House File 2128 - Enrolled House File 2128 AN ACT RELATING TO RENEWABLE FUELS, INCLUDING ETHANOL BLENDED GASOLINE AND BIODIESEL BLENDED FUEL USED TO POWER INTERNAL COMBUSTION ENGINES, BY PROVIDING FOR COMPLIANCE REQUIREMENTS AND PROMOTIONAL INITIATIVES THAT RELATE TO ESTABLISHING CLASSIFICATIONS AND STANDARDS FOR RENEWABLE FUELS, ADVERTISING AND SELLING RENEWABLE FUELS, STORING AND DISPENSING RENEWABLE FUELS, USING STATE MOTOR VEHICLES POWERED BY RENEWABLE FUELS, AND TAXES, TAX CREDITS, AND TAX REFUNDS RELATING TO RENEWABLE FUELS; PROVIDING PENALTIES AND MAKING PENALTIES APPLICABLE; AND INCLUDING EFFECTIVE DATE AND RETROACTIVE APPLICABILITY PROVISIONS. BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: DIVISION I COMPLIANCE REQUIREMENTS —— STANDARDS AND CLASSIFICATIONS FOR GASOLINE —— MOTOR FUEL STORAGE AND DISPENSING INFRASTRUCTURE PART A E-15 ACCESS STANDARD Section 1. NEW SECTION . 214A.31 E-15 access standard —— establishment. In order to ensure consumer access to gasoline containing fifteen percent ethanol by volume, an E-15 access standard is

House File 2128, p. 2 established in accordance with 2013 Iowa Acts, ch. 127, §1, section 159A.1, and this subchapter. Sec. 2. NEW SECTION . 214A.32 E-15 access standard —— retail dealer compliance. 1. Except as provided in sections 214A.33 through 214A.36, a retail dealer owning or operating a retail motor fuel site shall comply with the E-15 access standard as provided in this section. 2. In order to comply with the E-15 access standard, a retail dealer must advertise for sale and sell E-15 gasoline from a minimum number of qualifying gasoline dispensers located at the retail dealer’s retail motor fuel site. A qualifying gasoline dispenser must be capable of dispensing gasoline at all times that it is in operation. a. Except as provided in paragraph “b” , a retail dealer shall comply with a general E-15 access standard by dispensing E-15 gasoline from the following: (1) One qualified gasoline dispenser, if there is only one qualified gasoline dispenser. (2) At least fifty percent of all qualified gasoline dispensers, if there are more than one qualified gasoline dispenser. b. (1) A retail dealer complies with an alternative E-15 access standard if all of the following apply: (a) On and after January 1, 2023, the retail dealer does not install, replace, or convert a gasoline storage tank. (b) On and after January 1, 2026, the retail dealer advertises for sale and sells E-15 gasoline from at least one qualifying gasoline dispenser. (2) A retail dealer who no longer complies with the alternative E-15 access standard as provided in subparagraph (1) shall immediately comply with the general E-15 access standard as provided in paragraph “a” . c. The E-15 access standard does not prohibit a retail dealer owning or operating a retail motor fuel site from advertising for sale and selling motor fuel from any number of nonqualifying motor fuel dispensers. A nonqualifying motor

House File 2128, p. 3 fuel dispenser is limited to any of the following: (1) A dispenser that exclusively dispenses any of the following: (a) Aviation fuel. (b) Diesel fuel. (c) Kerosene. (2) A dispenser that is part of a tank vehicle as defined in section 321.1 that is not used to dispense gasoline on the premises of the retail motor fuel site. (3) A dispenser that is part of a commercial marina. 3. a. A retail dealer is not in violation of this section during any period of noncompliance with the E-15 access standard caused by an excusable event. An excusable event is limited to any of the following: (1) The maintenance, repair, or reconditioning of gasoline storage and dispensing infrastructure. (2) The installation, expansion, replacement, or conversion of gasoline storage and dispensing infrastructure. b. The department may require that a retail dealer notify the department that an excusable event as described in paragraph “a” is planned to occur, is occurring, or has occurred. The department may inspect the applicable retail motor fuel site to determine whether the noncompliance is caused by an excusable event. 4. a. This section shall be implemented on January 1, 2023. b. This subsection is repealed January 2, 2023. Sec. 3. NEW SECTION . 214A.33 Suspension of E-15 access standard by order issued by governor. 1. The governor may issue or renew an executive order that temporarily suspends the requirement in section 214A.32 that a retail dealer comply with the E-15 access standard at a retail motor fuel site owned or operated by the retail dealer. 2. The E-15 access standard suspension order as described in subsection 1 must be supported by the governor’s determination that any of the following apply: a. There is an inadequate supply of E-15 gasoline. b. The market price of E-15 gasoline may cause consumers to

