House File 2128 - Reprinted HOUSE FILE 2128 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HSB 594) (As Amended and Passed by the House February 2, 2022 ) 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 HF 2128 (3) 89 da/ns/md

H.F. 2128 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 35 -1- HF 2128 (3) 89 da/ns/md 1/ 43

H.F. 2128 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 dispenser that is part of a commercial marina. 22 3. a. A retail dealer is not in violation of this section 23 during any period of noncompliance with the E-15 access 24 standard caused by an excusable event. An excusable event is 25 limited to any of the following: 26 (1) The maintenance, repair, or reconditioning of motor 27 fuel storage and dispensing infrastructure. 28 (2) The installation, expansion, replacement, or conversion 29 of motor fuel storage and dispensing infrastructure. 30 b. The department may require that a retail dealer 31 notify the department that an excusable event as described 32 in paragraph “a” is planned to occur, is occurring, or has 33 occurred. The department may inspect the applicable retail 34 motor fuel site to determine whether the noncompliance is 35 -2- HF 2128 (3) 89 da/ns/md 2/ 43

H.F. 2128 caused by an excusable event. 1 4. a. This section shall be implemented on January 1, 2023. 2 b. This subsection is repealed January 2, 2023. 3 Sec. 3. NEW SECTION . 214A.33 Suspension of E-15 access 4 standard by order issued by governor. 5 1. The governor may issue or renew an executive order that 6 temporarily suspends the requirement in section 214A.32 that a 7 retail dealer comply with the E-15 access standard at a retail 8 motor fuel site owned or operated by the retail dealer. 9 2. The E-15 access standard suspension order as described in 10 subsection 1 must be supported by the governor’s determination 11 that any of the following apply: 12 a. There is an inadequate supply of E-15 gasoline. 13 b. The market price of E-15 gasoline may cause consumers to 14 suffer economic hardship. 15 c. Existing motor fuel storage and dispensing infrastructure 16 is not capable of storing and dispensing E-15 gasoline. 17 3. The governor may issue or renew an executive order under 18 this section on a statewide or regional basis. 19 4. The E-15 access standard suspension order shall take 20 effect on its date of publication in the Iowa administrative 21 bulletin, unless the order specifies a later date. The order 22 shall expire one year from its effective date unless a shorter 23 period is stated in the order. The early expiration of the 24 order may also occur based on circumstances described in the 25 order. 26 5. a. This section shall be implemented on January 1, 2023. 27 b. This subsection is repealed January 2, 2023. 28 Sec. 4. NEW SECTION . 214A.34 Waiver of E-15 access 29 standard by order issued by secretary of agriculture —— E-15 30 unavailability. 31 1. The secretary of agriculture may issue an administrative 32 order that temporarily waives the requirement in section 33 214A.32 that a retail dealer comply with the E-15 access 34 standard at a retail motor fuel site owned or operated by the 35 -3- HF 2128 (3) 89 da/ns/md 3/ 43

H.F. 2128 retail dealer based on E-15 gasoline availability. 1 2. A retail dealer may apply for an E-15 unavailability 2 waiver order as described in subsection 1 by submitting an 3 application to the department in a manner and according to 4 procedures required by the department. 5 a. The application must be supported by credible evidence 6 that the retail dealer has not been able to reasonably obtain 7 E-15 gasoline to be advertised for sale and sold at the retail 8 dealer’s retail motor fuel site. 9 b. The retail dealer must sign the application which shall 10 include a statement that the retail dealer swears and affirms 11 that all information in the application completed by the retail 12 dealer is true and correct. 13 3. The department shall publish a copy of the E-15 14 unavailability waiver order on the department’s internet site 15 within ten days after the order’s issuance. 16 4. The E-15 unavailability waiver order shall take effect 17 on its date of publication on the department’s internet site, 18 unless the order specifies a later date. The order shall 19 expire six months from its effective date unless a shorter 20 period is stated in the order. The early expiration of the 21 order may also occur based on circumstances described in the 22 order. 23 5. a. This section shall be implemented on January 1, 2023. 24 b. This subsection is repealed January 2, 2023. 25 Sec. 5. NEW SECTION . 214A.35 Waiver of E-15 access standard 26 by order issued by secretary of agriculture —— E-15 incompatible 27 infrastructure. 28 1. The secretary of agriculture shall issue an 29 administrative order that temporarily waives the requirement 30 in section 214A.32 that a retail dealer comply with the E-15 31 access standard at a retail motor fuel site owned or operated 32 by the retail dealer, if the retail motor fuel site qualifies 33 under this section based on the incompatibility of the motor 34 fuel storage and dispensing infrastructure to store and 35 -4- HF 2128 (3) 89 da/ns/md 4/ 43

