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House Study Bill 153 - IntroducedA Bill ForAn Act 1relating to qualified motor fuel storage and dispensing
2infrastructure, by providing for a program to award
3financial incentives to store and dispense ethanol and
4ethanol blended gasoline classified as E-15 or higher,
5providing for a fund, making appropriations, and providing
6penalties.
7BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 159A.11, subsection 8, Code 2021, is
2amended to read as follows:
38. “Terminal” means a storage and distribution facility
4bearing a terminal control number as required by the federal
5internal revenue service, which facility is for motor fuel,
6 or a blend stock such as ethanol or biodiesel, that is stored
7on-site or off-site in bulk, and that is supplied to a motor
8vehicle, pipeline, or a marine vessel, and from which storage
9and distribution facility the motor fuel or blend stock may
10be removed at a rack. “Terminal” does not include any of the
11following:
12a. A retail motor fuel site.
13b. A facility at which motor fuel, special fuel, or blend
14stocks are used in the manufacture of products other than motor
15fuel and from which no motor fuel or special fuel is removed.
16 Sec. 2. Section 159A.13, subsections 1 and 6, Code 2021, are
17amended to read as follows:
181. The department shall provide the infrastructure board
19with necessary facilities, items, and clerical support. The
20department shall perform administrative functions necessary
21for the management of the infrastructure board and the
22renewable fuel infrastructure programs as provided in sections
23159A.14, 159A.14A, and 159A.15, all under the direction of the
24infrastructure board.
256. The infrastructure board shall meet with three or
26more members of the underground storage tank fund board who
27shall represent the underground storage tank fund board. The
28representatives shall be available to advise the infrastructure
29board when the infrastructure board makes decisions regarding
30the awarding of financial incentives to a person under a
31renewable fuel infrastructure program provided in section
32159A.14, 159A.14A, or 159A.15.
33 Sec. 3. NEW SECTION. 159A.14A E-15 plus gasoline qualified
34infrastructure program.
351. An E-15 plus gasoline qualified infrastructure program
-1-1is established in the department under the direction of the
2infrastructure board.
32. The purpose of the program is to improve all of the
4following:
5a. Existing terminals by installing new fuel storage tanks
6and related infrastructure to be used to store, blend, or
7dispense ethanol or ethanol blended gasoline classified as E-15
8or higher.
9b. Existing retail motor fuel sites by installing
10new infrastructure, or replacing or converting existing
11infrastructure, to be used to store, blend, or dispense ethanol
12blended gasoline classified as E-15 or higher.
133. a. The ethanol or ethanol blended gasoline classified
14as E-15 or higher must comply with requirements of the United
15States environmental protection agency and standards provided
16in section 214A.2.
17b. Qualified infrastructure includes tanks and all
18associated equipment, including but not limited to pipes,
19hoses, tubes, lines, fittings, valves, filters, seals, and
20covers. However, qualified infrastructure does not include
21motor fuel pumps, motor fuel blender pumps, or tank vehicles.
224. The infrastructure board shall approve cost-share
23agreements to make qualified infrastructure improvements
24if executed by the department and persons that the
25infrastructure board determines are eligible as provided in
26this section, according to terms and conditions required by the
27infrastructure board. The infrastructure board shall determine
28the amount of the financial incentives to be awarded to a
29person participating in the program subject to the limitations
30provided in this section. In order for a person to be eligible
31to participate in the program, all of the following must apply:
32a. The person must be any of the following:
33(1) A terminal operator of a terminal seeking to improve
34the terminal.
35(2) The owner or operator of a retail motor fuel site
-2-1seeking to improve the retail motor fuel site.
2b. The person must apply to the department in a manner and
3according to procedures required by the infrastructure board.
4The application must contain all information required by the
5infrastructure board and shall at least include all of the
6following:
7(1) The name of the person and the address of the terminal
8or retail motor fuel site to be improved.
9(2) (a) For a terminal, a detailed description of the
10qualified infrastructure to be installed.