House File 2128, p. 4 suffer economic hardship. c. Existing gasoline storage and dispensing infrastructure is not capable of storing and dispensing E-15 gasoline. 3. The governor may issue or renew an executive order under this section on a statewide or regional basis. 4. The E-15 access standard suspension order shall take effect on its date of publication in the Iowa administrative bulletin, unless the order specifies a later date. The order shall expire one year from its effective date unless a shorter period is stated in the order. The early expiration of the order may also occur based on circumstances described in the order. 5. a. This section shall be implemented on January 1, 2023. b. This subsection is repealed January 2, 2023. Sec. 4. NEW SECTION . 214A.34 Waiver of E-15 access standard by order issued by secretary of agriculture —— E-15 unavailability. 1. The secretary of agriculture may issue an administrative order that temporarily waives the requirement in section 214A.32 that a retail dealer comply with the E-15 access standard at a retail motor fuel site owned or operated by the retail dealer based on E-15 gasoline availability. 2. A retail dealer may apply for an E-15 unavailability waiver order as described in subsection 1 by submitting an application to the department in a manner and according to procedures required by the department. a. The application must be supported by credible evidence that the retail dealer has not been able to reasonably obtain E-15 gasoline to be advertised for sale and sold at the retail dealer’s retail motor fuel site. b. The retail dealer must sign the application which shall include a statement that the retail dealer swears and affirms that all information in the application completed by the retail dealer is true and correct. 3. The department shall publish a copy of the E-15 unavailability waiver order on the department’s internet site within ten days after the order’s issuance.

House File 2128, p. 5 4. The E-15 unavailability waiver order shall take effect on its date of publication on the department’s internet site, unless the order specifies a later date. The order shall expire six months from its effective date unless a shorter period is stated in the order. The early expiration of the order may also occur based on circumstances described in the order. 5. a. This section shall be implemented on January 1, 2023. b. This subsection is repealed January 2, 2023. Sec. 5. NEW SECTION . 214A.35 Waiver of alternative E-15 access standard by order issued by secretary of agriculture —— E-15 incompatible infrastructure. 1. The secretary of agriculture shall issue an administrative order that temporarily waives the requirement in section 214A.32 that a retail dealer comply with the alternative E-15 access standard at a retail motor fuel site owned or operated by the retail dealer, if the retail motor fuel site qualifies under this section based on the incompatibility of the motor fuel storage and dispensing infrastructure to store and dispense E-15 gasoline. 2. A retail dealer may apply for an E-15 incompatible infrastructure waiver order as described in subsection 1 by submitting an application to the department in a manner and according to procedures required by the department. a. The application must be supported by credible evidence that the retail dealer is unable to comply with the alternative E-15 access standard because the gasoline storage and dispensing infrastructure located at the retail motor fuel site is not compatible with the use of E-15 gasoline and that the retail dealer is eligible for a class 1 or class 2 waiver as provided in this section. b. The application must provide information required to be completed by the retail dealer, which must include an inventory and description of gasoline storage and dispensing infrastructure located at the retail motor fuel site. c. The department may require a retail dealer to attach any supporting documentation to the application, which may include an inspection report completed by a person certified by the department as a professional retail motor fuel site installer.