H.F. 2128 dispense E-15 gasoline. 1 2. A retail dealer may apply for an E-15 incompatible 2 infrastructure waiver order as described in subsection 1 by 3 submitting an application to the department in a manner and 4 according to procedures required by the department. 5 a. The application must be supported by credible evidence 6 that the retail dealer is unable to comply with the E-15 7 access standard because the motor fuel storage and dispensing 8 infrastructure located at the retail motor fuel site is not 9 compatible with the use of E-15 gasoline and that the retail 10 dealer is eligible for a class 1 or class 2 waiver as provided 11 in this section. 12 b. The application must provide information required to 13 be completed by the retail dealer, which must include an 14 inventory and description of motor fuel storage and dispensing 15 infrastructure located at the retail motor fuel site. 16 c. The department may require a retail dealer to attach any 17 supporting documentation to the application, which may include 18 an inspection report completed by a person certified by the 19 department as a professional retail motor fuel site installer. 20 The certified professional retail motor fuel site installer 21 may be a licensed engineer or other person who the department 22 determines is qualified by education, testing, or experience to 23 oversee a project involving the installation, replacement, or 24 conversion of motor fuel storage and dispensing infrastructure, 25 and who is able to provide a reliable estimate of the project’s 26 costs. 27 d. The department shall review and evaluate an application 28 to determine whether it is supported by credible evidence 29 sufficient for the secretary to issue an order granting a 30 waiver under this section. The department shall approve or 31 disapprove a completed application within one hundred twenty 32 days following the date that the application was delivered to 33 the department for filing. 34 e. The retail dealer must sign the application which shall 35 -5- HF 2128 (3) 89 da/ns/md 5/ 43

H.F. 2128 include a statement that the retail dealer swears and affirms 1 that all information in the application completed by the retail 2 dealer is true and correct. If a certified professional retail 3 motor fuel site installer completes an inspection report to 4 support an application, the installer shall sign a statement 5 that the installer swears and affirms that all information in 6 the inspection report completed by the installer is true and 7 correct. 8 f. The department may inspect the premises of a retail 9 motor fuel site during normal business hours to administer and 10 enforce the provisions of this section. 11 g. The department of agriculture and land stewardship 12 may cooperate with the department of natural resources and 13 the state fire marshal in administering and enforcing the 14 provisions of this section. 15 3. The department shall publish a copy of the E-15 16 incompatible infrastructure waiver order on the department’s 17 internet site within ten days after the order’s issuance. The 18 order shall take effect on its date of publication, unless the 19 order specifies a later date. 20 4. a. The secretary of agriculture shall terminate the 21 E-15 incompatible infrastructure waiver order if a terminable 22 event has occurred. A terminable event is limited to any of 23 the following: 24 (1) The failure of a retail dealer to be licensed as 25 required under section 214.2 to use a commercial weighing and 26 measuring device when dispensing gasoline. 27 (2) The cessation of the retail dealer’s business of 28 advertising for sale or selling gasoline at the retail motor 29 fuel site. 30 (3) The installation, replacement, or conversion of a motor 31 fuel storage tank located at the retail motor fuel site. 32 b. The department may require that a retail dealer 33 notify the department that a terminable event as described 34 in paragraph “a” is planned to occur, is occurring, or has 35 -6- HF 2128 (3) 89 da/ns/md 6/ 43

