S.F. _____ H.F. _____ DIVISION I 1 CHOOSE IOWA PROMOTIONAL PROGRAM 2 Section 1. Section 159.20, Code 2022, is amended by adding 3 the following new subsection: 4 NEW SUBSECTION . 1A. The department shall establish and 5 administer a choose Iowa promotional program as provided in 6 part 2 of this subchapter, in order to provide consumers 7 a choice in purchasing food items that originate as an 8 agricultural commodity produced on Iowa farms. 9 Sec. 2. NEW SECTION . 159.26 Definitions. 10 As used in this part: 11 1. “Food item” means any of the following: 12 a. A perishable item derived from an agricultural commodity, 13 or processed from an agricultural commodity, that is fit for 14 human consumption. 15 b. Honey produced from bees in a managed beehive. 16 2. “Iowa farm” means land in this state used to produce an 17 agricultural commodity. 18 3. “Process” means to prepare a food item in a manner that 19 allows it to be fit for human consumption. 20 4. “Program” means the choose Iowa promotional program 21 established in section 159.29. 22 Sec. 3. NEW SECTION . 159.28 Administration. 23 The department shall administer the provisions of this part, 24 including by adopting rules pursuant to chapter 17A as it 25 determines are necessary or desirable. 26 Sec. 4. NEW SECTION . 159.29 Choose Iowa promotional 27 program. 28 1. The department shall establish and administer a choose 29 Iowa promotional program to advertise for sale on a retail 30 basis a food item that originates as an agricultural commodity 31 produced on an Iowa farm, and that may include any of the 32 following: 33 a. An agricultural commodity, except that it may be prepared 34 for sale by washing or packaging in this state. 35 -1- LSB 5280XD (5) 89 da/ns 1/ 17

S.F. _____ H.F. _____ b. A product, if it is processed in this state and any of 1 its ingredients originate as an agricultural commodity produced 2 on an Iowa farm. 3 2. a. The department may adopt rules further defining 4 an Iowa farm and describing how an agricultural commodity 5 originates on an Iowa farm. 6 b. The department may adopt rules providing for the 7 acceptable use of ingredients originating from agricultural 8 commodities not produced on Iowa farms. In adopting the 9 rules, the department may consider whether the ingredient is 10 an incidental additive or other component that the department 11 determines is insignificant. 12 Sec. 5. NEW SECTION . 159.30 Choose Iowa logo. 13 1. As part of the program, the department may establish 14 a choose Iowa logo to identify a food item originating as an 15 agricultural commodity produced on an Iowa farm. 16 2. The department may register the choose Iowa logo as a 17 mark with the secretary of state under chapter 548. If allowed 18 under federal law, the department may also register the logo as 19 a trademark with the United States patent and trademark office 20 or as a copyright with the United States copyright office. 21 3. This section does not require the department to 22 incorporate the name “choose Iowa” as part of a mark, 23 trademark, or copyright, if such name is already protected by 24 state or federal law. 25 4. If the department registers a mark with the secretary 26 of state, registers a trademark with the United States patent 27 and trademark office, or registers a copyright with the United 28 States copyright office under this section, the state of 29 Iowa shall be named as the owner of the mark, trademark, or 30 copyright. 31 5. The use of a choose Iowa logo does not do any of the 32 following: 33 a. Provide an express or implied guarantee or warranty 34 concerning the safety, fitness, merchantability, or use of a 35 -2- LSB 5280XD (5) 89 da/ns 2/ 17

