1.1                          A bill for an act 
  1.2             relating to motor fuels; establishing testing and 
  1.3             inspection criteria for liquefied petroleum 
  1.4             gas-measuring equipment; increasing petroleum 
  1.5             inspection fee and appropriating money from that 
  1.6             increase; regulating oxygenated, nonoxygenated, and 
  1.7             blended gasolines; abolishing a fee and certain 
  1.8             requirements and powers of Department of Commerce 
  1.9             relating to utility measuring equipment; amending 
  1.10            Minnesota Statutes 2002, sections 239.011, by adding a 
  1.11            subdivision; 239.101, subdivision 3; 239.791, 
  1.12            subdivision 12, by adding a subdivision; repealing 
  1.13            Minnesota Statutes 2002, sections 239.12; 239.25. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  Minnesota Statutes 2002, section 239.011, is 
  1.16  amended by adding a subdivision to read: 
  1.17     Subd. 3.  [LIQUEFIED PETROLEUM GAS.] (a) The annual testing 
  1.18  and inspection requirements for liquefied petroleum gas 
  1.19  measuring equipment, as set forth in section 239.10, subdivision 
  1.20  3, shall be deemed to have been met by an owner or seller who 
  1.21  has testing and inspection performed annually in compliance with 
  1.22  this subdivision.  The testing and inspection must meet the 
  1.23  following requirements: 
  1.24     (1) all equipment subject to inspection and testing 
  1.25  requirements must be inspected and tested annually; 
  1.26     (2) inspection testing must only be done by persons who 
  1.27  have demonstrated to the director that they are competent to 
  1.28  inspect and test liquefied petroleum gas measuring equipment.  
  1.29  Competency may be established by passage of a competency 
  2.1   examination, which the director must establish, or by other 
  2.2   recognized credentialing processes approved by the director.  
  2.3   Persons taking tests established by the director may be charged 
  2.4   for the costs of the testing procedure; 
  2.5      (3) testing and inspection procedures must comply with 
  2.6   inspection protocol, which must be established by the director.  
  2.7   The director may use existing protocol or recognize any other 
  2.8   scientifically established and recognized protocol; 
  2.9      (4) persons who inspect or test liquefied petroleum gas 
  2.10  measuring equipment must use testing equipment that meets any 
  2.11  specifications issued by the director; 
  2.12     (5) equipment used for testing and inspection must be 
  2.13  submitted to the director for calibration by the division 
  2.14  whenever ordered by the director; and 
  2.15     (6) all inspectors, equipment, and inspection protocol must 
  2.16  comply with all relevant requirements of Minnesota Statutes, 
  2.17  department rules, and written procedures issued by the director. 
  2.18     (b) Owners or sellers of liquefied petroleum gas may 
  2.19  perform their own tests and inspections or have employees do so 
  2.20  as long as they meet the requirements of this subdivision.  
  2.21  Persons performing inspection and testing may also perform 
  2.22  repairs and maintenance on inspected equipment if authorized by 
  2.23  the owner.  However, they shall not be allowed to take equipment 
  2.24  out of service.  
  2.25     (c) Inspectors shall tag meters that fail the testing 
  2.26  process as "out of tolerance."  For equipment that has passed 
  2.27  inspection, the inspector shall provide to the owner or seller a 
  2.28  seal indicating that the equipment has been inspected and the 
  2.29  date of the inspection.  Whenever an inspector issues a seal to 
  2.30  an owner or seller, the inspector shall submit to the director 
  2.31  written verification that the equipment was tested by procedures 
  2.32  and testing equipment meeting the requirements of this 
  2.33  subdivision.  The director shall issue seals (stickers) to 
  2.34  inspectors for the purposes of this subdivision.  The issuance 
  2.35  of a seal to an owner or seller establishes only that the 
  2.36  equipment was inspected by a certified inspector using qualified 
  3.1   equipment and procedures, and that the equipment was found to be 
  3.2   within allowable tolerance on the date tested.  
  3.3      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  3.4   following final enactment. 
  3.5      Sec. 2.  Minnesota Statutes 2002, section 239.101, 
  3.6   subdivision 3, is amended to read: 
  3.7      Subd. 3.  [PETROLEUM INSPECTION FEE.] (a) An inspection fee 
  3.8   is imposed (1) on petroleum products when received by the first 
  3.9   licensed distributor, and (2) on petroleum products received and 
  3.10  held for sale or use by any person when the petroleum products 
  3.11  have not previously been received by a licensed distributor.  
  3.12  The petroleum inspection fee is 85 cents $1 for every 1,000 
  3.13  gallons received.  The commissioner of revenue shall collect the 
  3.14  fee.  The revenue from the fee must first be applied to cover 
  3.15  the amounts appropriated.  Fifteen cents of the inspection fee 
  3.16  must be deposited in an account in the special revenue fund and 
  3.17  is appropriated to the commissioner of commerce for the cost of 
  3.18  petroleum product quality inspection expenses, and for the 
  3.19  inspection and testing of petroleum product measuring equipment, 
  3.20  and for petroleum supply monitoring under chapter 216C.  The 
  3.21  remainder of the fee must be deposited in the general fund. 
