Senate
Study
Bill
3084
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
GOVERNOR
BILL)
A
BILL
FOR
An
Act
relating
to
renewable
fuels,
including
ethanol
1
blended
gasoline
and
biodiesel
blended
fuel
used
to
power
2
internal
combustion
engines,
by
providing
for
compliance
3
requirements
and
promotional
initiatives
that
relate
to
4
establishing
classifications
and
standards
for
renewable
5
fuels,
advertising
and
selling
renewable
fuels,
storing
6
and
dispensing
renewable
fuels,
using
state
motor
vehicles
7
powered
by
renewable
fuels,
and
taxes,
tax
credits,
and
tax
8
refunds
relating
to
renewable
fuels;
providing
penalties
and
9
making
penalties
applicable;
and
including
effective
date
10
and
retroactive
applicability
provisions.
11
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
12
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DIVISION
I
1
COMPLIANCE
REQUIREMENTS
——
STANDARDS
2
AND
CLASSIFICATIONS
FOR
GASOLINE
——
MOTOR
FUEL
STORAGE
3
AND
DISPENSING
INFRASTRUCTURE
4
PART
A
5
E-15
ACCESS
STANDARD
6
Section
1.
NEW
SECTION
.
214A.31
E-15
access
standard
——
7
establishment.
8
In
order
to
ensure
consumer
access
to
gasoline
containing
9
fifteen
percent
ethanol
by
volume,
an
E-15
access
standard
is
10
established
in
accordance
with
2013
Iowa
Acts,
ch.
127,
§1,
11
section
159A.1,
and
this
subchapter.
12
Sec.
2.
NEW
SECTION
.
214A.32
E-15
access
standard
——
retail
13
dealer
compliance.
14
1.
Except
as
provided
in
sections
214A.33
through
214A.35,
15
a
retail
dealer
owning
or
operating
a
retail
motor
fuel
site
16
shall
comply
with
the
E-15
access
standard
as
provided
in
this
17
section.
18
2.
In
order
to
comply
with
the
E-15
access
standard,
a
19
retail
dealer
must
advertise
for
sale
and
sell
E-15
gasoline
20
from
a
minimum
number
of
qualifying
motor
fuel
dispensers
21
located
at
the
retail
dealer’s
retail
motor
fuel
site.
A
22
qualifying
motor
fuel
dispenser
must
be
capable
of
dispensing
23
gasoline
at
all
times
that
it
is
in
operation.
24
a.
Except
as
provided
in
paragraph
“b”
,
a
retail
dealer
25
shall
comply
with
a
general
E-15
access
standard
by
dispensing
26
E-15
gasoline
from
the
following:
27
(1)
One
qualified
motor
fuel
dispenser,
if
there
is
only
one
28
qualified
motor
fuel
dispenser.
29
(2)
At
least
fifty
percent
of
all
qualified
motor
fuel
30
dispensers,
if
there
are
more
than
one
qualified
motor
fuel
31
dispenser.
32
b.
(1)
A
retail
dealer
complies
with
an
alternative
E-15
33
access
standard
if
all
of
the
following
apply:
34
(a)
On
and
after
January
1,
2023,
the
retail
dealer
does
not
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install,
replace,
or
convert
a
motor
fuel
storage
tank.
1
(b)
On
and
after
January
1,
2026,
the
retail
dealer
2
advertises
for
sale
and
sells
E-15
gasoline
from
at
least
one
3
qualifying
motor
fuel
dispenser.
4
(2)
A
retail
dealer
who
no
longer
complies
with
the
5
alternative
E-15
access
standard
as
provided
in
subparagraph
6
(1)
shall
immediately
comply
with
the
general
E-15
access
7
standard
as
provided
in
paragraph
“a”
.
8
c.
The
E-15
access
standard
does
not
prohibit
a
retail
9
dealer
owning
or
operating
a
retail
motor
fuel
site
from
10
advertising
for
sale
and
selling
motor
fuel
from
any
number
of
11
nonqualifying
motor
fuel
dispensers.
A
nonqualifying
motor
12
fuel
dispenser
is
limited
to
any
of
the
following:
13
(1)
A
dispenser
that
exclusively
dispenses
any
of
the
14
following:
15
(a)
Aviation
fuel.
16
(b)
Diesel
fuel.
17
(c)
Kerosene.
18
(2)
A
dispenser
that
is
part
of
a
tank
vehicle
as
defined
19
in
section
321.1
that
is
not
used
to
dispense
gasoline
on
the
20
premises
of
the
retail
motor
fuel
site.
21
3.
a.
A
retail
dealer
is
not
in
violation
of
this
section
22
during
any
period
of
noncompliance
with
the
E-15
access
23
standard
caused
by
an
excusable
event.
An
excusable
event
is
24
limited
to
any
of
the
following:
25
(1)
The
maintenance,
repair,
or
reconditioning
of
motor
26
fuel
storage
and
dispensing
infrastructure.
27
(2)
The
installation,
expansion,
replacement,
or
conversion
28
of
motor
fuel
storage
and
dispensing
infrastructure.
29
b.
The
department
may
require
that
a
retail
dealer
30
notify
the
department
that
an
excusable
event
as
described
31
in
paragraph
“a”
is
planned
to
occur,
is
occurring,
or
has
32
occurred.
The
department
may
inspect
the
applicable
retail
33
motor
fuel
site
to
determine
whether
the
noncompliance
is
34
caused
by
an
excusable
event.
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4.
a.
This
section
shall
be
implemented
on
January
1,
2023.
1
b.
This
subsection
is
repealed
January
2,
2023.
2
Sec.
3.
NEW
SECTION
.
214A.33
Suspension
of
E-15
access
3
standard
by
order
issued
by
governor.
4
1.
The
governor
may
issue
or
renew
an
executive
order
that
5
temporarily
suspends
the
requirement
in
section
214A.32
that
a
6
retail
dealer
comply
with
the
E-15
access
standard
at
a
retail
7
motor
fuel
site
owned
or
operated
by
the
retail
dealer.
8
2.
The
E-15
access
standard
suspension
order
as
described
in
9
subsection
1
must
be
supported
by
the
governor’s
determination
10
that
any
of
the
following
apply:
11
a.
There
is
an
inadequate
supply
of
E-15
gasoline.
12
b.
The
market
price
of
E-15
gasoline
may
cause
consumers
to
13
suffer
economic
hardship.
14
c.
Existing
motor
fuel
storage
and
dispensing
infrastructure
15
is
not
capable
of
storing
and
dispensing
E-15
gasoline.
16
3.
The
governor
may
issue
or
renew
an
executive
order
under
17
this
section
on
a
statewide
or
regional
basis.
18
4.
The
E-15
access
standard
suspension
order
shall
take
19
effect
on
its
date
of
publication
in
the
Iowa
administrative
20
bulletin,
unless
the
order
specifies
a
later
date.
The
order
21
shall
expire
one
year
from
its
effective
date
unless
a
shorter
22
period
is
stated
in
the
order.
The
early
expiration
of
the
23
order
may
also
occur
based
on
circumstances
described
in
the
24
order.
25
5.
a.
This
section
shall
be
implemented
on
January
1,
2023.
26
b.
This
subsection
is
repealed
January
2,
2023.
27
Sec.
4.
NEW
SECTION
.
214A.34
Waiver
of
E-15
access
28
standard
by
order
issued
by
secretary
of
agriculture
——
E-15
29
unavailability.
30
1.
The
secretary
of
agriculture
may
issue
an
administrative
31
order
that
temporarily
waives
the
requirement
in
section
32
214A.32
that
a
retail
dealer
comply
with
the
E-15
access
33
standard
at
a
retail
motor
fuel
site
owned
or
operated
by
the
34
retail
dealer
based
on
E-15
gasoline
availability.
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2.
A
retail
dealer
may
apply
for
an
E-15
unavailability
1
waiver
order
as
described
in
subsection
1
by
submitting
an
2
application
to
the
department
in
a
manner
and
according
to
3
procedures
required
by
the
department.
4
a.
The
application
must
be
supported
by
credible
evidence
5
that
the
retail
dealer
has
not
been
able
to
reasonably
obtain
6
E-15
gasoline
to
be
advertised
for
sale
and
sold
at
the
retail
7
dealer’s
retail
motor
fuel
site.
8
b.
The
retail
dealer
must
sign
the
application
which
shall
9
include
a
statement
that
the
retail
dealer
swears
and
affirms
10
that
all
information
in
the
application
completed
by
the
retail
11
dealer
is
true
and
correct.
12
3.
The
department
shall
publish
a
copy
of
the
E-15
13
unavailability
waiver
order
on
the
department’s
internet
site
14
within
ten
days
after
the
order’s
issuance.
15
4.
The
E-15
unavailability
waiver
order
shall
take
effect
16
on
its
date
of
publication
on
the
department’s
internet
site,
17
unless
the
order
specifies
a
later
date.
The
order
shall
18
expire
six
months
from
its
effective
date
unless
a
shorter
19
period
is
stated
in
the
order.
The
early
expiration
of
the
20
order
may
also
occur
based
on
circumstances
described
in
the
21
order.
22
5.
a.
This
section
shall
be
implemented
on
January
1,
2023.
23
b.
This
subsection
is
repealed
January
2,
2023.
24
Sec.
5.
NEW
SECTION
.
214A.35
Waiver
of
E-15
access
standard
25
by
order
issued
by
secretary
of
agriculture
——
E-15
incompatible
26
infrastructure.
27
1.
The
secretary
of
agriculture
may
issue
an
administrative
28
order
that
temporarily
waives
the
requirement
in
section
29
214A.32
that
a
retail
dealer
comply
with
the
E-15
access
30
standard
at
a
retail
motor
fuel
site
owned
or
operated
by
the
31
retail
dealer
based
on
the
incompatibility
of
the
motor
fuel
32
storage
and
dispensing
infrastructure
to
store
and
dispense
33
E-15
gasoline.
34
2.
A
retail
dealer
may
apply
for
an
E-15
incompatible
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infrastructure
waiver
order
as
described
in
subsection
1
by
1
submitting
an
application
to
the
department
in
a
manner
and
2
according
to
procedures
required
by
the
department.
3
a.
The
application
must
be
supported
by
credible
evidence
4
that
the
retail
dealer
is
unable
to
comply
with
the
E-15
5
access
standard
because
the
motor
fuel
storage
and
dispensing
6
infrastructure
located
at
the
retail
motor
fuel
site
is
not
7
compatible
with
the
use
of
E-15
gasoline
and
that
the
retail
8
dealer
is
eligible
for
a
class
1
or
class
2
waiver
as
provided
9
in
this
section.
10
b.
The
application
must
provide
information
required
to
11
be
completed
by
the
retail
dealer,
which
must
include
an
12
inventory
and
description
of
motor
fuel
storage
and
dispensing
13
infrastructure
located
at
the
retail
motor
fuel
site.
14
c.
The
department
may
require
a
retail
dealer
to
attach
any
15
supporting
documentation
to
the
application,
which
may
include
16
an
inspection
report
completed
by
a
person
certified
by
the
17
department
as
a
professional
retail
motor
fuel
site
installer.
18
The
certified
professional
retail
motor
fuel
site
installer
19
may
be
a
licensed
engineer
or
other
person
who
the
department
20
determines
is
qualified
by
education,
testing,
or
experience
to
21
oversee
a
project
involving
the
installation,
replacement,
or
22
conversion
of
motor
fuel
storage
and
dispensing
infrastructure,
23
and
who
is
able
to
provide
a
reliable
estimate
of
the
project’s
24
costs.
25
d.
The
department
shall
review
and
evaluate
an
application
26
to
determine
whether
it
is
supported
by
credible
evidence
27
sufficient
for
the
secretary
to
issue
an
order
granting
a
28
waiver
under
this
section.
The
department
shall
approve
or
29
disapprove
a
completed
application
within
one
hundred
twenty
30
days
following
the
date
that
the
application
was
delivered
to
31
the
department
for
filing.
32
e.
The
retail
dealer
must
sign
the
application
which
shall
33
include
a
statement
that
the
retail
dealer
swears
and
affirms
34
that
all
information
in
the
application
completed
by
the
retail
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dealer
is
true
and
correct.
If
a
certified
professional
retail
1
motor
fuel
site
installer
completes
an
inspection
report
to
2
support
an
application,
the
installer
shall
sign
a
statement
3
that
the
installer
swears
and
affirms
that
all
information
in
4
the
inspection
report
completed
by
the
installer
is
true
and
5
correct.
6
f.
The
department
may
inspect
the
premises
of
a
retail
7
motor
fuel
site
during
normal
business
hours
to
administer
and
8
enforce
the
provisions
of
this
section.
9
g.
The
department
of
agriculture
and
land
stewardship
10
may
cooperate
with
the
department
of
natural
resources
and
11
the
state
fire
marshal
in
administering
and
enforcing
the
12
provisions
of
this
section.
13
3.
The
department
shall
publish
a
copy
of
the
E-15
14
incompatible
infrastructure
waiver
order
on
the
department’s
15
internet
site
within
ten
days
after
the
order’s
issuance.
The
16
order
shall
take
effect
on
its
date
of
publication,
unless
the
17
order
specifies
a
later
date.
18
4.
a.
The
secretary
of
agriculture
shall
terminate
the
19
E-15
incompatible
infrastructure
waiver
order
if
a
terminable
20
event
has
occurred.
A
terminable
event
is
limited
to
any
of
21
the
following:
22
(1)
The
failure
of
a
retail
dealer
to
be
licensed
as
23
required
under
section
214.2
to
use
a
commercial
weighing
and
24
measuring
device
when
dispensing
gasoline.
25
(2)
The
cessation
of
the
retail
dealer’s
business
of
26
advertising
for
sale
or
selling
gasoline
at
the
retail
motor
27
fuel
site.
28
(3)
The
installation,
replacement,
or
conversion
of
a
motor
29
fuel
storage
tank
located
at
the
retail
motor
fuel
site.
30
b.
The
department
may
require
that
a
retail
dealer
31
notify
the
department
that
a
terminable
event
as
described
32
in
paragraph
“a”
is
planned
to
occur,
is
occurring,
or
has
33
occurred.
34
5.
a.
The
secretary
of
agriculture
may
issue
an
E-15
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incompatible
infrastructure
class
1
waiver
order.
If
the
1
department
determines
an
inspection
of
the
retail
motor
2
fuel
site
is
necessary,
it
may
either
conduct
the
inspection
3
or
accept
an
inspection
report
completed
by
a
certified
4
professional
retail
motor
fuel
site
installer.
5
b.
The
order
must
be
supported
by
credible
evidence
that
6
all
motor
fuel
storage
tanks
used
to
store
gasoline
that
are
7
located
at
the
retail
motor
fuel
site
fall
within
any
of
the
8
following
categories:
9
(1)
Each
motor
fuel
storage
tank
not
constructed
of
10
fiberglass
was
installed
during
or
prior
to
1985.
11
(2)
Each
motor
fuel
storage
tank
constructed
of
fiberglass
12
was
installed
during
or
prior
to
the
following
years:
13
(a)
For
a
double-wall
fiberglass
underground
motor
fuel
14
storage
tank,
1991.
15
(b)
For
a
single-wall
fiberglass
underground
motor
fuel
16
storage
tank,
1996.
17
6.
The
secretary
of
agriculture
may
issue
an
E-15
18
incompatible
infrastructure
class
2
waiver
order
which
shall
19
be
based
on
an
inspection
of
the
retail
motor
fuel
site.
The
20
department
may
either
conduct
the
inspection
and
complete
an
21
inspection
report
or
file
and
review
a
completed
inspection
22
report
submitted
by
a
certified
professional
retail
motor
fuel
23
site
installer.
24
a.
The
inspection
report
must
include
all
of
the
following:
25
(1)
A
completed
checklist
of
items
adopted
as
part
of
a
form
26
used
by
the
department
to
confirm
that
the
motor
fuel
storage
27
and
dispensing
infrastructure
located
at
the
retail
motor
fuel
28
site
is
not
compatible
with
E-15
gasoline.
29
(2)
The
total
estimated
cost
of
improving
the
retail
30
motor
fuel
site
to
comply
with
the
E-15
access
standard
by
31
installing,
replacing,
or
converting
the
motor
fuel
storage
32
and
dispensing
infrastructure
located
at
the
retail
motor
fuel
33
site.
34
b.
(1)
The
department
shall
determine
whether
to
issue
an
35
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E-15
incompatible
infrastructure
class
2
waiver
order
based
1
on
an
eligibility
assessment
which
shall
calculate
all
of
the
2
following:
3
(a)
The
total
estimated
cost
of
improvement
which
equals
the
4
total
estimated
cost
of
improving
the
retail
motor
fuel
site
to
5
comply
with
the
E-15
access
standard
based
on
the
department’s
6
analysis
of
the
inspection
report
described
in
paragraph
“a”
.
