Senate
File
2344
-
Reprinted
SENATE
FILE
2344
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SF
2333)
(As
Amended
and
Passed
by
the
Senate
April
1,
2014
)
A
BILL
FOR
An
Act
relating
to
renewable
fuels,
by
providing
for
biobutanol
1
and
biobutanol
blended
gasoline,
modifying
the
rate
of
2
the
E-15
plus
gasoline
promotion
tax
credit
and
extending
3
provisions
for
renewable
fuel
tax
credits
and
a
biodiesel
4
production
refund,
and
including
effective
date
and
5
retroactive
applicability
provisions.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
7
SF
2344
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85
da/nh/jh
S.F.
2344
DIVISION
I
1
BIOBUTANOL
AND
BIOBUTANOL
BLENDED
GASOLINE
2
Section
1.
Section
159A.2,
subsection
1,
Code
2014,
is
3
amended
to
read
as
follows:
4
1.
“Biodiesel”
and
“Biobutanol”
,
“biobutanol
blended
5
gasoline”
,
“biodiesel”
,
“biodiesel
blended
fuel”
,
“ethanol”
,
6
“ethanol
blended
gasoline”
,
and
“renewable
fuel”
mean
the
same
7
as
defined
in
section
214A.1
.
8
Sec.
2.
Section
159A.2,
subsections
5
and
8,
Code
2014,
are
9
amended
by
striking
the
subsections.
10
Sec.
3.
Section
159A.3,
subsection
3,
paragraph
a,
Code
11
2014,
is
amended
to
read
as
follows:
12
a.
A
chief
purpose
of
the
office
is
to
further
the
13
production
and
consumption
of
ethanol
blended
gasoline
and
14
biobutanol
blended
gasoline
in
this
state.
The
office
shall
15
be
the
primary
state
agency
charged
with
the
responsibility
16
to
promote
public
consumption
of
ethanol
blended
gasoline
and
17
biobutanol
blended
gasoline
.
18
Sec.
4.
Section
159A.6,
subsection
1,
paragraph
d,
Code
19
2014,
is
amended
to
read
as
follows:
20
d.
Promote
the
advantages
related
to
the
use
of
coproducts
21
derived
from
the
production
of
renewable
fuels,
including
the
22
use
of
coproducts
used
as
livestock
feed
or
meal.
Promotions
23
shall
be
designed
to
inform
the
potential
purchasers
of
the
24
advantages
associated
with
using
coproducts.
The
office
shall
25
promote
advantages
associated
with
using
coproducts
of
ethanol
26
and
biobutanol
production
as
livestock
feed
or
meal
to
cattle
27
producers
in
this
state.
28
Sec.
5.
Section
214.1,
subsection
1,
Code
2014,
is
amended
29
to
read
as
follows:
30
1.
“Biodiesel”
,
“biodiesel
fuel”
,
“biofuel”
,
“ethanol”
,
31
“motor
fuel”
,
“Motor
fuel”
,
“retail
dealer”
,
“retail
motor
32
fuel
site”
,
and
“wholesale
dealer”
mean
the
same
as
defined
in
33
section
214A.1
.
34
Sec.
6.
Section
214A.1,
Code
2014,
is
amended
by
adding
the
35
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following
new
subsections:
1
NEW
SUBSECTION
.
2A.
“Biobutanol”
means
isobutyl
alcohol
2
that
is
to
be
blended
with
gasoline
if
it
meets
the
standards
3
provided
in
section
214A.2.
4
NEW
SUBSECTION
.
2B.
“Biobutanol
blended
gasoline”
means
a
5
formulation
of
gasoline
which
is
a
liquid
petroleum
product
6
blended
with
biobutanol,
if
the
formulation
meets
the
standards
7
provided
in
section
214A.2.
8
Sec.
7.
Section
214A.1,
subsections
6
and
23,
Code
2014,
are
9
amended
to
read
as
follows:
10
6.
“Biofuel”
means
ethanol,
biobutanol,
or
biodiesel.
11
23.
“Renewable
fuel”
means
a
combustible
liquid
derived
12
from
grain
starch,
oilseed,
animal
fat,
or
other
biomass;
or
13
produced
from
a
biogas
source,
including
any
nonfossilized
14
decaying
organic
matter
which
is
capable
of
powering
machinery,
15
including
but
not
limited
to
an
engine
or
power
plant.
