1.1 	A bill for an act
1.2 	relating to weights and measures; updating standards
1.3 	and making other technical changes to weights and
1.4 	measures provisions; delaying repeal of petroleum tank
1.5 	release cleanup provisions; authorizing Petroleum Tank
1.6 	Release Compensation Board to adopt rules for
1.7 	consultant services; appropriating revenue from
1.8 	inspection fee; amending Minnesota Statutes 2004,
1.9 	sections 41A.09, subdivision 2a; 115C.07, subdivision
1.10 	3; 115C.13; 239.011, subdivision 2; 239.05,
1.11 	subdivision 10b, by adding a subdivision; 239.09;
1.12 	239.101, subdivision 3; 239.75, subdivisions 1, 5;
1.13 	239.761; 239.77, by adding a subdivision; 239.79,
1.14 	subdivision 4; 239.791, subdivisions 1, 7, 8, 15;
1.15 	239.792; 296A.01, subdivisions 2, 7, 8, 14, 19, 20,
1.16 	22, 23, 24, 25, 26, 28; repealing Minnesota Statutes
1.17 	2004, section 239.05, subdivisions 6a, 6b.
1.18 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.19 	Section 1. Minnesota Statutes 2004, section 41A.09,
1.20 	subdivision 2a, is amended to read:
1.21 		Subd. 2a.Definitions.  For the purposes of this section,
1.22 	the terms defined in this subdivision have the meanings given
1.23 	them.
1.24 	(a) "Ethanol" means fermentation ethyl alcohol derived from
1.25 	agricultural products, including potatoes, cereal grains, cheese
1.26 	whey, and sugar beets; forest products; or other renewable
1.27 	resources, including residue and waste generated from the
1.28 	production, processing, and marketing of agricultural products,
1.29 	forest products, and other renewable resources, that:
1.30 	(1) meets all of the specifications in ASTM specification
1.31 	D4806-01 D4806-04a; and
2.1 	(2) is denatured as specified in Code of Federal
2.2 	Regulations, title 27, parts 20 and 21.
2.3 	(b) "Ethanol plant" means a plant at which ethanol is
2.4 	produced.
2.5 	(c) "Commissioner" means the commissioner of agriculture.

2.6 	Sec. 2. Minnesota Statutes 2004, section 115C.07,
2.7 	subdivision 3, is amended to read:
2.8 		Subd. 3.Rules.  (a) The board shall adopt rules
2.9 	regarding its practices and procedures, the form and procedure
2.10 	for applications for compensation from the fund, procedures for
2.11 	investigation of claims and specifying the costs that are
2.12 	eligible for reimbursement from the fund.
2.13 	(b) The board may adopt rules requiring certification of
2.14 	environmental consultants.
2.15 	(c) The board may adopt other rules necessary to implement
2.16 	this chapter.
2.17 	(d) The board may use section 14.389 to adopt rules
2.18 	specifying the competitive bidding requirements for consultant
2.19 	services proposals.
2.20 	(e) The board may use section 14.389 to adopt rules
2.21 	specifying the written proposal and invoice requirements for
2.22 	consultant services.

2.23 	Sec. 3. Minnesota Statutes 2004, section 115C.13, is
2.24 	amended to read:
2.25 	115C.13 REPEALER.
2.26 	Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04,
2.27 	115C.045, 115C.05, 115C.06, 115C.065, 115C.07, 115C.08, 115C.09,
2.28 	115C.093, 115C.094, 115C.10, 115C.11, 115C.111, 115C.112,
2.29 	115C.113, 115C.12, and 115C.13,are repealed effective June 30,
2.30 	2007 2012.