7
The
total
estimated
cost
of
improvement
shall
only
include
8
costs
used
to
calculate
the
amount
of
financial
incentives
9
that
may
be
awarded
by
the
renewable
fuel
infrastructure
10
board
to
a
retail
dealer
participating
in
the
renewable
fuel
11
infrastructure
program
for
retail
motor
fuel
sites
as
provided
12
in
section
159A.14.
13
(b)
The
E-15
infrastructure
base
amount
which
equals
the
14
maximum
cost
necessary
to
be
incurred
by
the
retail
dealer
15
in
order
to
receive
the
total
amount
of
standard
financial
16
incentives
that
could
be
awarded
to
the
retail
dealer
under
the
17
renewable
fuel
infrastructure
program
for
retail
motor
fuel
18
sites
as
provided
in
section
159A.14
in
order
to
comply
with
19
the
E-15
access
standard.
The
department’s
calculation
shall
20
not
include
any
of
the
following:
21
(i)
The
amount
of
any
prior
financial
incentives
awarded
22
to
the
retail
dealer
under
the
renewable
fuel
infrastructure
23
program
for
retail
motor
fuel
sites.
24
(ii)
Whether
the
retail
dealer
is
applying
for
or
may
be
25
awarded
any
future
financial
incentives
under
the
renewable
26
fuel
infrastructure
program
for
retail
motor
fuel
sites.
27
(2)
A
retail
dealer
is
only
eligible
to
be
issued
an
28
E-15
incompatible
infrastructure
class
2
waiver
order
if
29
the
department
determines
that
the
total
estimated
cost
of
30
improvement
as
described
in
subparagraph
(1),
subparagraph
31
division
(a),
exceeds
the
E-15
infrastructure
base
amount
as
32
described
in
subparagraph
(1),
subparagraph
division
(b).
33
7.
a.
This
section
shall
be
implemented
on
January
1,
2023.
34
b.
This
subsection
is
repealed
January
2,
2023.
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8.
This
section
is
repealed
January
1,
2041.
1
Sec.
6.
NEW
SECTION
.
214A.36
Disciplinary
action.
2
1.
The
department
may
refuse
to
issue
or
renew
and
may
3
suspend
or
revoke
a
license
issued
to
a
retail
dealer
pursuant
4
to
section
214.2
for
not
complying
with
the
E-15
access
5
standard
as
provided
in
section
214A.32,
including
rules
6
adopted
by
the
department
pursuant
to
section
214A.1A
to
7
administer
or
enforce
that
section.
8
2.
a.
This
section
shall
be
implemented
on
January
1,
2023.
9
b.
This
subsection
is
repealed
January
2,
2023.
10
Sec.
7.
ISSUANCE
OF
ORDERS
SUSPENDING
OR
WAIVING
E-15
ACCESS
11
STANDARD.
12
1.
The
governor
may
issue
an
E-15
access
standard
suspension
13
order
as
provided
in
section
214A.33,
as
enacted
in
this
part
14
of
this
division
of
this
Act,
prior
to
January
1,
2023,
if
the
15
governor
determines
it
is
necessary
to
issue
the
order
prior
16
to
that
date.
17
2.
The
secretary
of
agriculture
may
issue
an
E-15
18
unavailability
waiver
order
as
provided
in
section
214A.34,
as
19
enacted
in
this
part
of
this
division
of
this
Act,
prior
to
20
January
1,
2023,
if
the
secretary
determines
it
is
necessary
to
21
issue
the
order
prior
to
that
date.
22
3.
The
secretary
of
agriculture
may
issue
an
E-15
23
incompatible
infrastructure
waiver
order
as
provided
in
section
24
214A.35,
as
enacted
in
this
part
of
this
division
of
this
Act,
25
prior
to
January
1,
2023,
if
the
secretary
determines
it
is
26
necessary
to
issue
the
order
prior
to
that
date.
27
Sec.
8.
ADOPTION
OF
RULES
IMPLEMENTING
E-15
ACCESS
STANDARD
28
AND
E-15
INCOMPATIBLE
INFRASTRUCTURE
WAIVER
ORDER.
29
1.
The
department
of
agriculture
and
land
stewardship
30
shall
adopt
rules
pursuant
to
chapter
17A
prior
to
January
1,
31
2023,
as
necessary
to
administer
and
enforce
the
E-15
access
32
standard,
as
provided
in
section
214A.32,
as
enacted
in
this
33
part
of
this
division
of
this
Act.
34
2.
The
department
of
agriculture
and
land
stewardship
shall
35
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adopt
rules
pursuant
to
chapter
17A
prior
to
January
1,
2023,
1
as
necessary
to
administer
and
enforce
an
E-15
incompatible
2
infrastructure
waiver
order,
as
provided
in
section
214A.35,
as
3
enacted
in
this
part
of
this
division
of
this
Act.
4
PART
B
5
RELATED
RENEWABLE
FUELS
AND
INFRASTRUCTURE
PROVISIONS
6
Sec.
9.
Section
159A.6,
subsection
1,
paragraph
c,
Code
7
2022,
is
amended
by
striking
the
paragraph.
8
Sec.
10.
Section
214.1,
Code
2022,
is
amended
by
adding
the
9
following
new
subsections:
10
NEW
SUBSECTION
.
1A.
“Department”
means
the
department
of
11
agriculture
and
land
stewardship.
12
NEW
SUBSECTION
.
1B.
“E-15
gasoline”
or
“E-15”
means
the
13
same
as
defined
in
section
214A.1.
14
NEW
SUBSECTION
.
3A.
“Motor
fuel
dispenser”
or
“dispenser”
15
means
equipment
that
is
the
part
of
motor
fuel
storage
16
and
dispensing
infrastructure
that
includes
mechanical
or
17
electrical
systems
that
operate
a
motor
fuel
pump
dispensing
18
motor
fuel
from
a
motor
fuel
storage
tank
to
the
end
point
of
19
the
equipment’s
nozzle.
20
NEW
SUBSECTION
.
4A.
a.
“Motor
fuel
storage
and
dispensing
21
infrastructure”
or
“infrastructure”
means
equipment
used
to
do
22
any
of
the
following:
23
(1)
Store
and
dispense
motor
fuel.
24
(2)
Store,
blend,
and
dispense
motor
fuel.
25
b.
“Motor
fuel
storage
and
dispensing
infrastructure”
or
26
“infrastructure”
includes
but
is
not
limited
to
a
motor
fuel
27
storage
tank,
motor
fuel
pump
or
motor
fuel
blender
pump,
motor
28
fuel
dispenser,
and
associated
pipes,
hoses,
nozzles,
tubes,
29
lines,
fittings,
valves,
filters,
seals,
and
covers.
30
Sec.
11.
Section
214.1,
subsections
3,
4,
and
5,
Code
2022,
31
are
amended
to
read
as
follows:
32
3.
“Motor
fuel
blender
pump”
or
“blender
pump”
means
a
motor
33
fuel
meter
pump
that
measures
and
dispenses
a
type
of
motor
34
fuel
that
is
blended
from
to
formulate
two
or
more
different
35
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types
classifications
of
that
motor
fuels
and
which
may
1
dispense
more
than
one
type
of
blended
motor
fuel.
2
4.
“Motor
fuel
pump”
means
the
part
of
motor
fuel
storage
3
and
dispensing
infrastructure
that
is
a
meter
or
similar
4
commercial
weighing
and
measuring
device
used
to
measure
and
5
dispense
motor
fuel
originating
from
a
motor
fuel
storage
tank,
6
on
a
retail
basis.
7
5.
“Motor
fuel
storage
tank”
or
“storage
tank”
means
the
part
8
of
motor
fuel
storage
and
dispensing
infrastructure
that
is
an
9
aboveground
or
belowground
container
that
is
constituting
a
10
fixture
used
to
store
an
accumulation
of
motor
fuel.
11
Sec.
12.
Section
214.9,
Code
2022,
is
amended
to
read
as
12
follows:
13
214.9
Self-service
motor
fuel
pumps
dispensers
.
14
A
self-service
motor
fuel
dispenser
operating
a
motor
fuel
15
pump
located
at
a
retail
motor
fuel
site
may
be
equipped
with
16
an
automatic
latch-open
device
on
the
fuel
dispensing
hose
17
nozzle
only
if
the
nozzle
valve
is
the
automatic
closing
type.
18
Sec.
13.
NEW
SECTION
.
214.12
Inspections
of
motor
fuel
19
dispensers
——
E-15
access
standard.
20
1.
In
conducting
an
inspection
under
section
214.11,
an
21
inspector
for
the
department
shall
determine
if
a
retail
dealer
22
is
advertising
for
sale
and
selling
E-15
gasoline
at
a
retail
23
motor
fuel
site
in
compliance
with
the
E-15
access
standard
as
24
provided
in
section
214A.32.
25
2.
a.
This
section
shall
be
implemented
on
January
1,
2023.
26
b.
This
subsection
is
repealed
January
2,
2023.
27
Sec.
14.
Section
214A.1,
Code
2022,
is
amended
by
adding
the
28
following
new
subsections:
29
NEW
SUBSECTION
.
2A.
“B-20
biodiesel
fuel”
or
“B-20”
means
30
a
classification
of
biodiesel
blended
fuel
formulated
with
a
31
percentage
of
twenty
percent
by
volume
of
biodiesel,
if
the
32
formulation
meets
the
standards
provided
in
section
214A.2.
33
NEW
SUBSECTION
.
12A.
“E-15
gasoline”
or
“E-15”
means
a
34
classification
of
ethanol
blended
gasoline
formulated
with
a
35
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percentage
of
fifteen
percent
by
volume
of
ethanol,
if
the
1
formulation
meets
the
standards
provided
in
section
214A.2.
2
NEW
SUBSECTION
.
18A.
“Motor
fuel
dispenser”
or
“dispenser”
3
means
the
same
as
defined
in
section
214.1.
4
NEW
SUBSECTION
.
19A.
“Motor
fuel
storage
and
dispensing
5
infrastructure”
or
“infrastructure”
means
the
same
as
defined
6
in
section
214.1.
7
Sec.
15.
NEW
SECTION
.
214A.1A
Rules.
8
The
department
shall
adopt
rules
necessary
to
administer
and
9
enforce
this
chapter
in
conjunction
with
chapter
214.
10
Sec.
16.
Section
214A.2,
subsection
1,
Code
2022,
is
amended
11
to
read
as
follows:
12
1.
The
department
shall
adopt
rules
pursuant
to
chapter
13
17A
for
carrying
out
this
chapter
.
The
rules
may
include
but
14
are
not
limited
to
specifications
section
214A.1A
relating
15
to
standards
and
classifications
for
types
of
motor
fuel,
16
including
but
not
limited
to
gasoline
and
diesel
fuel.
The
17
rules
shall
provide
standards
and
classifications
for
a
18
renewable
fuel
such
as
ethanol
blended
gasoline,
biobutanol
19
blended
gasoline,
biodiesel,
biodiesel
blended
fuel,
and
20
motor
renewable
fuel
components
such
as
an
a
biofuel
or
other
21
oxygenate.
In
the
interest
of
uniformity,
the
department
shall
22
adopt
by
reference
other
specifications
standards
relating
to
23
tests
and
standards
specifications
for
types
of
motor
fuel,
24
including
renewable
fuel
and
motor
fuel
components,
established
25
by
the
United
States
environmental
protection
agency
and
26
A.S.T.M.
international.
27
Sec.
17.
Section
214A.2,
subsection
4,
paragraph
b,
Code
28
2022,
is
amended
by
adding
the
following
new
subparagraph:
29
NEW
SUBPARAGRAPH
.
(5)
(a)
Biodiesel
blended
fuel
30
classified
as
higher
than
B-20
must
conform
to
standards
31
adopted
by
the
department.
32
(b)
The
rules
adopted
by
the
department
of
agriculture
33
and
land
stewardship
establishing
standards
for
biodiesel
34
blended
fuel
classified
as
higher
than
B-20
shall
take
effect
35
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not
earlier
than
sixty
days
after
the
date
of
filing
in
1
accordance
with
section
17A.5,
subsection
2,
paragraph
“a”
.
The
2
department
of
agriculture
and
land
stewardship
shall
notify
3
the
legislative
services
agency,
the
governor,
the
department
4
of
natural
resources,
and
the
department
of
revenue
of
the
5
effective
date
of
the
rules
at
least
thirty
days
prior
to
the
6
effective
date
of
the
rules.
7
Sec.
18.
Section
214A.3,
subsection
2,
paragraph
b,
8
subparagraph
(1),
Code
2022,
is
amended
by
striking
the
9
subparagraph
and
inserting
in
lieu
thereof
the
following:
10
(1)
A
person
shall
not
knowingly
falsely
advertise
ethanol
11
blended
gasoline
by
using
an
inaccurate
classification
as
12
provided
in
section
214A.2.
13
Sec.
19.
Section
214A.3,
subsection
2,
paragraph
b,
14
subparagraphs
(2)
and
(3),
Code
2022,
are
amended
to
read
as
15
follows:
16
(2)
A
person
shall
not
knowingly
falsely
advertise
17
biobutanol
blended
gasoline
by
using
an
inaccurate
designation
18
classification
as
provided
in
section
214A.2
.
19
(3)
A
person
shall
not
knowingly
falsely
advertise
20
biodiesel
blended
fuel
by
using
an
inaccurate
designation
21
classification
as
provided
in
section
214A.2
.
22
Sec.
20.
Section
214A.8,
Code
2022,
is
amended
to
read
as
23
follows:
24
214A.8
Prohibition.
25
A
dealer
shall
not
knowingly
sell
motor
fuel
or
biofuel
26
in
the
state
that
fails
to
meet
applicable
standards
and
27
classifications
as
provided
in
section
214A.2
.
28
Sec.
21.
Section
214A.11,
subsection
2,
Code
2022,
is
29
amended
by
adding
the
following
new
paragraphs:
30
NEW
PARAGRAPH
.
c.
(1)
A
retail
dealer
who
submits
an
31
application
for
an
E-15
unavailability
waiver
order
under
32
section
214A.34
that
includes
information
that
is
not
true
and
33
correct
commits
perjury
as
provided
in
section
720.2.
34
(2)
(a)
This
paragraph
“c”
shall
be
implemented
on
January
35
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H.F.
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1,
2023.
1
(b)
This
subparagraph
is
repealed
January
2,
2023.
2
NEW
PARAGRAPH
.
d.
(1)
A
retail
dealer
who
submits
an
3
application
for
an
E-15
incompatible
infrastructure
waiver
4
order
under
section
214A.35
that
is
not
true
and
correct
5
commits
perjury
as
provided
in
section
720.2.
6
(2)
A
certified
professional
retail
motor
fuel
site
7
installer
who
submits
an
inspection
report
as
part
of
an
8
application
for
an
E-15
incompatible
infrastructure
waiver
9
order
under
section
214A.35
that
is
not
true
and
correct
10
commits
perjury
under
section
720.2.
11
(3)
(a)
This
paragraph
“d”
shall
be
implemented
on
January
12
1,
2023.
13
(b)
This
subparagraph
is
repealed
on
January
2,
2023.
14
Sec.
22.
Section
214A.20,
Code
2022,
is
amended
to
read
as
15
follows:
16
214A.20
Limitation
on
liability.
17
1.
A
retail
dealer
or
other
marketer,
pipeline
company,
18
refiner,
terminal
operator,
or
terminal
owner
is
not
liable
for
19
damages
caused
by
the
use
of
incompatible
motor
fuel
dispensed
20
from
a
motor
fuel
dispenser
located
at
the
retail
dealer’s
21
retail
motor
fuel
site,
if
all
of
the
following
apply:
22
a.
The
incompatible
motor
fuel
complies
with
the
23
specifications
standards
for
a
that
type
and
classification
of
24
motor
fuel
as
provided
in
section
214A.2
.
25
b.
The
incompatible
motor
fuel
is
selected
by
the
end
use
26
consumer
of
the
motor
fuel.
27
c.
The
incompatible
motor
fuel
is
dispensed
from
a
motor
28
fuel
pump
dispenser
that
correctly
labels
the
type
and
29
classification
of
fuel
dispensed
from
a
motor
fuel
storage
30
tank
.
31
2.
For
purposes
of
this
section
subsection
1
,
a
motor
fuel
32
is
incompatible
with
a
motor
according
to
the
manufacturer
of
33
the
motor.
34
Sec.
23.
REPEAL.
Section
214A.16,
Code
2022,
is
repealed.
35
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_____
H.F.
_____
PART
C
1
CODE
ORGANIZATION
2
Sec.
