House File 2128 - ReprintedA Bill ForAn Act 1relating to renewable fuels, including ethanol
2blended gasoline and biodiesel blended fuel used to power
3internal combustion engines, by providing for compliance
4requirements and promotional initiatives that relate to
5establishing classifications and standards for renewable
6fuels, advertising and selling renewable fuels, storing
7and dispensing renewable fuels, using state motor vehicles
8powered by renewable fuels, and taxes, tax credits, and tax
9refunds relating to renewable fuels; providing penalties and
10making penalties applicable; and including effective date
11and retroactive applicability provisions.
12BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2COMPLIANCE REQUIREMENTS — STANDARDS
3AND CLASSIFICATIONS FOR GASOLINE — MOTOR FUEL STORAGE
4AND DISPENSING INFRASTRUCTURE
5part a
6E-15 ACCESS STANDARD
7 Section 1. NEW SECTION. 214A.31 E-15 access standard —
8establishment.
9In order to ensure consumer access to gasoline containing
10fifteen percent ethanol by volume, an E-15 access standard is
11established in accordance with 2013 Iowa Acts, ch.127, §1,
12section 159A.1, and this subchapter.
13 Sec. 2. NEW SECTION. 214A.32 E-15 access standard — retail
14dealer compliance.
151. Except as provided in sections 214A.33 through 214A.35,
16a retail dealer owning or operating a retail motor fuel site
17shall comply with the E-15 access standard as provided in this
18section.
192. In order to comply with the E-15 access standard, a
20retail dealer must advertise for sale and sell E-15 gasoline
21from a minimum number of qualifying motor fuel dispensers
22located at the retail dealer’s retail motor fuel site. A
23qualifying motor fuel dispenser must be capable of dispensing
24gasoline at all times that it is in operation.
25a. Except as provided in paragraph “b”, a retail dealer
26shall comply with a general E-15 access standard by dispensing
27E-15 gasoline from the following:
28(1) One qualified motor fuel dispenser, if there is only one
29qualified motor fuel dispenser.
30(2) At least fifty percent of all qualified motor fuel
31dispensers, if there are more than one qualified motor fuel
32dispenser.
33b. (1) A retail dealer complies with an alternative E-15
34access standard if all of the following apply:
35(a) On and after January 1, 2023, the retail dealer does not
-1-1install, replace, or convert a motor fuel storage tank.
2(b) On and after January 1, 2026, the retail dealer
3advertises for sale and sells E-15 gasoline from at least one
4qualifying motor fuel dispenser.
5(2) A retail dealer who no longer complies with the
6alternative E-15 access standard as provided in subparagraph
7(1) shall immediately comply with the general E-15 access
8standard as provided in paragraph “a”.
9c. The E-15 access standard does not prohibit a retail
10dealer owning or operating a retail motor fuel site from
11advertising for sale and selling motor fuel from any number of
12nonqualifying motor fuel dispensers. A nonqualifying motor
13fuel dispenser is limited to any of the following:
14(1) A dispenser that exclusively dispenses any of the
15following:
16(a) Aviation fuel.
17(b) Diesel fuel.
18(c) Kerosene.
19(2) A dispenser that is part of a tank vehicle as defined
20in section 321.1 that is not used to dispense gasoline on the
21premises of the retail motor fuel site.
22(3) A dispenser that is part of a commercial marina.
233. a. A retail dealer is not in violation of this section
24during any period of noncompliance with the E-15 access
25standard caused by an excusable event. An excusable event is
26limited to any of the following:
27(1) The maintenance, repair, or reconditioning of motor
28fuel storage and dispensing infrastructure.
29(2) The installation, expansion, replacement, or conversion
30of motor fuel storage and dispensing infrastructure.
31b. The department may require that a retail dealer
32notify the department that an excusable event as described
33in paragraph “a” is planned to occur, is occurring, or has
34occurred. The department may inspect the applicable retail
35motor fuel site to determine whether the noncompliance is
-2-1caused by an excusable event.
24. a. This section shall be implemented on January 1, 2023.
3b. This subsection is repealed January 2, 2023.
4 Sec. 3. NEW SECTION. 214A.33 Suspension of E-15 access
5standard by order issued by governor.
61. The governor may issue or renew an executive order that
7temporarily suspends the requirement in section 214A.32 that a
8retail dealer comply with the E-15 access standard at a retail
9motor fuel site owned or operated by the retail dealer.
102. The E-15 access standard suspension order as described in
11subsection 1 must be supported by the governor’s determination
12that any of the following apply:
13a. There is an inadequate supply of E-15 gasoline.
14b. The market price of E-15 gasoline may cause consumers to
15suffer economic hardship.
16c. Existing motor fuel storage and dispensing infrastructure
17is not capable of storing and dispensing E-15 gasoline.
183. The governor may issue or renew an executive order under
19this section on a statewide or regional basis.
204. The E-15 access standard suspension order shall take
21effect on its date of publication in the Iowa administrative
22bulletin, unless the order specifies a later date. The order
23shall expire one year from its effective date unless a shorter
24period is stated in the order. The early expiration of the
25order may also occur based on circumstances described in the
26order.
275. a. This section shall be implemented on January 1, 2023.
28b. This subsection is repealed January 2, 2023.
29 Sec. 4. NEW SECTION. 214A.34 Waiver of E-15 access
30standard by order issued by secretary of agriculture — E-15
31unavailability.
321. The secretary of agriculture may issue an administrative
33order that temporarily waives the requirement in section
34214A.32 that a retail dealer comply with the E-15 access
35standard at a retail motor fuel site owned or operated by the
-3-1retail dealer based on E-15 gasoline availability.
22. A retail dealer may apply for an E-15 unavailability
3waiver order as described in subsection 1 by submitting an
4application to the department in a manner and according to
5procedures required by the department.
6a. The application must be supported by credible evidence
7that the retail dealer has not been able to reasonably obtain
8E-15 gasoline to be advertised for sale and sold at the retail
9dealer’s retail motor fuel site.
10b. The retail dealer must sign the application which shall
11include a statement that the retail dealer swears and affirms
12that all information in the application completed by the retail
13dealer is true and correct.
143. The department shall publish a copy of the E-15
15unavailability waiver order on the department’s internet site
16within ten days after the order’s issuance.
174. The E-15 unavailability waiver order shall take effect
18on its date of publication on the department’s internet site,
19unless the order specifies a later date. The order shall
20expire six months from its effective date unless a shorter
21period is stated in the order. The early expiration of the
22order may also occur based on circumstances described in the
23order.
245. a. This section shall be implemented on January 1, 2023.
25b. This subsection is repealed January 2, 2023.
26 Sec. 5. NEW SECTION. 214A.35 Waiver of E-15 access standard
27by order issued by secretary of agriculture — E-15 incompatible
28infrastructure.
291. The secretary of agriculture shall issue an
30administrative order that temporarily waives the requirement
31in section 214A.32 that a retail dealer comply with the E-15
32access standard at a retail motor fuel site owned or operated
33by the retail dealer, if the retail motor fuel site qualifies
34under this section based on the incompatibility of the motor
35fuel storage and dispensing infrastructure to store and
-4-1dispense E-15 gasoline.
22. A retail dealer may apply for an E-15 incompatible
3infrastructure waiver order as described in subsection 1 by
4submitting an application to the department in a manner and
5according to procedures required by the department.
6a. The application must be supported by credible evidence
7that the retail dealer is unable to comply with the E-15
8access standard because the motor fuel storage and dispensing
9infrastructure located at the retail motor fuel site is not
10compatible with the use of E-15 gasoline and that the retail
11dealer is eligible for a class 1 or class 2 waiver as provided
12in this section.
13b. The application must provide information required to
14be completed by the retail dealer, which must include an
15inventory and description of motor fuel storage and dispensing
16infrastructure located at the retail motor fuel site.
17c. The department may require a retail dealer to attach any
18supporting documentation to the application, which may include
19an inspection report completed by a person certified by the
20department as a professional retail motor fuel site installer.
21The certified professional retail motor fuel site installer
22may be a licensed engineer or other person who the department
23determines is qualified by education, testing, or experience to
24oversee a project involving the installation, replacement, or
25conversion of motor fuel storage and dispensing infrastructure,
26and who is able to provide a reliable estimate of the project’s
27costs.
28d. The department shall review and evaluate an application
29to determine whether it is supported by credible evidence
30sufficient for the secretary to issue an order granting a
31waiver under this section. The department shall approve or
32disapprove a completed application within one hundred twenty
33days following the date that the application was delivered to
34the department for filing.
35e. The retail dealer must sign the application which shall
-5-1include a statement that the retail dealer swears and affirms
2that all information in the application completed by the retail
3dealer is true and correct. If a certified professional retail
4motor fuel site installer completes an inspection report to
5support an application, the installer shall sign a statement
6that the installer swears and affirms that all information in
7the inspection report completed by the installer is true and
8correct.
9f. The department may inspect the premises of a retail
10motor fuel site during normal business hours to administer and
11enforce the provisions of this section.
12g. The department of agriculture and land stewardship
13may cooperate with the department of natural resources and
14the state fire marshal in administering and enforcing the
15provisions of this section.
163. The department shall publish a copy of the E-15
17incompatible infrastructure waiver order on the department’s
18internet site within ten days after the order’s issuance. The
19order shall take effect on its date of publication, unless the
20order specifies a later date.
214. a. The secretary of agriculture shall terminate the
22E-15 incompatible infrastructure waiver order if a terminable
23event has occurred. A terminable event is limited to any of
24the following:
25(1) The failure of a retail dealer to be licensed as
26required under section 214.2 to use a commercial weighing and
27measuring device when dispensing gasoline.
28(2) The cessation of the retail dealer’s business of
29advertising for sale or selling gasoline at the retail motor
30fuel site.
31(3) The installation, replacement, or conversion of a motor
32fuel storage tank located at the retail motor fuel site.
33b. The department may require that a retail dealer
34notify the department that a terminable event as described
35in paragraph “a” is planned to occur, is occurring, or has
-6-1occurred.
25. a. The secretary of agriculture shall issue an E-15
3incompatible infrastructure class 1 waiver order as provided in
4this subsection. If the department determines an inspection of
5the retail motor fuel site is necessary, it may either conduct
6the inspection or accept an inspection report completed by a
7certified professional retail motor fuel site installer.
8b. The order must be supported by credible evidence that
9all motor fuel storage tanks used to store gasoline that are
10located at the retail motor fuel site fall within any of the
11following categories:
12(1) Each motor fuel storage tank not constructed of
13fiberglass was installed during or prior to 1985.
14(2) Each motor fuel storage tank constructed of fiberglass
15was installed during or prior to the following years:
16(a) For a double-wall fiberglass underground motor fuel
17storage tank, 1991.
18(b) For a single-wall fiberglass underground motor fuel
19storage tank, 1996.
206. The secretary of agriculture shall issue an E-15
21incompatible infrastructure class 2 waiver order as provided
22in this subsection. The order shall be based on an inspection
23of the retail motor fuel site. The department may file and
24review a completed inspection report submitted by a certified
25professional retail motor fuel site installer.
26a. The inspection report must be supported by credible
27evidence and include all of the following:
28(1) A completed checklist of items adopted as part of a form
29used by the department to confirm that the motor fuel storage
30and dispensing infrastructure located at the retail motor fuel
31site is not compatible with E-15 gasoline.
32(2) The total estimated cost of improving the retail
33motor fuel site to comply with the E-15 access standard by
34installing, replacing, or converting the motor fuel storage
35and dispensing infrastructure located at the retail motor fuel
-7-1site.
2b. (1) The department shall determine whether to issue an
3E-15 incompatible infrastructure class 2 waiver order based
4on an eligibility assessment which shall calculate all of the
5following:
6(a) The total estimated cost of improvement which equals the
7total estimated cost of improving the retail motor fuel site to
8comply with the E-15 access standard based on the department’s
9analysis of the inspection report described in paragraph “a”.
10The total estimated cost of improvement shall only include
11costs used to calculate the amount of financial incentives
12that may be awarded by the renewable fuel infrastructure
13board to a retail dealer participating in the renewable fuel
14infrastructure program for retail motor fuel sites as provided
15in section 159A.14.
16(b) The E-15 infrastructure base amount which equals the
17maximum cost necessary to be incurred by the retail dealer
18in order to receive the total amount of standard financial
19incentives that could be awarded to the retail dealer under the
20renewable fuel infrastructure program for retail motor fuel
21sites as provided in section 159A.14 in order to comply with
22the E-15 access standard. The department’s calculation shall
23not include any of the following:
24(i) The amount of any prior financial incentives awarded
25to the retail dealer under the renewable fuel infrastructure
26program for retail motor fuel sites.
27(ii) Whether the retail dealer is applying for or may be
28awarded any future financial incentives under the renewable
29fuel infrastructure program for retail motor fuel sites.
30(2) A retail dealer is only eligible to be issued an
31E-15 incompatible infrastructure class 2 waiver order if
32the department determines that the total estimated cost of
33improvement as described in subparagraph (1), subparagraph
34division (a), exceeds the E-15 infrastructure base amount as
35described in subparagraph (1), subparagraph division (b).
-8- 17. a. This section shall be implemented on January 1, 2023.
2b. This subsection is repealed January 2, 2023.
38. This section is repealed January 1, 2041.
4 Sec. 6. NEW SECTION. 214A.36 Disciplinary action.
51. The department may refuse to issue or renew and may
6suspend or revoke a license issued to a retail dealer pursuant
7to section 214.2 for not complying with the E-15 access
8standard as provided in section 214A.32, including rules
9adopted by the department pursuant to section 214A.1A to
10administer or enforce that section.
112. a. This section shall be implemented on January 1, 2023.
12b. This subsection is repealed January 2, 2023.
13 Sec. 7. ISSUANCE OF ORDERS SUSPENDING OR WAIVING E-15 ACCESS
14STANDARD.
151. The governor may issue an E-15 access standard suspension
16order as provided in section 214A.33, as enacted in this part
17of this division of this Act, prior to January 1, 2023, if the
18governor determines it is necessary to issue the order prior
19to that date.
202. The secretary of agriculture may issue an E-15
21unavailability waiver order as provided in section 214A.34, as
22enacted in this part of this division of this Act, prior to
23January 1, 2023, if the secretary determines it is necessary to
24issue the order prior to that date.
253. The secretary of agriculture may issue an E-15
26incompatible infrastructure waiver order as provided in section
27214A.35, as enacted in this part of this division of this Act,
28prior to January 1, 2023, if the secretary determines it is
29necessary to issue the order prior to that date.
30 Sec. 8. ADOPTION OF RULES IMPLEMENTING E-15 ACCESS STANDARD
31AND E-15 INCOMPATIBLE INFRASTRUCTURE WAIVER ORDER.
321. The department of agriculture and land stewardship
33shall adopt rules pursuant to chapter 17A prior to January 1,
342023, as necessary to administer and enforce the E-15 access
35standard, as provided in section 214A.32, as enacted in this
-9-1part of this division of this Act.
22. The department of agriculture and land stewardship shall
3adopt rules pursuant to chapter 17A prior to January 1, 2023,
4as necessary to administer and enforce an E-15 incompatible
5infrastructure waiver order, as provided in section 214A.35, as
6enacted in this part of this division of this Act.
7PART B
8RELATED RENEWABLE FUELS AND INFRASTRUCTURE PROVISIONS
9 Sec. 9. Section 159A.6, subsection 1, paragraph c, Code
102022, is amended by striking the paragraph.
11 Sec. 10. Section 214.1, Code 2022, is amended by adding the
12following new subsections:
13 NEW SUBSECTION. 1A. “Department” means the department of
14agriculture and land stewardship.
15 NEW SUBSECTION. 1B. “E-15 gasoline” or “E-15” means the
16same as defined in section 214A.1.
17 NEW SUBSECTION. 3A. “Motor fuel dispenser” or “dispenser”
18means equipment that is the part of motor fuel storage
19and dispensing infrastructure that includes mechanical or
20electrical systems that operate a motor fuel pump dispensing
21motor fuel from a motor fuel storage tank to the end point of
22the equipment’s nozzle.
23 NEW SUBSECTION. 4A. a. “Motor fuel storage and dispensing
24infrastructure” or “infrastructure” means equipment used to do
25any of the following:
26(1) Store and dispense motor fuel.
27(2) Store, blend, and dispense motor fuel.
28b. “Motor fuel storage and dispensing infrastructure” or
29“infrastructure” includes but is not limited to a motor fuel
30storage tank, motor fuel pump or motor fuel blender pump, motor
31fuel dispenser, and associated pipes, hoses, nozzles, tubes,
32lines, fittings, valves, filters, seals, and covers.
33 Sec. 11. Section 214.1, subsections 3, 4, and 5, Code 2022,
34are amended to read as follows:
353. “Motor fuel blender pump” or “blender pump” means a motor
-10-1fuel meter pump that measures and dispenses a type of motor
2fuel that is blended from to formulate two or more different
3types classifications of that motor fuels and which may
4dispense more than one type of blended motor fuel.
54. “Motor fuel pump” means the part of motor fuel storage
6and dispensing infrastructure that is a meter or similar
7commercial weighing and measuring device used to measure and
8dispense motor fuel originating from a motor fuel storage tank,
9on a retail basis.
105. “Motor fuel storage tank” or “storage tank” means the part
11of motor fuel storage and dispensing infrastructure that is an
12aboveground or belowground container that is constituting a
13fixture used to store an accumulation of motor fuel.
14 Sec. 12. Section 214.9, Code 2022, is amended to read as
15follows:
16214.9 Self-service motor fuel pumps dispensers.
17A self-service motor fuel dispenser operating a motor fuel
18 pump located at a retail motor fuel site may be equipped with
19an automatic latch-open device on the fuel dispensing hose
20nozzle only if the nozzle valve is the automatic closing type.
