1.1                          A bill for an act 
  1.2             relating to motor fuels; requiring certain diesel fuel 
  1.3             contain a minimum percentage of biodiesel fuel oil; 
  1.4             requiring a study and report; proposing coding for new 
  1.5             law in Minnesota Statutes, chapter 239. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [239.77] [BIODIESEL FUEL CONTENT.] 
  1.8      Subdivision 1.  [BIODIESEL FUEL OIL.] "Biodiesel fuel oil" 
  1.9   means a nontoxic, biodegradable, combustible mono alkyl ester 
  1.10  liquid fuel derived from vegetable oil, recycled cooking oil, 
  1.11  tallow, animal fat, or a combination of them that meets ASTM 
  1.12  specification PS 121-99 and is suitable for blending with 
  1.13  petroleum diesel fuel for use in internal combustion piston 
  1.14  diesel engines.  
  1.15     Subd. 2.  [BIODIESEL FUEL USE IN STATE FLEET.] Beginning 
  1.16  July 1, 2002, all fuel consumed in Minnesota in 
  1.17  diesel-engine-powered vehicles owned or operated by state 
  1.18  agencies and departments must contain not less than 2.0 percent 
  1.19  biodiesel fuel oil.  
  1.20     Subd. 3.  [MINIMUM BIODIESEL CONTENT, EFFECTIVE DATES; 
  1.21  EXCEPTION.] (a) Beginning July 1, 2003, or 60 days after the 
  1.22  commissioner of agriculture publishes notice in the State 
  1.23  Register that the installed capacity in Minnesota for the 
  1.24  production of biodiesel fuel oil meets or exceeds 1.0 percent of 
  1.25  the quantity of diesel fuel sold in the state during the 
  2.1   previous calendar year, whichever date is later, all diesel fuel 
  2.2   sold or offered for sale in Minnesota for use in internal 
  2.3   combustion piston engines must contain at least 2.0 percent 
  2.4   biodiesel fuel oil by volume. 
  2.5      (b) Beginning July 1, 2006, or 60 days after the 
  2.6   commissioner of agriculture publishes notice in the State 
  2.7   Register that Minnesota farmer-owned capacity in Minnesota for 
  2.8   the production of biodiesel fuel oil meets or exceeds 2.5 
  2.9   percent of the quantity of diesel fuel sold in the state during 
  2.10  the previous calendar year, whichever date is later, all diesel 
  2.11  fuel sold or offered for sale in Minnesota for use in internal 
  2.12  combustion piston engines must contain at least 5.0 percent 
  2.13  biodiesel fuel oil by volume.  For purposes of this paragraph, 
  2.14  "Minnesota farmer-owned" means that persons with 51 percent or 
  2.15  more of the financial and capital investment and control in the 
  2.16  processing enterprise are farmers, as defined in section 500.24, 
  2.17  subdivision 2, paragraph (n), residing in Minnesota. 
  2.18     Subd. 4.  [EXCEPTION.] The minimum content requirements of 
  2.19  subdivision 3 do not apply to fuel used in motors located at an 
  2.20  electric generating plant in the state regulated by the federal 
  2.21  Nuclear Regulatory Commission.  This exemption expires 30 days 
  2.22  after the Nuclear Regulatory Commission has approved the use of 
  2.23  biodiesel fuel in such motors.  
  2.24     Sec. 2.  [BIODIESEL TANK AVAILABILITY STUDY; REPORT.] 
  2.25     Not later than February 15, 2003, the commissioner of 
  2.26  commerce shall report to the appropriate standing committees of 
  2.27  the senate and house of representatives the results of a study 
  2.28  to determine the current availability of multiple diesel fuel 
  2.29  storage tanks on the premises of diesel fuel retailers in the 
  2.30  state.  The study must pay particular attention to the questions 
  2.31  of whether diesel fuel retailers maintain separate storage 
  2.32  capacity primarily for purposes of having Number 1 diesel fuel 
  2.33  available during the coldest months of the winter, and whether 
  2.34  the tanks would be appropriate for storing and dispensing 
  2.35  blended biodiesel fuel during warmer months of the year.