24.
DIRECTIONS
TO
THE
CODE
EDITOR
——
TRANSFERS.
3
1.
The
Code
editor
is
directed
to
make
the
following
4
transfers:
5
a.
Section
214A.3,
as
amended
in
this
division
of
this
Act,
6
to
section
214A.21.
7
b.
Section
214A.7
to
section
214A.22.
8
c.
Section
214A.8,
as
amended
in
this
division
of
this
Act,
9
to
section
214A.23.
10
d.
Section
214A.19
to
section
214A.24.
11
e.
Section
214A.20,
as
amended
in
this
division
of
this
Act,
12
to
section
214A.25.
13
2.
The
Code
editor
shall
correct
internal
references
in
the
14
Code
and
in
any
enacted
legislation
as
necessary
due
to
the
15
enactment
of
this
section.
16
Sec.
25.
DIRECTIONS
TO
THE
CODE
EDITOR
——
SUBCHAPTERS.
The
17
Code
editor
is
directed
to
divide
the
provisions
of
chapter
18
214A,
as
amended,
enacted,
or
transferred
in
this
division
of
19
this
Act,
into
subchapters
as
follows:
20
1.
Subchapter
I,
including
sections
214A.1
through
214A.20.
21
2.
Subchapter
II,
including
sections
214A.21
through
22
214A.30.
23
3.
Subchapter
III,
including
sections
214A.31
through
24
214A.36.
25
DIVISION
II
26
COMPLIANCE
REQUIREMENTS
——
RENEWABLE
FUEL
INFRASTRUCTURE
27
PART
A
28
PRINCIPAL
PROVISIONS
29
Sec.
26.
NEW
SECTION
.
455G.2A
Standards
and
classifications
30
of
motor
fuel.
31
For
purposes
of
this
chapter,
motor
fuel
must
meet
the
32
standards
and
classifications
as
provided
in
section
214A.2.
33
Sec.
27.
NEW
SECTION
.
455G.30
Definitions.
34
As
used
in
this
subchapter,
unless
the
context
otherwise
35
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S.F.
_____
H.F.
_____
requires:
1
1.
“Biodiesel
blended
fuel”
means
the
same
as
defined
in
2
section
214A.1
3
2.
“Department”
means
the
department
of
natural
resources.
4
3.
“Diesel
fuel”
means
the
same
as
defined
in
section
5
214A.1.
6
4.
“Diesel
fuel
storage
and
dispensing
infrastructure”
or
7
“diesel
infrastructure”
means
motor
fuel
storage
and
dispensing
8
infrastructure
as
defined
in
section
214.1
used
to
store
and
9
dispense
diesel
fuel,
including
biodiesel
blended
diesel
fuel,
10
at
a
retail
motor
fuel
site
as
defined
in
section
214A.1.
11
5.
“Ethanol
blended
gasoline”
means
the
same
as
defined
in
12
section
214A.1.
13
6.
“Gasoline
storage
and
dispensing
infrastructure”
14
or
“gasoline
infrastructure”
means
motor
fuel
storage
and
15
dispensing
infrastructure
as
defined
in
section
214.1
used
16
to
store
and
dispense
gasoline,
including
ethanol
blended
17
gasoline,
at
a
retail
motor
fuel
site
as
defined
in
section
18
214A.1.
19
7.
“Retail
dealer”
means
the
same
as
defined
in
section
20
214A.1.
21
Sec.
28.
Section
455G.31,
subsections
1
and
3,
Code
2022,
22
are
amended
by
striking
the
subsections.
23
Sec.
29.
Section
455G.31,
subsection
2,
Code
2022,
is
24
amended
to
read
as
follows:
25
2.
A
Subject
to
section
455G.32,
a
retail
dealer
may
26
use
gasoline
storage
and
dispensing
infrastructure
to
store
27
and
dispense
ethanol
blended
gasoline
classified
as
E-9
28
E-10
or
higher
if
the
department
of
natural
resources
under
29
this
subchapter
or
the
state
fire
marshal
under
chapter
101
30
determines
that
it
the
gasoline
infrastructure
is
compatible
31
with
the
classification
of
ethanol
blended
gasoline
being
used.
32
Sec.
30.
NEW
SECTION
.
455G.32
E-85
gasoline
compatible
33
infrastructure
——
compliance
requirement.
34
1.
A
retail
dealer
shall
not
install,
replace,
or
convert
35
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_____
H.F.
_____
gasoline
storage
and
dispensing
infrastructure
unless
the
1
installed,
replaced,
or
converted
gasoline
infrastructure
is
2
capable
of
storing
and
dispensing
ethanol
blended
gasoline
3
classified
as
E-85.
4
2.
The
infrastructure
must
be
all
of
the
following:
5
a.
Listed
as
compatible
for
use
with
ethanol
blended
6
gasoline
classified
as
E-85
by
an
independent
testing
7
laboratory
or
as
approved
by
the
manufacturer.
8
b.
Approved
by
the
department
or
state
fire
marshal
subject
9
to
conditions
determined
necessary
by
the
department
or
state
10
fire
marshal.
The
department
or
state
fire
marshal
may
waive
11
the
requirement
in
paragraph
“a”
upon
satisfaction
that
a
12
substitute
requirement
serves
the
same
purpose.
13
Sec.
31.
NEW
SECTION
.
455G.33
B-20
diesel
fuel
compatible
14
infrastructure
——
compliance
requirement.
15
1.
A
retail
dealer
shall
not
install,
replace,
or
convert
16
diesel
fuel
storage
and
dispensing
infrastructure
unless
the
17
installed,
replaced,
or
converted
diesel
fuel
infrastructure
18
is
capable
of
storing
and
dispensing
biodiesel
blended
fuel
19
classified
as
B-20
or
higher.
20
2.
The
infrastructure
must
be
all
of
the
following:
21
a.
Listed
as
compatible
for
use
with
biodiesel
blended
22
fuel
classified
as
B-20
or
higher
by
an
independent
testing
23
laboratory
or
as
approved
by
the
manufacturer.
24
b.
Approved
by
the
department
or
state
fire
marshal
subject
25
to
conditions
determined
necessary
by
the
department
or
state
26
fire
marshal.
The
department
or
state
fire
marshal
may
waive
27
the
requirement
in
paragraph
“a”
upon
satisfaction
that
a
28
substitute
requirement
serves
the
same
purpose.
29
Sec.
32.
EFFECTIVE
DATE.
This
part
of
this
division
of
this
30
Act
takes
effect
January
1,
2023.
31
PART
B
32
IMPLEMENTATION
33
Sec.
33.
ADMINISTRATIVE
RULES.
The
department
of
natural
34
resources
and
the
state
fire
marshal
may
adopt
rules
under
35
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_____
H.F.
_____
chapter
17A
prior
to
the
effective
date
of
part
A
of
this
1
division
of
this
Act,
which
rules
shall
take
effect
January
1,
2
2023.
3
DIVISION
III
4
COMPLIANCE
REQUIREMENTS
——
QUALIFIED
RENEWABLE
FUEL
USE
BY
5
STATE
MOTOR
VEHICLES
6
Sec.
34.
NEW
SECTION
.
8A.360
Special
definitions.
7
As
used
in
this
part,
unless
the
context
otherwise
requires:
8
1.
“Biodiesel
blended
fuel”
means
the
same
as
defined
in
9
section
214A.1.
10
2.
“Biofuel”
means
the
same
as
defined
in
section
214A.1.
11
3.
“Determination
period”
means
any
twelve-month
period
12
beginning
January
1
and
ending
December
31.
13
4.
“Ethanol
blended
gasoline”
means
the
same
as
defined
in
14
section
214A.1.
15
5.
“Qualified
renewable
fuel”
means
ethanol
blended
16
gasoline
or
biodiesel
blended
fuel
that
meets
the
standards
17
and
classifications
for
that
type
of
motor
fuel
as
provided
in
18
section
214A.2.
19
Sec.
35.
NEW
SECTION
.
8A.360A
Classification
of
qualified
20
renewable
fuels.
21
For
purposes
of
this
part,
a
qualified
renewable
fuel
must
22
meet
the
same
standards
and
classifications
as
provided
in
23
section
214A.2.
24
Sec.
36.
Section
8A.362,
subsection
3,
paragraph
b,
Code
25
2022,
is
amended
by
striking
the
paragraph
and
inserting
in
26
lieu
thereof
the
following:
27
b.
The
director
shall
provide
for
the
purchase
and
operation
28
of
motor
vehicles
using
qualified
renewable
fuels
and
for
the
29
purchase
of
qualified
renewable
fuels
used
to
operate
those
30
motor
vehicles
as
provided
in
section
8A.368.
31
Sec.
37.
NEW
SECTION
.
8A.368
Motor
vehicle
purchases
——
32
qualified
renewable
fuels.
33
1.
A
motor
vehicle
operating
using
an
internal
combustion
34
engine
powered
by
gasoline
or
diesel
fuel
as
described
in
35
-18-
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(24)
89
da/ns
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55
S.F.
_____
H.F.
_____
section
8A.362
shall
use
the
highest
possible
classification
of
1
a
qualified
renewable
fuel
if
all
of
the
following
apply:
2
a.
The
manufacturer
of
the
motor
vehicle
or
the
United
3
States
environmental
protection
agency
expressly
states
that
4
the
classification
of
a
qualified
renewable
fuel
is
compatible
5
with
the
motor
vehicle’s
normal
operation.
6
b.
That
classification
of
a
qualified
renewable
fuel
is
7
commercially
available
in
the
region
where
the
motor
vehicle
8
is
being
operated.
9
c.
No
emergency
situation
exists
that
requires
the
immediate
10
use
of
a
motor
fuel
regardless
of
whether
it
has
been
blended
11
with
a
biofuel.
12
2.
If
the
highest
possible
classification
of
a
qualified
13
renewable
fuel
is
available
to
power
an
engine
used
to
operate
14
a
motor
vehicle
as
provided
in
subsection
1,
a
state-issued
15
credit
card
shall
not
be
used
to
purchase
motor
fuel
other
than
16
that
classification
of
a
qualified
renewable
fuel.
17
3.
A
motor
vehicle
subject
to
this
section
shall
be
affixed
18
with
a
brightly
colored,
highly
visible
renewable
fuel
sticker.
19
The
qualified
renewable
fuel
sticker
shall
be
designed
by
20
the
department
of
agriculture
and
land
stewardship
to
notify
21
the
traveling
public
that
the
motor
vehicle
is
operating
22
using
an
internal
combustion
engine
powered
by
the
highest
23
possible
classification
of
that
qualified
renewable
fuel.
The
24
department
of
administrative
services
shall
distribute
the
25
stickers
to
state
agencies
maintaining
a
state
motor
pool.
26
However,
a
qualified
renewable
fuel
sticker
is
not
required
to
27
be
affixed
to
an
unmarked
motor
vehicle
used
for
purposes
of
28
providing
law
enforcement
or
security.
29
4.
As
part
of
the
department’s
competitive
bidding
30
procedure
for
the
purchase
of
a
motor
vehicle
operating
using
31
an
internal
combustion
engine
powered
by
diesel
fuel,
the
32
director
shall
require
a
bidder
to
certify
that
the
motor
33
vehicle’s
manufacturer
expressly
states
that
the
engine
is
34
capable
of
being
powered
by
biodiesel
blended
fuel
classified
35
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S.F.
_____
H.F.
_____
as
B-20
or
higher.
1
Sec.
38.
NEW
SECTION
.
8A.369
Motor
vehicle
purchases
——
2
qualified
renewable
fuels
——
reports.
3
1.
The
department
shall
compile
information
regarding
the
4
department’s
compliance
with
section
8A.368
during
the
previous
5
determination
period.
The
information
shall
include
all
of
the
6
following:
7
a.
Of
the
motor
vehicles
used
to
routinely
travel
on
the
8
state’s
highways
that
operate
using
internal
combustion
engines
9
powered
by
gasoline,
all
of
the
following:
10
(1)
The
total
number
of
such
motor
vehicles
according
to
11
model
year.
12
(2)
The
total
number
of
such
motor
vehicles
according
13
to
model
year
that
are
capable
of
operating
using
internal
14
combustion
engines
powered
by
ethanol
blended
gasoline
15
classified
as
E-15
and
E-85
according
to
the
express
warranty
16
of
the
motor
vehicle’s
manufacturer.
17
(3)
The
total
number
of
gallons
of
ethanol
blended
gasoline
18
classified
as
E-15,
and
the
total
number
of
gallons
of
ethanol
19
blended
gasoline
classified
as
E-85,
purchased
during
the
20
preceding
determination
period,
to
the
extent
such
information
21
may
be
practically
obtained.
22
b.
Of
the
motor
vehicles
used
to
routinely
travel
on
the
23
state’s
highways
that
operate
using
internal
combustion
engines
24
powered
by
diesel
fuel,
all
of
the
following:
25
(1)
The
total
number
of
such
motor
vehicles
according
to
26
model
year.
27
(2)
The
total
number
of
such
motor
vehicles
according
28
to
model
year
that
are
capable
of
operating
using
internal
29
combustion
engines
powered
by
biodiesel
blended
fuel
classified
30
as
B-20
or
higher
according
to
the
express
warranty
of
the
31
motor
vehicle’s
manufacturer.
32
(3)
The
total
number
of
gallons
of
biodiesel
blended
fuel
33
classified
as
B-20
or
higher
purchased
during
the
preceding
34
determination
period,
to
the
extent
such
information
may
be
35
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_____
H.F.
_____
practically
obtained.
1
2.
The
department
of
administrative
services
shall
2
prepare
a
state
fleet
qualified
renewable
fuels
compliance
3
report
which
shall
consolidate
information
compiled
by
the
4
department
under
subsection
1
together
with
information
5
compiled
by
the
commission
for
the
blind
pursuant
to
section
6
216B.3,
institutions
governed
by
the
state
board
of
regents
7
pursuant
to
section
262.25A,
the
department
of
transportation
8
pursuant
to
section
307.21,
and
the
department
of
corrections
9
pursuant
to
section
904.312A.
The
department
of
administrative
10
services
shall
submit
the
state
fleet
qualified
renewable
fuels
11
compliance
report
to
the
governor
and
general
assembly
not
12
later
than
March
1
of
each
year.
13
Sec.
39.
Section
216B.3,
subsection
16,
paragraph
a,
Code
14
2022,
is
amended
by
striking
the
paragraph
and
inserting
in
15
lieu
thereof
the
following:
16
a.
Provide
for
the
purchase
of
qualified
renewable
fuels
17
to
power
internal
combustion
engines
that
are
used
to
operate
18
motor
vehicles
and
for
the
purchase
of
motor
vehicles
operating
19
using
engines
powered
by
qualified
renewable
fuels
in
the
20
same
manner
required
for
the
director
of
the
department
of
21
administrative
services
pursuant
to
section
8A.368.
The
22
commission
shall
compile
information
regarding
compliance
23
with
the
provisions
of
this
paragraph
in
the
same
manner
as
24
the
department
of
administrative
services
pursuant
to
section
25
8A.369.
The
commission
shall
cooperate
with
the
department
26
of
administrative
services
in
preparing
the
annual
state
27
fleet
qualified
renewable
fuels
compliance
report
regarding
28
compliance
with
this
paragraph
as
provided
in
section
8A.369.
29
Sec.
40.
Section
262.25A,
subsection
2,
Code
2022,
is
30
amended
by
striking
the
subsection
and
inserting
in
lieu
31
thereof
the
following:
32
2.
An
institution
shall
provide
for
the
purchase
of
33
qualified
renewable
fuels
to
power
internal
combustion
engines
34
that
are
used
to
operate
motor
vehicles
and
for
the
purchase
35
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_____
H.F.
_____
of
motor
vehicles
operating
using
engines
powered
by
qualified
1
renewable
fuels
in
the
same
manner
required
for
the
director
of
2
the
department
of
administrative
services
pursuant
to
section
3
8A.368.
An
institution
shall
compile
information
regarding
4
compliance
with
the
provisions
of
this
subsection
in
the
same
5
manner
as
the
department
of
administrative
services
pursuant
6
to
section
8A.369.
The
state
board
of
regents
shall
cooperate
7
with
the
department
of
administrative
services
in
preparing
8
the
annual
state
fleet
qualified
renewable
fuels
compliance
9
report
regarding
compliance
with
this
subsection
as
provided
10
in
section
8A.369.
11
Sec.
41.
Section
307.21,
subsection
4,
Code
2022,
is
amended
12
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
13
following:
14
4.
The
administrator
shall
provide
for
the
purchase
15
of
qualified
renewable
fuels
to
power
internal
combustion
16
engines
that
are
used
to
operate
motor
vehicles
and
for
the
17
purchase
of
motor
vehicles
operating
using
engines
powered
18
by
qualified
renewable
fuels
in
the
same
manner
required
for
19
the
director
of
the
department
of
administrative
services
20
pursuant
to
section
8A.368.
