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House File 2439 - IntroducedA Bill ForAn Act 1providing for programs and regulations administered
2and enforced by the department of agriculture and land
3stewardship, providing fees, providing penalties, and making
4penalties applicable.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2choose iowa promotional program
3 Section 1. Section 159.20, Code 2022, is amended by adding
4the following new subsection:
5 NEW SUBSECTION. 1A. The department shall establish and
6administer a choose Iowa promotional program as provided in
7part 2 of this subchapter, in order to provide consumers
8a choice in purchasing food items that originate as an
9agricultural commodity produced on Iowa farms.
10 Sec. 2. NEW SECTION. 159.26 Definitions.
11As used in this part:
121. “Food item” means any of the following:
13a. A perishable item derived from an agricultural commodity,
14or processed from an agricultural commodity, that is fit for
15human consumption.
16b. Honey produced from bees in a managed beehive.
172. “Iowa farm” means land in this state used to produce an
18agricultural commodity.
193. “Process” means to prepare a food item in a manner that
20allows it to be fit for human consumption.
214. “Program” means the choose Iowa promotional program
22established in section 159.29.
23 Sec. 3. NEW SECTION. 159.28 Administration.
24The department shall administer the provisions of this part,
25including by adopting rules pursuant to chapter 17A as it
26determines are necessary or desirable.
27 Sec. 4. NEW SECTION. 159.29 Choose Iowa promotional
28program.
291. The department shall establish and administer a choose
30Iowa promotional program to advertise for sale on a retail
31basis a food item that originates as an agricultural commodity
32produced on an Iowa farm, and that may include any of the
33following:
34a. An agricultural commodity, except that it may be prepared
35for sale by washing or packaging in this state.
-1- 1b. A product, if it is processed in this state and any of
2its ingredients originate as an agricultural commodity produced
3on an Iowa farm.
42. a. The department may adopt rules further defining
5an Iowa farm and describing how an agricultural commodity
6originates on an Iowa farm.
7b. The department may adopt rules providing for the
8acceptable use of ingredients originating from agricultural
9commodities not produced on Iowa farms. In adopting the
10rules, the department may consider whether the ingredient is
11an incidental additive or other component that the department
12determines is insignificant.
13 Sec. 5. NEW SECTION. 159.30 Choose Iowa logo.
141. As part of the program, the department may establish
15a choose Iowa logo to identify a food item originating as an
16agricultural commodity produced on an Iowa farm.
172. The department may register the choose Iowa logo as a
18mark with the secretary of state under chapter 548. If allowed
19under federal law, the department may also register the logo as
20a trademark with the United States patent and trademark office
21or as a copyright with the United States copyright office.
223. This section does not require the department to
23incorporate the name “choose Iowa” as part of a mark,
24trademark, or copyright, if such name is already protected by
25state or federal law.
264. If the department registers a mark with the secretary
27of state, registers a trademark with the United States patent
28and trademark office, or registers a copyright with the United
29States copyright office under this section, the state of
30Iowa shall be named as the owner of the mark, trademark, or
31copyright.
325. The use of a choose Iowa logo does not do any of the
33following:
34a. Provide an express or implied guarantee or warranty
35concerning the safety, fitness, merchantability, or use of a
-2-1food item.
2b. Supersede, revise, or replace a state or federal labeling
3requirement, including but not limited to a provision in the
4federal Fair Packaging and Labeling Act, 15 U.S.C.§1451 et
5seq.
6c. Indicate the grade, specification, standard, or value of
7any food item.
8 Sec. 6. NEW SECTION. 159.31 Choose Iowa licensing agreement
9— fees.
101. A person may apply to the department to participate in
11the choose Iowa promotional program according to procedures
12established by rules adopted by the department. The department
13shall evaluate and approve or disapprove applications based
14on criteria established by rules adopted by the department.
15The department may disapprove an application if the department
16determines the applicant’s use of the choose Iowa logo would be
17associated with the consumption of an adulterated or illegal
18food item.
192. The department may enter into a licensing agreement
20with a person participating in the program. The participating
21person may use the choose Iowa logo to advertise a food item
22originating as an agricultural commodity produced on an Iowa
23farm, subject to terms and conditions required by rules adopted
24by the department. A licensing agreement shall not be for more
25than one year.
263. The department shall establish application and license
27fees by rules adopted by the department.
28 Sec. 7. NEW SECTION. 159.31A Choose Iowa fund.
291. A choose Iowa fund is established in the state treasury
30under the management and control of the department.
312. The fund shall include moneys collected as fees by the
32department as provided in section 159.31, moneys appropriated
33by the general assembly, and other moneys available to and
34obtained or accepted by the department, including moneys from
35public or private sources.
-3- 13. Moneys in the fund are appropriated to the department
2and shall be used exclusively to carry out the provisions of
3this part as determined and directed by the department, and
4shall not require further special authorization by the general
5assembly.
64. a. Notwithstanding section 12C.7, interest or earnings
7on moneys in the fund shall be credited to the fund.
8b. Notwithstanding section 8.33, moneys in the fund that
9remain unencumbered or unobligated at the end of a fiscal year
10shall not revert.
11 Sec. 8. DIRECTIONS TO CODE EDITOR — TRANSFER.
121. The Code editor is directed to make the following
13transfer:
14Section 159.27 to section 159.25.
152. The Code editor shall correct internal references in the
16Code and in any enacted legislation as necessary due to the
17enactment of this section.
18 Sec. 9. DIRECTIONS TO CODE EDITOR — PARTS. The Code editor
19is directed to divide the provisions in chapter 159, subchapter
20II, as amended, enacted, or transferred in this division of
21this Act, into parts as follows:
221. Part 1, including sections 159.20 through 159.25.
232. Part 2, including sections 159.26 through 159.31A.
24DIVISION II
25regulation of pesticides
26 Sec. 10. Section 206.12, subsection 3, Code 2022, is amended
27to read as follows:
283. The registrant, before selling or offering for sale any
29pesticide for use in this state, shall register each brand and
30grade of such pesticide with the secretary upon forms furnished
31by the secretary, and the secretary shall set the registration
32fee annually at one-fifth of one percent of gross sales within
33this state with a minimum fee of two hundred fifty dollars and
34a maximum fee of three thousand hundred dollars for each and
35every brand and grade to be offered for sale in this state
-4-1except as otherwise provided. The annual registration fee for
2products with gross annual sales in this state of less than
3one million five hundred thousand dollars shall be the greater
4of two hundred fifty dollars or one-fifth of one percent of
5the gross annual sales as established by affidavit of the
6registrant. The secretary shall adopt by rule exemptions to
7the minimum fee. Fifty dollars of each fee collected shall be
8deposited in the general fund of the state, shall be subject
9to the requirements of section 8.60, and shall be used only
10for the purpose of enforcing the provisions of this chapter
11and the remainder of each fee collected shall be placed in the
12agriculture management account of the groundwater protection
13fund.
14 Sec. 11. Section 206.19, subsection 5, paragraph b, Code
152022, is amended to read as follows:
16b. The amount of the civil penalty that may be assessed
17for each violation committed by a commercial applicator or
18private applicator shall not exceed five hundred dollars for
19each offense.
20DIVISION III
21regulation of motor fuels
22 Sec. 12. Section 214A.1, subsections 2, 5, and 13, Code
232022, are amended to read as follows:
242. “A.S.T.M. ASTM international” means the American society
25for testing and materials international.
265. “Biodiesel” means a renewable fuel comprised of
27mono-alkyl esters of long-chain fatty acids derived from
28vegetable oils or animal fats, which is manufactured by the
29use of a transesterification reaction, and which meets the
30standards provided in section 214A.2.
