Senate File 2383 - Introduced
SENATE FILE
BY COMMITTEE ON AGRICULTURE
(SUCCESSOR TO SF 2129)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act providing for state petroleum replacement, 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 income tax credits, and an appropriation, providing penalties,
6 making penalties applicable, and providing an applicability
7 date.
8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
9 TLSB 5486SV 81
10 da/je/5
PAG LIN
1 1 DIVISION I
1 2 ESTABLISHMENT OF RENEWABLE FUEL STANDARDS
1 3 Section 1. Section 214A.1, Code 2005, is amended by adding
1 4 the following new subsections:
1 5 NEW SUBSECTION. 0A. "Advertise" means to present a
1 6 commercial message in any medium, including but not limited to
1 7 print, radio, television, sign, display, label, tag, or
1 8 articulation.
1 9 NEW SUBSECTION. 1A. "B=2 biodiesel blended fuel" means
1 10 biodiesel blended fuel formulated with a minimum percentage of
1 11 two percent by volume of biodiesel, if the formulation meets
1 12 the standards provided in section 214A.2.
1 13 NEW SUBSECTION. 1B. "B=5 biodiesel blended fuel" means
1 14 biodiesel blended fuel formulated with a minimum percentage of
1 15 five percent by volume of biodiesel, if the formulation meets
1 16 the standards provided in section 214A.2.
1 17 NEW SUBSECTION. 1C. "B=20 biodiesel blended fuel" means
1 18 biodiesel blended fuel formulated with a minimum percentage of
1 19 twenty percent by volume of biodiesel, if the formulation
1 20 meets the standards provided in section 214A.2.
1 21 NEW SUBSECTION. 1D. "Biodiesel" means a combustible
1 22 liquid comprised of mono=alkyl esters of long=chain fatty
1 23 acids which is all of the following:
1 24 a. A renewable fuel which is a motor fuel capable of
1 25 powering diesel engines or aircraft engines.
1 26 b. Processed from natural oils or fats derived from crops
1 27 such as soybeans, vegetables, or animals.
1 28 c. Meets departmental specifications for that type of
1 29 motor fuel as provided in section 214A.2.
1 30 NEW SUBSECTION. 1E. "Biodiesel blended fuel" means a
1 31 formulation of diesel fuel which is a liquid petroleum product
1 32 blended with biodiesel, if the formulation meets departmental
1 33 standards as provided in section 214A.2.
1 34 NEW SUBSECTION. 1F. "Committee" means the renewable fuels
1 35 and coproducts advisory committee established pursuant to
2 1 section 159A.4.
2 2 NEW SUBSECTION. 1G. "Dealer" means a wholesale dealer or
2 3 retail dealer.
2 4 NEW SUBSECTION. 1H. "Diesel fuel" means any liquid
2 5 product prepared, advertised, offered for sale, or sold for
2 6 use as, or commonly and commercially used as, motor fuel for
2 7 use in an internal combustion engine and ignited by pressure
2 8 without the presence of an electric spark, and which meets the
2 9 specifications provided in section 214A.2.
2 10 NEW SUBSECTION. 1I. "E=85 gasoline" means ethanol blended
2 11 gasoline formulated with a minimum percentage of between
2 12 seventy=five and eighty=five percent by volume of ethanol, if
2 13 the formulation meets the standards provided in section
2 14 214A.2.
2 15 NEW SUBSECTION. 1J. "Ethanol" means ethyl alcohol that is
2 16 denatured as required in 23 C.F.R., pts. 20 and 21, for use as
2 17 an oxygenate in gasoline.
2 18 NEW SUBSECTION. 1K. "Ethanol blended gasoline" means a
2 19 formulation of gasoline which is a liquid petroleum product
2 20 blended with ethanol, if the formulation meets the standards
2 21 provided in section 214A.2.
2 22 NEW SUBSECTION. 1L. "Gasoline" means any liquid product
2 23 prepared, advertised, offered for sale or sold for use as, or
2 24 commonly and commercially used as, motor fuel for use in a
2 25 spark=ignition, internal combustion engine, and which meets
2 26 the specifications provided in section 214A.2.
2 27 NEW SUBSECTION. 2A. "Motor fuel pump" means the same as
2 28 defined in section 214.1.
2 29 NEW SUBSECTION. 5A. "Renewable fuel" means a combustible
2 30 liquid derived from grain starch, oilseed, animal fat, or
2 31 other biomass; or produced from a biogas source, including any
2 32 nonfossilized decaying organic matter which is capable of
2 33 powering machinery, including but not limited to an engine or
2 34 power plant. Renewable fuel includes but is not limited to
2 35 ethanol blended gasoline, biodiesel, or biodiesel blended fuel
3 1 meeting the standards provided in section 214A.2.
3 2 NEW SUBSECTION. 5B. "Renewable fuel producer" means a
3 3 person engaged in the production of any of the following:
3 4 a. Ethanol for use as a distillate in ethanol blended
3 5 gasoline.
3 6 b. Biodiesel for use as a motor fuel or as a distillate in
3 7 biodiesel blended fuel.
3 8 NEW SUBSECTION. 7A. "Service station" means each
3 9 geographic location in this state where a retail dealer sells
3 10 and dispenses motor fuel on a retail basis.
3 11 Sec. 2. Section 214A.1, subsection 2, Code 2005, is
3 12 amended to read as follows:
3 13 2. "Motor vehicle fuel" means a substance or combination
3 14 of substances which is intended to be or is capable of being
3 15 used for the purpose of propelling or running by combustion
3 16 any of operating an internal combustion engine, including but
3 17 not limited to a motor vehicle, and is kept for sale or sold
3 18 for that purpose. The products commonly known as kerosene and
3 19 distillate or petroleum products of lower gravity (Baume
3 20 scale), when not used to propel a motor vehicle or for
3 21 compounding or combining with a motor vehicle fuel, are exempt
3 22 from this chapter except as provided in section 214A.2A.
3 23 Sec. 3. Section 214A.1, subsections 6 and 8, Code 2005,
3 24 are amended by striking the subsections and inserting in lieu
3 25 thereof the following:
3 26 6. "Retail dealer" means a person who operates a place of
3 27 business where motor fuel is stored and dispensed from a motor
3 28 fuel pump for sale on a retail basis, including a service
3 29 station or mobile location.
3 30 8. "Wholesale dealer" means a person, other than a retail
3 31 dealer, who operates a place of business where motor fuel is
3 32 stored and dispensed for sale in this state, including a
3 33 permanent or mobile location.
3 34 Sec. 4. NEW SECTION. 214A.1A PRODUCTION STANDARDS ==
3 35 ACCREDITATION.
4 1 A quality standards program for renewable fuel producers is
4 2 established. A renewable fuel producer shall not sell
4 3 biodiesel or biodiesel blended fuel in this state, and a
4 4 dealer shall not purchase biodiesel or biodiesel blended fuel
4 5 from a renewable fuel manufacturer, unless the renewable fuel
4 6 producer is accredited as required under the program. The
4 7 department, in consultation with the committee, shall certify
4 8 an accreditation service to administer the program. The
4 9 accreditation service shall perform a formal review and audit
4 10 of the capacity and commitment of the renewable fuel producer
4 11 to produce or market biodiesel or biodiesel blended fuel in a
4 12 manner and according to procedures that meet the program
4 13 standards for quality, including A.S.T.M. international
4 14 specifications and requirements for the storage, sampling,
4 15 testing, blending, shipping, and distribution of biodiesel and
4 16 biodiesel blended fuel as established by the accreditation
4 17 service.
4 18 Sec. 5. Section 214A.2, subsection 1, Code 2005, is
4 19 amended to read as follows:
4 20 1. The secretary department shall adopt rules pursuant to
4 21 chapter 17A for carrying out this chapter. The rules may
4 22 include, but are not limited to, specifications relating to
4 23 motor fuel or oxygenate octane enhancers, including but not
4 24 limited to renewable fuel such as ethanol blended gasoline,
4 25 biodiesel, biodiesel blended fuel, and motor fuel components
4 26 such as an oxygenate or other additive. In the interest of
4 27 uniformity, the secretary department shall adopt by reference
4 28 or otherwise other specifications relating to tests and
4 29 standards for motor fuel or oxygenate octane enhancers
4 30 including renewable fuel and motor fuel components,
4 31 established by the United States environmental protection
4 32 agency or A.S.T.M. (American society for testing and
4 33 materials) international, unless the secretary determines
4 34 those specifications are inconsistent with this chapter or are
4 35 not appropriate to the conditions which exist in this state.
5 1 In adopting standards for a renewable fuel, the department
5 2 shall consult with the committee.
5 3 Sec. 6. Section 214A.2, Code 2005, is amended by adding
5 4 the following new subsection:
5 5 NEW SUBSECTION. 2A. a. For motor fuel advertised for
5 6 sale or sold as gasoline by a dealer, the motor fuel must meet
5 7 registration requirements for that type of motor fuel and its
5 8 additives established by the United States environmental
5 9 protection agency including as provided under 42 U.S.C. }
5 10 7545.
5 11 b. If the motor fuel is advertised for sale or sold as
5 12 ethanol blended gasoline, the motor fuel must comply with
5 13 departmental standards which to every extent feasible shall
5 14 comply with specifications for ethanol blended gasoline
5 15 adopted by A.S.T.M. international. For ethanol blended
5 16 gasoline all of the following shall apply:
5 17 (1) For ethanol blended gasoline other than E=85 gasoline,
5 18 at least ten percent of the gasoline by volume must be
5 19 ethanol.
5 20 (2) For E=85 gasoline all of the following must apply:
5 21 (a) From the first day of April until the last day of
5 22 October, at least eighty=five percent of the gasoline by
5 23 volume must be ethanol.
5 24 (b) From the first day of November until the last day of
5 25 March, at least seventy=five percent of the gasoline by volume
5 26 must be ethanol.
5 27 (3) In calculating the percentage of ethanol required for
5 28 the formulation of ethanol blended gasoline fuel, a percentage
5 29 of a denaturant or contaminants permitted in the ethanol
5 30 blended gasoline may be excluded as provided by rules adopted
5 31 by the department.
5 32 Sec. 7. Section 214A.2, subsection 3, Code 2005, is
5 33 amended by striking the subsection and inserting in lieu
5 34 thereof the following:
5 35 3. a. For motor fuel advertised for sale or sold as
6 1 biodiesel or biodiesel blended fuel by a dealer, the motor
6 2 fuel must meet registration requirements for that type of
6 3 motor fuel and its additives established by the United States
6 4 environmental protection agency including as provided under 42
6 5 U.S.C. } 7545.
