HSB 186 (LSB 1751YC (1) 86)

HOUSE FILE _____

BY  (PROPOSED COMMITTEE ON AGRICULTURE BILL BY CHAIRPERSON GRASSLEY)

A BILL FOR

An Act expanding the renewable fuel infrastructure program to support the storage and dispensing of E-15 gasoline.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 159A.14, subsection 1, paragraph a, subparagraph (1), Code 2015, is amended to read as follows:
   (1)  Ethanol infrastructure shall be designed and used exclusively to do any of the following:
   (a)  Store and dispense E-15 gasoline. At least for the period beginning on September 16 and ending on May 31 of each year, the ethanol infrastructure must be used to store and dispense E-15 gasoline as a registered fuel recognized by the United States environmental protection agency to power 2001 and newer model year passenger vehicles.
   (a)  (b)  Store and dispense E-85 gasoline.
   (b)  (c)  Store, blend, and dispense motor fuel from a motor fuel blender pump, as required in this subparagraph division. The ethanol infrastructure must provide be used for the storage of ethanol or ethanol blended gasoline, or for blending ethanol with gasoline. The ethanol infrastructure must at least include a motor fuel blender pump which dispenses different classifications of ethanol blended gasoline and allows E-85 gasoline to be dispensed at all times that the blender pump is operating.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   BILL’S PROVISIONS. The bill expands the renewable fuel infrastructure program for retail motor fuel sites (program) by providing that state moneys may be used to finance infrastructure associated with storing and dispensing ethanol blended gasoline classified as E-15. The bill provides that the infrastructure so financed must always be used to store and dispense E-15 and during nonsummer months (from September 16 to May 31) it must be designated as a registered fuel recognized by the United States environmental protection agency (EPA) to operate 2001 and newer model year passenger vehicles. 
   BACKGROUND —— STANDARDS. Motor fuel classified as reformulated gasoline and associated fuel additives produced and commercially distributed to operate highway motor vehicles must be registered with the EPA (40 C.F.R. ch. I, pt. 79). E-15 is available to power certain later model passenger vehicles pursuant to waivers granted by the EPA. However, the EPA prohibits the use of E-15 to power those vehicles when it is regulated as a registered fuel during summer months because it does not meet volatility standards referred to as Reid vapor pressure limits. General state standards for ethanol blended gasoline are set forth in Iowa Code section 214A.2. Ethanol blended gasoline is designated E-xx where “xx” is the volume percent of ethanol in the ethanol blended gasoline.
   BACKGROUND —— PROGRAM. The program is currently used to provide cost-share financing to retail dealers of motor fuel to pay for costs associated with installing, replacing, or converting infrastructure used to store, blend, or dispense renewable fuel, including ethanol blended gasoline such as E-85 (Code section 159A.14). The program is supported by moneys available in the renewable fuel infrastructure fund (Code section 159A.16) as administered by the department of agriculture and land stewardship, the renewable fuel infrastructure board (Iowa Code section 159A.13), and the Iowa comprehensive petroleum underground storage tank fund board (Iowa Code section 455G.4).