<div class="xtend">
         <div class="xtend_ce"><a id="pl.1.1"></a><var>1.1</var>A bill for an act<br />
            		
         </div><a id="pl.1.2"></a><var>1.2</var>relating to energy; establishing standard to reduce carbon intensity of <br />
         		<a id="pl.1.3"></a><var>1.3</var>transportation fuels;proposing coding for new law in Minnesota Statutes, <br />
         		<a id="pl.1.4"></a><var>1.4</var>chapter 239.<br />
         		<a id="pl.1.5"></a><var>1.5</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br />
         		<br />
         		<a id="bill.0.1.0"></a><a id="pl.1.6"></a><var>1.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. <b>[239.765] DEFINITIONS.</b><br />
         		<a id="pl.1.7"></a><var>1.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Scope.</b> For the purposes of sections 239.765 and 239.766, the terms <br />
         		<a id="pl.1.8"></a><var>1.8</var>defined in this section have the meanings given them.<br />
         		<a id="pl.1.9"></a><var>1.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Carbon dioxide equivalent.</b> "Carbon dioxide equivalent" has the meaning <br />
         		<a id="pl.1.10"></a><var>1.10</var>given in section 216H.10, subdivision 3.<br />
         		<a id="pl.1.11"></a><var>1.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Carbon intensity.</b> "Carbon intensity" means the quantity of carbon dioxide <br />
         		<a id="pl.1.12"></a><var>1.12</var>or carbon dioxide equivalent emissions per BTU of transportation fuel sold in this state, <br />
         		<a id="pl.1.13"></a><var>1.13</var>measured on a life cycle basis.<br />
         		<a id="pl.1.14"></a><var>1.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Commissioner.</b> "Commissioner" means the commissioner of commerce.<br />
         		<a id="pl.1.15"></a><var>1.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Indirect carbon inputs.</b> "Indirect carbon inputs" means an additional <br />
         		<a id="pl.1.16"></a><var>1.16</var>value added to a transportation fuel's carbon intensity that measures increased greenhouse <br />
         		<a id="pl.1.17"></a><var>1.17</var>gas emissions released as a result of general market forces that is not part of a specific <br />
         		<a id="pl.1.18"></a><var>1.18</var>fuel supply chain.<br />
         		<a id="pl.1.19"></a><var>1.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Motor vehicle.</b> "Motor vehicle" means a vehicle that is self-propelled <br />
         		<a id="pl.1.20"></a><var>1.20</var>and designed for use on public highways.<br />
         		<a id="pl.1.21"></a><var>1.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Renewable transportation fuel producer.</b> "Renewable transportation <br />
         		<a id="pl.1.22"></a><var>1.22</var>fuel producer" means a manufacturer or producer of ethanol or biodiesel. "Renewable <br />
         		<a id="pl.1.23"></a><var>1.23</var>transportation fuel producer" includes a manufacturer or producer of transportation fuel <br />
         		<a id="pl.1.24"></a><var>1.24</var>that is not a "responsible party" under subdivision 8.<br />
         		<a id="pl.2.1"></a><var>2.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Responsible party.</b> "Responsible party" means a person who refines, <br />
         		<a id="pl.2.2"></a><var>2.2</var>produces, blends, or imports transportation fuel for sale in this state who:<br />
         		<a id="pl.2.3"></a><var>2.3</var>(1) receives petroleum products in this state for storage and subsequent distribution <br />
         		<a id="pl.2.4"></a><var>2.4</var>by tank car or tank truck;<br />
         		<a id="pl.2.5"></a><var>2.5</var>(2) produces, manufactures, or refines petroleum products for sale in this state; or<br />
         		<a id="pl.2.6"></a><var>2.6</var>(3) imports petroleum products via boat, barge, truck, or pipeline into this state for <br />
         		<a id="pl.2.7"></a><var>2.7</var>sale within the state for storage and subsequent delivery or further transportation from <br />
         		<a id="pl.2.8"></a><var>2.8</var>boat, barge, truck, or pipeline terminals in this state.<br />
         		<a id="pl.2.9"></a><var>2.9</var>Responsible party does not include a retailer or renewable transportation fuel <br />
         		<a id="pl.2.10"></a><var>2.10</var>producer.<br />
         		<a id="pl.2.11"></a><var>2.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 9. <b>Transportation fuel.</b> "Transportation fuel" means a fuel used to propel a <br />
         		<a id="pl.2.12"></a><var>2.12</var>motor vehicle.<br />
         		<br />
         		<a id="bill.0.2.0"></a><a id="pl.2.13"></a><var>2.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. <b>[239.766] LOW-CARBON TRANSPORTATION FUEL REDUCTION </b><br />