2.31 	Sec. 4. Minnesota Statutes 2004, section 239.011,
2.32 	subdivision 2, is amended to read:
2.33 		Subd. 2.Duties and powers.  To carry out the
2.34 	responsibilities in section 239.01 and subdivision 1, the
2.35 	director:
2.36 	(1) shall take charge of, keep, and maintain in good order
3.1 	the standard of weights and measures of the state and keep a
3.2 	seal so formed as to impress, when appropriate, the letters
3.3 	"MINN" and the date of sealing upon the weights and measures
3.4 	that are sealed;
3.5 	(2) has general supervision of the weights, measures, and
3.6 	weighing and measuring devices offered for sale, sold, or in use
3.7 	in the state;
3.8 	(3) shall maintain traceability of the state standards to
3.9 	the national standards of the National Institute of Standards
3.10 	and Technology;
3.11 	(4) shall enforce this chapter;
3.12 	(5) shall grant variances from department rules, within the
3.13 	limits set by rule, when appropriate to maintain good commercial
3.14 	practices or when enforcement of the rules would cause undue
3.15 	hardship;
3.16 	(6) shall conduct investigations to ensure compliance with
3.17 	this chapter;
3.18 	(7) may delegate to division personnel the
3.19 	responsibilities, duties, and powers contained in this section;
3.20 	(8) shall test annually, and approve when found to be
3.21 	correct, the standards of weights and measures used by the
3.22 	division, by a town, statutory or home rule charter city, or
3.23 	county within the state, or by a person using standards to
3.24 	repair, adjust, or calibrate commercial weights and measures;
3.25 	(9) shall inspect and test weights and measures kept,
3.26 	offered, or exposed for sale;
3.27 	(10) shall inspect and test, to ascertain if they are
3.28 	correct, weights and measures commercially used to:
3.29 	(i) determine the weight, measure, or count of commodities
3.30 	or things sold, offered, or exposed for sale, on the basis of
3.31 	weight, measure, or count; and
3.32 	(ii) compute the basic charge or payment for services
3.33 	rendered on the basis of weight, measure, or count;
3.34 	(11) shall approve for use and mark weights and measures
3.35 	that are found to be correct;
3.36 	(12) shall reject, and mark as rejected, weights and
4.1 	measures that are found to be incorrect and may seize them if
4.2 	those weights and measures:
4.3 	(i) are not corrected within the time specified by the
4.4 	director;
4.5 	(ii) are used or disposed of in a manner not specifically
4.6 	authorized by the director; or
4.7 	(iii) are found to be both incorrect and not capable of
4.8 	being made correct, in which case the director shall condemn
4.9 	those weights and measures;
4.10 	(13) shall weigh, measure, or inspect packaged commodities
4.11 	kept, offered, or exposed for sale, sold, or in the process of
4.12 	delivery, to determine whether they contain the amount
4.13 	represented and whether they are kept, offered, or exposed for
4.14 	sale in accordance with this chapter and department rules.  In
4.15 	carrying out this section, the director must employ recognized
4.16 	sampling procedures, such as those contained in National
4.17 	Institute of Standards and Technology Handbook 133, "Checking
4.18 	the Net Contents of Packaged Goods";
4.19 	(14) shall prescribe the appropriate term or unit of weight
4.20 	or measure to be used for a specific commodity when an existing
4.21 	term or declaration of quantity does not facilitate value
4.22 	comparisons by consumers, or creates an opportunity for consumer
4.23 	confusion;
4.24 	(15) shall allow reasonable variations from the stated
4.25 	quantity of contents, including variations caused by loss or
4.26 	gain of moisture during the course of good distribution practice
4.27 	or by unavoidable deviations in good manufacturing practice,
4.28 	only after the commodity has entered commerce within the state;
4.29 	(16) shall inspect and test petroleum products in
4.30 	accordance with this chapter and chapter 296A;
4.31 	(17) shall distribute and post notices for used motor oil
4.32 	and used motor oil filters and lead acid battery recycling in
4.33 	accordance with sections 239.54, 325E.11, and 325E.115;
4.34 	(18) shall collect inspection fees in accordance with
4.35 	sections 239.10 and 239.101; and
4.36 	(19) shall provide metrological services and support to
5.1 	businesses and individuals in the United States who wish to
5.2 	market products and services in the member nations of the
5.3 	European Economic Community, and other nations outside of the
5.4 	United States by:
5.5 	(i) meeting, to the extent practicable, the measurement
5.6 	quality assurance standards described in the International
5.7 	Standards Organization ISO 9000, Guide 25 17025;
5.8 	(ii) maintaining, to the extent practicable, certification
5.9 	of the metrology laboratory by a governing body appointed by the
5.10 	European Economic Community an internationally accepted
5.11 	accrediting body such as the National Voluntary Laboratory
5.12 	Accreditation Program (NVLAP); and
5.13 	(iii) providing calibration and consultation services to
5.14 	metrology laboratories in government and private industry in the
5.15 	United States.

5.16 	Sec. 5. Minnesota Statutes 2004, section 239.05, is
5.17 	amended by adding a subdivision to read:
5.18 		Subd. 3a.Automotive fuel. For the purpose of enforcing
5.19 	the gasoline octane requirements in section 239.792, "automotive
5.20 	fuel" has the meaning given it in Code of Federal Regulations,
5.21 	title 16, section 306.0.

5.22 	Sec. 6. Minnesota Statutes 2004, section 239.05,
5.23 	subdivision 10b, is amended to read:
5.24 		Subd. 10b.oxygenate ethanol blender.  " Oxygenate Ethanol 
5.25 	blender" means a person who has registered with the division to
5.26 	blend and distribute, transport, sell, or offer blends and
5.27 	distributes, transports, sells, or offers to sell gasoline
5.28 	containing a minimum of 2.0 percent, and an average of 2.7ten 
5.29 	percent oxygen ethanol by weight volume.