3113. “E-85 gasoline” or “E-85” means ethanol blended gasoline
32formulated with a percentage of between seventy sixty-eight
33 and eighty-five eighty-three percent by volume of ethanol, if
34the formulation excludes a denaturant, and which meets the
35standards provided in section 214A.2.
-5-1 Sec. 13. NEW SECTION. 214A.1A Administration and
2enforcement.
3This chapter shall be administered and enforced by the
4department which may adopt rules under chapter 17A to carry out
5the provisions of this chapter.
6 Sec. 14. Section 214A.2, Code 2022, is amended to read as
7follows:
8214A.2 Tests and standards Standards and classifications.
91. a. The department shall adopt rules pursuant to chapter
1017A for carrying out this chapter. The rules may include but
11are not limited to specifications establishing departmental
12standards relating to motor fuel, including but not limited to
13renewable fuel such as ethanol blended gasoline, biobutanol
14blended gasoline, biodiesel, biodiesel blended fuel, fuels and
15motor fuel components such as an oxygenate.
16b. In the interest of uniformity, the department shall
17adopt by reference other in part or in whole, as some of its
18departmental standards described in paragraph “a”, applicable
19 specifications relating to tests and standards for motor fuel,
20including renewable fuel and motor fuel components, adopted by
21ASTM international and applicable requirements established by
22the United States environmental protection agency and A.S.T.M.
23international.
242. Octane number shall conform to the average of values
25obtained from the A.S.T.M. ASTM international D2699 research
26method and the A.S.T.M. ASTM international D2700 motor method.
27a. Octane number for regular grade unleaded gasoline shall
28follow the specifications of A.S.T.M. ASTM international but
29shall not be less than eighty-seven.
30b. Octane number for premium grade unleaded gasoline shall
31follow the specifications of A.S.T.M. ASTM international but
32shall not be less than ninety ninety-one.
333. a. For motor fuel advertised for sale or sold as
34gasoline by a dealer, the motor fuel must meet requirements
35for that type of motor fuel and its additives established by
-6-1the United States environmental protection agency including as
2provided under 42 U.S.C. §7545.
3b. If the motor fuel is advertised for sale or sold as
4ethanol blended gasoline, the motor fuel must comply with meet
5 departmental standards which shall meet all of the following
6requirements including as follows:
7(1) Ethanol must be an agriculturally derived ethyl alcohol
8that meets A.S.T.M. departmental standards based in part or in
9whole on ASTM international specification D4806 for denatured
10fuel ethanol for blending with gasoline for use as automotive
11spark-ignition engine fuel, or a successor A.S.T.M. ASTM
12 international specification, as established by rules adopted
13by the department rule.
14(2) Gasoline blended with ethanol must meet requirements
15established by rules adopted departmental standards based
16 in part or in whole based on A.S.T.M. ASTM international
17specification D4814, or a successor ASTM international
18specification, established by rule.
19(3) (a) For ethanol blended gasoline, at least nine ten
20 percent by volume must be fuel grade ethanol. In addition, the
21following applies:
22(a) (b) For the period beginning on September 16 and
23ending on May 31 of each year, the state grants a waiver of
24one pound per square inch from the A.S.T.M. ASTM international
25D4814 specification for Reid vapor pressure requirement, or
26a successor ASTM international specification, established by
27rule.
28(b) For the period beginning on June 1 and ending on
29September 15 of each year the United States environmental
30protection agency must grant a one pound per square inch waiver
31for ethanol blended conventional gasoline with at least nine
32but not more than ten percent by volume of ethanol pursuant to
3340 C.F.R. §80.27.
34(4) For standard ethanol blended gasoline, it must be
35ethanol blended gasoline classified as any of the following:
-7- 1(a) From E-9 E-10 up to but not higher than E-15, if the
2ethanol blended gasoline meets the departmental standards for
3that classification as otherwise provided in this paragraph
4“b”.
5(b) Higher than E-15 but not E-85 gasoline, if the
6classification is authorized by the department pursuant to
7approval for the use of that classification of ethanol blended
8gasoline in this state by the United States environmental
9protection agency, by granting a waiver or the adoption of
10regulations.
11(5) E-85 gasoline must be an agriculturally derived ethyl
12alcohol that meets A.S.T.M. departmental standards based in
13part or in whole on ASTM international specification D5798,
14described as a fuel blend for use in ground vehicles with
15automotive spark-ignition engines, or a successor A.S.T.M. ASTM
16 international specification, as established by rules adopted
17by the department rule.
18c. If the motor fuel is advertised for sale or sold as
19biobutanol blended gasoline, the motor fuel must comply
20with meet departmental standards which shall meet all of the
21following requirements as follows:
22(1) Biobutanol must be an agriculturally derived isobutyl
23or n-butyl alcohol that meets A.S.T.M. ASTMinternational
24specification D7862 for butanol for blending with gasoline for
25use as automotive spark-ignition engine fuel, or a successor
26A.S.T.M. ASTMinternational specification, as established by
27rules adopted by the department rule.
28(2) Gasoline blended with biobutanol must meet requirements
29established by rules adopted departmental standards based
30 in part or in whole based on A.S.T.M. ASTMinternational
31specification D4814, or a successor ASTM international
32specification, established by rule.
334. a. For motor fuel advertised for sale or sold as diesel
34fuel by a dealer, the motor fuel must meet requirements for
35that type of motor fuel and its additives established by the
-8-1United States environmental protection agency including as
2provided under 42 U.S.C. §7545.
3b. If the motor fuel is advertised for sale or sold as
4biodiesel or biodiesel blended fuel, the motor fuel must comply
5with meet departmental standards which shall comply with based
6in part or in whole on specifications adopted by A.S.T.M. ASTM
7 international for biodiesel or biodiesel blended fuel, to
8every extent applicable, as determined by rules adopted by the
9department. the department, subject to the following:
10(1) Biodiesel must conform to A.S.T.M. meet departmental
11standards based in whole or in part on ASTM international
12specification D6751, or a successor A.S.T.M. ASTM international
13specification, as established by rules adopted by the
14department rule. The specification shall apply to biodiesel
15before it leaves its place of manufacture.
16(2) At least one five percent of biodiesel blended fuel by
17volume must be biodiesel.
18(3) The biodiesel may be blended with diesel fuel whose
19sulfur, aromatic, lubricity, and cetane levels do not comply
20with A.S.T.M. ASTM international specification D975 grades
211-D or 2-D, low sulfur 1-D or 2-D, or ultra-low sulfur grades
221-D or 2-D, provided that the finished biodiesel blended fuel
23meets A.S.T.M. international specification D975 or a successor
24A.S.T.M. international specification as established by rules
25adopted by the department departmental standards as required in
26subparagraph (1).
27(4) Biodiesel blended fuel classified as B-6 or higher
28but not higher than B-20 must conform to A.S.T.M. meet
29departmental standards based in whole or in part on ASTM
30 international specification D7467, or a successor A.S.T.M. ASTM
31 international specification, as established by rules adopted
32by the department rule.
335. Motor fuel shall be classified as follows:
34a. (1) Ethanol shall be classified as E-100.
35(2) Ethanol blended gasoline formulated with a percentage
-9-1of between sixty-eight and eighty-three percent by volume of
2ethanol shall be classified as E-85.
3(3) Ethanol blended gasoline, other than ethanol blended
4gasoline classified as E-85, shall be designated classified as
5 E-xx where “xx” is the volume percent of ethanol in the ethanol
6blended gasoline.
7b. (1) Biobutanol shall be classified as Bu-100.
8(2) Biobutanol blended gasoline shall be designated
9 classified as Bu-xx where “xx” is the volume percent of
10biobutanol in the biobutanol blended gasoline.
11c. (1) Biodiesel shall be classified as B-100.
