HF 2441

as introduced - 88th Legislature (2013 - 2014) Posted on 02/27/2014 03:43pm

A bill for an act
relating to commerce; consumer protection; modifying biodiesel content
requirements and related regulations; eliminating a sunset; amending Minnesota
Statutes 2012, section 239.77, subdivisions 2, 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 239.77, subdivision 2, is amended to read:

Subd. 2.

Minimum Biodiesel content requirements.

(a) Except as otherwise
provided in this section, all diesel fuel sold or offered for sale in Minnesota for use in
internal combustion engines must contain at least no more than the stated percentage of
biodiesel fuel oil by volume on and after the following dates:

(1)	September 29, 2005	2 percent
(2)	May 1, 2009	5 percent
(3)	May 1, 20122020	10 percent
(4)	May 1, 2015	20 percent

(b) The minimum content levels level in paragraph (a), clauses clause (3) and (4)
are is effective during the months of April, May, June, July, August, and September,
and October only. The minimum content for the remainder of the year is five percent.
However, if the commissioners of agriculture, commerce, and pollution control determine,
after consultation with the biodiesel task force and other technical experts, that an
American Society for Testing and Materials specification or equivalent federal standard
exists for the specified biodiesel blend level in those clauses that adequately addresses
technical issues associated with Minnesota's cold weather and publish a notice in the State
Register to that effect, the commissioners may allow the specified biodiesel blend level in
those clauses to be effective year-round.

(b) (c) The minimum content levels level in paragraph (a), clauses clause (3) and
(4), become becomes effective on the date specified only if after a contested case hearing
under chapter 14 the commissioners of agriculture, commerce, and pollution control
publish notice in the State Register and provide written notice to the chairs of the house of
representatives and senate committees with jurisdiction over agriculture, commerce, and
transportation policy and finance, at least 270 days prior to the date of each scheduled
increase, that all of the following conditions have been met and the state is prepared to
move to the next scheduled minimum content level:

(1) an American Society for Testing and Materials specification or equivalent federal
standard exists for the next minimum diesel-biodiesel blend;

(2) a sufficient supply of biodiesel is available and the amount of biodiesel produced
in this state from feedstock with at least 75 percent that is produced in the United States
and Canada is equal to at least 50 percent of anticipated demand at the next minimum
content level;

(3) adequate blending infrastructure and regulatory protocol are in place in order to
promote biodiesel quality and avoid any potential economic disruption; and

(4) at least five percent of the amount of biodiesel necessary for that minimum
content level will be produced from a biological resource other than an agricultural
resource traditionally grown or raised in the state, including, but not limited to, algae
cultivated for biofuels production, waste oils, and tallow.; and

(5) the commissioner of public safety certifies that the quality and proposed
maximum biodiesel content by volume meets manufacturer recommendations for all
diesel-powered motor vehicles registered in Minnesota, regardless of model year.

The condition in clause (2) may be waived if the commissioner finds that, due to
weather-related conditions, the necessary feed stock is unavailable.

The condition in clause (4) may be waived if the commissioners find that the use of
these nontraditional feedstocks would be uneconomic under market conditions existing at
the time notice is given under this paragraph.

(c) (d) The commissioners of agriculture, commerce, and pollution control must
consult with the biodiesel task force when assessing and certifying conditions in paragraph
(b) (c), and in general must seek the guidance of the biodiesel task force regarding
biodiesel labeling, enforcement, and other related issues.

(d) (e) During a period of biodiesel fuel shortage or a problem with biodiesel quality
that negatively affects the availability of biodiesel fuel, the commissioner of commerce
may temporarily suspend the minimum content requirement in subdivision 2 until there
is sufficient biodiesel fuel, as defined in subdivision 1, available to fulfill the minimum
content requirement.

(e) By February 1, 2012, and periodically thereafter, (f) The commissioner of
commerce shall annually determine the wholesale diesel price at various pipeline and
refinery terminals in the region, and the biodiesel price determined after credits and
incentives are subtracted at biodiesel plants in the region. The commissioner shall report
wholesale price differences to the governor who, after consultation with the commissioners
of commerce and agriculture, may must by executive order adjust the biodiesel mandate if
a price disparity reported by the commissioner is greater than ten cents per retail gallon or
will cause economic hardship to retailers or consumers of diesel fuel in this state. Any
adjustment must be for a specified period of time, after which the percentage of biodiesel
fuel to be blended into diesel fuel returns to the amount required in subdivision 2. The
biodiesel mandate must not be adjusted to less than five percent.

EFFECTIVE DATE.

This section is effective retroactively from January 1, 2013,
and applies to any increase in biodiesel content published in the State Register on or
after that date.

Sec. 2.

Minnesota Statutes 2012, section 239.77, subdivision 3, is amended to read:

Subd. 3.

Exceptions.

(a) The minimum content requirements of subdivision 2 do
not apply to fuel used in the following equipment:

(1) motors located at an electric generating plant regulated by the Nuclear
Regulatory Commission;

(2) railroad locomotives;

(3) off-road taconite and copper mining equipment and machinery;

(4) off-road logging equipment and machinery; and

(5) vessels of the United States Coast Guard and vessels subject to inspection under
United States Code, title 46, section 3301, subsection (1), (9), (10), (13), or (15).

(b) The exemption in paragraph (a), clause (1), expires 30 days after the Nuclear
Regulatory Commission has approved the use of biodiesel fuel in motors at electric
generating plants under its regulation.

(c) The minimum content requirements of subdivision 2 do not apply to Number 1
diesel fuel sold or offered for sale during the months of October, November, December,
January, February, and March.

(d) This subdivision expires May 1, 2015.

EFFECTIVE DATE.

This section is effective the day following final enactment.