11(b) For a retail motor fuel site, a detailed description
12of the qualified infrastructure to be installed, replaced, or
13converted. The information shall include the model number of
14each installed, replaced, or converted motor fuel storage tank,
15if available.
16(3) A statement describing how the terminal or retail motor
17fuel site is to be improved, the total estimated cost of the
18planned improvement, and the proposed date when the qualified
19infrastructure will be first used following the completion of
20the improvement.
21(4) A statement certifying that the qualified
22infrastructure shall only be used to comply with the provisions
23of this section and as specified in the cost-share agreement,
24unless granted a waiver by the infrastructure board pursuant to
25this section.
265. a. A terminal improved using financial incentives
27awarded under this section must comply with applicable federal
28and state standards governing new motor fuel tanks and related
29infrastructure used to store and dispense ethanol or ethanol
30blended gasoline classified as E-15 or higher.
31b. A retail motor fuel site improved using financial
32incentives awarded under this section must comply with
33applicable federal and state standards governing new or
34upgraded motor fuel storage tanks used to store and dispense
35ethanol blended gasoline classified as E-15 or higher including
-3-1as provided in section 455B.474. A retail motor fuel site
2issued a certificate of no further action by the department
3of natural resources under that section shall retain its
4classification following modifications necessary to store
5ethanol blended gasoline classified as E-15 or higher and the
6owner or operator of the retail motor fuel site shall not be
7required to perform a new site assessment unless a new release
8occurs or if a previously unknown or unforeseen risk condition
9arises.
106. An award of financial incentives to a participating
11person shall be on a cost-share basis in the form of a grant.
12To participate in the program, an eligible person must execute
13a cost-share agreement with the department as approved by
14the infrastructure board, in which the person contributes a
15percentage of the total costs related to improving the retail
16motor fuel site or terminal.
17a. A cost-share agreement shall be for five years. The
18infrastructure board may approve multiple improvements to
19the same terminal or retail motor fuel site so long as the
20improvements are made under separate cost-share agreements.
21b. (1) The financial incentives awarded to a participating
22person to improve a terminal or retail motor fuel site shall
23not exceed fifty percent of the actual cost of making the
24improvement or six hundred thousand dollars, whichever is less.
25(2) The infrastructure board may approve multiple awards of
26financial incentives to make improvements to the same terminal
27or retail motor fuel site so long as the total amount of awards
28does not exceed the limitations provided in subparagraph (1).
29(3) The infrastructure board shall not award a total of
30more than one million dollars in financial incentives to a
31participating person during any twelve-month period.
327. A participating person who is a terminal operator awarded
33financial incentives to improve an existing terminal shall
34not use the installed motor fuel tank or related qualified
35infrastructure to store and dispense a biofuel other than
-4-1ethanol or a motor fuel other than ethanol blended gasoline
2classified as E-15 or higher, unless one of the following
3applies:
4a. The participating person is granted a waiver by the
5infrastructure board. The participating person shall store and
6dispense the biofuel or motor fuel according to the terms and
7conditions of the waiver.
8b. (1) During a fiscal year of the period beginning July
91, 2021, and ending June 30, 2031, the E-15 plus gasoline
10qualified infrastructure fund created in section 159A.17
11is immediately repaid the total amount awarded to the
12participating person together with a monetary penalty equal to
13twenty-five percent of that awarded amount.
14(2) This subparagraph is repealed January 1, 2032.
15c. During the fiscal year beginning July 1, 2031, and each
16fiscal year thereafter, the renewable fuel infrastructure fund
17created in section 159A.16 is immediately repaid the total
18amount awarded to the participating person together with a
19monetary penalty equal to twenty-five percent of that awarded
20amount.
218. A participating person who is the owner or operator
22of a retail motor fuel site awarded financial incentives to
23improve an existing retail motor fuel site by installing new or
24replacing or converting existing qualified infrastructure shall
25not use the qualified infrastructure to store and dispense
26motor fuel other than ethanol blended gasoline classified as
27E-15 or higher, unless one of the following applies:
28a. The participating person is granted a waiver by the
29infrastructure board. The participating person shall store or
30dispense the motor fuel according to the terms and conditions
31of the waiver.
