Week 16 Legislative Update

This was the first full week legislators went without per diem pay as they continue in the legislative session. Some big ticket issues were resolved this week including unemployment reform and the Biofuel Access Standard that passed the House in February. The House has not passed the school choice legislation the Senate did earlier this session and the Senate still has not passed any budgets so adjournment is still just over the horizon.

Biofuel Access Standard

The Senate amended HF2128 to include another waiver for retailers who sold less than 300,000 gallons of gasoline per location annually. Proponents of this waiver claim that it will exempt about 1/3 of Iowa retail locations from having to sell E15 by 2026. With this small retailer waiver, there are now 3 waivers to the E15 by 2026 law: class 1 waiver for older tanks, class 2 waiver for locations that would have more upgrade costs to become compliant than they could get in through the Renewable Fuel Infrastructure Program (RFIP) grant program, and the small retailer exemption.

The Senate amendment also changed the RFIP grants to a tiered system. Though the Senate has not passed any budgets, we think that they will appropriate at least the $9 million to this program that the House did earlier this session.

	Gallons sold annually per location	Number of locations	Grant money to retailer cost share
Tier 1	Less than 140,000	10 or less	90% grant- 10% retailer investment
Tier 2	140,000 to 450,000	10 or less	75% grant- 25% retailer investment
Tier 3	Over 450,000	More than 10	70% grant- 30% retailer investment

The amended bill passed the Senate 42-3 and passed the House shortly after that 81-13. Read more about the bill here.

Bill Tracking

This is a list of the bills IIC is following this session.

HF 2128 -Biofuel access standard- UNDECIDED/MONITORING

Passed the House and Senate, now goes to the Governor.

SF 2376-Annual overweight permits- FOR

This bill would allow DOT to issue annual permits for trucks to carry 12% more per axle. It carries a $500 fee, 3/4 of which goes to a county bridge fund and the other 1/4 going to the road use tax fund. Passed Senate, passed House and Senate, now goes to the Governor.

SF2231/HF2384- Pharmacy benefits manager- AGAINST

This bill has the potential to raise healthcare costs for employers as it would require a pharmacy benefits manager (PBM) to allow all pharmacies located in the state to participate in the pharmacy network. Wellmark estimates that this bill could increase costs by $90 per life covered under an insurance policy. The House file passed the House 96-0 and is now in the Senate.

HF 2560- IDALS, DNR, Environmental Protection budget- FOR

The Dept. of Ag budget includes a $4 million increase for the Renewable Fuel Instructure Grants, bringing the total fund to $9 million dollars. Passed the House, now in Senate subcommittee.

HF 2520 -Digital sales tax- FOR

This digital sales tax bill addresses an issue the rural electric coops have been fighting for a few years. Passed full the House.

SF 2337- Third party CDL testing- FOR

This bill would allow regional transit authorities to act as third party testers for CDL tests, which will hopefully free up other testing options. It also allows third party testers to offer the new written portion of the CDL test to comply with the new ELDT regulations. Passed both chambers, now goes to the Governor.

SF 2309- Raw milk- AGAINST

This bill provides for labeling and sale of raw milk in certain places. Passed the Senate, did not make it through second funnel.

HF 2536-Ag commodity weight limit increase- FOR

This bill would allow vehicles transporting corn, soybeans, hay, straw, silage, stover, or manure to exceed weight limits by 12.5% up to 90,000. This bill is very similar to the harvest proclamation the governor signs every fall but would be year round. Did not make it through second funnel.

HF 2329 -Prize linked savings- FOR

This bill passed full State Government committee and is now eligible for floor debate. Did not make it through second funnel.

General interest articles

Please reach out if you have any questions about what happened this week, what the rest of session might look like, or if you have any other questions or need assistance with a governmental organization or agency.

Rebecca Boyer

Director of Government Affairs

cell: 712-363-4397

office: 515-292-2667

rboyer@iowainstitute.coop