H.F. 2128 occurred. 1 5. a. The secretary of agriculture shall issue an E-15 2 incompatible infrastructure class 1 waiver order as provided in 3 this subsection. If the department determines an inspection of 4 the retail motor fuel site is necessary, it may either conduct 5 the inspection or accept an inspection report completed by a 6 certified professional retail motor fuel site installer. 7 b. The order must be supported by credible evidence that 8 all motor fuel storage tanks used to store gasoline that are 9 located at the retail motor fuel site fall within any of the 10 following categories: 11 (1) Each motor fuel storage tank not constructed of 12 fiberglass was installed during or prior to 1985. 13 (2) Each motor fuel storage tank constructed of fiberglass 14 was installed during or prior to the following years: 15 (a) For a double-wall fiberglass underground motor fuel 16 storage tank, 1991. 17 (b) For a single-wall fiberglass underground motor fuel 18 storage tank, 1996. 19 6. The secretary of agriculture shall issue an E-15 20 incompatible infrastructure class 2 waiver order as provided 21 in this subsection. The order shall be based on an inspection 22 of the retail motor fuel site. The department may file and 23 review a completed inspection report submitted by a certified 24 professional retail motor fuel site installer. 25 a. The inspection report must be supported by credible 26 evidence and include all of the following: 27 (1) A completed checklist of items adopted as part of a form 28 used by the department to confirm that the motor fuel storage 29 and dispensing infrastructure located at the retail motor fuel 30 site is not compatible with E-15 gasoline. 31 (2) The total estimated cost of improving the retail 32 motor fuel site to comply with the E-15 access standard by 33 installing, replacing, or converting the motor fuel storage 34 and dispensing infrastructure located at the retail motor fuel 35 -7- HF 2128 (3) 89 da/ns/md 7/ 43

H.F. 2128 site. 1 b. (1) The department shall determine whether to issue an 2 E-15 incompatible infrastructure class 2 waiver order based 3 on an eligibility assessment which shall calculate all of the 4 following: 5 (a) The total estimated cost of improvement which equals the 6 total estimated cost of improving the retail motor fuel site to 7 comply with the E-15 access standard based on the department’s 8 analysis of the inspection report described in paragraph “a” . 9 The total estimated cost of improvement shall only include 10 costs used to calculate the amount of financial incentives 11 that may be awarded by the renewable fuel infrastructure 12 board to a retail dealer participating in the renewable fuel 13 infrastructure program for retail motor fuel sites as provided 14 in section 159A.14. 15 (b) The E-15 infrastructure base amount which equals the 16 maximum cost necessary to be incurred by the retail dealer 17 in order to receive the total amount of standard financial 18 incentives that could be awarded to the retail dealer under the 19 renewable fuel infrastructure program for retail motor fuel 20 sites as provided in section 159A.14 in order to comply with 21 the E-15 access standard. The department’s calculation shall 22 not include any of the following: 23 (i) The amount of any prior financial incentives awarded 24 to the retail dealer under the renewable fuel infrastructure 25 program for retail motor fuel sites. 26 (ii) Whether the retail dealer is applying for or may be 27 awarded any future financial incentives under the renewable 28 fuel infrastructure program for retail motor fuel sites. 29 (2) A retail dealer is only eligible to be issued an 30 E-15 incompatible infrastructure class 2 waiver order if 31 the department determines that the total estimated cost of 32 improvement as described in subparagraph (1), subparagraph 33 division (a), exceeds the E-15 infrastructure base amount as 34 described in subparagraph (1), subparagraph division (b). 35 -8- HF 2128 (3) 89 da/ns/md 8/ 43