32b. The renewable fuel infrastructure fund created in section
33159A.16 is immediately repaid the total amount of moneys
34awarded to the participating person together with a monetary
35penalty equal to twenty-five percent of that awarded amount.
-5- 19. A participating person may be awarded financial
2incentives under this section regardless of whether the
3participating person received financial incentives under the
4renewable fuel infrastructure program for retail motor fuel
5sites established in section 159A.14.
610. A participating person who acts in violation of an
7agreement executed with the department pursuant to this section
8is subject to a civil penalty of not more than one thousand
9dollars per day for each day of the violation. The civil
10penalty shall be deposited in the general fund of the state.
11 Sec. 4. Section 159A.16, subsection 3, Code 2021, is amended
12to read as follows:
133. Moneys in the renewable fuel infrastructure fund are
14appropriated to the department exclusively to support and
15market the renewable fuel infrastructure programs as provided
16in sections 159A.14, 159A.14A, and 159A.15, and as allocated in
17financial incentives by the renewable fuel infrastructure board
18created in section 159A.13. Up
19a. (1) For each fiscal year for the period beginning
20July 1, 2021, and ending June 30, 2031, one million dollars
21from moneys credited to the renewable fuel infrastructure
22fund shall be transferred to the E-15 plus gasoline qualified
23infrastructure fund created in section 159A.17.
24(2) This paragraph “a” is repealed January 1, 2032.
25b. Of the remaining moneys in the renewable fuel
26infrastructure fund, upto fifty thousand dollars shall be
27allocated each fiscal year to the department to support the
28administration of the programs. The department may use up to
29one and one-half percent of the program funds available under
30this paragraph to market the programs. Otherwise the moneys
31shall not be transferred, used, obligated, appropriated, or
32otherwise encumbered except to allocate as financial incentives
33under the programs.
34 Sec. 5. NEW SECTION. 159A.17 E-15 plus gasoline qualified
35infrastructure fund.
-6- 11. An E-15 plus gasoline qualified infrastructure fund
2is created in the state treasury under the control of the
3department. The fund is separate from the general fund of the
4state.
52. The E-15 plus gasoline qualified infrastructure fund is
6composed of moneys appropriated by the general assembly and
7moneys available to and obtained or accepted by the department
8from the United States government or private sources for
9placement in the fund.
103. Moneys in the E-15 plus gasoline qualified
11infrastructure fund are appropriated to the department
12exclusively to support the E-15 plus gasoline qualified
13infrastructure program by financing improvements to
14existing terminals where new fuel storage tanks and related
15infrastructure are installed as provided in section 159A.14A.
164. a. Notwithstanding section 12C.7, interest or earnings
17on moneys in the E-15 plus gasoline qualified infrastructure
18fund shall be credited to the fund.
19b. Notwithstanding section 8.33, unencumbered and
20unobligated moneys remaining in the fund at the close of each
21fiscal year shall not revert but shall remain available in the
22fund for the purposes designated.
235. Notwithstanding subsection 3, any unencumbered and
24unobligated moneys remaining in the E-15 plus gasoline
25qualified infrastructure fund on June 30, 2031, shall be
26transferred to the renewable fuel infrastructure fund created
27in section 159A.16.
286. This section is repealed January 1, 2032.
29EXPLANATION
30The inclusion of this explanation does not constitute agreement with
31the explanation’s substance by the members of the general assembly.