S.F. _____ H.F. _____ food item. 1 b. Supersede, revise, or replace a state or federal labeling 2 requirement, including but not limited to a provision in the 3 federal Fair Packaging and Labeling Act, 15 U.S.C. §1451 et 4 seq. 5 c. Indicate the grade, specification, standard, or value of 6 any food item. 7 Sec. 6. NEW SECTION . 159.31 Choose Iowa licensing agreement 8 —— fees. 9 1. A person may apply to the department to participate in 10 the choose Iowa promotional program according to procedures 11 established by rules adopted by the department. The department 12 shall evaluate and approve or disapprove applications based 13 on criteria established by rules adopted by the department. 14 The department may disapprove an application if the department 15 determines the applicant’s use of the choose Iowa logo would be 16 associated with the consumption of an adulterated or illegal 17 food item. 18 2. The department may enter into a licensing agreement 19 with a person participating in the program. The participating 20 person may use the choose Iowa logo to advertise a food item 21 originating as an agricultural commodity produced on an Iowa 22 farm, subject to terms and conditions required by rules adopted 23 by the department. A licensing agreement shall not be for more 24 than one year. 25 3. The department shall establish application and license 26 fees by rules adopted by the department. 27 Sec. 7. NEW SECTION . 159.31A Choose Iowa fund. 28 1. A choose Iowa fund is established in the state treasury 29 under the management and control of the department. 30 2. The fund shall include moneys collected as fees by the 31 department as provided in section 159.31, moneys appropriated 32 by the general assembly, and other moneys available to and 33 obtained or accepted by the department, including moneys from 34 public or private sources. 35 -3- LSB 5280XD (5) 89 da/ns 3/ 17

S.F. _____ H.F. _____ 3. Moneys in the fund are appropriated to the department 1 and shall be used exclusively to carry out the provisions of 2 this part as determined and directed by the department, and 3 shall not require further special authorization by the general 4 assembly. 5 4. a. Notwithstanding section 12C.7, interest or earnings 6 on moneys in the fund shall be credited to the fund. 7 b. Notwithstanding section 8.33, moneys in the fund that 8 remain unencumbered or unobligated at the end of a fiscal year 9 shall not revert. 10 Sec. 8. DIRECTIONS TO CODE EDITOR —— TRANSFER. 11 1. The Code editor is directed to make the following 12 transfer: 13 Section 159.27 to section 159.25. 14 2. The Code editor shall correct internal references in the 15 Code and in any enacted legislation as necessary due to the 16 enactment of this section. 17 Sec. 9. DIRECTIONS TO CODE EDITOR —— PARTS. The Code editor 18 is directed to divide the provisions in chapter 159, subchapter 19 II, as amended, enacted, or transferred in this division of 20 this Act, into parts as follows: 21 1. Part 1, including sections 159.20 through 159.25. 22 2. Part 2, including sections 159.26 through 159.31A. 23 DIVISION II 24 REGULATION OF PESTICIDES 25 Sec. 10. Section 206.19, subsection 5, paragraph b, Code 26 2022, is amended to read as follows: 27 b. The amount of the civil penalty that may be assessed 28 for each violation committed by a commercial applicator or 29 private applicator shall not exceed five hundred dollars for 30 each offense . 31 DIVISION III 32 REGULATION OF MOTOR FUELS 33 Sec. 11. Section 214A.1, subsections 2, 5, and 13, Code 34 2022, are amended to read as follows: 35 -4- LSB 5280XD (5) 89 da/ns 4/ 17

S.F. _____ H.F. _____ 2. “ A.S.T.M. ASTM international” means the American society 1 for testing and materials international. 2 5. “Biodiesel” means a renewable fuel comprised of 3 mono-alkyl esters of long-chain fatty acids derived from 4 vegetable oils or animal fats, which is manufactured by the 5 use of a transesterification reaction, and which meets the 6 standards provided in section 214A.2 . 7 13. “E-85 gasoline” or “E-85” means ethanol blended gasoline 8 formulated with a percentage of between seventy sixty-eight 9 and eighty-five eighty-three percent by volume of ethanol, if 10 the formulation excludes a denaturant, and which meets the 11 standards provided in section 214A.2 . 12 Sec. 12. NEW SECTION . 214A.1A Administration and 13 enforcement. 14 This chapter shall be administered and enforced by the 15 department which may adopt rules under chapter 17A to carry out 16 the provisions of this chapter. 17 Sec. 13. Section 214A.2, Code 2022, is amended to read as 18 follows: 19 214A.2 Tests and standards Standards and classifications . 20 1. a. The department shall adopt rules pursuant to chapter 21 17A for carrying out this chapter . The rules may include but 22 are not limited to specifications establishing departmental 23 standards relating to motor fuel, including but not limited to 24 renewable fuel such as ethanol blended gasoline, biobutanol 25 blended gasoline, biodiesel, biodiesel blended fuel, fuels and 26 motor fuel components such as an oxygenate . 27 b. In the interest of uniformity, the department shall 28 adopt by reference other in part or in whole, as some of its 29 departmental standards described in paragraph “a” , applicable 30 specifications relating to tests and standards for motor fuel, 31 including renewable fuel and motor fuel components, adopted by 32 ASTM international and applicable requirements established by 33 the United States environmental protection agency and A.S.T.M. 34 international . 35 -5- LSB 5280XD (5) 89 da/ns 5/ 17

