HF 1433

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 03/18/2021 03:54pm

A bill for an act
relating to agriculture; requiring compliance with certain compatibility standards;
modifying minimum ethanol standard; making technical changes; requiring
rulemaking; amending Minnesota Statutes 2020, sections 116.49, by adding a
subdivision; 239.791, subdivisions 1, 2a, 2b, 2c, 15, by adding subdivisions.

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

Section 1.

Minnesota Statutes 2020, section 116.49, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Minimum compatibility standard for new equipment. new text end

new text begin (a) Any underground
storage tank system for gasoline installed after December 31, 2022, must meet compatibility
standards in rules adopted under authority of this section for gasoline containing up to 15
percent ethanol.
new text end

new text begin (b) If a new mid-level blend certification for ethanol is established, the agency must
consider revising the minimum compatibility standards required under paragraph (a).
new text end

Sec. 2.

Minnesota Statutes 2020, section 239.791, subdivision 1, is amended to read:

Subdivision 1.

Minimum biofuel deleted text begin content required deleted text end new text begin standard new text end .

(a) Except as provided
in subdivisions 10 to deleted text begin 14 deleted text end new text begin 18 new text end , a person responsible for the product shall ensure that all gasoline
sold or offered for sale in Minnesota deleted text begin must contain deleted text end new text begin contains new text end at least the quantity of biofuel
required by new text begin the greater of new text end clause (1) or (2) deleted text begin , at the option of the person responsible for the
product deleted text end :

deleted text begin (1) the greater of:
deleted text end

deleted text begin (i) deleted text end new text begin (1) new text end 10.0 percent conventional biofuel by volume; or

deleted text begin (ii) the maximum percent deleted text end new text begin (2) the stated percentage new text end of conventional biofuel by volume
authorized in a waiver granted by the United States Environmental Protection Agency deleted text begin ; or deleted text end new text begin
under United States Code, title 42, section 7545, no sooner than July 1, 2023, for distributors
that can demonstrate equipment compatibility, and no later than July 1, 2026, for all
distributors as funding and construction materials become available for 15 percent.
new text end

deleted text begin (2) 10.0 percent of a biofuel, other than a conventional biofuel, by volume authorized
in a waiver granted by the United States Environmental Protection Agency or a biofuel
formulation registered by the United States Environmental Protection Agency under United
States Code, title 42, section 7545.
deleted text end

(b) For purposes of enforcing the requirement of paragraph (a), clause (1), deleted text begin item (i), deleted text end a
gasoline/biofuel blend will be construed to be in compliance if the new text begin conventional new text end biofuel
content, exclusive of denaturants and other permitted components, comprises not less than
9.2 percent by volume and not more than 10.0 percent by volume of the blend as determined
by an appropriate United States Environmental Protection Agency or American Society of
Testing Materials standard method of analysis.

deleted text begin (c) The aggregate amount of biofuel blended pursuant to this subdivision may be any
biofuel; however, conventional biofuel must comprise no less than the portion specified on
and after the specified dates:
deleted text end

deleted text begin (1) deleted text end	deleted text begin July 1, 2013 deleted text end	deleted text begin 90 percent deleted text end
deleted text begin (2) deleted text end	deleted text begin January 1, 2015 deleted text end	deleted text begin 80 percent deleted text end
deleted text begin (3) deleted text end	deleted text begin January 1, 2017 deleted text end	deleted text begin 70 percent deleted text end
deleted text begin (4) deleted text end	deleted text begin January 1, 2020 deleted text end	deleted text begin 60 percent deleted text end
deleted text begin (5) deleted text end	deleted text begin January 1, 2025 deleted text end	deleted text begin no minimum deleted text end

new text begin (c) For purposes of enforcing the requirement of paragraph (a), clause (2), a gasoline
and conventional biofuel blend is considered to be in compliance if the conventional biofuel
content, exclusive of denaturants and other permitted components, comprises not less than
13.8 percent by volume and not more than 15 percent by volume of the blend as determined
by an appropriate United States Environmental Protection Agency or American Society of
Testing Materials standard method of analysis. Dispensers dispensing the blend specified
in paragraph (a), clause (2), must be marked according to rules adopted by the commissioner.
new text end

Sec. 3.