12(2) Biodiesel blendedfuel shall be designated classified
13as B-xx where “xx” is the volume percent of biodiesel.
146. Motor fuel shall not contain more than trace amounts of
15MTBE, as provided in section 214A.18.
16 Sec. 15. Section 214A.2A, subsection 1, Code 2022, is
17amended to read as follows:
181. Fuel which is sold or is kept, offered, or exposed for
19sale as kerosene shall be labeled as kerosene. The label shall
20include the word “kerosene” or the designation “K1 kerosene”,
21and shall indicate that the kerosene is in compliance with the
22standard specification adopted by A.S.T.M. ASTM international
23specification D3699 (1982), or a successor ASTM international
24specification, established by rules adopted by the department.
25 Sec. 16. Section 214A.2B, Code 2022, is amended to read as
26follows:
27214A.2B Laboratory for motor fuel and biofuels.
28A laboratory for motor fuel and biofuels is established at
29a community college which is engaged in biofuels testing on
30July 1, 2007, and which testing includes but is not limited to
31B-20 biodiesel fuel testing for motor trucks and the ability of
32biofuels to meet A.S.T.M. ASTM international standards. The
33laboratory shall conduct testing of motor fuel sold in this
34state and biofuel which is blended in motor fuel in this state
35to ensure that the motor fuel or biofuels meet the requirements
-10-1in section 214A.2.
2 Sec. 17. Section 214A.3, Code 2022, is amended to read as
3follows:
4214A.3 Advertising.
51. For all motor fuel, a A person shall not knowingly do any
6of the following:
7a. 1. Advertise the for sale of any motor fuel which that
8 does not meet the standards provided in section 214A.2.
9b. 2. Falsely advertise for sale the quality, type, or kind
10of any motor fuel or a component of motor fuel.
11c. 3. Add a coloring matter to the motor fuel which
12misleads a person who is purchasing the motor fuel about the
13quality of the motor fuel.
144. Falsely advertise for sale the classification of a motor
15fuel as provided in section 214A.2.
162. For a renewable fuel, all of the following apply:
17a. A person shall not knowingly falsely advertise that a
18motor fuel is a renewable fuel or is not a renewable fuel.
19b. (1) Ethanol blended gasoline sold by a dealer shall
20be designated according to its classification as provided in
21section 214A.2. However, a person advertising E-9 or E-10
22gasoline may only designate it as ethanol blended gasoline. A
23person advertising ethanol blended gasoline formulated with a
24percentage of between seventy and eighty-five percent by volume
25of ethanol shall designate it as E-85. A person shall not
26knowingly falsely advertise ethanol blended gasoline by using
27an inaccurate designation in violation of this subparagraph.
28(2) A person shall not knowingly falsely advertise
29biobutanol blended gasoline by using an inaccurate designation
30as provided in section 214A.2.
31(3) A person shall not knowingly falsely advertise
32biodiesel fuel by using an inaccurate designation as provided
33in section 214A.2.
34 Sec. 18. Section 214A.5, subsection 2, Code 2022, is amended
35to read as follows:
-11- 12. A wholesale dealer selling ethanol blended gasoline,
2biobutanol blended gasoline, or biodiesel blended fuel to
3a purchaser shall provide the purchaser with a statement
4indicating its designation classification as provided in
5section 214A.2. The statement may be on the sales slip
6provided in this section or a similar document, including but
7not limited to a bill of lading or invoice.
8 Sec. 19. Section 214A.16, Code 2022, is amended to read as
9follows:
10214A.16 Notice of renewable fuel — decal.
111. a. If ethanol blended gasoline is sold from a motor
12fuel pump, the motor fuel pump shall have affixed a decal
13identifying the ethanol blended gasoline.
14b. If the motor fuel pump dispenses ethanol blended gasoline
15classified as E-11 to E-15 for use in gasoline-powered vehicles
16not required to be flexible fuel vehicles, the motor fuel pump
17shall have affixed a decal as prescribed by the United States
18environmental protection agency.
19c. 1. a. If the motor fuel pump dispenses ethanol blended
20gasoline classified as higher than standard ethanol blended
21gasoline pursuant to section 214A.2 is advertised for sale or
22sold at a retail motor fuel site, the motor fuel dispenser
23dispensing the ethanol blended gasoline shall be affixed with a
24 decal shall contain language stating that the classification
25of the ethanol blended gasoline is for use in flexible fuel
26vehicles.
27d. b. If biobutanol blended gasoline is advertised for sale
28or sold from at a retail motor fuel site, the motor fuel pump,
29the motor fuel pump dispenser dispensing the biobutanol blended
30gasoline shall have be affixed with a decal identifying the
31classification of biobutanol blended gasoline.
32e. If biodiesel fuel is sold from a motor fuel pump, the
33motor fuel pump shall have affixed a decal identifying the
34biodiesel fuel as provided in 16 C.F.R. pt.306.
352. The design and location of the decal shall be prescribed
-12-1by rules adopted by the department. A decal identifying a
2renewable fuel shall be consistent with standards adopted
3pursuant to section 159A.6. The department may approve an
4application to place a decal in a special location on a pump
5 dispenser or container or use a decal with special lettering
6or colors, if the decal appears clear and conspicuous to the
7consumer. The application shall be made in writing pursuant to
8procedures adopted by the department.
9 Sec. 20. Section 452A.12, subsection 2, Code 2022, is
10amended to read as follows:
112. A person while transporting motor fuel or undyed special
12fuel from a refinery or marine or pipeline terminal in this
13state or from a point outside this state over the highways
14of this state in service other than that under subsection
151 shall carry in the vehicle a loading invoice showing the
16name and address of the seller or consignor, the date and
17place of loading, and the kind and quantity of motor fuel or
18special fuel loaded, together with invoices showing the kind
19and quantity of each delivery and the name and address of each
20purchaser or consignee. An invoice carried pursuant to this
21subsection for ethanol blended gasoline or biodiesel blended
22fuel shall state its designation classification as provided in
23section 214A.2.
24 Sec. 21. Section 455G.31, subsection 1, paragraph b, Code
252022, is amended to read as follows:
26b. Ethanol blended gasoline shall be designated classified
27 in the same manner as provided in section 214A.2.
28EXPLANATION
29The inclusion of this explanation does not constitute agreement with
30the explanation’s substance by the members of the general assembly.
31GENERAL. This bill provides for programs and regulations
32administered and enforced by the department of agriculture and
33land stewardship (DALS).
34CHOOSE IOWA PROMOTIONAL PROGRAM. The bill requires DALS
35to establish and administer a choose Iowa promotional program
-13-1(program) in order to provide consumers a choice in purchasing
2a food item originating as an agricultural commodity produced
3on an Iowa farm (amended Code section 159.20). This includes
4either (1) an agricultural commodity produced on an Iowa farm
5or (2) a product processed in this state, if the product is
6an agricultural commodity that has been prepared in Iowa, or
7any of the product’s ingredients are agricultural commodities
8produced on an Iowa farm (new Code section 159.29). DALS is
9provided discretion to further define what constitutes an Iowa
10farm and describe how an agricultural commodity originates on
11an Iowa farm.
12CHOOSE IOWA LOGO. As part of the program, DALS may establish
13a choose Iowa logo (logo) to identify a food item originating
14as an agricultural commodity produced on an Iowa farm. DALS
15may register the logo as a mark with the secretary of state.
16DALS may also register the logo as a trademark with the United
17States patent and trademark office or as a copyright with the
18United States copyright office. The use of the logo does not
19create an express or implied warranty; involve state or federal
20labeling requirements; or indicate the grade, specification,
21standard, or value of a food item (new Code section 159.30).