32This bill creates an E-15 plus gasoline qualified
33infrastructure program (program) to award financial incentives
34to improve terminals and retail motor fuel sites (retail
35sites) by installing new motor fuel storage tanks (e.g.,
-7-1underground storage tanks) and associated fittings and
2equipment. Qualified infrastructure does not include certain
3items associated with dispensing motor fuel (e.g., motor fuel
4pumps or tank wagons). The financial awards may also be used
5to replace or convert qualified infrastructure at retail
6sites. The moneys are awarded by the department of agriculture
7and land stewardship (DALS) working in cooperation with the
8renewable fuel infrastructure board (board) (Code section
9159A.13). Awards are made to a terminal operator or the owner
10or operator of a retail site (participating person). The bill
11imposes caps on the amount that may be awarded to improve a
12terminal or retail site to the same participating person during
13any 12-month period. An award to a participating person is
14based on a five-year cost-share agreement (agreement) executed
15by the participating person and DALS acting in cooperation with
16the board. The bill provides that the board may waive the
17requirement that the improved infrastructure be used to store
18and dispense ethanol or ethanol blended gasoline classified as
19E-15 or higher. A participating person who acts in violation
20of an agreement is subject to a civil penalty of up to $1,000
21per day. The bill also creates an E-15 plus gasoline qualified
22infrastructure fund that is used to support the program. The
23E-15 plus gasoline qualified infrastructure fund is supported
24by an annual transfer from the renewable fuel infrastructure
25fund of $1 million for 10 years. Moneys in the new fund must be
26used to finance improvements to terminals. The new fund and
27the associated transfer are eliminated after the fiscal year
28ending June 30, 2031. Improvements to retail sites under the
29program are financed by the renewable fuel infrastructure fund.
30BACKGROUND. Ethanol refers to agriculturally derived
31ethyl alcohol. Generally, ethanol blended fuel is classified
32according to the volume percent of ethanol in a unit (gallon)
33of gasoline and must meet certain regulations established by
34the United States environmental protection agency and A.S.T.M.
35international specifications (Code section 214A.2).
-8- 1The new program is similar to the renewable fuel
2infrastructure program for retail motor fuel sites that is
3administered by DALS and the board to improve retail sites by
4financing infrastructure associated with storing and dispensing
5ethanol blended gasoline classified as E-15 and E-85 and
6biodiesel fuel (Code section 159A.14). That program as well
7as the renewable fuel infrastructure program for biodiesel
8terminal facilities (Code section 159A.15) is supported by
9moneys credited to the renewable fuel infrastructure fund (Code
10section 159A.16).
-9-da/ns
2infrastructure, by providing for a program to award
3financial incentives to store and dispense ethanol and
4ethanol blended gasoline classified as E-15 or higher,
5providing for a fund, making appropriations, and providing
6penalties.
7BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 159A.11, subsection 8, Code 2021, is
2amended to read as follows:
38. “Terminal” means a storage and distribution facility
4bearing a terminal control number as required by the federal
5internal revenue service, which facility is for motor fuel,
6 or a blend stock such as ethanol or biodiesel, that is stored
7on-site or off-site in bulk, and that is supplied to a motor
8vehicle, pipeline, or a marine vessel, and from which storage
9and distribution facility the motor fuel or blend stock may
10be removed at a rack. “Terminal” does not include any of the
11following:
12a. A retail motor fuel site.
13b. A facility at which motor fuel, special fuel, or blend
14stocks are used in the manufacture of products other than motor
15fuel and from which no motor fuel or special fuel is removed.
16 Sec. 2. Section 159A.13, subsections 1 and 6, Code 2021, are
17amended to read as follows:
181. The department shall provide the infrastructure board
19with necessary facilities, items, and clerical support. The
20department shall perform administrative functions necessary
21for the management of the infrastructure board and the
22renewable fuel infrastructure programs as provided in sections
23159A.14, 159A.14A, and 159A.15, all under the direction of the
24infrastructure board.
256. The infrastructure board shall meet with three or
26more members of the underground storage tank fund board who
27shall represent the underground storage tank fund board. The
28representatives shall be available to advise the infrastructure
29board when the infrastructure board makes decisions regarding
30the awarding of financial incentives to a person under a
31renewable fuel infrastructure program provided in section
32159A.14, 159A.14A, or 159A.15.
33 Sec. 3. NEW SECTION. 159A.14A E-15 plus gasoline qualified
34infrastructure program.
351. An E-15 plus gasoline qualified infrastructure program
-1-1is established in the department under the direction of the
2infrastructure board.