16
Renewable
fuel
includes
but
is
not
limited
to
biofuel,
ethanol
17
blended
gasoline,
biobutanol
blended
gasoline,
or
biodiesel
18
blended
fuel
meeting
the
standards
provided
in
section
214A.2
.
19
Sec.
8.
Section
214A.1,
subsection
32,
unnumbered
paragraph
20
1,
Code
2014,
is
amended
to
read
as
follows:
21
“Unleaded
gasoline”
means
gasoline,
including
ethanol
22
blended
gasoline
or
biobutanol
blended
gasoline
,
if
all
of
the
23
following
applies:
24
Sec.
9.
Section
214A.2,
subsection
1,
Code
2014,
is
amended
25
to
read
as
follows:
26
1.
The
department
shall
adopt
rules
pursuant
to
chapter
27
17A
for
carrying
out
this
chapter
.
The
rules
may
include
but
28
are
not
limited
to
specifications
relating
to
motor
fuel,
29
including
but
not
limited
to
renewable
fuel
such
as
ethanol
30
blended
gasoline,
biobutanol
blended
gasoline,
biodiesel,
31
biodiesel
blended
fuel,
and
motor
fuel
components
such
as
an
32
oxygenate.
In
the
interest
of
uniformity,
the
department
shall
33
adopt
by
reference
other
specifications
relating
to
tests
and
34
standards
for
motor
fuel,
including
renewable
fuel
and
motor
35
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2344
fuel
components,
established
by
the
United
States
environmental
1
protection
agency
and
A.S.T.M.
international.
2
Sec.
10.
Section
214A.2,
subsection
3,
Code
2014,
is
amended
3
by
adding
the
following
new
paragraph:
4
NEW
PARAGRAPH
.
c.
If
the
motor
fuel
is
advertised
for
sale
5
or
sold
as
biobutanol
blended
gasoline,
the
motor
fuel
must
6
comply
with
departmental
standards
which
shall
meet
all
of
the
7
following
requirements:
8
(1)
Biobutanol
must
be
an
agriculturally
derived
isobutyl
9
alcohol
that
meets
A.S.T.M.
international
specification
10
D7862
for
butanol
for
blending
with
gasoline
for
use
as
11
automotive
spark-ignition
engine
fuel,
or
a
successor
A.S.T.M.
12
international
specification,
as
established
by
rules
adopted
13
by
the
department.
14
(2)
Gasoline
blended
with
biobutanol
must
meet
requirements
15
established
by
rules
adopted
in
part
or
in
whole
based
on
16
A.S.T.M.
international
specification
D4814.
17
Sec.
11.
Section
214A.2,
subsection
5,
Code
2014,
is
amended
18
to
read
as
follows:
19
5.
a.
Ethanol
blended
gasoline
shall
be
designated
E-xx
20
where
“xx”
is
the
volume
percent
of
ethanol
in
the
ethanol
21
blended
gasoline
and
biodiesel
.
22
b.
Biobutanol
blended
gasoline
shall
be
designated
23
Bu-xx
where
“xx”
is
the
volume
percent
of
biobutanol
in
the
24
biobutanol
blended
gasoline.
25
c.
Biodiesel
fuel
shall
be
designated
B-xx
where
“xx”
is
the
26
volume
percent
of
biodiesel.
27
Sec.
12.
Section
214A.3,
subsection
2,
paragraph
b,
Code
28
2014,
is
amended
by
adding
the
following
new
subparagraph:
29
NEW
SUBPARAGRAPH
.
(02)
A
person
shall
not
knowingly
falsely
30
advertise
biobutanol
blended
gasoline
by
using
an
inaccurate
31
designation
as
provided
in
section
214A.2.
32
Sec.
13.
Section
214A.5,
subsection
2,
Code
2014,
is
amended
33
to
read
as
follows:
34
2.
A
wholesale
dealer
selling
ethanol
blended
gasoline
,
35
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2344
biobutanol
blended
gasoline,
or
biodiesel
blended
fuel
to
1
a
purchaser
shall
provide
the
purchaser
with
a
statement
2
indicating
its
designation
as
provided
in
section
214A.2
.
The
3
statement
may
be
on
the
sales
slip
provided
in
this
section
4
or
a
similar
document,
including
but
not
limited
to
a
bill
of
5
lading
or
invoice.