22CHOOSE IOWA PROMOTIONAL PROGRAM — LICENSING AGREEMENTS AND
23FEES. DALS may enter into a licensing agreement (agreement)
24with a person who applies to use the logo. An agreement cannot
25be for more than five years. DALS must evaluate and approve or
26disapprove applications based on criteria established by rule.
27DALS may also establish application and license fees by rule.
28CHOOSE IOWA FUND. A choose Iowa fund (fund) is established
29in the state treasury under DALS’ management and control. The
30fund includes moneys that DALS collects in fees or otherwise
31receives, including by appropriation or gift. DALS must use
32the moneys exclusively to carry out the provisions of the bill.
33PESTICIDE REGULATION. The bill amends Code chapter 206,
34“the Pesticide Act of Iowa” (Code section 206.1) which in part
35regulates commercial and private applicators. Before selling
-14-1or offering for sale any pesticide for use in this state, a
2person must register each brand and grade of that pesticide
3with DALS. Registration fees are based on a percentage
4of gross sales of that brand or grade in this state with a
5minimum fee of $250 and a maximum fee of $3,000 (Code section
6206.12(3)). The bill replaces that method of calculating the
7registration fee with a flat fee of $300. Generally, a person
8in business as a commercial applicator (applying pesticides to
9another person’s land) must be certified and licensed (Code
10sections 206.5 and 206.6). A private applicator (e.g., a
11farmer) applying a restricted use pesticide must be certified
12(Code section 206.5). During the last regular session, the
13general assembly enacted SF 482 (2021 Acts, chapter 28) which
14in part provides that a private applicator is subject to the
15same civil penalty as a commercial applicator for violating a
16provision of the Code chapter (amended Code section 206.19).
17The Act provided that the amount for each violation committed
18by a commercial applicator or private applicator cannot exceed
19$500 for each violation. The bill amends the provision by
20changing the term from “violation” back to “offense”.
21MOTOR FUEL REGULATION — BACKGROUND. DALS regulates persons
22advertising for sale or selling motor fuel on a wholesale
23or retail basis (Code chapter 214A) as well as motor fuel
24infrastructure used to store and dispense motor fuel at a
25retail motor fuel site owned or operated by a retail dealer
26and, in particular, metered motor fuel pumps located at a
27retail motor fuel site (Code chapter 214). Three types of
28motor fuel are regulated by DALS, including gasoline and diesel
29fuel (Code section 214A.2), and kerosene (Code sections 214A.2
30and 214A.2A) as well as their respective components. A biofuel
31is a component used to formulate a motor fuel and is closely
32associated with formulations of both gasoline and diesel fuel.
33A renewable fuel is a term which refers to either a biofuel
34or a motor fuel blended with a biofuel. A biofuel includes
35ethanol which is grain alcohol (e.g., derived from corn) used
-15-1to produce ethanol blended gasoline, biobutanol which is
2isobutyl or n-butyl alcohol (derived from the same feedstocks
3as ethanol but includes corn stover) used to produce biobutanol
4blended gasoline, and biodiesel which is often a vegetable oil
5(e.g., derived from soybeans) used to produce biodiesel blended
6fuel. DALS establishes standards for these motor fuels and
7their components based on two outside sources of authority:
8(1) specifications recommended by ASTM international, a
9private globally recognized organization, and (2) requirements
10adopted by the United States environmental protection agency
11(EPA).The EPA and the United States federal trade commission
12(FTC) also regulate the labeling of motor fuel dispensers by
13requiring information about the motor fuel to be dispensed,
14such as the octane level of gasoline and the percentage content
15of any biofuel component (42 U.S.C.§7545 and 40 C.F.R.pt.
161090, 15 U.S.C.§2801 et seq., 42 U.S.C.§17021, 16 C.F.R.
17pt.306, and 40 C.F.R.§80.1501(a)). DALS’ regulation of a
18renewable fuel depends upon its classification expressed as an
19abbreviation identifying the renewable fuel according to type
20followed by a number representing the biofuel percentage by
21volume usually measured by gallon. The designation “xx” is
22used as a stand-in designation for the actual percentage of a
23biofuel percentage threshold (amended Code section 214A.2(5))
24depending upon the Code provision (e.g., the E-15 plus gasoline
25promotion tax credit in Code section 422.11Y). One special
26exception is E-85 gasoline which is based on a percentage range
27of between 70 and 85 percent by volume of ethanol.
28MOTOR FUEL REGULATION — REVISION OF TERMS. The bill revises
29certain terms, including by changing “A.S.T.M.international”
30to “ASTM international” and defining “biodiesel” by referring
31to its production method (amended Code section 214A.1).
32The bill provides for the consistent use of certain terms,
33including “specifications” which refers to recommendations
34adopted by ASTM international, “requirements” which refers to
35EPA regulations, and “standards” which refers to departmental
-16-1rules (amended Code section 214A.2). The bill also provides
2for the consistent use of the term “standard” which is
3occasionally referred to as “designation” (amended Code
4sections 214A.2A, 214A.3, 214A.5, 452A.12, and 455G.31). The
5bill provides that a label is to be placed on a “motor fuel
6dispenser” rather than a “motor fuel pump” (amended Code
7section 214A.16).
8MOTOR FUEL REGULATION — DEPARTMENTAL STANDARDS. The
9bill provides that the minimum octane rating for premium
10grade gasoline is changed from 90 to 91 (amended Code
11section 214A.2(2)). For all three types of motor fuel,
12departmental standards may be based in part or in whole on
13ASTM international specifications, and may include successor
14specifications. The bill eliminates a requirement recognizing
15that EPA must grant a seasonal waiver from its requirements
16before a retail dealer may advertise for sale or sell ethanol
17blended gasoline (amended Code section 214A.2(3)). The
18threshold for ethanol blended gasoline is increased from E-9 to
19E-10 (amended Code section 214A.2(3)) and from B-1 to B-5 for
20biodiesel blended motor fuel (amended Code section 214A.2(4)).
21MOTOR FUEL REGULATION — CLASSIFICATIONS. The bill
22adds subclassifications for biofuels including for ethanol
23classified as E-100, biobutanol classified as Bu-100, and
24biodiesel classified as B-100. The bill also recognizes E-85
25according to its revised percentage range, which is 68 to 83
26percent.
27MOTOR FUEL REGULATION — ADVERTISING. The bill revises
28a provision which prohibits a person from knowingly falsely
29advertising for sale motor fuel (amended Code section 214A.3).
30The bill replaces a provision that prohibits a person from
31falsely advertising that a motor fuel is or is not a renewable
32fuel with a provision that prohibits a person from falsely
33advertising the classification of a renewable fuel. The bill
34also eliminates a requirement that a motor fuel pump (motor
35fuel dispenser) be affixed with a label that identifies the
-17-1dispensed gasoline as ethanol blended gasoline (e.g., E-10),
2that identifies ethanol blended gasoline classified from E-11
3to E-15, or that identifies dispensed diesel fuel as biodiesel
4blended fuel. The bill retains a state requirement that a
5motor fuel dispenser identify gasoline classified as higher
6than E-15 (e.g., E-85) or any classification of biobutanol
7blended gasoline. The bill does not affect federal labeling
8requirements.
9APPLICABLE PENALTIES. A person who violates a provision
10of Code chapter 214A is guilty of a serious misdemeanor. A
11serious misdemeanor is punishable by confinement for no more
12than one year and a fine of at least $430 but not more than
13$2,560. However, the state may initiative a substitute civil
14enforcement action as an administrative action by DALS or as
15a judicial proceeding by the attorney general upon referral
16by DALS. The civil penalty must be for at least $100 but
17not more than $1,000 for each violation and each day of a
18continuing violation constitutes a separate offense (Code
19section 214A.11).
