House File 168 - IntroducedA Bill ForAn Act 1creating a crude oil disaster prevention and response
2fee, and providing for the deposit of the fees in certain
3water quality funds.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 8.57B, subsection 1, Code 2021, is
2amended to read as follows:
   31.  A water quality infrastructure fund is created within
4the division of soil conservation and water quality of the
5department of agriculture and land stewardship. The fund
6shall consist of moneys deposited in the fund pursuant to
7section 8.57, subsection 5, paragraph “f”, subparagraph
8(1), subparagraph division (c), moneys deposited in the fund
9pursuant to section 455B.702,
moneys transferred to the fund
10pursuant to section 423G.6, and appropriations made to the fund
11and transfers of interest, earnings, and moneys from other
12funds as provided by law.
13   Sec. 2.  Section 16.134A, subsection 2, Code 2021, is amended
14by adding the following new paragraph:
15   NEW PARAGRAPH.  0b.  Moneys deposited in the fund pursuant to
16section 455B.702.
17   Sec. 3.  NEW SECTION.  455B.702  Crude oil disaster prevention
18and response fee.
   191.  A crude oil disaster prevention and response fee shall
20be payable by the owner or operator of a pipeline company, as
21defined in section 479B.2, that does not deliver its product
22for final use in this state, in an amount equal to fifty
23ten-thousandths of one cent per gallon of crude oil transported
24out of the state by pipeline, whether extracted in or out of
25the state. The director shall establish by rule procedures for
26collecting the fees.
   272.  Fees collected pursuant to this section shall be
28deposited as follows:
   29a.  Fifteen percent shall be deposited in the water quality
30infrastructure fund created in section 8.57B.
   31b.  Eighty-five percent shall be deposited in the water
32quality financial assistance fund created in section 16.134A.
33EXPLANATION
34The inclusion of this explanation does not constitute agreement with
35the explanation’s substance by the members of the general assembly.
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   1This bill creates a crude oil disaster prevention and
2response fee applied to crude oil transported out of the state
3by pipeline and payable by the owner or operator of a pipeline
4company that does not deliver its product for final use in
5this state. The bill requires the director of the department
6of natural resources to establish rules for collecting the
7fee. Of the fees collected, 15 percent shall be deposited in
8the water quality infrastructure fund and 85 percent shall be
9deposited in the water quality financial assistance fund.
   10Pursuant to Code section 455B.109, the environmental
11protection commission is required to establish, by rule, civil
12penalties applicable to a violation of Code chapter 455B, which
13would include the failure to pay the fee created in the bill.
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