21 Sec. 13. NEW SECTION. 214.12 Inspections of motor fuel
22dispensers — E-15 access standard.
231. In conducting an inspection under section 214.11, an
24inspector for the department shall determine if a retail dealer
25is advertising for sale and selling E-15 gasoline at a retail
26motor fuel site in compliance with the E-15 access standard as
27provided in section 214A.32.
282. a. This section shall be implemented on January 1, 2023.
29b. This subsection is repealed January 2, 2023.
30 Sec. 14. Section 214A.1, Code 2022, is amended by adding the
31following new subsections:
32 NEW SUBSECTION. 2A. “B-20 biodiesel fuel” or “B-20” means
33a classification of biodiesel blended fuel formulated with a
34percentage of twenty percent by volume of biodiesel, if the
35formulation meets the standards provided in section 214A.2.
-11-1 NEW SUBSECTION. 12A. “E-15 gasoline” or “E-15” means a
2classification of ethanol blended gasoline formulated with a
3percentage of fifteen percent by volume of ethanol, if the
4formulation meets the standards provided in section 214A.2.
5 NEW SUBSECTION. 18A. “Motor fuel dispenser” or “dispenser”
6means the same as defined in section 214.1.
7 NEW SUBSECTION. 19A. “Motor fuel storage and dispensing
8infrastructure” or “infrastructure” means the same as defined
9in section 214.1.
10 Sec. 15. NEW SECTION. 214A.1A Rules.
11The department shall adopt rules necessary to administer and
12enforce this chapter in conjunction with chapter 214.
13 Sec. 16. Section 214A.2, subsection 1, Code 2022, is amended
14to read as follows:
151. The department shall adopt rules pursuant to chapter
1617A for carrying out this chapter. The rules may include but
17are not limited to specifications section 214A.1A relating
18to standards and classifications for types of motor fuel,
19including but not limited to gasoline and diesel fuel. The
20rules shall provide standards and classifications for a
21 renewable fuel such as ethanol blended gasoline, biobutanol
22blended gasoline, biodiesel, biodiesel blended fuel, and
23motor renewable fuel components such as an a biofuel or other
24 oxygenate. In the interest of uniformity, the department shall
25adopt by reference other specifications standards relating to
26tests and standards specifications for types of motor fuel,
27including renewable fuel and motor fuel components, established
28by the United States environmental protection agency and
29A.S.T.M. international.
30 Sec. 17. Section 214A.2, subsection 4, paragraph b, Code
312022, is amended by adding the following new subparagraph:
32 NEW SUBPARAGRAPH. (5) (a) Biodiesel blended fuel
33classified as higher than B-20 must conform to standards
34adopted by the department.
35(b) The rules adopted by the department of agriculture
-12-1and land stewardship establishing standards for biodiesel
2blended fuel classified as higher than B-20 shall take effect
3not earlier than sixty days after the date of filing in
4accordance with section 17A.5, subsection 2, paragraph “a”. The
5department of agriculture and land stewardship shall notify
6the legislative services agency, the governor, the department
7of natural resources, and the department of revenue of the
8effective date of the rules at least thirty days prior to the
9effective date of the rules.
10 Sec. 18. Section 214A.3, subsection 2, paragraph b,
11subparagraph (1), Code 2022, is amended by striking the
12subparagraph and inserting in lieu thereof the following:
13(1) A person shall not knowingly falsely advertise ethanol
14blended gasoline by using an inaccurate classification as
15provided in section 214A.2.
16 Sec. 19. Section 214A.3, subsection 2, paragraph b,
17subparagraphs (2) and (3), Code 2022, are amended to read as
18follows:
19(2) A person shall not knowingly falsely advertise
20biobutanol blended gasoline by using an inaccurate designation
21 classification as provided in section 214A.2.
22(3) A person shall not knowingly falsely advertise
23biodiesel blended fuel by using an inaccurate designation
24 classification as provided in section 214A.2.
25 Sec. 20. Section 214A.8, Code 2022, is amended to read as
26follows:
27214A.8 Prohibition.
28A dealer shall not knowingly sell motor fuel or biofuel
29in the state that fails to meet applicable standards and
30classifications as provided in section 214A.2.
31 Sec. 21. Section 214A.11, subsection 2, Code 2022, is
32amended by adding the following new paragraphs:
33 NEW PARAGRAPH. c. (1) A retail dealer who submits
34an application for an E-15 unavailability waiver order
35under section 214A.34 that the retail dealer knows includes
-13-1information that is not true and correct commits perjury as
2provided in section 720.2.
3(2) (a) This paragraph “c” shall be implemented on January
41, 2023.
5(b) This subparagraph is repealed January 2, 2023.
6 NEW PARAGRAPH. d. (1) A retail dealer who submits an
7application for an E-15 incompatible infrastructure waiver
8order under section 214A.35 that the retail dealer knows is not
9true and correct commits perjury as provided in section 720.2.
10(2) A certified professional retail motor fuel site
11installer who submits an inspection report as part of an
12application for an E-15 incompatible infrastructure waiver
13order under section 214A.35 that the installer knows is not
14true and correct commits perjury under section 720.2.
15(3) (a) This paragraph “d” shall be implemented on January
161, 2023.
17(b) This subparagraph is repealed on January 2, 2023.
18 Sec. 22. Section 214A.20, Code 2022, is amended to read as
19follows:
20214A.20 Limitation on liability.
211. A retail dealer or other marketer, pipeline company,
22refiner, terminal operator, or terminal owner is not liable for
23damages caused by the use of incompatible motor fuel dispensed
24from a motor fuel dispenser located at the retail dealer’s
25retail motor fuel site, if all of the following apply:
26a. The incompatible motor fuel complies with the
27specifications standards for a that type and classification of
28motor fuel as provided in section 214A.2.
29b. The incompatible motor fuel is selected by the end use
30 consumer of the motor fuel.
31c. The incompatible motor fuel is dispensed from a motor
32fuel pump dispenser that correctly labels the type and
33classification of fuel dispensed from a motor fuel storage
34tank.
352. For purposes of this section subsection 1, a motor fuel
-14-1is incompatible with a motor according to the manufacturer of
2the motor.
3 Sec. 23. REPEAL. Section 214A.16, Code 2022, is repealed.
4PART C
5CODE ORGANIZATION
6 Sec. 24. DIRECTIONS TO THE CODE EDITOR — TRANSFERS.
71. The Code editor is directed to make the following
8transfers:
9a. Section 214A.3, as amended in this division of this Act,
10to section 214A.21.
11b. Section 214A.7 to section 214A.22.
12c. Section 214A.8, as amended in this division of this Act,
13to section 214A.23.
14d. Section 214A.19 to section 214A.24.
15e. Section 214A.20, as amended in this division of this Act,
16to section 214A.25.
172. The Code editor shall correct internal references in the
18Code and in any enacted legislation as necessary due to the
19enactment of this section.
20 Sec. 25. DIRECTIONS TO THE CODE EDITOR — SUBCHAPTERS. The
21Code editor is directed to divide the provisions of chapter
22214A, as amended, enacted, or transferred in this division of
23this Act, into subchapters as follows:
241. Subchapter I, including sections 214A.1 through 214A.20.
252. Subchapter II, including sections 214A.21 through
26214A.30.
273. Subchapter III, including sections 214A.31 through
28214A.36.
29DIVISION II
30COMPLIANCE REQUIREMENTS — RENEWABLE FUEL infrastructure
31PART A
32principAL provisions
33 Sec. 26. NEW SECTION. 455G.2A Standards and classifications
34of motor fuel.
35For purposes of this chapter, motor fuel must meet the
-15-1standards and classifications as provided in section 214A.2.
2 Sec. 27. NEW SECTION. 455G.30 Definitions.
3As used in this subchapter, unless the context otherwise
4requires:
51. “Biodiesel blended fuel” means the same as defined in
6section 214A.1.
72. “Department” means the department of natural resources.
83. “Diesel fuel” means the same as defined in section
9214A.1.
104. “Diesel fuel storage and dispensing infrastructure” or
11“diesel infrastructure” means motor fuel storage and dispensing
12infrastructure as defined in section 214.1 used to store and
13dispense diesel fuel, including biodiesel blended diesel fuel,
14at a retail motor fuel site as defined in section 214A.1.
155. “Ethanol blended gasoline” means the same as defined in
16section 214A.1.
176. “Gasoline storage and dispensing infrastructure”
18or “gasoline infrastructure” means motor fuel storage and
19dispensing infrastructure as defined in section 214.1 used
20to store and dispense gasoline, including ethanol blended
21gasoline, at a retail motor fuel site as defined in section
22214A.1.
237. “Retail dealer” means the same as defined in section
24214A.1.
25 Sec. 28. Section 455G.31, subsections 1 and 3, Code 2022,
26are amended by striking the subsections.
27 Sec. 29. Section 455G.31, subsection 2, Code 2022, is
28amended to read as follows:
292. A Subject to section 455G.32, a retail dealer may
30use gasoline storage and dispensing infrastructure to store
31and dispense ethanol blended gasoline classified as E-9
32 E-10 or higher if the department of natural resources under
33this subchapter or the state fire marshal under chapter 101
34determines that it the gasoline infrastructure is compatible
35with the classification of ethanol blended gasoline being used.
-16-1 Sec. 30. NEW SECTION. 455G.32 E-85 gasoline compatible
2infrastructure — compliance requirement.
31. A retail dealer shall not install, replace, or convert
4gasoline storage and dispensing infrastructure used to store
5and dispense ethanol blended gasoline classified as E-15 or
6higher, unless the installed, replaced, or converted gasoline
7infrastructure is capable of storing and dispensing ethanol
8blended gasoline classified as E-85.
92. The infrastructure must be all of the following:
10a. Listed as compatible for use with ethanol blended
11gasoline classified as E-85 by an independent testing
12laboratory or as approved by the manufacturer.
13b. Approved by the department or state fire marshal subject
14to conditions determined necessary by the department or state
15fire marshal. The department or state fire marshal may waive
16the requirement in paragraph “a” upon satisfaction that a
17substitute requirement serves the same purpose.
18 Sec. 31. NEW SECTION. 455G.33 B-20 diesel fuel compatible
19infrastructure — compliance requirement.
201. A retail dealer shall not install, replace, or convert
21diesel fuel storage and dispensing infrastructure unless the
22installed, replaced, or converted diesel fuel infrastructure
23is capable of storing and dispensing biodiesel blended fuel
24classified as B-20 or higher.
252. The infrastructure must be all of the following:
26a. Listed as compatible for use with biodiesel blended
27fuel classified as B-20 or higher by an independent testing
28laboratory or as approved by the manufacturer.
29b. Approved by the department or state fire marshal subject
30to conditions determined necessary by the department or state
31fire marshal. The department or state fire marshal may waive
32the requirement in paragraph “a” upon satisfaction that a
33substitute requirement serves the same purpose.
34 Sec. 32. EFFECTIVE DATE. This part of this division of this
35Act takes effect January 1, 2023.
-17-1PART B
2IMPLEMENTATION
3 Sec. 33. ADMINISTRATIVE RULES. The department of natural
4resources and the state fire marshal may adopt rules under
5chapter 17A prior to the effective date of part A of this
6division of this Act, which rules shall take effect January 1,
72023.
8DIVISION III
9COMPLIANCE REQUIREMENTS — Qualified RENEWABLE FUEL USE BY
10STATE MOTOR VEHICLES
11 Sec. 34. NEW SECTION. 8A.360 Special definitions.
12As used in this part, unless the context otherwise requires:
131. “Biodiesel blended fuel” means the same as defined in
14section 214A.1.
152. “Biofuel” means the same as defined in section 214A.1.
163. “Determination period” means any twelve-month period
17beginning January 1 and ending December 31.
184. “Ethanol blended gasoline” means the same as defined in
19section 214A.1.
205. “Qualified renewable fuel” means ethanol blended
21gasoline or biodiesel blended fuel that meets the standards
22and classifications for that type of motor fuel as provided in
23section 214A.2.
24 Sec. 35. NEW SECTION. 8A.360A Classification of qualified
25renewable fuels.
26For purposes of this part, a qualified renewable fuel must
27meet the same standards and classifications as provided in
28section 214A.2.
29 Sec. 36. Section 8A.362, subsection 3, paragraph b, Code
302022, is amended by striking the paragraph and inserting in
31lieu thereof the following:
32b. The director shall provide for the purchase and operation
33of motor vehicles using qualified renewable fuels and for the
34purchase of qualified renewable fuels used to operate those
35motor vehicles as provided in section 8A.368.
-18-1 Sec. 37. NEW SECTION. 8A.368 Motor vehicle purchases —
2qualified renewable fuels.
31. A motor vehicle operating using an internal combustion
4engine powered by gasoline or diesel fuel as described in
5section 8A.362 shall use the highest possible classification of
6a qualified renewable fuel if all of the following apply:
7a. The manufacturer of the motor vehicle or the United
8States environmental protection agency expressly states that
9the classification of a qualified renewable fuel is compatible
10with the motor vehicle’s normal operation.
11b. That classification of a qualified renewable fuel is
12commercially available in the region where the motor vehicle
13is being operated.
14c. No emergency situation exists that requires the immediate
15use of a motor fuel regardless of whether it has been blended
16with a biofuel.
172. If the highest possible classification of a qualified
18renewable fuel is available to power an engine used to operate
19a motor vehicle as provided in subsection 1, a state-issued
20credit card shall not be used to purchase motor fuel other than
21that classification of a qualified renewable fuel.
223. A motor vehicle subject to this section shall be affixed
23with a brightly colored, highly visible renewable fuel sticker.
24The qualified renewable fuel sticker shall be designed by
25the department of agriculture and land stewardship to notify
26the traveling public that the motor vehicle is operating
27using an internal combustion engine powered by the highest
28possible classification of that qualified renewable fuel. The
29department of administrative services shall distribute the
30stickers to state agencies maintaining a state motor pool.
31However, a qualified renewable fuel sticker is not required to
32be affixed to an unmarked motor vehicle used for purposes of
33providing law enforcement or security.
344. As part of the department’s competitive bidding
35procedure for the purchase of a motor vehicle operating using
-19-1an internal combustion engine powered by diesel fuel, the
2director shall require a bidder to certify that the motor
3vehicle’s manufacturer expressly states that the engine is
4capable of being powered by biodiesel blended fuel classified
5as B-20 or higher.
6 Sec. 38. NEW SECTION. 8A.369 Motor vehicle purchases —
7qualified renewable fuels — reports.
81. The department shall compile information regarding the
9department’s compliance with section 8A.368 during the previous
10determination period. The information shall include all of the
11following:
12a. Of the motor vehicles used to routinely travel on the
13state’s highways that operate using internal combustion engines
14powered by gasoline, all of the following:
15(1) The total number of such motor vehicles according to
16model year.
17(2) The total number of such motor vehicles according
18to model year that are capable of operating using internal
19combustion engines powered by ethanol blended gasoline
20classified as E-15 and E-85 according to the express warranty
21of the motor vehicle’s manufacturer.
22(3) The total number of gallons of ethanol blended gasoline
23classified as E-15, and the total number of gallons of ethanol
24blended gasoline classified as E-85, purchased during the
25preceding determination period, to the extent such information
26may be practically obtained.
27b. Of the motor vehicles used to routinely travel on the
28state’s highways that operate using internal combustion engines
29powered by diesel fuel, all of the following:
30(1) The total number of such motor vehicles according to
31model year.
32(2) The total number of such motor vehicles according
33to model year that are capable of operating using internal
34combustion engines powered by biodiesel blended fuel classified
35as B-20 or higher according to the express warranty of the
-20-1motor vehicle’s manufacturer.
2(3) The total number of gallons of biodiesel blended fuel
3classified as B-20 or higher purchased during the preceding
4determination period, to the extent such information may be
5practically obtained.
62. The department of administrative services shall
7prepare a state fleet qualified renewable fuels compliance
8report which shall consolidate information compiled by the
9department under subsection 1 together with information
10compiled by the commission for the blind pursuant to section
11216B.3, institutions governed by the state board of regents
12pursuant to section 262.25A, the department of transportation
13pursuant to section 307.21, and the department of corrections
14pursuant to section 904.312A. The department of administrative
15services shall submit the state fleet qualified renewable fuels
16compliance report to the governor and general assembly not
17later than March 1 of each year.
18 Sec. 39. Section 216B.3, subsection 16, paragraph a, Code
192022, is amended by striking the paragraph and inserting in
20lieu thereof the following:
21a. Provide for the purchase of qualified renewable fuels
22to power internal combustion engines that are used to operate
23motor vehicles and for the purchase of motor vehicles operating
24using engines powered by qualified renewable fuels in the
25same manner required for the director of the department of
26administrative services pursuant to section 8A.368. The
27commission shall compile information regarding compliance
28with the provisions of this paragraph in the same manner as
29the department of administrative services pursuant to section
308A.369. The commission shall cooperate with the department
31of administrative services in preparing the annual state
32fleet qualified renewable fuels compliance report regarding
33compliance with this paragraph as provided in section 8A.369.
34 Sec. 40. Section 262.25A, subsection 2, Code 2022, is
35amended by striking the subsection and inserting in lieu
-21-1thereof the following:
22. An institution shall provide for the purchase of
3qualified renewable fuels to power internal combustion engines
4that are used to operate motor vehicles and for the purchase
5of motor vehicles operating using engines powered by qualified
6renewable fuels in the same manner required for the director of
7the department of administrative services pursuant to section
88A.368. An institution shall compile information regarding
9compliance with the provisions of this subsection in the same
10manner as the department of administrative services pursuant
11to section 8A.369. The state board of regents shall cooperate
12with the department of administrative services in preparing
13the annual state fleet qualified renewable fuels compliance
14report regarding compliance with this subsection as provided
15in section 8A.369.