-18-da/ns
2and enforced by the department of agriculture and land
3stewardship, providing fees, providing penalties, and making
4penalties applicable.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2choose iowa promotional program
3 Section 1. Section 159.20, Code 2022, is amended by adding
4the following new subsection:
5 NEW SUBSECTION. 1A. The department shall establish and
6administer a choose Iowa promotional program as provided in
7part 2 of this subchapter, in order to provide consumers
8a choice in purchasing food items that originate as an
9agricultural commodity produced on Iowa farms.
10 Sec. 2. NEW SECTION. 159.26 Definitions.
11As used in this part:
121. “Food item” means any of the following:
13a. A perishable item derived from an agricultural commodity,
14or processed from an agricultural commodity, that is fit for
15human consumption.
16b. Honey produced from bees in a managed beehive.
172. “Iowa farm” means land in this state used to produce an
18agricultural commodity.
193. “Process” means to prepare a food item in a manner that
20allows it to be fit for human consumption.
214. “Program” means the choose Iowa promotional program
22established in section 159.29.
23 Sec. 3. NEW SECTION. 159.28 Administration.
24The department shall administer the provisions of this part,
25including by adopting rules pursuant to chapter 17A as it
26determines are necessary or desirable.
27 Sec. 4. NEW SECTION. 159.29 Choose Iowa promotional
28program.
291. The department shall establish and administer a choose
30Iowa promotional program to advertise for sale on a retail
31basis a food item that originates as an agricultural commodity
32produced on an Iowa farm, and that may include any of the
33following:
34a. An agricultural commodity, except that it may be prepared
35for sale by washing or packaging in this state.
-1- 1b. A product, if it is processed in this state and any of
2its ingredients originate as an agricultural commodity produced
3on an Iowa farm.
42. a. The department may adopt rules further defining
5an Iowa farm and describing how an agricultural commodity
6originates on an Iowa farm.
7b. The department may adopt rules providing for the
8acceptable use of ingredients originating from agricultural
9commodities not produced on Iowa farms. In adopting the
10rules, the department may consider whether the ingredient is
11an incidental additive or other component that the department
12determines is insignificant.
13 Sec. 5. NEW SECTION. 159.30 Choose Iowa logo.
141. As part of the program, the department may establish
15a choose Iowa logo to identify a food item originating as an
16agricultural commodity produced on an Iowa farm.
172. The department may register the choose Iowa logo as a
18mark with the secretary of state under chapter 548. If allowed
19under federal law, the department may also register the logo as
20a trademark with the United States patent and trademark office
21or as a copyright with the United States copyright office.
223. This section does not require the department to
23incorporate the name “choose Iowa” as part of a mark,
24trademark, or copyright, if such name is already protected by
25state or federal law.
264. If the department registers a mark with the secretary
27of state, registers a trademark with the United States patent
28and trademark office, or registers a copyright with the United
29States copyright office under this section, the state of
30Iowa shall be named as the owner of the mark, trademark, or
31copyright.
325. The use of a choose Iowa logo does not do any of the
33following:
34a. Provide an express or implied guarantee or warranty
35concerning the safety, fitness, merchantability, or use of a
-2-1food item.
2b. Supersede, revise, or replace a state or federal labeling
3requirement, including but not limited to a provision in the
4federal Fair Packaging and Labeling Act, 15 U.S.C.§1451 et
5seq.
6c. Indicate the grade, specification, standard, or value of
7any food item.
8 Sec. 6. NEW SECTION. 159.31 Choose Iowa licensing agreement
9— fees.
101. A person may apply to the department to participate in
11the choose Iowa promotional program according to procedures
12established by rules adopted by the department. The department
13shall evaluate and approve or disapprove applications based
14on criteria established by rules adopted by the department.
15The department may disapprove an application if the department
16determines the applicant’s use of the choose Iowa logo would be
17associated with the consumption of an adulterated or illegal
18food item.
192. The department may enter into a licensing agreement
20with a person participating in the program. The participating
21person may use the choose Iowa logo to advertise a food item
22originating as an agricultural commodity produced on an Iowa
23farm, subject to terms and conditions required by rules adopted
24by the department. A licensing agreement shall not be for more
25than one year.
263. The department shall establish application and license
27fees by rules adopted by the department.
28 Sec. 7. NEW SECTION. 159.31A Choose Iowa fund.
291. A choose Iowa fund is established in the state treasury
30under the management and control of the department.
312. The fund shall include moneys collected as fees by the
32department as provided in section 159.31, moneys appropriated
33by the general assembly, and other moneys available to and
34obtained or accepted by the department, including moneys from
35public or private sources.
-3- 13. Moneys in the fund are appropriated to the department
2and shall be used exclusively to carry out the provisions of
3this part as determined and directed by the department, and
4shall not require further special authorization by the general
5assembly.
64. a. Notwithstanding section 12C.7, interest or earnings
7on moneys in the fund shall be credited to the fund.
8b. Notwithstanding section 8.33, moneys in the fund that
9remain unencumbered or unobligated at the end of a fiscal year
10shall not revert.
11 Sec. 8. DIRECTIONS TO CODE EDITOR — TRANSFER.
121. The Code editor is directed to make the following
13transfer:
14Section 159.27 to section 159.25.
152. The Code editor shall correct internal references in the
16Code and in any enacted legislation as necessary due to the
17enactment of this section.
18 Sec. 9. DIRECTIONS TO CODE EDITOR — PARTS. The Code editor
19is directed to divide the provisions in chapter 159, subchapter
20II, as amended, enacted, or transferred in this division of
21this Act, into parts as follows:
221. Part 1, including sections 159.20 through 159.25.
232. Part 2, including sections 159.26 through 159.31A.
24DIVISION II
25regulation of pesticides
26 Sec. 10. Section 206.12, subsection 3, Code 2022, is amended
27to read as follows:
283. The registrant, before selling or offering for sale any
29pesticide for use in this state, shall register each brand and
30grade of such pesticide with the secretary upon forms furnished
31by the secretary, and the secretary shall set the registration
32fee annually at one-fifth of one percent of gross sales within
33this state with a minimum fee of two hundred fifty dollars and
34a maximum fee of three thousand hundred dollars for each and
35every brand and grade to be offered for sale in this state
-4-1except as otherwise provided. The annual registration fee for
2products with gross annual sales in this state of less than
3one million five hundred thousand dollars shall be the greater
4of two hundred fifty dollars or one-fifth of one percent of
5the gross annual sales as established by affidavit of the
6registrant. The secretary shall adopt by rule exemptions to
7the minimum fee. Fifty dollars of each fee collected shall be
8deposited in the general fund of the state, shall be subject
9to the requirements of section 8.60, and shall be used only
10for the purpose of enforcing the provisions of this chapter
11and the remainder of each fee collected shall be placed in the
12agriculture management account of the groundwater protection
13fund.
14 Sec. 11. Section 206.19, subsection 5, paragraph b, Code
152022, is amended to read as follows:
16b. The amount of the civil penalty that may be assessed
17for each violation committed by a commercial applicator or
18private applicator shall not exceed five hundred dollars for
19each offense.
20DIVISION III
21regulation of motor fuels
22 Sec. 12. Section 214A.1, subsections 2, 5, and 13, Code
232022, are amended to read as follows:
242. “A.S.T.M. ASTM international” means the American society
25for testing and materials international.
265. “Biodiesel” means a renewable fuel comprised of
27mono-alkyl esters of long-chain fatty acids derived from
28vegetable oils or animal fats, which is manufactured by the
29use of a transesterification reaction, and which meets the
30standards provided in section 214A.2.