The
department
of
transportation
21
shall
compile
information
regarding
compliance
with
the
22
provisions
of
this
subsection
in
the
same
manner
as
the
23
department
of
administrative
services
pursuant
to
section
24
8A.369.
The
department
of
transportation
shall
cooperate
25
with
the
department
of
administrative
services
in
preparing
26
the
annual
state
fleet
qualified
renewable
fuels
compliance
27
report
regarding
compliance
with
this
subsection
as
provided
28
in
section
8A.369.
29
Sec.
42.
Section
904.312A,
subsection
1,
Code
2022,
is
30
amended
by
striking
the
subsection
and
inserting
in
lieu
31
thereof
the
following:
32
1.
The
department
of
corrections
shall
provide
for
the
33
purchase
of
qualified
renewable
fuels
to
power
internal
34
combustion
engines
that
are
used
to
operate
motor
vehicles
and
35
-22-
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5021XL
(24)
89
da/ns
22/
55
S.F.
_____
H.F.
_____
for
the
purchase
of
motor
vehicles
operating
using
engines
1
powered
by
qualified
renewable
fuels
in
the
same
manner
2
required
for
the
director
of
the
department
of
administrative
3
services
pursuant
to
section
8A.368.
The
department
of
4
corrections
shall
compile
information
regarding
compliance
5
with
the
provisions
of
this
subsection
in
the
same
manner
as
6
the
department
of
administrative
services
pursuant
to
section
7
8A.369.
The
department
of
corrections
shall
cooperate
with
8
the
department
of
administrative
services
in
preparing
the
9
annual
state
fleet
qualified
renewable
fuels
compliance
report
10
regarding
compliance
with
this
subsection
as
provided
in
11
section
8A.369.
12
Sec.
43.
STATE
FLEET
QUALIFIED
RENEWABLE
FUELS
COMPLIANCE
13
REPORT.
The
department
of
administrative
services
shall
submit
14
its
first
state
fleet
qualified
renewable
fuels
compliance
15
report
as
required
pursuant
to
section
8A.369,
as
enacted
in
16
this
division
of
this
Act,
not
later
than
July
1,
2023.
17
DIVISION
IV
18
RENEWABLE
FUEL
STANDARDS
AND
19
CLASSIFICATIONS
——
PROMOTIONAL
INITIATIVES
APPLIED
20
TO
INCOME
TAXES
21
PART
A
22
E-85
GASOLINE
PROMOTION
TAX
CREDIT
23
Sec.
44.
Section
422.11O,
subsection
2,
paragraph
b,
Code
24
2022,
is
amended
to
read
as
follows:
25
b.
The
tax
credit
shall
apply
to
E-85
gasoline
that
meets
26
the
standards
for
that
classification
as
provided
in
section
27
214A.2
.
28
Sec.
45.
Section
422.11O,
subsection
5,
Code
2022,
is
29
amended
to
read
as
follows:
30
5.
a.
A
retail
dealer
is
eligible
to
claim
an
E-85
gasoline
31
promotion
tax
credit
as
provided
in
this
section
even
though
32
the
retail
dealer
claims
an
E-15
plus
gasoline
promotion
tax
33
credit
pursuant
to
section
422.11Y
for
the
same
tax
year.
34
b.
This
subsection
is
repealed
January
1,
2026.
35
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_____
H.F.
_____
Sec.
46.
Section
422.11O,
subsection
8,
Code
2022,
is
1
amended
to
read
as
follows:
2
8.
This
section
is
repealed
on
January
1,
2025
2028
.
3
Sec.
47.
Section
422.33,
subsection
11B,
paragraph
c,
Code
4
2022,
is
amended
to
read
as
follows:
5
c.
This
subsection
is
repealed
on
January
1,
2025
2028
.
6
Sec.
48.
2006
Iowa
Acts,
chapter
1142,
section
49,
7
subsection
3,
as
amended
by
2011
Iowa
Acts,
chapter
113,
8
section
20,
and
2016
Iowa
Acts,
chapter
1106,
section
6,
is
9
amended
to
read
as
follows:
10
3.
For
a
retail
dealer
who
may
claim
an
E-85
gasoline
11
promotion
tax
credit
under
section
422.11O
or
422.33,
12
subsection
11B
,
as
enacted
in
this
Act
and
amended
in
13
subsequent
Acts,
in
calendar
year
2024
2027
and
whose
tax
14
year
ends
prior
to
December
31,
2024
2027
,
the
retail
dealer
15
may
continue
to
claim
the
tax
credit
in
the
retail
dealer’s
16
following
tax
year.
In
that
case,
the
tax
credit
shall
be
17
calculated
in
the
same
manner
as
provided
in
section
422.11O
18
or
422.33,
subsection
11B
,
as
enacted
in
this
Act
and
amended
19
in
subsequent
Acts,
for
the
remaining
period
beginning
on
the
20
first
day
of
the
retail
dealer’s
new
tax
year
until
December
21
31,
2024
2027
.
For
that
remaining
period,
the
tax
credit
shall
22
be
calculated
in
the
same
manner
as
a
retail
dealer
whose
tax
23
year
began
on
the
previous
January
1
and
who
is
calculating
the
24
tax
credit
on
December
31,
2024
2027
.
25
PART
B
26
BIODIESEL
BLENDED
FUEL
TAX
CREDIT
27
Sec.
49.
Section
422.11P,
subsection
3,
paragraph
b,
Code
28
2022,
is
amended
to
read
as
follows:
29
b.
The
tax
credit
shall
apply
to
biodiesel
blended
fuel
30
classified
as
provided
in
this
section
,
if
the
classification
31
meets
the
standards
provided
in
section
214A.2
.
In
ensuring
32
that
biodiesel
blended
fuel
meets
the
classification
33
requirements
of
this
section
,
the
department
shall
take
34
into
account
reasonable
variances
due
to
testing
and
other
35
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_____
H.F.
_____
limitations.
The
department
shall
adopt
rules
to
provide
that
1
where
a
blending
error
occurs
and
an
insufficient
amount
of
2
biodiesel
has
inadvertently
been
blended
with
petroleum-based
3
diesel
fuel
so
that
the
mixture
fails
to
qualify
as
B-11
or
4
higher
a
one
percent
tolerance
applies
when
classifying
the
5
biodiesel
blended
fuel.
6
Sec.
50.
Section
422.11P,
subsection
4,
Code
2022,
is
7
amended
by
striking
the
subsection
and
inserting
in
lieu
8
thereof
the
following:
9
4.
A
retail
dealer
whose
tax
year
is
on
a
calendar
10
year
basis
shall
calculate
the
amount
of
the
tax
credit
by
11
multiplying
a
designated
rate
by
the
retail
dealer’s
total
12
biodiesel
blended
fuel
gallonage
as
provided
in
section
452A.31
13
which
qualifies
under
this
subsection.
14
a.
In
order
to
qualify
for
the
tax
credit,
the
biodiesel
15
blended
fuel
must
be
classified
as
B-11
or
higher
as
provided
16
in
paragraph
“b”
.
17
b.
The
designated
rate
is
determined
as
follows:
18
(1)
For
biodiesel
blended
fuel
classified
as
B-11
or
higher
19
but
not
as
high
as
B-20,
the
designated
rate
is
five
cents.
20
(2)
For
biodiesel
blended
fuel
classified
as
B-20
or
higher
21
but
not
as
high
as
B-30,
the
designated
rate
is
seven
cents.
22
However,
a
classification
higher
than
B-20
does
not
qualify
23
for
a
tax
credit
under
this
subparagraph
unless
standards
for
24
that
classification
have
been
established
by
the
department
of
25
agriculture
and
land
stewardship
pursuant
to
section
214A.2.
26
(3)
For
biodiesel
blended
fuel
classified
as
B-30
or
27
higher,
the
designated
rate
is
ten
cents.
A
classification
of
28
B-30
or
higher
does
not
qualify
for
a
tax
credit
under
this
29
subparagraph
unless
standards
for
that
classification
have
30
been
established
by
the
department
of
agriculture
and
land
31
stewardship
pursuant
to
section
214A.2.
32
Sec.
51.
Section
422.11P,
subsection
8,
Code
2022,
is
33
amended
to
read
as
follows:
34
8.
This
section
is
repealed
January
1,
2025
2028
.
35
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5021XL
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89
da/ns
25/
55
S.F.
_____
H.F.
_____
Sec.
52.
Section
422.33,
subsection
11C,
paragraph
c,
Code
1
2022,
is
amended
to
read
as
follows:
2
c.
This
subsection
is
repealed
on
January
1,
2025
2028
.
3
Sec.
53.
2011
Iowa
Acts,
chapter
113,
section
31,
as
amended
4
by
2016
Iowa
Acts,
chapter
1106,
section
10,
is
amended
to
read
5
as
follows:
6
SEC.
31.
TAX
CREDIT
AVAILABILITY.
For
a
retail
dealer
7
who
may
claim
a
biodiesel
blended
fuel
promotion
tax
credit
8
under
section
422.11P
or
422.33,
subsection
11C
,
as
amended
9
in
this
Act
and
amended
in
subsequent
Acts,
in
calendar
year
10
2024
2027
,
and
whose
tax
year
ends
prior
to
December
31,
2024
11
2027
,
the
retail
dealer
may
continue
to
claim
the
tax
credit
in
12
the
retail
dealer’s
following
tax
year.
In
that
case,
the
tax
13
credit
shall
be
calculated
in
the
same
manner
as
provided
in
14
section
422.11P
or
422.33,
subsection
11C
,
as
amended
in
this
15
Act
and
amended
in
subsequent
Acts,
for
the
remaining
period
16
beginning
on
the
first
day
of
the
retail
dealer’s
new
tax
year
17
until
December
31,
2024
2027
.
For
that
remaining
period,
the
18
tax
credit
shall
be
calculated
in
the
same
manner
as
a
retail
19
dealer
whose
tax
year
began
on
the
previous
January
1
and
who
20
is
calculating
the
tax
credit
on
December
31,
2024
2027
.
21
Sec.
54.
EFFECTIVE
DATE.
This
part
of
this
division
of
this
22
Act
takes
effect
January
1,
2023.
23
PART
C
24
E-15
PLUS
GASOLINE
PROMOTION
TAX
CREDIT
25
Sec.
55.
Section
422.11Y,
subsection
4,
Code
2022,
is
26
amended
by
striking
the
subsection
and
inserting
in
lieu
27
thereof
the
following:
28
4.
A
retail
dealer
whose
tax
year
is
on
a
calendar
29
year
basis
shall
calculate
the
amount
of
the
tax
credit
by
30
multiplying
a
designated
rate
by
the
retail
dealer’s
total
31
ethanol
blended
gasoline
gallonage
as
provided
in
section
32
452A.31
which
qualifies
under
this
subsection.
33
a.
In
order
to
qualify
for
the
tax
credit,
the
ethanol
34
blended
gasoline
must
be
classified
as
E-15
or
higher
but
must
35
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89
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55
S.F.
_____
H.F.
_____
not
be
E-85
gasoline.
1
b.
The
designated
rate
of
the
tax
credit
is
nine
cents.
2
Sec.
56.
Section
422.11Y,
subsection
9,
Code
2022,
is
3
amended
to
read
as
follows:
4
9.
This
section
is
repealed
on
January
1,
2025
2026
.
5
Sec.
57.
Section
422.33,
subsection
11D,
paragraph
c,
Code
6
2022,
is
amended
to
read
as
follows:
7
c.
This
subsection
is
repealed
on
January
1,
2025
2026
.
8
Sec.
58.
2011
Iowa
Acts,
chapter
113,
section
37,
as
amended
9
by
2016
Iowa
Acts,
chapter
1106,
section
3,
is
amended
to
read
10
as
follows:
11
SEC.
37.
TAX
CREDIT
AVAILABILITY.
For
a
retail
dealer
who
12
may
claim
an
E-15
plus
gasoline
promotion
tax
credit
under
13
section
422.11Y
or
422.33,
subsection
11D
,
as
enacted
in
this
14
Act
and
amended
in
subsequent
Acts,
in
calendar
year
2024
15
2025
,
and
whose
tax
year
ends
prior
to
December
31,
2024
2025
,
16
the
retail
dealer
may
continue
to
claim
the
tax
credit
in
the
17
retail
dealer’s
following
tax
year.
In
that
case,
the
tax
18
credit
shall
be
calculated
in
the
same
manner
as
provided
in
19
section
422.11Y
or
422.33,
subsection
11D
,
as
enacted
in
this
20
Act
and
amended
in
subsequent
Acts,
for
the
remaining
period
21
beginning
on
the
first
day
of
the
retail
dealer’s
new
tax
year
22
until
December
31,
2024
2025
.
For
that
remaining
period,
the
23
tax
credit
shall
be
calculated
in
the
same
manner
as
a
retail
24
dealer
whose
tax
year
began
on
the
previous
January
1
and
who
25
is
calculating
the
tax
credit
on
December
31,
2024
2025
.
26
Sec.
59.
EFFECTIVE
DATE.
This
part
of
this
division
of
this
27
Act
takes
effect
January
1,
2023.
28
PART
D
29
ADMINISTRATION
30
Sec.
60.
ADMINISTRATIVE
RULES.
The
department
of
revenue
31
may
adopt
rules
under
chapter
17A
prior
to
the
effective
date
32
of
parts
B
and
C
of
this
division
of
this
Act,
which
rules
shall
33
take
effect
January
1,
2023.
34
DIVISION
V
35
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55
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_____
H.F.
_____
RENEWABLE
FUEL
STANDARDS
1
AND
CLASSIFICATIONS
——
PROMOTIONAL
INITIATIVES
APPLIED
2
TO
EXCISE
TAX
ON
ETHANOL
BLENDED
GASOLINE
AND
BIODIESEL
BLENDED
3
FUEL
4
PART
A
5
REPORTING
REQUIREMENTS
6
Sec.
61.
Section
452A.2,
Code
2022,
is
amended
by
adding
the
7
following
new
subsection:
8
NEW
SUBSECTION
.
37A.
“Renewable
fuel”
means
the
same
as
9
defined
in
section
214A.1.
10
Sec.
62.
NEW
SECTION
.
452A.2A
Standards
and
classifications
11
of
fuel.
12
For
purposes
of
this
chapter,
motor
fuel,
including
13
a
renewable
fuel,
must
meet
the
same
standards
and
14
classifications
as
provided
in
section
214A.2.
15
Sec.
63.
Section
452A.31,
subsection
2,
paragraph
a,
16
subparagraph
(1),
subparagraph
division
(c),
Code
2022,
is
17
amended
to
read
as
follows:
18
(c)
The
total
E-15
plus
gasoline
gallonage
which
is
the
19
total
number
of
gallons
of
ethanol
blended
gasoline
classified
20
as
E-15
or
higher,
including
E-85
gasoline.
21
Sec.
64.
Section
452A.31,
subsection
2,
paragraph
a,
22
subparagraph
(1),
Code
2022,
is
amended
by
adding
the
following
23
new
subparagraph
division:
24
NEW
SUBPARAGRAPH
DIVISION
.
(d)
The
total
E-15
gasoline
25
gallonage
which
is
the
total
number
of
gallons
of
ethanol
26
blended
gasoline
classified
as
E-15.
27
Sec.
65.
Section
452A.31,
subsection
3,
paragraph
a,
Code
28
2022,
is
amended
to
read
as
follows:
29
a.
A
retail
dealer’s
total
diesel
fuel
gallonage
is
the
30
total
number
of
gallons
of
diesel
fuel
which
the
retail
dealer
31
sells
and
dispenses
from
all
motor
fuel
pumps
operated
by
32
the
retail
dealer
in
this
state
during
a
twelve-month
period
33
beginning
January
1
and
ending
December
31.
The
retail
34
dealer’s
total
diesel
fuel
gallonage
is
divided
into
the
35
-28-
LSB
5021XL
(24)
89
da/ns
28/
55
S.F.
_____
H.F.
_____
following
classifications:
1
(1)
The
total
biodiesel
blended
fuel
gallonage
which
is
2
the
retail
dealer’s
total
number
of
gallons
of
biodiesel
3
blended
fuel
.
and
which
includes
all
of
the
following
4
subclassifications:
5
(a)
The
total
B-5
plus
gallonage
which
is
the
total
number
6
of
gallons
of
biodiesel
blended
fuel
classified
as
B-5
or
7
higher
up
to
but
not
including
B-11.
