Iowa House Bill HSB742

Iowa 2023-2024 Regular Session

• Introduced: 3/25/24
• Refer: 3/25/24

Caption

A bill for an act relating to ethanol blended gasoline, by providing for gasoline storage and dispensing infrastructure and a financing program, and including effective date provisions.(See HF 2687.)

Impact

The introduction of HSB742 would amend existing state laws regarding fuel infrastructure, specifically targeting the transition to higher ethanol blends. Retail dealers will have a defined timeline to upgrade their systems, accommodating E-15 until 2025, transitioning to E-40 until 2030, and ultimately requiring compatibility with E-85. This progressive phasing approach is intended to support state goals related to sustainability and emissions reduction, as well as promote the use of locally produced ethanol.

Summary

House Study Bill 742 (HSB742) establishes provisions concerning the infrastructure for ethanol blended gasoline, focusing on gasoline storage and dispensing capabilities. The bill mandates that retail dealers of motor fuel must ensure their infrastructure can store and dispense ethanol blends designated as E-85 or higher. This requirement aims to enhance the availability of renewable fuels in Iowa, supporting legislative efforts to bolster the renewable energy sector and reduce dependence on traditional gasoline.

Contention

While proponents argue that HSB742 is a vital step towards environmental sustainability and energy independence, some concerns have been raised regarding the economic impact on smaller retailers required to invest in new infrastructure. There are apprehensions that compliance costs may disproportionately affect smaller fuel sites, making it challenging for them to compete with larger retailers who may more easily absorb these upgrades. Such issues suggest potential disparities in the market that could arise from the bill's enactment, leading to discussions about inclusivity in renewable energy initiatives.