S.F. _____ H.F. _____ 2. Octane number shall conform to the average of values 1 obtained from the A.S.T.M. ASTM international D2699 research 2 method and the A.S.T.M. ASTM international D2700 motor method. 3 a. Octane number for regular grade unleaded gasoline shall 4 follow the specifications of A.S.T.M. ASTM international but 5 shall not be less than eighty-seven. 6 b. Octane number for premium grade unleaded gasoline shall 7 follow the specifications of A.S.T.M. ASTM international but 8 shall not be less than ninety ninety-one . 9 3. a. For motor fuel advertised for sale or sold as 10 gasoline by a dealer, the motor fuel must meet requirements 11 for that type of motor fuel and its additives established by 12 the United States environmental protection agency including as 13 provided under 42 U.S.C. §7545. 14 b. If the motor fuel is advertised for sale or sold as 15 ethanol blended gasoline, the motor fuel must comply with meet 16 departmental standards which shall meet all of the following 17 requirements including as follows : 18 (1) Ethanol must be an agriculturally derived ethyl alcohol 19 that meets A.S.T.M. departmental standards based in part or in 20 whole on ASTM international specification D4806 for denatured 21 fuel ethanol for blending with gasoline for use as automotive 22 spark-ignition engine fuel, or a successor A.S.T.M. ASTM 23 international specification, as established by rules adopted 24 by the department rule . 25 (2) Gasoline blended with ethanol must meet requirements 26 established by rules adopted departmental standards based 27 in part or in whole based on A.S.T.M. ASTM international 28 specification D4814 , or a successor ASTM international 29 specification, established by rule . 30 (3) (a) For ethanol blended gasoline, at least nine ten 31 percent by volume must be fuel grade ethanol. In addition, the 32 following applies: 33 (a) (b) For the period beginning on September 16 and 34 ending on May 31 of each year, the state grants a waiver of 35 -6- LSB 5280XD (5) 89 da/ns 6/ 17

S.F. _____ H.F. _____ one pound per square inch from the A.S.T.M. ASTM international 1 D4814 specification for Reid vapor pressure requirement , or 2 a successor ASTM international specification, established by 3 rule . 4 (b) For the period beginning on June 1 and ending on 5 September 15 of each year the United States environmental 6 protection agency must grant a one pound per square inch waiver 7 for ethanol blended conventional gasoline with at least nine 8 but not more than ten percent by volume of ethanol pursuant to 9 40 C.F.R. §80.27 . 10 (4) For standard ethanol blended gasoline, it must be 11 ethanol blended gasoline classified as any of the following: 12 (a) From E-9 E-10 up to but not higher than E-15, if the 13 ethanol blended gasoline meets the departmental standards for 14 that classification as otherwise provided in this paragraph 15 “b” . 16 (b) Higher than E-15 but not E-85 gasoline , if the 17 classification is authorized by the department pursuant to 18 approval for the use of that classification of ethanol blended 19 gasoline in this state by the United States environmental 20 protection agency, by granting a waiver or the adoption of 21 regulations. 22 (5) E-85 gasoline must be an agriculturally derived ethyl 23 alcohol that meets A.S.T.M. departmental standards based in 24 part or in whole on ASTM international specification D5798, 25 described as a fuel blend for use in ground vehicles with 26 automotive spark-ignition engines, or a successor A.S.T.M. ASTM 27 international specification, as established by rules adopted 28 by the department rule . 29 c. If the motor fuel is advertised for sale or sold as 30 biobutanol blended gasoline, the motor fuel must comply 31 with meet departmental standards which shall meet all of the 32 following requirements as follows : 33 (1) Biobutanol must be an agriculturally derived isobutyl 34 or n-butyl alcohol that meets A.S.T.M. ASTM international 35 -7- LSB 5280XD (5) 89 da/ns 7/ 17

