Senate
File
2418
-
Introduced
SENATE
FILE
2418
BY
COMMITTEE
ON
APPROPRIATIONS
(SUCCESSOR
TO
SSB
3187)
A
BILL
FOR
An
Act
relating
to
renewable
fuel
infrastructure,
including
by
1
providing
for
a
financing
program,
and
including
effective
2
date
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
159A.14,
subsection
1,
paragraph
1
a,
subparagraph
(1),
Code
2024,
is
amended
by
striking
the
2
subparagraph
and
inserting
in
lieu
thereof
the
following:
3
(1)
(a)
Except
as
provided
in
this
subparagraph,
the
4
ethanol
infrastructure
shall
have
the
capacity
to
store
and
5
dispense
E-85
gasoline.
6
(b)
(i)
If
the
ethanol
infrastructure
is
not
used
to
store
7
and
dispense
E-85
gasoline,
it
must
have
the
capacity
to
store
8
and
dispense
ethanol
blended
gasoline
classified
as
E-15
or
9
higher.
10
(ii)
This
subparagraph
division
is
repealed
January
1,
11
2026.
12
(c)
(i)
If
the
ethanol
infrastructure
is
not
used
to
store
13
and
dispense
E-85
gasoline,
it
must
have
the
capacity
to
store
14
and
dispense
ethanol
blended
gasoline
classified
as
E-40
or
15
higher.
16
(ii)
This
subparagraph
division
shall
be
implemented
17
beginning
January
1,
2026.
18
(iii)
This
subparagraph
division
is
repealed
July
1,
2030.
19
(d)
The
ethanol
infrastructure
may
store,
blend,
and
20
dispense
ethanol
or
ethanol
blended
gasoline
from
a
motor
21
fuel
blender
pump.
The
ethanol
infrastructure
must
at
least
22
include
a
motor
fuel
blender
pump
that
dispenses
different
23
classifications
of
ethanol
blended
gasoline,
if
it
allows
E-85
24
gasoline
to
be
dispensed
at
all
times
that
the
blender
pump
is
25
operating.
26
Sec.
2.
Section
455G.30,
Code
2024,
is
amended
by
adding
the
27
following
new
subsections:
28
NEW
SUBSECTION
.
4A.
“Dispenser
breakaway”
means
the
part
29
of
gasoline
storage
and
dispensing
infrastructure
that
acts
to
30
immediately
stop
the
flow
of
motor
fuel
from
its
storage
system
31
to
its
dispenser
in
the
event
that
its
dispensing
hose
or
32
associated
hanging
infrastructure
becomes
detached,
including
33
when
a
vehicle
pulls
away
from
the
dispenser
while
its
nozzle
34
is
attached
to
the
vehicle.
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NEW
SUBSECTION
.
4B.
“E-85
gasoline”
means
the
same
as
1
defined
in
section
214A.1.
2
NEW
SUBSECTION
.
8.
“Shear
valve”
means
the
part
of
gasoline
3
storage
and
dispensing
infrastructure
that
acts
to
immediately
4
stop
the
flow
of
motor
fuel
from
its
storage
system
to
its
5
dispenser
in
the
event
of
an
emergency
hazard,
including
but
6
not
limited
to
a
vehicle
impacting
the
dispenser
or
a
fire.
7
Sec.
3.
Section
455G.31,
subsection
2,
Code
2024,
is
amended
8
to
read
as
follows:
9
2.
Subject
to
section
455G.32
,
a
retail
dealer
may
use
10
gasoline
storage
and
dispensing
infrastructure
to
store
and
11
dispense
ethanol
blended
gasoline
classified
as
E-9
or
higher
12
if
the
department
under
this
subchapter
,
or
the
director
of
the
13
department
of
inspections,
appeals,
and
licensing
under
chapter
14
101
,
determines
that
the
gasoline
infrastructure
is
compatible
15
with
the
classification
of
ethanol
blended
gasoline
being
used.
