House Study Bill 52 - 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 prohibiting the installation 2 of infrastructure used to store or dispense gasoline 3 incompatible with certain classifications of ethanol 4 blended gasoline, making penalties applicable, and including 5 effective date provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 1486YC (4) 89 da/ns

H.F. _____ Section 1. Section 159A.14, subsection 3, paragraph b, Code 1 2021, is amended by adding the following new subparagraph: 2 NEW SUBPARAGRAPH . (5) A statement certifying that on and 3 after January 1, 2021, no infrastructure used to store or 4 dispense gasoline was installed on the retail motor fuel site 5 to be improved that is incompatible with E-15 or E-85. 6 Sec. 2. Section 159A.14, subsection 3, Code 2021, is amended 7 by adding the following new paragraph: 8 NEW PARAGRAPH . c. The person applying to participate in the 9 program has not made an assertion to the department or board 10 that was materially false or misleading. 11 Sec. 3. PRIOR RECEIVED APPLICATIONS. The department of 12 agriculture and land stewardship shall reject any application 13 submitted by a person to participate in the renewable fuel 14 infrastructure program for retail motor fuel sites, as provided 15 in section 159A.14, prior to the effective date of this Act, 16 unless all of the following apply: 17 1. The person signs and delivers to the department a 18 statement certifying that on and after January 1, 2021, 19 no infrastructure used to store or dispense gasoline was 20 installed on the retail motor fuel site to be improved that is 21 incompatible with E-15 or E-85. 22 2. The renewable fuel infrastructure board approves the 23 statement described in subsection 1. 24 Sec. 4. EFFECTIVE DATE. This Act, being deemed of immediate 25 importance, takes effect upon enactment. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 BILL’S PROVISIONS. This bill provides that a retail 30 dealer of motor fuel (dealer) applying to the department of 31 agriculture and land stewardship (DALS) to participate in the 32 renewable fuel infrastructure program for retail motor fuel 33 sites (program) must certify that, on and after January 1, 34 2021, no infrastructure was installed that could be used to 35 -1- LSB 1486YC (4) 89 da/ns 1/ 2

H.F. _____ store or dispense gasoline at a retail motor fuel site (site) 1 incompatible with ethanol blended gasoline classified as E-15 2 or E-85 (Code section 159.14). It also provides that DALS 3 must reject any application to participate in the program 4 submitted prior to the bill’s effective date, unless the dealer 5 certifies that no such infrastructure has been so installed. 6 The certification must be approved by the renewable fuel 7 infrastructure board (board). See Code section 159A.13. 8 APPLICABLE CIVIL PENALTY. A participating dealer who acts 9 in violation of an agreement is subject to a civil penalty of 10 not more than $1,000 per day for each day of the violation. The 11 civil penalty shall be deposited into the general fund of the 12 state (Code section 159A.14(7)). 13 BACKGROUND —— ETHANOL BLENDED GASOLINE INFRASTRUCTURE. The 14 program allocates state moneys generally on a cost-share basis 15 to dealers in order to defray costs associated with installing 16 an improvement to a site. The improvements must directly 17 relate to the storage and dispensing of certain classifications 18 of ethanol blended gasoline referred to as E-15 (containing 15 19 percent ethanol) or E-85 (containing between 70 and 85 percent 20 ethanol). See Code sections 159A.12, 214A.1, and 214A.2. 21 BACKGROUND —— PROCESS OF APPROVAL. In order to participate 22 in the program, a dealer must submit an application to DALS 23 proposing an improvement to a site. The application must be 24 approved by the board prior to the execution of an agreement 25 by DALS and the dealer. The application contains a statement 26 certifying that the infrastructure will only be used to store 27 and dispense E-15 or E-85 for the term of the agreement (three 28 or five years). See Code section 159A.14(3). 29 EFFECTIVE DATE. The bill takes effect upon enactment. 30 -2- LSB 1486YC (4) 89 da/ns 2/ 2