16 Sec. 41. Section 307.21, subsection 4, Code 2022, is amended
17by striking the subsection and inserting in lieu thereof the
18following:
194. The administrator shall provide for the purchase
20of qualified renewable fuels to power internal combustion
21engines that are used to operate motor vehicles and for the
22purchase of motor vehicles operating using engines powered
23by qualified renewable fuels in the same manner required for
24the director of the department of administrative services
25pursuant to section 8A.368. The department of transportation
26shall compile information regarding compliance with the
27provisions of this subsection in the same manner as the
28department of administrative services pursuant to section
298A.369. The department of transportation shall cooperate
30with the department of administrative services in preparing
31the annual state fleet qualified renewable fuels compliance
32report regarding compliance with this subsection as provided
33in section 8A.369.
34 Sec. 42. Section 904.312A, subsection 1, Code 2022, is
35amended by striking the subsection and inserting in lieu
-22-1thereof the following:
21. The department of corrections shall provide for the
3purchase of qualified renewable fuels to power internal
4combustion engines that are used to operate motor vehicles and
5for the purchase of motor vehicles operating using engines
6powered by qualified renewable fuels in the same manner
7required for the director of the department of administrative
8services pursuant to section 8A.368. The department of
9corrections shall compile information regarding compliance
10with the provisions of this subsection in the same manner as
11the department of administrative services pursuant to section
128A.369. The department of corrections shall cooperate with
13the department of administrative services in preparing the
14annual state fleet qualified renewable fuels compliance report
15regarding compliance with this subsection as provided in
16section 8A.369.
17 Sec. 43. STATE FLEET QUALIFIED RENEWABLE FUELS COMPLIANCE
18REPORT. The department of administrative services shall submit
19its first state fleet qualified renewable fuels compliance
20report as required pursuant to section 8A.369, as enacted in
21this division of this Act, not later than July 1, 2023.
22DIVISION IV
23RENEWABLE FUEL STANDARDS AND
24CLASSIFICATIONS — PROMOTIONAL INITIATIVES APPLIED
25TO INCOME TAXES
26PART A
27E-85 GASOLINE PROMOTION TAX CREDIT
28 Sec. 44. Section 422.11O, subsection 2, paragraph b, Code
292022, is amended to read as follows:
30b. The tax credit shall apply to E-85 gasoline that meets
31the standards for that classification as provided in section
32214A.2.
33 Sec. 45. Section 422.11O, subsection 5, Code 2022, is
34amended to read as follows:
355. a. A retail dealer is eligible to claim an E-85 gasoline
-23-1promotion tax credit as provided in this section even though
2the retail dealer claims an E-15 plus gasoline promotion tax
3credit pursuant to section 422.11Y for the same tax year.
4b. This subsection is repealed January 1, 2026.
5 Sec. 46. Section 422.11O, subsection 8, Code 2022, is
6amended to read as follows:
78. This section is repealed on January 1, 2025 2028.
8 Sec. 47. Section 422.33, subsection 11B, paragraph c, Code
92022, is amended to read as follows:
10c. This subsection is repealed on January 1, 2025 2028.
11 Sec. 48. 2006 Iowa Acts, chapter 1142, section 49,
12subsection 3, as amended by 2011 Iowa Acts, chapter 113,
13section 20, and 2016 Iowa Acts, chapter 1106, section 6, is
14amended to read as follows:
153. For a retail dealer who may claim an E-85 gasoline
16promotion tax credit under section 422.11O or 422.33,
17subsection 11B, as enacted in this Act and amended in
18subsequent Acts, in calendar year 2024 2027 and whose tax
19year ends prior to December 31, 2024 2027, the retail dealer
20may continue to claim the tax credit in the retail dealer’s
21following tax year. In that case, the tax credit shall be
22calculated in the same manner as provided in section 422.11O
23or 422.33, subsection 11B, as enacted in this Act and amended
24in subsequent Acts, for the remaining period beginning on the
25first day of the retail dealer’s new tax year until December
2631, 2024 2027. For that remaining period, the tax credit shall
27be calculated in the same manner as a retail dealer whose tax
28year began on the previous January 1 and who is calculating the
29tax credit on December 31, 2024 2027.
30PART B
31BIODIESEL BLENDED FUEL TAX CREDIT
32 Sec. 49. Section 422.11P, subsection 3, paragraph b, Code
332022, is amended to read as follows:
34b. The tax credit shall apply to biodiesel blended fuel
35classified as provided in this section, if the classification
-24-1meets the standards provided in section 214A.2. In ensuring
2that biodiesel blended fuel meets the classification
3requirements of this section, the department shall take
4into account reasonable variances due to testing and other
5limitations. The department shall adopt rules to provide that
6where a blending error occurs and an insufficient amount of
7biodiesel has inadvertently been blended with petroleum-based
8diesel fuel so that the mixture fails to qualify as B-11 or
9higher a one percent tolerance applies when classifying the
10biodiesel blended fuel. If the biodiesel blended fuel does not
11meet the required classification after applying a one percent
12tolerance, the department shall adopt rules to determine the
13classification based on the retail dealer’s records of the
14volume of biodiesel blended with diesel fuel.
15 Sec. 50. Section 422.11P, subsection 4, Code 2022, is
16amended by striking the subsection and inserting in lieu
17thereof the following:
184. A retail dealer whose tax year is on a calendar
19year basis shall calculate the amount of the tax credit by
20multiplying a designated rate by the retail dealer’s total
21biodiesel blended fuel gallonage as provided in section 452A.31
22which qualifies under this subsection.
23a. In order to qualify for the tax credit, the biodiesel
24blended fuel must be classified as B-11 or higher as provided
25in paragraph “b”.
26b. The designated rate is determined as follows:
27(1) For biodiesel blended fuel classified as B-11 or higher
28but not as high as B-20, the designated rate is five cents.
29(2) For biodiesel blended fuel classified as B-20 or higher
30but not as high as B-30, the designated rate is seven cents.
31However, a classification higher than B-20 does not qualify
32for a tax credit under this subparagraph unless standards for
33that classification have been established by the department of
34agriculture and land stewardship pursuant to section 214A.2.
35(3) For biodiesel blended fuel classified as B-30 or
-25-1higher, the designated rate is ten cents. A classification of
2B-30 or higher does not qualify for a tax credit under this
3subparagraph unless standards for that classification have
4been established by the department of agriculture and land
5stewardship pursuant to section 214A.2.
6 Sec. 51. Section 422.11P, subsection 8, Code 2022, is
7amended to read as follows:
88. This section is repealed January 1, 2025 2028.
9 Sec. 52. Section 422.33, subsection 11C, paragraph c, Code
102022, is amended to read as follows:
11c. This subsection is repealed on January 1, 2025 2028.
12 Sec. 53. 2011 Iowa Acts, chapter 113, section 31, as amended
13by 2016 Iowa Acts, chapter 1106, section 10, is amended to read
14as follows:
15SEC. 31. TAX CREDIT AVAILABILITY. For a retail dealer
16who may claim a biodiesel blended fuel promotion tax credit
17under section 422.11P or 422.33, subsection 11C, as amended
18in this Act and amended in subsequent Acts, in calendar year
192024 2027, and whose tax year ends prior to December 31, 2024
20 2027, the retail dealer may continue to claim the tax credit in
21the retail dealer’s following tax year. In that case, the tax
22credit shall be calculated in the same manner as provided in
23section 422.11P or 422.33, subsection 11C, as amended in this
24Act and amended in subsequent Acts, for the remaining period
25beginning on the first day of the retail dealer’s new tax year
26until December 31, 2024 2027. For that remaining period, the
27tax credit shall be calculated in the same manner as a retail
28dealer whose tax year began on the previous January 1 and who
29is calculating the tax credit on December 31, 2024 2027.
30 Sec. 54. EFFECTIVE DATE. This part of this division of this
31Act takes effect January 1, 2023.
32PART C
33E-15 PLUS GASOLINE PROMOTION TAX CREDIT
34 Sec. 55. Section 422.11Y, subsection 4, Code 2022, is
35amended by striking the subsection and inserting in lieu
-26-1thereof the following:
24. A retail dealer whose tax year is on a calendar
3year basis shall calculate the amount of the tax credit by
4multiplying a designated rate by the retail dealer’s total
5ethanol blended gasoline gallonage as provided in section
6452A.31 which qualifies under this subsection.
7a. In order to qualify for the tax credit, the ethanol
8blended gasoline must be classified as E-15 or higher but must
9not be E-85 gasoline.
10b. The designated rate of the tax credit is nine cents.
11 Sec. 56. Section 422.11Y, subsection 9, Code 2022, is
12amended to read as follows:
139. This section is repealed on January 1, 2025 2026.
14 Sec. 57. Section 422.33, subsection 11D, paragraph c, Code
152022, is amended to read as follows:
16c. This subsection is repealed on January 1, 2025 2026.
17 Sec. 58. 2011 Iowa Acts, chapter 113, section 37, as amended
18by 2016 Iowa Acts, chapter 1106, section 3, is amended to read
19as follows:
20SEC. 37. TAX CREDIT AVAILABILITY. For a retail dealer who
21may claim an E-15 plus gasoline promotion tax credit under
22section 422.11Y or 422.33, subsection 11D, as enacted in this
23Act and amended in subsequent Acts, in calendar year 2024
24 2025, and whose tax year ends prior to December 31, 2024 2025,
25the retail dealer may continue to claim the tax credit in the
26retail dealer’s following tax year. In that case, the tax
27credit shall be calculated in the same manner as provided in
28section 422.11Y or 422.33, subsection 11D, as enacted in this
29Act and amended in subsequent Acts, for the remaining period
30beginning on the first day of the retail dealer’s new tax year
31until December 31, 2024 2025. For that remaining period, the
32tax credit shall be calculated in the same manner as a retail
33dealer whose tax year began on the previous January 1 and who
34is calculating the tax credit on December 31, 2024 2025.
35 Sec. 59. EFFECTIVE DATE. This part of this division of this
-27-1Act takes effect January 1, 2023.
2PART D
3ADMINISTRATION
4 Sec. 60. ADMINISTRATIVE RULES. The department of revenue
5may adopt rules under chapter 17A prior to the effective date
6of parts B and C of this division of this Act, which rules shall
7take effect January 1, 2023.
8DIVISION V
9RENEWABLE FUEL STANDARDS
10AND CLASSIFICATIONS — PROMOTIONAL INITIATIVES APPLIED
11TO EXCISE TAX ON ETHANOL BLENDED GASOLINE AND BIODIESEL BLENDED
12FUEL
13PART A
14REPORTING REQUIREMENTS
15 Sec. 61. Section 452A.2, Code 2022, is amended by adding the
16following new subsection:
17 NEW SUBSECTION. 37A. “Renewable fuel” means the same as
18defined in section 214A.1.
19 Sec. 62. NEW SECTION. 452A.2A Standards and classifications
20of fuel.
21For purposes of this chapter, motor fuel, including
22a renewable fuel, must meet the same standards and
23classifications as provided in section 214A.2.
24 Sec. 63. Section 452A.31, subsection 2, paragraph a,
25subparagraph (1), subparagraph division (c), Code 2022, is
26amended to read as follows:
27(c) The total E-15 plus gasoline gallonage which is the
28total number of gallons of ethanol blended gasoline classified
29as E-15 or higher, including E-85 gasoline.
30 Sec. 64. Section 452A.31, subsection 2, paragraph a,
31subparagraph (1), Code 2022, is amended by adding the following
32new subparagraph division:
33 NEW SUBPARAGRAPH DIVISION. (d) The total E-15 gasoline
34gallonage which is the total number of gallons of ethanol
35blended gasoline classified as E-15.
-28-1 Sec. 65. Section 452A.31, subsection 3, paragraph a, Code
22022, is amended to read as follows:
3a. A retail dealer’s total diesel fuel gallonage is the
4total number of gallons of diesel fuel which the retail dealer
5sells and dispenses from all motor fuel pumps operated by
6the retail dealer in this state during a twelve-month period
7beginning January 1 and ending December 31. The retail
8dealer’s total diesel fuel gallonage is divided into the
9following classifications:
10(1) The total biodiesel blended fuel gallonage which is
11the retail dealer’s total number of gallons of biodiesel
12blended fuel. and which includes all of the following
13subclassifications:
14(a) The total B-5 plus gallonage which is the total number
15of gallons of biodiesel blended fuel classified as B-5 or
16higher up to but not including B-11.
17(2) (b) The total B-11 plus gallonage which is the total
18number of gallons of biodiesel blended fuel classified as B-11
19or higher up to but not including B-20.
20(c) The total B-20 plus gallonage which is the total number
21of gallons of biodiesel blended fuel classified as B-20 or
22higher up to but not including B-30.
23(d) The total B-30 plus gallonage which is the total number
24of gallons of biodiesel blended fuel classified as B-30 or
25higher.
26(3) (2) The total nonblended diesel fuel gallonage which
27is the total number of gallons of diesel fuel which is not
28biodiesel or biodiesel blended fuel.
29 Sec. 66. Section 452A.31, subsection 4, paragraph a,
30subparagraph (1), subparagraph division (c), Code 2022, is
31amended to read as follows:
32(c) The aggregate E-15 plus gasoline gallonage which is the
33aggregate total number of gallons of ethanol blended gasoline
34classified as E-15 or higher, including E-85 gasoline.
35 Sec. 67. Section 452A.31, subsection 4, paragraph a,
-29-1subparagraph (1), Code 2022, is amended by adding the following
2new subparagraph division:
3 NEW SUBPARAGRAPH DIVISION. (d) The aggregate E-15 gasoline
4gallonage which is the aggregate total number of gallons of
5ethanol blended gasoline classified as E-15.
6 Sec. 68. Section 452A.31, subsection 5, paragraph a, Code
72022, is amended to read as follows:
8a. The aggregate diesel fuel gallonage is the total number
9of gallons of diesel fuel which all retail dealers sell and
10dispense from all motor fuel pumps operated by the retail
11dealers in this state during a twelve-month period beginning
12January 1 and ending December 31. The aggregate diesel fuel
13gallonage is divided into the following classifications:
14(1) The aggregate biodiesel blended fuel gallonage
15which is the aggregate total number of gallons of biodiesel
16blended fuel. and which includes all of the following
17subclassifications:
18(2) (a) The aggregate B-11 B-5 plus gallonage which is the
19aggregate total number of gallons of biodiesel blended fuel
20classified as B-5 or higher up to but not including B-11 or
21higher.
22(b) The aggregate B-11 plus gallonage which is the aggregate
23total number of gallons of biodiesel blended fuel classified as
24B-11 or higher up to but not including B-20.
25(c) The aggregate B-20 plus gallonage which is the aggregate
26total number of gallons of biodiesel blended fuel classified as
27B-20 or higher up to but not including B-30.
28(d) The aggregate B-30 plus gallonage which is the aggregate
29total number of gallons of biodiesel blended fuel classified
30as B-30 or higher.
31(3) (2) The aggregate nonblended diesel fuel gallonage
32which is the aggregate total number of gallons of diesel fuel
33which is not biodiesel or biodiesel blended fuel.
34 Sec. 69. Section 452A.33, subsection 1, paragraph a,
35unnumbered paragraph 1, Code 2022, is amended to read as
-30-1follows:
2Each retail dealer shall report its total motor fuel
3 gasoline and diesel fuel gallonage for a determination period
4as follows:
5 Sec. 70. Section 452A.33, subsection 1, paragraph b,
6subparagraphs (1) and (2), Code 2022, are amended to read as
7follows:
8(1) The information submitted on a company-wide basis shall
9include the total motor gasoline and diesel fuel gallonage,
10including for each classification and subclassification, sold
11and dispensed by the retail dealer as provided in paragraph “a”
12for all retail motor fuel sites from which the retail dealer
13sells and dispenses motor fuel gasoline or diesel fuel.
14(2) The information submitted on a site-by-site basis shall
15include the total motor gasoline and diesel fuel gallonage,
16including for each classification and subclassification, sold
17and dispensed by the retail dealer as provided in paragraph
18“a” separately for each retail motor fuel site from which the
19retail dealer sells and dispenses motor gasoline or diesel
20 fuel.
21 Sec. 71. Section 452A.33, subsection 1, paragraph c, Code
222022, is amended to read as follows:
23c. The retail dealer shall prepare and submit file the
24report with the department in a manner and according to
25procedures required by the department in compliance with
26section 452A.61. However, the department may require that the
27retail dealer file the report with the department by electronic
28transmission. The department may require that a retail
29dealers report to dealer file the report with the department
30on an annual, quarterly, or monthly basis. The department,
31upon application by a retail dealer, may grant a reasonable
32extension of time to file the report. A retail dealer who
33fails to file the report as required in this section or who
34fails to maintain records required to file the report shall be
35subject to a civil penalty of not more than one hundred dollars
-31-1per occurrence which shall be deposited in the general fund of
2the state.
3 Sec. 72. Section 452A.33, subsection 2, paragraph c, Code
42022, is amended to read as follows:
5c. The report shall not provide information regarding motor
6fuel or gasoline, diesel fuel, or a biofuel which is sold and
7dispensed by an individual retail dealer or at a particular
8retail motor fuel site. The report shall not include a trade
9secret protected as a confidential record pursuant to section
1022.7.
11 Sec. 73. EMERGENCY RULES. The department of revenue may
12adopt emergency rules under section 17A.4, subsection 3, and
13section 17A.5, subsection 2, paragraph “b”, to implement the
14provisions of sections 452A.31 and 452A.33 as amended by
15this part of this division of this Act. Any rules adopted
16in accordance with this section shall also be published as a
17notice of intended action as provided in section 17A.4.