House File 2128, p. 6 The certified professional retail motor fuel site installer may be a licensed engineer or other person who the department determines is qualified by education, testing, or experience to oversee a project involving the installation, replacement, or conversion of gasoline storage and dispensing infrastructure, and who is able to provide a reliable estimate of the project’s costs. d. The department shall review and evaluate an application to determine whether it is supported by credible evidence sufficient for the secretary to issue an order granting a waiver under this section. The department shall approve or disapprove a completed application within one hundred twenty days following the date that the application was delivered to the department for filing. e. The retail dealer must sign the application which shall include a statement that the retail dealer swears and affirms that all information in the application completed by the retail dealer is true and correct. If a certified professional retail motor fuel site installer completes an inspection report to support an application, the installer shall sign a statement that the installer swears and affirms that all information in the inspection report completed by the installer is true and correct. f. The department may inspect the premises of a retail motor fuel site during normal business hours to administer and enforce the provisions of this section. g. The department of agriculture and land stewardship may cooperate with the department of natural resources and the state fire marshal in administering and enforcing the provisions of this section. 3. The department shall publish a copy of the E-15 incompatible infrastructure waiver order on the department’s internet site within ten days after the order’s issuance. The order shall take effect on its date of publication, unless the order specifies a later date. 4. a. The secretary of agriculture shall terminate the E-15 incompatible infrastructure waiver order if a terminable event has occurred. A terminable event occurs on the date that any of the following apply:

House File 2128, p. 7 (1) The failure of a retail dealer to be licensed as required under section 214.2 to use a commercial weighing and measuring device when dispensing gasoline. (2) The cessation of the retail dealer’s business of advertising for sale or selling gasoline at the retail motor fuel site. (3) The installation, replacement, or conversion of a motor fuel storage tank located at the retail motor fuel site. b. The department may require that a retail dealer notify the department that a terminable event as described in paragraph “a” is planned to occur, is occurring, or has occurred. 5. a. The secretary of agriculture shall issue an E-15 incompatible infrastructure class 1 waiver order as provided in this subsection. If the department determines an inspection of the retail motor fuel site is necessary, it may either conduct the inspection or accept an inspection report completed by a certified professional retail motor fuel site installer. b. The order must be supported by credible evidence that all gasoline storage tanks that are located at the retail motor fuel site fall within any number of the following categories: (1) Each gasoline storage tank not constructed of fiberglass was installed during or prior to 1985. (2) Each gasoline storage tank constructed of fiberglass was installed during or prior to the following years: (a) For a double-wall fiberglass underground gasoline storage tank, 1991. (b) For a single-wall fiberglass underground gasoline storage tank, 1996. 6. The secretary of agriculture shall issue an E-15 incompatible infrastructure class 2 waiver order as provided in this subsection. The order shall be based on an inspection of the retail motor fuel site. The department shall file and analyze a completed inspection report submitted by a certified professional retail motor fuel site installer. a. The inspection report must be supported by credible evidence and include all of the following: (1) A completed checklist of items adopted as part of a form

House File 2128, p. 8 used by the department to confirm that the gasoline storage and dispensing infrastructure located at the retail motor fuel site is not compatible with E-15 gasoline. (2) The total estimated cost of improving the retail motor fuel site to comply with the alternative E-15 access standard by installing, replacing, or converting the gasoline storage and dispensing infrastructure located at the retail motor fuel site. b. (1) The department shall determine whether to issue an E-15 incompatible infrastructure class 2 waiver order based on an eligibility assessment which shall calculate all of the following: (a) The total estimated cost of improvement which equals the sum of all of the following: (i) The reasonable cost of assessing the retail motor fuel site to determine the estimated cost of improving the retail motor fuel site as described in subparagraph subdivision (ii). (ii) The estimated cost of improving the retail motor fuel site to comply with the alternative E-15 access standard based on the department’s analysis of the inspection report described in paragraph “a” . The estimated cost of improving the retail motor fuel site shall only include costs used to calculate the amount of standard financial incentives that could be awarded by the renewable fuel infrastructure board to a retail dealer participating in the renewable fuel infrastructure program for retail motor fuel sites as provided in section 159A.14. (b) The E-15 infrastructure base amount which equals the maximum cost necessary to be incurred by the retail dealer in order to receive the total amount of standard financial incentives that could be awarded to the retail dealer under tier III of the renewable fuel infrastructure program for retail motor fuel sites as provided in section 159A.14 in order to comply with the alternative E-15 access standard. The department’s calculation shall not include any of the following: (i) The amount of any prior financial incentives awarded to the retail dealer under the renewable fuel infrastructure program for retail motor fuel sites.

