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House Study Bill 689 - IntroducedA Bill ForAn Act 1relating to the renewable fuel infrastructure program
2for retail motor fuel sites, by providing for the award of
3standard financial incentives to participating persons.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 159A.11, Code 2020, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 2A. “E-15 plus gasoline” means ethanol
4blended gasoline classified as E-15 or higher, other than
5E-85 gasoline, if the formulation of the gasoline meets the
6standards set forth in section 214A.2.
7 Sec. 2. Section 159A.14, subsection 1, paragraph a,
8subparagraph (1), subparagraph division (a), Code 2020, is
9amended to read as follows:
10(a) Store and dispense E-15 plus gasoline. At least for
11the period beginning on September 16 and ending on May 31 of
12each year, the ethanol infrastructure must be used to store and
13dispense E-15 gasoline as a registered fuel recognized by the
14United States environmental protection agency.
15 Sec. 3. Section 159A.14, subsection 5, paragraph a,
16subparagraph (1), subparagraph division (b), Code 2020, is
17amended to read as follows:
18(b) For a five-year cost-share agreement, seventy percent
19of the actual cost of making the improvement or fifty one
20hundred thousand dollars, whichever is less.
21 Sec. 4. Section 159A.14, subsection 5, paragraph a, Code
222020, is amended by adding the following new subparagraph:
23 NEW SUBPARAGRAPH. (3) The infrastructure board shall not
24award a total of more than five hundred thousand dollars in
25standard financial incentives to a participating person as
26provided in subparagraphs (1) and (2) during any twelve-month
27period.
28EXPLANATION
29The inclusion of this explanation does not constitute agreement with
30the explanation’s substance by the members of the general assembly.
31GENERAL. This bill amends the renewable fuel infrastructure
32program for retail motor fuel sites (program), which supports
33the improvement of retail motor fuel sites by installing,
34replacing, or converting motor fuel storage and dispensing
35(e.g., underground storage tanks and motor fuel pumps
-1-1infrastructure) associated with E-15 gasoline, E-85 gasoline,
2or biodiesel.
3AWARDS. The bill provides that the infrastructure may
4be used to support ethanol blended gasoline classified as
5E-15 or higher (E-15 plus gasoline) but not classified as
6E-85 gasoline (between 70 and 85 percent ethanol). The bill
7removes a restriction on when E-15 gasoline may be stored in a
8motor fuel storage tank, increases the amount of moneys that
9may be awarded as standard financial incentives (grants) to a
10participating person (retail dealer) to support an improvement,
11and places a cap on the amount of moneys that may be awarded to
12the participating person during any 12-month period.
13BACKGROUND. The program is administered by the department
14of agriculture and land stewardship which executes cost-share
15agreements with participating persons subject to approval
16by the renewable fuel infrastructure board (Code sections
17159A.13 and 159A.14). The program includes standard financial
18incentives awarded to improve one or more motor fuel sites
19subject to certain award caps. The award may be for either
20three years with an award cap of $30,000 or five years with
21an award cap of $50,000. The program also provides for
22supplemental financial incentives for improvements relating
23to E-85 infrastructure or improvements to additional motor
24fuel sites owned or operated by a participating person. The
25program is supported by moneys credited to the renewable fuel
26infrastructure fund (Code section 159A.16). In 2019, moneys in
27the fund were appropriated from the rebuild Iowa infrastructure
28fund (2019 Iowa Acts, chapter 137, section 1).
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2for retail motor fuel sites, by providing for the award of
3standard financial incentives to participating persons.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 159A.11, Code 2020, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 2A. “E-15 plus gasoline” means ethanol
4blended gasoline classified as E-15 or higher, other than
5E-85 gasoline, if the formulation of the gasoline meets the
6standards set forth in section 214A.2.
7 Sec. 2. Section 159A.14, subsection 1, paragraph a,
8subparagraph (1), subparagraph division (a), Code 2020, is
9amended to read as follows:
10(a) Store and dispense E-15 plus gasoline. At least for
11the period beginning on September 16 and ending on May 31 of
12each year, the ethanol infrastructure must be used to store and
13dispense E-15 gasoline as a registered fuel recognized by the
14United States environmental protection agency.
15 Sec. 3. Section 159A.14, subsection 5, paragraph a,
16subparagraph (1), subparagraph division (b), Code 2020, is
17amended to read as follows:
18(b) For a five-year cost-share agreement, seventy percent
19of the actual cost of making the improvement or fifty one
20hundred thousand dollars, whichever is less.
21 Sec. 4. Section 159A.14, subsection 5, paragraph a, Code
222020, is amended by adding the following new subparagraph:
23 NEW SUBPARAGRAPH. (3) The infrastructure board shall not
24award a total of more than five hundred thousand dollars in
25standard financial incentives to a participating person as
26provided in subparagraphs (1) and (2) during any twelve-month
27period.
28EXPLANATION
29The inclusion of this explanation does not constitute agreement with
30the explanation’s substance by the members of the general assembly.
31GENERAL. This bill amends the renewable fuel infrastructure
32program for retail motor fuel sites (program), which supports
33the improvement of retail motor fuel sites by installing,
34replacing, or converting motor fuel storage and dispensing
35(e.g., underground storage tanks and motor fuel pumps
-1-1infrastructure) associated with E-15 gasoline, E-85 gasoline,
2or biodiesel.
3AWARDS. The bill provides that the infrastructure may
4be used to support ethanol blended gasoline classified as
5E-15 or higher (E-15 plus gasoline) but not classified as
6E-85 gasoline (between 70 and 85 percent ethanol). The bill
7removes a restriction on when E-15 gasoline may be stored in a
8motor fuel storage tank, increases the amount of moneys that
9may be awarded as standard financial incentives (grants) to a
10participating person (retail dealer) to support an improvement,
11and places a cap on the amount of moneys that may be awarded to
12the participating person during any 12-month period.
13BACKGROUND. The program is administered by the department
14of agriculture and land stewardship which executes cost-share
15agreements with participating persons subject to approval
16by the renewable fuel infrastructure board (Code sections
17159A.13 and 159A.14). The program includes standard financial
18incentives awarded to improve one or more motor fuel sites
19subject to certain award caps. The award may be for either
20three years with an award cap of $30,000 or five years with
21an award cap of $50,000. The program also provides for
22supplemental financial incentives for improvements relating
23to E-85 infrastructure or improvements to additional motor
24fuel sites owned or operated by a participating person. The
25program is supported by moneys credited to the renewable fuel
26infrastructure fund (Code section 159A.16). In 2019, moneys in
27the fund were appropriated from the rebuild Iowa infrastructure
28fund (2019 Iowa Acts, chapter 137, section 1).
-2-da/ns