOR TO HSB 234)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the promotion of biodiesel and E=85 blended
2 gasoline as renewable fuels.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 2837HV 81
5 da/sh/8
PAG LIN
1 1 DIVISION XXIII
1 2 PROMOTION OF RENEWABLE FUELS
1 3 Section 1. NEW SECTION. 15E.401 DEFINITIONS.
1 4 As used in this division, unless the context otherwise
1 5 requires:
1 6 1. "Biodiesel" means the end product achieved through a
1 7 chemical process which produces monoalkyl esters of long chain
1 8 fatty acids derived from plant or animal matter for use in
1 9 diesel=powered engines that meets all of the following
1 10 requirements:
1 11 a. The registration requirements for fuels and fuel
1 12 additives established by the United States environmental
1 13 protection agency under 42 U.S.C. } 7545.
1 14 b. Compliance with the specifications of ASTM (American
1 15 society for testing and materials) international designation
1 16 D=5798=99.
1 17 2. "E=85 blended gasoline" means a petroleum product that
1 18 is gasoline or natural gasoline blended with agriculturally
1 19 derived ethanol which has been denatured, if the petroleum
1 20 product typically contains eighty=five percent ethanol by
1 21 volume but at least contains seventy percent ethanol by
1 22 volume.
1 23 3. "Off=site terminal facility" means a distillate fuel
1 24 storage distribution facility which is used to supply
1 25 biodiesel through an automated system and which is located
1 26 within close proximity of a major pipeline terminal.
1 27 4. "Renewable fuel" means an energy source which is
1 28 derived from a biomass that is an organic compound available
1 29 on a renewable or recurring basis, including but not limited
1 30 to agricultural crops, if the biomass when processed may be
1 31 used alone or blended with another product to power machinery,
1 32 including an engine or power plant. "Renewable fuel" includes
1 33 but is not limited to biodiesel or "E=85 blended gasoline".
1 34 5. "Service station" means a geographic location where a
1 35 retail dealer as defined in section 214A.1 operates a metered
2 1 pump at a service station for purposes of selling and
2 2 dispensing motor vehicle fuel as defined in section 214A.1 on
2 3 a retail basis.
2 4 Sec. 2. NEW SECTION. 15E.402 RENEWABLE FUEL
2 5 INFRASTRUCTURE COST SHARE PROGRAMS == E=85 BLENDED GASOLINE
2 6 AND BIODIESEL.
2 7 The department shall establish and administer renewable
2 8 infrastructure cost share fuel programs as follows:
2 9 1. a. An E=85 infrastructure cost share program to
2 10 provide financial incentives for the installation or
2 11 conversion of infrastructure related to equipment or devices
2 12 used by service stations to sell and dispense E=85 blended
2 13 gasoline. The financial incentives shall be used for the
2 14 purpose of establishing a minimum of thirty service stations
2 15 that distribute E=85 blended gasoline.
2 16 b. A biodiesel infrastructure cost share program to
2 17 provide financial incentives for the installation or
2 18 conversion of infrastructure required to establish off=site
2 19 terminal facilities that store biodiesel for distribution to
2 20 service stations. The financial incentives shall be used for
2 21 the purpose of establishing a minimum of four off=site
2 22 terminal facilities used for the distribution of biodiesel.
2 23 2. The financial incentives provided under this section
2 24 shall not exceed fifty percent of the estimated cost or fifty
2 25 percent of the actual cost, whichever is less, of installing
2 26 the necessary infrastructure located at a service station or
2 27 off=site terminal facility. The moneys shall not be used to
2 28 pay for expenses incurred by the department in administering
2 29 the programs. In awarding the financial incentives, the
2 30 department may cooperate with the office of renewable fuels
2 31 and coproducts pursuant to section 159A.3.
2 32 3. For each fiscal year in the fiscal period beginning
2 33 July 1, 2005, and ending June 30, 2008, the department shall
2 34 reserve and expend up to three hundred twenty=five thousand
2 35 dollars of moneys appropriated to the department for purposes
3 1 of allocating cost share moneys as financial incentives as
3 2 provided in this section.
3 3 Notwithstanding section 8.33, any unobligated or unexpended
3 4 moneys available on June 30 of a fiscal year shall not revert
3 5 but shall be retained by the department to carry out the
3 6 renewable infrastructure cost share fuel programs.
3 7 EXPLANATION
3 8 This bill establishes programs for the promotion of
3 9 renewable fuels and particularly programs for biodiesel and E=
3 10 85 blended gasoline to be administered by the department of
3 11 economic development.
3 12 The bill establishes a cost share program to provide
3 13 financial incentives for the installation or conversion of
3 14 infrastructure used by service stations to sell and dispense
3 15 E=85 blended gasoline. It also establishes a cost share
3 16 program to provide financial incentives for the installation
3 17 or conversion of infrastructure required to establish off=site
3 18 terminal facilities which supply biodiesel. The bill provides
3 19 that for each of three years, the department must reserve up
3 20 to $325,000 for purposes of supporting the programs.
3 21 LSB 2837HV 81
3 22 da:rj/sh/8