8
(2)
(b)
The
total
B-11
plus
gallonage
which
is
the
total
9
number
of
gallons
of
biodiesel
blended
fuel
classified
as
B-11
10
or
higher
up
to
but
not
including
B-20
.
11
(c)
The
total
B-20
plus
gallonage
which
is
the
total
number
12
of
gallons
of
biodiesel
blended
fuel
classified
as
B-20
or
13
higher
up
to
but
not
including
B-30.
14
(d)
The
total
B-30
plus
gallonage
which
is
the
total
number
15
of
gallons
of
biodiesel
blended
fuel
classified
as
B-30
or
16
higher.
17
(3)
(2)
The
total
nonblended
diesel
fuel
gallonage
which
18
is
the
total
number
of
gallons
of
diesel
fuel
which
is
not
19
biodiesel
or
biodiesel
blended
fuel.
20
Sec.
66.
Section
452A.31,
subsection
4,
paragraph
a,
21
subparagraph
(1),
subparagraph
division
(c),
Code
2022,
is
22
amended
to
read
as
follows:
23
(c)
The
aggregate
E-15
plus
gasoline
gallonage
which
is
the
24
aggregate
total
number
of
gallons
of
ethanol
blended
gasoline
25
classified
as
E-15
or
higher,
including
E-85
gasoline.
26
Sec.
67.
Section
452A.31,
subsection
4,
paragraph
a,
27
subparagraph
(1),
Code
2022,
is
amended
by
adding
the
following
28
new
subparagraph
division:
29
NEW
SUBPARAGRAPH
DIVISION
.
(d)
The
aggregate
E-15
gasoline
30
gallonage
which
is
the
aggregate
total
number
of
gallons
of
31
ethanol
blended
gasoline
classified
as
E-15.
32
Sec.
68.
Section
452A.31,
subsection
5,
paragraph
a,
Code
33
2022,
is
amended
to
read
as
follows:
34
a.
The
aggregate
diesel
fuel
gallonage
is
the
total
number
35
-29-
LSB
5021XL
(24)
89
da/ns
29/
55
S.F.
_____
H.F.
_____
of
gallons
of
diesel
fuel
which
all
retail
dealers
sell
and
1
dispense
from
all
motor
fuel
pumps
operated
by
the
retail
2
dealers
in
this
state
during
a
twelve-month
period
beginning
3
January
1
and
ending
December
31.
The
aggregate
diesel
fuel
4
gallonage
is
divided
into
the
following
classifications:
5
(1)
The
aggregate
biodiesel
blended
fuel
gallonage
6
which
is
the
aggregate
total
number
of
gallons
of
biodiesel
7
blended
fuel
.
and
which
includes
all
of
the
following
8
subclassifications:
9
(2)
(a)
The
aggregate
B-11
B-5
plus
gallonage
which
is
the
10
aggregate
total
number
of
gallons
of
biodiesel
blended
fuel
11
classified
as
B-5
or
higher
up
to
but
not
including
B-11
or
12
higher
.
13
(b)
The
aggregate
B-11
plus
gallonage
which
is
the
aggregate
14
total
number
of
gallons
of
biodiesel
blended
fuel
classified
as
15
B-11
or
higher
up
to
but
not
including
B-20.
16
(c)
The
aggregate
B-20
plus
gallonage
which
is
the
aggregate
17
total
number
of
gallons
of
biodiesel
blended
fuel
classified
as
18
B-20
or
higher
up
to
but
not
including
B-30.
19
(d)
The
aggregate
B-30
plus
gallonage
which
is
the
aggregate
20
total
number
of
gallons
of
biodiesel
blended
fuel
classified
21
as
B-30
or
higher.
22
(3)
(2)
The
aggregate
nonblended
diesel
fuel
gallonage
23
which
is
the
aggregate
total
number
of
gallons
of
diesel
fuel
24
which
is
not
biodiesel
or
biodiesel
blended
fuel.
25
Sec.
69.
Section
452A.33,
subsection
1,
paragraph
a,
26
unnumbered
paragraph
1,
Code
2022,
is
amended
to
read
as
27
follows:
28
Each
retail
dealer
shall
report
its
total
motor
fuel
29
gasoline
and
diesel
fuel
gallonage
for
a
determination
period
30
as
follows:
31
Sec.
70.
Section
452A.33,
subsection
1,
paragraph
b,
32
subparagraphs
(1)
and
(2),
Code
2022,
are
amended
to
read
as
33
follows:
34
(1)
The
information
submitted
on
a
company-wide
basis
shall
35
-30-
LSB
5021XL
(24)
89
da/ns
30/
55
S.F.
_____
H.F.
_____
include
the
total
motor
gasoline
and
diesel
fuel
gallonage,
1
including
for
each
classification
and
subclassification,
sold
2
and
dispensed
by
the
retail
dealer
as
provided
in
paragraph
“a”
3
for
all
retail
motor
fuel
sites
from
which
the
retail
dealer
4
sells
and
dispenses
motor
fuel
gasoline
or
diesel
fuel
.
5
(2)
The
information
submitted
on
a
site-by-site
basis
shall
6
include
the
total
motor
gasoline
and
diesel
fuel
gallonage,
7
including
for
each
classification
and
subclassification,
sold
8
and
dispensed
by
the
retail
dealer
as
provided
in
paragraph
9
“a”
separately
for
each
retail
motor
fuel
site
from
which
the
10
retail
dealer
sells
and
dispenses
motor
gasoline
or
diesel
11
fuel.
12
Sec.
71.
Section
452A.33,
subsection
1,
paragraph
c,
Code
13
2022,
is
amended
to
read
as
follows:
14
c.
The
retail
dealer
shall
prepare
and
submit
file
the
15
report
with
the
department
in
a
manner
and
according
to
16
procedures
required
by
the
department
in
compliance
with
17
section
452A.61
.
However,
the
department
may
require
that
the
18
retail
dealer
file
the
report
with
the
department
by
electronic
19
transmission.
The
department
may
require
that
a
retail
20
dealers
report
to
dealer
file
the
report
with
the
department
21
on
an
annual,
quarterly,
or
monthly
basis.
The
department,
22
upon
application
by
a
retail
dealer,
may
grant
a
reasonable
23
extension
of
time
to
file
the
report.
A
retail
dealer
who
24
fails
to
file
the
report
as
required
in
this
section
or
who
25
fails
to
maintain
records
required
to
file
the
report
shall
be
26
subject
to
a
civil
penalty
of
not
more
than
one
hundred
dollars
27
per
occurrence
which
shall
be
deposited
in
the
general
fund
of
28
the
state.
29
Sec.
72.
Section
452A.33,
subsection
2,
paragraph
c,
Code
30
2022,
is
amended
to
read
as
follows:
31
c.
The
report
shall
not
provide
information
regarding
motor
32
fuel
or
gasoline,
diesel
fuel,
or
a
biofuel
which
is
sold
and
33
dispensed
by
an
individual
retail
dealer
or
at
a
particular
34
retail
motor
fuel
site.
The
report
shall
not
include
a
trade
35
-31-
LSB
5021XL
(24)
89
da/ns
31/
55
S.F.
_____
H.F.
_____
secret
protected
as
a
confidential
record
pursuant
to
section
1
22.7
.
2
Sec.
73.
EMERGENCY
RULES.
The
department
of
revenue
may
3
adopt
emergency
rules
under
section
17A.4,
subsection
3,
and
4
section
17A.5,
subsection
2,
paragraph
“b”,
to
implement
the
5
provisions
of
sections
452A.31
and
452A.33
as
amended
by
6
this
part
of
this
division
of
this
Act.
Any
rules
adopted
7
in
accordance
with
this
section
shall
also
be
published
as
a
8
notice
of
intended
action
as
provided
in
section
17A.4.
9
Sec.
74.
EFFECTIVE
DATE.
This
part
of
this
division
of
this
10
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
11
enactment.
12
Sec.
75.
RETROACTIVE
APPLICABILITY.
This
part
of
this
13
division
of
this
Act
applies
retroactively
to
January
1,
2022.
14
PART
B
15
EXCISE
TAX
IMPOSED
ON
GASOLINE
AND
DIESEL
FUEL
16
Sec.
76.
Section
452A.3,
subsection
1,
paragraph
b,
17
unnumbered
paragraph
1,
Code
2022,
is
amended
to
read
as
18
follows:
19
On
and
after
July
1,
2026
2030
,
an
excise
tax
of
thirty
20
cents
is
imposed
on
each
gallon
of
ethanol
blended
gasoline
21
classified
as
E-15
or
higher.
Before
July
1,
2026
2030
,
the
22
rate
of
the
excise
tax
on
ethanol
blended
gasoline
classified
23
as
E-15
or
higher
shall
be
based
on
the
number
of
gallons
of
24
ethanol
blended
gasoline
classified
as
E-15
or
higher
that
are
25
distributed
in
this
state
as
expressed
as
a
percentage
of
the
26
number
of
gallons
of
motor
fuel
distributed
in
this
state,
27
which
is
referred
to
as
the
distribution
percentage.
For
28
purposes
of
this
paragraph
“b”
,
only
ethanol
blended
gasoline
29
and
nonblended
gasoline,
not
including
aviation
gasoline,
shall
30
be
used
in
determining
the
percentage
basis
for
the
excise
31
tax.
The
department
shall
determine
the
percentage
basis
32
for
each
determination
period
beginning
January
1
and
ending
33
December
31
based
on
data
information
from
the
reports
filed
34
submitted
to
the
department
for
filing
pursuant
to
section
35
-32-
LSB
5021XL
(24)
89
da/ns
32/
55
S.F.
_____
H.F.
_____
452A.33
.
The
rate
for
the
excise
tax
shall
apply
for
the
1
period
beginning
July
1
and
ending
June
30
following
the
end
of
2
the
determination
period.
Before
July
1,
2026
2030
,
the
rate
3
of
the
excise
tax
on
each
gallon
of
ethanol
blended
gasoline
4
classified
as
E-15
or
higher
shall
be
as
follows:
5
Sec.
77.
Section
452A.3,
subsection
3,
paragraph
a,
6
subparagraph
(1),
Code
2022,
is
amended
to
read
as
follows:
7
(1)
Except
as
otherwise
provided
in
this
section
and
in
8
this
subchapter
,
the
rate
of
the
excise
tax
on
each
gallon
of
9
special
fuel
for
diesel
engines
of
motor
vehicles
used
for
any
10
purpose
for
the
privilege
of
operating
motor
vehicles
in
this
11
state,
other
than
biodiesel
blended
fuel
classified
as
B-11
12
B-20
or
higher,
is
thirty-two
and
five-tenths
cents
per
gallon.
13
Sec.
78.
Section
452A.3,
subsection
3,
paragraph
a,
14
subparagraph
(2),
unnumbered
paragraph
1,
Code
2022,
is
amended
15
to
read
as
follows:
16
Except
as
otherwise
provided
in
this
section
and
in
this
17
subchapter
,
this
subparagraph
shall
apply
to
the
excise
tax
18
imposed
on
each
gallon
of
biodiesel
blended
fuel
classified
19
as
B-11
B-20
or
higher
used
for
any
purpose
for
the
privilege
20
of
operating
motor
vehicles
in
this
state.
On
and
after
July
21
1,
2026
2030
,
the
rate
of
the
excise
tax
on
each
gallon
of
22
biodiesel
blended
fuel
classified
as
B-11
B-20
or
higher
is
23
thirty-two
and
five-tenths
cents.
Before
July
1,
2026
2030
,
24
the
rate
of
the
excise
tax
on
each
gallon
of
biodiesel
blended
25
fuel
classified
as
B-20
or
higher
shall
be
based
on
the
number
26
of
gallons
of
biodiesel
blended
fuel
classified
as
B-11
B-20
27
or
higher
that
are
distributed
in
this
state
as
expressed
as
a
28
percentage
of
the
number
of
gallons
of
special
fuel
for
diesel
29
engines
of
motor
vehicles
distributed
in
this
state,
which
is
30
referred
to
as
the
distribution
percentage.
The
department
31
shall
determine
the
percentage
basis
for
each
determination
32
period
beginning
January
1
and
ending
December
31
based
on
data
33
information
from
the
reports
filed
submitted
to
the
department
34
for
filing
pursuant
to
section
452A.33
.
The
rate
of
the
excise
35
-33-
LSB
5021XL
(24)
89
da/ns
33/
55
S.F.
_____
H.F.
_____
tax
shall
apply
for
the
period
beginning
July
1
and
ending
June
1
30
following
the
end
of
the
determination
period.
Before
July
2
1,
2026
2030
,
the
rate
of
the
excise
tax
on
each
gallon
of
3
biodiesel
blended
fuel
classified
as
B-11
B-20
or
higher
shall
4
be
as
follows:
5
Sec.
79.
EFFECTIVE
DATE.
This
part
of
this
division
of
this
6
Act
takes
effect
July
1,
2024.
7
PART
C
8
DEDUCTION
OF
EXCISE
TAX
IMPOSED
ON
BIOFUEL
9
USED
IN
BLENDING
WITH
GASOLINE
AND
DIESEL
FUEL
10
Sec.
80.
Section
452A.8,
subsection
2,
paragraph
a,
Code
11
2022,
is
amended
by
adding
the
following
new
subparagraph:
12
NEW
SUBPARAGRAPH
.
(3)
(a)
The
gallonage
of
gasoline
or
13
diesel
fuel
withdrawn
from
a
terminal
by
a
licensee
to
be
14
blended
with
a
biofuel
after
it
is
withdrawn
from
the
terminal
15
to
the
extent
the
tax
rate
on
the
gasoline
or
diesel
fuel
16
exceeds
the
tax
rate
which
would
be
due
on
the
ethanol
blended
17
gasoline
or
biodiesel
blended
fuel
pursuant
to
section
452A.3.
18
(b)
This
subparagraph
is
repealed
July
1,
2030.
19
DIVISION
VI
20
RENEWABLE
FUEL
STANDARDS
AND
CLASSIFICATIONS
——
PROMOTIONAL
21
INITIATIVES
APPLIED
TO
SALES
AND
USE
TAX
——
REFUND
PAID
TO
22
BIODIESEL
PRODUCERS
23
PART
A
24
PRINCIPAL
PROVISIONS
25
Sec.
81.
Section
423.4,
subsection
9,
Code
2022,
is
amended
26
to
read
as
follows:
27
9.
A
person
who
qualifies
as
a
biodiesel
producer
as
28
provided
in
this
subsection
may
apply
to
the
director
for
a
29
refund
of
the
amount
of
the
sales
or
use
tax
imposed
and
paid
30
upon
purchases
made
by
the
person.
31
a.
The
person
must
be
engaged
in
the
manufacturing
32
of
biodiesel
who
has
registered
with
the
United
States
33
environmental
protection
agency
as
a
manufacturer
according
to
34
the
requirements
in
40
C.F.R.
§79.4
.
The
biodiesel
must
be
for
35
-34-
LSB
5021XL
(24)
89
da/ns
34/
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_____
use
in
biodiesel
blended
fuel
in
conformance
with
the
standards
1
and
classifications
in
section
214A.2
.
The
person
must
comply
2
with
the
requirements
of
this
subsection
and
rules
adopted
by
3
the
department
pursuant
to
this
subsection
.
4
b.
The
amount
of
the
refund
shall
be
calculated
by
5
multiplying
a
designated
rate
by
the
total
number
of
gallons
6
of
biodiesel
produced
by
the
biodiesel
producer
in
this
state
7
during
each
quarter
of
a
calendar
year.
The
designated
rate
8
shall
be
two
four
cents.
9
c.
A
biodiesel
producer
shall
not
be
eligible
to
receive
10
a
refund
under
this
subsection
on
more
than
twenty-five
11
million
gallons
of
biodiesel
produced
each
calendar
year
by
12
the
biodiesel
producer
at
each
facility
where
the
biodiesel
13
producer
manufactures
biodiesel.
14
d.
A
person
shall
obtain
a
refund
by
completing
forms
15
furnished
by
the
department
and
filed
by
the
person
on
a
16
quarterly
basis
as
required
by
the
department.
The
department
17
shall
refund
the
amount
claimed
by
the
person
after
subtracting
18
any
amount
owing
from
the
sales
or
use
taxes
imposed
and
paid
19
upon
purchases
made
by
the
person.
20
e.
This
subsection
is
repealed
on
January
1,
2025
2028
.
21
Sec.
82.
EFFECTIVE
DATE.
This
part
of
this
division
of
this
22
Act
takes
effect
January
1,
2023.
23
PART
B
24
IMPLEMENTATION
25
Sec.
83.
ADMINISTRATIVE
RULES.
The
department
of
revenue
26
may
adopt
rules
under
chapter
17A
prior
to
the
effective
date
27
of
part
A
of
this
division
of
this
Act,
which
rules
shall
take
28
effect
January
1,
2023.