18 Sec. 74. EFFECTIVE DATE. This part of this division of this
19Act, being deemed of immediate importance, takes effect upon
20enactment.
21 Sec. 75. RETROACTIVE APPLICABILITY. This part of this
22division of this Act applies retroactively to January 1, 2022.
23PART B
24EXCISE TAX IMPOSED ON GASOLINE AND DIESEL FUEL
25 Sec. 76. Section 452A.3, subsection 1, paragraph b,
26unnumbered paragraph 1, Code 2022, is amended to read as
27follows:
28On and after July 1, 2026 2030, an excise tax of thirty
29cents is imposed on each gallon of ethanol blended gasoline
30classified as E-15 or higher. Before July 1, 2026 2030, the
31rate of the excise tax on ethanol blended gasoline classified
32as E-15 or higher shall be based on the number of gallons of
33ethanol blended gasoline classified as E-15 or higher that are
34distributed in this state as expressed as a percentage of the
35number of gallons of motor fuel distributed in this state,
-32-1which is referred to as the distribution percentage. For
2purposes of this paragraph “b”, only ethanol blended gasoline
3and nonblended gasoline, not including aviation gasoline, shall
4be used in determining the percentage basis for the excise
5tax. The department shall determine the percentage basis
6for each determination period beginning January 1 and ending
7December 31 based on data information from the reports filed
8 submitted to the department for filing pursuant to section
9452A.33. The rate for the excise tax shall apply for the
10period beginning July 1 and ending June 30 following the end of
11the determination period. Before July 1, 2026 2030, the rate
12of the excise tax on each gallon of ethanol blended gasoline
13classified as E-15 or higher shall be as follows:
14 Sec. 77. Section 452A.3, subsection 3, paragraph a,
15subparagraph (1), Code 2022, is amended to read as follows:
16(1) Except as otherwise provided in this section and in
17this subchapter, the rate of the excise tax on each gallon of
18special fuel for diesel engines of motor vehicles used for any
19purpose for the privilege of operating motor vehicles in this
20state, other than biodiesel blended fuel classified as B-11
21 B-20 or higher, is thirty-two and five-tenths cents per gallon.
22 Sec. 78. Section 452A.3, subsection 3, paragraph a,
23subparagraph (2), unnumbered paragraph 1, Code 2022, is amended
24to read as follows:
25Except as otherwise provided in this section and in this
26subchapter, this subparagraph shall apply to the excise tax
27imposed on each gallon of biodiesel blended fuel classified
28as B-11 B-20 or higher used for any purpose for the privilege
29of operating motor vehicles in this state. On and after July
301, 2026 2030, the rate of the excise tax on each gallon of
31biodiesel blended fuel classified as B-11 B-20 or higher is
32thirty-two and five-tenths cents. Before July 1, 2026 2030,
33the rate of the excise tax on each gallon of biodiesel blended
34fuel classified as B-20 or higher shall be based on the number
35of gallons of biodiesel blended fuel classified as B-11 B-20
-33-1 or higher that are distributed in this state as expressed as a
2percentage of the number of gallons of special fuel for diesel
3engines of motor vehicles distributed in this state, which is
4referred to as the distribution percentage. The department
5shall determine the percentage basis for each determination
6period beginning January 1 and ending December 31 based on data
7 information from the reports filed submitted to the department
8for filing pursuant to section 452A.33. The rate of the excise
9tax shall apply for the period beginning July 1 and ending June
1030 following the end of the determination period. Before July
111, 2026 2030, the rate of the excise tax on each gallon of
12biodiesel blended fuel classified as B-11 B-20 or higher shall
13be as follows:
14 Sec. 79. EFFECTIVE DATE. This part of this division of this
15Act takes effect July 1, 2024.
16PART C
17DEDUCTION OF EXCISE TAX IMPOSED ON BIOFUEL
18USED IN BLENDING WITH GASOLINE AND DIESEL FUEL
19 Sec. 80. Section 452A.8, subsection 2, paragraph a, Code
202022, is amended by adding the following new subparagraph:
21 NEW SUBPARAGRAPH. (3) (a) The gallonage of gasoline or
22diesel fuel withdrawn from a terminal by a licensee to be
23blended with a biofuel after it is withdrawn from the terminal
24to the extent the tax rate on the gasoline or diesel fuel
25exceeds the tax rate which would be due on the ethanol blended
26gasoline or biodiesel blended fuel pursuant to section 452A.3.
27(b) This subparagraph is repealed July 1, 2030.
28DIVISION VI
29RENEWABLE FUEL STANDARDS AND CLASSIFICATIONS — PROMOTIONAL
30INITIATIVES APPLIED TO SALES AND USE TAX — REFUND PAID TO
31BIODIESEL PRODUCERS
32PART A
33PRINCIPAL PROVISIONS
34 Sec. 81. Section 423.4, subsection 9, Code 2022, is amended
35to read as follows:
-34- 19. A person who qualifies as a biodiesel producer as
2provided in this subsection may apply to the director for a
3refund of the amount of the sales or use tax imposed and paid
4upon purchases made by the person.
5a. The person must be engaged in the manufacturing
6of biodiesel who has registered with the United States
7environmental protection agency as a manufacturer according to
8the requirements in 40 C.F.R. §79.4. The biodiesel must be for
9use in biodiesel blended fuel in conformance with the standards
10and classifications in section 214A.2. The person must comply
11with the requirements of this subsection and rules adopted by
12the department pursuant to this subsection.
13b. The amount of the refund shall be calculated by
14multiplying a designated rate by the total number of gallons
15of biodiesel produced by the biodiesel producer in this state
16during each quarter of a calendar year. The designated rate
17shall be two four cents.
18c. A biodiesel producer shall not be eligible to receive
19a refund under this subsection on more than twenty-five
20million gallons of biodiesel produced each calendar year by
21the biodiesel producer at each facility where the biodiesel
22producer manufactures biodiesel.
23d. A person shall obtain a refund by completing forms
24furnished by the department and filed by the person on a
25quarterly basis as required by the department. The department
26shall refund the amount claimed by the person after subtracting
27any amount owing from the sales or use taxes imposed and paid
28upon purchases made by the person.
29e. This subsection is repealed on January 1, 2025 2028.
30 Sec. 82. EFFECTIVE DATE. This part of this division of this
31Act takes effect January 1, 2023.
32PART B
33IMPLEMENTATION
34 Sec. 83. ADMINISTRATIVE RULES. The department of revenue
35may adopt rules under chapter 17A prior to the effective date
-35-1of part A of this division of this Act, which rules shall take
2effect January 1, 2023.
3DIVISION VII
4PROMOTIONAL INITIATIVES — RENEWABLE FUEL INFRASTRUCTURE
5 Sec. 84. Section 159A.11, subsection 6, Code 2022, is
6amended by striking the subsection and inserting in lieu
7thereof the following:
86. “Motor fuel storage and dispensing infrastructure” or
9“infrastructure” means the same as defined in section 214.1.
10 Sec. 85. Section 159A.11, Code 2022, is amended by adding
11the following new subsection:
12 NEW SUBSECTION. 6A. “Motor fuel storage tank” means the
13same as defined in section 214.1.
14 Sec. 86. Section 159A.11, subsection 10, Code 2022, is
15amended by striking the subsection.
16 Sec. 87. Section 159A.12, Code 2022, is amended to read as
17follows:
18159A.12 Classification Standards and classifications of motor
19fuel and renewable fuel.
20For purposes of this subchapter, ethanol blended fuel and
21biodiesel motor fuel shall be classified in the same manner,
22including a renewable fuel, must meet the same standards and
23classifications as provided in section 214A.2.
24 Sec. 88. Section 159A.13, subsection 6, Code 2022, is
25amended by striking the subsection.
26 Sec. 89. Section 159A.14, subsections 1 and 2, Code 2022,
27are amended to read as follows:
281. The purpose of the program is to improve retail
29motor fuel sites by installing, replacing, or converting
30infrastructure to be used to store, blend, or dispense
31renewable fuel. The infrastructure shall be ethanol
32infrastructure or biodiesel infrastructure.
33a. (1) Ethanol infrastructure shall be designed and used
34exclusively have the capacity to do any of the following:
35(a) Store and dispense E-15 gasoline. At least for the
-36-1period beginning on September 16 and ending on May 31 of each
2year, the ethanol infrastructure must be used to store and
3dispense E-15 gasoline as a registered fuel recognized by the
4United States environmental protection agency.
5(b) Store and dispense E-85 gasoline.
6(c) (b) Store, blend, and dispense motor fuel ethanol or
7ethanol blended gasoline from a motor fuel blender pump. The
8ethanol infrastructure must be used for the storage of ethanol
9or ethanol blended gasoline, or for blending ethanol with
10gasoline. The ethanol infrastructure must at least include
11a motor fuel blender pump which that dispenses different
12classifications of ethanol blended gasoline and allows E-15
13gasoline and E-85 gasoline to be dispensed at all times that
14the blender pump is operating.
15(2) Biodiesel infrastructure shall be designed and used
16exclusively have the capacity to do any of the following:
17(a) Store and dispense biodiesel or biodiesel blended fuel
18classified as B-20 or higher.
19(b) Blend or Store, blend, and dispense biodiesel fuel
20from a motor fuel blender pump. The biodiesel infrastructure
21must at least include a motor fuel blender pump that dispenses
22different classifications of biodiesel blended fuel and allows
23biodiesel blended fuel classified as B-5 or higher to be
24dispensed at all times that the blender pump is operating.
25b. The infrastructure must be part of the premises of
26a retail motor fuel site operated by a retail dealer. The
27infrastructure shall not include a tank vehicle.
282. a. A person may apply to the department to receive
29financial incentives on a cost-share basis according to
30procedures required by the department. The department shall
31accept a timely received application to improve a retail
32motor fuel site as provided in this section and forward the
33applications that application to the underground storage tank
34fund infrastructure board, as required by that the board, for
35evaluation and recommendation. The underground storage tank
-37-1fund board may rank the applications with comments and shall
2forward them to the infrastructure board for its approval or
3disapproval.
4b. The application shall allow the department to determine
5whether the person is a retail dealer assigned special status.
6The department shall assign the person special status if
7the person does not comply with the E-15 access standard
8as provided in section 214A.32 only because the person is
9ineligible to be issued an E-15 incompatible infrastructure
10class 2 waiver order for that retail motor fuel site as
11provided in section 214A.35, subsection 6.
12c. The infrastructure board may establish a system to
13rank applications for approval. In ranking applications, the
14infrastructure board may provide special priority to any of the
15following:
16(1) A retail motor fuel site that has been constructed and
17is operating.
18(2) (a) A retail motor fuel site owned or operated by a
19person who the department assigns special status as provided
20in paragraph “b”.
21(b) (i) This subparagraph shall be implemented on January
221, 2023.
23(ii) This subparagraph division is repealed January 2,
242023.
25d. The department shall award financial incentives on a
26cost-share basis to an eligible person whose application was
27approved by the infrastructure board.
28 Sec. 90. Section 159A.14, subsection 3, unnumbered
29paragraph 1, Code 2022, is amended to read as follows:
30The infrastructure board shall approve cost-share
31agreements executed by the department and persons that the
32infrastructure board determines are eligible as provided in
33this section, according to terms and conditions required by the
34infrastructure board. The infrastructure board shall determine
35the amount of the financial incentives to be awarded to a
-38-1person participating in the program. The determination may be
2based on applications prioritized for approval as described in
3subsection 2. In order to be eligible to participate in the
4program, all of the following must apply:
5 Sec. 91. Section 159A.14, subsection 5, Code 2022, is
6amended to read as follows:
75. An award of financial incentives to a participating
8person shall be on a cost-share basis in the form of a grant.
9To participate in the program, an eligible person must execute
10a cost-share agreement with the department as approved by
11the infrastructure board in which the person contributes a
12percentage of the total costs related to improving the retail
13motor fuel site.
14a. A cost-share agreement shall be for a three-year period
15or a five-year period.
16b. (1) For the term of an agreement to improve a retail
17motor fuel site by installing, replacing, or converting ethanol
18infrastructure, the participating person must use the ethanol
19infrastructure to store and dispense, or store, blend, and
20dispense, ethanol blended gasoline classified as E-15 or
21higher.
22(2) For the term of an agreement to improve a motor
23fuel site by installing, replacing, or converting biodiesel
24infrastructure, the participating person must use the biodiesel
25infrastructure to store and dispense, or store, blend, and
26dispense, biodiesel blended fuel classified as B-5 or higher.
27However, at least for the period beginning April 1 and ending
28October 31 of each year, the participating person must use
29the biodiesel infrastructure to store and dispense, or store,
30blend, and dispense, biodiesel blended fuel classified as B-11
31or higher.
32c. A cost-share agreement shall include provisions for
33standard financial incentives or standard financial incentives
34and supplemental financial incentives as provided in this
35subsection. The infrastructure board may approve multiple
-39-1improvements to the same retail motor fuel site for the full
2amount available for both ethanol infrastructure and biodiesel
3infrastructure so long as the improvements for ethanol
4infrastructure and for biodiesel infrastructure are made under
5separate cost-share agreements.
6a. d. (1) Except as provided in paragraph “b” “e”,
7a participating person may be awarded standard financial
8incentives to make improvements to a retail motor fuel site.
9The standard financial incentives awarded to a participating
10person shall not exceed the following:
11(a) For a three-year cost-share agreement, fifty percent of
12the actual cost of making the improvement or thirty thousand
13dollars, whichever is less.
14(b) For a five-year cost-share agreement, seventy percent
15of the actual cost of making the improvement or fifty thousand
16dollars, whichever is less.
17(2) (a) The infrastructure board may approve multiple
18awards of standard financial incentives to make improvements to
19a the retail motor fuel site so long as the total amount of the
20awards for ethanol infrastructure or biodiesel infrastructure
21does not exceed the limitations provided in subparagraph (1).
22(b) If the department determines that a participating
23person is assigned special status because the participating
24person is ineligible to be issued an E-15 incompatible
25infrastructure class 2 waiver order for the retail motor fuel
26site as provided in subsection 2, the infrastructure board may
27approve one or multiple awards of standard financial incentives
28to make improvements to that retail motor fuel site subject to
29all of the following:
30(i) The total amount of awards shall not be reduced by
31the amount of any standard financial incentives awarded to
32improve the retail motor fuel site before the department’s
33determination, notwithstanding subparagraph division (a).
34(ii) The total amount of awards for ethanol infrastructure
35or biodiesel infrastructure shall not exceed the limitations
-40-1provided in subparagraph (1).
2b. e. In addition to any standard financial incentives
3awarded to a participating person under paragraph “a” “d”, the
4participating person may be awarded supplemental financial
5incentives to make improvements to a retail motor fuel site to
6do any of the following:
7(1) Upgrade or replace a dispenser which is part of
8gasoline storage and dispensing infrastructure used to store
9and dispense E-85 gasoline as provided in section 455G.31.
10The participating person is only eligible to be awarded the
11supplemental financial incentives if the person installed the
12dispenser not later than sixty days after July 27, 2011. The
13supplemental financial incentives awarded to the participating
14person shall not exceed seventy-five percent of the actual cost
15of making the improvement or thirty thousand dollars, whichever
16is less.
17(2) To improve additional retail motor fuel sites owned or
18operated by a participating person within a twelve-month period
19as provided in the cost-share agreement. The supplemental
20financial incentives shall be used for the installation
21of an additional motor fuel storage tank and associated
22infrastructure at each such retail motor fuel site. A
23participating person may be awarded supplemental financial
24incentives under this subparagraph paragraph and standard
25financial incentives under paragraph “a” “d” to improve the
26same retail motor fuel site. The supplemental financial
27incentives awarded to the participating person shall not
28exceed twenty-four thousand dollars. The participating person
29shall be awarded the supplemental financial incentives on a
30cumulative basis according to the schedule provided in this
31subparagraph paragraph, which shall not exceed the following:
32(a) (1) For the second retail motor fuel site, six thousand
33dollars.
34(b) (2) For the third retail motor fuel site, six thousand
35dollars.
-41- 1(c) (3) For the fourth retail motor fuel site, six thousand
2dollars.
3(d) (4) For the fifth retail motor fuel site, six thousand
4dollars.
5 Sec. 92. Section 159A.15, subsection 1, Code 2022, is
6amended to read as follows:
71. A person may apply to the department to receive financial
8incentives on a cost-share basis. The department shall forward
9the applications to the underground storage tank fund board as
10required by that board for evaluation and recommendation. The
11underground storage tank fund board may rank the applications
12with comments and shall forward them to the infrastructure
13board for approval or disapproval. The department shall award
14financial incentives on a cost-share basis to an eligible
15person whose application was approved by the infrastructure
16board.
17 Sec. 93. Section 159A.16, subsection 3, Code 2022, is
18amended to read as follows:
193. Moneys in the renewable fuel infrastructure fund are
20appropriated to the department exclusively to support and
21market the renewable fuel infrastructure programs as provided
22in sections 159A.14 and 159A.15, and as allocated in financial
23incentives by the renewable fuel infrastructure board created
24in section 159A.13. Up to fifty
25a. For each fiscal year, not more than one million
26two hundred fifty thousand dollars shall be allocated to
27support the renewable fuel infrastructure program for retail
28motor fuel sites as provided in section 159A.14 to finance
29the installation, replacement, or conversion of biodiesel
30infrastructure as provided in that section.
