Bill Summary – FastDemocracy

Senate Study Bill 1179 - Introduced
                                  SENATE/HOUSE FILE _____
                                  BY (PROPOSED GOVERNOR BILL)
                            A BILL FOR
An Act relating to renewable fuel used to power motor vehicles,
  including by providing for standards and restrictions,
  infrastructure, tax credits, and requirements for state
  agencies operating motor vehicles powered by renewable fuel,
  making appropriations, providing penalties, making penalties
  applicable, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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                             DIVISION I
                             MOTOR FUEL
                               PART A
                             STANDARDS
    Section 1. Section 214A.1, Code 2021, is amended by adding
 the following new subsections:
    NEW SUBSECTION. 11A. “Dispensing unit” means the equipment
 connected to a motor fuel pump located at a retail motor fuel
 site, if the equipment includes a nozzle to control the flow of
 motor fuel discharged from the motor fuel storage tank to an
 end point including the fuel supply tank of a motor vehicle.
    NEW SUBSECTION. 19A. “Motor fuel storage and dispensing
 infrastructure” or “infrastructure” means a motor fuel storage
 tank, motor fuel pump, and a dispensing unit necessary to keep
 and dispense motor fuel at a retail motor fuel site, including
 but not limited to all associated equipment, dispensing units,
 dispensers, pumps, pipes, hoses, tubes, lines, fittings,
 valves, filters, seals, and covers.
    NEW SUBSECTION. 26A. “Restricted use diesel fuel” means
 diesel fuel that meets the standards of section 214A.2 and is
 subject to restrictions based on classifications provided in
 section 214A.32.
    NEW SUBSECTION. 26B. “Restricted use gasoline” means
 gasoline that meets the standards of section 214A.2 and is
 subject to restrictions based on classifications provided in
 section 214A.31.
    NEW SUBSECTION. 30A. “Standard diesel fuel” means biodiesel
 blended fuel that meets the standards of section 214A.2 and is
 classified as provided in section 214A.32.
    NEW SUBSECTION. 30B. “Standard gasoline” means ethanol
 blended gasoline that meets the standards of section 214A.2 and
 is classified as provided in section 214A.31.
    Sec. 2. Section 214A.1, subsection 16, Code 2021, is amended
 to read as follows:
    16. “Gasoline” means any liquid product prepared,
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 advertised, offered for sale, or sold for use as, or
 commonly and commercially used as, motor fuel for use in a
 spark-ignition, internal combustion engine, and which if it
 meets the specifications standards provided in section 214A.2.
    Sec. 3. Section 214A.1, subsection 30, Code 2021, is amended
 by striking the subsection.
    Sec. 4. NEW SECTION. 214A.1A Disciplinary action.
    The department may refuse to issue or renew and may suspend
 or revoke a license issued to a retail dealer pursuant to
 section 214.2 for any violation of this chapter, including
 rules adopted by the department pursuant to section 214A.2.
    Sec. 5. Section 214A.2, subsection 3, paragraph b, Code
 2021, is amended by striking the paragraph and inserting in
 lieu thereof the following:
    b. If the motor fuel is advertised for sale or sold as
 ethanol or ethanol blended gasoline, the motor fuel must
 comply with departmental standards which shall meet all of the
 following requirements:
    (1) (a) Ethanol must be a fuel grade agriculturally
 derived ethyl alcohol and must meet the requirements
 of 27 C.F.R. pts. 20 and 21 and A.S.T.M. international
 specification D4806 for blending with gasoline for use as
 automotive spark-ignition engine fuel, or a successor A.S.T.M.
 international specification, as established by rules adopted
 by the department.
    (b) Ethanol shall be classified as E-100.
    (c) Gasoline containing no ethanol or trace amounts of
 ethanol shall be classified as E-0.
    (2) Gasoline blended with ethanol must meet requirements
 based in part or in whole on A.S.T.M. international
 specification D4814, or a successor A.S.T.M. international
 specification, as established by rules adopted by the
 department.
    (3) Except as otherwise provided in this subparagraph,
 ethanol blended gasoline shall be classified as E-xx where
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 “xx” is the volume percent of ethanol in the ethanol blended
 gasoline. However, all of the following shall apply:
    (a) Ethanol blended gasoline with a percentage of at least
 nine but not more than ten percent by volume of ethanol shall
 be classified as E-10.
    (b) Ethanol blended gasoline with a percentage of fifteen
 percent by volume of ethanol shall be classified as E-15.
    (c) Ethanol blended gasoline with a percentage of at least
 seventy but not more than eighty-five percent by volume of
 ethanol shall be classified as E-85. E-85 gasoline must meet
 A.S.T.M. international specification D5798, or a successor
 A.S.T.M. international specification, as established by rules
 adopted by the department.
    (4) In ensuring that ethanol blended gasoline meets the
 classification requirements of this section, the department
 shall take into account reasonable variations due to testing
 and other limitations.