         		<a id="pl.2.14"></a><var>2.14</var><b>STANDARD.</b><br />
         		<a id="pl.2.15"></a><var>2.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Reduction standard.</b> (a) Between 2011 and the end of 2020, a <br />
         		<a id="pl.2.16"></a><var>2.16</var>responsible party shall reduce the carbon intensity of transportation fuels it produces, <br />
         		<a id="pl.2.17"></a><var>2.17</var>refines, blends, or imports for sale in this state by at least ten percent, measured from a <br />
         		<a id="pl.2.18"></a><var>2.18</var>2005 baseline. The reduction must be measured by using the applicable carbon intensity <br />
         		<a id="pl.2.19"></a><var>2.19</var>value of a responsible party for a particular transportation fuel that is set by law, by a rule <br />
         		<a id="pl.2.20"></a><var>2.20</var>specifically adopted pursuant to this section, or by a determination of the commissioner <br />
         		<a id="pl.2.21"></a><var>2.21</var>under paragraph (b). The reduction must be at least one percent annually, unless the <br />
         		<a id="pl.2.22"></a><var>2.22</var>commissioner has approved an alternative compliance schedule under paragraph (b) or <br />
         		<a id="pl.2.23"></a><var>2.23</var>granted a delay under subdivision 2.<br />
         		<a id="pl.2.24"></a><var>2.24</var>(b) A responsible party may petition the commissioner to approve an alternative <br />
         		<a id="pl.2.25"></a><var>2.25</var>compliance schedule from the schedule described in paragraph (a).  The commissioner <br />
         		<a id="pl.2.26"></a><var>2.26</var>shall, after notice and hearing, approve an alternative compliance schedule if the <br />
         		<a id="pl.2.27"></a><var>2.27</var>responsible party demonstrates that the public interest is served by an alternative schedule.<br />
         		<a id="pl.2.28"></a><var>2.28</var>(c) A responsible party may use any method to achieve compliance with the <br />
         		<a id="pl.2.29"></a><var>2.29</var>reduction standard, including, but not limited to:<br />
         		<a id="pl.2.30"></a><var>2.30</var>(1) blending high-carbon intensity fuels with low-carbon intensity fuels; or<br />
         		<a id="pl.2.31"></a><var>2.31</var>(2) changing production processes, extraction methods, and other activities that <br />
         		<a id="pl.2.32"></a><var>2.32</var>reduce carbon intensity.<br />
         		<a id="pl.2.33"></a><var>2.33</var>(d) The commissioner shall advise and assist responsible parties and others regarding <br />
         		<a id="pl.2.34"></a><var>2.34</var>methods to achieve the reduction standard.<br />
         		<a id="pl.3.1"></a><var>3.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Delayed compliance with reduction standard.</b> (a) A responsible <br />
         		<a id="pl.3.2"></a><var>3.2</var>party may petition the commissioner at any time to delay the responsible party's <br />
         		<a id="pl.3.3"></a><var>3.3</var>required compliance with the reduction standard established under subdivision 1. The <br />
         		<a id="pl.3.4"></a><var>3.4</var>commissioner may, after notice and hearing, grant a delay to a responsible party from <br />
         		<a id="pl.3.5"></a><var>3.5</var>compliance with a reduction standard if the commissioner determines that meeting the <br />
         		<a id="pl.3.6"></a><var>3.6</var>reduction standard:<br />
         		<a id="pl.3.7"></a><var>3.7</var>(1) is not achievable as a result of the federal government's failure to grant a waiver <br />
         		<a id="pl.3.8"></a><var>3.8</var>for E-20 gasoline;<br />
         		<a id="pl.3.9"></a><var>3.9</var>(2) will itself cause an increase in renewable fuel costs exceeding five cents per <br />
         		<a id="pl.3.10"></a><var>3.10</var>gallon; or<br />
         		<a id="pl.3.11"></a><var>3.11</var>(3) is not achievable as a result of inadequate supplies of lower carbon intensity <br />
         		<a id="pl.3.12"></a><var>3.12</var>transportation fuels.<br />
         		<a id="pl.3.13"></a><var>3.13</var>(b) A responsible party may not be penalized for failing to meet its reduction <br />
         		<a id="pl.3.14"></a><var>3.14</var>standard to the extent that the commissioner grants a delay under this subdivision.<br />
         		<a id="pl.3.15"></a><var>3.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Carbon intensity values.</b> Unless a different carbon intensity value is <br />
         		<a id="pl.3.16"></a><var>3.16</var>established by the commissioner under subdivision 4, the commissioner shall use the <br />
         		<a id="pl.3.17"></a><var>3.17</var>following carbon intensity values to determine compliance with the reduction standard <br />
         		<a id="pl.3.18"></a><var>3.18</var>established under subdivision 1.<br />
         		