16
Sec.
4.
Section
455G.32,
Code
2024,
is
amended
to
read
as
17
follows:
18
455G.32
E-85
gasoline
Ethanol
blended
gasoline
——
compatible
19
infrastructure
——
compliance
requirement.
20
1.
A
retail
dealer
shall
not
install,
replace,
or
convert
21
gasoline
storage
and
dispensing
infrastructure
used
to
store
22
and
dispense
ethanol
blended
gasoline
classified
as
E-15
or
23
higher,
unless
the
installed,
replaced,
or
converted
gasoline
24
infrastructure
,
that
includes
all
parts
prior
to
the
point
25
where
the
dispenser
breakaway
ends,
is
capable
of
storing
26
and
dispensing
ethanol
blended
gasoline
classified
as
E-85
27
gasoline
.
28
2.
a.
Notwithstanding
subsection
1,
a
retail
dealer
29
may
install,
replace,
or
convert
any
part
of
the
gasoline
30
infrastructure
beginning
at
a
point
where
the
shear
valve
ends
31
and
continuing
until
the
point
where
the
dispenser
breakaway
32
ends
that
is
incompatible
with
E-85
gasoline.
However,
that
33
part
of
the
gasoline
infrastructure
must
be
compatible
with
the
34
following:
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(1)
(a)
Ethanol
blended
gasoline
classified
as
E-15
or
1
higher.
2
(b)
This
subparagraph
is
repealed
January
1,
2026.
3
(2)
(a)
Ethanol
blended
gasoline
classified
as
E-40
or
4
higher.
5
(b)
This
subparagraph
shall
be
implemented
beginning
6
January
1,
2026.
7
b.
This
subsection
is
repealed
July
1,
2030.
8
2.
3.
The
gasoline
infrastructure
must
be
all
of
the
9
following:
10
a.
Listed
as
compatible
for
use
with
ethanol
blended
11
gasoline
classified
for
that
part
of
the
gasoline
12
infrastructure
as
E-85
provided
in
subsection
1
by
an
13
independent
testing
laboratory
or
as
approved
by
the
14
manufacturer.
15
b.
Approved
by
the
department
or
state
fire
marshal
the
16
director
of
the
department
of
inspections,
appeals,
and
17
licensing
subject
to
conditions
determined
necessary
by
the
18
department
or
state
fire
marshal
the
director
of
the
department
19
of
inspections,
appeals,
and
licensing
.
The
department
20
or
state
fire
marshal
the
director
of
the
department
of
21
inspections,
appeals,
and
licensing
may
waive
the
requirement
22
in
paragraph
“a”
upon
satisfaction
that
a
substitute
23
requirement
serves
the
same
purpose.
24
Sec.
5.
Section
455G.33,
subsection
2,
paragraph
b,
Code
25
2024,
is
amended
to
read
as
follows:
26
b.
Approved
by
the
department
,
or
director
of
the
department
27
of
inspections,
appeals,
and
licensing
under
chapter
101,
28
subject
to
conditions
determined
necessary
by
the
department
29
or
director
of
the
department
of
inspections,
appeals,
and
30
licensing.
The
department
or
director
of
the
department
of
31
inspections,
appeals,
and
licensing
may
waive
the
requirement
32
in
paragraph
“a”
upon
satisfaction
that
a
substitute
33
requirement
serves
the
same
purpose.
34
Sec.
6.
APPLICATIONS
FOR
FINANCIAL
INCENTIVES.
This
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Act
does
not
require
the
renewable
fuel
infrastructure
board
1
established
in
section
159A.13
to
reconsider
or
reapprove
a
2
decision
made
prior
to
the
effective
date
of
this
Act
for
3
an
award
of
financial
incentives
under
the
renewable
fuel
4
infrastructure
program
for
retail
motor
fuel
sites
established
5
in
section
159A.14.
6
Sec.
7.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
7
importance,
takes
effect
upon
enactment.