H.F. 2128 7. a. This section shall be implemented on January 1, 2023. 1 b. This subsection is repealed January 2, 2023. 2 8. This section is repealed January 1, 2041. 3 Sec. 6. NEW SECTION . 214A.36 Disciplinary action. 4 1. The department may refuse to issue or renew and may 5 suspend or revoke a license issued to a retail dealer pursuant 6 to section 214.2 for not complying with the E-15 access 7 standard as provided in section 214A.32, including rules 8 adopted by the department pursuant to section 214A.1A to 9 administer or enforce that section. 10 2. a. This section shall be implemented on January 1, 2023. 11 b. This subsection is repealed January 2, 2023. 12 Sec. 7. ISSUANCE OF ORDERS SUSPENDING OR WAIVING E-15 ACCESS 13 STANDARD. 14 1. The governor may issue an E-15 access standard suspension 15 order as provided in section 214A.33, as enacted in this part 16 of this division of this Act, prior to January 1, 2023, if the 17 governor determines it is necessary to issue the order prior 18 to that date. 19 2. The secretary of agriculture may issue an E-15 20 unavailability waiver order as provided in section 214A.34, as 21 enacted in this part of this division of this Act, prior to 22 January 1, 2023, if the secretary determines it is necessary to 23 issue the order prior to that date. 24 3. The secretary of agriculture may issue an E-15 25 incompatible infrastructure waiver order as provided in section 26 214A.35, as enacted in this part of this division of this Act, 27 prior to January 1, 2023, if the secretary determines it is 28 necessary to issue the order prior to that date. 29 Sec. 8. ADOPTION OF RULES IMPLEMENTING E-15 ACCESS STANDARD 30 AND E-15 INCOMPATIBLE INFRASTRUCTURE WAIVER ORDER. 31 1. The department of agriculture and land stewardship 32 shall adopt rules pursuant to chapter 17A prior to January 1, 33 2023, as necessary to administer and enforce the E-15 access 34 standard, as provided in section 214A.32, as enacted in this 35 -9- HF 2128 (3) 89 da/ns/md 9/ 43

H.F. 2128 part of this division of this Act. 1 2. The department of agriculture and land stewardship shall 2 adopt rules pursuant to chapter 17A prior to January 1, 2023, 3 as necessary to administer and enforce an E-15 incompatible 4 infrastructure waiver order, as provided in section 214A.35, as 5 enacted in this part of this division of this Act. 6 PART B 7 RELATED RENEWABLE FUELS AND INFRASTRUCTURE PROVISIONS 8 Sec. 9. Section 159A.6, subsection 1, paragraph c, Code 9 2022, is amended by striking the paragraph. 10 Sec. 10. Section 214.1, Code 2022, is amended by adding the 11 following new subsections: 12 NEW SUBSECTION . 1A. “Department” means the department of 13 agriculture and land stewardship. 14 NEW SUBSECTION . 1B. “E-15 gasoline” or “E-15” means the 15 same as defined in section 214A.1. 16 NEW SUBSECTION . 3A. “Motor fuel dispenser” or “dispenser” 17 means equipment that is the part of motor fuel storage 18 and dispensing infrastructure that includes mechanical or 19 electrical systems that operate a motor fuel pump dispensing 20 motor fuel from a motor fuel storage tank to the end point of 21 the equipment’s nozzle. 22 NEW SUBSECTION . 4A. a. “Motor fuel storage and dispensing 23 infrastructure” or “infrastructure” means equipment used to do 24 any of the following: 25 (1) Store and dispense motor fuel. 26 (2) Store, blend, and dispense motor fuel. 27 b. “Motor fuel storage and dispensing infrastructure” or 28 “infrastructure” includes but is not limited to a motor fuel 29 storage tank, motor fuel pump or motor fuel blender pump, motor 30 fuel dispenser, and associated pipes, hoses, nozzles, tubes, 31 lines, fittings, valves, filters, seals, and covers. 32 Sec. 11. Section 214.1, subsections 3, 4, and 5, Code 2022, 33 are amended to read as follows: 34 3. “Motor fuel blender pump” or “blender pump” means a motor 35 -10- HF 2128 (3) 89 da/ns/md 10/ 43