Minnesota Statutes 2020, section 239.791, subdivision 2a, is amended to read:

Subd. 2a.

Federal Clean Air Act waivers; conditions.

(a) Before a waiver granted by
the United States Environmental Protection Agency under United States Code, title 42,
section 7545, may alter the minimum content level required by subdivision 1, paragraph
(a), clause deleted text begin (1), item (ii) deleted text end new text begin (2) new text end , the waiver must:

(1) apply to deleted text begin all deleted text end new text begin over 90 percent of new text end gasoline-powered motor vehicles deleted text begin irrespective of model
year deleted text end ; and

(2) allow for special regulatory treatment of Reid vapor pressure under Code of Federal
Regulations, title 40, section deleted text begin 80.27, paragraph (d) deleted text end new text begin 1090.215(b) new text end , for blends of gasoline and
ethanol up to the maximum percent of denatured ethanol by volume authorized under the
waiver.

(b) The minimum biofuel requirement in subdivision 1, paragraph (a), clause deleted text begin (1), item
(ii) deleted text end new text begin (2) new text end , shall, upon the grant of the federal waiver, be effective deleted text begin the day after the commissioner
of commerce publishes notice in the State Register. In making this determination, the
commissioner shall consider the amount of time required by refiners, retailers, pipeline and
distribution terminal companies, and other fuel suppliers, acting expeditiously, to make the
operational and logistical changes required to supply fuel in compliance with the minimum
biofuel requirement. deleted text end new text begin only if the commissioners of agriculture, commerce, transportation,
and pollution control publish notice in the State Register and provide written notice to the
chairs of the legislative committees with jurisdiction over agriculture, commerce,
environment, and transportation policy and finance at least 270 days prior to the date of the
scheduled increase that the following conditions have been met and the state is prepared to
move to the scheduled minimum content level:
new text end

new text begin (1) an American Society for Testing and Materials specification or equivalent federal
standard exists for the next minimum gasoline and conventional biofuel blend;
new text end

new text begin (2) the next minimum content level is approved for sale by the United States
Environmental Protection Agency;
new text end

new text begin (3) a distributor who distributes or sells petroleum products in Minnesota has had adequate
time to ensure that all fuel-dispensing equipment is capable of dispensing and storing gasoline
containing up to the scheduled minimum conventional biofuel content in subdivision 1, in
conformance with standards of the United States Environmental Protection Agency, rules
adopted under section 116.49, and the State Fire Code, considering factors such as the
availability of fuel-dispensing equipment and the availability of fuel-dispensing equipment
installers and service providers; and
new text end

new text begin (4) a distributor who distributes or sells petroleum products in Minnesota and who
operates two or fewer distribution locations in Minnesota or elsewhere has been afforded
a reasonable opportunity to obtain financial assistance for bringing fuel-dispensing equipment
into conformance with standards of the United States Environmental Protection Agency
and rules adopted under sections 116.49 and 299F.011.
new text end

Sec. 4.

Minnesota Statutes 2020, section 239.791, subdivision 2b, is amended to read:

Subd. 2b.

Limited liability waiver.

No motor fuel shall be deemed to be a defective
product by virtue of the fact that the motor fuel is formulated or blended pursuant to the
requirements of subdivision 1 deleted text begin , paragraph (a), clause (1), item (ii), deleted text end under any theory of
liability except for simple or willful negligence or fraud. This subdivision does not preclude
an action for negligent, fraudulent, or willful acts. This subdivision does not affect a person
whose liability arises under chapter 115, water pollution control; 115A, waste management;
115B, environmental response and liability; 115C, leaking underground storage tanks; or
299J, pipeline safety; under public nuisance law for damage to the environment or the public
health; under any other environmental or public health law; or under any environmental or
public health ordinance or program of a municipality as defined in section 466.01.

Sec. 5.