6 6 b. Biodiesel shall be produced by a renewable fuel
6 7 producer accredited pursuant to the quality standards program
6 8 for renewable fuel producers as provided in section 214A.1A.
6 9 c. The motor fuel must comply with departmental standards
6 10 which to every extent feasible shall comply with
6 11 specifications adopted by A.S.T.M. international for biodiesel
6 12 or biodiesel blended fuel.
6 13 (1) The department shall adopt standards for biodiesel
6 14 blended fuel, including B=2 biodiesel blended fuel, B=5
6 15 biodiesel blended fuel, and B=20 biodiesel blended fuel. At
6 16 least two percent of biodiesel blended fuel by volume must be
6 17 biodiesel.
6 18 (2) In calculating the percentage of biodiesel required
6 19 for the formulation of biodiesel blended fuel, a percentage of
6 20 a denaturant or contaminants permitted in the biodiesel
6 21 blended fuel may be excluded as provided by rules adopted by
6 22 the department.
6 23 Sec. 8. Section 214A.2A, Code 2005, is amended to read as
6 24 follows:
6 25 214A.2A KEROSENE LABELING.
6 26 1. Fuel which is sold or is kept, offered, or exposed for
6 27 sale as kerosene shall be labeled as kerosene. The label
6 28 shall include the word "kerosene" and a designation as either
6 29 "K1" or "K2", and shall indicate that the kerosene is in
6 30 compliance with the standard specification adopted by the
6 31 A.S.T.M. in international specification D=3699 (1982).
6 32 2. A product commonly known as kerosene and distillate or
6 33 a petroleum product of lower gravity (Baume scale), when not
6 34 used to propel a motor vehicle or for compounding or combining
6 35 with a motor fuel, are exempt from this chapter except as
7 1 provided in this section.
7 2 Sec. 9. Section 214A.3, Code 2005, is amended to read as
7 3 follows:
7 4 214A.3 FALSE REPRESENTATIONS ADVERTISING.
7 5 A person for purposes of selling shall not falsely
7 6 represent do any of the following:
7 7 1. Falsely advertise the quality or kind of any motor
7 8 vehicle fuel or an oxygenate octane enhancer or add which may
7 9 be added to motor fuel.
7 10 2. Falsely advertise that a motor fuel is a renewable
7 11 fuel.
7 12 a. The person shall not advertise the sale of motor fuel
7 13 using the letter "E" followed by a number, such as "E=10" or
7 14 "E=85", or use the term "ethanol", "ethanol blend", or use any
7 15 derivative, plural, or compound of any such term unless the
7 16 motor fuel meets the standards provided in section 214A.2.
7 17 b. The person shall not advertise the sale of motor fuel
7 18 using the letter "B" followed by a number, such as "B=2", "B=
7 19 5", or "B=20", or use the term "biodiesel", "biodiesel blend",
7 20 or use any derivative, plural, or compound of any such term
7 21 unless the motor fuel meets the standards provided in section
7 22 214A.2.
7 23 3. Add a coloring matter thereto to motor vehicle fuel for
7 24 the purpose of misleading the public as to its quality.
7 25 DIVISION II
7 26 PETROLEUM REPLACEMENT
7 27 Sec. 10. Section 15G.110, Code Supplement 2005, is amended
7 28 to read as follows:
7 29 15G.110 GENERAL FUND APPROPRIATION == GROW IOWA VALUES
7 30 FUND.
7 31 1. For the fiscal period year beginning July 1, 2005, and
7 32 ending June 30, 2015 2006, there is appropriated to the
7 33 department of economic development each fiscal year fifty
7 34 million dollars from the general fund of the state for deposit
7 35 in the grow Iowa values fund.
8 1 2. For the fiscal period beginning July 1, 2006, and
8 2 ending June 30, 2015, there is appropriated to the department
8 3 of economic development each fiscal year forty=five million
8 4 dollars from the general fund of the state for deposit in the
8 5 grow Iowa values fund.
8 6 Sec. 11. Section 15G.111, subsection 1, paragraph a, Code
8 7 Supplement 2005, is amended to read as follows:
8 8 a. For the fiscal period beginning July 1, 2005, and
8 9 ending June 30, 2015, there is appropriated each fiscal year
8 10 from the grow Iowa values fund created in section 15G.108, to
8 11 the following amounts for the purposes designated:
8 12 (1) For the fiscal year beginning July 1, 2005, and ending
8 13 June 30, 2006, to the department of economic development
8 14 thirty=five million dollars for programs administered by the
8 15 department of economic development as provided in this
8 16 section.
8 17 (2) For the remainder of the fiscal period, to the
8 18 department of economic development thirty million dollars for
8 19 programs administered by the department of economic
8 20 development as provided in this section.
8 21 Sec. 12. Section 452A.2, subsection 2, Code Supplement
8 22 2005, is amended by striking the subsection and inserting in
8 23 lieu thereof the following:
8 24 2. "Biodiesel" and "biodiesel blended fuel" mean the same
8 25 as defined in section 214A.1.
8 26 Sec. 13. Section 452A.2, subsection 3, Code Supplement
8 27 2005, is amended to read as follows:
8 28 3. "Blender" means a person who owns and blends alcohol
8 29 ethanol with gasoline to produce ethanol blended gasoline and
8 30 blends the product at a nonterminal location. The blender
8 31 person is not restricted to blending alcohol ethanol with
8 32 gasoline. Products blended with gasoline other than grain
8 33 alcohol ethanol are taxed as gasoline. "Blender" also means a
8 34 person blending two or more special fuel products at a
8 35 nonterminal location where the tax has not been paid on all of
9 1 the products blended. This blend is taxed as a special fuel.
9 2 Sec. 14. Section 452A.2, Code Supplement 2005, is amended
9 3 by adding the following new subsections:
9 4 NEW SUBSECTION. 9A. "E=85 gasoline" means the same as
9 5 defined in section 214A.1.
9 6 NEW SUBSECTION. 13A. "Gasoline" means the same as defined
9 7 in section 214A.1.
9 8 NEW SUBSECTION. 19A. "Motor fuel pump" means the same as
9 9 defined in section 214.1.
9 10 NEW SUBSECTION. 19B. "Motor fuel storage and dispensing
9 11 infrastructure" or "infrastructure" means a motor fuel storage
9 12 tank and motor fuel pumps necessary to keep and dispense motor
9 13 fuel at a service station, including but not limited to all
9 14 associated equipment, dispensers, pumps, pipes, hoses, tubes,
9 15 lines, fittings, valves, filters, seals, and covers.
9 16 NEW SUBSECTION. 19C. "Motor fuel storage tank" or "tank"
9 17 means an underground storage container or a combination of
9 18 such containers which are designed and used to keep an
9 19 accumulation of gasoline at a service station.
9 20 NEW SUBSECTION. 24A. "Retail dealer" means the same as
9 21 defined in section 214A.1.
9 22 NEW SUBSECTION. 24B. "Service station" means the same as
9 23 defined in section 214A.1.
9 24 Sec. 15. Section 452A.2, subsection 11, Code Supplement
9 25 2005, is amended to read as follows:
9 26 11. "Ethanol blended gasoline" means motor fuel containing
9 27 at least ten percent alcohol distilled from cereal grains the
9 28 same as defined in section 214A.1.
9 29 Sec. 16. Section 452A.2, subsection 19, unnumbered
9 30 paragraph 1, Code Supplement 2005, is amended to read as
9 31 follows:
9 32 "Motor fuel" means both motor fuel as defined in section
9 33 214A.1 and includes all of the following:
9 34 Sec. 17. Section 452A.2, subsection 21, Code Supplement
9 35 2005, is amended to read as follows:
10 1 21. "Nonterminal storage facility" means a facility where
10 2 motor fuel or special fuel, other than liquefied petroleum
10 3 gas, is stored that is not supplied by a pipeline or a marine
10 4 vessel. "Nonterminal storage facility" includes a facility
10 5 that manufactures products such as alcohol ethanol as defined
10 6 in section 214A.1, biofuel, blend stocks, or additives which
10 7 may be used as motor fuel or special fuel, other than
10 8 liquefied petroleum gas, for operating motor vehicles or
10 9 aircraft.
10 10 DIVISION II
10 11 PETROLEUM REPLACEMENT INITIATIVE
10 12 PART A
10 13 STATE PETROLEUM REPLACEMENT GOALS
10 14 Sec. 18. NEW SECTION. 452A.31 RENEWABLE FUELS SOLD AND
10 15 DISPENSED DURING A DETERMINATION PERIOD.
10 16 1. For each determination period beginning January 1 and
10 17 ending December 31, the department shall obtain information
10 18 for ethanol blended gasoline which has been distributed in
10 19 this state, including information required to calculate all of
10 20 the following:
10 21 a. The total number of gallons of ethanol which is sold
10 22 and dispensed as a formulation of ethanol blended gasoline
10 23 from motor fuel pumps located at all service stations in this
10 24 state. The department shall include in its calculation all of
10 25 the following:
10 26 (1) The distribution percentage which is the number of
10 27 gallons of ethanol blended gasoline that is sold and dispensed
10 28 from motor fuel pumps located at all service stations in this
10 29 state as expressed as a percentage of the total number of
10 30 gallons of gasoline sold and dispensed from motor pumps
10 31 located at all service stations in this state, including for
10 32 use in determining the excise tax rate for gasoline as
10 33 provided in section 452A.3.
10 34 (2) The aggregate distribution percentage which is the
10 35 total number of gallons of ethanol which is sold and dispensed
11 1 as a formulation of ethanol blended gasoline from motor fuel
11 2 pumps located at all service stations in this state as
11 3 expressed as a percentage of the total number of gallons of
11 4 gasoline sold and dispensed from all motor fuel pumps in this
11 5 state for use in determining whether the state has met a
11 6 petroleum replacement goal pursuant to section 452A.32.
11 7 (3) The total number of gallons of E=85 gasoline which is
11 8 sold and dispensed from motor fuel pumps located at all
11 9 service stations in this state.
11 10 b. The total number of gallons of ethanol which is sold
11 11 and dispensed as a formulation of ethanol blended gasoline
11 12 from motor fuel pumps owned or operated by each retail dealer
11 13 in this state including for purposes of determining the
11 14 ethanol blended gasoline tax credit as provided in section
11 15 422.11C or 422.33.