S.F. _____ H.F. _____ specification D7862 for butanol for blending with gasoline for 1 use as automotive spark-ignition engine fuel, or a successor 2 A.S.T.M. ASTM international specification, as established by 3 rules adopted by the department rule . 4 (2) Gasoline blended with biobutanol must meet requirements 5 established by rules adopted departmental standards based 6 in part or in whole based on A.S.T.M. ASTM international 7 specification D4814 , or a successor ASTM international 8 specification, established by rule . 9 4. a. For motor fuel advertised for sale or sold as diesel 10 fuel by a dealer, the motor fuel must meet requirements for 11 that type of motor fuel and its additives established by the 12 United States environmental protection agency including as 13 provided under 42 U.S.C. §7545. 14 b. If the motor fuel is advertised for sale or sold as 15 biodiesel or biodiesel blended fuel, the motor fuel must comply 16 with meet departmental standards which shall comply with based 17 in part or in whole on specifications adopted by A.S.T.M. ASTM 18 international for biodiesel or biodiesel blended fuel, to 19 every extent applicable , as determined by rules adopted by the 20 department. the department, subject to the following: 21 (1) Biodiesel must conform to A.S.T.M. meet departmental 22 standards based in whole or in part on ASTM international 23 specification D6751 , or a successor A.S.T.M. ASTM international 24 specification , as established by rules adopted by the 25 department rule . The specification shall apply to biodiesel 26 before it leaves its place of manufacture. 27 (2) At least one five percent of biodiesel blended fuel by 28 volume must be biodiesel. 29 (3) The biodiesel may be blended with diesel fuel whose 30 sulfur, aromatic, lubricity, and cetane levels do not comply 31 with A.S.T.M. ASTM international specification D975 grades 32 1-D or 2-D, low sulfur 1-D or 2-D, or ultra-low sulfur grades 33 1-D or 2-D, provided that the finished biodiesel blended fuel 34 meets A.S.T.M. international specification D975 or a successor 35 -8- LSB 5280XD (5) 89 da/ns 8/ 17

S.F. _____ H.F. _____ A.S.T.M. international specification as established by rules 1 adopted by the department departmental standards as required in 2 subparagraph (1) . 3 (4) Biodiesel blended fuel classified as B-6 or higher 4 but not higher than B-20 must conform to A.S.T.M. meet 5 departmental standards based in whole or in part on ASTM 6 international specification D7467 , or a successor A.S.T.M. ASTM 7 international specification , as established by rules adopted 8 by the department rule . 9 5. Motor fuel shall be classified as follows: 10 a. (1) Ethanol shall be classified as E-100. 11 (2) Ethanol blended gasoline formulated with a percentage 12 of between sixty-eight and eighty-three percent by volume of 13 ethanol shall be classified as E-85. 14 (3) Ethanol blended gasoline , other than ethanol blended 15 gasoline classified as E-85, shall be designated classified as 16 E-xx where “xx” is the volume percent of ethanol in the ethanol 17 blended gasoline. 18 b. (1) Biobutanol shall be classified as Bu-100. 19 (2) Biobutanol blended gasoline shall be designated 20 classified as Bu-xx where “xx” is the volume percent of 21 biobutanol in the biobutanol blended gasoline. 22 c. (1) Biodiesel shall be classified as B-100. 23 (2) Biodiesel blended fuel shall be designated classified 24 as B-xx where “xx” is the volume percent of biodiesel. 25 6. Motor fuel shall not contain more than trace amounts of 26 MTBE, as provided in section 214A.18 . 27 Sec. 14. Section 214A.2A, subsection 1, Code 2022, is 28 amended to read as follows: 29 1. Fuel which is sold or is kept, offered, or exposed for 30 sale as kerosene shall be labeled as kerosene. The label shall 31 include the word “kerosene” or the designation “K1 kerosene”, 32 and shall indicate that the kerosene is in compliance with the 33 standard specification adopted by A.S.T.M. ASTM international 34 specification D3699 (1982) , or a successor ASTM international 35 -9- LSB 5280XD (5) 89 da/ns 9/ 17