8
EXPLANATION
9
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
10
the
explanation’s
substance
by
the
members
of
the
general
assembly.
11
BACKGROUND
——
GENERAL.
This
bill
provides
for
the
use
12
of
infrastructure
used
to
store
and
dispense
ethanol
blended
13
gasoline
owned
by
a
retail
dealer
of
motor
fuel
(retail
14
dealer)
who
sells
gasoline
on
a
retail
basis
from
a
permanent
15
geographic
location
referred
to
as
a
retail
motor
fuel
site
16
(retail
site)
(Code
section
214A.1).
17
BACKGROUND
——
TERMINOLOGY.
Ethanol
blended
gasoline
refers
18
to
a
formulation
of
gasoline
blended
with
ethyl
alcohol
that
19
meets
fuel
standards
adopted
by
the
department
of
agriculture
20
and
land
stewardship
(DALS)
(Code
sections
214A.1
and
214A.2)
21
in
accordance
with
ASTM
international
specifications
and
the
22
federal
Clean
Air
Act
Amendments
of
1990
(42
U.S.C.
§7661)
23
administered
by
the
United
States
environmental
protection
24
agency
(EPA).
Classifications
of
ethanol
blended
gasoline
25
are
generally
determined
by
the
volume
percent
of
ethanol
26
and
designated
as
E-xx
where
“xx”
stands
in
for
the
volume
27
percent
of
ethanol.
There
are
three
principal
types
of
ethanol
28
blended
gasoline
referred
to
commonly
as
E-10
formulated
with
29
9
or
10
percent
ethanol
by
volume,
E-15
formulated
with
15
30
percent
ethanol
by
volume,
and
the
highest
classification
E-85
31
formulated
with
between
68
to
83
percent
ethanol
by
volume
32
(Code
section
214A.1).
Generally,
the
use
of
E-15
during
33
summer
months
is
allowed
only
by
waiver
issued
by
the
EPA.
34
BACKGROUND
——
E-15
ACCESS
STANDARD.
Beginning
July
1,
2023,
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a
retail
dealer
is
required
to
comply
with
an
E-15
access
1
standard
that
requires
a
retail
dealer
to
advertise
for
sale
2
and
sell
E-15
from
a
minimum
number
of
qualifying
gasoline
3
dispensers,
commonly
described
as
pumps,
located
at
the
retail
4
dealer’s
retail
site
(Code
chapter
214A,
subchapter
III).
5
There
are
two
access
standards.
In
order
to
comply
with
the
6
general
E-15
access
standard,
the
retail
dealer
must
dispense
7
E-15
from
one
qualifying
gasoline
dispenser
if
there
is
only
8
one
such
dispenser
located
at
the
retail
site
or
from
at
least
9
50
percent
of
all
qualifying
dispensers
if
there
is
more
than
10
one
such
dispenser
located
at
the
retail
site.
In
order
to
11
comply
with
the
alternative
E-15
access
standard,
the
retail
12
dealer
cannot
install,
replace,
or
convert
a
gasoline
storage
13
tank
at
the
retail
site
on
or
after
July
1,
2023,
and
the
retail
14
dealer
must
advertise
for
sale
and
sell
E-15
from
at
least
one
15
qualifying
dispenser
on
and
after
January
1,
2026.
Once
the
16
retail
dealer
no
longer
complies
with
the
alternative
E-15
17
access
standard
(e.g.,
by
installing
a
new
tank),
the
retail
18
dealer
must
comply
with
the
general
E-15
access
standard.
An
19
exemption
exists
for
small
retail
motor
fuel
sites
in
operation
20
prior
to
January
1,
2023
(Code
section
214A.36).
21
BACKGROUND
——
INFRASTRUCTURE
PROGRAM
FOR
RETAIL
MOTOR
FUEL
22
SITES.