3113. “E-85 gasoline” or “E-85” means ethanol blended gasoline
32formulated with a percentage of between seventy sixty-eight
33 and eighty-five eighty-three percent by volume of ethanol, if
34the formulation excludes a denaturant, and which meets the
35standards provided in section 214A.2.
-5-1 Sec. 13. NEW SECTION. 214A.1A Administration and
2enforcement.
3This chapter shall be administered and enforced by the
4department which may adopt rules under chapter 17A to carry out
5the provisions of this chapter.
6 Sec. 14. Section 214A.2, Code 2022, is amended to read as
7follows:
8214A.2 Tests and standards Standards and classifications.
91. a. The department shall adopt rules pursuant to chapter
1017A for carrying out this chapter. The rules may include but
11are not limited to specifications establishing departmental
12standards relating to motor fuel, including but not limited to
13renewable fuel such as ethanol blended gasoline, biobutanol
14blended gasoline, biodiesel, biodiesel blended fuel, fuels and
15motor fuel components such as an oxygenate.
16b. In the interest of uniformity, the department shall
17adopt by reference other in part or in whole, as some of its
18departmental standards described in paragraph “a”, applicable
19 specifications relating to tests and standards for motor fuel,
20including renewable fuel and motor fuel components, adopted by
21ASTM international and applicable requirements established by
22the United States environmental protection agency and A.S.T.M.
23international.
242. Octane number shall conform to the average of values
25obtained from the A.S.T.M. ASTM international D2699 research
26method and the A.S.T.M. ASTM international D2700 motor method.
27a. Octane number for regular grade unleaded gasoline shall
28follow the specifications of A.S.T.M. ASTM international but
29shall not be less than eighty-seven.
30b. Octane number for premium grade unleaded gasoline shall
31follow the specifications of A.S.T.M. ASTM international but
32shall not be less than ninety ninety-one.
333. a. For motor fuel advertised for sale or sold as
34gasoline by a dealer, the motor fuel must meet requirements
35for that type of motor fuel and its additives established by
-6-1the United States environmental protection agency including as
2provided under 42 U.S.C. §7545.
3b. If the motor fuel is advertised for sale or sold as
4ethanol blended gasoline, the motor fuel must comply with meet
5 departmental standards which shall meet all of the following
6requirements including as follows:
7(1) Ethanol must be an agriculturally derived ethyl alcohol
8that meets A.S.T.M. departmental standards based in part or in
9whole on ASTM international specification D4806 for denatured
10fuel ethanol for blending with gasoline for use as automotive
11spark-ignition engine fuel, or a successor A.S.T.M. ASTM
12 international specification, as established by rules adopted
13by the department rule.
14(2) Gasoline blended with ethanol must meet requirements
15established by rules adopted departmental standards based
16 in part or in whole based on A.S.T.M. ASTM international
17specification D4814, or a successor ASTM international
18specification, established by rule.
19(3) (a) For ethanol blended gasoline, at least nine ten
20 percent by volume must be fuel grade ethanol. In addition, the
21following applies:
22(a) (b) For the period beginning on September 16 and
23ending on May 31 of each year, the state grants a waiver of
24one pound per square inch from the A.S.T.M. ASTM international
25D4814 specification for Reid vapor pressure requirement, or
26a successor ASTM international specification, established by
27rule.
28(b) For the period beginning on June 1 and ending on
29September 15 of each year the United States environmental
30protection agency must grant a one pound per square inch waiver
31for ethanol blended conventional gasoline with at least nine
32but not more than ten percent by volume of ethanol pursuant to
3340 C.F.R. §80.27.
34(4) For standard ethanol blended gasoline, it must be
35ethanol blended gasoline classified as any of the following:
-7- 1(a) From E-9 E-10 up to but not higher than E-15, if the
2ethanol blended gasoline meets the departmental standards for
3that classification as otherwise provided in this paragraph
4“b”.
5(b) Higher than E-15 but not E-85 gasoline, if the
6classification is authorized by the department pursuant to
7approval for the use of that classification of ethanol blended
8gasoline in this state by the United States environmental
9protection agency, by granting a waiver or the adoption of
10regulations.
11(5) E-85 gasoline must be an agriculturally derived ethyl
12alcohol that meets A.S.T.M. departmental standards based in
13part or in whole on ASTM international specification D5798,
14described as a fuel blend for use in ground vehicles with
15automotive spark-ignition engines, or a successor A.S.T.M. ASTM
16 international specification, as established by rules adopted
17by the department rule.
18c. If the motor fuel is advertised for sale or sold as
19biobutanol blended gasoline, the motor fuel must comply
20with meet departmental standards which shall meet all of the
21following requirements as follows:
22(1) Biobutanol must be an agriculturally derived isobutyl
23or n-butyl alcohol that meets A.S.T.M. ASTMinternational
24specification D7862 for butanol for blending with gasoline for
25use as automotive spark-ignition engine fuel, or a successor
26A.S.T.M. ASTMinternational specification, as established by
27rules adopted by the department rule.
28(2) Gasoline blended with biobutanol must meet requirements
29established by rules adopted departmental standards based
30 in part or in whole based on A.S.T.M. ASTMinternational
31specification D4814, or a successor ASTM international
32specification, established by rule.
334. a. For motor fuel advertised for sale or sold as diesel
34fuel by a dealer, the motor fuel must meet requirements for
35that type of motor fuel and its additives established by the
-8-1United States environmental protection agency including as
2provided under 42 U.S.C. §7545.
3b. If the motor fuel is advertised for sale or sold as
4biodiesel or biodiesel blended fuel, the motor fuel must comply
5with meet departmental standards which shall comply with based
6in part or in whole on specifications adopted by A.S.T.M. ASTM
7 international for biodiesel or biodiesel blended fuel, to
8every extent applicable, as determined by rules adopted by the
9department. the department, subject to the following:
10(1) Biodiesel must conform to A.S.T.M. meet departmental
11standards based in whole or in part on ASTM international
12specification D6751, or a successor A.S.T.M. ASTM international
13specification, as established by rules adopted by the
14department rule. The specification shall apply to biodiesel
15before it leaves its place of manufacture.
16(2) At least one five percent of biodiesel blended fuel by
17volume must be biodiesel.
18(3) The biodiesel may be blended with diesel fuel whose
19sulfur, aromatic, lubricity, and cetane levels do not comply
20with A.S.T.M. ASTM international specification D975 grades
211-D or 2-D, low sulfur 1-D or 2-D, or ultra-low sulfur grades
221-D or 2-D, provided that the finished biodiesel blended fuel
23meets A.S.T.M. international specification D975 or a successor
24A.S.T.M. international specification as established by rules
25adopted by the department departmental standards as required in
26subparagraph (1).
27(4) Biodiesel blended fuel classified as B-6 or higher
28but not higher than B-20 must conform to A.S.T.M. meet
29departmental standards based in whole or in part on ASTM
30 international specification D7467, or a successor A.S.T.M. ASTM
31 international specification, as established by rules adopted
32by the department rule.
335. Motor fuel shall be classified as follows:
34a. (1) Ethanol shall be classified as E-100.
35(2) Ethanol blended gasoline formulated with a percentage
-9-1of between sixty-eight and eighty-three percent by volume of
2ethanol shall be classified as E-85.
3(3) Ethanol blended gasoline, other than ethanol blended
4gasoline classified as E-85, shall be designated classified as
5 E-xx where “xx” is the volume percent of ethanol in the ethanol
6blended gasoline.
7b. (1) Biobutanol shall be classified as Bu-100.
8(2) Biobutanol blended gasoline shall be designated
9 classified as Bu-xx where “xx” is the volume percent of
10biobutanol in the biobutanol blended gasoline.
11c. (1) Biodiesel shall be classified as B-100.