S.F. _____ H.F. _____ specification, established by rules adopted by the department . 1 Sec. 15. Section 214A.2B, Code 2022, is amended to read as 2 follows: 3 214A.2B Laboratory for motor fuel and biofuels. 4 A laboratory for motor fuel and biofuels is established at 5 a community college which is engaged in biofuels testing on 6 July 1, 2007, and which testing includes but is not limited to 7 B-20 biodiesel fuel testing for motor trucks and the ability of 8 biofuels to meet A.S.T.M. ASTM international standards. The 9 laboratory shall conduct testing of motor fuel sold in this 10 state and biofuel which is blended in motor fuel in this state 11 to ensure that the motor fuel or biofuels meet the requirements 12 in section 214A.2 . 13 Sec. 16. Section 214A.3, Code 2022, is amended to read as 14 follows: 15 214A.3 Advertising. 16 1. For all motor fuel, a A person shall not knowingly do any 17 of the following: 18 a. 1. Advertise the for sale of any motor fuel which that 19 does not meet the standards provided in section 214A.2 . 20 b. 2. Falsely advertise for sale the quality , type, or kind 21 of any motor fuel or a component of motor fuel. 22 c. 3. Add a coloring matter to the motor fuel which 23 misleads a person who is purchasing the motor fuel about the 24 quality of the motor fuel. 25 4. Falsely advertise for sale the classification of a motor 26 fuel as provided in section 214A.2. 27 2. For a renewable fuel, all of the following apply: 28 a. A person shall not knowingly falsely advertise that a 29 motor fuel is a renewable fuel or is not a renewable fuel. 30 b. (1) Ethanol blended gasoline sold by a dealer shall 31 be designated according to its classification as provided in 32 section 214A.2 . However, a person advertising E-9 or E-10 33 gasoline may only designate it as ethanol blended gasoline. A 34 person advertising ethanol blended gasoline formulated with a 35 -10- LSB 5280XD (5) 89 da/ns 10/ 17

S.F. _____ H.F. _____ percentage of between seventy and eighty-five percent by volume 1 of ethanol shall designate it as E-85. A person shall not 2 knowingly falsely advertise ethanol blended gasoline by using 3 an inaccurate designation in violation of this subparagraph. 4 (2) A person shall not knowingly falsely advertise 5 biobutanol blended gasoline by using an inaccurate designation 6 as provided in section 214A.2 . 7 (3) A person shall not knowingly falsely advertise 8 biodiesel fuel by using an inaccurate designation as provided 9 in section 214A.2 . 10 Sec. 17. Section 214A.5, subsection 2, Code 2022, is amended 11 to read as follows: 12 2. A wholesale dealer selling ethanol blended gasoline, 13 biobutanol blended gasoline, or biodiesel blended fuel to 14 a purchaser shall provide the purchaser with a statement 15 indicating its designation classification as provided in 16 section 214A.2 . The statement may be on the sales slip 17 provided in this section or a similar document, including but 18 not limited to a bill of lading or invoice. 19 Sec. 18. Section 214A.16, Code 2022, is amended to read as 20 follows: 21 214A.16 Notice of renewable fuel —— decal. 22 1. a. If ethanol blended gasoline is sold from a motor 23 fuel pump, the motor fuel pump shall have affixed a decal 24 identifying the ethanol blended gasoline. 25 b. If the motor fuel pump dispenses ethanol blended gasoline 26 classified as E-11 to E-15 for use in gasoline-powered vehicles 27 not required to be flexible fuel vehicles, the motor fuel pump 28 shall have affixed a decal as prescribed by the United States 29 environmental protection agency. 30 c. 1. a. If the motor fuel pump dispenses ethanol blended 31 gasoline classified as higher than standard ethanol blended 32 gasoline pursuant to section 214A.2 is advertised for sale or 33 sold at a retail motor fuel site , the motor fuel dispenser 34 dispensing the ethanol blended gasoline shall be affixed with a 35 -11- LSB 5280XD (5) 89 da/ns 11/ 17

