Senate File 246 - Introduced SENATE FILE 246 BY COMMITTEE ON AGRICULTURE (SUCCESSOR TO SSB 1143) A BILL FOR An Act providing for the department of agriculture and land 1 stewardship’s administration of programs regarding a 2 conservation practices revolving loan fund, the state 3 metrologist, pesticide regulation, and motor fuel standards. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1276SV (2) 85 da/nh

S.F. 246 DIVISION I 1 SOIL AND WATER CONSERVATION DISTRICTS 2 Section 1. Section 161A.71, subsection 1, Code 2013, is 3 amended to read as follows: 4 1. The division may establish a conservation practices 5 revolving loan fund composed of any money appropriated by the 6 general assembly for that purpose, and of any other moneys 7 available to and obtained or accepted by the committee from 8 the federal government or private sources for placement in 9 that fund. Except as otherwise provided by subsection 3 , 10 the assets of the conservation practices revolving loan fund 11 shall be used only to make loans directly to owners of land in 12 this state for the purpose of establishing on that land any 13 new permanent soil and water conservation practice which the 14 commissioners of the soil and water conservation district in 15 which the land is located have found is necessary or advisable 16 to meet the soil loss limits established for that land. A 17 loan shall not be made for establishing a permanent soil and 18 water conservation practice on land that is subject to the 19 restriction on state cost-sharing funds of section 161A.76 . 20 Revolving loan funds and public cost-sharing funds shall not 21 may be used in combination for funding a particular soil and 22 water conservation practice. Each loan made under this section 23 shall be for a period not to exceed ten years, shall bear no 24 interest, and shall be repayable to the conservation practices 25 revolving loan fund in equal yearly installments due March 1 of 26 each year the loan is in effect. The interest rate upon loans 27 for which payment is delinquent shall accelerate immediately 28 to the current legal usury limit. Applicants are eligible for 29 no more than ten twenty thousand dollars in loans outstanding 30 at any time under this program. “Permanent soil and water 31 conservation practices” has the same meaning as defined in 32 section 161A.42 and those established under this program are 33 subject to the requirements of section 161A.7, subsection 3 . 34 Loans made under this program shall come due for payment upon 35 -1- LSB 1276SV (2) 85 da/nh 1/ 6

S.F. 246 sale of the land on which those practices are established. 1 DIVISION II 2 WEIGHTS AND MEASURES 3 Sec. 2. Section 213.1, Code 2013, is amended to read as 4 follows: 5 213.1 State metrologist. 6 The department shall may designate one of its assistants to 7 act as state metrologist of weights and measures. All weights 8 and measures sealed by the state metrologist shall be impressed 9 with the word “Iowa.” 10 DIVISION III 11 MOTOR FUEL STANDARDS 12 Sec. 3. Section 214A.1, subsection 23, Code 2013, is amended 13 to read as follows: 14 23. “Standard ethanol blended gasoline” means ethanol 15 blended gasoline for use in gasoline-powered vehicles other 16 than not required to be flexible fuel vehicles, that meets the 17 requirements of section 214A.2 . 18 Sec. 4. Section 214A.2, subsection 2, paragraphs a and b, 19 Code 2013, are amended by striking the paragraphs. 20 Sec. 5. Section 214A.2, subsection 3, paragraph b, 21 subparagraph (2), unnumbered paragraph 1, Code 2013, is amended 22 to read as follows: 23 Gasoline blended with ethanol must meet any of the following 24 requirements established by rules adopted in part or in whole 25 based on A.S.T.M. international specification D4814, including 26 as follows : 27 Sec. 6. Section 214A.2, subsection 3, paragraph b, 28 subparagraph (4), Code 2013, is amended to read as follows: 29 (4) For standard ethanol blended gasoline, it must be 30 ethanol blended gasoline classified as any of the following: 31 (a) From E-9 or E-10 to E-15 , if the ethanol blended 32 gasoline meets the standards for that classification as 33 otherwise provided in this paragraph “b” . 34 (b) Higher than E-10 E-15 , if authorized by the department 35 -2- LSB 1276SV (2) 85 da/nh 2/ 6

S.F. 246 pursuant to approval for the use of that classification of 1 ethanol blended gasoline in this state by the United States 2 environmental protection agency, by granting a waiver or the 3 adoption of regulations. 4 Sec. 7. Section 214A.7, Code 2013, is amended to read as 5 follows: 6 214A.7 Department inspection —— samples tested. 7 The department shall, from time to time, make or cause to be 8 made tests of any motor fuel or biofuel which is being sold, 9 or held or offered for sale within this state. A departmental 10 inspector may enter upon the premises of a dealer and take from 11 any container a sample of the motor fuel or biofuel, not to 12 exceed sixteen fluid ounces one gallon . The sample shall be 13 sealed and appropriately marked or labeled by the inspector and 14 delivered to the department. The department shall make, or 15 cause to be made, complete analyses or tests of the motor fuel 16 or biofuel by the methods specified in section 214A.2 . 17 Sec. 8. Section 214A.16, subsection 1, Code 2013, is amended 18 to read as follows: 19 1. a. If ethanol blended gasoline is sold from a motor 20 fuel pump, the motor fuel pump shall have affixed a decal 21 identifying the ethanol blended gasoline. 22 b. If the motor fuel pump dispenses ethanol blended gasoline 23 classified as E-11 to E-15 for use in gasoline-powered vehicles 24 not required to be flexible fuel vehicles, the motor fuel pump 25 shall have affixed a decal as prescribed by the United States 26 environmental protection agency. 27 c. If the motor fuel pump dispenses ethanol blended gasoline 28 classified as higher than standard ethanol blended gasoline 29 pursuant to section 214A.2 , the decal shall contain the 30 following notice: 31 FOR FLEXIBLE FUEL VEHICLES ONLY. 32 b. d. If biodiesel fuel is sold from a motor fuel pump, 33 the motor fuel pump shall have affixed a decal identifying the 34 biodiesel fuel as provided in 16 C.F.R. pt. 306. 35 -3- LSB 1276SV (2) 85 da/nh 3/ 6