6
Sec.
14.
Section
214A.16,
subsection
1,
Code
2014,
is
7
amended
by
adding
the
following
new
paragraph:
8
NEW
PARAGRAPH
.
0d.
If
biobutanol
blended
gasoline
is
sold
9
from
a
motor
fuel
pump,
the
motor
fuel
pump
shall
have
affixed
10
a
decal
identifying
the
biobutanol
blended
gasoline.
11
DIVISION
II
12
E-15
PLUS
GASOLINE
PROMOTION
TAX
CREDIT
13
Sec.
15.
Section
422.11Y,
subsection
4,
paragraph
b,
Code
14
2014,
is
amended
to
read
as
follows:
15
b.
The
designated
rate
of
the
tax
credit
for
the
following
16
three
periods
within
each
calendar
year
is
as
follows:
17
(1)
For
calendar
year
2012,
calendar
year
2013,
and
calendar
18
year
2014
19
(1)
For
the
first
period
beginning
January
1
and
ending
May
20
31
,
three
cents.
21
(2)
For
the
second
period
beginning
June
1
and
ending
22
September
15,
ten
cents.
23
(3)
For
calendar
year
2015,
calendar
year
2016,
and
calendar
24
year
2017
the
third
period
beginning
September
16
and
ending
25
December
31
,
two
three
cents.
26
Sec.
16.
Section
422.11Y,
subsection
9,
Code
2014,
is
27
amended
to
read
as
follows:
28
9.
This
section
is
repealed
on
January
1,
2018
2020
.
29
Sec.
17.
Section
422.33,
subsection
11D,
paragraph
c,
Code
30
2014,
is
amended
to
read
as
follows:
31
c.
This
subsection
is
repealed
on
January
1,
2018
2020
.
32
Sec.
18.
2011
Iowa
Acts,
chapter
113,
section
37,
is
amended
33
to
read
as
follows:
34
SEC.
37.
TAX
CREDIT
AVAILABILITY.
For
a
retail
dealer
who
35
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may
claim
an
E-15
plus
gasoline
promotion
tax
credit
under
1
section
422.11Y
or
422.33,
subsection
11D
,
as
enacted
in
this
2
Act
and
amended
in
subsequent
Acts,
in
calendar
year
2017
3
2019
,
and
whose
tax
year
ends
prior
to
December
31,
2017
2019
,
4
the
retail
dealer
may
continue
to
claim
the
tax
credit
in
the
5
retail
dealer’s
following
tax
year.
In
that
case,
the
tax
6
credit
shall
be
calculated
in
the
same
manner
as
provided
in
7
section
422.11Y
or
422.33,
subsection
11D
,
as
enacted
in
this
8
Act
and
amended
in
subsequent
Acts,
for
the
remaining
period
9
beginning
on
the
first
day
of
the
retail
dealer’s
new
tax
year
10
until
December
31,
2017
2019
.
For
that
remaining
period,
the
11
tax
credit
shall
be
calculated
in
the
same
manner
as
a
retail
12
dealer
whose
tax
year
began
on
the
previous
January
1
and
who
13
is
calculating
the
tax
credit
on
December
31,
2017
2019
.
14
Sec.
19.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
15
deemed
of
immediate
importance,
takes
effect
upon
enactment.
16
Sec.
20.
RETROACTIVE
APPLICABILITY.
Section
422.11Y,
17
as
amended
in
this
division
of
this
Act,
and
section
422.33,
18
subsection
11D,
as
applied
through
section
422.11Y,
as
amended
19
in
this
division
of
this
Act,
apply
retroactively
to
tax
years
20
beginning
on
and
after
January
1,
2014.
21
DIVISION
III
22
E-85
GASOLINE
PROMOTION
TAX
CREDIT
23
Sec.
21.
Section
422.11O,
subsection
8,
Code
2014,
is
24
amended
to
read
as
follows:
25
8.
This
section
is
repealed
on
January
1,
2018
2020
.
26
Sec.
22.
Section
422.33,
subsection
11B,
paragraph
c,
Code
27
2014,
is
amended
to
read
as
follows:
28
c.
This
subsection
is
repealed
on
January
1,
2018
2020
.
29
Sec.
23.