S.F. _____ H.F. _____ decal s hall contain language stating that the classification 1 of the ethanol blended gasoline is for use in flexible fuel 2 vehicles. 3 d. b. If biobutanol blended gasoline is advertised for sale 4 or sold from at a retail motor fuel site, the motor fuel pump, 5 the motor fuel pump dispenser dispensing the biobutanol blended 6 gasoline shall have be affixed with a decal identifying the 7 classification of biobutanol blended gasoline. 8 e. If biodiesel fuel is sold from a motor fuel pump, the 9 motor fuel pump shall have affixed a decal identifying the 10 biodiesel fuel as provided in 16 C.F.R. pt. 306 . 11 2. The design and location of the decal shall be prescribed 12 by rules adopted by the department. A decal identifying a 13 renewable fuel shall be consistent with standards adopted 14 pursuant to section 159A.6 . The department may approve an 15 application to place a decal in a special location on a pump 16 dispenser or container or use a decal with special lettering 17 or colors, if the decal appears clear and conspicuous to the 18 consumer. The application shall be made in writing pursuant to 19 procedures adopted by the department. 20 Sec. 19. Section 452A.12, subsection 2, Code 2022, is 21 amended to read as follows: 22 2. A person while transporting motor fuel or undyed special 23 fuel from a refinery or marine or pipeline terminal in this 24 state or from a point outside this state over the highways 25 of this state in service other than that under subsection 26 1 shall carry in the vehicle a loading invoice showing the 27 name and address of the seller or consignor, the date and 28 place of loading, and the kind and quantity of motor fuel or 29 special fuel loaded, together with invoices showing the kind 30 and quantity of each delivery and the name and address of each 31 purchaser or consignee. An invoice carried pursuant to this 32 subsection for ethanol blended gasoline or biodiesel blended 33 fuel shall state its designation classification as provided in 34 section 214A.2 . 35 -12- LSB 5280XD (5) 89 da/ns 12/ 17

S.F. _____ H.F. _____ Sec. 20. Section 455G.31, subsection 1, paragraph b, Code 1 2022, is amended to read as follows: 2 b. Ethanol blended gasoline shall be designated classified 3 in the same manner as provided in section 214A.2 . 4 EXPLANATION 5 The inclusion of this explanation does not constitute agreement with 6 the explanation’s substance by the members of the general assembly. 7 GENERAL. This bill provides for programs and regulations 8 administered and enforced by the department of agriculture and 9 land stewardship (DALS). 10 CHOOSE IOWA PROMOTIONAL PROGRAM. The bill requires DALS 11 to establish and administer a choose Iowa promotional program 12 (program) in order to provide consumers a choice in purchasing 13 a food item originating as an agricultural commodity produced 14 on an Iowa farm (amended Code section 159.20). This includes 15 either (1) an agricultural commodity produced on an Iowa farm 16 or (2) a product processed in this state, if the product is 17 an agricultural commodity that has been prepared in Iowa, or 18 any of the product’s ingredients are agricultural commodities 19 produced on an Iowa farm (new Code section 159.29). DALS is 20 provided discretion to further define what constitutes an Iowa 21 farm and describe how an agricultural commodity originates on 22 an Iowa farm. 23 CHOOSE IOWA LOGO. As part of the program, DALS may establish 24 a choose Iowa logo (logo) to identify a food item originating 25 as an agricultural commodity produced on an Iowa farm. DALS 26 may register the logo as a mark with the secretary of state. 27 DALS may also register the logo as a trademark with the United 28 States patent and trademark office or as a copyright with the 29 United States copyright office. The use of the logo does not 30 create an express or implied warranty; involve state or federal 31 labeling requirements; or indicate the grade, specification, 32 standard, or value of a food item (new Code section 159.30). 33 CHOOSE IOWA PROMOTIONAL PROGRAM —— LICENSING AGREEMENTS AND 34 FEES. DALS may enter into a licensing agreement (agreement) 35 -13- LSB 5280XD (5) 89 da/ns 13/ 17

