HSB 52 (LSB 1486YC (4) 89)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON AGRICULTURE BILL BY CHAIRPERSON PAUSTIAN)

A BILL FOR

An Act relating to the renewable fuel infrastructure program for retail motor fuel sites, by prohibiting the installation of infrastructure used to store or dispense gasoline incompatible with certain classifications of ethanol blended gasoline, making penalties applicable, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 159A.14, subsection 3, paragraph b, Code 2021, is amended by adding the following new subparagraph:
   NEW SUBPARAGRAPH.  (5)  A statement certifying that on and after January 1, 2021, no infrastructure used to store or dispense gasoline was installed on the retail motor fuel site to be improved that is incompatible with E-15 or E-85.
    Sec. 2.  Section 159A.14, subsection 3, Code 2021, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  c.  The person applying to participate in the program has not made an assertion to the department or board that was materially false or misleading.
    Sec. 3.  PRIOR RECEIVED APPLICATIONS.  The department of agriculture and land stewardship shall reject any application submitted by a person to participate in the renewable fuel infrastructure program for retail motor fuel sites, as provided in section 159A.14, prior to the effective date of this Act, unless all of the following apply:
   1.  The person signs and delivers to the department a statement certifying that on and after January 1, 2021, no infrastructure used to store or dispense gasoline was installed on the retail motor fuel site to be improved that is incompatible with E-15 or E-85.
   2.  The renewable fuel infrastructure board approves the statement described in subsection 1.
    Sec. 4.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
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. This bill provides that a retail dealer of motor fuel (dealer) applying to the department of agriculture and land stewardship (DALS) to participate in the renewable fuel infrastructure program for retail motor fuel sites (program) must certify that, on and after January 1, 2021, no infrastructure was installed that could be used to store or dispense gasoline at a retail motor fuel site (site) incompatible with ethanol blended gasoline classified as E-15 or E-85 (Code section 159.14). It also provides that DALS must reject any application to participate in the program submitted prior to the bill’s effective date, unless the dealer certifies that no such infrastructure has been so installed. The certification must be approved by the renewable fuel infrastructure board (board). See Code section 159A.13.
   APPLICABLE CIVIL PENALTY. A participating dealer who acts in violation of an agreement is subject to a civil penalty of not more than $1,000 per day for each day of the violation. The civil penalty shall be deposited into the general fund of the state (Code section 159A.14(7)).
   BACKGROUND —— ETHANOL BLENDED GASOLINE INFRASTRUCTURE. The program allocates state moneys generally on a cost-share basis to dealers in order to defray costs associated with installing an improvement to a site. The improvements must directly relate to the storage and dispensing of certain classifications of ethanol blended gasoline referred to as E-15 (containing 15 percent ethanol) or E-85 (containing between 70 and 85 percent ethanol). See Code sections 159A.12, 214A.1, and 214A.2.
   BACKGROUND —— PROCESS OF APPROVAL. In order to participate in the program, a dealer must submit an application to DALS proposing an improvement to a site. The application must be approved by the board prior to the execution of an agreement by DALS and the dealer. The application contains a statement certifying that the infrastructure will only be used to store and dispense E-15 or E-85 for the term of the agreement (three or five years). See Code section 159A.14(3).
   EFFECTIVE DATE. The bill takes effect upon enactment.