S.F. _____ 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to store 8 and dispense ethanol blended gasoline classified as E-15 or 9 higher. 10 (ii) This subparagraph division is repealed July 1, 2025. 11 (c) (i) If the ethanol infrastructure is not used to store 12 and dispense E-85 gasoline, it must have the capacity to store 13 and dispense ethanol blended gasoline classified as E-40 or 14 higher. 15 (ii) This subparagraph division shall be implemented 16 beginning July 1, 2025. 17 (iii) This subparagraph division is repealed July 1, 2030. 18 (d) The ethanol infrastructure may store, blend, and 19 dispense ethanol or ethanol blended gasoline from a motor 20 fuel blender pump. The ethanol infrastructure must at least 21 include a motor fuel blender pump that dispenses different 22 classifications of ethanol blended gasoline, if it allows E-85 23 gasoline to be dispensed at all times that the blender pump is 24 operating. 25 Sec. 2. Section 455G.30, Code 2024, is amended by adding the 26 following new subsections: 27 NEW SUBSECTION . 4A. “Dispenser breakaway” means the part 28 of gasoline storage and dispensing infrastructure that acts to 29 immediately stop the flow of motor fuel from its storage system 30 to its dispenser in the event that its dispensing hose or 31 associated hanging infrastructure becomes detached, including 32 when a vehicle pulls away from the dispenser while its nozzle 33 is attached to the vehicle. 34 NEW SUBSECTION . 4B. “E-85 gasoline” means the same as 35 -1- LSB 6315XC (3) 90 da/ns 1/ 6

S.F. _____ defined in section 214A.1. 1 NEW SUBSECTION . 8. “Shear valve” means the part of gasoline 2 storage and dispensing infrastructure that acts to immediately 3 stop the flow of motor fuel from its storage system to its 4 dispenser in the event of an emergency hazard, including but 5 not limited to a vehicle impacting the dispenser or a fire. 6 Sec. 3. Section 455G.32, Code 2024, is amended to read as 7 follows: 8 455G.32 E-85 gasoline Ethanol blended gasoline —— compatible 9 infrastructure —— compliance requirement. 10 1. A retail dealer shall not install, replace, or convert 11 gasoline storage and dispensing infrastructure used to store 12 and dispense ethanol blended gasoline classified as E-15 or 13 higher, unless the installed, replaced, or converted gasoline 14 infrastructure is capable of storing and dispensing ethanol 15 blended gasoline classified as E-85 gasoline . 16 2. a. Notwithstanding subsection 1, a retail dealer 17 may install, replace, or convert a section of the gasoline 18 infrastructure beginning at a point where the shear valve ends 19 and continuing until the point where the dispenser breakaway 20 ends that is incompatible with E-85 gasoline. However, that 21 section of the gasoline infrastructure must be compatible with 22 the following: 23 (1) (a) Ethanol blended gasoline classified as E-15 or 24 higher. 25 (b) This subparagraph is repealed July 1, 2025. 26 (2) (a) Ethanol blended gasoline classified as E-40 or 27 higher. 28 (b) This subparagraph shall be implemented beginning July 29 1, 2025. 30 b. This subsection is repealed July 1, 2030. 31 2. 3. The gasoline infrastructure must be all of the 32 following: 33 a. Listed as compatible for use with ethanol blended 34 gasoline classified for that part of the gasoline 35 -2- LSB 6315XC (3) 90 da/ns 2/ 6

S.F. _____ infrastructure as E-85 provided in subsection 1 by an 1 independent testing laboratory or as approved by the 2 manufacturer. 3 b. Approved by the department or state fire marshal subject 4 to conditions determined necessary by the department or state 5 fire marshal. The department or state fire marshal may waive 6 the requirement in paragraph “a” upon satisfaction that a 7 substitute requirement serves the same purpose. 8 Sec. 4. APPLICATIONS FOR FINANCIAL INCENTIVES. This 9 Act does not require the renewable fuel infrastructure board 10 established in section 159A.13 to reconsider or reapprove a 11 decision made prior to the effective date of this Act for 12 an award of financial incentives under the renewable fuel 13 infrastructure program for retail motor fuel sites established 14 in section 159A.14. 15 Sec. 5. EFFECTIVE DATE. This Act, being deemed of immediate 16 importance, takes effect upon enactment. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 BACKGROUND —— GENERAL. This bill provides for the use 21 of infrastructure used to store and dispense ethanol blended 22 gasoline owned by a retail dealer of motor fuel (retail 23 dealer) who sells gasoline on a retail basis from a permanent 24 geographic location referred to as a retail motor fuel site 25 (retail site) (Code section 214A.1). 26 BACKGROUND —— TERMINOLOGY. Ethanol blended gasoline refers 27 to a formulation of gasoline blended with ethyl alcohol that 28 meets fuel standards adopted by the department of agriculture 29 and land stewardship (DALS) (Code sections 214A.1 and 214A.2) 30 in accordance with ASTM international specifications and the 31 federal Clean Air Act Amendments of 1990 (42 U.S.C. §7661) 32 administered by the United States environmental protection 33 agency (EPA). Classifications of ethanol blended gasoline 34 are generally determined by the volume percent of ethanol 35 -3- LSB 6315XC (3) 90 da/ns 3/ 6