House File 2128, p. 9 (ii) Whether the retail dealer may apply for, is applying for, or may be awarded any future financial incentives under the renewable fuel infrastructure program for retail motor fuel sites. (2) A retail dealer is only eligible to be issued an E-15 incompatible infrastructure class 2 waiver order if the department determines that the total estimated cost of improvement as described in subparagraph (1), subparagraph division (a), exceeds the E-15 infrastructure base amount as described in subparagraph (1), subparagraph division (b). 7. a. This section shall be implemented on January 1, 2023. b. This subsection is repealed January 2, 2023. 8. This section is repealed January 1, 2041. Sec. 6. NEW SECTION . 214A.36 Exemption from E-15 access standard for small retail motor fuel sites —— by order issued by secretary of agriculture. 1. a. The secretary of agriculture shall issue a small retail motor fuel site exemption administrative order to a retail dealer. The administrative order shall exempt the retail dealer from complying with the E-15 access standard, as otherwise required in section 214A.32, at a small retail motor fuel site owned or operated by the retail dealer. b. To qualify as a small retail motor fuel site under this section, all of the following must apply: (1) Prior to January 1, 2023, the retail motor fuel site included gasoline storage and dispensing infrastructure. (2) The retail motor fuel site’s average total gasoline gallonage was limited to three hundred thousand gallons or less for the qualifying phase as provided in this section. 2. a. A retail dealer may apply for an administrative order as described in subsection 1 by submitting an application to the department in a manner and according to procedures required by the department. b. The retail dealer must sign the application which shall include a statement that the retail dealer swears and affirms that all information in the application completed by the retail dealer is true and correct. 3. a. Upon request by the department of agriculture and land stewardship, the department of revenue shall certify the

House File 2128, p. 10 average total gasoline gallonage for the retail motor fuel site computed for the qualifying phase beginning on January 1, 2020, and ending on December 31, 2022. b. The computation described in paragraph “a” shall be based on site-by-site information for the retail motor fuel site in reports required to be filed for determination periods by the retail dealer with the department of revenue pursuant to chapter 452A, subchapter II. However, if the department of revenue cannot obtain site-by-site information for the retail motor fuel site from such reports, the department of revenue may use other methods, including records maintained by the department of revenue under chapter 422, to compute the retail motor fuel site’s gallonage for all or any part of that qualifying phase. c. A retail dealer who submits an application under this section shall waive the confidentiality of information in the department of revenue’s certification identifying the retail dealer or retail motor fuel site otherwise applicable under chapter 422 or 452A. The information maintained by the department of agriculture and land stewardship under this section is a confidential record under section 22.7 and shall be used by the department of agriculture and land stewardship for the limited purposes of evaluating the retail dealer’s application for approval and issuing an administrative order described in subsection 1. The certification may be used in a criminal proceeding alleging the retail dealer committed perjury as described in section 214A.11 when completing the application. The application shall include a notice of the waiver. The department of agriculture and land stewardship shall redact such identifying information in any record otherwise requiring disclosure by that department under chapter 22. d. The department of revenue, in cooperation with the department of agriculture and land stewardship, may adopt rules to administer this subsection. 4. The department shall publish on its internet site for each quarter of a calendar year information aggregated from administrative orders described in subsection 1 that shall be limited to the following:

