H.F. 2567 Section 1. NEW SECTION . 159A.14A E-15 gasoline 1 infrastructure program. 2 1. An E-15 gasoline infrastructure program is established 3 in the department under the direction of the infrastructure 4 board. 5 2. The purpose of the program is to improve existing retail 6 motor fuel sites and terminals by installing, replacing, or 7 converting infrastructure to be used to store, blend, or 8 dispense E-15 gasoline. 9 3. The infrastructure must be designed and shall be used 10 exclusively to store or dispense E-15 gasoline as a registered 11 fuel recognized by the United States environmental protection 12 agency. Eligible infrastructure includes tanks and all 13 associated equipment, including but not limited to pipes, 14 hoses, tubes, lines, fittings, valves, filters, seals, and 15 covers. However, eligible infrastructure does not include 16 motor fuel pumps, motor fuel blender pumps, or tank vehicles. 17 4. The infrastructure board shall approve cost-share 18 agreements to make infrastructure improvements if executed 19 by the department and persons that the infrastructure board 20 determines are eligible as provided in this section, according 21 to terms and conditions required by the infrastructure board. 22 The infrastructure board shall determine the amount of the 23 financial incentives to be awarded to a person participating 24 in the program subject to the limitations provided in this 25 section. In order for a person to be eligible to participate 26 in the program all of the following must apply: 27 a. The person must be an owner or operator of a retail motor 28 fuel site, or a terminal operator. 29 b. The person must apply to the department in a manner and 30 according to procedures required by the infrastructure board. 31 The application must contain all information required by the 32 infrastructure board and shall at least include all of the 33 following: 34 (1) The name of the person and the address of the retail 35 -1- LSB 6326HV (2) 88 da/ns 1/ 5

H.F. 2567 motor fuel site or terminal to be improved. 1 (2) A detailed description of the infrastructure to 2 be installed, replaced, or converted. For a storage tank 3 installed at a retail motor fuel site, the information shall 4 include the model number of each installed, replaced, or 5 converted motor fuel storage tank if available. 6 (3) A statement describing how the retail motor fuel site 7 or terminal is to be improved, the total estimated cost of the 8 planned improvement, and the date when the infrastructure will 9 be first used following the completion of the improvement. 10 (4) A statement certifying that the infrastructure shall 11 only be used to comply with the provisions of this section and 12 as specified in the cost-share agreement, unless granted a 13 waiver by the infrastructure board pursuant to this section. 14 5. A retail motor fuel site or terminal improved using 15 financial incentives awarded under this section must comply 16 with applicable federal and state standards governing new or 17 upgraded motor fuel storage tanks used to store and dispense 18 E-15 gasoline. A retail motor fuel site issued a certificate 19 of no further action by the department of natural resources 20 under section 455B.474 shall retain its classification 21 following modifications necessary to store the E-15 gasoline 22 and the owner or operator of the retail motor fuel site shall 23 not be required to perform a new site assessment unless a new 24 release occurs or if a previously unknown or unforeseen risk 25 condition arises. 26 6. An award of financial incentives to a participating 27 person shall be on a cost-share basis in the form of a grant. 28 To participate in the program, an eligible person must execute 29 a cost-share agreement with the department as approved by 30 the infrastructure board in which the person contributes a 31 percentage of the total costs related to improving the retail 32 motor fuel site or terminal. 33 a. A cost-share agreement shall be for five years. The 34 infrastructure board may approve multiple improvements to 35 -2- LSB 6326HV (2) 88 da/ns 2/ 5