11 16 c. The total number of gallons of E=85 gasoline which is
11 17 sold and dispensed from motor fuel pumps owned or operated by
11 18 each retail dealer in this state. The calculation shall
11 19 include the total number of gallons of E=85 gasoline which is
11 20 sold and dispensed from motor fuel pumps at each service
11 21 station which is owned by a retail dealer in this state
11 22 including for purposes of determining the E=85 gasoline tax
11 23 credit as provided in sections 422.11M and 422.33.
11 24 2. For each determination period beginning January 1 and
11 25 ending December 31, the department shall obtain information
11 26 for biodiesel blended fuel which has been distributed in this
11 27 state, including information required to calculate all of the
11 28 following:
11 29 a. The total number of gallons of biodiesel which is sold
11 30 and dispensed as a formulation of biodiesel blended fuel from
11 31 motor fuel pumps located at all service stations in this
11 32 state.
11 33 b. The total number of gallons of biodiesel which is sold
11 34 and dispensed as a formulation of biodiesel blended fuel from
11 35 motor fuel pumps owned or operated by each retail dealer in
12 1 this state including for purposes of determining the biodiesel
12 2 blended fuel tax credit as provided in section 422.11N or
12 3 422.33. The calculation shall include the total number of
12 4 gallons of biodiesel blended fuel which is sold and dispensed
12 5 from motor fuel pumps at each service station which is owned
12 6 by a retail dealer in this state.
12 7 Sec. 19. NEW SECTION. 452A.32 PETROLEUM REPLACEMENT
12 8 GOALS.
12 9 1. Petroleum replacement goals are established based on
12 10 aggregate distribution percentages calculated by the
12 11 department pursuant to section 452A.31.
12 12 a. On January 1, 2010, the petroleum replacement goal is
12 13 ten percent.
12 14 b. On January 1, 2015, the petroleum replacement goal is
12 15 fifteen percent.
12 16 c. On January 1, 2020, the petroleum replacement goal is
12 17 twenty percent.
12 18 2. The department of revenue and the department of
12 19 agriculture and land stewardship, in cooperation with the
12 20 renewable fuels and coproducts advisory committee shall
12 21 monitor the state's progress in meeting the petroleum
12 22 replacement goals.
12 23 Sec. 20. NEW SECTION. 452A.33 RENEWABLE FUELS SOLD AND
12 24 DISPENSED DURING A DETERMINATION PERIOD == REPORT.
12 25 On or before February 1 following a determination period as
12 26 provided in section 452A.31, the department shall prepare a
12 27 report which compiles the information as provided in section
12 28 452A.31 to the governor, the department of agriculture and
12 29 land stewardship, and the fiscal services division of the
12 30 legislative services agency. The report shall project the
12 31 total number of gallons of ethanol which will be sold and
12 32 dispensed as a formulation of ethanol blended gasoline from
12 33 motor fuel pumps located at all service stations in this state
12 34 for each future determination period until the applicable
12 35 petroleum replacement goal is met as provided in section
13 1 452A.32. The report shall predict when whether the applicable
13 2 petroleum replacement goal will be met and the amount of
13 3 additional ethanol required to be sold and dispensed from all
13 4 motor fuel pumps located at all service stations in this state
13 5 in order to meet the petroleum replacement goal.
13 6 PART B
13 7 E=85 GASOLINE INFRASTRUCTURE
13 8 Sec. 21. NEW SECTION. 452A.41 E=85 GASOLINE
13 9 INFRASTRUCTURE FUND == GENERAL FUND APPROPRIATION.
13 10 For the fiscal period beginning July 1, 2006, and ending
13 11 June 30, 2015, there is appropriated to the department each
13 12 fiscal year from the general fund of the state five million
13 13 dollars for deposit in the E=85 gasoline infrastructure fund
13 14 as provided in section 452A.42.
13 15 Sec. 22. NEW SECTION. 452A.42 E=85 GASOLINE
13 16 INFRASTRUCTURE FUND.
13 17 1. An E=85 gasoline infrastructure fund is created in the
13 18 state treasury under the control of the department. The fund
13 19 is separate from the general fund of the state.
13 20 2. Moneys in the E=85 gasoline infrastructure fund are
13 21 appropriated to the department exclusively to support the E=
13 22 85 gasoline infrastructure program as provided in section
13 23 452A.43. Moneys in the fund shall not be transferred, used,
13 24 obligated, appropriated, or otherwise encumbered except as to
13 25 award grants under the program.
13 26 3. a. The recapture of moneys awarded pursuant to the
13 27 program and the payment of any monetary penalty shall be
13 28 deposited in the E=85 gasoline infrastructure fund.
13 29 b. Notwithstanding section 8.33, any unexpended balance in
13 30 the fund at the end of the fiscal year shall be retained in
13 31 the fund.
13 32 c. Notwithstanding section 12C.7, subsection 2, interest,
13 33 earnings on investments, or time deposits of the moneys in the
13 34 fund shall be credited to the fund.
13 35 Sec. 23. NEW SECTION. 452A.43 E=85 GASOLINE
14 1 INFRASTRUCTURE PROGRAM.
14 2 The department shall establish and administer an E=85
14 3 gasoline infrastructure program as follows:
14 4 1. The purpose of the program is to improve a service
14 5 station by installing, replacing, or converting motor fuel
14 6 storage and dispensing infrastructure. The infrastructure
14 7 must be designed and shall be used exclusively to store and
14 8 dispense E=85 gasoline on the premises of service stations
14 9 operated by retail dealers.
14 10 2. The department shall award financial incentives to a
14 11 person participating in the program. In order to be eligible
14 12 to participate in the program all of the following must apply:
14 13 a. The person must be an owner or operator of the service
14 14 station.
14 15 b. The person must apply to the department in a manner and
14 16 according to procedures required by the department. The
14 17 application must contain all information required by the
14 18 department and shall at least include all of the following:
14 19 (1) The name of the participating person and the address
14 20 of the service station to be improved.
14 21 (2) A detailed description of the infrastructure that is
14 22 installed, replaced, or converted, including but not limited
14 23 to the model number of each installed, replaced, or converted
14 24 motor fuel storage tank if available.
14 25 (3) A statement describing how the service station was
14 26 improved, the total estimated cost of the planned improvement,
14 27 and the date when the infrastructure was or will be first used
14 28 to store and dispense E=85 gasoline.
14 29 (4) A statement by the installer of the infrastructure
14 30 certifying that the service station has been improved, and the
14 31 total costs of the improvements.
14 32 (5) A statement by the participating person certifying
14 33 that the infrastructure shall not be used to store or dispense
14 34 motor fuel other than E=85 gasoline, unless granted a waiver
14 35 by the department pursuant to this section.
15 1 3. A service station which is improved using financial
15 2 incentives must comply with federal and state standards
15 3 governing new or upgraded motor fuel storage tanks used to
15 4 store and dispense E=85 gasoline. A site classified as a no
15 5 further action site pursuant to a certificate issued by the
15 6 department under section 455B.474 shall retain its
15 7 classification following modifications necessary to store and
15 8 dispense E=85 gasoline and the owner or operator shall not be
15 9 required to perform a new site assessment unless the site
15 10 causes a clear, present, and impending danger to the public
15 11 health or the environment.
15 12 4. The department shall award financial incentives to a
15 13 participating person pursuant to an agreement executed by the
15 14 department and the participating person based on the person's
15 15 application and in compliance with this section and rules
15 16 adopted by the department, in a manner and according to
15 17 procedures required by the department.
15 18 a. The financial incentives shall be in the form of a
15 19 grant as provided in an agreement executed by the
15 20 participating person and the department. The department shall
15 21 immediately make the award unless the department has cause to
15 22 believe that the application is improper. The department
15 23 shall not award more than twenty=five thousand dollars to
15 24 improve a service station as provided in this section. The
15 25 department may make multiple awards to install, replace, or
15 26 convert infrastructure at the service station so long as the
15 27 total amount of the awards in all years for the improvements
15 28 is not more than twenty=five thousand dollars.
15 29 b. This section does not prohibit the department from
15 30 awarding financial incentives to a participating person who
15 31 does any of the following:
15 32 (1) Uses the financial incentives to improve multiple
15 33 service stations.
15 34 (2) Installs, replaces, or converts infrastructure
15 35 associated with more than one motor fuel storage tank or motor
16 1 fuel pump at the same service station.
16 2 c. A participating person shall not use the infrastructure
16 3 to store or dispense motor fuel other than E=85 gasoline,
16 4 unless one of the following applies:
16 5 (1) The participating person is granted a waiver by the
16 6 department. The participating person shall store or dispense
16 7 the motor fuel according to the terms and conditions of the
16 8 waiver.
16 9 (2) The department is immediately repaid the total amount
16 10 of moneys awarded to the participating person together with a
16 11 monetary penalty equal to twenty=five percent of that awarded
16 12 amount.
16 13 d. A participating person who acts in violation of an
16 14 agreement executed with the department pursuant to this
16 15 section is subject to a civil penalty of not more than one
16 16 thousand dollars a day for each day of the violation. The
16 17 civil penalty shall be deposited into the general fund of the
16 18 state.
16 19 DIVISION III
16 20 RENEWABLE FUEL TAX CREDIT FOR RETAIL DEALERS
16 21 Sec. 24. Section 422.11C, subsection 1, paragraphs a
16 22 through g, Code 2005, are amended by striking the paragraphs
16 23 and inserting in lieu thereof the following:
16 24 a. "E=85 gasoline", "ethanol blended gasoline",
16 25 "gasoline", "retail dealer", and "service station" mean the
16 26 same as defined in section 214A.1.
16 27 b. "Motor fuel pump" means the same as motor vehicle fuel
16 28 pump as defined in section 214.1.
16 29 c. "Sell" means to sell on a retail basis.
16 30 d. "Tax credit" means the designated ethanol blended
16 31 gasoline tax credit as provided in this section.
16 32 Sec. 25. Section 422.11C, subsection 2, paragraph b, Code
16 33 2005, is amended to read as follows:
16 34 b. The taxpayer operates at least one service station at
16 35 which more than sixty percent of the total gallons of gasoline
17 1 sold and dispensed through one or more metered motor fuel
17 2 pumps by the taxpayer in the tax year is ethanol blended
17 3 gasoline.
17 4 Sec. 26. Section 422.11C, subsection 3, Code 2005, is
17 5 amended to read as follows:
17 6 3. a. The tax credit shall be calculated separately for
17 7 each service station site operated by the taxpayer.