29
DIVISION
VII
30
PROMOTIONAL
INITIATIVES
——
RENEWABLE
FUEL
INFRASTRUCTURE
31
Sec.
84.
Section
159A.11,
subsection
6,
Code
2022,
is
32
amended
by
striking
the
subsection
and
inserting
in
lieu
33
thereof
the
following:
34
6.
“Motor
fuel
storage
and
dispensing
infrastructure”
or
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“infrastructure”
means
the
same
as
defined
in
section
214.1.
1
Sec.
85.
Section
159A.11,
Code
2022,
is
amended
by
adding
2
the
following
new
subsection:
3
NEW
SUBSECTION
.
6A.
“Motor
fuel
storage
tank”
means
the
4
same
as
defined
in
section
214.1.
5
Sec.
86.
Section
159A.11,
subsection
10,
Code
2022,
is
6
amended
by
striking
the
subsection.
7
Sec.
87.
Section
159A.12,
Code
2022,
is
amended
to
read
as
8
follows:
9
159A.12
Classification
Standards
and
classifications
of
motor
10
fuel
and
renewable
fuel.
11
For
purposes
of
this
subchapter
,
ethanol
blended
fuel
and
12
biodiesel
motor
fuel
shall
be
classified
in
the
same
manner
,
13
including
a
renewable
fuel,
must
meet
the
same
standards
and
14
classifications
as
provided
in
section
214A.2
.
15
Sec.
88.
Section
159A.13,
subsection
6,
Code
2022,
is
16
amended
by
striking
the
subsection.
17
Sec.
89.
Section
159A.14,
subsections
1
and
2,
Code
2022,
18
are
amended
to
read
as
follows:
19
1.
The
purpose
of
the
program
is
to
improve
retail
20
motor
fuel
sites
by
installing,
replacing,
or
converting
21
infrastructure
to
be
used
to
store,
blend,
or
dispense
22
renewable
fuel.
The
infrastructure
shall
be
ethanol
23
infrastructure
or
biodiesel
infrastructure.
24
a.
(1)
Ethanol
infrastructure
shall
be
designed
and
used
25
exclusively
have
the
capacity
to
do
any
of
the
following:
26
(a)
Store
and
dispense
E-15
gasoline.
At
least
for
the
27
period
beginning
on
September
16
and
ending
on
May
31
of
each
28
year,
the
ethanol
infrastructure
must
be
used
to
store
and
29
dispense
E-15
gasoline
as
a
registered
fuel
recognized
by
the
30
United
States
environmental
protection
agency.
31
(b)
Store
and
dispense
E-85
gasoline.
32
(c)
(b)
Store,
blend,
and
dispense
motor
fuel
ethanol
or
33
ethanol
blended
gasoline
from
a
motor
fuel
blender
pump.
The
34
ethanol
infrastructure
must
be
used
for
the
storage
of
ethanol
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or
ethanol
blended
gasoline,
or
for
blending
ethanol
with
1
gasoline.
The
ethanol
infrastructure
must
at
least
include
2
a
motor
fuel
blender
pump
which
that
dispenses
different
3
classifications
of
ethanol
blended
gasoline
and
allows
E-15
4
gasoline
and
E-85
gasoline
to
be
dispensed
at
all
times
that
5
the
blender
pump
is
operating.
6
(2)
Biodiesel
infrastructure
shall
be
designed
and
used
7
exclusively
have
the
capacity
to
do
any
of
the
following:
8
(a)
Store
and
dispense
biodiesel
or
biodiesel
blended
fuel
9
classified
as
B-20
or
higher
.
10
(b)
Blend
or
Store,
blend,
and
dispense
biodiesel
fuel
11
from
a
motor
fuel
blender
pump.
The
biodiesel
infrastructure
12
must
at
least
include
a
motor
fuel
blender
pump
that
dispenses
13
different
classifications
of
biodiesel
blended
fuel
and
allows
14
biodiesel
blended
fuel
classified
as
B-5
or
higher
to
be
15
dispensed
at
all
times
that
the
blender
pump
is
operating.
16
b.
The
infrastructure
must
be
part
of
the
premises
of
17
a
retail
motor
fuel
site
operated
by
a
retail
dealer.
The
18
infrastructure
shall
not
include
a
tank
vehicle.
19
2.
a.
A
person
may
apply
to
the
department
to
receive
20
financial
incentives
on
a
cost-share
basis
according
to
21
procedures
required
by
the
department
.
The
department
shall
22
accept
a
timely
received
application
to
improve
a
retail
23
motor
fuel
site
as
provided
in
this
section
and
forward
the
24
applications
that
application
to
the
underground
storage
tank
25
fund
infrastructure
board
,
as
required
by
that
the
board
,
for
26
evaluation
and
recommendation.
The
underground
storage
tank
27
fund
board
may
rank
the
applications
with
comments
and
shall
28
forward
them
to
the
infrastructure
board
for
its
approval
or
29
disapproval.
30
b.
The
application
shall
allow
the
department
to
determine
31
whether
the
person
is
a
retail
dealer
assigned
special
status.
32
The
department
shall
assign
the
person
special
status
if
33
the
person
does
not
comply
with
the
E-15
access
standard
34
as
provided
in
section
214A.32
only
because
the
person
is
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ineligible
to
be
issued
an
E-15
incompatible
infrastructure
1
class
2
waiver
order
for
that
retail
motor
fuel
site
as
2
provided
in
section
214A.35,
subsection
6.
3
c.
The
infrastructure
board
may
establish
a
system
to
4
rank
applications
for
approval.
In
ranking
applications,
the
5
infrastructure
board
may
provide
special
priority
to
any
of
the
6
following:
7
(1)
A
retail
motor
fuel
site
that
has
been
constructed
and
8
is
operating.
9
(2)
(a)
A
retail
motor
fuel
site
owned
or
operated
by
a
10
person
who
the
department
assigns
special
status
as
provided
11
in
paragraph
“b”
.
12
(b)
(i)
This
subparagraph
shall
be
implemented
on
January
13
1,
2023.
14
(ii)
This
subparagraph
division
is
repealed
January
2,
15
2023.
16
d.
The
department
shall
award
financial
incentives
on
a
17
cost-share
basis
to
an
eligible
person
whose
application
was
18
approved
by
the
infrastructure
board.
19
Sec.
90.
Section
159A.14,
subsection
3,
unnumbered
20
paragraph
1,
Code
2022,
is
amended
to
read
as
follows:
21
The
infrastructure
board
shall
approve
cost-share
22
agreements
executed
by
the
department
and
persons
that
the
23
infrastructure
board
determines
are
eligible
as
provided
in
24
this
section
,
according
to
terms
and
conditions
required
by
the
25
infrastructure
board.
The
infrastructure
board
shall
determine
26
the
amount
of
the
financial
incentives
to
be
awarded
to
a
27
person
participating
in
the
program.
The
determination
may
be
28
based
on
applications
prioritized
for
approval
as
described
in
29
subsection
2.
In
order
to
be
eligible
to
participate
in
the
30
program
,
all
of
the
following
must
apply:
31
Sec.
91.
Section
159A.14,
subsection
5,
Code
2022,
is
32
amended
to
read
as
follows:
33
5.
An
award
of
financial
incentives
to
a
participating
34
person
shall
be
on
a
cost-share
basis
in
the
form
of
a
grant.
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To
participate
in
the
program,
an
eligible
person
must
execute
1
a
cost-share
agreement
with
the
department
as
approved
by
2
the
infrastructure
board
in
which
the
person
contributes
a
3
percentage
of
the
total
costs
related
to
improving
the
retail
4
motor
fuel
site.
5
a.
A
cost-share
agreement
shall
be
for
a
three-year
period
6
or
a
five-year
period.
7
b.
(1)
For
the
term
of
an
agreement
to
improve
a
retail
8
motor
fuel
site
by
installing,
replacing,
or
converting
ethanol
9
infrastructure,
the
participating
person
must
use
the
ethanol
10
infrastructure
to
store
and
dispense,
or
store,
blend,
and
11
dispense,
ethanol
blended
gasoline
classified
as
E-15
or
12
higher.
13
(2)
For
the
term
of
an
agreement
to
improve
a
motor
14
fuel
site
by
installing,
replacing,
or
converting
biodiesel
15
infrastructure,
the
participating
person
must
use
the
biodiesel
16
infrastructure
to
store
and
dispense,
or
store,
blend,
and
17
dispense,
biodiesel
blended
fuel
classified
as
B-5
or
higher.
18
However,
at
least
for
the
period
beginning
April
1
and
ending
19
October
31
of
each
year,
the
participating
person
must
use
20
the
biodiesel
infrastructure
to
store
and
dispense,
or
store,
21
blend,
and
dispense,
biodiesel
blended
fuel
classified
as
B-11
22
or
higher.
23
c.
A
cost-share
agreement
shall
include
provisions
for
24
standard
financial
incentives
or
standard
financial
incentives
25
and
supplemental
financial
incentives
as
provided
in
this
26
subsection
.
The
infrastructure
board
may
approve
multiple
27
improvements
to
the
same
retail
motor
fuel
site
for
the
full
28
amount
available
for
both
ethanol
infrastructure
and
biodiesel
29
infrastructure
so
long
as
the
improvements
for
ethanol
30
infrastructure
and
for
biodiesel
infrastructure
are
made
under
31
separate
cost-share
agreements.
32
a.
d.
(1)
Except
as
provided
in
paragraph
“b”
“e”
,
33
a
participating
person
may
be
awarded
standard
financial
34
incentives
to
make
improvements
to
a
retail
motor
fuel
site.
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The
standard
financial
incentives
awarded
to
a
participating
1
person
shall
not
exceed
the
following:
2
(a)
For
a
three-year
cost-share
agreement,
fifty
percent
of
3
the
actual
cost
of
making
the
improvement
or
thirty
thousand
4
dollars,
whichever
is
less.
5
(b)
For
a
five-year
cost-share
agreement,
seventy
percent
6
of
the
actual
cost
of
making
the
improvement
or
fifty
thousand
7
dollars,
whichever
is
less.
8
(2)
(a)
The
infrastructure
board
may
approve
multiple
9
awards
of
standard
financial
incentives
to
make
improvements
to
10
a
the
retail
motor
fuel
site
so
long
as
the
total
amount
of
the
11
awards
for
ethanol
infrastructure
or
biodiesel
infrastructure
12
does
not
exceed
the
limitations
provided
in
subparagraph
(1).
13
(b)
If
the
department
determines
that
a
participating
14
person
is
assigned
special
status
because
the
participating
15
person
is
ineligible
to
be
issued
an
E-15
incompatible
16
infrastructure
class
2
waiver
order
for
the
retail
motor
fuel
17
site
as
provided
in
subsection
2,
the
infrastructure
board
may
18
approve
one
or
multiple
awards
of
standard
financial
incentives
19
to
make
improvements
to
that
retail
motor
fuel
site
subject
to
20
all
of
the
following:
21
(i)
The
total
amount
of
awards
shall
not
be
reduced
by
22
the
amount
of
any
standard
financial
incentives
awarded
to
23
improve
the
retail
motor
fuel
site
before
the
department’s
24
determination,
notwithstanding
subparagraph
division
(a).
25
(ii)
The
total
amount
of
awards
for
ethanol
infrastructure
26
or
biodiesel
infrastructure
shall
not
exceed
the
limitations
27
provided
in
subparagraph
(1).
28
b.
e.
In
addition
to
any
standard
financial
incentives
29
awarded
to
a
participating
person
under
paragraph
“a”
“d”
,
the
30
participating
person
may
be
awarded
supplemental
financial
31
incentives
to
make
improvements
to
a
retail
motor
fuel
site
to
32
do
any
of
the
following:
33
(1)
Upgrade
or
replace
a
dispenser
which
is
part
of
34
gasoline
storage
and
dispensing
infrastructure
used
to
store
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and
dispense
E-85
gasoline
as
provided
in
section
455G.31
.
1
The
participating
person
is
only
eligible
to
be
awarded
the
2
supplemental
financial
incentives
if
the
person
installed
the
3
dispenser
not
later
than
sixty
days
after
July
27,
2011.
The
4
supplemental
financial
incentives
awarded
to
the
participating
5
person
shall
not
exceed
seventy-five
percent
of
the
actual
cost
6
of
making
the
improvement
or
thirty
thousand
dollars,
whichever
7
is
less.
8
(2)
To
improve
additional
retail
motor
fuel
sites
owned
or
9
operated
by
a
participating
person
within
a
twelve-month
period
10
as
provided
in
the
cost-share
agreement.
The
supplemental
11
financial
incentives
shall
be
used
for
the
installation
12
of
an
additional
motor
fuel
storage
tank
and
associated
13
infrastructure
at
each
such
retail
motor
fuel
site.
A
14
participating
person
may
be
awarded
supplemental
financial
15
incentives
under
this
subparagraph
paragraph
and
standard
16
financial
incentives
under
paragraph
“a”
“d”
to
improve
the
17
same
retail
motor
fuel
site.
The
supplemental
financial
18
incentives
awarded
to
the
participating
person
shall
not
19
exceed
twenty-four
thousand
dollars.
The
participating
person
20
shall
be
awarded
the
supplemental
financial
incentives
on
a
21
cumulative
basis
according
to
the
schedule
provided
in
this
22
subparagraph
paragraph
,
which
shall
not
exceed
the
following:
23
(a)
(1)
For
the
second
retail
motor
fuel
site,
six
thousand
24
dollars.
25
(b)
(2)
For
the
third
retail
motor
fuel
site,
six
thousand
26
dollars.
27
(c)
(3)
For
the
fourth
retail
motor
fuel
site,
six
thousand
28
dollars.
29
(d)
(4)
For
the
fifth
retail
motor
fuel
site,
six
thousand
30
dollars.
31
Sec.
92.
Section
159A.15,
subsection
1,
Code
2022,
is
32
amended
to
read
as
follows:
33
1.
A
person
may
apply
to
the
department
to
receive
financial
34
incentives
on
a
cost-share
basis.
The
department
shall
forward
35
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the
applications
to
the
underground
storage
tank
fund
board
as
1
required
by
that
board
for
evaluation
and
recommendation.
The
2
underground
storage
tank
fund
board
may
rank
the
applications
3
with
comments
and
shall
forward
them
to
the
infrastructure
4
board
for
approval
or
disapproval.
The
department
shall
award
5
financial
incentives
on
a
cost-share
basis
to
an
eligible
6
person
whose
application
was
approved
by
the
infrastructure
7
board.
8
Sec.
93.
Section
159A.16,
subsection
3,
Code
2022,
is
9
amended
to
read
as
follows:
10
3.
Moneys
in
the
renewable
fuel
infrastructure
fund
are
11
appropriated
to
the
department
exclusively
to
support
and
12
market
the
renewable
fuel
infrastructure
programs
as
provided
13
in
sections
159A.14
and
159A.15
,
and
as
allocated
in
financial
14
incentives
by
the
renewable
fuel
infrastructure
board
created
15
in
section
159A.13
.
Up
to
fifty
16
a.
For
each
fiscal
year,
not
more
than
one
million
17
two
hundred
fifty
thousand
dollars
shall
be
allocated
to
18
support
the
renewable
fuel
infrastructure
program
for
retail
19
motor
fuel
sites
as
provided
in
section
159A.14
to
finance
20
the
installation,
replacement,
or
conversion
of
biodiesel
21
infrastructure
as
provided
in
that
section.
22
b.
For
each
fiscal
year,
not
more
than
one
hundred
thousand
23
dollars
shall
be
allocated
each
fiscal
year
to
the
department
24
to
support
the
administration
of
the
programs.
The
25
c.
For
each
fiscal
year,
the
department
may
use
up
to
26
one
and
one-half
percent
of
the
program
funds
to
market
the
27
programs.
Otherwise
the
moneys
shall
not
be
transferred,
used,
28
obligated,
appropriated,
or
otherwise
encumbered
except
to
29
allocate
as
financial
incentives
under
the
programs.
30
EXPLANATION
31
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
32
the
explanation’s
substance
by
the
members
of
the
general
assembly.
33
OVERVIEW.
This
bill
provides
a
number
of
mechanisms
to
34
promote
the
use
of
renewable
fuels
used
to
power
internal
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combustion
engines
that
operate
motor
vehicles
(e.g.,
both
1
conventional
and
flex-fuel).
The
bill
provides
for
both
2
compliance
requirements
regulating
the
storage
and
dispensing
3
of
renewable
fuel,
and
promotional
measures
(specifically
4
financial
and
tax
incentives)
to
increase
the
availability
and
5
opportunity
for
consumers
to
select
a
renewable
fuel.
6
OVERVIEW
——
TYPES
AND
CLASSIFICATIONS
OF
RENEWABLE
FUELS.
