Bill Text: IA HF477 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to qualified motor fuel storage and dispensing infrastructure, by providing for a program to award financial incentives to store and dispense ethanol and ethanol blended gasoline classified as E-15 or higher, providing for a fund, making appropriations, and providing penalties.(Formerly HSB 153.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2021-02-11 - Introduced, referred to Appropriations. H.J. 374. [HF477 Detail]
Download: Iowa-2021-HF477-Introduced.html
House
File
477
-
Introduced
HOUSE
FILE
477
BY
COMMITTEE
ON
AGRICULTURE
(SUCCESSOR
TO
HSB
153)
A
BILL
FOR
An
Act
relating
to
qualified
motor
fuel
storage
and
dispensing
1
infrastructure,
by
providing
for
a
program
to
award
2
financial
incentives
to
store
and
dispense
ethanol
and
3
ethanol
blended
gasoline
classified
as
E-15
or
higher,
4
providing
for
a
fund,
making
appropriations,
and
providing
5
penalties.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
7
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Section
1.
Section
159A.11,
subsection
8,
Code
2021,
is
1
amended
to
read
as
follows:
2
8.
“Terminal”
means
a
storage
and
distribution
facility
3
bearing
a
terminal
control
number
as
required
by
the
federal
4
internal
revenue
service,
which
facility
is
for
motor
fuel
,
5
or
a
blend
stock
such
as
ethanol
or
biodiesel
,
that
is
stored
6
on-site
or
off-site
in
bulk
,
and
that
is
supplied
to
a
motor
7
vehicle,
pipeline,
or
a
marine
vessel
,
and
from
which
storage
8
and
distribution
facility
the
motor
fuel
or
blend
stock
may
9
be
removed
at
a
rack.
“Terminal”
does
not
include
any
of
the
10
following:
11
a.
A
retail
motor
fuel
site.
12
b.
A
facility
at
which
motor
fuel,
special
fuel,
or
blend
13
stocks
are
used
in
the
manufacture
of
products
other
than
motor
14
fuel
and
from
which
no
motor
fuel
or
special
fuel
is
removed.
15
Sec.
2.
Section
159A.13,
subsections
1
and
6,
Code
2021,
are
16
amended
to
read
as
follows:
17
1.
The
department
shall
provide
the
infrastructure
board
18
with
necessary
facilities,
items,
and
clerical
support.
The
19
department
shall
perform
administrative
functions
necessary
20
for
the
management
of
the
infrastructure
board
and
the
21
renewable
fuel
infrastructure
programs
as
provided
in
sections
22
159A.14
,
159A.14A,
and
159A.15
,
all
under
the
direction
of
the
23
infrastructure
board.
24
6.
The
infrastructure
board
shall
meet
with
three
or
25
more
members
of
the
underground
storage
tank
fund
board
who
26
shall
represent
the
underground
storage
tank
fund
board.
The
27
representatives
shall
be
available
to
advise
the
infrastructure
28
board
when
the
infrastructure
board
makes
decisions
regarding
29
the
awarding
of
financial
incentives
to
a
person
under
a
30
renewable
fuel
infrastructure
program
provided
in
section
31
159A.14
,
159A.14A,
or
159A.15
.
32
Sec.
3.
NEW
SECTION
.
159A.14A
E-15
plus
gasoline
qualified
33
infrastructure
program.
34
1.
An
E-15
plus
gasoline
qualified
infrastructure
program
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is
established
in
the
department
under
the
direction
of
the
1
infrastructure
board.
2
2.
The
purpose
of
the
program
is
to
improve
all
of
the
3
following:
4
a.
Existing
terminals
by
installing
new
fuel
storage
tanks
5
and
related
infrastructure
to
be
used
to
store,
blend,
or
6
dispense
ethanol
or
ethanol
blended
gasoline
classified
as
E-15
7
or
higher.
8
b.
Retail
motor
fuel
sites
by
installing
new
infrastructure,
9
or
replacing
or
converting
existing
infrastructure,
to
be
10
used
to
store,
blend,
or
dispense
ethanol
blended
gasoline
11
classified
as
E-15
or
higher.
12
3.
a.