31b. For each fiscal year, not more than one hundredthousand
32dollars shall be allocated each fiscal year to the department
33to support the administration of the programs. The
34c. For each fiscal year, thedepartment may use up to
35one and one-half percent of the program funds to market the
-42-1programs. Otherwise the moneys shall not be transferred, used,
2obligated, appropriated, or otherwise encumbered except to
3allocate as financial incentives under the programs.
da/ns/md
2blended gasoline and biodiesel blended fuel used to power
3internal combustion engines, by providing for compliance
4requirements and promotional initiatives that relate to
5establishing classifications and standards for renewable
6fuels, advertising and selling renewable fuels, storing
7and dispensing renewable fuels, using state motor vehicles
8powered by renewable fuels, and taxes, tax credits, and tax
9refunds relating to renewable fuels; providing penalties and
10making penalties applicable; and including effective date
11and retroactive applicability provisions.
12BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2COMPLIANCE REQUIREMENTS — STANDARDS
3AND CLASSIFICATIONS FOR GASOLINE — MOTOR FUEL STORAGE
4AND DISPENSING INFRASTRUCTURE
5part a
6E-15 ACCESS STANDARD
7 Section 1. NEW SECTION. 214A.31 E-15 access standard —
8establishment.
9In order to ensure consumer access to gasoline containing
10fifteen percent ethanol by volume, an E-15 access standard is
11established in accordance with 2013 Iowa Acts, ch.127, §1,
12section 159A.1, and this subchapter.
13 Sec. 2. NEW SECTION. 214A.32 E-15 access standard — retail
14dealer compliance.
151. Except as provided in sections 214A.33 through 214A.35,
16a retail dealer owning or operating a retail motor fuel site
17shall comply with the E-15 access standard as provided in this
18section.
192. In order to comply with the E-15 access standard, a
20retail dealer must advertise for sale and sell E-15 gasoline
21from a minimum number of qualifying motor fuel dispensers
22located at the retail dealer’s retail motor fuel site. A
23qualifying motor fuel dispenser must be capable of dispensing
24gasoline at all times that it is in operation.
25a. Except as provided in paragraph “b”, a retail dealer
26shall comply with a general E-15 access standard by dispensing
27E-15 gasoline from the following:
28(1) One qualified motor fuel dispenser, if there is only one
29qualified motor fuel dispenser.
30(2) At least fifty percent of all qualified motor fuel
31dispensers, if there are more than one qualified motor fuel
32dispenser.
33b. (1) A retail dealer complies with an alternative E-15
34access standard if all of the following apply:
35(a) On and after January 1, 2023, the retail dealer does not
-1-1install, replace, or convert a motor fuel storage tank.
2(b) On and after January 1, 2026, the retail dealer
3advertises for sale and sells E-15 gasoline from at least one
4qualifying motor fuel dispenser.
5(2) A retail dealer who no longer complies with the
6alternative E-15 access standard as provided in subparagraph
7(1) shall immediately comply with the general E-15 access
8standard as provided in paragraph “a”.
9c. The E-15 access standard does not prohibit a retail
10dealer owning or operating a retail motor fuel site from
11advertising for sale and selling motor fuel from any number of
12nonqualifying motor fuel dispensers. A nonqualifying motor
13fuel dispenser is limited to any of the following:
14(1) A dispenser that exclusively dispenses any of the
15following:
16(a) Aviation fuel.
17(b) Diesel fuel.
18(c) Kerosene.
19(2) A dispenser that is part of a tank vehicle as defined
20in section 321.1 that is not used to dispense gasoline on the
21premises of the retail motor fuel site.
22(3) A dispenser that is part of a commercial marina.
233. a. A retail dealer is not in violation of this section
24during any period of noncompliance with the E-15 access
25standard caused by an excusable event. An excusable event is
26limited to any of the following:
27(1) The maintenance, repair, or reconditioning of motor
28fuel storage and dispensing infrastructure.
29(2) The installation, expansion, replacement, or conversion
30of motor fuel storage and dispensing infrastructure.
31b. The department may require that a retail dealer
32notify the department that an excusable event as described
33in paragraph “a” is planned to occur, is occurring, or has
34occurred. The department may inspect the applicable retail
35motor fuel site to determine whether the noncompliance is
-2-1caused by an excusable event.
24. a. This section shall be implemented on January 1, 2023.
3b. This subsection is repealed January 2, 2023.
4 Sec. 3. NEW SECTION. 214A.33 Suspension of E-15 access
5standard by order issued by governor.
61. The governor may issue or renew an executive order that
7temporarily suspends the requirement in section 214A.32 that a
8retail dealer comply with the E-15 access standard at a retail
9motor fuel site owned or operated by the retail dealer.
102. The E-15 access standard suspension order as described in
11subsection 1 must be supported by the governor’s determination
12that any of the following apply:
13a. There is an inadequate supply of E-15 gasoline.
14b. The market price of E-15 gasoline may cause consumers to
15suffer economic hardship.
16c. Existing motor fuel storage and dispensing infrastructure
17is not capable of storing and dispensing E-15 gasoline.
183. The governor may issue or renew an executive order under
19this section on a statewide or regional basis.
204. The E-15 access standard suspension order shall take
21effect on its date of publication in the Iowa administrative
22bulletin, unless the order specifies a later date. The order
23shall expire one year from its effective date unless a shorter
24period is stated in the order. The early expiration of the
25order may also occur based on circumstances described in the
26order.
275. a. This section shall be implemented on January 1, 2023.
28b. This subsection is repealed January 2, 2023.
29 Sec. 4. NEW SECTION. 214A.34 Waiver of E-15 access
30standard by order issued by secretary of agriculture — E-15
31unavailability.
321. The secretary of agriculture may issue an administrative
33order that temporarily waives the requirement in section
34214A.32 that a retail dealer comply with the E-15 access
35standard at a retail motor fuel site owned or operated by the
-3-1retail dealer based on E-15 gasoline availability.
22. A retail dealer may apply for an E-15 unavailability
3waiver order as described in subsection 1 by submitting an
4application to the department in a manner and according to
5procedures required by the department.
6a. The application must be supported by credible evidence
7that the retail dealer has not been able to reasonably obtain
8E-15 gasoline to be advertised for sale and sold at the retail
9dealer’s retail motor fuel site.
10b. The retail dealer must sign the application which shall
11include a statement that the retail dealer swears and affirms
12that all information in the application completed by the retail
13dealer is true and correct.
143. The department shall publish a copy of the E-15
15unavailability waiver order on the department’s internet site
16within ten days after the order’s issuance.
174. The E-15 unavailability waiver order shall take effect
18on its date of publication on the department’s internet site,
19unless the order specifies a later date. The order shall
20expire six months from its effective date unless a shorter
21period is stated in the order. The early expiration of the
22order may also occur based on circumstances described in the
23order.
245. a. This section shall be implemented on January 1, 2023.
25b. This subsection is repealed January 2, 2023.
26 Sec. 5. NEW SECTION. 214A.35 Waiver of E-15 access standard
27by order issued by secretary of agriculture — E-15 incompatible
28infrastructure.
291. The secretary of agriculture shall issue an
30administrative order that temporarily waives the requirement
31in section 214A.32 that a retail dealer comply with the E-15
32access standard at a retail motor fuel site owned or operated
33by the retail dealer, if the retail motor fuel site qualifies
34under this section based on the incompatibility of the motor
35fuel storage and dispensing infrastructure to store and
-4-1dispense E-15 gasoline.
22. A retail dealer may apply for an E-15 incompatible
3infrastructure waiver order as described in subsection 1 by
4submitting an application to the department in a manner and
5according to procedures required by the department.
6a. The application must be supported by credible evidence
7that the retail dealer is unable to comply with the E-15
8access standard because the motor fuel storage and dispensing
9infrastructure located at the retail motor fuel site is not
10compatible with the use of E-15 gasoline and that the retail
11dealer is eligible for a class 1 or class 2 waiver as provided
12in this section.
13b. The application must provide information required to
14be completed by the retail dealer, which must include an
15inventory and description of motor fuel storage and dispensing
16infrastructure located at the retail motor fuel site.
17c. The department may require a retail dealer to attach any
18supporting documentation to the application, which may include
19an inspection report completed by a person certified by the
20department as a professional retail motor fuel site installer.
21The certified professional retail motor fuel site installer
22may be a licensed engineer or other person who the department
23determines is qualified by education, testing, or experience to
24oversee a project involving the installation, replacement, or
25conversion of motor fuel storage and dispensing infrastructure,
26and who is able to provide a reliable estimate of the project’s
27costs.
28d. The department shall review and evaluate an application
29to determine whether it is supported by credible evidence
30sufficient for the secretary to issue an order granting a
31waiver under this section. The department shall approve or
32disapprove a completed application within one hundred twenty
33days following the date that the application was delivered to
34the department for filing.
35e. The retail dealer must sign the application which shall
-5-1include a statement that the retail dealer swears and affirms
2that all information in the application completed by the retail
3dealer is true and correct. If a certified professional retail
4motor fuel site installer completes an inspection report to
5support an application, the installer shall sign a statement
6that the installer swears and affirms that all information in
7the inspection report completed by the installer is true and
8correct.
9f. The department may inspect the premises of a retail
10motor fuel site during normal business hours to administer and
11enforce the provisions of this section.
12g. The department of agriculture and land stewardship
13may cooperate with the department of natural resources and
14the state fire marshal in administering and enforcing the
15provisions of this section.
163. The department shall publish a copy of the E-15
17incompatible infrastructure waiver order on the department’s
18internet site within ten days after the order’s issuance. The
19order shall take effect on its date of publication, unless the
20order specifies a later date.
214. a. The secretary of agriculture shall terminate the
22E-15 incompatible infrastructure waiver order if a terminable
23event has occurred. A terminable event is limited to any of
24the following:
25(1) The failure of a retail dealer to be licensed as
26required under section 214.2 to use a commercial weighing and
27measuring device when dispensing gasoline.
28(2) The cessation of the retail dealer’s business of
29advertising for sale or selling gasoline at the retail motor
30fuel site.
31(3) The installation, replacement, or conversion of a motor
32fuel storage tank located at the retail motor fuel site.
33b. The department may require that a retail dealer
34notify the department that a terminable event as described
35in paragraph “a” is planned to occur, is occurring, or has
-6-1occurred.
25. a. The secretary of agriculture shall issue an E-15
3incompatible infrastructure class 1 waiver order as provided in
4this subsection. If the department determines an inspection of
5the retail motor fuel site is necessary, it may either conduct
6the inspection or accept an inspection report completed by a
7certified professional retail motor fuel site installer.
8b. The order must be supported by credible evidence that
9all motor fuel storage tanks used to store gasoline that are
10located at the retail motor fuel site fall within any of the
11following categories:
12(1) Each motor fuel storage tank not constructed of
13fiberglass was installed during or prior to 1985.
14(2) Each motor fuel storage tank constructed of fiberglass
15was installed during or prior to the following years:
16(a) For a double-wall fiberglass underground motor fuel
17storage tank, 1991.
18(b) For a single-wall fiberglass underground motor fuel
19storage tank, 1996.
206. The secretary of agriculture shall issue an E-15
21incompatible infrastructure class 2 waiver order as provided
22in this subsection. The order shall be based on an inspection
23of the retail motor fuel site. The department may file and
24review a completed inspection report submitted by a certified
25professional retail motor fuel site installer.
26a. The inspection report must be supported by credible
27evidence and include all of the following:
28(1) A completed checklist of items adopted as part of a form
29used by the department to confirm that the motor fuel storage
30and dispensing infrastructure located at the retail motor fuel
31site is not compatible with E-15 gasoline.
32(2) The total estimated cost of improving the retail
33motor fuel site to comply with the E-15 access standard by
34installing, replacing, or converting the motor fuel storage
35and dispensing infrastructure located at the retail motor fuel
-7-1site.
2b. (1) The department shall determine whether to issue an
3E-15 incompatible infrastructure class 2 waiver order based
4on an eligibility assessment which shall calculate all of the
5following:
6(a) The total estimated cost of improvement which equals the
7total estimated cost of improving the retail motor fuel site to
8comply with the E-15 access standard based on the department’s
9analysis of the inspection report described in paragraph “a”.
10The total estimated cost of improvement shall only include
11costs used to calculate the amount of financial incentives
12that may be awarded by the renewable fuel infrastructure
13board to a retail dealer participating in the renewable fuel
14infrastructure program for retail motor fuel sites as provided
15in section 159A.14.
16(b) The E-15 infrastructure base amount which equals the
17maximum cost necessary to be incurred by the retail dealer
18in order to receive the total amount of standard financial
19incentives that could be awarded to the retail dealer under the
20renewable fuel infrastructure program for retail motor fuel
21sites as provided in section 159A.14 in order to comply with
22the E-15 access standard. The department’s calculation shall
23not include any of the following:
24(i) The amount of any prior financial incentives awarded
25to the retail dealer under the renewable fuel infrastructure
26program for retail motor fuel sites.
27(ii) Whether the retail dealer is applying for or may be
28awarded any future financial incentives under the renewable
29fuel infrastructure program for retail motor fuel sites.
30(2) A retail dealer is only eligible to be issued an
31E-15 incompatible infrastructure class 2 waiver order if
32the department determines that the total estimated cost of
33improvement as described in subparagraph (1), subparagraph
34division (a), exceeds the E-15 infrastructure base amount as
35described in subparagraph (1), subparagraph division (b).
-8- 17. a. This section shall be implemented on January 1, 2023.
2b. This subsection is repealed January 2, 2023.
38. This section is repealed January 1, 2041.
4 Sec. 6. NEW SECTION. 214A.36 Disciplinary action.
51. The department may refuse to issue or renew and may
6suspend or revoke a license issued to a retail dealer pursuant
7to section 214.2 for not complying with the E-15 access
8standard as provided in section 214A.32, including rules
9adopted by the department pursuant to section 214A.1A to
10administer or enforce that section.
112. a. This section shall be implemented on January 1, 2023.
12b. This subsection is repealed January 2, 2023.
13 Sec. 7. ISSUANCE OF ORDERS SUSPENDING OR WAIVING E-15 ACCESS
14STANDARD.
151. The governor may issue an E-15 access standard suspension
16order as provided in section 214A.33, as enacted in this part
17of this division of this Act, prior to January 1, 2023, if the
18governor determines it is necessary to issue the order prior
19to that date.
202. The secretary of agriculture may issue an E-15
21unavailability waiver order as provided in section 214A.34, as
22enacted in this part of this division of this Act, prior to
23January 1, 2023, if the secretary determines it is necessary to
24issue the order prior to that date.
253. The secretary of agriculture may issue an E-15
26incompatible infrastructure waiver order as provided in section
27214A.35, as enacted in this part of this division of this Act,
28prior to January 1, 2023, if the secretary determines it is
29necessary to issue the order prior to that date.
30 Sec. 8. ADOPTION OF RULES IMPLEMENTING E-15 ACCESS STANDARD
31AND E-15 INCOMPATIBLE INFRASTRUCTURE WAIVER ORDER.
321. The department of agriculture and land stewardship
33shall adopt rules pursuant to chapter 17A prior to January 1,
342023, as necessary to administer and enforce the E-15 access
35standard, as provided in section 214A.32, as enacted in this
-9-1part of this division of this Act.
22. The department of agriculture and land stewardship shall
3adopt rules pursuant to chapter 17A prior to January 1, 2023,
4as necessary to administer and enforce an E-15 incompatible
5infrastructure waiver order, as provided in section 214A.35, as
6enacted in this part of this division of this Act.
7PART B
8RELATED RENEWABLE FUELS AND INFRASTRUCTURE PROVISIONS
9 Sec. 9. Section 159A.6, subsection 1, paragraph c, Code
102022, is amended by striking the paragraph.
11 Sec. 10. Section 214.1, Code 2022, is amended by adding the
12following new subsections:
13 NEW SUBSECTION. 1A. “Department” means the department of
14agriculture and land stewardship.
15 NEW SUBSECTION. 1B. “E-15 gasoline” or “E-15” means the
16same as defined in section 214A.1.
17 NEW SUBSECTION. 3A. “Motor fuel dispenser” or “dispenser”
18means equipment that is the part of motor fuel storage
19and dispensing infrastructure that includes mechanical or
20electrical systems that operate a motor fuel pump dispensing
21motor fuel from a motor fuel storage tank to the end point of
22the equipment’s nozzle.
23 NEW SUBSECTION. 4A. a. “Motor fuel storage and dispensing
24infrastructure” or “infrastructure” means equipment used to do
25any of the following:
26(1) Store and dispense motor fuel.
27(2) Store, blend, and dispense motor fuel.
28b. “Motor fuel storage and dispensing infrastructure” or
29“infrastructure” includes but is not limited to a motor fuel
30storage tank, motor fuel pump or motor fuel blender pump, motor
31fuel dispenser, and associated pipes, hoses, nozzles, tubes,
32lines, fittings, valves, filters, seals, and covers.
33 Sec. 11. Section 214.1, subsections 3, 4, and 5, Code 2022,
34are amended to read as follows:
353. “Motor fuel blender pump” or “blender pump” means a motor
-10-1fuel meter pump that measures and dispenses a type of motor
2fuel that is blended from to formulate two or more different
3types classifications of that motor fuels and which may
4dispense more than one type of blended motor fuel.
54. “Motor fuel pump” means the part of motor fuel storage
6and dispensing infrastructure that is a meter or similar
7commercial weighing and measuring device used to measure and
8dispense motor fuel originating from a motor fuel storage tank,
9on a retail basis.
105. “Motor fuel storage tank” or “storage tank” means the part
11of motor fuel storage and dispensing infrastructure that is an
12aboveground or belowground container that is constituting a
13fixture used to store an accumulation of motor fuel.
14 Sec. 12. Section 214.9, Code 2022, is amended to read as
15follows:
16214.9 Self-service motor fuel pumps dispensers.
17A self-service motor fuel dispenser operating a motor fuel
18 pump located at a retail motor fuel site may be equipped with
19an automatic latch-open device on the fuel dispensing hose
20nozzle only if the nozzle valve is the automatic closing type.
