Senate Study Bill 1244
SENATE FILE
BY (PROPOSED COMMITTEE ON AGRICULTURE
BILL BY CO=CHAIRPERSONS
FRAISE and JOHNSON)
Passed Senate, Date Passed House, 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:
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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 sixty percent ethanol by volume.
1 22 3. "Off=site terminal facility" means a vehicle facility
1 23 that is used to manufacturer, store, or distribute motor
1 24 vehicle fuel to a service station, if the facility is not
1 25 supplied by a pipeline or a marine vessel.
1 26 4. "Renewable fuel" means an energy source which is
1 27 derived from a biomass that is an organic compound available
1 28 on a renewable or recurring basis, including but not limited
1 29 to agricultural crops, if the biomass when processed may be
1 30 used alone or blended with another product to power machinery,
1 31 including an engine or power plant. "Renewable fuel" includes
1 32 but is not limited to biodiesel or "E=85 blended gasoline".
1 33 5. "Service station" means a geographic location where a
1 34 retail dealer as defined in section 214A.1 operates a metered
1 35 pump at a service station for purposes of selling and
2 1 dispensing motor vehicle fuel as defined in section 214A.1 on
2 2 a retail basis.
2 3 Sec. 2. NEW SECTION. 15E.402 RENEWABLE FUEL
2 4 INFRASTRUCTURE COST SHARE PROGRAMS == E=85 BLENDED GASOLINE
2 5 AND BIODIESEL.
2 6 The department shall establish and administer renewable
2 7 infrastructure cost share fuel programs as follows:
2 8 1. a. An E=85 infrastructure cost share program to
2 9 provide financial incentives for the installation or
2 10 conversion of infrastructure related to equipment or devices
2 11 used by service stations to sell and dispense E=85 blended
2 12 gasoline.
2 13 b. A biodiesel infrastructure cost share program to
2 14 provide financial incentives for the installation or
2 15 conversion of infrastructure required to establish off=site
2 16 terminal facilities that manufacture or store biodiesel for
2 17 distribution to service stations.
2 18 2. The financial incentives provided under this section
2 19 shall not exceed fifty percent of the estimated cost or fifty
2 20 percent of the actual cost, whichever is less, of installing
2 21 the necessary infrastructure located at a service station or
2 22 off=site terminal facility. The moneys shall not be used to
2 23 pay for expenses incurred by the department in administering
2 24 the programs. In awarding the financial incentives, the
2 25 department may cooperate with the office of renewable fuels
2 26 and coproducts pursuant to section 159A.3.
2 27 3. For each fiscal year in the fiscal period beginning
2 28 July 1, 2005, and ending June 30, 2008, the department shall
2 29 reserve and expend up to three hundred twenty=five thousand
2 30 dollars of moneys appropriated to the department for purposes
2 31 of allocating cost share moneys as financial incentives as
2 32 provided in this section.
2 33 a. For each of the fiscal years, not more than two hundred
2 34 fifty thousand dollars shall be used to support the E=85
2 35 infrastructure cost share program. During the fiscal period,
3 1 the department shall allocate the moneys to at least thirty
3 2 service stations.
3 3 b. For each of the fiscal years, not more than seventy=
3 4 five thousand dollars shall be used to support the biodiesel
3 5 infrastructure cost share program. During the fiscal period,
3 6 the department shall allocate the moneys to at least four off=
3 7 site terminal facilities.
3 8 Notwithstanding section 8.33, any unobligated or unexpended
3 9 moneys available on June 30 of a fiscal year shall not revert
3 10 but shall be retained by the department to carry out the
3 11 renewable infrastructure cost share fuel programs.
3 12 Sec. 3. NEW SECTION. 15E.403 RENEWABLE FUEL EDUCATION
3 13 PROGRAM == E=85 BLENDED GASOLINE AND BIODIESEL.
3 14 The department shall establish and administer a renewable
3 15 fuel education program directed at ultimate consumers of motor
3 16 vehicle fuel. The program shall promote the advantages
3 17 associated with using E=85 blended gasoline and biodiesel as
3 18 an alternative to conventional motor vehicle fuel.
3 19 1. The department shall award the moneys on a competitive
3 20 grant basis as provided by the department. The department may
3 21 award moneys to one or more persons. The moneys shall not be
3 22 used to pay for expenses incurred by the department in
3 23 administering the program. In awarding the moneys, the
3 24 department may cooperate with the office of renewable fuels
3 25 and coproducts created under section 159A.3.
3 26 2. A person is eligible to be awarded moneys if all of the
3 27 following apply:
3 28 a. The person is a nonprofit corporation organized under
3 29 chapter 504 which is exempt from taxation pursuant to section
3 30 501(c) of the Internal Revenue Code.
3 31 b. The person demonstrates a knowledge about all
3 32 significant aspects relating to the production and use of
3 33 renewable fuels, and experience in promoting renewable fuels
3 34 to ultimate consumers.
3 35 3. a. For each fiscal year in the fiscal period beginning
4 1 July 1, 2005, and ending June 30, 2008, the department shall
4 2 reserve and expend up to one hundred thousand dollars of
4 3 moneys appropriated to the department for purposes of
4 4 allocating moneys as awards as provided in this section.
4 5 b. Notwithstanding section 8.33, any unobligated or
4 6 unexpended moneys available on June 30 of a fiscal year shall
4 7 not revert but shall be retained by the department to carry
4 8 out a renewable fuel education program.
4 9 EXPLANATION
4 10 This bill establishes programs for the promotion of
4 11 renewable fuels and particularly programs for biodiesel and E=
4 12 85 blended gasoline to be administered by the department of
4 13 economic development.
4 14 The bill establishes a cost share program to provide
4 15 financial incentives for the installation or conversion of
4 16 infrastructure used by service stations to sell and dispense
4 17 E=85 blended gasoline. It also establishes a cost share
4 18 program to provide financial incentives for the installation
4 19 or conversion of infrastructure required to establish off=site
4 20 terminal facilities which manufacture or store biodiesel for
4 21 distribution to service stations. The bill provides that for
4 22 each of three years, the department must reserve up to
4 23 $325,000 for purposes of supporting the programs.
4 24 The bill also establishes a renewable fuel education
4 25 program directed at ultimate consumers of motor vehicle fuel
4 26 in order to promote the advantages associated with using E=85
4 27 blended gasoline and biodiesel as an alternative to
4 28 conventional motor vehicle fuel. The department must award
4 29 the moneys on a competitive grant basis to qualified nonprofit
4 30 organizations. The bill provides that for each of three
4 31 years, the department must reserve up to $100,000 for purposes
4 32 of supporting the program.
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