17 8 b. The amount of the tax credit for each eligible service
17 9 station is two and one=half cents multiplied by the total
17 10 number of gallons of ethanol blended gasoline sold and
17 11 dispensed through all metered motor fuel pumps located at that
17 12 service station during the tax year in excess of sixty percent
17 13 of all gasoline sold and dispensed through metered motor fuel
17 14 pumps at that service station during the tax year.
17 15 c. The tax credit is not allowed for a gallon of E=85
17 16 gasoline sold and distributed through a motor fuel pump
17 17 located at a service station if the taxpayer claims an E=85
17 18 gasoline tax credit for that same gallon of E=85 gasoline as
17 19 provided in section 422.11M in the same tax year.
17 20 Sec. 27. NEW SECTION. 422.11M E=85 GASOLINE TAX CREDIT.
17 21 1. As used in this section, unless the context otherwise
17 22 requires:
17 23 a. "E=85 gasoline", "retail dealer", and "service station"
17 24 mean the same as defined in section 214A.1.
17 25 b. "Motor fuel pump" means the same as defined in section
17 26 214A.1.
17 27 c. "Sell" means to sell on a retail basis.
17 28 d. "Tax credit" means an E=85 gasoline tax credit as
17 29 provided in this section.
17 30 2. The taxes imposed under this division, less the credits
17 31 allowed under sections 422.12 and 422.12B, shall be reduced by
17 32 the amount of the E=85 gasoline tax credit for each tax year
17 33 that the taxpayer is eligible to claim under this section.
17 34 a. In order to be eligible, all of the following must
17 35 apply:
18 1 (1) The taxpayer is a retail dealer who owns or operates
18 2 at least one service station at which E=85 gasoline is sold
18 3 and dispensed through a motor fuel pump in the tax year in
18 4 which the tax credit is claimed.
18 5 (2) The taxpayer complies with requirements of the
18 6 department established to administer this section.
18 7 b. The tax credit shall be calculated for each service
18 8 station owned or operated by the taxpayer in the tax year in
18 9 which the tax credit is claimed. The amount of the tax credit
18 10 is calculated by multiplying a rate of ten cents by the total
18 11 number of gallons of E=85 gasoline sold and dispensed through
18 12 all motor fuel pumps located at that service station during
18 13 the tax year.
18 14 3. Any credit in excess of the taxpayer's tax liability
18 15 shall be refunded. In lieu of claiming a refund, the taxpayer
18 16 may elect to have the overpayment shown on the taxpayer's
18 17 final, completed return credited to the tax liability for the
18 18 following tax year.
18 19 4. An individual may claim the tax credit allowed a
18 20 partnership, limited liability company, S corporation, estate,
18 21 or trust electing to have the income taxed directly to the
18 22 individual. The amount claimed by the individual shall be
18 23 based upon the pro rata share of the individual's earnings of
18 24 the partnership, limited liability company, S corporation,
18 25 estate, or trust.
18 26 5. This section is repealed January 1, 2016.
18 27 Sec. 28. NEW SECTION. 422.11N BIODIESEL BLENDED FUEL TAX
18 28 CREDIT.
18 29 1. As used in this section, unless the context otherwise
18 30 requires:
18 31 a. "Biodiesel blended fuel", "diesel fuel", "retail
18 32 dealer", and "service station" mean the same as defined in
18 33 section 214A.1.
18 34 b. "Motor fuel pump" means the same as defined in section
18 35 214.1.
19 1 c. "Sell" means to sell on a retail basis.
19 2 d. "Tax credit" means a biodiesel blended fuel tax credit
19 3 as provided in this section.
19 4 2. The taxes imposed under this division, less the credits
19 5 allowed under sections 422.12 and 422.12B, shall be reduced by
19 6 the amount of the biodiesel blended fuel tax credit for each
19 7 tax year that the taxpayer is eligible to claim under this
19 8 subsection.
19 9 a. In order to be eligible, all of the following must
19 10 apply:
19 11 (1) The taxpayer is a retail dealer who owns or operates
19 12 at least one service station at which biodiesel blended fuel
19 13 is sold and dispensed through a motor fuel pump in the tax
19 14 year in which the tax credit is claimed.
19 15 (2) The taxpayer complies with requirements of the
19 16 department established to administer this section.
19 17 b. The tax credit shall be calculated for each service
19 18 station owned or operated by the taxpayer in the tax year in
19 19 which the tax credit is claimed. The tax credit shall apply
19 20 to biodiesel blended fuel formulated with a minimum percentage
19 21 of two percent by volume of biodiesel, if the formulation
19 22 meets the standards provided in section 214A.2. The amount of
19 23 the tax credit is calculated by multiplying a designated rate
19 24 by the total number of gallons of biodiesel blended fuel sold
19 25 and dispensed through all motor fuel pumps located at that
19 26 service station during the tax year. The designated rate is
19 27 as follows:
19 28 (1) Three cents per gallon of biodiesel for all gallons of
19 29 biodiesel blended fuel which is fifty percent or more but less
19 30 than sixty percent of all diesel fuel sold and dispensed
19 31 through the motor fuel pumps at the service station.
19 32 (2) Four cents per gallon of biodiesel for all gallons of
19 33 biodiesel blended fuel which is sixty percent or more but less
19 34 than seventy percent of all diesel fuel sold and dispensed
19 35 through the motor fuel pumps at the service station.
20 1 (3) Five cents per gallon of biodiesel for all gallons of
20 2 biodiesel blended fuel which is seventy percent or more of all
20 3 diesel fuel sold and dispensed through the motor fuel pumps at
20 4 the service station.
20 5 3. Any credit in excess of the taxpayer's tax liability
20 6 shall be refunded. In lieu of claiming a refund, the taxpayer
20 7 may elect to have the overpayment shown on the taxpayer's
20 8 final, completed return credited to the tax liability for the
20 9 following tax year.
20 10 4. An individual may claim the tax credit allowed a
20 11 partnership, limited liability company, S corporation, estate,
20 12 or trust electing to have the income taxed directly to the
20 13 individual. The amount claimed by the individual shall be
20 14 based upon the pro rata share of the individual's earnings of
20 15 the partnership, limited liability company, S corporation,
20 16 estate, or trust.
20 17 5. This section is repealed January 1, 2012.
20 18 Sec. 29. Section 422.33, subsection 11, paragraph a,
20 19 subparagraph (1), Code Supplement 2005, is amended to read as
20 20 follows:
20 21 (1) "Ethanol "E=85 gasoline", "ethanol blended gasoline",
20 22 "gasoline", "metered pump", "motor fuel pump", "retail
20 23 dealer", "sell", and "service station" mean the same as
20 24 defined in section 422.11C.
20 25 Sec. 30. Section 422.33, subsection 11, paragraph b,
20 26 subparagraph (2), Code Supplement 2005, is amended to read as
20 27 follows:
20 28 (2) The taxpayer operates at least one service station at
20 29 which more than sixty percent of the total gallons of gasoline
20 30 sold and dispensed through one or more metered motor fuel
20 31 pumps by the taxpayer is ethanol blended gasoline.
20 32 Sec. 31. Section 422.33, subsection 11, paragraph c, Code
20 33 Supplement 2005, is amended to read as follows:
20 34 c. (1) The tax credit shall be calculated separately for
20 35 each service station site operated by the taxpayer.
21 1 (2) The amount of the tax credit for each eligible service
21 2 station is two and one=half cents multiplied by the total
21 3 number of gallons of ethanol blended gasoline sold and
21 4 dispensed through all metered motor fuel pumps located at that
21 5 service station during the tax year in excess of sixty percent
21 6 of all gasoline sold and dispensed through metered motor fuel
21 7 pumps at that service station during the tax year.
21 8 (3) The tax credit is not allowed for a gallon of E=85
21 9 gasoline sold and distributed through a motor fuel pump
21 10 located at a service station if the taxpayer claims an E=85
21 11 gasoline tax credit for that same gallon of E=85 gasoline as
21 12 provided in this section in the same tax year.
21 13 Sec. 32. Section 422.33, Code Supplement 2005, is amended
21 14 by adding the following new subsection:
21 15 NEW SUBSECTION. 11A. The taxes imposed under this
21 16 division shall be reduced by an E=85 gasoline tax credit for
21 17 each tax year that the taxpayer is eligible to claim the tax
21 18 credit under this subsection.
21 19 a. The taxpayer may claim the E=85 gasoline tax credit
21 20 according to the same requirements, for the same amount, and
21 21 calculated in the same manner, as provided for the E=85
21 22 gasoline tax credit pursuant to section 422.11M.
21 23 b. Any E=85 gasoline tax credit which is in excess of the
21 24 taxpayer's tax liability shall be refunded or may be shown on
21 25 the taxpayer's final, completed return credited to the tax
21 26 liability for the following tax year in the same manner as
21 27 provided in section 422.11M.
21 28 c. This subsection is repealed January 1, 2016.
21 29 Sec. 33. Section 422.33, Code Supplement 2005, is amended
21 30 by adding the following new subsection:
21 31 NEW SUBSECTION. 11B. The taxes imposed under this
21 32 division shall be reduced by a biodiesel blended fuel tax
21 33 credit for each tax year that the taxpayer is eligible to
21 34 claim the tax credit under this subsection.
21 35 a. The taxpayer may claim the biodiesel blended fuel tax
22 1 credit according to the same requirements, for the same
22 2 amount, and calculated in the same manner, as provided for the
22 3 biodiesel blended fuel tax credit pursuant to section 422.11N.
22 4 b. Any biodiesel blended fuel tax credit which is in
22 5 excess of the taxpayer's tax liability shall be refunded or
22 6 may be shown on the taxpayer's final, completed return
22 7 credited to the tax liability for the following tax year in
22 8 the same manner as provided in section 422.11N.
22 9 c. This subsection is repealed January 1, 2012.
22 10 Sec. 34. APPLICABILITY DATE. Sections 422.11M and
22 11 422.11N, as enacted in this Act, and section 422.33,
22 12 subsections 11A and 11B, as enacted in this Act, apply to tax
22 13 years beginning on or after January 1, 2007.
22 14 DIVISION IV
22 15 GOVERNMENT VEHICLES
22 16 Sec. 35. Section 8A.101, Code 2005, is amended by adding
22 17 the following new subsection:
22 18 NEW SUBSECTION. 3A. "E=85 gasoline", "gasoline", and
22 19 "motor vehicle fuel" mean the same as defined in section
22 20 214A.1.