H.F. 2128 fuel meter pump that measures and dispenses a type of motor 1 fuel that is blended from to formulate two or more different 2 types classifications of that motor fuels and which may 3 dispense more than one type of blended motor fuel. 4 4. “Motor fuel pump” means the part of motor fuel storage 5 and dispensing infrastructure that is a meter or similar 6 commercial weighing and measuring device used to measure and 7 dispense motor fuel originating from a motor fuel storage tank, 8 on a retail basis. 9 5. “Motor fuel storage tank” or “storage tank” means the part 10 of motor fuel storage and dispensing infrastructure that is an 11 aboveground or belowground container that is constituting a 12 fixture used to store an accumulation of motor fuel. 13 Sec. 12. Section 214.9, Code 2022, is amended to read as 14 follows: 15 214.9 Self-service motor fuel pumps dispensers . 16 A self-service motor fuel dispenser operating a motor fuel 17 pump located at a retail motor fuel site may be equipped with 18 an automatic latch-open device on the fuel dispensing hose 19 nozzle only if the nozzle valve is the automatic closing type. 20 Sec. 13. NEW SECTION . 214.12 Inspections of motor fuel 21 dispensers —— E-15 access standard. 22 1. In conducting an inspection under section 214.11, an 23 inspector for the department shall determine if a retail dealer 24 is advertising for sale and selling E-15 gasoline at a retail 25 motor fuel site in compliance with the E-15 access standard as 26 provided in section 214A.32. 27 2. a. This section shall be implemented on January 1, 2023. 28 b. This subsection is repealed January 2, 2023. 29 Sec. 14. Section 214A.1, Code 2022, is amended by adding the 30 following new subsections: 31 NEW SUBSECTION . 2A. “B-20 biodiesel fuel” or “B-20” means 32 a classification of biodiesel blended fuel formulated with a 33 percentage of twenty percent by volume of biodiesel, if the 34 formulation meets the standards provided in section 214A.2. 35 -11- HF 2128 (3) 89 da/ns/md 11/ 43

H.F. 2128 NEW SUBSECTION . 12A. “E-15 gasoline” or “E-15” means a 1 classification of ethanol blended gasoline formulated with a 2 percentage of fifteen percent by volume of ethanol, if the 3 formulation meets the standards provided in section 214A.2. 4 NEW SUBSECTION . 18A. “Motor fuel dispenser” or “dispenser” 5 means the same as defined in section 214.1. 6 NEW SUBSECTION . 19A. “Motor fuel storage and dispensing 7 infrastructure” or “infrastructure” means the same as defined 8 in section 214.1. 9 Sec. 15. NEW SECTION . 214A.1A Rules. 10 The department shall adopt rules necessary to administer and 11 enforce this chapter in conjunction with chapter 214. 12 Sec. 16. Section 214A.2, subsection 1, Code 2022, is amended 13 to read as follows: 14 1. The department shall adopt rules pursuant to chapter 15 17A for carrying out this chapter . The rules may include but 16 are not limited to specifications section 214A.1A relating 17 to standards and classifications for types of motor fuel, 18 including but not limited to gasoline and diesel fuel. The 19 rules shall provide standards and classifications for a 20 renewable fuel such as ethanol blended gasoline, biobutanol 21 blended gasoline, biodiesel, biodiesel blended fuel, and 22 motor renewable fuel components such as an a biofuel or other 23 oxygenate. In the interest of uniformity, the department shall 24 adopt by reference other specifications standards relating to 25 tests and standards specifications for types of motor fuel, 26 including renewable fuel and motor fuel components, established 27 by the United States environmental protection agency and 28 A.S.T.M. international. 29 Sec. 17. Section 214A.2, subsection 4, paragraph b, Code 30 2022, is amended by adding the following new subparagraph: 31 NEW SUBPARAGRAPH . (5) (a) Biodiesel blended fuel 32 classified as higher than B-20 must conform to standards 33 adopted by the department. 34 (b) The rules adopted by the department of agriculture 35 -12- HF 2128 (3) 89 da/ns/md 12/ 43

