House Study Bill 689 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON AGRICULTURE BILL BY CHAIRPERSON PAUSTIAN) A BILL FOR An Act relating to the renewable fuel infrastructure program 1 for retail motor fuel sites, by providing for the award of 2 standard financial incentives to participating persons. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6326YC (4) 88 da/ns

H.F. _____ Section 1. Section 159A.11, Code 2020, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 2A. “E-15 plus gasoline” means ethanol 3 blended gasoline classified as E-15 or higher, other than 4 E-85 gasoline, if the formulation of the gasoline meets the 5 standards set forth in section 214A.2. 6 Sec. 2. Section 159A.14, subsection 1, paragraph a, 7 subparagraph (1), subparagraph division (a), Code 2020, is 8 amended to read as follows: 9 (a) Store and dispense E-15 plus gasoline. At least for 10 the period beginning on September 16 and ending on May 31 of 11 each year, the ethanol infrastructure must be used to store and 12 dispense E-15 gasoline as a registered fuel recognized by the 13 United States environmental protection agency. 14 Sec. 3. Section 159A.14, subsection 5, paragraph a, 15 subparagraph (1), subparagraph division (b), Code 2020, is 16 amended to read as follows: 17 (b) For a five-year cost-share agreement, seventy percent 18 of the actual cost of making the improvement or fifty one 19 hundred thousand dollars, whichever is less. 20 Sec. 4. Section 159A.14, subsection 5, paragraph a, Code 21 2020, is amended by adding the following new subparagraph: 22 NEW SUBPARAGRAPH . (3) The infrastructure board shall not 23 award a total of more than five hundred thousand dollars in 24 standard financial incentives to a participating person as 25 provided in subparagraphs (1) and (2) during any twelve-month 26 period. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 GENERAL. This bill amends the renewable fuel infrastructure 31 program for retail motor fuel sites (program), which supports 32 the improvement of retail motor fuel sites by installing, 33 replacing, or converting motor fuel storage and dispensing 34 (e.g., underground storage tanks and motor fuel pumps 35 -1- LSB 6326YC (4) 88 da/ns 1/ 2

H.F. _____ infrastructure) associated with E-15 gasoline, E-85 gasoline, 1 or biodiesel. 2 AWARDS. The bill provides that the infrastructure may 3 be used to support ethanol blended gasoline classified as 4 E-15 or higher (E-15 plus gasoline) but not classified as 5 E-85 gasoline (between 70 and 85 percent ethanol). The bill 6 removes a restriction on when E-15 gasoline may be stored in a 7 motor fuel storage tank, increases the amount of moneys that 8 may be awarded as standard financial incentives (grants) to a 9 participating person (retail dealer) to support an improvement, 10 and places a cap on the amount of moneys that may be awarded to 11 the participating person during any 12-month period. 12 BACKGROUND. The program is administered by the department 13 of agriculture and land stewardship which executes cost-share 14 agreements with participating persons subject to approval 15 by the renewable fuel infrastructure board (Code sections 16 159A.13 and 159A.14). The program includes standard financial 17 incentives awarded to improve one or more motor fuel sites 18 subject to certain award caps. The award may be for either 19 three years with an award cap of $30,000 or five years with 20 an award cap of $50,000. The program also provides for 21 supplemental financial incentives for improvements relating 22 to E-85 infrastructure or improvements to additional motor 23 fuel sites owned or operated by a participating person. The 24 program is supported by moneys credited to the renewable fuel 25 infrastructure fund (Code section 159A.16). In 2019, moneys in 26 the fund were appropriated from the rebuild Iowa infrastructure 27 fund (2019 Iowa Acts, chapter 137, section 1). 28 -2- LSB 6326YC (4) 88 da/ns 2/ 2