22 21 Sec. 36. Section 8A.362, subsection 3, Code 2005, is
22 22 amended to read as follows:
22 23 3. The director shall provide for a record system for the
22 24 keeping of records of the total number of miles state=owned
22 25 motor vehicles are driven and the per=mile cost of operation
22 26 of each motor vehicle. Every state officer or employee shall
22 27 keep a record book to be furnished by the director in which
22 28 the officer or employee shall enter all purchases of gasoline,
22 29 lubricating oil, grease, and other incidental expense in the
22 30 operation of the motor vehicle assigned to the officer or
22 31 employee, giving the quantity and price of each purchase,
22 32 including the cost and nature of all repairs on the motor
22 33 vehicle. Each operator of a state=owned motor vehicle shall
22 34 promptly prepare a report at the end of each month on forms
22 35 furnished by the director and forwarded to the director,
23 1 giving the information the director may request in the report.
23 2 Each month the director shall compile the costs and mileage of
23 3 state=owned motor vehicles from the reports and keep a cost
23 4 history for each motor vehicle and the costs shall be reduced
23 5 to a cost=per=mile basis for each motor vehicle. The director
23 6 shall call to the attention of an elected official or the head
23 7 of any state agency to which a motor vehicle has been assigned
23 8 any evidence of the mishandling or misuse of a state=owned
23 9 motor vehicle which is called to the director's attention.
23 10 A motor vehicle operated under this subsection shall not
23 11 operate on gasoline other than gasoline blended with at least
23 12 ten percent ethanol, unless under emergency circumstances. A
23 13 state=issued credit card used to purchase gasoline shall not
23 14 be valid to purchase gasoline other than gasoline blended with
23 15 at least ten percent ethanol, if commercially available. The
23 16 motor vehicle shall also be affixed with a brightly visible
23 17 sticker which notifies the traveling public that the motor
23 18 vehicle is being operated on gasoline blended with ethanol.
23 19 However, the sticker is not required to be affixed to an
23 20 unmarked vehicle used for purposes of providing law
23 21 enforcement or security.
23 22 Sec. 37. Section 8A.362, subsection 4, paragraphs a and b,
23 23 Code 2005, are amended to read as follows:
23 24 a. The director shall provide for the purchase of all
23 25 motor vehicles for all branches of the state government as
23 26 part of the state fleet, except the department for the blind
23 27 pursuant to section 216B.3, the state department of
23 28 transportation pursuant to section 307.21, institutions under
23 29 the control of the state board of regents pursuant to section
23 30 262.25A, the department for the blind, and the department of
23 31 corrections pursuant to section 904.312A, or any other state
23 32 agency exempted by law.
23 33 (1) The director shall purchase new motor vehicles in
23 34 accordance with competitive bidding procedures for items or
23 35 services as provided in this subchapter.
24 1 (2) The director may purchase used or preowned motor
24 2 vehicles at governmental or dealer auctions if the purchase is
24 3 determined to be in the best interests of the state. In
24 4 purchasing a used or preowned motor vehicle which is a
24 5 gasoline powered passenger motor vehicle or light pickup
24 6 truck, the director shall provide a preference for the
24 7 purchase of a flexible fuel motor vehicle which is equipped
24 8 with an engine which operates using E=85 gasoline as defined
24 9 in section 214A.1.
24 10 b. The director department, and any other state agency,
24 11 which for purposes of this subsection includes but is not
24 12 limited to community colleges and institutions under the
24 13 control of the state board of regents, or local governmental
24 14 subdivisions purchasing new motor vehicles, shall purchase new
24 15 passenger motor vehicles and light pickup trucks so that the
24 16 average fuel efficiency for the fleet of new passenger motor
24 17 vehicles and light pickup trucks purchased in that year equals
24 18 or exceeds the average fuel economy standard for the motor
24 19 vehicles' model year as established by the United States
24 20 secretary of transportation under 15 U.S.C. } 2002. This
24 21 paragraph "b" does not apply to motor vehicles purchased for
24 22 law enforcement purposes or used for off=road maintenance
24 23 work, or work vehicles used to pull loaded trailers.
24 24 Sec. 38. Section 8A.362, Code 2005, is amended by adding
24 25 the following new subsection:
24 26 NEW SUBSECTION. 4A. For gasoline powered motor vehicles
24 27 which are part of the state fleet purchased by the director
24 28 pursuant to this section, all of the following shall apply:
24 29 a. Each new passenger motor vehicle or light pickup truck
24 30 purchased by the director shall be a flexible fuel motor
24 31 vehicle which is equipped with an engine which operates using
24 32 E=85 gasoline as defined in section 214A.1.
24 33 b. The following shall apply to a motor vehicle which is a
24 34 passenger motor vehicle or light pickup truck:
24 35 (1) Except as provided in subparagraph (2), the motor
25 1 vehicle shall only operate using ethanol blended gasoline,
25 2 unless under emergency circumstances. A state=issued credit
25 3 card used to purchase gasoline required to operate the motor
25 4 vehicle shall not be valid to purchase gasoline other than
25 5 ethanol blended gasoline, unless under emergency
25 6 circumstances.
25 7 (2) If the motor vehicle is a flexible fuel motor vehicle
25 8 equipped with an engine which operates using E=85 gasoline,
25 9 the motor vehicle shall only operate using E=85 gasoline,
25 10 unless under emergency circumstances or if E=85 gasoline is
25 11 not reasonably available. In that case, the motor vehicle
25 12 shall only operate using ethanol blended gasoline other than
25 13 E=85 gasoline as provided in subparagraph (1). A state=
25 14 issued credit card used to purchase gasoline required to
25 15 operate the motor vehicle shall not be valid to purchase
25 16 gasoline other than E=85 gasoline, unless under emergency
25 17 circumstances or if E=85 gasoline is not reasonably available.
25 18 In that case, a state=issued credit card used to purchase
25 19 gasoline required to operate the motor vehicle shall not be
25 20 valid to purchase gasoline other than as provided in
25 21 subparagraph (1).
25 22 c. (1) Except as provided in subparagraph (2), each motor
25 23 vehicle shall be affixed with a brightly visible sticker which
25 24 notifies the traveling public that the motor vehicle is being
25 25 operated using ethanol blended gasoline. If the motor vehicle
25 26 is a flexible fuel motor vehicle which is equipped with an
25 27 engine which operates using E=85 gasoline, the motor vehicle
25 28 shall be affixed with a brightly visible sticker notifying the
25 29 traveling public that the motor vehicle is being operated
25 30 using E=85 gasoline.
25 31 (2) A sticker as provided in subparagraph (1) is not
25 32 required to be affixed to an unmarked motor vehicle used for
25 33 purposes of providing law enforcement or security.
25 34 Sec. 39. Section 8A.362, subsection 5, Code 2005, is
25 35 amended to read as follows:
26 1 5. Of For motor vehicles which are part of the state fleet
26 2 purchased by the director pursuant to this section, all of the
26 3 following shall apply:
26 4 a. Except as provided in paragraph "b", of all of the new
26 5 passenger motor vehicles and light pickup trucks which are
26 6 part of the state fleet purchased by the director pursuant to
26 7 this section, a minimum of ten percent of all such vehicles
26 8 and trucks purchased motor vehicles shall be equipped with
26 9 engines which utilize alternative methods of propulsion
26 10 including but not limited to any of the following:
26 11 a. A flexible fuel, which is any of the following:
26 12 (1) A fuel blended with not more than fifteen percent
26 13 gasoline and at least eighty=five percent ethanol.
26 14 (2) (1) A fuel which is a mixture of diesel fuel and
26 15 processed soybean oil. At Flexible fuel motor vehicles which
26 16 are equipped with engines which operate using biodiesel or a
26 17 biodiesel blended fuel. A biodiesel blended fuel must be
26 18 formulated with at least twenty percent of the mixed fuel
26 19 biodiesel by volume must be processed soybean oil according to
26 20 standards required pursuant to section 214A.2.
26 21 (3) (2) A renewable fuel other than ethanol blended
26 22 gasoline, approved by the office of renewable fuels and
26 23 coproducts pursuant to section 159A.3.
26 24 b. (3) Compressed or liquefied natural gas.
26 25 c. (4) Propane gas.
26 26 d. (5) Solar energy.
26 27 e. (6) Electricity.
26 28 b. This subsection does The requirements provided in
26 29 paragraph "a" do not apply to vehicles and trucks motor
26 30 vehicles purchased and directly used for law enforcement or
26 31 purchased and used for off=road maintenance work or to pull
26 32 loaded trailers.
26 33 Sec. 40. Section 216B.3, subsection 16, Code 2005, is
26 34 amended by striking the subsection and inserting in lieu
26 35 thereof the following:
27 1 16. The commission shall purchase motor vehicles for the
27 2 department, and those motor vehicles shall be operated using
27 3 ethanol blended gasoline including E=85 gasoline or
27 4 alternative methods of propulsion according to the same
27 5 requirements and exceptions as provided in section 8A.362,
27 6 including but not limited to all of the following:
27 7 a. The commission's purchase of used or preowned motor
27 8 vehicles or new motor vehicles.
27 9 b. For the operation of gasoline powered motor vehicles,
27 10 all of the following:
27 11 (1) The use of ethanol blended gasoline, including E=85
27 12 gasoline.
27 13 (2) The purchase of ethanol blended gasoline including E=
27 14 85 gasoline by state=issued credit card.
27 15 (3) Affixing a brightly visible sticker to the motor
27 16 vehicle notifying the traveling public that the motor vehicle
27 17 is being operated using ethanol blended gasoline including E=
27 18 85 gasoline.
27 19 Sec. 41. Section 260C.19A, Code 2005, is amended by
27 20 striking the section and inserting in lieu thereof the
27 21 following:
27 22 260C.19A MOTOR VEHICLE PURCHASES == ALTERNATIVE FUEL
27 23 REQUIREMENTS.
27 24 The board of directors shall purchase motor vehicles for
27 25 its own use or for use under its direction to provide services
27 26 to a merged area, and those motor vehicles shall be operated
27 27 using ethanol blended gasoline including E=85 gasoline or
27 28 alternative methods of propulsion according to the same
27 29 requirements and exceptions as provided in section 8A.362,
27 30 including but not limited to all of the following:
27 31 1. The board's purchase of used or preowned motor vehicles
27 32 or new motor vehicles.