  3.22     (b) The commissioner of revenue shall credit a person for 
  3.23  inspection fees previously paid in error or for any material 
  3.24  exported or sold for export from the state upon filing of a 
  3.25  report as prescribed by the commissioner of revenue. 
  3.26     (c) The commissioner of revenue may collect the inspection 
  3.27  fee along with any taxes due under chapter 296A. 
  3.28     Sec. 3.  Minnesota Statutes 2002, section 239.791, 
  3.29  subdivision 12, is amended to read: 
  3.30     Subd. 12.  [EXEMPTION FOR COLLECTOR VEHICLE AND OFF-ROAD 
  3.31  USE.] (a) A person responsible for the product may offer for 
  3.32  sale, sell, or dispense at a retail gasoline station for use in 
  3.33  collector vehicles or vehicles eligible to be licensed as 
  3.34  collector vehicles, off-road vehicles, motorcycles, boats, 
  3.35  snowmobiles, or small engines, gasoline that is not oxygenated 
  3.36  in accordance with subdivision 1 if the person meets the 
  4.1   conditions in paragraphs (b) to (e).  If the nonoxygenated 
  4.2   gasoline is for use in a small engine, it must be dispensed into 
  4.3   a can with a capacity of six or fewer gallons. 
  4.4      (b) The nonoxygenated gasoline must be unleaded premium 
  4.5   grade as defined in section 239.751, subdivision 4. 
  4.6      (c) No more than one storage tank on the premises of the 
  4.7   retail gasoline station may be used for storage of the 
  4.8   nonoxygenated gasoline offered for sale, sold, or dispensed by 
  4.9   the station. 
  4.10     (d) The pump stands must be posted with a permanent notice 
  4.11  stating:  "NONOXYGENATED GASOLINE.  FOR USE IN COLLECTOR 
  4.12  VEHICLES OR VEHICLES ELIGIBLE TO BE LICENSED AS COLLECTOR 
  4.13  VEHICLES, OFF-ROAD VEHICLES, MOTORCYCLES, BOATS, SNOWMOBILES, OR 
  4.14  SMALL ENGINES ONLY." 
  4.15     (e) For a retail gasoline station located in the county of 
  4.16  Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, 
  4.17  Washington, or Wright, a person responsible for the product must 
  4.18  annually register with the director, on forms provided by the 
  4.19  director, an intent to sell nonoxygenated gasoline during the 
  4.20  period of October 1 through January 31.  Such person must 
  4.21  register on or before August 1 of each year, and must report to 
  4.22  the director before April 1 of the following year the total 
  4.23  number of gallons of nonoxygenated premium grade gasoline sold 
  4.24  during the period of October 1 through January 31.  Data 
  4.25  submitted to the department under this paragraph shall be 
  4.26  considered nonpublic data as defined in section 13.02, 
  4.27  subdivision 13.  This notice must be posted at least two feet 
  4.28  above the ground.  A retail gasoline station that sells 
  4.29  nonoxygenated premium gasoline as defined in section 239.791, 
  4.30  subdivision 15, must register every two years with the director, 
  4.31  or an entity appointed by the director, on forms approved by the 
  4.32  director, the total amount of nonoxygenated premium gasoline 
  4.33  sold annually. 
  4.34     Sec. 4.  Minnesota Statutes 2002, section 239.791, is 
  4.35  amended by adding a subdivision to read: 
  4.36     Subd. 15.  [EXEMPTION FOR CERTAIN BLEND PUMPS.] A person 
  5.1   responsible for the product, who offers for sale, sells, or 
  5.2   dispenses nonoxygenated premium gasoline under one or more of 
  5.3   the exemptions in subdivisions 10 to 14, may sell, offer for 
  5.4   sale, or dispense oxygenated gasoline that contains less than 
  5.5   the minimum amount of ethanol required under subdivision 1 if 
  5.6   all of the following conditions are met: 
  5.7      (1) the blended gasoline has an octane rating of 88 or 
  5.8   greater; 
  5.9      (2) the gasoline is a blend of oxygenated gasoline meeting 
  5.10  the requirements of subdivision 1 with nonoxygenated premium 
  5.11  gasoline; 
  5.12     (3) the blended gasoline contains not more than ten percent 
  5.13  nonoxygenated premium gasoline; 
  5.14     (4) the blending of oxygenated gasoline with nonoxygenated 
  5.15  gasoline occurs within the gasoline dispenser; and 
  5.16     (5) the gasoline station at which the gasoline is sold, 
  5.17  offered for sale, or delivered is equipped to store gasoline in 
  5.18  not more than two storage tanks.  
  5.19     This subdivision applies only to those persons who meet the 
  5.20  conditions in clauses (1) through (5) on the effective date of 
  5.21  this act and have registered with the director within three 
  5.22  months of the effective date of this act. 
  5.23     Sec. 5.  [REPEALER.] 
  5.24     Minnesota Statutes 2002, sections 239.12 and 239.25, are 
  5.25  repealed.