21 Sec. 13. NEW SECTION. 214.12 Inspections of motor fuel
22dispensers — E-15 access standard.
231. In conducting an inspection under section 214.11, an
24inspector for the department shall determine if a retail dealer
25is advertising for sale and selling E-15 gasoline at a retail
26motor fuel site in compliance with the E-15 access standard as
27provided in section 214A.32.
282. a. This section shall be implemented on January 1, 2023.
29b. This subsection is repealed January 2, 2023.
30 Sec. 14. Section 214A.1, Code 2022, is amended by adding the
31following new subsections:
32 NEW SUBSECTION. 2A. “B-20 biodiesel fuel” or “B-20” means
33a classification of biodiesel blended fuel formulated with a
34percentage of twenty percent by volume of biodiesel, if the
35formulation meets the standards provided in section 214A.2.
-11-1 NEW SUBSECTION. 12A. “E-15 gasoline” or “E-15” means a
2classification of ethanol blended gasoline formulated with a
3percentage of fifteen percent by volume of ethanol, if the
4formulation meets the standards provided in section 214A.2.
5 NEW SUBSECTION. 18A. “Motor fuel dispenser” or “dispenser”
6means the same as defined in section 214.1.
7 NEW SUBSECTION. 19A. “Motor fuel storage and dispensing
8infrastructure” or “infrastructure” means the same as defined
9in section 214.1.
10 Sec. 15. NEW SECTION. 214A.1A Rules.
11The department shall adopt rules necessary to administer and
12enforce this chapter in conjunction with chapter 214.
13 Sec. 16. Section 214A.2, subsection 1, Code 2022, is amended
14to read as follows:
151. The department shall adopt rules pursuant to chapter
1617A for carrying out this chapter. The rules may include but
17are not limited to specifications section 214A.1A relating
18to standards and classifications for types of motor fuel,
19including but not limited to gasoline and diesel fuel. The
20rules shall provide standards and classifications for a
21 renewable fuel such as ethanol blended gasoline, biobutanol
22blended gasoline, biodiesel, biodiesel blended fuel, and
23motor renewable fuel components such as an a biofuel or other
24 oxygenate. In the interest of uniformity, the department shall
25adopt by reference other specifications standards relating to
26tests and standards specifications for types of motor fuel,
27including renewable fuel and motor fuel components, established
28by the United States environmental protection agency and
29A.S.T.M. international.
30 Sec. 17. Section 214A.2, subsection 4, paragraph b, Code
312022, is amended by adding the following new subparagraph:
32 NEW SUBPARAGRAPH. (5) (a) Biodiesel blended fuel
33classified as higher than B-20 must conform to standards
34adopted by the department.
35(b) The rules adopted by the department of agriculture
-12-1and land stewardship establishing standards for biodiesel
2blended fuel classified as higher than B-20 shall take effect
3not earlier than sixty days after the date of filing in
4accordance with section 17A.5, subsection 2, paragraph “a”. The
5department of agriculture and land stewardship shall notify
6the legislative services agency, the governor, the department
7of natural resources, and the department of revenue of the
8effective date of the rules at least thirty days prior to the
9effective date of the rules.
10 Sec. 18. Section 214A.3, subsection 2, paragraph b,
11subparagraph (1), Code 2022, is amended by striking the
12subparagraph and inserting in lieu thereof the following:
13(1) A person shall not knowingly falsely advertise ethanol
14blended gasoline by using an inaccurate classification as
15provided in section 214A.2.
16 Sec. 19. Section 214A.3, subsection 2, paragraph b,
17subparagraphs (2) and (3), Code 2022, are amended to read as
18follows:
19(2) A person shall not knowingly falsely advertise
20biobutanol blended gasoline by using an inaccurate designation
21 classification as provided in section 214A.2.
22(3) A person shall not knowingly falsely advertise
23biodiesel blended fuel by using an inaccurate designation
24 classification as provided in section 214A.2.
25 Sec. 20. Section 214A.8, Code 2022, is amended to read as
26follows:
27214A.8 Prohibition.
28A dealer shall not knowingly sell motor fuel or biofuel
29in the state that fails to meet applicable standards and
30classifications as provided in section 214A.2.
31 Sec. 21. Section 214A.11, subsection 2, Code 2022, is
32amended by adding the following new paragraphs:
33 NEW PARAGRAPH. c. (1) A retail dealer who submits
34an application for an E-15 unavailability waiver order
35under section 214A.34 that the retail dealer knows includes
-13-1information that is not true and correct commits perjury as
2provided in section 720.2.
3(2) (a) This paragraph “c” shall be implemented on January
41, 2023.
5(b) This subparagraph is repealed January 2, 2023.
6 NEW PARAGRAPH. d. (1) A retail dealer who submits an
7application for an E-15 incompatible infrastructure waiver
8order under section 214A.35 that the retail dealer knows is not
9true and correct commits perjury as provided in section 720.2.
10(2) A certified professional retail motor fuel site
11installer who submits an inspection report as part of an
12application for an E-15 incompatible infrastructure waiver
13order under section 214A.35 that the installer knows is not
14true and correct commits perjury under section 720.2.
15(3) (a) This paragraph “d” shall be implemented on January
161, 2023.
17(b) This subparagraph is repealed on January 2, 2023.
18 Sec. 22. Section 214A.20, Code 2022, is amended to read as
19follows:
20214A.20 Limitation on liability.
211. A retail dealer or other marketer, pipeline company,
22refiner, terminal operator, or terminal owner is not liable for
23damages caused by the use of incompatible motor fuel dispensed
24from a motor fuel dispenser located at the retail dealer’s
25retail motor fuel site, if all of the following apply:
26a. The incompatible motor fuel complies with the
27specifications standards for a that type and classification of
28motor fuel as provided in section 214A.2.
29b. The incompatible motor fuel is selected by the end use
30 consumer of the motor fuel.
31c. The incompatible motor fuel is dispensed from a motor
32fuel pump dispenser that correctly labels the type and
33classification of fuel dispensed from a motor fuel storage
34tank.
352. For purposes of this section subsection 1, a motor fuel
-14-1is incompatible with a motor according to the manufacturer of
2the motor.
3 Sec. 23. REPEAL. Section 214A.16, Code 2022, is repealed.
4PART C
5CODE ORGANIZATION
6 Sec. 24. DIRECTIONS TO THE CODE EDITOR — TRANSFERS.
71. The Code editor is directed to make the following
8transfers:
9a. Section 214A.3, as amended in this division of this Act,
10to section 214A.21.
11b. Section 214A.7 to section 214A.22.
12c. Section 214A.8, as amended in this division of this Act,
13to section 214A.23.
14d. Section 214A.19 to section 214A.24.
15e. Section 214A.20, as amended in this division of this Act,
16to section 214A.25.
172. The Code editor shall correct internal references in the
18Code and in any enacted legislation as necessary due to the
19enactment of this section.
20 Sec. 25. DIRECTIONS TO THE CODE EDITOR — SUBCHAPTERS. The
21Code editor is directed to divide the provisions of chapter
22214A, as amended, enacted, or transferred in this division of
23this Act, into subchapters as follows:
241. Subchapter I, including sections 214A.1 through 214A.20.
252. Subchapter II, including sections 214A.21 through
26214A.30.
273. Subchapter III, including sections 214A.31 through
28214A.36.
29DIVISION II
30COMPLIANCE REQUIREMENTS — RENEWABLE FUEL infrastructure
31PART A
32principAL provisions
33 Sec. 26. NEW SECTION. 455G.2A Standards and classifications
34of motor fuel.
35For purposes of this chapter, motor fuel must meet the
-15-1standards and classifications as provided in section 214A.2.
2 Sec. 27. NEW SECTION. 455G.30 Definitions.
3As used in this subchapter, unless the context otherwise
4requires:
51. “Biodiesel blended fuel” means the same as defined in
6section 214A.1.
72. “Department” means the department of natural resources.
83. “Diesel fuel” means the same as defined in section
9214A.1.
104. “Diesel fuel storage and dispensing infrastructure” or
11“diesel infrastructure” means motor fuel storage and dispensing
12infrastructure as defined in section 214.1 used to store and
13dispense diesel fuel, including biodiesel blended diesel fuel,
14at a retail motor fuel site as defined in section 214A.1.
155. “Ethanol blended gasoline” means the same as defined in
16section 214A.1.
176. “Gasoline storage and dispensing infrastructure”
18or “gasoline infrastructure” means motor fuel storage and
19dispensing infrastructure as defined in section 214.1 used
20to store and dispense gasoline, including ethanol blended
21gasoline, at a retail motor fuel site as defined in section
22214A.1.
237. “Retail dealer” means the same as defined in section
24214A.1.
25 Sec. 28. Section 455G.31, subsections 1 and 3, Code 2022,
26are amended by striking the subsections.
27 Sec. 29. Section 455G.31, subsection 2, Code 2022, is
28amended to read as follows:
292. A Subject to section 455G.32, a retail dealer may
30use gasoline storage and dispensing infrastructure to store
31and dispense ethanol blended gasoline classified as E-9
32 E-10 or higher if the department of natural resources under
33this subchapter or the state fire marshal under chapter 101
34determines that it the gasoline infrastructure is compatible
35with the classification of ethanol blended gasoline being used.
-16-1 Sec. 30. NEW SECTION. 455G.32 E-85 gasoline compatible
2infrastructure — compliance requirement.
31. A retail dealer shall not install, replace, or convert
4gasoline storage and dispensing infrastructure used to store
5and dispense ethanol blended gasoline classified as E-15 or
6higher, unless the installed, replaced, or converted gasoline
7infrastructure is capable of storing and dispensing ethanol
8blended gasoline classified as E-85.
92. The infrastructure must be all of the following:
10a. Listed as compatible for use with ethanol blended
11gasoline classified as E-85 by an independent testing
12laboratory or as approved by the manufacturer.
13b. Approved by the department or state fire marshal subject
14to conditions determined necessary by the department or state
15fire marshal. The department or state fire marshal may waive
16the requirement in paragraph “a” upon satisfaction that a
17substitute requirement serves the same purpose.
18 Sec. 31. NEW SECTION. 455G.33 B-20 diesel fuel compatible
19infrastructure — compliance requirement.
201. A retail dealer shall not install, replace, or convert
21diesel fuel storage and dispensing infrastructure unless the
22installed, replaced, or converted diesel fuel infrastructure
23is capable of storing and dispensing biodiesel blended fuel
24classified as B-20 or higher.
252. The infrastructure must be all of the following:
26a. Listed as compatible for use with biodiesel blended
27fuel classified as B-20 or higher by an independent testing
28laboratory or as approved by the manufacturer.
29b. Approved by the department or state fire marshal subject
30to conditions determined necessary by the department or state
31fire marshal. The department or state fire marshal may waive
32the requirement in paragraph “a” upon satisfaction that a
33substitute requirement serves the same purpose.
34 Sec. 32. EFFECTIVE DATE. This part of this division of this
35Act takes effect January 1, 2023.
-17-1PART B
2IMPLEMENTATION
3 Sec. 33. ADMINISTRATIVE RULES. The department of natural
4resources and the state fire marshal may adopt rules under
5chapter 17A prior to the effective date of part A of this
6division of this Act, which rules shall take effect January 1,
72023.
8DIVISION III
9COMPLIANCE REQUIREMENTS — Qualified RENEWABLE FUEL USE BY
10STATE MOTOR VEHICLES
11 Sec. 34. NEW SECTION. 8A.360 Special definitions.
12As used in this part, unless the context otherwise requires:
131. “Biodiesel blended fuel” means the same as defined in
14section 214A.1.
152. “Biofuel” means the same as defined in section 214A.1.
163. “Determination period” means any twelve-month period
17beginning January 1 and ending December 31.
184. “Ethanol blended gasoline” means the same as defined in
19section 214A.1.
205. “Qualified renewable fuel” means ethanol blended
21gasoline or biodiesel blended fuel that meets the standards
22and classifications for that type of motor fuel as provided in
23section 214A.2.
24 Sec. 35. NEW SECTION. 8A.360A Classification of qualified
25renewable fuels.
26For purposes of this part, a qualified renewable fuel must
27meet the same standards and classifications as provided in
28section 214A.2.
29 Sec. 36. Section 8A.362, subsection 3, paragraph b, Code
302022, is amended by striking the paragraph and inserting in
31lieu thereof the following:
32b. The director shall provide for the purchase and operation
33of motor vehicles using qualified renewable fuels and for the
34purchase of qualified renewable fuels used to operate those
35motor vehicles as provided in section 8A.368.
-18-1 Sec. 37. NEW SECTION. 8A.368 Motor vehicle purchases —
2qualified renewable fuels.
31. A motor vehicle operating using an internal combustion
4engine powered by gasoline or diesel fuel as described in
5section 8A.362 shall use the highest possible classification of
6a qualified renewable fuel if all of the following apply:
7a. The manufacturer of the motor vehicle or the United
8States environmental protection agency expressly states that
9the classification of a qualified renewable fuel is compatible
10with the motor vehicle’s normal operation.
11b. That classification of a qualified renewable fuel is
12commercially available in the region where the motor vehicle
13is being operated.
14c. No emergency situation exists that requires the immediate
15use of a motor fuel regardless of whether it has been blended
16with a biofuel.
172. If the highest possible classification of a qualified
18renewable fuel is available to power an engine used to operate
19a motor vehicle as provided in subsection 1, a state-issued
20credit card shall not be used to purchase motor fuel other than
21that classification of a qualified renewable fuel.
223. A motor vehicle subject to this section shall be affixed
23with a brightly colored, highly visible renewable fuel sticker.
24The qualified renewable fuel sticker shall be designed by
25the department of agriculture and land stewardship to notify
26the traveling public that the motor vehicle is operating
27using an internal combustion engine powered by the highest
28possible classification of that qualified renewable fuel. The
29department of administrative services shall distribute the
30stickers to state agencies maintaining a state motor pool.
31However, a qualified renewable fuel sticker is not required to
32be affixed to an unmarked motor vehicle used for purposes of
33providing law enforcement or security.
344. As part of the department’s competitive bidding
35procedure for the purchase of a motor vehicle operating using
-19-1an internal combustion engine powered by diesel fuel, the
2director shall require a bidder to certify that the motor
3vehicle’s manufacturer expressly states that the engine is
4capable of being powered by biodiesel blended fuel classified
5as B-20 or higher.
6 Sec. 38. NEW SECTION. 8A.369 Motor vehicle purchases —
7qualified renewable fuels — reports.
81. The department shall compile information regarding the
9department’s compliance with section 8A.368 during the previous
10determination period. The information shall include all of the
11following:
12a. Of the motor vehicles used to routinely travel on the
13state’s highways that operate using internal combustion engines
14powered by gasoline, all of the following:
15(1) The total number of such motor vehicles according to
16model year.
17(2) The total number of such motor vehicles according
18to model year that are capable of operating using internal
19combustion engines powered by ethanol blended gasoline
20classified as E-15 and E-85 according to the express warranty
21of the motor vehicle’s manufacturer.
22(3) The total number of gallons of ethanol blended gasoline
23classified as E-15, and the total number of gallons of ethanol
24blended gasoline classified as E-85, purchased during the
25preceding determination period, to the extent such information
26may be practically obtained.
27b. Of the motor vehicles used to routinely travel on the
28state’s highways that operate using internal combustion engines
29powered by diesel fuel, all of the following:
30(1) The total number of such motor vehicles according to
31model year.
32(2) The total number of such motor vehicles according
33to model year that are capable of operating using internal
34combustion engines powered by biodiesel blended fuel classified
35as B-20 or higher according to the express warranty of the
-20-1motor vehicle’s manufacturer.
2(3) The total number of gallons of biodiesel blended fuel
3classified as B-20 or higher purchased during the preceding
4determination period, to the extent such information may be
5practically obtained.
62. The department of administrative services shall
7prepare a state fleet qualified renewable fuels compliance
8report which shall consolidate information compiled by the
9department under subsection 1 together with information
10compiled by the commission for the blind pursuant to section
11216B.3, institutions governed by the state board of regents
12pursuant to section 262.25A, the department of transportation
13pursuant to section 307.21, and the department of corrections
14pursuant to section 904.312A. The department of administrative
15services shall submit the state fleet qualified renewable fuels
16compliance report to the governor and general assembly not
17later than March 1 of each year.
18 Sec. 39. Section 216B.3, subsection 16, paragraph a, Code
192022, is amended by striking the paragraph and inserting in
20lieu thereof the following:
21a. Provide for the purchase of qualified renewable fuels
22to power internal combustion engines that are used to operate
23motor vehicles and for the purchase of motor vehicles operating
24using engines powered by qualified renewable fuels in the
25same manner required for the director of the department of
26administrative services pursuant to section 8A.368. The
27commission shall compile information regarding compliance
28with the provisions of this paragraph in the same manner as
29the department of administrative services pursuant to section
308A.369. The commission shall cooperate with the department
31of administrative services in preparing the annual state
32fleet qualified renewable fuels compliance report regarding
33compliance with this paragraph as provided in section 8A.369.
34 Sec. 40. Section 262.25A, subsection 2, Code 2022, is
35amended by striking the subsection and inserting in lieu
-21-1thereof the following:
22. An institution shall provide for the purchase of
3qualified renewable fuels to power internal combustion engines
4that are used to operate motor vehicles and for the purchase
5of motor vehicles operating using engines powered by qualified
6renewable fuels in the same manner required for the director of
7the department of administrative services pursuant to section
88A.368. An institution shall compile information regarding
9compliance with the provisions of this subsection in the same
10manner as the department of administrative services pursuant
11to section 8A.369. The state board of regents shall cooperate
12with the department of administrative services in preparing
13the annual state fleet qualified renewable fuels compliance
14report regarding compliance with this subsection as provided
15in section 8A.369.
