Senate File 423 - Introduced





                                       SENATE FILE       
                                       BY  COMMITTEE ON ENVIRONMENT
                                           AND ENERGY INDEPENDENCE

                                       (SUCCESSOR TO SSB 1254)


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act providing for the dispensing of ethanol blended gasoline
  2    by authorizing the use of secondary containment, and providing
  3    an effective date.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 2220SV 83
  6 da/rj/5

PAG LIN



  1  1    Section 1.  Section 455G.31, subsections 2 and 3, Code
  1  2 2009, are amended to read as follows:
  1  3    2.  A retail dealer may use gasoline storage and dispensing
  1  4 infrastructure other than a dispenser to store and dispense
  1  5 ethanol blended gasoline classified as E=9 or higher if all of
  1  6 the following apply:
  1  7    a.  For gasoline storage and dispensing infrastructure
  1  8 other than the dispenser, the department of natural resources
  1  9 under this chapter or the state fire marshal under chapter 101
  1 10 must determine determines that it is compatible with the
  1 11 ethanol blended gasoline being used.
  1 12    b. (1)  For a  3.  A retail dealer may use a dispenser, all
  1 13 of the following shall apply to dispense ethanol blended
  1 14 gasoline classified as E=9 or higher if any of the following
  1 15 applies:
  1 16    (a)  a.  (1)  The dispenser must be is listed by an
  1 17 independent testing laboratory as compatible for use with
  1 18 ethanol blended gasoline classified as E=9 or higher.  In
  1 19 addition,
  1 20    (b)  The owner or operator or a person authorized by the
  1 21 owner or operator must the retail dealer must visually inspect
  1 22 the dispenser and the dispenser sump daily for leaks and
  1 23 equipment failure and maintain a record of such inspection for
  1 24 at least one year after the inspection.  The record shall be
  1 25 located on the premises of the retail dealer and shall be made
  1 26 available to the department of natural resources or the state
  1 27 fire marshal upon request.  If a leak is detected, the
  1 28 department of natural resources shall be notified pursuant to
  1 29 section 455B.386.
  1 30    (2)  The state fire marshal shall issue an order as soon as
  1 31 practicable after determining that a commercially available
  1 32 dispenser is listed as compatible for use with E=85 gasoline
  1 33 by an independent testing laboratory.  The state fire marshal
  1 34 shall publish the order in the Iowa administrative bulletin.
  1 35 A person shall not install a dispenser which would otherwise
  2  1 be permitted under subparagraph (1) after sixty days following
  2  2 the date that the order is published.  A person who installed
  2  3 such dispenser before the sixty=day period expired may use the
  2  4 dispenser as provided in subparagraph (1) until four years
  2  5 after the date that the order is published.
  2  6    3.  (3)  This section paragraph "a" is repealed four years
  2  7 following the date that the order issued by the state fire
  2  8 marshal is published in the Iowa administrative bulletin as
  2  9 provided in this section subparagraph (2).
  2 10    b.  (1)  The dispenser's manufacturer has submitted the
  2 11 dispenser to an independent testing laboratory to be listed as
  2 12 compatible for use with E=85 gasoline.  In addition, the
  2 13 retail dealer must install an under=dispenser containment
  2 14 system with electronic monitoring.  The under=dispenser
  2 15 containment system shall comply with applicable rules adopted
  2 16 by the department of natural resources and the state fire
  2 17 marshal.
  2 18    (2)  If within ten years from the date that a dispenser
  2 19 described in subparagraph (1) is installed, the same class of
  2 20 dispenser is listed as compatible for use with E=85 gasoline
  2 21 by an independent testing laboratory, the dispenser shall be
  2 22 deemed as compatible for use with ethanol blended gasoline
  2 23 classified as E=9 or higher up to and including E=85 by the
  2 24 department of natural resources and the state fire marshal.
  2 25 However, if after that time, the same class of dispenser is
  2 26 not listed as compatible for use with E=85 gasoline by an
  2 27 independent testing laboratory, subparagraph (1) no longer
  2 28 applies, and the retail dealer must do any of the following:
  2 29    (a)  Upgrade or replace the dispenser as necessary to be
  2 30 listed as compatible for use with E=85 gasoline.
  2 31    (b)  Comply with the requirements in paragraph "a".
  2 32    Sec. 2.  EMERGENCY RULEMAKING.  The department of natural
  2 33 resources and the state fire marshal shall adopt emergency
  2 34 rules under section 17A.4, subsection 3, and section 17A.5,
  2 35 subsection 2, paragraph "b", to implement the provisions of
  3  1 this Act and the rules shall be effective immediately upon
  3  2 filing unless a later date is specified in the rules.  Any
  3  3 rules adopted in accordance with this section shall also be
  3  4 published as a notice of intended action as provided in
  3  5 section 17A.4.
  3  6    Sec. 3.  EFFECTIVE DATE.  This Act, being deemed of
  3  7 immediate importance, takes effect upon enactment.
  3  8                           EXPLANATION
  3  9    Under current law, a retail dealer engaged in the business
  3 10 of storing and dispensing motor fuel may dispense ethanol
  3 11 blended gasoline containing a high content of ethanol,
  3 12 including E=85, using special infrastructure, including a
  3 13 motor fuel pump (dispenser) that is listed by an independent
  3 14 testing laboratory.
  3 15    This bill provides an alternative that would allow the use
  3 16 of a dispenser, if its manufacturer has submitted it to an
  3 17 independent testing laboratory to be listed as compatible for
  3 18 use with E=85 gasoline, and the retail dealer installs an
  3 19 under=dispenser containment system with electronic monitoring.
  3 20 The retail dealer has 10 years to use the alternative.  After
  3 21 that time the dispenser must be listed by an independent
  3 22 testing laboratory as compatible for use with E=85 gasoline.
  3 23    The bill requires the department of natural resources and
  3 24 the state fire marshal to adopt emergency and regular
  3 25 (double=barreled) rulemaking in order to implement the bill's
  3 26 provisions.
  3 27    The bill takes effect upon enactment.
  3 28 LSB 2220SV 83
  3 29 da/rj/5