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 (4) 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 -1- SF 2344 (4) 85 da/nh/jh 1/ 7
S.F. 2344 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 -2- SF 2344 (4) 85 da/nh/jh 2/ 7
S.F. 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 -3- SF 2344 (4) 85 da/nh/jh 3/ 7
S.F. 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 -4- SF 2344 (4) 85 da/nh/jh 4/ 7
S.F. 2344 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 -5- SF 2344 (4) 85 da/nh/jh 5/ 7
S.F. 2344 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 -6- SF 2344 (4) 85 da/nh/jh 6/ 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