The
ethanol
or
ethanol
blended
gasoline
classified
13
as
E-15
or
higher
must
comply
with
requirements
of
the
United
14
States
environmental
protection
agency
and
standards
provided
15
in
section
214A.2.
16
b.
Qualified
infrastructure
includes
tanks
and
all
17
associated
equipment,
including
but
not
limited
to
pipes,
18
hoses,
tubes,
lines,
fittings,
valves,
filters,
seals,
and
19
covers.
However,
qualified
infrastructure
does
not
include
20
motor
fuel
pumps,
motor
fuel
blender
pumps,
or
tank
vehicles.
21
4.
The
infrastructure
board
shall
approve
cost-share
22
agreements
to
make
qualified
infrastructure
improvements
23
if
executed
by
the
department
and
persons
that
the
24
infrastructure
board
determines
are
eligible
as
provided
in
25
this
section,
according
to
terms
and
conditions
required
by
the
26
infrastructure
board.
The
infrastructure
board
shall
determine
27
the
amount
of
the
financial
incentives
to
be
awarded
to
a
28
person
participating
in
the
program
subject
to
the
limitations
29
provided
in
this
section.
In
order
for
a
person
to
be
eligible
30
to
participate
in
the
program,
all
of
the
following
must
apply:
31
a.
The
person
must
be
any
of
the
following:
32
(1)
A
terminal
operator
of
a
terminal
seeking
to
improve
33
the
terminal.
34
(2)
The
owner
or
operator
of
a
retail
motor
fuel
site
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seeking
to
improve
the
retail
motor
fuel
site.
1
b.
The
person
must
apply
to
the
department
in
a
manner
and
2
according
to
procedures
required
by
the
infrastructure
board.
3
The
application
must
contain
all
information
required
by
the
4
infrastructure
board
and
shall
at
least
include
all
of
the
5
following:
6
(1)
The
name
of
the
person
and
the
address
of
the
terminal
7
or
retail
motor
fuel
site
to
be
improved.
8
(2)
(a)
For
a
terminal,
a
detailed
description
of
the
9
qualified
infrastructure
to
be
installed.
10
(b)
For
a
retail
motor
fuel
site,
a
detailed
description
11
of
the
qualified
infrastructure
to
be
installed,
replaced,
or
12
converted.
The
information
shall
include
the
model
number
of
13
each
installed,
replaced,
or
converted
motor
fuel
storage
tank,
14
if
available.
15
(3)
A
statement
describing
how
the
terminal
or
retail
motor
16
fuel
site
is
to
be
improved,
the
total
estimated
cost
of
the
17
planned
improvement,
and
the
proposed
date
when
the
qualified
18
infrastructure
will
be
first
used
following
the
completion
of
19
the
improvement.
20
(4)
A
statement
certifying
that
the
qualified
21
infrastructure
shall
only
be
used
to
comply
with
the
provisions
22
of
this
section
and
as
specified
in
the
cost-share
agreement,
23
unless
granted
a
waiver
by
the
infrastructure
board
pursuant
to
24
this
section.
25
5.
a.
A
terminal
improved
using
financial
incentives
26
awarded
under
this
section
must
comply
with
applicable
federal
27
and
state
standards
governing
new
motor
fuel
tanks
and
related
28
infrastructure
used
to
store
and
dispense
ethanol
or
ethanol
29
blended
gasoline
classified
as
E-15
or
higher.
30
b.
A
retail
motor
fuel
site
improved
using
financial
31
incentives
awarded
under
this
section
must
comply
with
32
applicable
federal
and
state
standards
governing
new
or
33
upgraded
motor
fuel
storage
tanks
used
to
store
and
dispense
34
ethanol
blended
gasoline
classified
as
E-15
or
higher
including
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as
provided
in
section
455B.474.
A
retail
motor
fuel
site
1
issued
a
certificate
of
no
further
action
by
the
department
2
of
natural
resources
under
that
section
shall
retain
its
3
classification
following
modifications
necessary
to
store
4
ethanol
blended
gasoline
classified
as
E-15
or
higher
and
the
5
owner
or
operator
of
the
retail
motor
fuel
site
shall
not
be
6
required
to
perform
a
new
site
assessment
unless
a
new
release
7
occurs
or
if
a
previously
unknown
or
unforeseen
risk
condition
8
arises.
