Senate Study Bill 3228
SENATE FILE
BY (PROPOSED COMMITTEE ON
AGRICULTURE BILL BY
CO=CHAIRPERSON FRAISE)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to motor fuel, by establishing standards for
2 renewable fuel including biodiesel and biodiesel blended fuel,
3 providing for terminology changes, and providing for
4 penalties.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
6 TLSB 5937SK 81
7 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. "Biodiesel" means a renewable fuel
1 6 comprised of mono=alkyl esters of long=chain fatty acids
1 7 derived from vegetable oils or animal fats, which meets the
1 8 standards provided in section 214A.2.
1 9 NEW SUBSECTION. 1A. "Biodiesel blended fuel" means a
1 10 blend of biodiesel with petroleum=based diesel fuel which
1 11 meets the standards, including separately the standard for its
1 12 biodiesel constituent, provided in section 214A.2.
1 13 NEW SUBSECTION. 1B. "Committee" means the renewable fuels
1 14 and coproducts advisory committee established pursuant to
1 15 section 159A.4.
1 16 NEW SUBSECTION. 1C. "Dealer" means a wholesale dealer or
1 17 retail dealer.
1 18 NEW SUBSECTION. 1D. "Diesel fuel" means any liquid
1 19 product prepared, advertised, offered for sale, or sold for
1 20 use as, or commonly and commercially used as, motor fuel for
1 21 use in an internal combustion engine and ignited by pressure
1 22 without the presence of an electric spark, and which meets the
1 23 specifications provided in section 214A.2.
1 24 NEW SUBSECTION. 1E. "Ethanol" means ethyl alcohol that is
1 25 denatured as required in 23 C.F.R., pts. 20 and 21, for use as
1 26 an oxygenate in gasoline.
1 27 NEW SUBSECTION. 1F. "Ethanol blended gasoline" means a
1 28 formulation of gasoline which is a liquid petroleum product
1 29 blended with ethanol, if the formulation meets the standards
1 30 provided in section 214A.2.
1 31 NEW SUBSECTION. 1G. "Gasoline" means any liquid product
1 32 prepared, advertised, offered for sale or sold for use as, or
1 33 commonly and commercially used as, motor fuel for use in a
1 34 spark=ignition, internal combustion engine, and which meets
1 35 the specifications provided in section 214A.2.
2 1 NEW SUBSECTION. 2A. "Motor fuel pump" means the same as
2 2 defined in section 214.1.
2 3 NEW SUBSECTION. 5A. "Renewable fuel" means a combustible
2 4 liquid derived from grain starch, oilseed, animal fat, or
2 5 other biomass; or produced from a biogas source, including any
2 6 nonfossilized decaying organic matter which is capable of
2 7 powering machinery, including but not limited to an engine or
2 8 power plant. Renewable fuel includes but is not limited to
2 9 ethanol blended gasoline, biodiesel, or biodiesel blended fuel
2 10 meeting the standards provided in section 214A.2.
2 11 Sec. 2. Section 214A.1, subsection 2, Code 2005, is
2 12 amended to read as follows:
2 13 2. "Motor vehicle fuel" means a substance or combination
2 14 of substances which is intended to be or is capable of being
2 15 used for the purpose of propelling or running by combustion
2 16 any of operating an internal combustion engine, including but
2 17 not limited to a motor vehicle, and is kept for sale or sold
2 18 for that purpose. The products commonly known as kerosene and
2 19 distillate or petroleum products of lower gravity (Baume
2 20 scale), when not used to propel a motor vehicle or for
2 21 compounding or combining with a motor vehicle fuel, are exempt
2 22 from this chapter except as provided in section 214A.2A.
2 23 Sec. 3. Section 214A.1, subsections 6 and 8, Code 2005,
2 24 are amended by striking the subsections and inserting in lieu
2 25 thereof the following:
2 26 6. "Retail dealer" means a person engaged in the business
2 27 of storing and dispensing motor fuel from a motor fuel pump
2 28 for sale on a retail basis.
2 29 8. "Wholesale dealer" means a person, other than a retail
2 30 dealer, who operates a place of business where motor fuel is
2 31 stored and dispensed for sale in this state, including a
2 32 permanent or mobile location.
2 33 Sec. 4. Section 214A.2, subsection 1, Code 2005, is
2 34 amended to read as follows:
2 35 1. The secretary department shall adopt rules pursuant to
3 1 chapter 17A for carrying out this chapter. The rules may
3 2 include, but are not limited to, specifications relating to
3 3 motor fuel or oxygenate octane enhancers, including but not
3 4 limited to renewable fuel such as ethanol blended gasoline,
3 5 biodiesel, biodiesel blended fuel, and motor fuel components
3 6 such as an oxygenate. In the interest of uniformity, the
3 7 secretary department shall adopt by reference or otherwise
3 8 other specifications relating to tests and standards for motor
3 9 fuel or oxygenate octane enhancers including renewable fuel
3 10 and motor fuel components, established by the United States
3 11 environmental protection agency or A.S.T.M. (American society
3 12 for testing and materials) international, unless the secretary
3 13 determines those specifications are inconsistent with this
3 14 chapter or are not appropriate to the conditions which exist
3 15 in this state. In adopting standards for a renewable fuel,
3 16 the department shall consult with the committee.
3 17 Sec. 5. Section 214A.2, subsection 3, Code 2005, is
3 18 amended by striking the subsection and inserting in lieu
3 19 thereof the following:
3 20 3. a. For motor fuel advertised for sale or sold as
3 21 biodiesel or biodiesel blended fuel by a dealer, the motor
3 22 fuel must meet registration requirements for that type of
3 23 motor fuel and its additives established by the United States
3 24 environmental protection agency including as provided under 42
3 25 U.S.C. } 7545.