House File 2128, p. 11 a. The total number of administrative orders issued. b. The total number of administrative orders in effect. 5. a. The secretary of agriculture shall terminate the administrative order described in subsection 1 if a terminable event has occurred. A terminable event occurs on the date that any of the following apply: (1) The failure of a retail dealer to be licensed as required under section 214.2 to use a commercial weighing and measuring device when dispensing gasoline at the retail motor fuel site. (2) The cessation of the retail dealer’s business of advertising for sale or selling gasoline at the retail motor fuel site. (3) The installation, replacement, or conversion of a gasoline storage tank located at the retail motor fuel site. b. The department may require that a retail dealer notify the department that a terminable event as described in paragraph “a” is planned to occur, is occurring, or has occurred. 6. a. This section shall be implemented on January 1, 2023. b. This subsection is repealed January 2, 2023. Sec. 7. NEW SECTION . 214A.37 Disciplinary action. 1. 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 not complying with the E-15 access standard as provided in section 214A.32, including rules adopted by the department pursuant to section 214A.1A to administer or enforce that section. 2. a. This section shall be implemented on January 1, 2023. b. This subsection is repealed January 2, 2023. Sec. 8. ISSUANCE OF ORDERS SUSPENDING, WAIVING, OR EXEMPTING E-15 ACCESS STANDARD. 1. The governor may issue an E-15 access standard suspension order as provided in section 214A.33, as enacted in this part of this division of this Act, prior to January 1, 2023, if the governor determines it is necessary to issue the order prior to that date. 2. The secretary of agriculture may issue an E-15 unavailability waiver order as provided in section 214A.34, as

House File 2128, p. 12 enacted in this part of this division of this Act, prior to January 1, 2023, if the secretary determines it is necessary to issue the order prior to that date. 3. The secretary of agriculture may issue an E-15 incompatible infrastructure waiver order as provided in section 214A.35, as enacted in this part of this division of this Act, prior to January 1, 2023, if the secretary determines it is necessary to issue the order prior to that date. 4. The secretary of agriculture may issue a small retail motor fuel site exemption administrative order as provided in section 214A.36, as enacted in this part of this division of this Act, prior to January 1, 2023, if the secretary determines it is necessary to issue the order prior to that date. Sec. 9. ADOPTION OF RULES IMPLEMENTING E-15 ACCESS STANDARD, E-15 INCOMPATIBLE INFRASTRUCTURE WAIVER ORDER, AND SMALL RETAIL MOTOR FUEL SITE EXEMPTION ADMINISTRATIVE ORDER. 1. The department of agriculture and land stewardship shall adopt rules pursuant to chapter 17A prior to January 1, 2023, as necessary to administer and enforce the E-15 access standard, as provided in section 214A.32, as enacted in this part of this division of this Act. 2. The department of agriculture and land stewardship shall adopt rules pursuant to chapter 17A prior to January 1, 2023, as necessary to administer and enforce an E-15 incompatible infrastructure waiver order, as provided in section 214A.35, as enacted in this part of this division of this Act. 3. The department of agriculture and land stewardship shall adopt rules pursuant to chapter 17A prior to January 1, 2023, as necessary to administer and enforce a small retail motor fuel site exemption administrative order as provided in section 214A.36, as enacted in this part of this division of this Act. PART B RELATED RENEWABLE FUELS AND INFRASTRUCTURE PROVISIONS Sec. 10. Section 214.1, Code 2022, is amended by adding the following new subsections: NEW SUBSECTION . 1A. “Department” means the department of agriculture and land stewardship. NEW SUBSECTION . 1B. “E-15 gasoline” or “E-15” means the same as defined in section 214A.1.