         <table>
            <col width="50px"></col>
            <col width=""></col>
            <col width=""></col>
            <tr>
               <td><a id="pl.3.19"></a><var>3.19</var><br />
                  		
               </td>
               <td><b>Transportation Fuel</b><br />
                  		
               </td>
               <td><b>Carbon Intensity Value</b><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.3.20"></a><var>3.20</var><br />
                  		
               </td>
               <td>Gasoline<br />
                  		
               </td>
               <td>1.00<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.3.21"></a><var>3.21</var><br />
                  		
               </td>
               <td>Diesel<br />
                  		
               </td>
               <td>0.99<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.3.22"></a><var>3.22</var><br />
                  		
               </td>
               <td>Corn ethanol (natural gas/coal fired blend)<br />
                  		
               </td>
               <td>0.77<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.3.23"></a><var>3.23</var><br />
                  		
               </td>
               <td>Corn ethanol (biomass fired)<br />
                  		
               </td>
               <td>0.56<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.3.24"></a><var>3.24</var><br />
                  		
               </td>
               <td>Cellulosic ethanol<br />
                  		
               </td>
               <td>0.12<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.3.25"></a><var>3.25</var><br />
                  		
               </td>
               <td>Biodiesel<br />
                  		
               </td>
               <td>0.35<br />
                  		
               </td>
            </tr>
         </table><a id="pl.3.26"></a><var>3.26</var>The commissioner shall use the carbon intensity value for the mix of transportation <br />
         		<a id="pl.3.27"></a><var>3.27</var>fuels refined, blended, produced, and imported by a responsible party or renewable <br />
         		<a id="pl.3.28"></a><var>3.28</var>transportation fuel producer in 2005 as the baseline against which to measure changes in <br />
         		<a id="pl.3.29"></a><var>3.29</var>carbon intensity in order to determine compliance with the reduction standard.<br />
         		<a id="pl.3.30"></a><var>3.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Alternative carbon intensity value.</b> A responsible party or renewable <br />
         		<a id="pl.3.31"></a><var>3.31</var>transportation fuel producer may propose to the commissioner a carbon intensity value <br />
         		<a id="pl.3.32"></a><var>3.32</var>for a transportation fuel it produces, blends, or imports that differs from the value <br />
         		<a id="pl.3.33"></a><var>3.33</var>established in subdivision 3. A responsible party or renewable transportation fuel producer <br />
         		<a id="pl.3.34"></a><var>3.34</var>proposing a different carbon intensity value must demonstrate by a preponderance of <br />
         		<a id="pl.3.35"></a><var>3.35</var>scientific evidence that the value established in subdivision 3 is not appropriate. If the <br />
         		<a id="pl.3.36"></a><var>3.36</var>commissioner, after notice and hearing and consultation with the commissioners of <br />
         		<a id="pl.3.37"></a><var>3.37</var>agriculture and the Pollution Control Agency, determines that the value established in <br />
         		<a id="pl.4.1"></a><var>4.1</var>subdivision 3 is not appropriate, the commissioner shall establish a different value for <br />
         		<a id="pl.4.2"></a><var>4.2</var>the transportation fuel based on evidence in the hearing record. A responsible party or <br />
         		<a id="pl.4.3"></a><var>4.3</var>renewable transportation fuel producer proposing a different carbon intensity value <br />
         		<a id="pl.4.4"></a><var>4.4</var>is presumed to have demonstrated that the value established in subdivision 3 is not <br />
         		<a id="pl.4.5"></a><var>4.5</var>appropriate if it proposes an alternative carbon intensity value calculated by applying the <br />
         		<a id="pl.4.6"></a><var>4.6</var>"Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation" (GREET) <br />
         		<a id="pl.4.7"></a><var>4.7</var>model developed by the Argonne National Laboratory.<br />