27 33 2. For the operation of gasoline powered motor vehicles,
27 34 all of the following:
27 35 a. The use of ethanol blended gasoline, including E=85
28 1 gasoline.
28 2 b. Affixing a brightly visible sticker to the motor
28 3 vehicle notifying the traveling public that the motor vehicle
28 4 is being operated using ethanol blended gasoline, including E=
28 5 85 gasoline.
28 6 Sec. 42. Section 262.25A, subsection 2, Code 2005, is
28 7 amended by striking the section and inserting in lieu thereof
28 8 the following:
28 9 2. An institution under the control of the state board of
28 10 regents shall purchase motor vehicles, and those motor
28 11 vehicles shall be operated using ethanol blended gasoline
28 12 including E=85 gasoline or alternative methods of propulsion
28 13 according to the same requirements and exceptions as provided
28 14 in section 8A.362, including but not limited to all of the
28 15 following:
28 16 a. The institution's purchase of used or preowned motor
28 17 vehicles or new motor vehicles.
28 18 b. For the operation of gasoline powered motor vehicles,
28 19 all of the following:
28 20 (1) The use of ethanol blended gasoline, including E=85
28 21 gasoline.
28 22 (2) The purchase of ethanol blended gasoline including E=
28 23 85 gasoline by state=issued credit card.
28 24 (3) Affixing a brightly visible sticker to the motor
28 25 vehicle notifying the traveling public that the motor vehicle
28 26 is being operated using ethanol blended gasoline, including E=
28 27 85 gasoline.
28 28 Sec. 43. Section 279.34, Code 2005, is amended by striking
28 29 the section and inserting in lieu thereof the following:
28 30 279.34 MOTOR VEHICLES REQUIRED TO OPERATE ON ETHANOL
28 31 BLENDED GASOLINE.
28 32 The board of directors shall purchase motor vehicles for
28 33 its own use or for use under its direction to provide services
28 34 to a school corporation, and those motor vehicles shall be
28 35 operated using ethanol blended gasoline including E=85
29 1 gasoline according to the same requirements and exceptions as
29 2 provided in section 8A.362, including but not limited to all
29 3 of the following:
29 4 1. The board's purchase of used or preowned motor vehicles
29 5 or new motor vehicles.
29 6 2. For the operation of motor vehicles, all of the
29 7 following:
29 8 a. The use of ethanol blended gasoline, including E=85
29 9 gasoline.
29 10 b. Affixing a brightly visible sticker to the motor
29 11 vehicle notifying the traveling public that the motor vehicle
29 12 is being operated using ethanol blended gasoline, including E=
29 13 85 gasoline.
29 14 Sec. 44. Section 307.21, subsection 4, paragraph d, Code
29 15 2005, is amended by striking the paragraph.
29 16 Sec. 45. Section 307.21, subsection 5, Code 2005, is
29 17 amended by striking the subsection.
29 18 Sec. 46. NEW SECTION. 307.21A MOTOR VEHICLE PURCHASES ==
29 19 ALTERNATIVE FUEL REQUIREMENTS.
29 20 The department's administrator of administrative services
29 21 shall purchase motor vehicles for the department, and those
29 22 motor vehicles shall be operated using ethanol blended
29 23 gasoline, including E=85 gasoline or alternative methods of
29 24 propulsion, according to the same requirements and exceptions
29 25 as provided in section 8A.362, including but not limited to
29 26 all of the following:
29 27 1. The administrator's purchase of used or preowned motor
29 28 vehicles or new motor vehicles.
29 29 2. For the operation of gasoline powered motor vehicles,
29 30 all of the following:
29 31 a. The use of ethanol blended gasoline, including E=85
29 32 gasoline.
29 33 b. Affixing a brightly visible sticker to the motor
29 34 vehicle notifying the traveling public that the motor vehicle
29 35 is being operated using ethanol blended gasoline, including E=
30 1 85 gasoline.
30 2 Sec. 47. Section 331.908, Code 2005, is amended by
30 3 striking the section and inserting in lieu thereof the
30 4 following:
30 5 331.908 MOTOR VEHICLE PURCHASES == ALTERNATIVE FUEL
30 6 REQUIREMENTS.
30 7 A county government, including the county board of
30 8 supervisors or an administrative unit of county government
30 9 under the direction of the board, may purchase motor vehicles
30 10 for the county, and those motor vehicles shall be operated
30 11 using ethanol blended gasoline, including E=85 gasoline,
30 12 according to the same requirements and exceptions as provided
30 13 in section 8A.362, including but not limited to all of the
30 14 following:
30 15 1. The county government's purchase of used or preowned
30 16 motor vehicles or new motor vehicles.
30 17 2. For the operation of motor vehicles, all of the
30 18 following:
30 19 a. The use of ethanol blended gasoline, including E=85
30 20 gasoline.
30 21 b. Affixing a brightly visible sticker to the motor
30 22 vehicle notifying the traveling public that the motor vehicle
30 23 is being operated using ethanol blended gasoline, including E=
30 24 85 gasoline.
30 25 Sec. 48. Section 364.20, Code 2005, is amended by striking
30 26 the section and inserting in lieu thereof the following:
30 27 364.20 MOTOR VEHICLE PURCHASES == ALTERNATIVE FUEL
30 28 REQUIREMENTS.
30 29 A city government may purchase motor vehicles for the city,
30 30 and those motor vehicles shall be operated using ethanol
30 31 blended gasoline, including E=85 gasoline, according to the
30 32 same requirements and exceptions as provided in section
30 33 8A.362, including but not limited to all of the following:
30 34 1. The city government's purchase of used or preowned
30 35 motor vehicles or new motor vehicles.
31 1 2. For the operation of motor vehicles, all of the
31 2 following:
31 3 a. The use of ethanol blended gasoline, including E=85
31 4 gasoline.
31 5 b. Affixing a brightly visible sticker to the motor
31 6 vehicle notifying the traveling public that the motor vehicle
31 7 is being operated using ethanol blended gasoline, including E=
31 8 85 gasoline.
31 9 Sec. 49. Section 904.312A, Code 2005, is amended by
31 10 striking the section and inserting in lieu thereof the
31 11 following:
31 12 904.312A MOTOR VEHICLE PURCHASES == ALTERNATIVE FUEL
31 13 REQUIREMENTS.
31 14 The director shall purchase motor vehicles for the
31 15 department, and those motor vehicles shall be operated using
31 16 ethanol blended gasoline, including E=85 gasoline or
31 17 alternative methods of propulsion, according to the same
31 18 requirements and exceptions as provided in section 8A.362,
31 19 including but not limited to all of the following:
31 20 1. The director's purchase of used or preowned motor
31 21 vehicles or new motor vehicles.
31 22 2. For the operation of gasoline powered motor vehicles,
31 23 all of the following:
31 24 a. The use of ethanol blended gasoline, including E=85
31 25 gasoline.
31 26 b. Affixing a brightly visible sticker to the motor
31 27 vehicle notifying the traveling public that the motor vehicle
31 28 is being operated using ethanol blended gasoline, including E=
31 29 85 gasoline.
31 30 DIVISION V
31 31 NOTICE TO THE TRAVELING PUBLIC
31 32 Sec. 50. Section 306C.11, subsection 5, Code 2005, is
31 33 amended by adding the following new paragraph:
31 34 NEW PARAGRAPH. h. Provisions for identifying a service
31 35 station that sells and dispenses E=85 gasoline as defined in
32 1 section 214A.1, and the proximate distance in miles to that
32 2 service station.
32 3 Sec. 51. Section 307.14, Code 2005, is amended to read as
32 4 follows:
32 5 307.14 OFFICIAL IOWA MAP.
32 6 The department shall publish a map of the state of Iowa.
32 7 1. At the request of a citizen of a particular city or
32 8 town, the department shall add the city or town to the
32 9 existing map of Iowa and identify the main road leading into
32 10 the city or town if the city or town meets two or more of the
32 11 following criteria:
32 12 1. a. Has a zip coded post office in the city or town.
32 13 2. b. Has a population of twenty=five or more.
32 14 3. c. Has a building on the national register of historic
32 15 places in the city or town.
32 16 4. d. Has an association with a public recreation area
32 17 managed by the department of natural resources in the city or
32 18 town.
32 19 5. e. Has a high school, grade school, private school,
32 20 church, or cemetery in the city or town.
32 21 6. f. Has a retail business in the city or town.
32 22 7. g. Has an annual festival or celebration.
32 23 2. The department shall to every extent feasible identify
32 24 each proximate location where a service station sells and
32 25 dispenses E=85 gasoline as defined in section 214A.1.
32 26 DIVISION VI
32 27 COORDINATING PROVISIONS == MISCELLANEOUS
32 28 Sec. 52. Section 15.401, Code Supplement 2005, is amended
32 29 to read as follows:
32 30 15.401 E=85 BLENDED GASOLINE RENEWABLE FUELS.
32 31 1. As used in this section, unless the context otherwise
32 32 requires, "biodiesel", "biodiesel blended fuel", "E=85
32 33 gasoline" and "service station" mean the same as defined in
32 34 section 214A.1.
32 35 2. The department shall provide a cost=share program for
33 1 financial incentives for the installation or conversion of
33 2 infrastructure used by service stations to do all of the
33 3 following:
33 4 a. sell Sell and dispense E=85 blended gasoline and for
33 5 the installation or conversion of.
33 6 b. Install or convert infrastructure required to establish
33 7 on=site and off=site terminal facilities that store biodiesel
33 8 or biodiesel blended fuel for distribution to service
33 9 stations.
33 10 3. The department shall provide for an addition of at
33 11 least thirty new or converted E=85 gasoline retail outlets and
33 12 four new or converted on=site or off=site terminal facilities
33 13 with a maximum expenditure of three hundred twenty=five
33 14 thousand dollars per year for the fiscal period beginning July
33 15 1, 2005, and ending June 30, 2008. The department may provide
33 16 for the marketing of these products in conjunction with this
33 17 infrastructure program.
33 18 Sec. 53. Section 159A.2, Code 2005, is amended by adding
33 19 the following new subsections:
33 20 NEW SUBSECTION. 0A. "Biodiesel" and "biodiesel blended
33 21 fuel" mean the same as defined in section 214A.1.
33 22 NEW SUBSECTION. 3A. "Department" means the department of
33 23 agriculture and land stewardship.
33 24 NEW SUBSECTION. 3B. "Ethanol blended gasoline" means the
33 25 same as defined in section 214A.1.