S.F. _____ and designated as E-xx where “xx” stands in for the volume 1 percent of ethanol. There are three principal types of ethanol 2 blended gasoline referred to commonly as E-10 formulated with 3 9 or 10 percent ethanol by volume, E-15 formulated with 15 4 percent ethanol by volume, and the highest classification E-85 5 formulated with between 68 to 83 percent ethanol by volume 6 (Code section 214A.1). Generally, the use of E-15 during 7 summer months is allowed only by waiver issued by the EPA. 8 BACKGROUND —— E-15 ACCESS STANDARD. Beginning July 1, 2023, 9 a retail dealer is required to comply with an E-15 access 10 standard that requires a retail dealer to advertise for sale 11 and sell E-15 from a minimum number of qualifying gasoline 12 dispensers, commonly described as pumps, located at the retail 13 dealer’s retail site (Code chapter 214A, subchapter III). 14 There are two access standards. In order to comply with the 15 general E-15 access standard, the retail dealer must dispense 16 E-15 from one qualifying gasoline dispenser if there is only 17 one such dispenser located at the retail site or from at least 18 50 percent of all qualifying dispensers if there is more than 19 one such dispenser located at the retail site. In order to 20 comply with the alternative E-15 access standard, the retail 21 dealer cannot install, replace, or convert a gasoline storage 22 tank at the retail site on or after July 1, 2023, and the retail 23 dealer must advertise for sale and sell E-15 from at least one 24 qualifying dispenser on and after January 1, 2026. Once the 25 retail dealer no longer complies with the alternative E-15 26 access standard (e.g., by installing a new tank), the retail 27 dealer must comply with the general E-15 access standard. An 28 exemption exists for small retail motor fuel sites in operation 29 prior to January 1, 2023 (Code section 214A.36). 30 BACKGROUND —— INFRASTRUCTURE PROGRAM FOR RETAIL MOTOR FUEL 31 SITES. Under the renewable fuel infrastructure program for 32 retail motor fuel sites (financing program), an eligible retail 33 dealer may be awarded moneys on a cost-share basis by the 34 renewable fuel infrastructure board (RFIB) and DALS to assist 35 -4- LSB 6315XC (3) 90 da/ns 4/ 6

S.F. _____ in improving the retail dealer’s retail site by installing, 1 replacing, or converting infrastructure (new infrastructure) to 2 be used to store, blend, or dispense ethanol blended gasoline 3 in compliance with the general E-15 access standard (Code 4 section 159A.14). Thus, the financing program could be used 5 to upgrade infrastructure that had been used to store and 6 dispense E-0 or E-10. However, the new infrastructure must 7 have the capacity of storing and dispensing either E-85 only or 8 a variety of classifications ranging from E-15 to E-85 as part 9 of a blender pump system. 10 BACKGROUND —— NEW INSTALLATION OF GASOLINE INFRASTRUCTURE. 11 Generally, the department of natural resources regulates 12 infrastructure used to store motor fuel stored in underground 13 tanks, including ethanol blended gasoline, located at a 14 retail site. A retail dealer at such a retail site who uses 15 infrastructure compatible with E-15 must install, replace, or 16 convert that infrastructure with new infrastructure that is 17 compatible with E-85 (Code section 455G.32). 18 BILL’S PROVISIONS —— INFRASTRUCTURE PROGRAM FOR RETAIL 19 MOTOR FUEL SITES. The bill provides a transition period for 20 infrastructure supported by an award of cost-share moneys 21 under the financing program. Until July 1, 2025, the new 22 infrastructure must be compatible with E-15; from July 1, 2025, 23 until July 1, 2030, the new infrastructure must be compatible 24 with ethanol blended gasoline classified as E-40; and on and 25 after July 1, 2030, the new infrastructure must be compatible 26 with E-85. The bill’s provisions do not affect decisions 27 regarding financing by the RFIB made prior to the bill’s 28 effective date. 29 BILL’S PROVISIONS —— NEW INSTALLATION OF GASOLINE 30 INFRASTRUCTURE. The same transition period applies to a retail 31 dealer when installing, replacing, or converting a certain 32 section of the infrastructure that had been used to dispense 33 E-15. In that case, the new infrastructure must be compatible 34 with E-85 except for one section of the infrastructure 35 -5- LSB 6315XC (3) 90 da/ns 5/ 6

S.F. _____ extending from the shear valve through to the dispenser 1 breakaway. Until July 1, 2025, the infrastructure section 2 must be compatible with E-15; from July 1, 2025, until July 3 1, 2030, the section of the infrastructure must be compatible 4 with ethanol blended gasoline classified as E-40; and on and 5 after July 1, 2030, the section of the infrastructure must be 6 compatible with E-85, meaning compatibility throughout the 7 entire system. 8 BILL’S PROVISIONS —— EFFECTIVE DATE. The bill takes effect 9 upon enactment. 10 -6- LSB 6315XC (3) 90 da/ns 6/ 6