         		<a id="pl.4.8"></a><var>4.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Modifying carbon intensity values.</b> The commissioner may, after June 30, <br />
         		<a id="pl.4.9"></a><var>4.9</var>2011, propose to the legislature that a carbon intensity value of a transportation fuel listed <br />
         		<a id="pl.4.10"></a><var>4.10</var>in subdivision 3 be amended to incorporate indirect carbon inputs if the commissioner, <br />
         		<a id="pl.4.11"></a><var>4.11</var>after consultation with (1) scientific authorities, including, but not limited to, Argonne <br />
         		<a id="pl.4.12"></a><var>4.12</var>National Laboratory and Oak Ridge National Laboratory; (2) academic consultants <br />
         		<a id="pl.4.13"></a><var>4.13</var>from agriculture research institutions, including the University of Minnesota, Iowa State <br />
         		<a id="pl.4.14"></a><var>4.14</var>University, Michigan State University, and the University of Nebraska; and (3) the <br />
         		<a id="pl.4.15"></a><var>4.15</var>commissioners of agriculture and the Pollution Control Agency, determines that reliable <br />
         		<a id="pl.4.16"></a><var>4.16</var>and consistent estimates of indirect carbon inputs can be developed through analytically <br />
         		<a id="pl.4.17"></a><var>4.17</var>rigorous methods for all transportation fuels listed in subdivision 3. The commissioner <br />
         		<a id="pl.4.18"></a><var>4.18</var>shall report the results of the consultations, and any recommendations for changes to <br />
         		<a id="pl.4.19"></a><var>4.19</var>carbon intensity values in subdivision 3, to the chairs and ranking minority members of <br />
         		<a id="pl.4.20"></a><var>4.20</var>the legislative committees with primary jurisdiction over energy, environmental, and <br />
         		<a id="pl.4.21"></a><var>4.21</var>agricultural policy.<br />
         		<a id="pl.4.22"></a><var>4.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Reporting.</b> Beginning January 15, 2011, and each year thereafter through <br />
         		<a id="pl.4.23"></a><var>4.23</var>2020, a responsible party shall submit a report to the commissioner describing activities it <br />
         		<a id="pl.4.24"></a><var>4.24</var>has taken or plans to take in order to comply with the reduction standard established in this <br />
         		<a id="pl.4.25"></a><var>4.25</var>section. A responsible party shall report to the commissioner any information requested by <br />
         		<a id="pl.4.26"></a><var>4.26</var>the commissioner to assist the commissioner in determining whether compliance with the <br />
         		<a id="pl.4.27"></a><var>4.27</var>reduction standard of this section has been achieved.  Beginning in 2013, the commissioner <br />
         		<a id="pl.4.28"></a><var>4.28</var>may accept reports filed pursuant to other state and federal laws for purposes of compliance <br />
         		<a id="pl.4.29"></a><var>4.29</var>with this section to the extent those reports contain information required under this section.<br />
         		<a id="pl.4.30"></a><var>4.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Compliance; penalty.</b> A responsible party shall cooperate with the <br />
         		<a id="pl.4.31"></a><var>4.31</var>commissioner as requested in order to assist the commissioner in determining whether <br />
         		<a id="pl.4.32"></a><var>4.32</var>compliance with the reduction standard established under this section is being achieved. <br />
         		<a id="pl.4.33"></a><var>4.33</var>Beginning in 2014, a responsible party may be ordered to comply and fined an amount <br />
         		<a id="pl.4.34"></a><var>4.34</var>equal to the cost of achieving compliance.  The penalty may be imposed for each year the <br />
         		<a id="pl.4.35"></a><var>4.35</var>reduction standard is not achieved.  The commissioner shall consider the efforts of the <br />
         		<a id="pl.5.1"></a><var>5.1</var>responsible party to achieve the reduction standard in determining whether to impose a <br />
         		<a id="pl.5.2"></a><var>5.2</var>penalty and in determining the amount of a penalty.<br />
         		<a id="pl.5.3"></a><var>5.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Rules.</b> The commissioner shall, by December 10, 2010, adopt rules <br />
         		<a id="pl.5.4"></a><var>5.4</var>necessary to implement and administer this section.<br />
         		
      </div>