H.F. 2128 and land stewardship establishing standards for biodiesel 1 blended fuel classified as higher than B-20 shall take effect 2 not earlier than sixty days after the date of filing in 3 accordance with section 17A.5, subsection 2, paragraph “a” . The 4 department of agriculture and land stewardship shall notify 5 the legislative services agency, the governor, the department 6 of natural resources, and the department of revenue of the 7 effective date of the rules at least thirty days prior to the 8 effective date of the rules. 9 Sec. 18. Section 214A.3, subsection 2, paragraph b, 10 subparagraph (1), Code 2022, is amended by striking the 11 subparagraph and inserting in lieu thereof the following: 12 (1) A person shall not knowingly falsely advertise ethanol 13 blended gasoline by using an inaccurate classification as 14 provided in section 214A.2. 15 Sec. 19. Section 214A.3, subsection 2, paragraph b, 16 subparagraphs (2) and (3), Code 2022, are amended to read as 17 follows: 18 (2) A person shall not knowingly falsely advertise 19 biobutanol blended gasoline by using an inaccurate designation 20 classification as provided in section 214A.2 . 21 (3) A person shall not knowingly falsely advertise 22 biodiesel blended fuel by using an inaccurate designation 23 classification as provided in section 214A.2 . 24 Sec. 20. Section 214A.8, Code 2022, is amended to read as 25 follows: 26 214A.8 Prohibition. 27 A dealer shall not knowingly sell motor fuel or biofuel 28 in the state that fails to meet applicable standards and 29 classifications as provided in section 214A.2 . 30 Sec. 21. Section 214A.11, subsection 2, Code 2022, is 31 amended by adding the following new paragraphs: 32 NEW PARAGRAPH . c. (1) A retail dealer who submits 33 an application for an E-15 unavailability waiver order 34 under section 214A.34 that the retail dealer knows includes 35 -13- HF 2128 (3) 89 da/ns/md 13/ 43

H.F. 2128 information that is not true and correct commits perjury as 1 provided in section 720.2. 2 (2) (a) This paragraph “c” shall be implemented on January 3 1, 2023. 4 (b) This subparagraph is repealed January 2, 2023. 5 NEW PARAGRAPH . d. (1) A retail dealer who submits an 6 application for an E-15 incompatible infrastructure waiver 7 order under section 214A.35 that the retail dealer knows is not 8 true and correct commits perjury as provided in section 720.2. 9 (2) A certified professional retail motor fuel site 10 installer who submits an inspection report as part of an 11 application for an E-15 incompatible infrastructure waiver 12 order under section 214A.35 that the installer knows is not 13 true and correct commits perjury under section 720.2. 14 (3) (a) This paragraph “d” shall be implemented on January 15 1, 2023. 16 (b) This subparagraph is repealed on January 2, 2023. 17 Sec. 22. Section 214A.20, Code 2022, is amended to read as 18 follows: 19 214A.20 Limitation on liability. 20 1. A retail dealer or other marketer, pipeline company, 21 refiner, terminal operator, or terminal owner is not liable for 22 damages caused by the use of incompatible motor fuel dispensed 23 from a motor fuel dispenser located at the retail dealer’s 24 retail motor fuel site, if all of the following apply: 25 a. The incompatible motor fuel complies with the 26 specifications standards for a that type and classification of 27 motor fuel as provided in section 214A.2 . 28 b. The incompatible motor fuel is selected by the end use 29 consumer of the motor fuel. 30 c. The incompatible motor fuel is dispensed from a motor 31 fuel pump dispenser that correctly labels the type and 32 classification of fuel dispensed from a motor fuel storage 33 tank . 34 2. For purposes of this section subsection 1 , a motor fuel 35 -14- HF 2128 (3) 89 da/ns/md 14/ 43

H.F. 2128 is incompatible with a motor according to the manufacturer of 1 the motor. 2 Sec. 23. REPEAL. Section 214A.16, Code 2022, is repealed. 3 PART C 4 CODE ORGANIZATION 5 Sec. 24. DIRECTIONS TO THE CODE EDITOR —— TRANSFERS. 6 1. The Code editor is directed to make the following 7 transfers: 8 a. Section 214A.3, as amended in this division of this Act, 9 to section 214A.21. 10 b. Section 214A.7 to section 214A.22. 11 c. Section 214A.8, as amended in this division of this Act, 12 to section 214A.23. 13 d. Section 214A.19 to section 214A.24. 14 e. Section 214A.20, as amended in this division of this Act, 15 to section 214A.25. 16 2. The Code editor shall correct internal references in the 17 Code and in any enacted legislation as necessary due to the 18 enactment of this section. 19 Sec. 25. DIRECTIONS TO THE CODE EDITOR —— SUBCHAPTERS. The 20 Code editor is directed to divide the provisions of chapter 21 214A, as amended, enacted, or transferred in this division of 22 this Act, into subchapters as follows: 23 1. Subchapter I, including sections 214A.1 through 214A.20. 24 2. Subchapter II, including sections 214A.21 through 25 214A.30. 26 3. Subchapter III, including sections 214A.31 through 27 214A.36. 28 DIVISION II 29 COMPLIANCE REQUIREMENTS —— RENEWABLE FUEL INFRASTRUCTURE 30 PART A 31 PRINCIPAL PROVISIONS 32 Sec. 26. NEW SECTION . 455G.2A Standards and classifications 33 of motor fuel. 34 For purposes of this chapter, motor fuel must meet the 35 -15- HF 2128 (3) 89 da/ns/md 15/ 43