32. The purpose of the program is to improve all of the
4following:
5a. Existing terminals by installing new fuel storage tanks
6and related infrastructure to be used to store, blend, or
7dispense ethanol or ethanol blended gasoline classified as E-15
8or higher.
9b. Existing retail motor fuel sites by installing
10new infrastructure, or replacing or converting existing
11infrastructure, to be used to store, blend, or dispense ethanol
12blended gasoline classified as E-15 or higher.
133. a. The ethanol or ethanol blended gasoline classified
14as E-15 or higher must comply with requirements of the United
15States environmental protection agency and standards provided
16in section 214A.2.
17b. Qualified infrastructure includes tanks and all
18associated equipment, including but not limited to pipes,
19hoses, tubes, lines, fittings, valves, filters, seals, and
20covers. However, qualified infrastructure does not include
21motor fuel pumps, motor fuel blender pumps, or tank vehicles.
224. The infrastructure board shall approve cost-share
23agreements to make qualified infrastructure improvements
24if executed by the department and persons that the
25infrastructure board determines are eligible as provided in
26this section, according to terms and conditions required by the
27infrastructure board. The infrastructure board shall determine
28the amount of the financial incentives to be awarded to a
29person participating in the program subject to the limitations
30provided in this section. In order for a person to be eligible
31to participate in the program, all of the following must apply:
32a. The person must be any of the following:
33(1) A terminal operator of a terminal seeking to improve
34the terminal.
35(2) The owner or operator of a retail motor fuel site
-2-1seeking to improve the retail motor fuel site.
2b. The person must apply to the department in a manner and
3according to procedures required by the infrastructure board.
4The application must contain all information required by the
5infrastructure board and shall at least include all of the
6following:
7(1) The name of the person and the address of the terminal
8or retail motor fuel site to be improved.
9(2) (a) For a terminal, a detailed description of the
10qualified infrastructure to be installed.
11(b) For a retail motor fuel site, a detailed description
12of the qualified infrastructure to be installed, replaced, or
13converted. The information shall include the model number of
14each installed, replaced, or converted motor fuel storage tank,
15if available.
16(3) A statement describing how the terminal or retail motor
17fuel site is to be improved, the total estimated cost of the
18planned improvement, and the proposed date when the qualified
19infrastructure will be first used following the completion of
20the improvement.
21(4) A statement certifying that the qualified
22infrastructure shall only be used to comply with the provisions
23of this section and as specified in the cost-share agreement,
24unless granted a waiver by the infrastructure board pursuant to
25this section.
265. a. A terminal improved using financial incentives
27awarded under this section must comply with applicable federal
28and state standards governing new motor fuel tanks and related
29infrastructure used to store and dispense ethanol or ethanol
30blended gasoline classified as E-15 or higher.
31b. A retail motor fuel site improved using financial
32incentives awarded under this section must comply with
33applicable federal and state standards governing new or
34upgraded motor fuel storage tanks used to store and dispense
35ethanol blended gasoline classified as E-15 or higher including
-3-1as provided in section 455B.474. A retail motor fuel site
2issued a certificate of no further action by the department
3of natural resources under that section shall retain its
4classification following modifications necessary to store
5ethanol blended gasoline classified as E-15 or higher and the
6owner or operator of the retail motor fuel site shall not be
7required to perform a new site assessment unless a new release
8occurs or if a previously unknown or unforeseen risk condition
9arises.
106. An award of financial incentives to a participating
11person shall be on a cost-share basis in the form of a grant.
12To participate in the program, an eligible person must execute
13a cost-share agreement with the department as approved by
14the infrastructure board, in which the person contributes a
15percentage of the total costs related to improving the retail
16motor fuel site or terminal.
17a. A cost-share agreement shall be for five years. The
18infrastructure board may approve multiple improvements to
19the same terminal or retail motor fuel site so long as the
20improvements are made under separate cost-share agreements.
21b. (1) The financial incentives awarded to a participating
22person to improve a terminal or retail motor fuel site shall
23not exceed fifty percent of the actual cost of making the
24improvement or six hundred thousand dollars, whichever is less.