S.F. _____ H.F. _____ with a person who applies to use the logo. An agreement cannot 1 be for more than five years. DALS must evaluate and approve or 2 disapprove applications based on criteria established by rule. 3 DALS may also establish application and license fees by rule. 4 CHOOSE IOWA FUND. A choose Iowa fund (fund) is established 5 in the state treasury under DALS’ management and control. The 6 fund includes moneys that DALS collects in fees or otherwise 7 receives, including by appropriation or gift. DALS must use 8 the moneys exclusively to carry out the provisions of the bill. 9 PESTICIDE REGULATION. The bill amends Code chapter 206, 10 “the Pesticide Act of Iowa” (Code section 206.1) which in part 11 regulates commercial and private applicators. Generally, 12 a person in business as a commercial applicator (applying 13 pesticides to another person’s land) must be certified and 14 licensed (Code sections 206.5 and 206.6). A private applicator 15 (e.g., a farmer) applying a restricted use pesticide must 16 be certified (Code section 206.5). During the last regular 17 session, the general assembly enacted SF 482 (2021 Acts, 18 chapter 28) which in part provides that a private applicator is 19 subject to the same civil penalty as a commercial applicator 20 for violating a provision of the Code chapter (amended Code 21 section 206.19). The Act provided that the amount for each 22 violation committed by a commercial applicator or private 23 applicator cannot exceed $500 for each violation. The bill 24 amends the provision by changing the term from “violation” back 25 to “offense”. 26 MOTOR FUEL REGULATION —— BACKGROUND. DALS regulates persons 27 advertising for sale or selling motor fuel on a wholesale 28 or retail basis (Code chapter 214A) as well as motor fuel 29 infrastructure used to store and dispense motor fuel at a 30 retail motor fuel site owned or operated by a retail dealer 31 and, in particular, metered motor fuel pumps located at a 32 retail motor fuel site (Code chapter 214). Three types of 33 motor fuel are regulated by DALS, including gasoline and diesel 34 fuel (Code section 214A.2), and kerosene (Code sections 214A.2 35 -14- LSB 5280XD (5) 89 da/ns 14/ 17

S.F. _____ H.F. _____ and 214A.2A) as well as their respective components. A biofuel 1 is a component used to formulate a motor fuel and is closely 2 associated with formulations of both gasoline and diesel fuel. 3 A renewable fuel is a term which refers to either a biofuel 4 or a motor fuel blended with a biofuel. A biofuel includes 5 ethanol which is grain alcohol (e.g., derived from corn) used 6 to produce ethanol blended gasoline, biobutanol which is 7 isobutyl or n-butyl alcohol (derived from the same feedstocks 8 as ethanol but includes corn stover) used to produce biobutanol 9 blended gasoline, and biodiesel which is often a vegetable oil 10 (e.g., derived from soybeans) used to produce biodiesel blended 11 fuel. DALS establishes standards for these motor fuels and 12 their components based on two outside sources of authority: 13 (1) specifications recommended by ASTM international, a 14 private globally recognized organization, and (2) requirements 15 adopted by the United States environmental protection agency 16 (EPA). The EPA and the United States federal trade commission 17 (FTC) also regulate the labeling of motor fuel dispensers by 18 requiring information about the motor fuel to be dispensed, 19 such as the octane level of gasoline and the percentage content 20 of any biofuel component (42 U.S.C. §7545 and 40 C.F.R. pt. 21 1090, 15 U.S.C. §2801 et seq., 42 U.S.C. §17021, 16 C.F.R. 22 pt. 306, and 40 C.F.R. §80.1501(a)). DALS’ regulation of a 23 renewable fuel depends upon its classification expressed as an 24 abbreviation identifying the renewable fuel according to type 25 followed by a number representing the biofuel percentage by 26 volume usually measured by gallon. The designation “xx” is 27 used as a stand-in designation for the actual percentage of a 28 biofuel percentage threshold (amended Code section 214A.2(5)) 29 depending upon the Code provision (e.g., the E-15 plus gasoline 30 promotion tax credit in Code section 422.11Y). One special 31 exception is E-85 gasoline which is based on a percentage range 32 of between 70 and 85 percent by volume of ethanol. 33 MOTOR FUEL REGULATION —— REVISION OF TERMS. The bill revises 34 certain terms, including by changing “A.S.T.M. international” 35 -15- LSB 5280XD (5) 89 da/ns 15/ 17

