Senate Study Bill 1143 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP BILL) 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, and motor fuel standards. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1276DP (5) 85 da/nh

S.F. _____ H.F. _____ 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 1276DP (5) 85 da/nh 1/ 5

S.F. _____ H.F. _____ 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 1276DP (5) 85 da/nh 2/ 5

S.F. _____ H.F. _____ 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 1276DP (5) 85 da/nh 3/ 5

S.F. _____ H.F. _____ Sec. 9. REPEAL. Section 214A.9, Code 2013, is repealed. 1 EXPLANATION 2 GENERAL. This bill amends a number of provisions relating 3 to the functions of the department of agriculture and land 4 stewardship. 5 DIVISION I —— SOIL AND WATER CONSERVATION DISTRICTS. The 6 bill amends a provision which establishes a conservation 7 practices revolving loan fund within the soil conservation 8 division, to be used only to make loans directly to owners 9 of land for the purpose of establishing new permanent soil 10 and water conservation practices. The bill provides that 11 revolving loan fund moneys may be used in combination with 12 public cost-sharing moneys. The bill increases the amount that 13 an owner may receive under the program from $10,000 to $20,000. 14 DIVISION II —— WEIGHTS AND MEASURES. The bill amends a 15 provision that requires the department to designate one of 16 its assistants to act as the state metrologist of weights 17 and measures. Specifically, the bill provides that such 18 designation is discretionary. 19 DIVISION III —— MOTOR FUEL STANDARDS. The bill amends a 20 number of provisions relating to motor fuel standards (Code 21 section 214A.2). It eliminates octane standards for leaded 22 gasoline. 23 The bill also provides for gasoline that contains a certain 24 percentage of ethanol. Ethanol blended gasoline is designated 25 E-xx where “xx” is the volume percent of ethanol in the ethanol 26 blended gasoline. 27 Currently, the term “standard ethanol blended gasoline” 28 refers to ethanol blended gasoline that is used to power 29 vehicles other than flexible fuel vehicles (Code section 30 214A.1). Generally, standard ethanol blended gasoline must 31 contain between 9 and 10 percent ethanol by volume (so-called 32 E-10). However, it may also contain a higher percentage as 33 authorized by the department as long as it is approved by the 34 United States environmental protection agency (EPA) (Code 35 -4- LSB 1276DP (5) 85 da/nh 4/ 5

S.F. _____ H.F. _____ section 214A.2). The bill provides that such gasoline is for 1 use in gasoline-powered vehicles not required to be flexible 2 fuel vehicles. It also increases the percentage of ethanol 3 allowed in standard ethanol blended gasoline to 15 percent 4 by volume (E-15). The department may still increase the 5 percentage if authorized by the department with approval by the 6 EPA. 7 The department is required to test samples of motor fuel or 8 biofuels to ensure that they comply with the standards. It 9 increases the maximum sample size from 16 fluid ounces to one 10 gallon (Code section 214A.7). The bill eliminates a provision 11 allowing a retail dealer of motor fuel to post a notice showing 12 the results of the tests (Code section 214A.9). 13 The bill amends a provision which requires a decal be affixed 14 to a motor fuel pump notifying consumers that it is dispensing 15 ethanol blended gasoline (Code section 214A.16). The bill 16 provides that a motor fuel pump dispensing ethanol blended 17 gasoline containing a percentage of ethanol ranging between 11 18 and 15 percent (E-11 to E-15) must be affixed with a decal as 19 prescribed by EPA. 20 -5- LSB 1276DP (5) 85 da/nh 5/ 5