3 26 b. The motor fuel must comply with departmental standards
3 27 which to every extent feasible shall comply with
3 28 specifications adopted by A.S.T.M. international for biodiesel
3 29 or biodiesel blended fuel.
3 30 (1) At least one percent of biodiesel blended fuel by
3 31 volume must be biodiesel.
3 32 (2) The biodiesel may be blended with diesel fuel whose
3 33 sulfur, aromatic, lubricity and octane levels are outside
3 34 A.S.T.M. international specification D=975 Grades 1=D, 2=D,
3 35 and low sulfur 1=D and 2=D, provided that the finished
4 1 biodiesel blended fuel meets its applicable A.S.T.M.
4 2 international specifications for these properties.
4 3 Sec. 6. Section 214A.2A, Code 2005, is amended to read as
4 4 follows:
4 5 214A.2A KEROSENE LABELING.
4 6 1. Fuel which is sold or is kept, offered, or exposed for
4 7 sale as kerosene shall be labeled as kerosene. The label
4 8 shall include the word "kerosene" and a designation as either
4 9 "K1" or "K2", and shall indicate that the kerosene is in
4 10 compliance with the standard specification adopted by the
4 11 A.S.T.M. in international specification D=3699 (1982).
4 12 2. A product commonly known as kerosene and distillate or
4 13 a petroleum product of lower gravity (Baume scale), when not
4 14 used to propel a motor vehicle or for compounding or combining
4 15 with a motor fuel, are exempt from this chapter except as
4 16 provided in this section.
4 17 Sec. 7. Section 214A.3, Code 2005, is amended by striking
4 18 the section, and inserting in lieu thereof the following:
4 19 214A.3 ADVERTISING.
4 20 1. For all motor fuel, a person shall not knowingly do any
4 21 of the following:
4 22 a. Advertise the sale of any motor fuel which does not
4 23 meet the standards provided in section 214A.2.
4 24 b. Falsely advertise the quality or kind of any motor fuel
4 25 or a component of motor fuel.
4 26 c. Add a coloring matter to the motor fuel which misleads
4 27 a person who is purchasing the motor fuel about the quality of
4 28 the motor fuel.
4 29 2. A person shall not knowingly falsely advertise that a
4 30 motor fuel is a renewable fuel or is not a renewable fuel.
4 31 Biodiesel blended fuel shall be designated B=xx where "xx" is
4 32 the volume percent of biodiesel in the biodiesel blended fuel.
4 33 A person shall not knowingly falsely advertise biodiesel
4 34 blended fuel by using an inaccurate designation in violation
4 35 of this subsection.
5 1 Sec. 8. Section 214A.11, Code 2005, is amended to read as
5 2 follows:
5 3 214A.11 VIOLATIONS PENALTY.
5 4 Any A person violating the provisions who violates a
5 5 provision of this chapter shall be is guilty of a simple
5 6 serious misdemeanor.
5 7 DIVISION II
5 8 CHANGE OF TERMS
5 9 Sec. 9. CHANGE OF TERMS.
5 10 1. Sections 8A.362, 101.21, 159A.4, 214.1, 214.11, 214A.1,
5 11 214A.2, 214A.4, 214A.5, 214A.7, 214A.8, 214A.9, 214A.10,
5 12 214A.16, 214A.17, 214A.18, 306C.11, 312.1, 321.56, 423.14,
5 13 452A.63, 452A.66, and 452A.78, Code 2005, and section 321.40,
5 14 Code Supplement 2005, are amended by striking from the
5 15 provisions the words "motor vehicle fuel" and inserting the
5 16 following: "motor fuel".
5 17 2. Sections 214.1, 214.3, 214.9, 214.11, 214A.16, and
5 18 422.11C, Code 2005, are amended by striking the words "motor
5 19 vehicle fuel pump" or "motor vehicle fuel pumps" and inserting
5 20 the following: "motor fuel pump" or "motor fuel pumps".
5 21 EXPLANATION
5 22 DIVISION I == ESTABLISHMENT OF RENEWABLE FUEL STANDARDS.
5 23 This division amends Code chapter 214A, which provides
5 24 authority to the department of agriculture and land
5 25 stewardship to regulate the sale of motor fuel.
5 26 The division amends Code section 214A.1 by providing a
5 27 number of definitions, including "biodiesel", "biodiesel
5 28 blended fuel", "ethanol", and "ethanol blended gasoline".
5 29 The division amends Code section 214A.2, which provides for
5 30 different types of motor fuel and establishes standards or
5 31 specifications for motor fuel.
5 32 The division establishes standards for biodiesel and
5 33 biodiesel blended fuel. It requires that biodiesel blended
5 34 fuel contain at least 1 percent biodiesel by volume. It
5 35 prohibits any person from falsely advertising motor fuel,
6 1 including renewable fuel, and specifically biodiesel blended
6 2 gasoline. Code section 214A.11 provides that any person
6 3 violating the provisions of Code chapter 214A is guilty of a
6 4 simple misdemeanor. A simple misdemeanor is punishable by
6 5 confinement for no more than 30 days or a fine of at least $50
6 6 but not more than $500, or by both. The bill increases the
6 7 offense to a serious misdemeanor. A serious misdemeanor is
6 8 punishable by confinement for no more than one year and a fine
6 9 of at least $250 but not more than $1,500.
6 10 DIVISION II == CHANGE IN TERMS. This division amends a
6 11 number of provisions by changing the term "motor vehicle fuel"
6 12 to "motor fuel", and "motor vehicle fuel pump" to "motor fuel
6 13 pump" for purposes of consistency in chapters throughout the
6 14 Code, but in particular in Code chapters 214A and 452A.
6 15 LSB 5937SK 81
6 16 da:rj/je/5