H.F. 2128 standards and classifications as provided in section 214A.2. 1 Sec. 27. NEW SECTION . 455G.30 Definitions. 2 As used in this subchapter, unless the context otherwise 3 requires: 4 1. “Biodiesel blended fuel” means the same as defined in 5 section 214A.1. 6 2. “Department” means the department of natural resources. 7 3. “Diesel fuel” means the same as defined in section 8 214A.1. 9 4. “Diesel fuel storage and dispensing infrastructure” or 10 “diesel infrastructure” means motor fuel storage and dispensing 11 infrastructure as defined in section 214.1 used to store and 12 dispense diesel fuel, including biodiesel blended diesel fuel, 13 at a retail motor fuel site as defined in section 214A.1. 14 5. “Ethanol blended gasoline” means the same as defined in 15 section 214A.1. 16 6. “Gasoline storage and dispensing infrastructure” 17 or “gasoline infrastructure” means motor fuel storage and 18 dispensing infrastructure as defined in section 214.1 used 19 to store and dispense gasoline, including ethanol blended 20 gasoline, at a retail motor fuel site as defined in section 21 214A.1. 22 7. “Retail dealer” means the same as defined in section 23 214A.1. 24 Sec. 28. Section 455G.31, subsections 1 and 3, Code 2022, 25 are amended by striking the subsections. 26 Sec. 29. Section 455G.31, subsection 2, Code 2022, is 27 amended to read as follows: 28 2. A Subject to section 455G.32, a retail dealer may 29 use gasoline storage and dispensing infrastructure to store 30 and dispense ethanol blended gasoline classified as E-9 31 E-10 or higher if the department of natural resources under 32 this subchapter or the state fire marshal under chapter 101 33 determines that it the gasoline infrastructure is compatible 34 with the classification of ethanol blended gasoline being used. 35 -16- HF 2128 (3) 89 da/ns/md 16/ 43

H.F. 2128 Sec. 30. NEW SECTION . 455G.32 E-85 gasoline compatible 1 infrastructure —— compliance requirement. 2 1. A retail dealer shall not install, replace, or convert 3 gasoline storage and dispensing infrastructure used to store 4 and dispense ethanol blended gasoline classified as E-15 or 5 higher, unless the installed, replaced, or converted gasoline 6 infrastructure is capable of storing and dispensing ethanol 7 blended gasoline classified as E-85. 8 2. The infrastructure must be all of the following: 9 a. Listed as compatible for use with ethanol blended 10 gasoline classified as E-85 by an independent testing 11 laboratory or as approved by the manufacturer. 12 b. Approved by the department or state fire marshal subject 13 to conditions determined necessary by the department or state 14 fire marshal. The department or state fire marshal may waive 15 the requirement in paragraph “a” upon satisfaction that a 16 substitute requirement serves the same purpose. 17 Sec. 31. NEW SECTION . 455G.33 B-20 diesel fuel compatible 18 infrastructure —— compliance requirement. 19 1. A retail dealer shall not install, replace, or convert 20 diesel fuel storage and dispensing infrastructure unless the 21 installed, replaced, or converted diesel fuel infrastructure 22 is capable of storing and dispensing biodiesel blended fuel 23 classified as B-20 or higher. 24 2. The infrastructure must be all of the following: 25 a. Listed as compatible for use with biodiesel blended 26 fuel classified as B-20 or higher by an independent testing 27 laboratory or as approved by the manufacturer. 28 b. Approved by the department or state fire marshal subject 29 to conditions determined necessary by the department or state 30 fire marshal. The department or state fire marshal may waive 31 the requirement in paragraph “a” upon satisfaction that a 32 substitute requirement serves the same purpose. 33 Sec. 32. EFFECTIVE DATE. This part of this division of this 34 Act takes effect January 1, 2023. 35 -17- HF 2128 (3) 89 da/ns/md 17/ 43