9
6.
An
award
of
financial
incentives
to
a
participating
10
person
shall
be
on
a
cost-share
basis
in
the
form
of
a
grant.
11
To
participate
in
the
program,
an
eligible
person
must
execute
12
a
cost-share
agreement
with
the
department
as
approved
by
13
the
infrastructure
board,
in
which
the
person
contributes
a
14
percentage
of
the
total
costs
related
to
improving
the
retail
15
motor
fuel
site
or
terminal.
16
a.
A
cost-share
agreement
shall
be
for
five
years.
The
17
infrastructure
board
may
approve
multiple
improvements
to
18
the
same
terminal
or
retail
motor
fuel
site
so
long
as
the
19
improvements
are
made
under
separate
cost-share
agreements.
20
b.
(1)
The
financial
incentives
awarded
to
a
participating
21
person
to
improve
a
terminal
or
retail
motor
fuel
site
shall
22
not
exceed
fifty
percent
of
the
actual
cost
of
making
the
23
improvement
or
six
hundred
thousand
dollars,
whichever
is
less.
24
(2)
The
infrastructure
board
may
approve
multiple
awards
of
25
financial
incentives
to
make
improvements
to
the
same
terminal
26
or
retail
motor
fuel
site
so
long
as
the
total
amount
of
awards
27
does
not
exceed
the
limitations
provided
in
subparagraph
(1).
28
(3)
The
infrastructure
board
shall
not
award
a
total
of
29
more
than
one
million
dollars
in
financial
incentives
to
a
30
participating
person
during
any
twelve-month
period.
31
7.
A
participating
person
who
is
a
terminal
operator
awarded
32
financial
incentives
to
improve
an
existing
terminal
shall
33
not
use
the
installed
motor
fuel
tank
or
related
qualified
34
infrastructure
to
store
and
dispense
a
biofuel
other
than
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ethanol
or
a
motor
fuel
other
than
ethanol
blended
gasoline
1
classified
as
E-15
or
higher,
unless
one
of
the
following
2
applies:
3
a.
The
participating
person
is
granted
a
waiver
by
the
4
infrastructure
board.
The
participating
person
shall
store
and
5
dispense
the
biofuel
or
motor
fuel
according
to
the
terms
and
6
conditions
of
the
waiver.
7
b.
(1)
During
a
fiscal
year
of
the
period
beginning
July
8
1,
2021,
and
ending
June
30,
2031,
the
E-15
plus
gasoline
9
qualified
infrastructure
fund
created
in
section
159A.17
10
is
immediately
repaid
the
total
amount
awarded
to
the
11
participating
person
together
with
a
monetary
penalty
equal
to
12
twenty-five
percent
of
that
awarded
amount.
13
(2)
This
subparagraph
is
repealed
January
1,
2032.
14
c.
During
the
fiscal
year
beginning
July
1,
2031,
and
each
15
fiscal
year
thereafter,
the
renewable
fuel
infrastructure
fund
16
created
in
section
159A.16
is
immediately
repaid
the
total
17
amount
awarded
to
the
participating
person
together
with
a
18
monetary
penalty
equal
to
twenty-five
percent
of
that
awarded
19
amount.
20
8.
A
participating
person
who
is
the
owner
or
operator
of
a
21
retail
motor
fuel
site
awarded
financial
incentives
to
improve
22
a
retail
motor
fuel
site
by
installing
new
or
replacing
or
23
converting
existing
qualified
infrastructure
shall
not
use
the
24
qualified
infrastructure
to
store
and
dispense
motor
fuel
other
25
than
ethanol
blended
gasoline
classified
as
E-15
or
higher,
26
unless
one
of
the
following
applies:
27
a.
The
participating
person
is
granted
a
waiver
by
the
28
infrastructure
board.
The
participating
person
shall
store
or
29
dispense
the
motor
fuel
according
to
the
terms
and
conditions
30
of
the
waiver.
31
b.