    (5) Ethanol blended gasoline classified as higher than
 E-20, other than E-85, must conform to A.S.T.M. international
 specifications adopted by the department.
    Sec. 6. Section 214A.2, subsection 3, paragraph c, Code
 2021, is amended by adding the following new subparagraph:
    NEW SUBPARAGRAPH. (3) (a) Biobutanol blended gasoline
 shall be classified as Bu-xx where “xx” is the volume percent
 of biobutanol in the biobutanol blended gasoline.
    (b) In ensuring that biobutanol blended gasoline meets the
 classification requirements of this section, the department
 shall take into account reasonable variations due to testing
 and other limitations.
    Sec. 7. Section 214A.2, subsection 4, paragraph b,
 subparagraph (1), Code 2021, is amended by adding the following
 new subparagraph divisions:
    NEW SUBPARAGRAPH DIVISION. (a) Biodiesel shall be
 classified as B-100.
    NEW SUBPARAGRAPH DIVISION. (b) Diesel fuel containing no
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 biodiesel or trace amounts of biodiesel shall be classified as
 B-0.
    Sec. 8. Section 214A.2, subsection 4, paragraph b, Code
 2021, is amended by adding the following new subparagraph:
    NEW SUBPARAGRAPH. (04) (a) Biodiesel blended fuel shall be
 classified B-xx where “xx” is the volume percent of biodiesel
 in the biodiesel blended fuel.
    (b) In ensuring that biodiesel blended fuel meets the
 classification requirements of this section, the department
 shall take into account reasonable variations due to testing
 and other limitations.
    Sec. 9. Section 214A.2, subsection 4, paragraph b,
 subparagraph (4), Code 2021, is amended to read as follows:
    (4) Biodiesel blended fuel classified as B-6 or higher
 but not higher than up to and including B-20 must conform to
 A.S.T.M. international specification D7467, or a successor
 A.S.T.M. international specification, as established by rules
 adopted by the department.
    Sec. 10. Section 214A.2, subsection 4, paragraph b, Code
 2021, is amended by adding the following new subparagraph:
    NEW SUBPARAGRAPH. (5) Biodiesel blended fuel classified
 as higher than B-20 must conform to A.S.T.M. international
 specifications adopted by the department.
    Sec. 11. Section 214A.2, subsection 5, Code 2021, is amended
 by striking the subsection.
    Sec. 12. Section 214A.3, subsection 2, Code 2021, is amended
 to read as follows:
    2. For a renewable fuel, all of the following apply:
    a. A person shall not knowingly falsely advertise that a
 motor fuel for sale is a renewable fuel or is not a renewable
 fuel.
    b. (1) Ethanol blended A person shall not knowingly
 falsely advertise that gasoline sold by a dealer shall be
 designated according to its classification as provided in
 section 214A.2 for sale is or is not restricted use gasoline.
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 However, a person advertising E-9 or E-10 gasoline may only
 designate it as ethanol blended gasoline. A person advertising
 ethanol blended gasoline formulated with a percentage of
 between seventy and eighty-five percent by volume of ethanol
 shall designate it as E-85. A person shall not knowingly
 falsely advertise ethanol blended gasoline for sale by using
 an inaccurate designation in violation of this subparagraph
 classification as provided in section 214A.2.
    (2) A person shall not knowingly falsely advertise
 biobutanol blended gasoline for sale by using an inaccurate
 designation classification as provided in section 214A.2.
    (3) A person shall not knowingly falsely advertise
 biodiesel that diesel fuel for sale is or is not restricted use
 diesel fuel. A person shall not knowingly falsely advertise
 restricted use biodiesel fuel for sale by using an inaccurate
 designation classification as provided in section 214A.2.
    Sec. 13. Section 214A.16, subsection 1, Code 2021, is
 amended to read as follows:
    1. a. If ethanol blended a retail dealer advertises for
 sale or sells restricted use gasoline is sold from a motor fuel
 pump dispensing unit, the motor fuel pump dispensing unit shall
 have affixed a decal identifying the ethanol blended gasoline
 is restricted use gasoline.
    b. If the motor fuel pump dispenses a retail dealer
 advertises for sale or sells ethanol blended gasoline
 classified as E-11 to E-15 for use in gasoline-powered vehicles
 not required to be flexible fuel vehicles from a dispensing
 unit, the motor fuel pump dispensing unit shall have affixed
 a decal as prescribed by the United States environmental
 protection agency, including as provided in 40 C.F.R. pt. 80.
    c. If the motor fuel pump dispenses a retail dealer
 advertises for sale or sells ethanol blended gasoline
 classified as higher than standard ethanol blended gasoline
 pursuant to section 214A.2 E-85 from a dispensing unit, the
 dispensing unit shall have affixed a decal shall contain
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 language that identifies the ethanol blended gasoline is for
 use in flexible fuel vehicles as prescribed by the United
 States environmental protection agency.
    d. If a retail dealer advertises for sale or sells
 biobutanol blended gasoline is sold from a motor fuel pump
 dispensing unit, the motor fuel pump dispensing unit shall have
 affixed a decal identifying the biobutanol blended gasoline.
    e. If a retail dealer advertises for sale or sells biodiesel
 blended fuel is sold from a motor fuel pump dispensing unit,
 the motor fuel pump dispensing unit shall have affixed a decal
 identifying the biodiesel blended fuel as provided in 16 C.F.R.
 pt. 306.
    f. If a retail dealer advertises for sale or sells
 restricted use diesel fuel from a dispensing unit, the
 dispensing unit shall have affixed a decal identifying the
 diesel fuel as restricted use diesel fuel.