2006
Iowa
Acts,
chapter
1142,
section
49,
30
subsection
3,
as
amended
in
2011
Iowa
Acts,
chapter
113,
31
section
20,
is
amended
to
read
as
follows:
32
3.
For
a
retail
dealer
who
may
claim
an
E-85
gasoline
33
promotion
tax
credit
under
section
422.11O
or
422.33,
34
subsection
11B
,
as
enacted
in
this
Act
and
amended
in
35
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subsequent
Acts,
in
calendar
year
2017
2019
and
whose
tax
1
year
ends
prior
to
December
31,
2017
2019
,
the
retail
dealer
2
may
continue
to
claim
the
tax
credit
in
the
retail
dealer’s
3
following
tax
year.
In
that
case,
the
tax
credit
shall
be
4
calculated
in
the
same
manner
as
provided
in
section
422.11O
5
or
422.33,
subsection
11B
,
as
enacted
in
this
Act
and
amended
6
in
subsequent
Acts,
for
the
remaining
period
beginning
on
the
7
first
day
of
the
retail
dealer’s
new
tax
year
until
December
8
31,
2017
2019
.
For
that
remaining
period,
the
tax
credit
shall
9
be
calculated
in
the
same
manner
as
a
retail
dealer
whose
tax
10
year
began
on
the
previous
January
1
and
who
is
calculating
the
11
tax
credit
on
December
31,
2017
2019
.
12
DIVISION
IV
13
BIODIESEL
BLENDED
FUEL
TAX
CREDIT
14
Sec.
24.
Section
422.11P,
subsection
8,
Code
2014,
is
15
amended
to
read
as
follows:
16
8.
This
section
is
repealed
January
1,
2018
2020
.
17
Sec.
25.
Section
422.33,
subsection
11C,
paragraph
c,
Code
18
2014,
is
amended
to
read
as
follows:
19
c.
This
subsection
is
repealed
on
January
1,
2018
2020
.
20
Sec.
26.
2011
Iowa
Acts,
chapter
113,
section
31,
is
amended
21
to
read
as
follows:
22
SEC.
31.
TAX
CREDIT
AVAILABILITY.
For
a
retail
dealer
23
who
may
claim
a
biodiesel
blended
fuel
promotion
tax
credit
24
under
section
422.11P
or
422.33,
subsection
11C
,
as
amended
25
in
this
Act
and
amended
in
subsequent
Acts,
in
calendar
year
26
2017
2019
,
and
whose
tax
year
ends
prior
to
December
31,
2017
27
2019
,
the
retail
dealer
may
continue
to
claim
the
tax
credit
in
28
the
retail
dealer’s
following
tax
year.
In
that
case,
the
tax
29
credit
shall
be
calculated
in
the
same
manner
as
provided
in
30
section
422.11P
or
422.33,
subsection
11C
,
as
amended
in
this
31
Act
and
amended
in
subsequent
Acts,
for
the
remaining
period
32
beginning
on
the
first
day
of
the
retail
dealer’s
new
tax
year
33
until
December
31,
2017
2019
.
For
that
remaining
period,
the
34
tax
credit
shall
be
calculated
in
the
same
manner
as
a
retail
35
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85
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7
S.F.
2344
dealer
whose
tax
year
began
on
the
previous
January
1
and
who
1
is
calculating
the
tax
credit
on
December
31,
2017
2019
.
2
DIVISION
V
3
BIODIESEL
PRODUCTION
REFUND
4
Sec.
27.
Section
423.4,
subsection
9,
paragraphs
b
and
e,
5
Code
2014,
are
amended
to
read
as
follows:
6
b.
The
amount
of
the
refund
shall
be
calculated
by
7
multiplying
a
designated
rate
by
the
total
number
of
gallons
8
of
biodiesel
produced
by
the
biodiesel
producer
in
this
state
9
during
each
quarter
of
a
calendar
year.
The
designated
rate
10
shall
be
as
follows
:
11
(1)
For
the
calendar
year
2012,
three
cents.
12
(2)
For
the
calendar
year
2013,
two
and
one-half
cents.
13
(3)
For
the
calendar
year
2014,
two
cents.
14
e.
This
subsection
is
repealed
on
January
1,
2015
2020
.
15
-7-
SF
2344
(4)
85
da/nh/jh
7/
7