25(2) The infrastructure board may approve multiple awards of
26financial incentives to make improvements to the same terminal
27or retail motor fuel site so long as the total amount of awards
28does not exceed the limitations provided in subparagraph (1).
29(3) The infrastructure board shall not award a total of
30more than one million dollars in financial incentives to a
31participating person during any twelve-month period.
327. A participating person who is a terminal operator awarded
33financial incentives to improve an existing terminal shall
34not use the installed motor fuel tank or related qualified
35infrastructure to store and dispense a biofuel other than
-4-1ethanol or a motor fuel other than ethanol blended gasoline
2classified as E-15 or higher, unless one of the following
3applies:
4a. The participating person is granted a waiver by the
5infrastructure board. The participating person shall store and
6dispense the biofuel or motor fuel according to the terms and
7conditions of the waiver.
8b. (1) During a fiscal year of the period beginning July
91, 2021, and ending June 30, 2031, the E-15 plus gasoline
10qualified infrastructure fund created in section 159A.17
11is immediately repaid the total amount awarded to the
12participating person together with a monetary penalty equal to
13twenty-five percent of that awarded amount.
14(2) This subparagraph is repealed January 1, 2032.
15c. During the fiscal year beginning July 1, 2031, and each
16fiscal year thereafter, the renewable fuel infrastructure fund
17created in section 159A.16 is immediately repaid the total
18amount awarded to the participating person together with a
19monetary penalty equal to twenty-five percent of that awarded
20amount.
218. A participating person who is the owner or operator
22of a retail motor fuel site awarded financial incentives to
23improve an existing retail motor fuel site by installing new or
24replacing or converting existing qualified infrastructure shall
25not use the qualified infrastructure to store and dispense
26motor fuel other than ethanol blended gasoline classified as
27E-15 or higher, unless one of the following applies:
28a. The participating person is granted a waiver by the
29infrastructure board. The participating person shall store or
30dispense the motor fuel according to the terms and conditions
31of the waiver.
32b. The renewable fuel infrastructure fund created in section
33159A.16 is immediately repaid the total amount of moneys
34awarded to the participating person together with a monetary
35penalty equal to twenty-five percent of that awarded amount.
-5- 19. A participating person may be awarded financial
2incentives under this section regardless of whether the
3participating person received financial incentives under the
4renewable fuel infrastructure program for retail motor fuel
5sites established in section 159A.14.
610. A participating person who acts in violation of an
7agreement executed with the department pursuant to this section
8is subject to a civil penalty of not more than one thousand
9dollars per day for each day of the violation. The civil
10penalty shall be deposited in the general fund of the state.
11 Sec. 4. Section 159A.16, subsection 3, Code 2021, is amended
12to read as follows:
133. Moneys in the renewable fuel infrastructure fund are
14appropriated to the department exclusively to support and
15market the renewable fuel infrastructure programs as provided
16in sections 159A.14, 159A.14A, and 159A.15, and as allocated in
17financial incentives by the renewable fuel infrastructure board
18created in section 159A.13. Up
19a. (1) For each fiscal year for the period beginning
20July 1, 2021, and ending June 30, 2031, one million dollars
21from moneys credited to the renewable fuel infrastructure
22fund shall be transferred to the E-15 plus gasoline qualified
23infrastructure fund created in section 159A.17.
24(2) This paragraph “a” is repealed January 1, 2032.
25b. Of the remaining moneys in the renewable fuel
26infrastructure fund, upto fifty thousand dollars shall be
27allocated each fiscal year to the department to support the
28administration of the programs. The department may use up to
29one and one-half percent of the program funds available under
30this paragraph to market the programs. Otherwise the moneys
31shall not be transferred, used, obligated, appropriated, or
32otherwise encumbered except to allocate as financial incentives
33under the programs.
34 Sec. 5. NEW SECTION. 159A.17 E-15 plus gasoline qualified
35infrastructure fund.