7
The
term
“motor
fuel”
is
sometimes
used
to
describe
both
8
gasoline
and
diesel
fuel
(Code
chapter
214A)
but
is
also
9
used
to
describe
only
gasoline,
while
the
term
“special
10
fuel”
is
used
to
describe
diesel
fuel
(Code
chapter
452A).
11
The
term
“renewable
fuel”
is
used
to
describe
gasoline
or
12
diesel
fuel
when
blended
with
a
percentage
of
its
biofuel
13
component
(biofuel).
For
gasoline,
the
biofuel,
referred
to
14
as
ethanol,
is
denatured
grain
(corn)
alcohol.
For
diesel
15
fuel,
the
biofuel,
referred
to
as
biodiesel,
is
derived
from
16
processed
animal
fat
or
plant
(soybean)
oil.
Renewable
fuel
17
is
based
on
the
percentage
of
biofuel
present
in
a
volume
18
(gallon)
of
gasoline
or
diesel
fuel
(Code
section
214A.2).
19
The
biofuel’s
percentage
is
designated
by
its
classification.
20
Ethanol
is
abbreviated
as
“E”
and
biodiesel
is
abbreviated
as
21
“B”.
The
term
“xx”
is
a
variable
which
represents
the
biofuel
22
percentage
present
by
volume.
Typically,
a
statute
establishes
23
a
classification
threshold
meaning
that
a
renewable
fuel
24
must
have
a
minimum
biofuel
percentage.
For
ethanol
blended
25
gasoline,
the
most
widely
recognized
classification
thresholds
26
are
E-10,
E-15,
and
E-85;
and
for
biodiesel
blended
fuel,
the
27
most
widely
recognized
threshold
classifications
are
B-5,
B-11,
28
and
B-20.
For
E-85,
the
biofuel
percentage
ranges
from
70
29
percent
to
85
percent.
30
OVERVIEW
——
STATE
AGENCIES
REGULATING
AND
PROMOTING
31
RENEWABLE
FUELS.
State
agencies
responsible
for
administering
32
and
enforcing
regulations
and
awarding
promotional
incentives
33
include
the
department
of
agriculture
and
land
stewardship
34
(DALS),
the
department
of
natural
resources
(DNR),
the
state
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fire
marshal
(SFM),
the
department
of
revenue
(DOR),
and
the
1
department
of
administrative
services
(DAS)
together
with
2
various
agencies
that
operate
the
state’s
motor
vehicle
fleet.
3
OVERVIEW
——
REGULATION
OF
MOTOR
FUEL
(DALS).
DALS
is
4
responsible
for
setting
standards
for
motor
fuel
(defined
to
5
include
gasoline
and
diesel
fuel),
including
renewable
fuel
and
6
its
biofuel
components.
Generally,
the
regulations
are
based
7
on
voluntary
global
specifications
adopted
and
published
by
a
8
widely
recognized
private
association,
A.S.T.M.
international
9
(Code
section
214A.2).
DALS
regulates
the
advertising
of
motor
10
fuel
to
ensure
that
it
complies
with
applicable
standards
and
11
classifications
(Code
sections
214A.2
and
214A.3).
A
retail
12
dealer
must
notify
a
consumer
at
the
pump
that
the
motor
fuel
13
being
dispensed
is
a
renewable
fuel.
Specifically,
a
sticker
14
must
be
placed
on
the
motor
fuel
dispenser
(dispenser)
used
to
15
discharge
the
renewable
fuel
(Code
section
214A.16).
DALS
also
16
regulates
the
licensure
of
retail
dealers
and
the
inspection
17
of
meters
used
to
measure
the
discharge
of
motor
fuel
pumped
18
from
a
motor
fuel
storage
tank
(storage
tank)
to
a
dispenser
19
at
either
a
fixed
location
such
as
a
service
station
or
a
20
mobile
location
such
as
a
tank
wagon
(Code
chapters
214
and
215
21
regulating
weights
and
measures).
The
term
motor
fuel
pump
22
(pump),
including
a
motor
fuel
blender
pump,
is
often
used
23
colloquially
to
describe
the
meter
which
is
equipment
sealed
24
from
tampering
and
used
to
record
and
display
the
volume
of
25
motor
fuel
dispensed
and
to
calculate
the
purchase
price.
A
26
retail
dealer
is
licensed
by
DALS
to
operate
a
metered
motor
27
fuel
pump
used
to
dispense
motor
fuel
(Code
section
214.2).
28
Generally,
a
person
who
violates
a
regulation
relating
29
to
a
motor
fuel
standard
is
guilty
of
a
serious
misdemeanor
30
punishable
by
confinement
for
no
more
than
one
year
and
a
fine
31
of
at
least
$430
but
not
more
than
$2,560
with
each
day
that
32
a
continuing
violation
occurs
considered
a
separate
offense
33
(Code
section
214A.11(1)).
Alternatively,
DALS
may
proceed
34
against
the
person
by
initiating
an
administrative
(contested
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case)
proceeding
in
which
the
applicable
civil
penalty
ranges
1
from
$100
to
$1,000
per
violation
(Code
section
214A.11(2)).
2
A
retail
dealer
who
violates
standards
for
the
operation
of
a
3
metered
pump
(e.g.,
tampering)
is
subject
to
administrative
4
action,
including
having
a
metered
pump
placed
out
of
service
5
(Code
section
215.4).
6
OVERVIEW
——
REGULATION
OF
MOTOR
FUEL
INFRASTRUCTURE
(DNR
7
AND
SFM).
Generally,
DNR
is
required
to
regulate
underground
8
infrastructure,
including
a
storage
tank
used
to
hold
gasoline
9
or
diesel
fuel,
including
associated
renewable
fuels,
in
a
10
manner
that
prevents
water
pollution
(Code
chapter
455G).
The
11
SFM
regulates
the
storage,
transportation,
handling,
or
use
12
of
flammable
or
combustible
liquids
including
an
aboveground
13
storage
tank
holding
gasoline
or
diesel
fuel
and
associated
14
renewable
fuels
(Code
chapter
101).
15
OVERVIEW
——
STATE
VEHICLE
USE
OF
RENEWABLE
FUELS
(DAS
16
AND
VARIOUS
STATE
ENTITIES).
DAS
and
other
state
entities
17
maintaining
the
state
motor
vehicle
fleet
must
operate
18
those
motor
vehicles
using
a
renewable
fuel
which
must
be
19
either
ethanol
blended
gasoline
or
biodiesel
blended
fuel,
20
if
commercially
available.
State
agencies
subject
to
the
21
requirement
include
DAS
(Code
chapter
8A),
the
commission
for
22
the
blind
(Code
chapter
216B),
the
state
board
of
regents
(Code
23
chapter
262),
the
department
of
transportation
(Code
chapter
24
307),
and
the
department
of
corrections
(Code
chapter
904).
25
OVERVIEW
——
RENEWABLE
FUEL
PROMOTION
——
INCOME
TAX
CREDIT
26
PROGRAMS
(DOR).
DOR
administers
three
renewable
fuel
income
27
tax
credit
programs,
including
the
E-85
gasoline
promotion
28
tax
credit
(Code
sections
422.11O
and
422.33(11B)),
the
E-15
29
plus
gasoline
promotion
tax
credit
(Code
sections
422.11Y
30
and
422.33(11D)),
and
the
biodiesel
blended
fuel
tax
credit
31
(Code
sections
422.11P
and
422.33(11C)).
For
each
tax
32
credit
program,
the
amount
of
the
tax
credit
is
calculated
by
33
multiplying
the
number
of
gallons
of
a
renewable
fuel
that
34
meets
a
threshold
classification
sold
at
the
retail
site
or
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on
a
companywide
basis
and
reported
to
DOR
during
the
prior
1
determination
period
by
a
designated
rate.
For
the
E-85
2
gasoline
promotion
tax
credit,
the
designated
rate
is
16
cents.
3
For
the
biodiesel
blended
fuel
tax
credit,
the
designated
rate
4
is
3.5
cents
for
B-5
or
higher
but
not
as
high
as
B-11
and
5
5
cents
for
B-11
or
higher.
For
the
E-15
plus
gasoline
promotion
6
tax
credit,
the
designated
rate
depends
upon
the
time
of
the
7
year.
For
the
first
period
beginning
January
1
and
ending
May
8
31,
it
is
3
cents,
for
the
second
period
beginning
June
1
and
9
ending
September
15,
it
is
10
cents,
and
for
the
third
period
10
beginning
September
16
and
ending
December
31,
it
returns
to
3
11
cents.
All
three
tax
rates
expire
on
January
1,
2025.
12
OVERVIEW
——
RENEWABLE
FUEL
PROMOTION
——
EXCISE
TAXES
13
(DOR).
DOR
compiles
information
from
reports
submitted
by
14
retail
dealers
regarding
the
total
gallonages
of
gasoline
and
15
diesel
fuel
sold
to
consumers
during
the
prior
calendar
year
16
(determination
period).
The
information
includes
sales
of
17
renewable
fuels
according
to
classification
(Code
sections
18
452A.31
and
452A.33).
The
information
compiled
by
a
retail
19
dealer
is
used
as
the
basis
for
calculating
a
promotional
20
income
tax
credit
claimed
by
the
retail
dealer.
The
aggregated
21
information
is
used
by
DOR
to
calculate
the
amount
of
22
promotional
incentives
awarded
in
the
form
of
reduced
excise
23
taxes
imposed
on
certain
renewable
fuel
sold
in
this
state
24
(Code
chapter
452A).
Specifically,
DOR
calculates
the
excise
25
tax
for
ethanol
blended
gasoline
classified
as
E-15
or
higher
26
and
for
biodiesel
fuel
classified
as
B-11
or
higher
for
each
27
12-month
period
beginning
July
1
and
ending
June
30
(coinciding
28
with
the
state
fiscal
year)
(Code
section
452A.3).
29
OVERVIEW
——
RENEWABLE
FUEL
PROMOTION
——
DEDUCTION
OF
EXCISE
30
TAX
FOR
LICENSED
RENEWABLE
FUEL
BLENDERS
(DOR).
The
excise
31
tax
is
imposed
on
gasoline
and
undyed
(“clear”)
diesel
fuel
32
when
it
is
“withdrawn
from
a
terminal”,
meaning
the
physical
33
movement
from
a
storage
and
distribution
facility
(removed
from
34
the
rack)
or
the
shipment
of
ethanol
from
its
manufacturer
to
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a
nonterminal
location
(701
IAC
67.1).
A
person
who
produces
1
a
renewable
fuel
by
combining
gasoline
or
diesel
fuel
with
2
its
biofuel
component
at
a
nonterminal
location
must
obtain
3
a
blender’s
license
(Code
section
452A.6).
The
licensed
4
blender
may
be
liable
for
the
amount
of
any
underpayment
of
the
5
excise
tax
due
or
may
be
entitled
to
receive
a
refund
for
any
6
overpayment
of
the
excise
tax
due,
depending
on
the
amount
of
7
the
tax
paid
on
the
biofuel
and
whether
the
renewable
fuel
to
8
be
sold
meets
the
threshold
classification
for
ethanol
blended
9
gasoline
(E-15)
or
biodiesel
blended
fuel
(B-11)
(Code
section
10
452A.8
and
701
IAC
68.4).
11
OVERVIEW
——
RENEWABLE
FUEL
SALES
AND
USE
TAX
PROMOTION
——
12
BIODIESEL
PRODUCERS.
A
producer
of
biodiesel
registered
with
13
the
EPA
(40
C.F.R.
§79.4)
who
manufactures
biodiesel
meeting
14
DALS
standards
(Code
section
214A.2)
is
entitled
to
claim
a
15
refund
of
sales
and
use
taxes
paid
(Code
section
423.4(9)).
16
The
amount
of
the
refund
is
2
cents
multiplied
by
the
total
17
number
of
gallons
of
biodiesel
during
each
quarter
of
the
year.
18
However,
a
producer
is
not
entitled
to
claim
a
refund
during
19
a
calendar
year
on
any
gallon
in
excess
of
25
million
gallons
20
produced
at
a
facility.
The
refund
expires
on
January
1,
2025.
21
OVERVIEW
——
PROMOTION
OF
RENEWABLE
FUEL
AT
RETAIL
SITES
22
(DALS).
DALS
promotes
renewable
fuels
by
administering
23
the
renewable
fuel
infrastructure
program
for
retail
motor
24
fuel
sites
(infrastructure
program)
in
cooperation
with
25
the
renewable
fuel
infrastructure
board
(Code
chapter
159A,
26
subchapter
III).
Under
the
infrastructure
program,
DALS
enters
27
into
an
agreement
with
a
retail
dealer
to
improve
a
retail
28
site
by
installing,
replacing,
or
converting
infrastructure,
29
including
storage
tanks,
pumps,
dispensers,
and
associated
30
equipment
(e.g.,
fittings
and
pipes).
Specifically,
financial
31
incentives
are
awarded
on
a
cost-share
basis
to
store
a
biofuel
32
classified
as
E-100
or
B-100,
or
to
store
and
dispense
a
33
renewable
fuel
having
a
threshold
classification
of
E-15
or
34
B-1
(Code
section
159A.14).
The
award
of
financial
incentives
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is
based
on
either
a
three-year
agreement
with
the
state’s
1
incurred
cost
share
limited
to
50
percent
of
the
actual
2
costs
incurred
or
$30,000,
whichever
is
less,
or
a
five-year
3
agreement
with
the
state
cost
share
limited
to
70
percent
of
4
the
actual
costs
incurred
or
$50,000,
whichever
is
less.
A
5
participating
person
may
receive
multiple
awards
to
improve
the
6
same
retail
site
so
long
as
the
total
amount
of
awards
does
not
7
exceed
the
percentage
or
dollar
amount
limit.
A
retail
dealer
8
who
acts
in
violation
of
an
agreement
is
subject
to
a
civil
9
penalty
of
up
to
$1,000
per
day
(Code
section
159A.14(7)).
10
The
infrastructure
program
is
supported
by
the
renewable
11
fuel
infrastructure
fund
(infrastructure
fund)
(Code
section
12
159A.16).
13
BILL
IN
SUMMARY
——
REQUIREMENTS
——
COMPLIANCE
WITH
THE
14
E-15
ACCESS
STANDARD
(DALS).
The
bill
creates
an
E-15
access
15
standard
(new
Code
section
214A.31)
beginning
January
1,
16
2023.
In
order
to
comply
with
the
E-15
access
standard,
a
17
retail
dealer
must
advertise
and
sell
E-15
gasoline
from
a
18
minimum
number
of
qualifying
dispensers
(i.e.,
a
dispenser
19
that
dispenses
gasoline)
located
at
the
retail
dealer’s
retail
20
site.
The
number
of
qualified
dispensers
required
depends
on
21
whether
the
retail
dealer
installed,
replaced,
or
converted
a
22
gasoline
storage
tank
on
or
after
that
date.
If
so,
a
general
23
form
of
compliance
applies
and
the
retail
dealer
must
dispense
24
E-15
gasoline
from
at
least
50
percent
of
all
qualified
25
gasoline
dispensers
located
at
the
retail
site.
If
the
retail
26
site
has
only
one
qualified
dispenser,
that
dispenser
must
27
dispense
E-15
gasoline.
An
alternative
form
of
compliance
28
applies
if
the
retail
dealer
has
not
installed,
replaced,
29
or
converted
a
gasoline
storage
tank
on
or
after
that
date.
30
Under
the
alternative
form
of
compliance,
the
retail
dealer
31
is
not
required
to
dispense
E-15
gasoline
from
any
qualified
32
dispenser
until
January
1,
2026.
On
and
after
that
date,
two
33
conditions
must
be
met:
(1)
the
retail
dealer
still
cannot
34
install,
replace,
or
convert
a
gasoline
storage
tank,
and
(2)
35
-48-
LSB
5021XL
(24)
89
da/ns
48/
55
S.F.
_____
H.F.
_____
the
retail
dealer
must
advertise
and
sell
E-15
gasoline
from
1
one
qualified
dispenser
located
at
the
retail
motor
fuel
site.
2
If
the
retail
dealer
fails
to
meet
any
of
the
two
conditions
3
under
the
alternative
form
of
compliance,
the
retail
dealer
is
4
subject
to
the
general
form
of
compliance
and
must
immediately
5
advertise
and
sell
E-15
gasoline
from
the
minimum
number
(one
6
or
50
percent)
of
the
qualified
dispensers
at
the
retail
site.
7
BILL
IN
SUMMARY
——
REQUIREMENTS
——
COMPLIANCE
WITH
8
E-15
ACCESS
STANDARD
——
SUSPENSION
AND
WAIVERS.