House File 2128, p. 13 NEW SUBSECTION . 3A. “Motor fuel dispenser” or “dispenser” means equipment that is the part of motor fuel storage and dispensing infrastructure that includes mechanical or electrical systems that operate a motor fuel pump dispensing motor fuel from a motor fuel storage tank to the end point of the equipment’s nozzle. NEW SUBSECTION . 4A. a. “Motor fuel storage and dispensing infrastructure” or “infrastructure” means equipment used to do any of the following: (1) Store and dispense motor fuel. (2) Store, blend, and dispense motor fuel. b. “Motor fuel storage and dispensing infrastructure” or “infrastructure” includes but is not limited to a motor fuel storage tank, motor fuel pump or motor fuel blender pump, motor fuel dispenser, and associated pipes, hoses, nozzles, tubes, lines, fittings, valves, filters, seals, and covers. Sec. 11. Section 214.1, subsections 3, 4, and 5, Code 2022, are amended to read as follows: 3. “Motor fuel blender pump” or “blender pump” means a motor fuel meter pump that measures and dispenses a type of motor fuel that is blended from to formulate two or more different types classifications of that motor fuels and which may dispense more than one type of blended motor fuel. 4. “Motor fuel pump” means the part of motor fuel storage and dispensing infrastructure that is a meter or similar commercial weighing and measuring device used to measure and dispense motor fuel originating from a motor fuel storage tank, on a retail basis. 5. “Motor fuel storage tank” or “storage tank” means the part of motor fuel storage and dispensing infrastructure that includes an aboveground or belowground container that is constituting a fixture used to store an accumulation of motor fuel. Sec. 12. Section 214.9, Code 2022, is amended to read as follows: 214.9 Self-service motor fuel pumps dispensers . A self-service motor fuel dispenser operating a motor fuel pump located at a retail motor fuel site may be equipped with an automatic latch-open device on the fuel dispensing hose

House File 2128, p. 14 nozzle only if the nozzle valve is the automatic closing type. Sec. 13. NEW SECTION . 214.12 Inspections of motor fuel dispensers —— E-15 access standard. 1. In conducting an inspection under section 214.11, an inspector for the department shall determine if a retail dealer is advertising for sale and selling E-15 gasoline at a retail motor fuel site in compliance with the E-15 access standard as provided in section 214A.32. 2. a. This section shall be implemented on January 1, 2023. b. This subsection is repealed January 2, 2023. Sec. 14. Section 214A.1, Code 2022, is amended by adding the following new subsections: NEW SUBSECTION . 2A. “B-20 biodiesel fuel” or “B-20” means a classification of biodiesel blended fuel formulated with a percentage of twenty percent by volume of biodiesel, if the formulation meets the standards provided in section 214A.2. NEW SUBSECTION . 10A. “Determination period” means any twelve-month period beginning on January 1 and ending on December 31 in which a retail dealer who owns or operates a retail motor fuel site sells and dispenses gasoline or diesel fuel from that retail motor fuel site as calculated by the department of revenue in chapter 452A, subchapter II. NEW SUBSECTION . 12A. “E-15 gasoline” or “E-15” means a classification of ethanol blended gasoline formulated with a percentage of fifteen percent by volume of ethanol, if the formulation meets the standards provided in section 214A.2. NEW SUBSECTION . 16A. “Gasoline dispenser” means a type of motor fuel dispenser that is part of gasoline storage and dispensing infrastructure. NEW SUBSECTION . 16B. “Gasoline storage and dispensing infrastructure” or “gasoline infrastructure” means motor fuel storage and dispensing infrastructure used to do any of the following: a. Store and dispense gasoline, including ethanol blended gasoline or biobutanol blended gasoline. b. Store, blend, and dispense gasoline, including ethanol blended gasoline or biobutanol blended gasoline. NEW SUBSECTION . 16C. “Gasoline storage tank” means a type of motor fuel storage tank used to store an accumulation of