S.F. 246 Sec. 9. REPEAL. Section 214A.9, Code 2013, is repealed. 1 DIVISION IV 2 PESTICIDE REGULATION 3 Sec. 10. Section 206.13, subsection 2, Code 2013, is amended 4 to read as follows: 5 2. The amount of the evidence of financial responsibility 6 as provided for in this section shall be not less than two one 7 hundred fifty thousand dollars for property damage and public 8 liability insurance, each separately , or liability insurance 9 with limits of one hundred thousand dollars per occurrence and 10 three hundred thousand dollars annual aggregate . The evidence 11 of financial responsibility shall be maintained at not less 12 than that amount at all times during the licensed period. The 13 department shall be notified ten days prior to any reduction in 14 the surety bond or liability insurance made at the request of 15 the applicant or cancellation of the surety bond by the surety 16 or the liability insurance by the insurer. The department 17 shall be notified ninety days prior to any reduction of the 18 amount of the irrevocable letter of credit at the request of 19 the applicant or the cancellation of the irrevocable letter of 20 credit by the financial institution. The total and aggregate 21 liability of the surety, insurer, or financial institution for 22 all claims shall be limited to the face of the surety bond, 23 liability insurance policy, or irrevocable letter of credit. 24 EXPLANATION 25 GENERAL. This bill amends a number of provisions relating 26 to the functions of the department of agriculture and land 27 stewardship. 28 DIVISION I —— SOIL AND WATER CONSERVATION DISTRICTS. The 29 bill amends a provision which establishes a conservation 30 practices revolving loan fund within the soil conservation 31 division, to be used only to make loans directly to owners 32 of land for the purpose of establishing new permanent soil 33 and water conservation practices. The bill provides that 34 revolving loan fund moneys may be used in combination with 35 -4- LSB 1276SV (2) 85 da/nh 4/ 6

S.F. 246 public cost-sharing moneys. The bill increases the amount that 1 an owner may receive under the program from $10,000 to $20,000. 2 DIVISION II —— WEIGHTS AND MEASURES. The bill amends a 3 provision that requires the department to designate one of 4 its assistants to act as the state metrologist of weights 5 and measures. Specifically, the bill provides that such 6 designation is discretionary. 7 DIVISION III —— MOTOR FUEL STANDARDS. The bill amends a 8 number of provisions relating to motor fuel standards (Code 9 section 214A.2). It eliminates octane standards for leaded 10 gasoline. 11 The bill also provides for gasoline that contains a certain 12 percentage of ethanol. Ethanol blended gasoline is designated 13 E-xx where “xx” is the volume percent of ethanol in the ethanol 14 blended gasoline. 15 Currently, the term “standard ethanol blended gasoline” 16 refers to ethanol blended gasoline that is used to power 17 vehicles other than flexible fuel vehicles (Code section 18 214A.1). Generally, standard ethanol blended gasoline must 19 contain between 9 and 10 percent ethanol by volume (so-called 20 E-10). However, it may also contain a higher percentage as 21 authorized by the department as long as it is approved by the 22 United States environmental protection agency (EPA) (Code 23 section 214A.2). The bill provides that such gasoline is for 24 use in gasoline-powered vehicles not required to be flexible 25 fuel vehicles. It also increases the percentage of ethanol 26 allowed in standard ethanol blended gasoline to 15 percent 27 by volume (E-15). The department may still increase the 28 percentage if authorized by the department with approval by the 29 EPA. 30 The department is required to test samples of motor fuel or 31 biofuels to ensure that they comply with the standards. It 32 increases the maximum sample size from 16 fluid ounces to one 33 gallon (Code section 214A.7). The bill eliminates a provision 34 allowing a retail dealer of motor fuel to post a notice showing 35 -5- LSB 1276SV (2) 85 da/nh 5/ 6

S.F. 246 the results of the tests (Code section 214A.9). 1 The bill amends a provision which requires a decal be affixed 2 to a motor fuel pump notifying consumers that it is dispensing 3 ethanol blended gasoline (Code section 214A.16). The bill 4 provides that a motor fuel pump dispensing ethanol blended 5 gasoline containing a percentage of ethanol ranging between 11 6 and 15 percent (E-11 to E-15) must be affixed with a decal as 7 prescribed by EPA. 8 DIVISION IV —— PESTICIDE REGULATION. The bill amends a 9 provision which requires a commercial applicator of pesticides 10 to be licensed. Such person must provide evidence of financial 11 security (Code section 206.13). The evidence of financial 12 responsibility is an established amount for property damage 13 and public liability insurance. In 2012, the General Assembly 14 enacted SF 2311 (2012 Iowa Acts, chapter 1095) which increased 15 the amount from $50,000 to $250,000. This bill decreases that 16 amount to $100,000 and allows for liability insurance with a 17 limit of $100,000 per occurrence and $300,000 annual aggregate. 18 -6- LSB 1276SV (2) 85 da/nh 6/ 6