House Study Bill 52 - IntroducedA Bill ForAn Act 1relating to the renewable fuel infrastructure program
2for retail motor fuel sites, by prohibiting the installation
3of infrastructure used to store or dispense gasoline
4incompatible with certain classifications of ethanol
5blended gasoline, making penalties applicable, and including
6effective date provisions.
1   Section 1.  Section 159A.14, subsection 3, paragraph b, Code
22021, is amended by adding the following new subparagraph:
3   NEW SUBPARAGRAPH.  (5)  A statement certifying that on and
4after January 1, 2021, no infrastructure used to store or
5dispense gasoline was installed on the retail motor fuel site
6to be improved that is incompatible with E-15 or E-85.
7   Sec. 2.  Section 159A.14, subsection 3, Code 2021, is amended
8by adding the following new paragraph:
9   NEW PARAGRAPH.  c.  The person applying to participate in the
10program has not made an assertion to the department or board
11that was materially false or misleading.
12   Sec. 3.  PRIOR RECEIVED APPLICATIONS.  The department of
13agriculture and land stewardship shall reject any application
14submitted by a person to participate in the renewable fuel
15infrastructure program for retail motor fuel sites, as provided
16in section 159A.14, prior to the effective date of this Act,
17unless all of the following apply:
   181.  The person signs and delivers to the department a
19statement certifying that on and after January 1, 2021,
20no infrastructure used to store or dispense gasoline was
21installed on the retail motor fuel site to be improved that is
22incompatible with E-15 or E-85.
   232.  The renewable fuel infrastructure board approves the
24statement described in subsection 1.
25   Sec. 4.  EFFECTIVE DATE.  This Act, being deemed of immediate
26importance, takes effect upon enactment.
28The inclusion of this explanation does not constitute agreement with
29the explanation’s substance by the members of the general assembly.
   30BILL’S PROVISIONS. This bill provides that a retail
31dealer of motor fuel (dealer) applying to the department of
32agriculture and land stewardship (DALS) to participate in the
33renewable fuel infrastructure program for retail motor fuel
34sites (program) must certify that, on and after January 1,
352021, no infrastructure was installed that could be used to
-1-1store or dispense gasoline at a retail motor fuel site (site)
2incompatible with ethanol blended gasoline classified as E-15
3or E-85 (Code section 159.14). It also provides that DALS
4must reject any application to participate in the program
5submitted prior to the bill’s effective date, unless the dealer
6certifies that no such infrastructure has been so installed.
7The certification must be approved by the renewable fuel
8infrastructure board (board). See Code section 159A.13.
   9APPLICABLE CIVIL PENALTY. A participating dealer who acts
10in violation of an agreement is subject to a civil penalty of
11not more than $1,000 per day for each day of the violation. The
12civil penalty shall be deposited into the general fund of the
13state (Code section 159A.14(7)).
15program allocates state moneys generally on a cost-share basis
16to dealers in order to defray costs associated with installing
17an improvement to a site. The improvements must directly
18relate to the storage and dispensing of certain classifications
19of ethanol blended gasoline referred to as E-15 (containing 15
20percent ethanol) or E-85 (containing between 70 and 85 percent
21ethanol). See Code sections 159A.12, 214A.1, and 214A.2.
   22BACKGROUND — PROCESS OF APPROVAL. In order to participate
23in the program, a dealer must submit an application to DALS
24proposing an improvement to a site. The application must be
25approved by the board prior to the execution of an agreement
26by DALS and the dealer. The application contains a statement
27certifying that the infrastructure will only be used to store
28and dispense E-15 or E-85 for the term of the agreement (three
29or five years). See Code section 159A.14(3).
   30EFFECTIVE DATE. The bill takes effect upon enactment.