House File 2128, p. 15 gasoline. NEW SUBSECTION . 18A. “Motor fuel dispenser” or “dispenser” means the same as defined in section 214.1. NEW SUBSECTION . 19A. “Motor fuel storage and dispensing infrastructure” or “infrastructure” means the same as defined in section 214.1. Sec. 15. NEW SECTION . 214A.1A Administration and enforcement. 1. This chapter shall be administered and enforced by the department which may adopt rules under chapter 17A to carry out the provisions of this chapter. 2. The department may adopt rules necessary to administer and enforce this chapter in conjunction with chapter 214. Sec. 16. Section 214A.2, subsection 1, Code 2022, is amended to read as follows: 1. a. The department shall adopt rules pursuant to chapter 17A for carrying out this chapter . The rules may include but are not limited to specifications establishing departmental standards relating to motor fuel, including but not limited to renewable fuel such as ethanol blended gasoline, biobutanol blended gasoline, biodiesel, biodiesel blended fuel, fuels and motor fuel components such as an oxygenate . b. In the interest of uniformity, the department shall adopt by reference other in part or in whole, as some of its departmental standards described in paragraph “a” , applicable specifications relating to tests and standards for motor fuel, including renewable fuel and motor fuel components, adopted by ASTM international and applicable requirements established by the United States environmental protection agency and A.S.T.M. international . Sec. 17. Section 214A.2, subsection 4, paragraph b, Code 2022, is amended by adding the following new subparagraph: NEW SUBPARAGRAPH . (5) (a) Biodiesel blended fuel classified as higher than B-20 must conform to standards adopted by the department. (b) The rules adopted by the department of agriculture and land stewardship establishing standards for biodiesel blended fuel classified as higher than B-20 shall take effect not earlier than sixty days after the date of filing in

House File 2128, p. 16 accordance with section 17A.5, subsection 2, paragraph “a” . The department of agriculture and land stewardship shall notify the legislative services agency, the governor, the department of natural resources, and the department of revenue of the effective date of the rules at least thirty days prior to the effective date of the rules. Sec. 18. Section 214A.8, Code 2022, is amended to read as follows: 214A.8 Prohibition. A dealer shall not knowingly sell motor fuel or biofuel in the state that fails to meet applicable standards and classifications as provided in section 214A.2 . Sec. 19. Section 214A.11, subsection 1, Code 2022, is amended to read as follows: 1. Except as otherwise provided in subsection 2 subsection 3 , a person who violates a provision of this chapter is guilty of a serious misdemeanor or is subject to an alternative civil enforcement action under subsection 2 . Each day that a continuing violation occurs shall be considered a separate offense. Sec. 20. Section 214A.11, Code 2022, is amended by adding the following new subsection: NEW SUBSECTION . 3. a. (1) A retail dealer who submits an application for an E-15 unavailability waiver order under section 214A.34 that the retail dealer knows includes information that is not true and correct commits perjury as provided in section 720.2. (2) (a) This paragraph “a” shall be implemented on January 1, 2023. (b) This subparagraph is repealed January 2, 2023. b. (1) A retail dealer who submits an application for an E-15 incompatible infrastructure waiver order under section 214A.35 that the retail dealer knows is not true and correct commits perjury as provided in section 720.2. (2) A certified professional retail motor fuel site installer who submits an inspection report as part of an application for an E-15 incompatible infrastructure waiver order under section 214A.35 that the installer knows is not true and correct commits perjury under section 720.2.

House File 2128, p. 17 (3) (a) This paragraph “b” shall be implemented on January 1, 2023. (b) This subparagraph is repealed on January 2, 2023. c. (1) A retail dealer who submits an application for a small retail motor fuel site exemption administrative order under section 214A.36 that the retail dealer knows is not true and correct commits perjury as provided in section 720.2. (2) (a) This paragraph “c” shall be implemented on January 1, 2023. (b) This subparagraph is repealed January 2, 2023. Sec. 21. Section 214A.20, Code 2022, is amended to read as follows: 214A.20 Limitation on liability. 1. A retail dealer or other marketer, pipeline company, refiner, terminal operator, or terminal owner is not liable for damages caused by the use of incompatible motor fuel dispensed from a motor fuel dispenser located at the retail dealer’s retail motor fuel site, if all of the following apply: a. The incompatible motor fuel complies with the specifications standards for a that type and classification of motor fuel as provided in section 214A.2 . b. The incompatible motor fuel is selected by the end use consumer of the motor fuel. c. The incompatible motor fuel is dispensed from a motor fuel pump dispenser that correctly labels the type and classification of fuel dispensed from a motor fuel storage tank . 2. For purposes of this section subsection 1 , a motor fuel is incompatible with a motor according to the manufacturer of the motor. PART C CODE ORGANIZATION Sec. 22. DIRECTIONS TO THE CODE EDITOR —— TRANSFERS. 1. The Code editor is directed to make the following transfers: a. Section 214A.3 to section 214A.21. b. Section 214A.7 to section 214A.22. c. Section 214A.8, as amended in this division of this Act, to section 214A.23.