The
renewable
fuel
infrastructure
fund
created
in
section
32
159A.16
is
immediately
repaid
the
total
amount
of
moneys
33
awarded
to
the
participating
person
together
with
a
monetary
34
penalty
equal
to
twenty-five
percent
of
that
awarded
amount.
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9.
A
participating
person
may
be
awarded
financial
1
incentives
under
this
section
regardless
of
whether
the
2
participating
person
received
financial
incentives
under
the
3
renewable
fuel
infrastructure
program
for
retail
motor
fuel
4
sites
established
in
section
159A.14.
5
10.
A
participating
person
who
acts
in
violation
of
an
6
agreement
executed
with
the
department
pursuant
to
this
section
7
is
subject
to
a
civil
penalty
of
not
more
than
one
thousand
8
dollars
per
day
for
each
day
of
the
violation.
The
civil
9
penalty
shall
be
deposited
in
the
general
fund
of
the
state.
10
Sec.
4.
Section
159A.16,
subsection
3,
Code
2021,
is
amended
11
to
read
as
follows:
12
3.
Moneys
in
the
renewable
fuel
infrastructure
fund
are
13
appropriated
to
the
department
exclusively
to
support
and
14
market
the
renewable
fuel
infrastructure
programs
as
provided
15
in
sections
159A.14
,
159A.14A,
and
159A.15
,
and
as
allocated
in
16
financial
incentives
by
the
renewable
fuel
infrastructure
board
17
created
in
section
159A.13
.
Up
18
a.
(1)
For
each
fiscal
year
for
the
period
beginning
19
July
1,
2021,
and
ending
June
30,
2031,
one
million
dollars
20
from
moneys
credited
to
the
renewable
fuel
infrastructure
21
fund
shall
be
transferred
to
the
E-15
plus
gasoline
qualified
22
infrastructure
fund
created
in
section
159A.17.
23
(2)
This
paragraph
“a”
is
repealed
January
1,
2032.
24
b.
Of
the
remaining
moneys
in
the
renewable
fuel
25
infrastructure
fund,
up
to
fifty
thousand
dollars
shall
be
26
allocated
each
fiscal
year
to
the
department
to
support
the
27
administration
of
the
programs.
The
department
may
use
up
to
28
one
and
one-half
percent
of
the
program
funds
available
under
29
this
paragraph
to
market
the
programs.
Otherwise
the
moneys
30
shall
not
be
transferred,
used,
obligated,
appropriated,
or
31
otherwise
encumbered
except
to
allocate
as
financial
incentives
32
under
the
programs.
33
Sec.
5.
NEW
SECTION
.
159A.17
E-15
plus
gasoline
qualified
34
infrastructure
fund.
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1.
An
E-15
plus
gasoline
qualified
infrastructure
fund
1
is
created
in
the
state
treasury
under
the
control
of
the
2
department.
The
fund
is
separate
from
the
general
fund
of
the
3
state.
4
2.
The
E-15
plus
gasoline
qualified
infrastructure
fund
is
5
composed
of
moneys
appropriated
by
the
general
assembly
and
6
moneys
available
to
and
obtained
or
accepted
by
the
department
7
from
the
United
States
government
or
private
sources
for
8
placement
in
the
fund.
9
3.
Moneys
in
the
E-15
plus
gasoline
qualified
10
infrastructure
fund
are
appropriated
to
the
department
11
exclusively
to
support
the
E-15
plus
gasoline
qualified
12
infrastructure
program
by
financing
improvements
to
13
existing
terminals
where
new
fuel
storage
tanks
and
related
14
infrastructure
are
installed
as
provided
in
section
159A.14A.
15
4.
a.
Notwithstanding
section
12C.7,
interest
or
earnings
16
on
moneys
in
the
E-15
plus
gasoline
qualified
infrastructure
17
fund
shall
be
credited
to
the
fund.
18
b.
Notwithstanding
section
8.33,
unencumbered
and
19
unobligated
moneys
remaining
in
the
fund
at
the
close
of
each
20
fiscal
year
shall
not
revert
but
shall
remain
available
in
the
21
fund
for
the
purposes
designated.
22
5.
