15G.203 - RENEWABLE FUEL INFRASTRUCTURE PROGRAM FOR RETAIL MOTOR FUEL SITES.
15G.203 RENEWABLE FUEL INFRASTRUCTURE PROGRAM FOR
RETAIL MOTOR FUEL SITES.
A renewable fuel infrastructure program for retail motor fuel
sites is established in the department under the direction of the
renewable fuel infrastructure board created pursuant to section
15G.202.
1. The purpose of the program is to improve retail motor fuel
sites by installing, replacing, or converting infrastructure to be
used to store, blend, or dispense renewable fuel. The infrastructure
shall be ethanol infrastructure or biodiesel infrastructure.
a. (1) Ethanol infrastructure shall be designed and used
exclusively to do any of the following:
(a) Store and dispense E-85 gasoline.
(b) Store, blend, and dispense motor fuel from a motor fuel
blender pump, as required in this subparagraph division. The ethanol
infrastructure must provide for the storage of ethanol or ethanol
blended gasoline, or for blending ethanol with gasoline. The ethanol
infrastructure must at least include a motor fuel blender pump which
dispenses different classifications of ethanol blended gasoline and
allows E-85 gasoline to be dispensed at all times that the blender
pump is operating.
(2) Biodiesel infrastructure shall be designed and used
exclusively to do any of the following:
(a) Store and dispense biodiesel or biodiesel blended fuel.
(b) Blend or dispense biodiesel fuel from a motor fuel blender
pump.
b. The infrastructure must be part of the premises of a
retail motor fuel site operated by a retail dealer. The
infrastructure shall not include a tank vehicle.
2. A person may apply to the department to receive financial
incentives on a cost-share basis. The department shall forward the
applications to the underground storage tank fund board as required
by that board for evaluation and recommendation. The underground
storage tank fund board may rank the applications with comments and
shall forward them to the infrastructure board for approval or
disapproval. The department shall award financial incentives on a
cost-share basis to an eligible person whose application was approved
by the infrastructure board.
3. The infrastructure board shall approve cost-share agreements
executed by the department and persons that the infrastructure board
determines are eligible as provided in this section, according to
terms and conditions required by the infrastructure board. The
infrastructure board shall determine the amount of the financial
incentives to be awarded to a person participating in the program.
In order to be eligible to participate in the program all of the
following must apply:
a. The person must be an owner or operator of the retail
motor fuel site.
b. The person must apply to the department in a manner and
according to procedures required by the infrastructure board. The
application must contain all information required by the
infrastructure board and shall at least include all of the following:
(1) The name of the person and the address of the retail motor
fuel site to be improved.
(2) A detailed description of the infrastructure to be installed,
replaced, or converted, including but not limited to the model number
of each installed, replaced, or converted motor fuel storage tank if
available.
(3) A statement describing how the retail motor fuel site is to
be improved, the total estimated cost of the planned improvement, and
the date when the infrastructure will be first used.
(4) A statement certifying that the infrastructure shall only be
used to comply with the provisions of this section and as specified
in the cost-share agreement, unless granted a waiver by the
infrastructure board pursuant to this section.
4. A retail motor fuel site which is improved using financial
incentives must comply with federal and state standards governing new
or upgraded motor fuel storage tanks used to store and dispense the
renewable fuel. A site classified as a no further action site
pursuant to a certificate issued by the department of natural
resources under section 455B.474 shall retain its classification
following modifications necessary to store and dispense the renewable
fuel and the owner or operator shall not be required to perform a new
site assessment unless a new release occurs or if a previously
unknown or unforeseen risk condition should arise.
5. An award of financial incentives to a participating person
shall be on a cost-share basis in the form of a grant. To
participate in the program, an eligible person must execute a
cost-share agreement with the department as approved by the
infrastructure board in which the person contributes a percentage of
the total costs related to improving the retail motor fuel site. A
cost-share agreement shall be for a three-year period or a five-year
period. A cost-share agreement shall include provisions for standard
financial incentives or standard financial incentives and
supplemental financial incentives as provided in this subsection.