House File 2128, p. 18 d. Section 214A.19 to section 214A.24. e. Section 214A.20, as amended in this division of this Act, to section 214A.25. 2. The Code editor shall correct internal references in the Code and in any enacted legislation as necessary due to the enactment of this section. Sec. 23. DIRECTIONS TO THE CODE EDITOR —— SUBCHAPTERS. The Code editor is directed to divide the provisions of chapter 214A, as amended, enacted, or transferred in this division of this Act, into subchapters as follows: 1. Subchapter I, including sections 214A.1 through 214A.20. 2. Subchapter II, including sections 214A.21 through 214A.30. 3. Subchapter III, including sections 214A.31 through 214A.37. DIVISION II COMPLIANCE REQUIREMENTS —— RENEWABLE FUEL INFRASTRUCTURE PART A PRINCIPAL PROVISIONS Sec. 24. NEW SECTION . 455G.2A Standards and classifications of motor fuel. For purposes of this chapter, motor fuel must meet the standards and classifications as provided in section 214A.2. Sec. 25. NEW SECTION . 455G.30 Definitions. As used in this subchapter, unless the context otherwise requires: 1. “Biodiesel blended fuel” means the same as defined in section 214A.1. 2. “Department” means the department of natural resources. 3. “Diesel fuel” means the same as defined in section 214A.1. 4. “Diesel fuel storage and dispensing infrastructure” or “diesel infrastructure” means motor fuel storage and dispensing infrastructure as defined in section 214.1 used to store and dispense diesel fuel, including biodiesel blended diesel fuel, at a retail motor fuel site as defined in section 214A.1. 5. “Ethanol blended gasoline” means the same as defined in section 214A.1. 6. “Gasoline storage and dispensing infrastructure” or

House File 2128, p. 19 “gasoline infrastructure” means the same as defined in section 214A.1. 7. “Retail dealer” means the same as defined in section 214A.1. Sec. 26. Section 455G.31, subsection 1, paragraph a, Code 2022, is amended by striking the paragraph. Sec. 27. Section 455G.31, subsection 2, Code 2022, is amended to read as follows: 2. A Subject to section 455G.32, a retail dealer may use gasoline storage and dispensing infrastructure to store and dispense ethanol blended gasoline classified as E-9 or higher if the department of natural resources under this subchapter or the state fire marshal under chapter 101 determines that it the gasoline infrastructure is compatible with the classification of ethanol blended gasoline being used. Sec. 28. Section 455G.31, subsection 3, Code 2022, is amended by striking the subsection. Sec. 29. NEW SECTION . 455G.32 E-85 gasoline compatible infrastructure —— compliance requirement. 1. A retail dealer shall not install, replace, or convert gasoline storage and dispensing infrastructure used to store and dispense ethanol blended gasoline classified as E-15 or higher, unless the installed, replaced, or converted gasoline infrastructure is capable of storing and dispensing ethanol blended gasoline classified as E-85. 2. The infrastructure must be all of the following: a. Listed as compatible for use with ethanol blended gasoline classified as E-85 by an independent testing laboratory or as approved by the manufacturer. b. Approved by the department or state fire marshal subject to conditions determined necessary by the department or state fire marshal. The department or state fire marshal may waive the requirement in paragraph “a” upon satisfaction that a substitute requirement serves the same purpose. Sec. 30. NEW SECTION . 455G.33 B-20 diesel fuel compatible infrastructure —— compliance requirement. 1. A retail dealer shall not install, replace, or convert diesel fuel storage and dispensing infrastructure unless the installed, replaced, or converted diesel fuel infrastructure