12(2) Biodiesel blendedfuel shall be designated classified
13as B-xx where “xx” is the volume percent of biodiesel.
146. Motor fuel shall not contain more than trace amounts of
15MTBE, as provided in section 214A.18.
16 Sec. 15. Section 214A.2A, subsection 1, Code 2022, is
17amended to read as follows:
181. Fuel which is sold or is kept, offered, or exposed for
19sale as kerosene shall be labeled as kerosene. The label shall
20include the word “kerosene” or the designation “K1 kerosene”,
21and shall indicate that the kerosene is in compliance with the
22standard specification adopted by A.S.T.M. ASTM international
23specification D3699 (1982), or a successor ASTM international
24specification, established by rules adopted by the department.
25 Sec. 16. Section 214A.2B, Code 2022, is amended to read as
26follows:
27214A.2B Laboratory for motor fuel and biofuels.
28A laboratory for motor fuel and biofuels is established at
29a community college which is engaged in biofuels testing on
30July 1, 2007, and which testing includes but is not limited to
31B-20 biodiesel fuel testing for motor trucks and the ability of
32biofuels to meet A.S.T.M. ASTM international standards. The
33laboratory shall conduct testing of motor fuel sold in this
34state and biofuel which is blended in motor fuel in this state
35to ensure that the motor fuel or biofuels meet the requirements
-10-1in section 214A.2.
2 Sec. 17. Section 214A.3, Code 2022, is amended to read as
3follows:
4214A.3 Advertising.
51. For all motor fuel, a A person shall not knowingly do any
6of the following:
7a. 1. Advertise the for sale of any motor fuel which that
8 does not meet the standards provided in section 214A.2.
9b. 2. Falsely advertise for sale the quality, type, or kind
10of any motor fuel or a component of motor fuel.
11c. 3. Add a coloring matter to the motor fuel which
12misleads a person who is purchasing the motor fuel about the
13quality of the motor fuel.
144. Falsely advertise for sale the classification of a motor
15fuel as provided in section 214A.2.
162. For a renewable fuel, all of the following apply:
17a. A person shall not knowingly falsely advertise that a
18motor fuel is a renewable fuel or is not a renewable fuel.
19b. (1) Ethanol blended gasoline sold by a dealer shall
20be designated according to its classification as provided in
21section 214A.2. However, a person advertising E-9 or E-10
22gasoline may only designate it as ethanol blended gasoline. A
23person advertising ethanol blended gasoline formulated with a
24percentage of between seventy and eighty-five percent by volume
25of ethanol shall designate it as E-85. A person shall not
26knowingly falsely advertise ethanol blended gasoline by using
27an inaccurate designation in violation of this subparagraph.
28(2) A person shall not knowingly falsely advertise
29biobutanol blended gasoline by using an inaccurate designation
30as provided in section 214A.2.
31(3) A person shall not knowingly falsely advertise
32biodiesel fuel by using an inaccurate designation as provided
33in section 214A.2.
34 Sec. 18. Section 214A.5, subsection 2, Code 2022, is amended
35to read as follows:
-11- 12. A wholesale dealer selling ethanol blended gasoline,
2biobutanol blended gasoline, or biodiesel blended fuel to
3a purchaser shall provide the purchaser with a statement
4indicating its designation classification as provided in
5section 214A.2. The statement may be on the sales slip
6provided in this section or a similar document, including but
7not limited to a bill of lading or invoice.
8 Sec. 19. Section 214A.16, Code 2022, is amended to read as
9follows:
10214A.16 Notice of renewable fuel — decal.
111. a. If ethanol blended gasoline is sold from a motor
12fuel pump, the motor fuel pump shall have affixed a decal
13identifying the ethanol blended gasoline.
14b. If the motor fuel pump dispenses ethanol blended gasoline
15classified as E-11 to E-15 for use in gasoline-powered vehicles
16not required to be flexible fuel vehicles, the motor fuel pump
17shall have affixed a decal as prescribed by the United States
18environmental protection agency.
19c. 1. a. If the motor fuel pump dispenses ethanol blended
20gasoline classified as higher than standard ethanol blended
21gasoline pursuant to section 214A.2 is advertised for sale or
22sold at a retail motor fuel site, the motor fuel dispenser
23dispensing the ethanol blended gasoline shall be affixed with a
24 decal shall contain language stating that the classification
25of the ethanol blended gasoline is for use in flexible fuel
26vehicles.
27d. b. If biobutanol blended gasoline is advertised for sale
28or sold from at a retail motor fuel site, the motor fuel pump,
29the motor fuel pump dispenser dispensing the biobutanol blended
30gasoline shall have be affixed with a decal identifying the
31classification of biobutanol blended gasoline.
32e. If biodiesel fuel is sold from a motor fuel pump, the
33motor fuel pump shall have affixed a decal identifying the
34biodiesel fuel as provided in 16 C.F.R. pt.306.
352. The design and location of the decal shall be prescribed
-12-1by rules adopted by the department. A decal identifying a
2renewable fuel shall be consistent with standards adopted
3pursuant to section 159A.6. The department may approve an
4application to place a decal in a special location on a pump
5 dispenser or container or use a decal with special lettering
6or colors, if the decal appears clear and conspicuous to the
7consumer. The application shall be made in writing pursuant to
8procedures adopted by the department.
9 Sec. 20. Section 452A.12, subsection 2, Code 2022, is
10amended to read as follows:
112. A person while transporting motor fuel or undyed special
12fuel from a refinery or marine or pipeline terminal in this
13state or from a point outside this state over the highways
14of this state in service other than that under subsection
151 shall carry in the vehicle a loading invoice showing the
16name and address of the seller or consignor, the date and
17place of loading, and the kind and quantity of motor fuel or
18special fuel loaded, together with invoices showing the kind
19and quantity of each delivery and the name and address of each
20purchaser or consignee. An invoice carried pursuant to this
21subsection for ethanol blended gasoline or biodiesel blended
22fuel shall state its designation classification as provided in
23section 214A.2.
24 Sec. 21. Section 455G.31, subsection 1, paragraph b, Code
252022, is amended to read as follows:
26b. Ethanol blended gasoline shall be designated classified
27 in the same manner as provided in section 214A.2.
28EXPLANATION
29The inclusion of this explanation does not constitute agreement with
30the explanation’s substance by the members of the general assembly.
31GENERAL. This bill provides for programs and regulations
32administered and enforced by the department of agriculture and
33land stewardship (DALS).
34CHOOSE IOWA PROMOTIONAL PROGRAM. The bill requires DALS
35to establish and administer a choose Iowa promotional program
-13-1(program) in order to provide consumers a choice in purchasing
2a food item originating as an agricultural commodity produced
3on an Iowa farm (amended Code section 159.20). This includes
4either (1) an agricultural commodity produced on an Iowa farm
5or (2) a product processed in this state, if the product is
6an agricultural commodity that has been prepared in Iowa, or
7any of the product’s ingredients are agricultural commodities
8produced on an Iowa farm (new Code section 159.29). DALS is
9provided discretion to further define what constitutes an Iowa
10farm and describe how an agricultural commodity originates on
11an Iowa farm.
12CHOOSE IOWA LOGO. As part of the program, DALS may establish
13a choose Iowa logo (logo) to identify a food item originating
14as an agricultural commodity produced on an Iowa farm. DALS
15may register the logo as a mark with the secretary of state.
16DALS may also register the logo as a trademark with the United
17States patent and trademark office or as a copyright with the
18United States copyright office. The use of the logo does not
19create an express or implied warranty; involve state or federal
20labeling requirements; or indicate the grade, specification,
21standard, or value of a food item (new Code section 159.30).