H.F. 2567 the same retail motor fuel site or terminal so long as the 1 improvements are made under separate cost-share agreements. 2 b. (1) The financial incentives awarded to a participating 3 person to improve a retail motor fuel site shall not exceed 4 seventy percent of the actual cost of making the improvement or 5 one hundred thousand dollars, whichever is less. 6 (2) The infrastructure board may approve multiple awards of 7 financial incentives to make improvements to one or more retail 8 motor fuel sites so long as the total amount of the awards does 9 not exceed the limitations provided in subparagraph (1). 10 (3) The infrastructure board shall not award a total of 11 more than five hundred thousand dollars in financial incentives 12 to a participating person to make improvements to one or more 13 retail motor fuel sites as provided in subparagraphs (1) and 14 (2) during any twelve-month period. 15 7. A participating person awarded financial incentives 16 shall not use the infrastructure to store and dispense motor 17 fuel other than E-15 gasoline, unless one of the following 18 applies: 19 a. The participating person is granted a waiver by the 20 infrastructure board. The participating person shall store or 21 dispense the motor fuel according to the terms and conditions 22 of the waiver. 23 b. The E-15 gasoline infrastructure fund created in 24 section 159A.17 is immediately repaid the total amount of 25 moneys awarded to the participating person together with a 26 monetary penalty equal to twenty-five percent of that awarded 27 amount. The amount shall be deposited in the E-15 gasoline 28 infrastructure fund created in section 159A.17. 29 8. A participating person may be awarded financial 30 incentives under this section regardless of whether the 31 participating person received financial incentives under the 32 renewable fuel infrastructure program for retail motor fuel 33 sites established in section 159A.14. 34 9. A participating person who acts in violation of an 35 -3- LSB 6326HV (2) 88 da/ns 3/ 5

H.F. 2567 agreement executed with the department pursuant to this section 1 is subject to a civil penalty of not more than one thousand 2 dollars per day for each day of the violation. The civil 3 penalty shall be deposited into the general fund of the state. 4 Sec. 2. NEW SECTION . 159A.17 E-15 gasoline infrastructure 5 fund. 6 1. An E-15 gasoline infrastructure fund is created in the 7 state treasury under the control of the department. The E-15 8 gasoline infrastructure fund is separate from the general fund 9 of the state. 10 2. The E-15 gasoline infrastructure fund is composed 11 of moneys appropriated by the general assembly and moneys 12 available to and obtained or accepted by the department from 13 the United States government or private sources for placement 14 in the fund. 15 3. Moneys in the E-15 gasoline infrastructure fund are 16 appropriated to the department exclusively to support the 17 E-15 gasoline infrastructure program as provided in section 18 159A.14A, and as allocated in financial incentives by the 19 infrastructure board. The moneys shall not be transferred, 20 used, obligated, appropriated, or otherwise encumbered except 21 to allocate as financial incentives under the program. 22 4. a. The recapture of awards or monetary penalties as 23 provided in section 159A.14A, subsection 7, or other repayments 24 of moneys originating from the E-15 gasoline infrastructure 25 fund, shall be deposited into the fund. 26 b. Notwithstanding section 12C.7, interest or earnings on 27 moneys in the fund shall be credited to the fund. 28 c. Notwithstanding section 8.33, unencumbered and 29 unobligated moneys remaining in the E-15 gasoline 30 infrastructure fund at the close of each fiscal year shall not 31 revert but shall remain available in the fund for the purposes 32 designated. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -4- LSB 6326HV (2) 88 da/ns 4/ 5

H.F. 2567 the explanation’s substance by the members of the general assembly. 1 This bill creates an E-15 gasoline infrastructure program 2 (program) to support the improvement of retail motor fuel sites 3 (sites) and terminals installing, replacing, or converting 4 motor fuel storage tanks (e.g., underground storage tanks) 5 and associated fittings and equipment, other than dispensers 6 (motor fuel pumps). The bill imposes caps on the amount that 7 may be awarded to improve a site or awarded for one or more 8 sites owned and operated by the same person during any 12-month 9 period. An award to an owner or operator of a site or the 10 operator of a terminal is based on a five-year cost-share 11 agreement (agreement) executed by the participating person 12 and the department of agriculture and land stewardship acting 13 in cooperation with the renewable fuel infrastructure board 14 (board). The bill provides that the board may waive the 15 requirement that the improved infrastructure be used to store 16 and dispense E-15 gasoline. A participating person who acts in 17 violation of an agreement is subject to a civil penalty. The 18 bill also creates an E-15 gasoline infrastructure fund that is 19 used to support the program. 20 -5- LSB 6326HV (2) 88 da/ns 5/ 5