Notwithstanding
subsection
3,
any
unencumbered
and
23
unobligated
moneys
remaining
in
the
E-15
plus
gasoline
24
qualified
infrastructure
fund
on
June
30,
2031,
shall
be
25
transferred
to
the
renewable
fuel
infrastructure
fund
created
26
in
section
159A.16.
27
6.
This
section
is
repealed
January
1,
2032.
28
EXPLANATION
29
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
30
the
explanation’s
substance
by
the
members
of
the
general
assembly.
31
This
bill
creates
an
E-15
plus
gasoline
qualified
32
infrastructure
program
(program)
to
award
financial
incentives
33
to
improve
terminals
and
retail
motor
fuel
sites
(retail
34
sites)
by
installing
new
motor
fuel
storage
tanks
(e.g.,
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underground
storage
tanks)
and
associated
fittings
and
1
equipment.
Qualified
infrastructure
does
not
include
certain
2
items
associated
with
dispensing
motor
fuel
(e.g.,
motor
fuel
3
pumps
or
tank
wagons).
The
financial
awards
may
also
be
used
4
to
replace
or
convert
qualified
infrastructure
at
retail
5
sites.
The
moneys
are
awarded
by
the
department
of
agriculture
6
and
land
stewardship
(DALS)
working
in
cooperation
with
the
7
renewable
fuel
infrastructure
board
(board)
(Code
section
8
159A.13).
Awards
are
made
to
a
terminal
operator
or
the
owner
9
or
operator
of
a
retail
site
(participating
person).
The
bill
10
imposes
caps
on
the
amount
that
may
be
awarded
to
improve
a
11
terminal
or
retail
site
to
the
same
participating
person
during
12
any
12-month
period.
An
award
to
a
participating
person
is
13
based
on
a
five-year
cost-share
agreement
(agreement)
executed
14
by
the
participating
person
and
DALS
acting
in
cooperation
with
15
the
board.
The
bill
provides
that
the
board
may
waive
the
16
requirement
that
the
improved
infrastructure
be
used
to
store
17
and
dispense
ethanol
or
ethanol
blended
gasoline
classified
as
18
E-15
or
higher.
A
participating
person
who
acts
in
violation
19
of
an
agreement
is
subject
to
a
civil
penalty
of
up
to
$1,000
20
per
day.
The
bill
also
creates
an
E-15
plus
gasoline
qualified
21
infrastructure
fund
that
is
used
to
support
the
program.
The
22
E-15
plus
gasoline
qualified
infrastructure
fund
is
supported
23
by
an
annual
transfer
from
the
renewable
fuel
infrastructure
24
fund
of
$1
million
for
10
years.
Moneys
in
the
new
fund
must
be
25
used
to
finance
improvements
to
terminals.
The
new
fund
and
26
the
associated
transfer
are
eliminated
after
the
fiscal
year
27
ending
June
30,
2031.
Improvements
to
retail
sites
under
the
28
program
are
financed
by
the
renewable
fuel
infrastructure
fund.
29
BACKGROUND.
Ethanol
refers
to
agriculturally
derived
30
ethyl
alcohol.
Generally,
ethanol
blended
fuel
is
classified
31
according
to
the
volume
percent
of
ethanol
in
a
unit
(gallon)
32
of
gasoline
and
must
meet
certain
regulations
established
by
33
the
United
States
environmental
protection
agency
and
A.S.T.M.
34
international
specifications
(Code
section
214A.2).
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The
new
program
is
similar
to
the
renewable
fuel
1
infrastructure
program
for
retail
motor
fuel
sites
that
is
2
administered
by
DALS
and
the
board
to
improve
retail
sites
by
3
financing
infrastructure
associated
with
storing
and
dispensing
4
ethanol
blended
gasoline
classified
as
E-15
and
E-85
and
5
biodiesel
fuel
(Code
section
159A.14).
That
program
as
well
6
as
the
renewable
fuel
infrastructure
program
for
biodiesel
7
terminal
facilities
(Code
section
159A.15)
is
supported
by
8
moneys
credited
to
the
renewable
fuel
infrastructure
fund
(Code
9
section
159A.16).
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