Under
the
renewable
fuel
infrastructure
program
for
23
retail
motor
fuel
sites
(financing
program),
an
eligible
retail
24
dealer
may
be
awarded
moneys
on
a
cost-share
basis
by
the
25
renewable
fuel
infrastructure
board
(RFIB)
and
DALS
to
assist
26
in
improving
the
retail
dealer’s
retail
site
by
installing,
27
replacing,
or
converting
infrastructure
(new
infrastructure)
to
28
be
used
to
store,
blend,
or
dispense
ethanol
blended
gasoline
29
in
compliance
with
the
general
E-15
access
standard
(Code
30
section
159A.14).
Thus,
the
financing
program
could
be
used
31
to
upgrade
infrastructure
that
had
been
used
to
store
and
32
dispense
E-0
or
E-10.
However,
the
new
infrastructure
must
33
have
the
capacity
of
storing
and
dispensing
either
E-85
only
or
34
a
variety
of
classifications
ranging
from
E-15
to
E-85
as
part
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of
a
blender
pump
system.
1
BACKGROUND
——
NEW
INSTALLATION
OF
GASOLINE
INFRASTRUCTURE.
2
Generally,
the
department
of
natural
resources
regulates
3
infrastructure
used
to
store
and
pump
motor
fuel
stored
in
4
underground
tanks,
including
ethanol
blended
gasoline,
located
5
at
a
retail
site.
The
department
of
inspections,
appeals,
and
6
licensing
regulates
infrastructure
used
to
store
motor
fuel
in
7
aboveground
tanks
and
aboveground
equipment
used
to
dispense
8
motor
fuel.
A
retail
dealer
at
such
a
retail
site
who
uses
9
infrastructure
compatible
with
E-15
must
install,
replace,
or
10
convert
that
infrastructure
with
new
infrastructure
that
is
11
compatible
with
E-85
(Code
section
455G.32).
12
BILL’S
PROVISIONS
——
INFRASTRUCTURE
PROGRAM
FOR
RETAIL
13
MOTOR
FUEL
SITES.
The
bill
provides
a
transition
period
for
14
infrastructure
supported
by
an
award
of
cost-share
moneys
15
under
the
financing
program.
Until
January
1,
2026,
the
new
16
infrastructure
must
be
compatible
with
E-15;
from
January
17
1,
2026,
until
July
1,
2030,
the
new
infrastructure
must
be
18
compatible
with
ethanol
blended
gasoline
classified
as
E-40;
19
and
on
and
after
July
1,
2030,
the
new
infrastructure
must
be
20
compatible
with
E-85.
The
bill’s
provisions
do
not
affect
21
decisions
regarding
financing
by
the
RFIB
made
prior
to
the
22
bill’s
effective
date.
23
BILL’S
PROVISIONS
——
NEW
INSTALLATION
OF
GASOLINE
24
INFRASTRUCTURE.
The
bill
recognizes
a
dispenser
breakaway
25
which
is
that
part
of
the
infrastructure
that
acts
to
26
immediately
stop
the
flow
of
motor
fuel
from
its
storage
system
27
to
its
dispenser
in
the
event
that
its
dispensing
hose
or
28
associated
hanging
infrastructure
becomes
detached.
The
bill
29
provides
that
the
E-85
compatibility
requirement
exists
for
30
all
parts
of
the
infrastructure
prior
to
the
point
where
the
31
dispenser
breakaway
ends.
Otherwise,
a
similar
transition
32
period
exists
to
the
other
parts
of
the
infrastructure
except
33
for
that
part
extending
from
the
shear
valve
through
to
the
34
dispenser
breakaway.
Until
January
1,
2026,
those
parts
must
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be
compatible
with
E-15;
from
January
1,
2026,
until
July
1,
1
2030,
those
parts
must
be
compatible
with
E-40;
and
on
and
2
after
July
1,
2030,
those
parts
must
be
compatible
with
E-85.
3
BILL’S
PROVISIONS
——
EFFECTIVE
DATE.
The
bill
takes
effect
4
upon
enactment.
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