16 Sec. 41. Section 307.21, subsection 4, Code 2022, is amended
17by striking the subsection and inserting in lieu thereof the
18following:
194. The administrator shall provide for the purchase
20of qualified renewable fuels to power internal combustion
21engines that are used to operate motor vehicles and for the
22purchase of motor vehicles operating using engines powered
23by qualified renewable fuels in the same manner required for
24the director of the department of administrative services
25pursuant to section 8A.368. The department of transportation
26shall compile information regarding compliance with the
27provisions of this subsection in the same manner as the
28department of administrative services pursuant to section
298A.369. The department of transportation shall cooperate
30with the department of administrative services in preparing
31the annual state fleet qualified renewable fuels compliance
32report regarding compliance with this subsection as provided
33in section 8A.369.
34 Sec. 42. Section 904.312A, subsection 1, Code 2022, is
35amended by striking the subsection and inserting in lieu
-22-1thereof the following:
21. The department of corrections shall provide for the
3purchase of qualified renewable fuels to power internal
4combustion engines that are used to operate motor vehicles and
5for the purchase of motor vehicles operating using engines
6powered by qualified renewable fuels in the same manner
7required for the director of the department of administrative
8services pursuant to section 8A.368. The department of
9corrections shall compile information regarding compliance
10with the provisions of this subsection in the same manner as
11the department of administrative services pursuant to section
128A.369. The department of corrections shall cooperate with
13the department of administrative services in preparing the
14annual state fleet qualified renewable fuels compliance report
15regarding compliance with this subsection as provided in
16section 8A.369.
17 Sec. 43. STATE FLEET QUALIFIED RENEWABLE FUELS COMPLIANCE
18REPORT. The department of administrative services shall submit
19its first state fleet qualified renewable fuels compliance
20report as required pursuant to section 8A.369, as enacted in
21this division of this Act, not later than July 1, 2023.
22DIVISION IV
23RENEWABLE FUEL STANDARDS AND
24CLASSIFICATIONS — PROMOTIONAL INITIATIVES APPLIED
25TO INCOME TAXES
26PART A
27E-85 GASOLINE PROMOTION TAX CREDIT
28 Sec. 44. Section 422.11O, subsection 2, paragraph b, Code
292022, is amended to read as follows:
30b. The tax credit shall apply to E-85 gasoline that meets
31the standards for that classification as provided in section
32214A.2.
33 Sec. 45. Section 422.11O, subsection 5, Code 2022, is
34amended to read as follows:
355. a. A retail dealer is eligible to claim an E-85 gasoline
-23-1promotion tax credit as provided in this section even though
2the retail dealer claims an E-15 plus gasoline promotion tax
3credit pursuant to section 422.11Y for the same tax year.
4b. This subsection is repealed January 1, 2026.
5 Sec. 46. Section 422.11O, subsection 8, Code 2022, is
6amended to read as follows:
78. This section is repealed on January 1, 2025 2028.
8 Sec. 47. Section 422.33, subsection 11B, paragraph c, Code
92022, is amended to read as follows:
10c. This subsection is repealed on January 1, 2025 2028.
11 Sec. 48. 2006 Iowa Acts, chapter 1142, section 49,
12subsection 3, as amended by 2011 Iowa Acts, chapter 113,
13section 20, and 2016 Iowa Acts, chapter 1106, section 6, is
14amended to read as follows:
153. For a retail dealer who may claim an E-85 gasoline
16promotion tax credit under section 422.11O or 422.33,
17subsection 11B, as enacted in this Act and amended in
18subsequent Acts, in calendar year 2024 2027 and whose tax
19year ends prior to December 31, 2024 2027, the retail dealer
20may continue to claim the tax credit in the retail dealer’s
21following tax year. In that case, the tax credit shall be
22calculated in the same manner as provided in section 422.11O
23or 422.33, subsection 11B, as enacted in this Act and amended
24in subsequent Acts, for the remaining period beginning on the
25first day of the retail dealer’s new tax year until December
2631, 2024 2027. For that remaining period, the tax credit shall
27be calculated in the same manner as a retail dealer whose tax
28year began on the previous January 1 and who is calculating the
29tax credit on December 31, 2024 2027.
30PART B
31BIODIESEL BLENDED FUEL TAX CREDIT
32 Sec. 49. Section 422.11P, subsection 3, paragraph b, Code
332022, is amended to read as follows:
34b. The tax credit shall apply to biodiesel blended fuel
35classified as provided in this section, if the classification
-24-1meets the standards provided in section 214A.2. In ensuring
2that biodiesel blended fuel meets the classification
3requirements of this section, the department shall take
4into account reasonable variances due to testing and other
5limitations. The department shall adopt rules to provide that
6where a blending error occurs and an insufficient amount of
7biodiesel has inadvertently been blended with petroleum-based
8diesel fuel so that the mixture fails to qualify as B-11 or
9higher a one percent tolerance applies when classifying the
10biodiesel blended fuel. If the biodiesel blended fuel does not
11meet the required classification after applying a one percent
12tolerance, the department shall adopt rules to determine the
13classification based on the retail dealer’s records of the
14volume of biodiesel blended with diesel fuel.
15 Sec. 50. Section 422.11P, subsection 4, Code 2022, is
16amended by striking the subsection and inserting in lieu
17thereof the following:
184. A retail dealer whose tax year is on a calendar
19year basis shall calculate the amount of the tax credit by
20multiplying a designated rate by the retail dealer’s total
21biodiesel blended fuel gallonage as provided in section 452A.31
22which qualifies under this subsection.
23a. In order to qualify for the tax credit, the biodiesel
24blended fuel must be classified as B-11 or higher as provided
25in paragraph “b”.
26b. The designated rate is determined as follows:
27(1) For biodiesel blended fuel classified as B-11 or higher
28but not as high as B-20, the designated rate is five cents.
29(2) For biodiesel blended fuel classified as B-20 or higher
30but not as high as B-30, the designated rate is seven cents.
31However, a classification higher than B-20 does not qualify
32for a tax credit under this subparagraph unless standards for
33that classification have been established by the department of
34agriculture and land stewardship pursuant to section 214A.2.
35(3) For biodiesel blended fuel classified as B-30 or
-25-1higher, the designated rate is ten cents. A classification of
2B-30 or higher does not qualify for a tax credit under this
3subparagraph unless standards for that classification have
4been established by the department of agriculture and land
5stewardship pursuant to section 214A.2.
6 Sec. 51. Section 422.11P, subsection 8, Code 2022, is
7amended to read as follows:
88. This section is repealed January 1, 2025 2028.
9 Sec. 52. Section 422.33, subsection 11C, paragraph c, Code
102022, is amended to read as follows:
11c. This subsection is repealed on January 1, 2025 2028.
12 Sec. 53. 2011 Iowa Acts, chapter 113, section 31, as amended
13by 2016 Iowa Acts, chapter 1106, section 10, is amended to read
14as follows:
15SEC. 31. TAX CREDIT AVAILABILITY. For a retail dealer
16who may claim a biodiesel blended fuel promotion tax credit
17under section 422.11P or 422.33, subsection 11C, as amended
18in this Act and amended in subsequent Acts, in calendar year
192024 2027, and whose tax year ends prior to December 31, 2024
20 2027, the retail dealer may continue to claim the tax credit in
21the retail dealer’s following tax year. In that case, the tax
22credit shall be calculated in the same manner as provided in
23section 422.11P or 422.33, subsection 11C, as amended in this
24Act and amended in subsequent Acts, for the remaining period
25beginning on the first day of the retail dealer’s new tax year
26until December 31, 2024 2027. For that remaining period, the
27tax credit shall be calculated in the same manner as a retail
28dealer whose tax year began on the previous January 1 and who
29is calculating the tax credit on December 31, 2024 2027.
30 Sec. 54. EFFECTIVE DATE. This part of this division of this
31Act takes effect January 1, 2023.
32PART C
33E-15 PLUS GASOLINE PROMOTION TAX CREDIT
34 Sec. 55. Section 422.11Y, subsection 4, Code 2022, is
35amended by striking the subsection and inserting in lieu
-26-1thereof the following:
24. A retail dealer whose tax year is on a calendar
3year basis shall calculate the amount of the tax credit by
4multiplying a designated rate by the retail dealer’s total
5ethanol blended gasoline gallonage as provided in section
6452A.31 which qualifies under this subsection.
7a. In order to qualify for the tax credit, the ethanol
8blended gasoline must be classified as E-15 or higher but must
9not be E-85 gasoline.
10b. The designated rate of the tax credit is nine cents.
11 Sec. 56. Section 422.11Y, subsection 9, Code 2022, is
12amended to read as follows:
139. This section is repealed on January 1, 2025 2026.
14 Sec. 57. Section 422.33, subsection 11D, paragraph c, Code
152022, is amended to read as follows:
16c. This subsection is repealed on January 1, 2025 2026.
17 Sec. 58. 2011 Iowa Acts, chapter 113, section 37, as amended
18by 2016 Iowa Acts, chapter 1106, section 3, is amended to read
19as follows:
20SEC. 37. TAX CREDIT AVAILABILITY. For a retail dealer who
21may claim an E-15 plus gasoline promotion tax credit under
22section 422.11Y or 422.33, subsection 11D, as enacted in this
23Act and amended in subsequent Acts, in calendar year 2024
24 2025, and whose tax year ends prior to December 31, 2024 2025,
25the retail dealer may continue to claim the tax credit in the
26retail dealer’s following tax year. In that case, the tax
27credit shall be calculated in the same manner as provided in
28section 422.11Y or 422.33, subsection 11D, as enacted in this
29Act and amended in subsequent Acts, for the remaining period
30beginning on the first day of the retail dealer’s new tax year
31until December 31, 2024 2025. For that remaining period, the
32tax credit shall be calculated in the same manner as a retail
33dealer whose tax year began on the previous January 1 and who
34is calculating the tax credit on December 31, 2024 2025.
35 Sec. 59. EFFECTIVE DATE. This part of this division of this
-27-1Act takes effect January 1, 2023.
2PART D
3ADMINISTRATION
4 Sec. 60. ADMINISTRATIVE RULES. The department of revenue
5may adopt rules under chapter 17A prior to the effective date
6of parts B and C of this division of this Act, which rules shall
7take effect January 1, 2023.
8DIVISION V
9RENEWABLE FUEL STANDARDS
10AND CLASSIFICATIONS — PROMOTIONAL INITIATIVES APPLIED
11TO EXCISE TAX ON ETHANOL BLENDED GASOLINE AND BIODIESEL BLENDED
12FUEL
13PART A
14REPORTING REQUIREMENTS
15 Sec. 61. Section 452A.2, Code 2022, is amended by adding the
16following new subsection:
17 NEW SUBSECTION. 37A. “Renewable fuel” means the same as
18defined in section 214A.1.
19 Sec. 62. NEW SECTION. 452A.2A Standards and classifications
20of fuel.
21For purposes of this chapter, motor fuel, including
22a renewable fuel, must meet the same standards and
23classifications as provided in section 214A.2.
24 Sec. 63. Section 452A.31, subsection 2, paragraph a,
25subparagraph (1), subparagraph division (c), Code 2022, is
26amended to read as follows:
27(c) The total E-15 plus gasoline gallonage which is the
28total number of gallons of ethanol blended gasoline classified
29as E-15 or higher, including E-85 gasoline.
30 Sec. 64. Section 452A.31, subsection 2, paragraph a,
31subparagraph (1), Code 2022, is amended by adding the following
32new subparagraph division:
33 NEW SUBPARAGRAPH DIVISION. (d) The total E-15 gasoline
34gallonage which is the total number of gallons of ethanol
35blended gasoline classified as E-15.
-28-1 Sec. 65. Section 452A.31, subsection 3, paragraph a, Code
22022, is amended to read as follows:
3a. A retail dealer’s total diesel fuel gallonage is the
4total number of gallons of diesel fuel which the retail dealer
5sells and dispenses from all motor fuel pumps operated by
6the retail dealer in this state during a twelve-month period
7beginning January 1 and ending December 31. The retail
8dealer’s total diesel fuel gallonage is divided into the
9following classifications:
10(1) The total biodiesel blended fuel gallonage which is
11the retail dealer’s total number of gallons of biodiesel
12blended fuel. and which includes all of the following
13subclassifications:
14(a) The total B-5 plus gallonage which is the total number
15of gallons of biodiesel blended fuel classified as B-5 or
16higher up to but not including B-11.
17(2) (b) The total B-11 plus gallonage which is the total
18number of gallons of biodiesel blended fuel classified as B-11
19or higher up to but not including B-20.
20(c) The total B-20 plus gallonage which is the total number
21of gallons of biodiesel blended fuel classified as B-20 or
22higher up to but not including B-30.
23(d) The total B-30 plus gallonage which is the total number
24of gallons of biodiesel blended fuel classified as B-30 or
25higher.
26(3) (2) The total nonblended diesel fuel gallonage which
27is the total number of gallons of diesel fuel which is not
28biodiesel or biodiesel blended fuel.
29 Sec. 66. Section 452A.31, subsection 4, paragraph a,
30subparagraph (1), subparagraph division (c), Code 2022, is
31amended to read as follows:
32(c) The aggregate E-15 plus gasoline gallonage which is the
33aggregate total number of gallons of ethanol blended gasoline
34classified as E-15 or higher, including E-85 gasoline.
35 Sec. 67. Section 452A.31, subsection 4, paragraph a,
-29-1subparagraph (1), Code 2022, is amended by adding the following
2new subparagraph division:
3 NEW SUBPARAGRAPH DIVISION. (d) The aggregate E-15 gasoline
4gallonage which is the aggregate total number of gallons of
5ethanol blended gasoline classified as E-15.
6 Sec. 68. Section 452A.31, subsection 5, paragraph a, Code
72022, is amended to read as follows:
8a. The aggregate diesel fuel gallonage is the total number
9of gallons of diesel fuel which all retail dealers sell and
10dispense from all motor fuel pumps operated by the retail
11dealers in this state during a twelve-month period beginning
12January 1 and ending December 31. The aggregate diesel fuel
13gallonage is divided into the following classifications:
14(1) The aggregate biodiesel blended fuel gallonage
15which is the aggregate total number of gallons of biodiesel
16blended fuel. and which includes all of the following
17subclassifications:
18(2) (a) The aggregate B-11 B-5 plus gallonage which is the
19aggregate total number of gallons of biodiesel blended fuel
20classified as B-5 or higher up to but not including B-11 or
21higher.
22(b) The aggregate B-11 plus gallonage which is the aggregate
23total number of gallons of biodiesel blended fuel classified as
24B-11 or higher up to but not including B-20.
25(c) The aggregate B-20 plus gallonage which is the aggregate
26total number of gallons of biodiesel blended fuel classified as
27B-20 or higher up to but not including B-30.
28(d) The aggregate B-30 plus gallonage which is the aggregate
29total number of gallons of biodiesel blended fuel classified
30as B-30 or higher.
31(3) (2) The aggregate nonblended diesel fuel gallonage
32which is the aggregate total number of gallons of diesel fuel
33which is not biodiesel or biodiesel blended fuel.
34 Sec. 69. Section 452A.33, subsection 1, paragraph a,
35unnumbered paragraph 1, Code 2022, is amended to read as
-30-1follows:
2Each retail dealer shall report its total motor fuel
3 gasoline and diesel fuel gallonage for a determination period
4as follows:
5 Sec. 70. Section 452A.33, subsection 1, paragraph b,
6subparagraphs (1) and (2), Code 2022, are amended to read as
7follows:
8(1) The information submitted on a company-wide basis shall
9include the total motor gasoline and diesel fuel gallonage,
10including for each classification and subclassification, sold
11and dispensed by the retail dealer as provided in paragraph “a”
12for all retail motor fuel sites from which the retail dealer
13sells and dispenses motor fuel gasoline or diesel fuel.
14(2) The information submitted on a site-by-site basis shall
15include the total motor gasoline and diesel fuel gallonage,
16including for each classification and subclassification, sold
17and dispensed by the retail dealer as provided in paragraph
18“a” separately for each retail motor fuel site from which the
19retail dealer sells and dispenses motor gasoline or diesel
20 fuel.
21 Sec. 71. Section 452A.33, subsection 1, paragraph c, Code
222022, is amended to read as follows:
23c. The retail dealer shall prepare and submit file the
24report with the department in a manner and according to
25procedures required by the department in compliance with
26section 452A.61. However, the department may require that the
27retail dealer file the report with the department by electronic
28transmission. The department may require that a retail
29dealers report to dealer file the report with the department
30on an annual, quarterly, or monthly basis. The department,
31upon application by a retail dealer, may grant a reasonable
32extension of time to file the report. A retail dealer who
33fails to file the report as required in this section or who
34fails to maintain records required to file the report shall be
35subject to a civil penalty of not more than one hundred dollars
-31-1per occurrence which shall be deposited in the general fund of
2the state.
3 Sec. 72. Section 452A.33, subsection 2, paragraph c, Code
42022, is amended to read as follows:
5c. The report shall not provide information regarding motor
6fuel or gasoline, diesel fuel, or a biofuel which is sold and
7dispensed by an individual retail dealer or at a particular
8retail motor fuel site. The report shall not include a trade
9secret protected as a confidential record pursuant to section
1022.7.
11 Sec. 73. EMERGENCY RULES. The department of revenue may
12adopt emergency rules under section 17A.4, subsection 3, and
13section 17A.5, subsection 2, paragraph “b”, to implement the
14provisions of sections 452A.31 and 452A.33 as amended by
15this part of this division of this Act. Any rules adopted
16in accordance with this section shall also be published as a
17notice of intended action as provided in section 17A.4.