22CHOOSE IOWA PROMOTIONAL PROGRAM — LICENSING AGREEMENTS AND
23FEES. DALS may enter into a licensing agreement (agreement)
24with a person who applies to use the logo. An agreement cannot
25be for more than five years. DALS must evaluate and approve or
26disapprove applications based on criteria established by rule.
27DALS may also establish application and license fees by rule.
28CHOOSE IOWA FUND. A choose Iowa fund (fund) is established
29in the state treasury under DALS’ management and control. The
30fund includes moneys that DALS collects in fees or otherwise
31receives, including by appropriation or gift. DALS must use
32the moneys exclusively to carry out the provisions of the bill.
33PESTICIDE REGULATION. The bill amends Code chapter 206,
34“the Pesticide Act of Iowa” (Code section 206.1) which in part
35regulates commercial and private applicators. Before selling
-14-1or offering for sale any pesticide for use in this state, a
2person must register each brand and grade of that pesticide
3with DALS. Registration fees are based on a percentage
4of gross sales of that brand or grade in this state with a
5minimum fee of $250 and a maximum fee of $3,000 (Code section
6206.12(3)). The bill replaces that method of calculating the
7registration fee with a flat fee of $300. Generally, a person
8in business as a commercial applicator (applying pesticides to
9another person’s land) must be certified and licensed (Code
10sections 206.5 and 206.6). A private applicator (e.g., a
11farmer) applying a restricted use pesticide must be certified
12(Code section 206.5). During the last regular session, the
13general assembly enacted SF 482 (2021 Acts, chapter 28) which
14in part provides that a private applicator is subject to the
15same civil penalty as a commercial applicator for violating a
16provision of the Code chapter (amended Code section 206.19).
17The Act provided that the amount for each violation committed
18by a commercial applicator or private applicator cannot exceed
19$500 for each violation. The bill amends the provision by
20changing the term from “violation” back to “offense”.
21MOTOR FUEL REGULATION — BACKGROUND. DALS regulates persons
22advertising for sale or selling motor fuel on a wholesale
23or retail basis (Code chapter 214A) as well as motor fuel
24infrastructure used to store and dispense motor fuel at a
25retail motor fuel site owned or operated by a retail dealer
26and, in particular, metered motor fuel pumps located at a
27retail motor fuel site (Code chapter 214). Three types of
28motor fuel are regulated by DALS, including gasoline and diesel
29fuel (Code section 214A.2), and kerosene (Code sections 214A.2
30and 214A.2A) as well as their respective components. A biofuel
31is a component used to formulate a motor fuel and is closely
32associated with formulations of both gasoline and diesel fuel.
33A renewable fuel is a term which refers to either a biofuel
34or a motor fuel blended with a biofuel. A biofuel includes
35ethanol which is grain alcohol (e.g., derived from corn) used
-15-1to produce ethanol blended gasoline, biobutanol which is
2isobutyl or n-butyl alcohol (derived from the same feedstocks
3as ethanol but includes corn stover) used to produce biobutanol
4blended gasoline, and biodiesel which is often a vegetable oil
5(e.g., derived from soybeans) used to produce biodiesel blended
6fuel. DALS establishes standards for these motor fuels and
7their components based on two outside sources of authority:
8(1) specifications recommended by ASTM international, a
9private globally recognized organization, and (2) requirements
10adopted by the United States environmental protection agency
11(EPA).The EPA and the United States federal trade commission
12(FTC) also regulate the labeling of motor fuel dispensers by
13requiring information about the motor fuel to be dispensed,
14such as the octane level of gasoline and the percentage content
15of any biofuel component (42 U.S.C.§7545 and 40 C.F.R.pt.
161090, 15 U.S.C.§2801 et seq., 42 U.S.C.§17021, 16 C.F.R.
17pt.306, and 40 C.F.R.§80.1501(a)). DALS’ regulation of a
18renewable fuel depends upon its classification expressed as an
19abbreviation identifying the renewable fuel according to type
20followed by a number representing the biofuel percentage by
21volume usually measured by gallon. The designation “xx” is
22used as a stand-in designation for the actual percentage of a
23biofuel percentage threshold (amended Code section 214A.2(5))
24depending upon the Code provision (e.g., the E-15 plus gasoline
25promotion tax credit in Code section 422.11Y). One special
26exception is E-85 gasoline which is based on a percentage range
27of between 70 and 85 percent by volume of ethanol.
28MOTOR FUEL REGULATION — REVISION OF TERMS. The bill revises
29certain terms, including by changing “A.S.T.M.international”
30to “ASTM international” and defining “biodiesel” by referring
31to its production method (amended Code section 214A.1).
32The bill provides for the consistent use of certain terms,
33including “specifications” which refers to recommendations
34adopted by ASTM international, “requirements” which refers to
35EPA regulations, and “standards” which refers to departmental
-16-1rules (amended Code section 214A.2). The bill also provides
2for the consistent use of the term “standard” which is
3occasionally referred to as “designation” (amended Code
4sections 214A.2A, 214A.3, 214A.5, 452A.12, and 455G.31). The
5bill provides that a label is to be placed on a “motor fuel
6dispenser” rather than a “motor fuel pump” (amended Code
7section 214A.16).
8MOTOR FUEL REGULATION — DEPARTMENTAL STANDARDS. The
9bill provides that the minimum octane rating for premium
10grade gasoline is changed from 90 to 91 (amended Code
11section 214A.2(2)). For all three types of motor fuel,
12departmental standards may be based in part or in whole on
13ASTM international specifications, and may include successor
14specifications. The bill eliminates a requirement recognizing
15that EPA must grant a seasonal waiver from its requirements
16before a retail dealer may advertise for sale or sell ethanol
17blended gasoline (amended Code section 214A.2(3)). The
18threshold for ethanol blended gasoline is increased from E-9 to
19E-10 (amended Code section 214A.2(3)) and from B-1 to B-5 for
20biodiesel blended motor fuel (amended Code section 214A.2(4)).
21MOTOR FUEL REGULATION — CLASSIFICATIONS. The bill
22adds subclassifications for biofuels including for ethanol
23classified as E-100, biobutanol classified as Bu-100, and
24biodiesel classified as B-100. The bill also recognizes E-85
25according to its revised percentage range, which is 68 to 83
26percent.
27MOTOR FUEL REGULATION — ADVERTISING. The bill revises
28a provision which prohibits a person from knowingly falsely
29advertising for sale motor fuel (amended Code section 214A.3).
30The bill replaces a provision that prohibits a person from
31falsely advertising that a motor fuel is or is not a renewable
32fuel with a provision that prohibits a person from falsely
33advertising the classification of a renewable fuel. The bill
34also eliminates a requirement that a motor fuel pump (motor
35fuel dispenser) be affixed with a label that identifies the
-17-1dispensed gasoline as ethanol blended gasoline (e.g., E-10),
2that identifies ethanol blended gasoline classified from E-11
3to E-15, or that identifies dispensed diesel fuel as biodiesel
4blended fuel. The bill retains a state requirement that a
5motor fuel dispenser identify gasoline classified as higher
6than E-15 (e.g., E-85) or any classification of biobutanol
7blended gasoline. The bill does not affect federal labeling
8requirements.
9APPLICABLE PENALTIES. A person who violates a provision
10of Code chapter 214A is guilty of a serious misdemeanor. A
11serious misdemeanor is punishable by confinement for no more
12than one year and a fine of at least $430 but not more than
13$2,560. However, the state may initiative a substitute civil
14enforcement action as an administrative action by DALS or as
15a judicial proceeding by the attorney general upon referral
16by DALS. The civil penalty must be for at least $100 but
17not more than $1,000 for each violation and each day of a
18continuing violation constitutes a separate offense (Code
19section 214A.11).
-18-da/ns