The
bill
9
exempts
certain
unqualified
dispensers
from
the
E-15
access
10
standard,
including
those
dispensers
that
exclusively
dispense
11
aviation
gasoline,
diesel
fuel,
or
kerosene
(new
Code
section
12
214A.32).
It
also
exempts
dispensers
that
are
part
of
a
tank
13
vehicle
dispensing
motor
fuel
off-site.
A
special
exemption
14
applies
when
the
retail
dealer
cannot
meet
the
E-15
access
15
standard
because
of
maintenance,
repair,
or
reconditioning
of
16
infrastructure
or
the
installation,
expansion,
replacement,
17
or
conversion
of
infrastructure.
The
governor
may
issue
an
18
executive
order
that
suspends
compliance
by
all
retail
dealers
19
doing
business
in
the
state
or
a
geographic
segment
of
the
20
state
(new
Code
section
214A.33).
The
governor’s
suspension
21
order
must
be
supported
by
credible
evidence
that
market
forces
22
or
existing
infrastructure
prevents
compliance.
The
secretary
23
of
agriculture
may
issue
either
of
two
administrative
orders
24
that
waive
compliance
by
a
retail
dealer
on
a
site-by-site
25
basis.
The
E-15
unavailability
waiver
order
must
be
based
on
26
credible
evidence
that
a
retail
dealer
has
not
been
able
to
27
reasonably
obtain
E-15
gasoline
(new
Code
section
214A.34).
28
The
E-15
incompatible
infrastructure
waiver
order
must
be
29
based
on
credible
evidence
that
the
motor
fuel
storage
and
30
dispensing
infrastructure
located
at
the
retail
motor
fuel
31
site
is
not
compatible
with
the
use
of
E-15
gasoline.
The
32
secretary
of
agriculture
may
issue
either
a
class
1
or
class
33
2
E-15
incompatible
infrastructure
waiver
order
(new
Code
34
section
214A.35).
A
class
1
waiver
order
is
based
on
the
age
35
-49-
LSB
5021XL
(24)
89
da/ns
49/
55
S.F.
_____
H.F.
_____
of
all
motor
fuel
tanks
dispensing
gasoline,
and
specifically
1
the
date
of
installation
and
the
construction
materials
used
2
(specifically
fiberglass).
A
class
2
waiver
order
is
based
on
3
an
evaluation
of
the
motor
fuel
site
to
determine
if
the
motor
4
fuel
storage
and
dispensing
infrastructure
is
not
compatible
5
with
E-15
gasoline.
The
evaluation
must
be
completed
by
6
DALS
or
a
certified
professional
retail
motor
fuel
site
7
installer
(installer)
certified
by
DALS.
In
addition,
the
8
total
estimated
cost
of
the
improvement
must
exceed
the
E-15
9
infrastructure
base
amount
which
equals
the
maximum
amount
of
10
financial
incentives
that
the
retail
dealer
could
be
awarded
11
under
the
renewable
fuel
infrastructure
program
for
retail
12
dealers
(amended
Code
section
159A.14).
The
secretary
must
13
terminate
a
class
1
or
class
2
waiver
order
based
on
the
14
occurrence
of
any
number
of
specified
events,
including
the
15
failure
of
the
retail
dealer
to
be
licensed
under
weights
16
and
measures
regulations
governing
motor
fuel
pumps
(Code
17
section
214.2);
the
cessation
of
the
retail
dealer’s
business;
18
or
the
installation,
replacement,
or
conversion
of
a
motor
19
fuel
storage
tank.
A
retail
dealer
or
installer
who
falsely
20
completes
an
application
for
a
class
1
or
class
2
waiver
21
order
commits
perjury
and
is
subject
to
a
class
“D”
felony
22
(punishable
by
confinement
for
no
more
than
five
years
and
a
23
fine
of
at
least
$1,025
but
not
more
than
$10,245).
24
BILL
IN
SUMMARY
——
REQUIREMENTS
——
RETAIL
MOTOR
FUEL
SITE
25
INSPECTIONS
AND
REGULATION
OF
RETAIL
DEALER
ADVERTISING
(DALS).
26
The
bill
provides
that
when
conducting
an
inspection
of
metered
27
pumps
located
at
a
retail
site
to
determine
compliance
with
28
weights
and
measures
regulations,
DALS
is
also
required
to
29
determine
compliance
with
the
E-15
access
standard
(amended
30
Code
section
214.12).
A
retail
dealer
is
prohibited
from
31
falsely
advertising
for
sale
gasoline
or
diesel
fuel,
including
32
by
advertising
a
false
classification
(amended
Code
section
33
214A.3).
The
bill
eliminates
a
provision
requiring
that
a
34
decal
be
placed
on
a
dispenser
notifying
consumers
that
motor
35
-50-
LSB
5021XL
(24)
89
da/ns
50/
55
S.F.
_____
H.F.
_____
fuel
being
dispensed
is
a
renewable
fuel
(amended
Code
section
1
159A.6
and
repealed
Code
section
214A.16).
The
bill
does
not
2
affect
federal
labeling
requirements,
including
by
the
United
3
States
environmental
protection
agency
under
the
Clean
Air
Act
4
Amendments
of
1990
(42
U.S.C.
§7545
and
40
C.F.R.
pt.
1090)
or
5
by
the
United
States
department
of
energy
and
the
United
States
6
federal
trade
commission
(15
U.S.C.
§2801
et
seq.,
42
U.S.C.
7
§17021,
16
C.F.R.
pt.
306,
and
40
C.F.R.
§80.1501(a)).
8
BILL
IN
SUMMARY
——
REQUIREMENTS
——
RETAIL
DEALER
9
DISCIPLINARY
ACTION
AND
ENFORCEMENT
(DALS).
The
bill
provides
10
that
a
retail
dealer
who
violates
the
E-15
access
standard
11
is
subject
to
a
disciplinary
action
which
may
result
in
the
12
suspension
or
revocation
of
the
retail
dealer’s
license
issued
13
under
weights
and
measures
regulations
(new
Code
section
14
214A.36).
15
BILL
IN
DETAIL
——
REQUIREMENTS
——
NEW
INSTALLATION
OF
16
GASOLINE
AND
BIODIESEL
INFRASTRUCTURE
AT
RETAIL
DEALER
SITES
17
(DNR
AND
SFM).
The
bill
provides
that
new
infrastructure
18
required
to
be
installed
to
store
and
dispense
E-85
gasoline
19
or
B-20
biodiesel
fuel
must
be
(1)
listed
with
an
independent
20
testing
laboratory
(e.g.,
underwriters
laboratories)
or
21
approved
by
the
manufacturer
and
(2)
approved
by
DNR
or
the
22
SFM,
unless
such
approval
is
waived
based
on
compliance
with
a
23
substitute
requirement
(new
Code
sections
455G.32
and
455G.33,
24
which
are
similar
to
amended
Code
section
455G.31
excusing
the
25
storage
of
ethanol
blended
gasoline
classified
as
higher
than
26
E-9,
which
the
bill
increases
to
E-10).
27
BILL
IN
SUMMARY
——
REGULATION
OF
MOTOR
VEHICLES
POWERED
BY
28
QUALIFIED
RENEWABLE
FUELS
AND
PURCHASE
OF
QUALIFIED
RENEWABLE
29
FUELS
BY
STATE
GOVERNMENT
ENTITIES.
The
bill
provides
that
DAS
30
and
other
state
entities
administering
the
state
government
31
fleet
must
provide
that
state
motor
vehicles
operating
using
32
engines
powered
by
gasoline
or
diesel
fuel
must
use
the
33
highest
classification
of
qualified
renewable
fuel
available.
34
A
qualified
renewable
fuel
is
limited
to
ethanol
blended
35
-51-
LSB
5021XL
(24)
89
da/ns
51/
55
S.F.
_____
H.F.
_____
gasoline
or
biodiesel
blended
fuel.
Certain
limitations
1
apply:
(1)
the
qualified
renewable
fuel
must
be
warranted
2
by
the
motor
vehicle’s
manufacturer,
(2)
that
classification
3
of
qualified
renewable
fuel
must
be
available,
and
(3)
an
4
emergency
situation
must
not
exist.
In
addition,
DAS
and
the
5
other
state
entities
must
revise
their
bidding
procedures
as
6
necessary
to
account
for
the
purchase
of
motor
vehicles
that
7
operate
using
engines
powered
by
biodiesel
blended
fuel
having
8
a
threshold
classification
of
B-20
(new
Code
section
8A.368).
9
DAS,
in
cooperation
with
the
other
entities,
is
required
to
10
prepare
an
annual
report
to
be
submitted
to
the
governor
and
11
general
assembly
providing
information
regarding
the
number
12
of
state
motor
vehicles
using
engines
powered
using
motor
13
fuel,
including
gasoline
and
diesel
fuel,
the
number
of
those
14
motor
vehicles
capable
of
being
powered
using
ethanol
blended
15
gasoline
meeting
a
threshold
classification
of
E-15
and
E-85
or
16
biodiesel
blended
fuel
meeting
a
threshold
classification
of
17
B-20,
and
the
number
of
gallons
of
qualified
renewable
fuels
18
purchased
(new
Code
section
8A.369
and
amended
Code
sections
19
216B.3,
262.25A,
307.21,
and
904.312A).
20
BILL
IN
SUMMARY
——
PROMOTION
——
TAX
CREDITS.
The
bill
21
extends
the
period
before
promotional
tax
credits
expire.
For
22
the
E-85
gasoline
promotion
tax
credit,
the
extended
date
is
23
January
1,
2028
(amended
Code
sections
422.11O
and
422.33
24
(11B));
for
the
biodiesel
blended
fuel
tax
credit,
the
extended
25
date
is
January
1,
2028
(amended
Code
sections
422.11P
and
26
422.33(11C));
and
for
the
E-15
plus
gasoline
tax
credit,
27
the
extended
date
is
January
1,
2026
(amended
Code
sections
28
422.11Y
and
422.33(11D)).
The
bill
changes
the
threshold
29
classifications
and
designated
rates
for
two
of
the
tax
credits
30
beginning
January
1,
2023.
This
includes
the
biodiesel
blended
31
fuel
tax
credit
(5
cents
for
B-11,
7
cents
for
B-20,
10
cents
32
for
B-30)
and
the
E-15
plus
gasoline
promotion
tax
credit
(a
33
flat
9
cents).
The
new
rates
for
the
biodiesel
blended
fuel
34
tax
credit
for
part
of
the
second
step
of
the
threshold
(higher
35
-52-
LSB
5021XL
(24)
89
da/ns
52/
55
S.F.
_____
H.F.
_____
than
B-20
but
not
as
high
as
B-30)
and
the
third
full
step
of
1
the
threshold
(B-30
and
higher)
take
effect
after
standards
for
2
those
classifications
are
established
by
DALS.
3
BILL
IN
SUMMARY
——
PROMOTION
——
RETAIL
DEALER
REPORTING
4
OF
GALLONAGES
OF
GASOLINE
AND
DIESEL
FUEL
(DOR).
Beginning
5
January
1,
2022,
a
retail
dealer
must
include
additional
6
information
regarding
subclassifications
of
ethanol
blended
7
gasoline
gallonages
and
biodiesel
blended
fuel
gallonages
for
8
each
reported
determination
period
submitted
to
DOR
to
allow
a
9
retail
dealer
to
calculate
a
promotional
tax
credit
and
DOR
to
10
calculate
the
promotional
excise
tax
imposed
on
ethanol
blended
11
gasoline
and
biodiesel
blended
fuel.
The
bill
provides
that
12
DOR
may
require
reports
by
retail
dealers
to
be
submitted
by
13
electronic
transmission
and
that
DOR
may
grant
an
extension
14
to
a
retail
dealer
to
submit
a
report.
Otherwise,
a
retail
15
dealer
who
does
not
submit
a
timely
report
is
subject
to
a
16
$100
civil
penalty.
The
bill
extends
the
expiration
of
the
17
promotional
excise
tax
rates
for
both
ethanol
blended
gasoline
18
and
biodiesel
blended
fuel
to
July
1,
2030.
It
also
increases
19
the
threshold
classification
for
biodiesel
blended
fuel
to
B-20
20
beginning
July
1,
2024.
21
BILL
IN
SUMMARY
——
PROMOTION
——
EXCISE
TAX
PAID
BY
LICENSED
22
BLENDERS
SUBJECT
TO
DEDUCTION
IN
LIEU
OF
REFUND
(DOR).
The
23
bill
provides
that
a
licensed
blender
is
no
longer
required
24
to
apply
for
a
refund
for
an
overpayment
amount.
Instead,
25
the
gallonage
of
gasoline
or
diesel
fuel
withdrawn
from
a
26
terminal
by
a
supplier
for
purchase
by
a
licensed
blender
is
27
subject
to
a
deduction
on
ethanol
blended
gasoline
or
biodiesel
28
blended
gasoline
after
it
is
blended
to
meet
its
classification
29
threshold
(amended
Code
section
452.8).
This
provision
is
30
repealed
July
1,
2030.
31
BILL
IN
SUMMARY
——
PROMOTION
——
SALES
AND
USE
TAXES
PAID
BY
32
BIODIESEL
PRODUCER
SUBJECT
TO
PROMOTIONAL
REFUND
(DOR).
The
33
bill
provides
that
beginning
January
1,
2023,
the
amount
of
34
the
refund
of
sales
and
use
taxes
entitled
to
be
claimed
by
35
-53-
LSB
5021XL
(24)
89
da/ns
53/
55
S.F.
_____
H.F.
_____
a
biodiesel
producer
is
increased
to
4
cents
per
gallon
per
1
quarter
of
each
calendar
year
up
to
the
25
million
gallonage
2
limit
(amended
Code
section
423.4).
3
BILL
IN
SUMMARY
——
PROMOTION
——
FINANCING
RETAIL
SITE
4
INFRASTRUCTURE
(DALS).
The
bill
provides
that
the
underground
5
storage
tank
fund
board
is
no
longer
involved
in
evaluating
6
applications
submitted
under
the
renewable
fuel
infrastructure
7
program
(amended
Code
section
159A.14)
and
the
renewable
fuel
8
infrastructure
program
for
biodiesel
terminal
facilities
9
(amended
Code
section
159A.15).
The
infrastructure
board
may
10
establish
a
system
to
rank
applications
to
participate
in
the
11
infrastructure
program
for
approval.
In
ranking
applications,
12
the
infrastructure
board
may
provide
special
priority
to
13
a
retail
motor
fuel
site
that
has
been
constructed
and
is
14
operating.
It
may
also
provide
special
priority
to
a
retail
15
dealer
who
was
not
eligible
to
receive
an
E-15
incompatible
16
infrastructure
class
2
waiver
because
the
total
estimated
cost
17
of
improvement
does
not
exceed
the
E-15
improvement
base
amount
18
(assigned
special
status).
An
award
of
financial
incentives
19
must
be
based
on
a
five-year
agreement
with
the
state’s
cost
20
share
limited
to
70
percent
or
$50,000,
whichever
is
less.
21
However,
in
the
case
of
a
special
status
retail
dealer
who
DALS
22
determines
is
ineligible
to
be
issued
an
E-15
incompatible
23
infrastructure
class
2
waiver
order,
the
limits
for
financing
24
an
improvement
to
the
retail
dealer’s
retail
site
are
subject
25
to
the
70
percent
or
$50,000
regardless
of
whether
the
26
infrastructure
board
awarded
financing
to
improve
that
retail
27
site
prior
to
the
determination.
A
retail
dealer
installing,
28
replacing,
or
converting
ethanol
infrastructure
must
agree
29
to
advertise
and
sell
ethanol
blended
gasoline
classified
at
30
an
E-15
threshold
for
all
12
months
of
the
year
rather
than
31
seasonally.
A
retail
dealer
by
installing,
replacing,
or
32
converting
biodiesel
infrastructure
must
agree
to
advertise
for
33
sale
and
sell
biodiesel
blended
fuel
at
a
B-5
threshold
rather
34
than
a
B-1
threshold
for
all
12
months
of
the
year
with
one
35
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S.F.
_____
H.F.
_____
exception.
The
threshold
is
increased
to
B-11
from
April
1
to
1
October
31.
In
addition,
the
bill
provides
that
during
any
2
fiscal
year,
of
the
moneys
appropriated
to
the
infrastructure
3
fund
(amended
Code
section
159A.16),
not
more
than
$1.25
4
million
may
be
allocated
to
support
biodiesel
infrastructure
5
under
the
renewable
fuel
infrastructure
program
for
retail
6
motor
fuel
sites.
The
bill
does
not
limit
the
amount
that
7
may
be
allocated
to
support
the
renewable
fuel
infrastructure
8
program
for
biodiesel
terminal
facilities.
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