33 26 Sec. 54. Section 159A.2, subsection 6, Code 2005, is
33 27 amended by striking the subsection and inserting in lieu
33 28 thereof the following:
33 29 6. "Renewable fuel" means the same as defined in section
33 30 214A.1.
33 31 Sec. 55. Section 159A.2, subsection 8, Code 2005, is
33 32 amended by striking the subsection.
33 33 Sec. 56. Section 159A.3, subsection 3, Code 2005, is
33 34 amended to read as follows:
33 35 3. a. A chief purpose of the office is to further the
34 1 production and consumption of ethanol fuel blended gasoline in
34 2 this state. The office shall be the primary state agency
34 3 charged with the responsibility to promote public consumption
34 4 of ethanol fuel blended gasoline.
34 5 b. The office shall promote the production and consumption
34 6 of soydiesel fuel biodiesel and biodiesel blended fuel in this
34 7 state.
34 8 Sec. 57. Section 214A.19, subsection 1, unnumbered
34 9 paragraph 1, Code 2005, is amended to read as follows:
34 10 The department of natural resources, conditioned upon the
34 11 availability of funds, is authorized to award demonstration
34 12 grants to persons who purchase vehicles which operate on
34 13 alternative fuels, including but not limited to, high blend
34 14 ethanol E=85 gasoline, biodiesel, compressed natural gas,
34 15 electricity, solar energy, or hydrogen. A grant shall be for
34 16 the purpose of conducting research connected with the fuel or
34 17 the vehicle, and not for the purchase of the vehicle itself,
34 18 except that the money may be used for the purchase of the
34 19 vehicle if all of the following conditions are satisfied:
34 20 Sec. 58. Section 307.20, Code 2005, is amended to read as
34 21 follows:
34 22 307.20 BIODIESEL AND BIODIESEL BLENDED FUEL REVOLVING
34 23 FUND.
34 24 1. A biodiesel and biodiesel blended fuel revolving fund
34 25 is created in the state treasury. The biodiesel and biodiesel
34 26 blended fuel revolving fund shall be administered by the
34 27 department and shall consist of moneys received from the sale
34 28 of EPAct credits banked by the department on April 19, 2001,
34 29 moneys appropriated by the general assembly, and any other
34 30 moneys obtained or accepted by the department for deposit in
34 31 the fund. Moneys in the fund are appropriated to and shall be
34 32 used by the department for the purchase of biodiesel and
34 33 biodiesel blended fuel for use in department vehicles. The
34 34 department shall submit an annual report not later than
34 35 January 31 to the members of the general assembly and the
35 1 legislative services agency, of the expenditures made from the
35 2 fund during the preceding fiscal year. Section 8.33 does not
35 3 apply to any moneys in the fund and, notwithstanding section
35 4 12C.7, subsection 2, earnings or interest on moneys deposited
35 5 in the fund shall be credited to the fund.
35 6 2. A department departmental motor vehicle operating on
35 7 using biodiesel or biodiesel blended fuel shall be affixed
35 8 with a brightly visible sticker that notifies the traveling
35 9 public that the motor vehicle uses biodiesel blended fuel.
35 10 3. For purposes of this section the following definitions
35 11 apply:
35 12 a. "Biodiesel "Biodiesel" and "biodiesel blended fuel"
35 13 means soydiesel fuel mean the same as defined in section
35 14 159A.2 214A.1.
35 15 b. "EPAct credit" means a credit issued pursuant to the
35 16 federal Energy Policy Act (EPAct), 42 U.S.C. } 13201 et seq.
35 17 Sec. 59. Section 452A.3, subsection 1B, Code Supplement
35 18 2005, is amended to read as follows:
35 19 1B. An excise tax of seventeen cents is imposed on each
35 20 gallon of E=85 gasoline, which contains at least eighty=five
35 21 percent denatured alcohol by volume from the first day of
35 22 April until the last day of October or seventy percent
35 23 denatured alcohol from the first day of November until the
35 24 last day of March, used for the privilege of operating motor
35 25 vehicles in this state as defined in section 214A.1, subject
35 26 to the determination provided in subsection 1C.
35 27 Sec. 60. Section 452A.6, Code 2005, is amended to read as
35 28 follows:
35 29 452A.6 ETHANOL BLENDED GASOLINE AND OTHER PRODUCTS ==
35 30 BLENDER'S LICENSE.
35 31 1. a. A person other than a supplier, restrictive
35 32 supplier, or importer licensed under this division, who blends
35 33 gasoline with alcohol distilled from cereal grains so that the
35 34 blend contains at least ten percent alcohol distilled from
35 35 cereal grains ethanol as defined in section 214A.1 in order to
36 1 formulate ethanol blended gasoline, shall obtain a blender's
36 2 license.
36 3 b. A person who blends two or more special fuel products
36 4 or sells one hundred percent biofuel shall obtain a blender's
36 5 license.
36 6 2. The A blender's license shall be obtained by following
36 7 the procedure under section 452A.4 and the blender's license
36 8 is subject to the same restrictions as contained in that
36 9 section.
36 10 3. A blender required to obtain a license pursuant to this
36 11 section shall maintain records as required by section 452A.10
36 12 as to motor fuel, alcohol ethanol, ethanol blended gasoline,
36 13 and special fuels.
36 14 DIVISION VII
36 15 CHANGE OF TERMS
36 16 Sec. 61. CHANGE OF TERMS.
36 17 1. Sections 8A.362, 101.21, 159A.4, 214.1, 214.11, 214A.1,
36 18 214A.2, 214A.4, 214A.5, 214A.7, 214A.8, 214A.9, 214A.10,
36 19 214A.16, 214A.17, 214A.18, 306C.11, 312.1, 321.40, 321.56,
36 20 423.14, 452A.63, 452A.66, and 452A.78, Code 2005, are amended
36 21 by striking from the provisions the words "motor vehicle fuel"
36 22 and inserting the following: "motor fuel".
36 23 2. Sections 214.1, 214.3, 214.9, 214.11, and 214A.16, Code
36 24 2005, are amended by striking the words "motor vehicle fuel
36 25 pump" or "motor vehicle fuel pumps" and inserting the
36 26 following: "motor fuel pump" or "motor fuel pumps".
36 27 3. Sections 159A.3 and 214A.17, Code 2005, are amended by
36 28 striking from the provisions the words "oxygenate octane
36 29 enhancers" and inserting the following: "oxygenates".
36 30 4. Sections 214A.1, 214A.4, 214A.5, 214A.7, 214A.8, and
36 31 214A.10, Code 2005, are amended by striking from the
36 32 provisions the words "oxygenate octane enhancer" and inserting
36 33 the following: "oxygenate".
36 34 EXPLANATION
36 35 BACKGROUND. The general assembly has enacted a number of
37 1 Acts which have promoted the production and consumption of
37 2 ethanol blended gasoline.
37 3 In 1991, the general assembly enacted S.F. 545 (1991 Iowa
37 4 Acts, ch. 254), which requires that state and local government
37 5 vehicles operate using ethanol blended gasoline and provides
37 6 that a state=issued credit card can only be used to purchase
37 7 ethanol blended gasoline. The provisions state that ethanol
37 8 blended gasoline must contain at least 10 percent ethanol (so
37 9 called "E=10" gasoline). It also provides that a sticker be
37 10 affixed to each motor vehicle (other than a motor vehicle in
37 11 undercover police work) notifying the traveling public that it
37 12 operates using ethanol.
37 13 In 1994, the general assembly enacted H.F. 2337 (1994 Iowa
37 14 Acts, chapter 1119), which requires that of all new passenger
37 15 vehicles and light pickup trucks purchased by the department
37 16 of administrative services, other state agencies, and
37 17 community colleges, a minimum of 10 percent of those motor
37 18 vehicles must be equipped with engines which utilize
37 19 alternative fuels (referred to as alternative methods of
37 20 propulsion), including a flexible fuel (E=85 gasoline or
37 21 biodiesel blended gasoline), a renewable fuel approved by the
37 22 office of renewable fuels and coproducts pursuant to Code
37 23 section 159A.3, compressed or liquefied natural gas, propane
37 24 gas, solar energy, or electricity. The alternative fuel
37 25 requirements do not apply to motor vehicles purchased and
37 26 directly used for law enforcement or purchased and used for
37 27 off=road maintenance work or to pull loaded trailers.
37 28 In 2001, the general assembly enacted H.F. 716 (2001 Iowa
37 29 Acts, ch. 123), which created a tax credit for retail dealers
37 30 of gasoline who sell ethanol blended gasoline (containing at
37 31 least 10 percent alcohol). The tax credit applies to both
37 32 taxpayers filing as individuals under Code section 422.11C and
37 33 businesses under Code section 422.33. Specifically, the Act
37 34 provided a tax credit for a retail dealer who operates at
37 35 least one service station at which more than 60 percent of the
38 1 total gallons of gasoline sold by the retail dealer is ethanol
38 2 blended gasoline.
38 3 The Act also amended provisions in Code section 452A.3 that
38 4 provide for an excise tax on each gallon of motor fuel sold in
38 5 the state. Under the Act, until June 30, 2007, the rates for
38 6 unblended and blended motor fuel are adjusted each year based
38 7 on the number of gallons of ethanol blended gasoline that are
38 8 distributed in this state as expressed as a percentage of the
38 9 total number of gallons of motor fuel distributed in this
38 10 state.
38 11 In 2005, the general assembly enacted H.F. 868 (2005 Iowa
38 12 Acts, ch. 150) imposing a special rate of 17 cents on each
38 13 gallon of E=85 gasoline (a blend containing a minimum of
38 14 between 75 and 85 percent alcohol depending on the season) if
38 15 certain conditions were met. The Act requires the department
38 16 of revenue to compare the amount of moneys actually collected
38 17 using the special 17 cents rate with the amount of moneys that
38 18 would have been collected if the adjusted rate applied. If
38 19 the difference is equal to or greater than $25,000, the tax
38 20 rate beginning the next year is at the adjusted rate.
38 21 DIVISION I == ESTABLISHMENT OF RENEWABLE FUEL STANDARDS.
38 22 This division amends Code chapter 214A, which provides
38 23 authority to the department of agriculture and land
38 24 stewardship to regulate the sale of motor fuel.