-6- 11. An E-15 plus gasoline qualified infrastructure fund
2is created in the state treasury under the control of the
3department. The fund is separate from the general fund of the
4state.
52. The E-15 plus gasoline qualified infrastructure fund is
6composed of moneys appropriated by the general assembly and
7moneys available to and obtained or accepted by the department
8from the United States government or private sources for
9placement in the fund.
103. Moneys in the E-15 plus gasoline qualified
11infrastructure fund are appropriated to the department
12exclusively to support the E-15 plus gasoline qualified
13infrastructure program by financing improvements to
14existing terminals where new fuel storage tanks and related
15infrastructure are installed as provided in section 159A.14A.
164. a. Notwithstanding section 12C.7, interest or earnings
17on moneys in the E-15 plus gasoline qualified infrastructure
18fund shall be credited to the fund.
19b. Notwithstanding section 8.33, unencumbered and
20unobligated moneys remaining in the fund at the close of each
21fiscal year shall not revert but shall remain available in the
22fund for the purposes designated.
235. Notwithstanding subsection 3, any unencumbered and
24unobligated moneys remaining in the E-15 plus gasoline
25qualified infrastructure fund on June 30, 2031, shall be
26transferred to the renewable fuel infrastructure fund created
27in section 159A.16.
286. This section is repealed January 1, 2032.
29EXPLANATION
30The inclusion of this explanation does not constitute agreement with
31the explanation’s substance by the members of the general assembly.
32This bill creates an E-15 plus gasoline qualified
33infrastructure program (program) to award financial incentives
34to improve terminals and retail motor fuel sites (retail
35sites) by installing new motor fuel storage tanks (e.g.,
-7-1underground storage tanks) and associated fittings and
2equipment. Qualified infrastructure does not include certain
3items associated with dispensing motor fuel (e.g., motor fuel
4pumps or tank wagons). The financial awards may also be used
5to replace or convert qualified infrastructure at retail
6sites. The moneys are awarded by the department of agriculture
7and land stewardship (DALS) working in cooperation with the
8renewable fuel infrastructure board (board) (Code section
9159A.13). Awards are made to a terminal operator or the owner
10or operator of a retail site (participating person). The bill
11imposes caps on the amount that may be awarded to improve a
12terminal or retail site to the same participating person during
13any 12-month period. An award to a participating person is
14based on a five-year cost-share agreement (agreement) executed
15by the participating person and DALS acting in cooperation with
16the board. The bill provides that the board may waive the
17requirement that the improved infrastructure be used to store
18and dispense ethanol or ethanol blended gasoline classified as
19E-15 or higher. A participating person who acts in violation
20of an agreement is subject to a civil penalty of up to $1,000
21per day. The bill also creates an E-15 plus gasoline qualified
22infrastructure fund that is used to support the program. The
23E-15 plus gasoline qualified infrastructure fund is supported
24by an annual transfer from the renewable fuel infrastructure
25fund of $1 million for 10 years. Moneys in the new fund must be
26used to finance improvements to terminals. The new fund and
27the associated transfer are eliminated after the fiscal year
28ending June 30, 2031. Improvements to retail sites under the
29program are financed by the renewable fuel infrastructure fund.
30BACKGROUND. Ethanol refers to agriculturally derived
31ethyl alcohol. Generally, ethanol blended fuel is classified
32according to the volume percent of ethanol in a unit (gallon)
33of gasoline and must meet certain regulations established by
34the United States environmental protection agency and A.S.T.M.
35international specifications (Code section 214A.2).
-8- 1The new program is similar to the renewable fuel
2infrastructure program for retail motor fuel sites that is
3administered by DALS and the board to improve retail sites by
4financing infrastructure associated with storing and dispensing
5ethanol blended gasoline classified as E-15 and E-85 and
6biodiesel fuel (Code section 159A.14). That program as well
7as the renewable fuel infrastructure program for biodiesel
8terminal facilities (Code section 159A.15) is supported by
9moneys credited to the renewable fuel infrastructure fund (Code
10section 159A.16).
-9-da/ns