18 Sec. 74. EFFECTIVE DATE. This part of this division of this
19Act, being deemed of immediate importance, takes effect upon
20enactment.
21 Sec. 75. RETROACTIVE APPLICABILITY. This part of this
22division of this Act applies retroactively to January 1, 2022.
23PART B
24EXCISE TAX IMPOSED ON GASOLINE AND DIESEL FUEL
25 Sec. 76. Section 452A.3, subsection 1, paragraph b,
26unnumbered paragraph 1, Code 2022, is amended to read as
27follows:
28On and after July 1, 2026 2030, an excise tax of thirty
29cents is imposed on each gallon of ethanol blended gasoline
30classified as E-15 or higher. Before July 1, 2026 2030, the
31rate of the excise tax on ethanol blended gasoline classified
32as E-15 or higher shall be based on the number of gallons of
33ethanol blended gasoline classified as E-15 or higher that are
34distributed in this state as expressed as a percentage of the
35number of gallons of motor fuel distributed in this state,
-32-1which is referred to as the distribution percentage. For
2purposes of this paragraph “b”, only ethanol blended gasoline
3and nonblended gasoline, not including aviation gasoline, shall
4be used in determining the percentage basis for the excise
5tax. The department shall determine the percentage basis
6for each determination period beginning January 1 and ending
7December 31 based on data information from the reports filed
8 submitted to the department for filing pursuant to section
9452A.33. The rate for the excise tax shall apply for the
10period beginning July 1 and ending June 30 following the end of
11the determination period. Before July 1, 2026 2030, the rate
12of the excise tax on each gallon of ethanol blended gasoline
13classified as E-15 or higher shall be as follows:
14 Sec. 77. Section 452A.3, subsection 3, paragraph a,
15subparagraph (1), Code 2022, is amended to read as follows:
16(1) Except as otherwise provided in this section and in
17this subchapter, the rate of the excise tax on each gallon of
18special fuel for diesel engines of motor vehicles used for any
19purpose for the privilege of operating motor vehicles in this
20state, other than biodiesel blended fuel classified as B-11
21 B-20 or higher, is thirty-two and five-tenths cents per gallon.
22 Sec. 78. Section 452A.3, subsection 3, paragraph a,
23subparagraph (2), unnumbered paragraph 1, Code 2022, is amended
24to read as follows:
25Except as otherwise provided in this section and in this
26subchapter, this subparagraph shall apply to the excise tax
27imposed on each gallon of biodiesel blended fuel classified
28as B-11 B-20 or higher used for any purpose for the privilege
29of operating motor vehicles in this state. On and after July
301, 2026 2030, the rate of the excise tax on each gallon of
31biodiesel blended fuel classified as B-11 B-20 or higher is
32thirty-two and five-tenths cents. Before July 1, 2026 2030,
33the rate of the excise tax on each gallon of biodiesel blended
34fuel classified as B-20 or higher shall be based on the number
35of gallons of biodiesel blended fuel classified as B-11 B-20
-33-1 or higher that are distributed in this state as expressed as a
2percentage of the number of gallons of special fuel for diesel
3engines of motor vehicles distributed in this state, which is
4referred to as the distribution percentage. The department
5shall determine the percentage basis for each determination
6period beginning January 1 and ending December 31 based on data
7 information from the reports filed submitted to the department
8for filing pursuant to section 452A.33. The rate of the excise
9tax shall apply for the period beginning July 1 and ending June
1030 following the end of the determination period. Before July
111, 2026 2030, the rate of the excise tax on each gallon of
12biodiesel blended fuel classified as B-11 B-20 or higher shall
13be as follows:
14 Sec. 79. EFFECTIVE DATE. This part of this division of this
15Act takes effect July 1, 2024.
16PART C
17DEDUCTION OF EXCISE TAX IMPOSED ON BIOFUEL
18USED IN BLENDING WITH GASOLINE AND DIESEL FUEL
19 Sec. 80. Section 452A.8, subsection 2, paragraph a, Code
202022, is amended by adding the following new subparagraph:
21 NEW SUBPARAGRAPH. (3) (a) The gallonage of gasoline or
22diesel fuel withdrawn from a terminal by a licensee to be
23blended with a biofuel after it is withdrawn from the terminal
24to the extent the tax rate on the gasoline or diesel fuel
25exceeds the tax rate which would be due on the ethanol blended
26gasoline or biodiesel blended fuel pursuant to section 452A.3.
27(b) This subparagraph is repealed July 1, 2030.
28DIVISION VI
29RENEWABLE FUEL STANDARDS AND CLASSIFICATIONS — PROMOTIONAL
30INITIATIVES APPLIED TO SALES AND USE TAX — REFUND PAID TO
31BIODIESEL PRODUCERS
32PART A
33PRINCIPAL PROVISIONS
34 Sec. 81. Section 423.4, subsection 9, Code 2022, is amended
35to read as follows:
-34- 19. A person who qualifies as a biodiesel producer as
2provided in this subsection may apply to the director for a
3refund of the amount of the sales or use tax imposed and paid
4upon purchases made by the person.
5a. The person must be engaged in the manufacturing
6of biodiesel who has registered with the United States
7environmental protection agency as a manufacturer according to
8the requirements in 40 C.F.R. §79.4. The biodiesel must be for
9use in biodiesel blended fuel in conformance with the standards
10and classifications in section 214A.2. The person must comply
11with the requirements of this subsection and rules adopted by
12the department pursuant to this subsection.
13b. The amount of the refund shall be calculated by
14multiplying a designated rate by the total number of gallons
15of biodiesel produced by the biodiesel producer in this state
16during each quarter of a calendar year. The designated rate
17shall be two four cents.
18c. A biodiesel producer shall not be eligible to receive
19a refund under this subsection on more than twenty-five
20million gallons of biodiesel produced each calendar year by
21the biodiesel producer at each facility where the biodiesel
22producer manufactures biodiesel.
23d. A person shall obtain a refund by completing forms
24furnished by the department and filed by the person on a
25quarterly basis as required by the department. The department
26shall refund the amount claimed by the person after subtracting
27any amount owing from the sales or use taxes imposed and paid
28upon purchases made by the person.
29e. This subsection is repealed on January 1, 2025 2028.
30 Sec. 82. EFFECTIVE DATE. This part of this division of this
31Act takes effect January 1, 2023.
32PART B
33IMPLEMENTATION
34 Sec. 83. ADMINISTRATIVE RULES. The department of revenue
35may adopt rules under chapter 17A prior to the effective date
-35-1of part A of this division of this Act, which rules shall take
2effect January 1, 2023.
3DIVISION VII
4PROMOTIONAL INITIATIVES — RENEWABLE FUEL INFRASTRUCTURE
5 Sec. 84. Section 159A.11, subsection 6, Code 2022, is
6amended by striking the subsection and inserting in lieu
7thereof the following:
86. “Motor fuel storage and dispensing infrastructure” or
9“infrastructure” means the same as defined in section 214.1.
10 Sec. 85. Section 159A.11, Code 2022, is amended by adding
11the following new subsection:
12 NEW SUBSECTION. 6A. “Motor fuel storage tank” means the
13same as defined in section 214.1.
14 Sec. 86. Section 159A.11, subsection 10, Code 2022, is
15amended by striking the subsection.
16 Sec. 87. Section 159A.12, Code 2022, is amended to read as
17follows:
18159A.12 Classification Standards and classifications of motor
19fuel and renewable fuel.
20For purposes of this subchapter, ethanol blended fuel and
21biodiesel motor fuel shall be classified in the same manner,
22including a renewable fuel, must meet the same standards and
23classifications as provided in section 214A.2.
24 Sec. 88. Section 159A.13, subsection 6, Code 2022, is
25amended by striking the subsection.
26 Sec. 89. Section 159A.14, subsections 1 and 2, Code 2022,
27are amended to read as follows:
281. The purpose of the program is to improve retail
29motor fuel sites by installing, replacing, or converting
30infrastructure to be used to store, blend, or dispense
31renewable fuel. The infrastructure shall be ethanol
32infrastructure or biodiesel infrastructure.
33a. (1) Ethanol infrastructure shall be designed and used
34exclusively have the capacity to do any of the following:
35(a) Store and dispense E-15 gasoline. At least for the
-36-1period beginning on September 16 and ending on May 31 of each
2year, the ethanol infrastructure must be used to store and
3dispense E-15 gasoline as a registered fuel recognized by the
4United States environmental protection agency.
5(b) Store and dispense E-85 gasoline.
6(c) (b) Store, blend, and dispense motor fuel ethanol or
7ethanol blended gasoline from a motor fuel blender pump. The
8ethanol infrastructure must be used for the storage of ethanol
9or ethanol blended gasoline, or for blending ethanol with
10gasoline. The ethanol infrastructure must at least include
11a motor fuel blender pump which that dispenses different
12classifications of ethanol blended gasoline and allows E-15
13gasoline and E-85 gasoline to be dispensed at all times that
14the blender pump is operating.
15(2) Biodiesel infrastructure shall be designed and used
16exclusively have the capacity to do any of the following:
17(a) Store and dispense biodiesel or biodiesel blended fuel
18classified as B-20 or higher.
19(b) Blend or Store, blend, and dispense biodiesel fuel
20from a motor fuel blender pump. The biodiesel infrastructure
21must at least include a motor fuel blender pump that dispenses
22different classifications of biodiesel blended fuel and allows
23biodiesel blended fuel classified as B-5 or higher to be
24dispensed at all times that the blender pump is operating.
25b. The infrastructure must be part of the premises of
26a retail motor fuel site operated by a retail dealer. The
27infrastructure shall not include a tank vehicle.
282. a. A person may apply to the department to receive
29financial incentives on a cost-share basis according to
30procedures required by the department. The department shall
31accept a timely received application to improve a retail
32motor fuel site as provided in this section and forward the
33applications that application to the underground storage tank
34fund infrastructure board, as required by that the board, for
35evaluation and recommendation. The underground storage tank
-37-1fund board may rank the applications with comments and shall
2forward them to the infrastructure board for its approval or
3disapproval.
4b. The application shall allow the department to determine
5whether the person is a retail dealer assigned special status.
6The department shall assign the person special status if
7the person does not comply with the E-15 access standard
8as provided in section 214A.32 only because the person is
9ineligible to be issued an E-15 incompatible infrastructure
10class 2 waiver order for that retail motor fuel site as
11provided in section 214A.35, subsection 6.
12c. The infrastructure board may establish a system to
13rank applications for approval. In ranking applications, the
14infrastructure board may provide special priority to any of the
15following:
16(1) A retail motor fuel site that has been constructed and
17is operating.
18(2) (a) A retail motor fuel site owned or operated by a
19person who the department assigns special status as provided
20in paragraph “b”.
21(b) (i) This subparagraph shall be implemented on January
221, 2023.
23(ii) This subparagraph division is repealed January 2,
242023.
25d. The department shall award financial incentives on a
26cost-share basis to an eligible person whose application was
27approved by the infrastructure board.
28 Sec. 90. Section 159A.14, subsection 3, unnumbered
29paragraph 1, Code 2022, is amended to read as follows:
30The infrastructure board shall approve cost-share
31agreements executed by the department and persons that the
32infrastructure board determines are eligible as provided in
33this section, according to terms and conditions required by the
34infrastructure board. The infrastructure board shall determine
35the amount of the financial incentives to be awarded to a
-38-1person participating in the program. The determination may be
2based on applications prioritized for approval as described in
3subsection 2. In order to be eligible to participate in the
4program, all of the following must apply:
5 Sec. 91. Section 159A.14, subsection 5, Code 2022, is
6amended to read as follows:
75. An award of financial incentives to a participating
8person shall be on a cost-share basis in the form of a grant.
9To participate in the program, an eligible person must execute
10a cost-share agreement with the department as approved by
11the infrastructure board in which the person contributes a
12percentage of the total costs related to improving the retail
13motor fuel site.
14a. A cost-share agreement shall be for a three-year period
15or a five-year period.
16b. (1) For the term of an agreement to improve a retail
17motor fuel site by installing, replacing, or converting ethanol
18infrastructure, the participating person must use the ethanol
19infrastructure to store and dispense, or store, blend, and
20dispense, ethanol blended gasoline classified as E-15 or
21higher.
22(2) For the term of an agreement to improve a motor
23fuel site by installing, replacing, or converting biodiesel
24infrastructure, the participating person must use the biodiesel
25infrastructure to store and dispense, or store, blend, and
26dispense, biodiesel blended fuel classified as B-5 or higher.
27However, at least for the period beginning April 1 and ending
28October 31 of each year, the participating person must use
29the biodiesel infrastructure to store and dispense, or store,
30blend, and dispense, biodiesel blended fuel classified as B-11
31or higher.
32c. A cost-share agreement shall include provisions for
33standard financial incentives or standard financial incentives
34and supplemental financial incentives as provided in this
35subsection. The infrastructure board may approve multiple
-39-1improvements to the same retail motor fuel site for the full
2amount available for both ethanol infrastructure and biodiesel
3infrastructure so long as the improvements for ethanol
4infrastructure and for biodiesel infrastructure are made under
5separate cost-share agreements.
6a. d. (1) Except as provided in paragraph “b” “e”,
7a participating person may be awarded standard financial
8incentives to make improvements to a retail motor fuel site.
9The standard financial incentives awarded to a participating
10person shall not exceed the following:
11(a) For a three-year cost-share agreement, fifty percent of
12the actual cost of making the improvement or thirty thousand
13dollars, whichever is less.
14(b) For a five-year cost-share agreement, seventy percent
15of the actual cost of making the improvement or fifty thousand
16dollars, whichever is less.
17(2) (a) The infrastructure board may approve multiple
18awards of standard financial incentives to make improvements to
19a the retail motor fuel site so long as the total amount of the
20awards for ethanol infrastructure or biodiesel infrastructure
21does not exceed the limitations provided in subparagraph (1).
22(b) If the department determines that a participating
23person is assigned special status because the participating
24person is ineligible to be issued an E-15 incompatible
25infrastructure class 2 waiver order for the retail motor fuel
26site as provided in subsection 2, the infrastructure board may
27approve one or multiple awards of standard financial incentives
28to make improvements to that retail motor fuel site subject to
29all of the following:
30(i) The total amount of awards shall not be reduced by
31the amount of any standard financial incentives awarded to
32improve the retail motor fuel site before the department’s
33determination, notwithstanding subparagraph division (a).
34(ii) The total amount of awards for ethanol infrastructure
35or biodiesel infrastructure shall not exceed the limitations
-40-1provided in subparagraph (1).
2b. e. In addition to any standard financial incentives
3awarded to a participating person under paragraph “a” “d”, the
4participating person may be awarded supplemental financial
5incentives to make improvements to a retail motor fuel site to
6do any of the following:
7(1) Upgrade or replace a dispenser which is part of
8gasoline storage and dispensing infrastructure used to store
9and dispense E-85 gasoline as provided in section 455G.31.
10The participating person is only eligible to be awarded the
11supplemental financial incentives if the person installed the
12dispenser not later than sixty days after July 27, 2011. The
13supplemental financial incentives awarded to the participating
14person shall not exceed seventy-five percent of the actual cost
15of making the improvement or thirty thousand dollars, whichever
16is less.
17(2) To improve additional retail motor fuel sites owned or
18operated by a participating person within a twelve-month period
19as provided in the cost-share agreement. The supplemental
20financial incentives shall be used for the installation
21of an additional motor fuel storage tank and associated
22infrastructure at each such retail motor fuel site. A
23participating person may be awarded supplemental financial
24incentives under this subparagraph paragraph and standard
25financial incentives under paragraph “a” “d” to improve the
26same retail motor fuel site. The supplemental financial
27incentives awarded to the participating person shall not
28exceed twenty-four thousand dollars. The participating person
29shall be awarded the supplemental financial incentives on a
30cumulative basis according to the schedule provided in this
31subparagraph paragraph, which shall not exceed the following:
32(a) (1) For the second retail motor fuel site, six thousand
33dollars.
34(b) (2) For the third retail motor fuel site, six thousand
35dollars.
-41- 1(c) (3) For the fourth retail motor fuel site, six thousand
2dollars.
3(d) (4) For the fifth retail motor fuel site, six thousand
4dollars.
5 Sec. 92. Section 159A.15, subsection 1, Code 2022, is
6amended to read as follows:
71. A person may apply to the department to receive financial
8incentives on a cost-share basis. The department shall forward
9the applications to the underground storage tank fund board as
10required by that board for evaluation and recommendation. The
11underground storage tank fund board may rank the applications
12with comments and shall forward them to the infrastructure
13board for approval or disapproval. The department shall award
14financial incentives on a cost-share basis to an eligible
15person whose application was approved by the infrastructure
16board.
17 Sec. 93. Section 159A.16, subsection 3, Code 2022, is
18amended to read as follows:
193. Moneys in the renewable fuel infrastructure fund are
20appropriated to the department exclusively to support and
21market the renewable fuel infrastructure programs as provided
22in sections 159A.14 and 159A.15, and as allocated in financial
23incentives by the renewable fuel infrastructure board created
24in section 159A.13. Up to fifty
25a. For each fiscal year, not more than one million
26two hundred fifty thousand dollars shall be allocated to
27support the renewable fuel infrastructure program for retail
28motor fuel sites as provided in section 159A.14 to finance
29the installation, replacement, or conversion of biodiesel
30infrastructure as provided in that section.
31b. For each fiscal year, not more than one hundredthousand
32dollars shall be allocated each fiscal year to the department
33to support the administration of the programs. The
34c. For each fiscal year, thedepartment may use up to
35one and one-half percent of the program funds to market the
-42-1programs. Otherwise the moneys shall not be transferred, used,
2obligated, appropriated, or otherwise encumbered except to
3allocate as financial incentives under the programs.
da/ns/md