The infrastructure board may approve multiple improvements to the
same retail motor fuel site for the full amount available for both
ethanol infrastructure and biodiesel infrastructure so long as the
improvements for ethanol infrastructure and for biodiesel
infrastructure are made under separate cost-share agreements.
a. (1) Except as provided in paragraph "b", a
participating person may be awarded standard financial incentives to
make improvements to a retail motor fuel site. The standard
financial incentives awarded to a participating person shall not
exceed the following:
(a) For a three-year cost-share agreement, fifty percent of the
actual cost of making the improvement or thirty thousand dollars,
whichever is less.
(b) For a five-year cost-share agreement, seventy percent of the
actual cost of making the improvement or fifty thousand dollars,
whichever is less.
(2) The infrastructure board may approve multiple awards of
standard financial incentives to make improvements to a retail motor
fuel site so long as the total amount of the awards for ethanol
infrastructure or biodiesel infrastructure does not exceed the
limitations provided in subparagraph (1).
b. In addition to any standard financial incentives awarded
to a participating person under paragraph "a", the participating
person may be awarded supplemental financial incentives to make
improvements to a retail motor fuel site to do any of the following:
(1) Upgrade or replace a dispenser which is part of gasoline
storage and dispensing infrastructure used to store and dispense E-85
gasoline as provided in section 455G.31. The participating person is
only eligible to be awarded the supplemental financial incentives if
the person installed the dispenser not later than sixty days after
the date of the publication in the Iowa administrative bulletin of
the state fire marshal's order providing that a commercially
available dispenser is listed as compatible for use with E-85
gasoline by an independent testing laboratory as provided in section
455G.31. The supplemental financial incentives awarded to the
participating person shall not exceed seventy-five percent of the
actual cost of making the improvement or thirty thousand dollars,
whichever is less.
(2) To improve additional retail motor fuel sites owned or
operated by a participating person within a twelve-month period as
provided in the cost-share agreement. The supplemental financial
incentives shall be used for the installation of an additional tank
and associated infrastructure at each such retail motor fuel site. A
participating person may be awarded supplemental financial incentives
under this subparagraph and standard financial incentives under
paragraph "a" to improve the same motor fuel site. The
supplemental financial incentives awarded to the participating person
shall not exceed twenty-four thousand dollars. The participating
person shall be awarded the supplemental financial incentives on a
cumulative basis according to the schedule provided in this
subparagraph, which shall not exceed the following:
(a) For the second retail motor fuel site, six thousand dollars.
(b) For the third retail motor fuel site, six thousand dollars.
(c) For the fourth retail motor fuel site, six thousand dollars.
(d) For the fifth retail motor fuel site, six thousand dollars.
6. A participating person shall not use the infrastructure to
store and dispense motor fuel other than the type of renewable fuel
approved by the board in the cost-share agreement, unless one of the
following applies:
a. The participating person is granted a waiver by the
infrastructure board. The participating person shall store or
dispense the motor fuel according to the terms and conditions of the
waiver.
b. The renewable fuel infrastructure fund created in section
15G.205 is immediately repaid the total amount of moneys awarded to
the participating person together with a monetary penalty equal to
twenty-five percent of that awarded amount. The amount shall be
deposited in the renewable fuel infrastructure fund created in
section 15G.205.
7. A participating person who acts in violation of an agreement
executed with the department pursuant to this section is subject to a
civil penalty of not more than one thousand dollars a day for each
day of the violation. The civil penalty shall be deposited into the
general fund of the state. Section History: Recent Form
2006 Acts, ch 1142, §30; 2007 Acts, ch 126, §9; 2007 Acts, ch 211,
§46; 2008 Acts, ch 1032, § 128; 2008 Acts, ch 1169, § 4--9, 30; 2009
Acts, ch 41, §263
Referred to in § 15.104, 15G.202, 15G.205 Footnotes
Award of financial incentives for participation in renewable fuel
infrastructure program for certain retail motor fuel sites;
application deadline; 2008 Acts, ch 1169, § 28