Minnesota Statutes 2020, section 239.791, subdivision 2c, is amended to read:

Subd. 2c.

deleted text begin Fuel dispensing equipment deleted text end new text begin Fuel-dispensing labeling new text end ; blends over ten
percent ethanol.

deleted text begin Notwithstanding any other law or rule, fuel dispensing equipment
authorized to dispense fuel under subdivision 1, paragraph (a), clause (1), is authorized to
dispense fuel under subdivision 1, paragraph (a), clause (2), or subdivision 1a. deleted text end new text begin Equipment
dispensing gasoline and conventional biofuel blends under subdivision 1, paragraph (a),
clause (2), must be labeled according to Code of Federal Regulations, title 40, section
1090.1510.
new text end

Sec. 6.

Minnesota Statutes 2020, section 239.791, subdivision 15, is amended to read:

Subd. 15.

Exemption for certain blend pumps.

(a) new text begin If subdivision 1, paragraph (a),
clause (1), is in effect, new text end a person responsible for the product, who offers for sale, sells, or
dispenses nonoxygenated premium gasoline under one or more of the exemptions in
subdivisions 10 to 14, may sell, offer for sale, or dispense oxygenated gasoline that contains
less than the minimum amount of ethanol required under subdivision 1 new text begin , paragraph (a), clause
(1), new text end if all of the following conditions are met:

(1) the blended gasoline has an octane rating of 88 or greater;

(2) the gasoline is a blend of oxygenated gasoline meeting the requirements of subdivision
1 new text begin , paragraph (a), clause (1), new text end with nonoxygenated premium gasoline;

(3) the blended gasoline contains not more than ten percent nonoxygenated premium
gasoline;

(4) the blending of oxygenated gasoline with nonoxygenated gasoline occurs within the
gasoline dispenser; and

(5) the gasoline station at which the gasoline is sold, offered for sale, or delivered is
equipped to store gasoline in not more than two storage tanks.

(b) This subdivision applies only to those persons who met the conditions in paragraph
(a), clauses (1) through (5), on August 1, 2004, and registered with the director by November
1, 2004.

Sec. 7.

Minnesota Statutes 2020, section 239.791, is amended by adding a subdivision to
read:

new text begin Subd. 17. new text end

new text begin Exemption for vehicles not approved to use more than ten percent
biofuel. new text end

new text begin A person responsible for the product who offers for sale or sells gasoline and
conventional biofuel blends at retail may provide one dispenser dispensing a gasoline and
conventional biofuel blend containing 9.2 to ten percent conventional biofuel for use by
motorists who cannot lawfully use a gasoline and biofuel blend containing more than ten
percent biofuel pursuant to waivers granted by the United States Environmental Protection
Agency under United States Code, title 42, section 7545. Dispensers dispensing the blend
allowed under this subdivision must be labeled "INTENDED FOR USE IN 2000 AND
OLDER PASSENGER VEHICLES." The label must be positioned to clearly identify the
control for selecting this product. Labeling under this subdivision is not required for
exemptions under subdivision 18.
new text end

Sec. 8.

Minnesota Statutes 2020, section 239.791, is amended by adding a subdivision to
read:

new text begin Subd. 18. new text end

new text begin Persons exempt from higher blending requirements; new fuel storage,
handling, and dispensing equipment. new text end

new text begin A distributor who distributes or sells petroleum
products in Minnesota and who operates two or fewer distribution locations in Minnesota
or elsewhere may sell gasoline and conventional biofuel blends containing 9.2 to ten percent
conventional biofuel at distribution locations that do not have fuel-dispensing equipment
capable of dispensing and storing gasoline containing the conventional biofuel content in
subdivision 1 in conformance with standards of the United States Environmental Protection
Agency and rules adopted under sections 116.49 and 299F.011. This exemption does not
apply to distribution locations with fuel-dispensing equipment that have fuel-dispensing
equipment capable of dispensing and storing gasoline containing the conventional biofuel
content in subdivision 1 in conformance with standards of the United States Environmental
Protection Agency and rules adopted under sections 116.49 and 299F.011.
new text end

Sec. 9. new text begin RULEMAKING REQUIRED.
new text end

new text begin The commissioners of commerce and the Pollution Control Agency must promulgate
the rules required under this act as provided in Minnesota Statutes, chapter 14.
new text end