38 25 The division amends Code section 214A.1 by providing a
38 26 number of definitions for "biodiesel", "biodiesel blended
38 27 fuel", "ethanol", "ethanol blended gasoline", and "E=85
38 28 gasoline". The division establishes a quality standards
38 29 program for renewable fuel producers. It provides that a
38 30 renewable fuel producer is prohibited from selling biodiesel
38 31 or biodiesel blended fuel in this state, and a dealer is
38 32 prohibited from purchasing biodiesel or biodiesel blended fuel
38 33 from a renewable fuel producer, unless the renewable fuel
38 34 producer is accredited under the terms and conditions of the
38 35 program. Under the program, an accreditation service
39 1 appointed by the department performs a formal review and audit
39 2 of the capacity and commitment of the renewable fuel producer
39 3 to produce or market biodiesel or biodiesel blended fuel in a
39 4 manner and according to procedures that meet the program
39 5 standards for quality.
39 6 The division amends Code section 214A.2, which provides for
39 7 different types of motor fuel and establishes standards or
39 8 specifications for motor fuel. The division amends the
39 9 section to require that ethanol blended gasoline contain a
39 10 blend of at least 10 percent ethanol (the so called "E=10"
39 11 standard). It designates gasoline with a minimum seasonal
39 12 blend of between 75 and 85 percent or more ethanol as E=85
39 13 blended gasoline based on current law (see Code Supplement
39 14 section 452A.3).
39 15 The division establishes similar standards for biodiesel
39 16 and biodiesel blended fuel. It requires that biodiesel
39 17 blended fuel contain at least 2 percent biodiesel by volume.
39 18 It prohibits any person from falsely advertising motor fuel,
39 19 including renewable fuel, and specifically, ethanol blended
39 20 gasoline and biodiesel blended gasoline. Code section 214A.11
39 21 provides that any person violating the provisions of Code
39 22 chapter 214A is guilty of a simple misdemeanor. A simple
39 23 misdemeanor is punishable by confinement for no more than 30
39 24 days or a fine of at least $50, but not more than $500, or by
39 25 both.
39 26 DIVISION II == PETROLEUM REPLACEMENT. This division amends
39 27 provisions in Code chapter 452A in part authorizing the
39 28 department of revenue to collect excise taxes imposed on each
39 29 gallon of motor fuel sold in this state. The division
39 30 establishes a new subchapter which requires that the
39 31 department track information regarding the sale of renewable
39 32 fuels in this state, including ethanol blended gasoline and
39 33 biodiesel blended fuel. The division requires the department
39 34 to track information on a calendar year basis referred to as a
39 35 determination period. The department is currently required to
40 1 keep some information such as the per gallon distribution
40 2 percentage required to adjust the excise tax on conventional
40 3 and ethanol blended gasoline pursuant to Code section 452A.3.
40 4 The division also requires the department to track the
40 5 aggregate distribution percentage which is the total number of
40 6 gallons of ethanol which is sold and dispensed as a
40 7 formulation of ethanol blended gasoline from motor fuel pumps
40 8 located at all service stations in this state expressed as a
40 9 percentage of the total number of gallons of gasoline which is
40 10 sold and dispensed from all motor fuel pumps in this state for
40 11 use in determining whether the state has met a threshold.
40 12 The division establishes petroleum replacement goals based
40 13 on aggregate distribution percentages calculated by the
40 14 department for each determination period. For each
40 15 determination period, incremental goals of ethanol sales are
40 16 established beginning at 10 and ending at 20 percent. The
40 17 department is required to submit a report to the governor, the
40 18 department of agriculture and land stewardship, and the fiscal
40 19 services division of the legislative services agency. The
40 20 report must state whether the aggregate distribution
40 21 percentage for the determination period will meet the required
40 22 goal.
40 23 The division establishes a renewable fuel infrastructure
40 24 initiative. It appropriates moneys which would otherwise be
40 25 available from the grow Iowa values fund to an E=85 gasoline
40 26 infrastructure fund which is under the control of the
40 27 department of revenue. Moneys in the fund are appropriated to
40 28 the department exclusively to support an E=85 gasoline
40 29 infrastructure program as created in the division, including
40 30 costs necessary to administer the program.
40 31 The purpose of the program is to improve a service station
40 32 by installing, replacing, or converting motor fuel storage and
40 33 dispensing infrastructure which is designed and used
40 34 exclusively to store and dispense E=85 gasoline on a retail
40 35 basis. The division includes eligibility requirements for a
41 1 person to participate in the program. The financial
41 2 incentives are in the form of a grant. In order to
41 3 participate in the program an eligible person must execute an
41 4 agreement with the department. A participating person who
41 5 acts in violation of an agreement with the department is
41 6 subject to a civil penalty of not more than $1,000 a day for
41 7 each day of the violation.
41 8 DIVISION III == RENEWABLE FUEL TAX CREDIT FOR RETAIL
41 9 DEALERS. This division amends tax credit provisions in Code
41 10 chapter 422 to provide that a retail dealer who sells E=85
41 11 gasoline is eligible to receive a tax credit. The tax credit
41 12 applies to taxpayers filing as individuals or businesses. The
41 13 amount of the tax credit is a rate of 10 cents multiplied by
41 14 the total number of gallons of E=85 gasoline sold and
41 15 dispensed through all motor fuel pumps operated at each of the
41 16 taxpayer's service stations during the tax year.
41 17 The division also provides that a retail dealer who sells
41 18 biodiesel blended fuel is also eligible to receive a tax
41 19 credit with similar requirements that apply to a retail dealer
41 20 who sells ethanol blended gasoline. In this case, the amount
41 21 is based on each gallon of biodiesel sold and dispensed by the
41 22 retail dealer and ranges from 3 to 5 cents depending upon the
41 23 percentage of biodiesel blended fuel sold when compared to the
41 24 total amount of diesel fuel sold.
41 25 The provisions which provide a tax credit to retail dealers
41 26 selling E=85 gasoline and biodiesel blended fuel apply to tax
41 27 years beginning on or after January 1, 2007, and are repealed
41 28 January 1, 2016.
41 29 DIVISION IV == GOVERNMENT VEHICLES. This division amends
41 30 Code section 8A.362, which authorizes the department of
41 31 administrative services to purchase used or new motor vehicles
41 32 as part of the state fleet. The division requires that in
41 33 purchasing a gasoline powered passenger motor vehicle or light
41 34 pickup truck, the department must provide a preference for the
41 35 purchase of a flexible fuel motor vehicle which is equipped
42 1 with an engine which operates using E=85 gasoline. It also
42 2 requires that each new passenger motor vehicle or light pickup
42 3 truck purchased by the department must be a flexible fuel
42 4 motor vehicle which is equipped with an engine which operates
42 5 using E=85 gasoline. The division also provides that each
42 6 such flexible fuel motor vehicle must operate using E=85
42 7 gasoline and a state=issued credit card cannot be used to
42 8 purchase gasoline for use in the motor vehicle other than E=85
42 9 gasoline. There are two exceptions. The motor vehicle may
42 10 operate using gasoline other than E=85 gasoline if it is not
42 11 reasonably available, and in that circumstance, a state=issued
42 12 credit card may be used to purchase the gasoline. In any
42 13 case, a motor vehicle must operate using ethanol (at least E=
42 14 10) unless under emergency circumstances. The division also
42 15 requires that a sticker be affixed to the motor vehicle
42 16 notifying the traveling public that it uses E=85 gasoline.
42 17 The division retains the requirement that a minimum of 10
42 18 percent of all such motor vehicles be equipped with engines
42 19 which utilize alternative fuels but no longer classifies E=85
42 20 gasoline as an alternative fuel.
42 21 Other government units with independent authority to
42 22 purchase motor vehicles include several state agencies (the
42 23 department for the blind under Code chapter 216B, the state
42 24 department of transportation under Code chapter 307, and
42 25 institutions under the control of the state board of regents
42 26 under Code chapter 262) and community colleges under Code
42 27 chapter 260C. The division provides that if those
42 28 governmental units purchase motor vehicles, the passenger
42 29 motor vehicles and light pickup trucks must be flexible fuel
42 30 vehicles operating using E=85 gasoline. The division retains
42 31 the requirement that 10 percent of their motor vehicle
42 32 purchases must operate using alternative fuels. The same
42 33 exceptions that apply to the department of administrative
42 34 services apply to these governmental units.
42 35 The division addresses three local governmental units,
43 1 including school districts under Code chapter 279, counties
43 2 under Code chapter 331, and cities under Code chapter 364.
43 3 Motor vehicles operated by these local governmental entities
43 4 must use ethanol blended gasoline (at a minimum E=10
43 5 gasoline), but are not required to purchase motor vehicles
43 6 using an alternative fuel including a flexible fuel such as E=
43 7 85 gasoline. The division requires that when a local
43 8 government purchases a used or new gasoline=powered passenger
43 9 motor vehicle or light pickup truck, it must purchase a
43 10 flexible fuel motor vehicle which is equipped with an engine
43 11 which operates using E=85 gasoline to the same extent as
43 12 pursuant to the same exceptions as applied to the department
43 13 of administrative services. It must also attach a sticker to
43 14 its motor vehicles which notifies the public that it operates
43 15 using E=85 gasoline. There is no new provision which requires
43 16 that the local government purchase motor vehicles which
43 17 operate using an alternative fuel as provided in the bill.
43 18 DIVISION V == NOTICE TO THE TRAVELING PUBLIC. This
43 19 division requires the Iowa department of transportation to
43 20 identify each location on the map where a service station
43 21 sells and dispenses E=85 gasoline as defined in Code section
43 22 214A.1. It also provides that the department must post signs
43 23 on highways which identify service stations that sell E=85
43 24 gasoline.
43 25 DIVISION VI == COORDINATING PROVISIONS == MISCELLANEOUS. A
43 26 number of provisions in the Code refer to alcohol or ethanol
43 27 blended gasoline, including E=85 gasoline, and soydiesel or
43 28 biofuel. This division standardizes the language and refers
43 29 to common definitions as created in the division amending Code
43 30 section 214A.1 and related standards created in the division
43 31 amending Code section 214A.2.
43 32 DIVISION VII == CHANGE IN TERMS. This division amends a
43 33 number of provisions by changing the term "oxygenate octane
43 34 enhancer" to "oxygenate", "motor vehicle fuel" to "motor
43 35 fuel", and "motor vehicle fuel pump" to "motor fuel pump" for
44 1 purposes of consistency in chapters throughout the Code, but
44 2 in particular in Code chapters 214A and 452A.
44 3 LSB 5486SV 81
44 4 da:rj/je/5