H.F. 2128 PART B 1 IMPLEMENTATION 2 Sec. 33. ADMINISTRATIVE RULES. The department of natural 3 resources and the state fire marshal may adopt rules under 4 chapter 17A prior to the effective date of part A of this 5 division of this Act, which rules shall take effect January 1, 6 2023. 7 DIVISION III 8 COMPLIANCE REQUIREMENTS —— QUALIFIED RENEWABLE FUEL USE BY 9 STATE MOTOR VEHICLES 10 Sec. 34. NEW SECTION . 8A.360 Special definitions. 11 As used in this part, unless the context otherwise requires: 12 1. “Biodiesel blended fuel” means the same as defined in 13 section 214A.1. 14 2. “Biofuel” means the same as defined in section 214A.1. 15 3. “Determination period” means any twelve-month period 16 beginning January 1 and ending December 31. 17 4. “Ethanol blended gasoline” means the same as defined in 18 section 214A.1. 19 5. “Qualified renewable fuel” means ethanol blended 20 gasoline or biodiesel blended fuel that meets the standards 21 and classifications for that type of motor fuel as provided in 22 section 214A.2. 23 Sec. 35. NEW SECTION . 8A.360A Classification of qualified 24 renewable fuels. 25 For purposes of this part, a qualified renewable fuel must 26 meet the same standards and classifications as provided in 27 section 214A.2. 28 Sec. 36. Section 8A.362, subsection 3, paragraph b, Code 29 2022, is amended by striking the paragraph and inserting in 30 lieu thereof the following: 31 b. The director shall provide for the purchase and operation 32 of motor vehicles using qualified renewable fuels and for the 33 purchase of qualified renewable fuels used to operate those 34 motor vehicles as provided in section 8A.368. 35 -18- HF 2128 (3) 89 da/ns/md 18/ 43

H.F. 2128 Sec. 37. NEW SECTION . 8A.368 Motor vehicle purchases —— 1 qualified renewable fuels. 2 1. A motor vehicle operating using an internal combustion 3 engine powered by gasoline or diesel fuel as described in 4 section 8A.362 shall use the highest possible classification of 5 a qualified renewable fuel if all of the following apply: 6 a. The manufacturer of the motor vehicle or the United 7 States environmental protection agency expressly states that 8 the classification of a qualified renewable fuel is compatible 9 with the motor vehicle’s normal operation. 10 b. That classification of a qualified renewable fuel is 11 commercially available in the region where the motor vehicle 12 is being operated. 13 c. No emergency situation exists that requires the immediate 14 use of a motor fuel regardless of whether it has been blended 15 with a biofuel. 16 2. If the highest possible classification of a qualified 17 renewable fuel is available to power an engine used to operate 18 a motor vehicle as provided in subsection 1, a state-issued 19 credit card shall not be used to purchase motor fuel other than 20 that classification of a qualified renewable fuel. 21 3. A motor vehicle subject to this section shall be affixed 22 with a brightly colored, highly visible renewable fuel sticker. 23 The qualified renewable fuel sticker shall be designed by 24 the department of agriculture and land stewardship to notify 25 the traveling public that the motor vehicle is operating 26 using an internal combustion engine powered by the highest 27 possible classification of that qualified renewable fuel. The 28 department of administrative services shall distribute the 29 stickers to state agencies maintaining a state motor pool. 30 However, a qualified renewable fuel sticker is not required to 31 be affixed to an unmarked motor vehicle used for purposes of 32 providing law enforcement or security. 33 4. As part of the department’s competitive bidding 34 procedure for the purchase of a motor vehicle operating using 35 -19- HF 2128 (3) 89 da/ns/md 19/ 43