S.F. _____ H.F. _____ to “ASTM international” and defining “biodiesel” by referring 1 to its production method (amended Code section 214A.1). 2 The bill provides for the consistent use of certain terms, 3 including “specifications” which refers to recommendations 4 adopted by ASTM international, “requirements” which refers to 5 EPA regulations, and “standards” which refers to departmental 6 rules (amended Code section 214A.2). The bill also provides 7 for the consistent use of the term “standard” which is 8 occasionally referred to as “designation” (amended Code 9 sections 214A.2A, 214A.3, 214A.5, 452A.12, and 455G.31). The 10 bill provides that a label is to be placed on a “motor fuel 11 dispenser” rather than a “motor fuel pump” (amended Code 12 section 214A.16). 13 MOTOR FUEL REGULATION —— DEPARTMENTAL STANDARDS. The 14 bill provides that the minimum octane rating for premium 15 grade gasoline is changed from 90 to 91 (amended Code 16 section 214A.2(2)). For all three types of motor fuel, 17 departmental standards may be based in part or in whole on 18 ASTM international specifications, and may include successor 19 specifications. The bill eliminates a requirement recognizing 20 that EPA must grant a seasonal waiver from its requirements 21 before a retail dealer may advertise for sale or sell ethanol 22 blended gasoline (amended Code section 214A.2(3)). The 23 threshold for ethanol blended gasoline is increased from E-9 to 24 E-10 (amended Code section 214A.2(3)) and from B-1 to B-5 for 25 biodiesel blended motor fuel (amended Code section 214A.2(4)). 26 MOTOR FUEL REGULATION —— CLASSIFICATIONS. The bill 27 adds subclassifications for biofuels including for ethanol 28 classified as E-100, biobutanol classified as Bu-100, and 29 biodiesel classified as B-100. The bill also recognizes E-85 30 according to its revised percentage range, which is 68 to 83 31 percent. 32 MOTOR FUEL REGULATION —— ADVERTISING. The bill revises 33 a provision which prohibits a person from knowingly falsely 34 advertising for sale motor fuel (amended Code section 214A.3). 35 -16- LSB 5280XD (5) 89 da/ns 16/ 17

S.F. _____ H.F. _____ The bill replaces a provision that prohibits a person from 1 falsely advertising that a motor fuel is or is not a renewable 2 fuel with a provision that prohibits a person from falsely 3 advertising the classification of a renewable fuel. The bill 4 also eliminates a requirement that a motor fuel pump (motor 5 fuel dispenser) be affixed with a label that identifies the 6 dispensed gasoline as ethanol blended gasoline (e.g., E-10), 7 that identifies ethanol blended gasoline classified from E-11 8 to E-15, or that identifies dispensed diesel fuel as biodiesel 9 blended fuel. The bill retains a state requirement that a 10 motor fuel dispenser identify gasoline classified as higher 11 than E-15 (e.g., E-85) or any classification of biobutanol 12 blended gasoline. The bill does not affect federal labeling 13 requirements. 14 APPLICABLE PENALTIES. A person who violates a provision 15 of Code chapter 214A is guilty of a serious misdemeanor. A 16 serious misdemeanor is punishable by confinement for no more 17 than one year and a fine of at least $430 but not more than 18 $2,560. However, the state may initiative a substitute civil 19 enforcement action as an administrative action by DALS or as 20 a judicial proceeding by the attorney general upon referral 21 by DALS. The civil penalty must be for at least $100 but 22 not more than $1,000 for each violation and each day of a 23 continuing violation constitutes a separate offense (Code 24 section 214A.11). 25 -17- LSB 5280XD (5) 89 da/ns 17/ 17