    Sec. 14. NEW SECTION. 214A.31 Renewable fuel requirements
 —— standard gasoline and restricted use gasoline.
    1. a. A retail dealer may advertise for sale or sell
 standard gasoline classified as E-10 or higher as provided in
 section 214A.2 from any number of dispensing units located at a
 retail motor fuel site.
    b. Except as provided in subsection 3, a retail dealer
 shall not advertise for sale or sell restricted use gasoline
 classified as E-0 from more than one dispensing unit located at
 a retail motor fuel site.
    c. This subsection is repealed January 1, 2025.
    2. a. A retail dealer may advertise for sale or sell
 standard gasoline classified as E-15 or higher as provided in
 section 214A.2 from any number of dispensing units located at a
 retail motor fuel site.
    b. On and after January 1, 2025, except as provided in
 subsection 3, a retail dealer shall not advertise for sale
 or sell restricted use gasoline classified as E-0 or ethanol
 blended gasoline classified as E-10 and up to but not including
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 E-15 from more than one dispensing unit located at a retail
 motor fuel site.
    3. A retail dealer may advertise for sale or sell restricted
 use gasoline from one or more dispensing units located at
 a restricted retail motor fuel site. For purposes of this
 section, a restricted retail motor fuel site is limited to any
 of the following:
    a. An airport as defined in section 328.1.
    b. A facility primarily used to support motor vehicles that
 are not registered for highway use, including but not limited
 to a location dedicated to motor vehicle racing.
    c. A marina that provides a secured mooring or dry dock
 storage for watercraft as defined in section 462A.2.
    d. A location that is primarily used to store or sell any
 of the following:
    (1) Motor vehicles manufactured before 1985.
    (2) All-terrain vehicles or motorcycles, as those terms are
 defined in section 321.1, or snowmobiles as defined in section
 321G.1.
    Sec. 15. NEW SECTION. 214A.32 Renewable fuel requirements
 —— standard diesel fuel and restricted use diesel fuel.
    1. a. A retail dealer may advertise for sale or sell
 standard diesel fuel classified as B-20 or higher from any
 number of dispensing units located at a retail motor fuel site.
    b. Except as otherwise provided in this section, a retail
 dealer shall not advertise for sale or sell restricted use
 diesel fuel which is diesel fuel classified as B-0 or biodiesel
 blended fuel classified as B-1 and up to but not including
 B-20, from more than one dispensing unit located at a retail
 motor fuel site.
    2. a. A retail dealer may advertise for sale or sell
 restricted use diesel fuel which is biodiesel blended fuel
 classified as B-5 or higher from more than one dispensing unit
 located at a retail motor fuel site for each annual period
 beginning October 1 and ending April 14.
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    b. (1) A retail dealer may advertise for sale or sell
 restricted use diesel fuel which is biodiesel blended fuel
 classified as B-11 or higher from more than one dispensing unit
 located at a retail motor fuel site during any of the following
 periods:
    (a) From the effective date of this division of this Act
 until September 30, 2021.
    (b) From April 15, 2022, until September 30, 2022.
    (c) From April 15, 2023, until September 30, 2023.
    (2) This paragraph “b” is repealed October 1, 2023.
    3. A retail dealer may advertise for sale or sell restricted
 use diesel fuel from one or more dispensing units located at
 a restricted retail motor fuel site. For purposes of this
 section, a restricted retail motor fuel site is limited to any
 of the following:
    a. An airport as defined in section 328.1.
    b. An electric generating plant regulated by the United
 States nuclear regulatory commission.
    c. A facility storing and serving railroad locomotives.
    Sec. 16. NEW SECTION. 214A.33 Renewable fuel —— restricted
 use gasoline or restricted use diesel fuel waiver.
    1. The governor may issue or renew an executive order or the
 secretary of agriculture may issue or renew an administrative
 order temporarily waiving a requirement that a retail dealer
 comply with section 214A.31 or 214A.32.
    2. The order shall allow the retail dealer to advertise
 for sale and sell restricted use gasoline or restricted use
 diesel fuel from any number of dispensing units at the retail
 dealer’s retail motor fuel site. However, the retail dealer
 shall not advertise for sale or sell restricted use gasoline or
 restricted use die