5.30 	Sec. 7. Minnesota Statutes 2004, section 239.09, is
5.31 	amended to read:
5.32 	239.09 SPECIAL POLICE POWERS.
5.33 	When necessary to enforce this chapter or rules adopted
5.34 	under the authority granted by section 239.06, the director is:
5.35 	(1) authorized and empowered to arrest, without formal
5.36 	warrant, any violator of sections 325E.11 and 325E.115 or of the
6.1 	statute in relation to weights and measures;
6.2 	(2) empowered to seize for use as evidence and without
6.3 	formal warrant, any false weight, measure, weighing or measuring
6.4 	device, package, or commodity found to be used, retained, or
6.5 	offered or exposed for sale or sold in violation of law;
6.6 	(3) during normal business hours, authorized to enter
6.7 	commercial premises;
6.8 	(4) if the premises are not open to the public, authorized
6.9 	to enter commercial premises only after presenting credentials
6.10 	and obtaining consent or after obtaining a search warrant;
6.11 	(5) empowered to issue stop-use, hold, and removal orders
6.12 	with respect to weights and measures commercially used, and
6.13 	packaged commodities or bulk commodities kept, offered, or
6.14 	exposed for sale, that do not comply with the weights and
6.15 	measures laws; and 
6.16 	(6) empowered, upon reasonable suspicion of a violation of
6.17 	the weights and measures laws, to stop a commercial vehicle and,
6.18 	after presentation of credentials, inspect the contents of the
6.19 	vehicle, require that the person in charge of the vehicle
6.20 	produce documents concerning the contents, and require the
6.21 	person to proceed with the vehicle to some specified place for
6.22 	inspection; and 
6.23 	(7) empowered, after written warning, to issue citations of
6.24 	not less than $100 and not more than $500 to a person who
6.25 	violates any provision of this chapter, any provision of the
6.26 	rules adopted under the authority contained in this chapter, or
6.27 	any provision of statutes enforced by the division of weights
6.28 	and measures.

6.29 	Sec. 8. Minnesota Statutes 2004, section 239.101,
6.30 	subdivision 3, is amended to read:
6.31 		Subd. 3.Petroleum inspection fee.  (a) An inspection fee
6.32 	is imposed (1) on petroleum products when received by the first
6.33 	licensed distributor, and (2) on petroleum products received and
6.34 	held for sale or use by any person when the petroleum products
6.35 	have not previously been received by a licensed distributor.
6.36 	The petroleum inspection fee is $1 for every 1,000 gallons
7.1 	received.  The commissioner of revenue shall collect the fee.
7.2 	The revenue from the fee must first be applied to cover the
7.3 	amounts appropriated.  Fifteen cents of the inspection fee must
7.4 	be deposited in an account in the special revenue fund and is
7.5 	appropriated to the commissioner of commerce for the cost of
7.6 	petroleum product quality inspection expenses and for the
7.7 	inspection and testing of petroleum product-measuring
7.8 	equipment.  The remainder of the fee must be deposited in the
7.9 	general fund operation of the Weights and Measures Division.
7.10 	(b) The commissioner of revenue shall credit a person for
7.11 	inspection fees previously paid in error or for any material
7.12 	exported or sold for export from the state upon filing of a
7.13 	report as prescribed by the commissioner of revenue.
7.14 	(c) The commissioner of revenue may collect the inspection
7.15 	fee along with any taxes due under chapter 296A.

7.16 	Sec. 9. Minnesota Statutes 2004, section 239.75,
7.17 	subdivision 1, is amended to read:
7.18 		Subdivision 1.Inspection to be made.  The director shall:
7.19 	(1) take samples, free of charge, of petroleum products
7.20 	wherever processed, blended, held, stored, imported,
7.21 	transferred, offered for sale or use, or sold in Minnesota,
7.22 	limiting each sample to:
7.23 	(i) two-tenths of one one-half gallon, except when an
7.24 	octane test is planned; or 
7.25 	(ii) seven-tenths of one gallon for an octane test;
7.26 	(2) inspect and test petroleum product samples according to
7.27 	the methods of ASTM or other valid test methods adopted by rule,
7.28 	to determine whether the products comply with the specifications
7.29 	in section 239.761;
7.30 	(3) inspect petroleum product storage tanks to ensure that
7.31 	the products are free from water and impurities;
7.32 	(4) inspect and test samples submitted to the department by
7.33 	a licensed distributor, making the test results available to the
7.34 	distributor;
7.35 	(5) inspect the labeling, price posting, and price
7.36 	advertising of petroleum product dispensers and advertising
8.1 	signs at businesses or locations where petroleum products are
8.2 	sold, offered for sale or use, or dispensed into motor vehicles;
8.3 	(6) maintain records of all inspections and tests according
8.4 	to the records retention policies of the Department of
8.5 	Administration;
8.6 	(7) delegate to division personnel, at the director's
8.7 	discretion, any or all of the responsibilities, duties, and
8.8 	powers in sections 239.75 to 239.80;
8.9 	(8) publish octane test data and information to assist
8.10 	persons who use,produce and , distribute, or sell gasoline and
8.11 	gasoline-oxygenate blends petroleum-based heating and engine
8.12 	fuels;
8.13 	(9) register gasoline-oxygenate blenders according to the
8.14 	requirements of the EPA;
8.15 	(10) audit the records of any person responsible for the
8.16 	product to determine compliance with sections 239.75 to 239.792;
8.17 	(11) (10) after consulting with the commissioner of the
8.18 	Pollution Control Agency, grant a temporary exemption from the
8.19 	oxygenated gasoline gasoline-ethanol blending requirements in
8.20 	section 239.791 if the supply of oxygenate ethanol is
8.21 	insufficient to produce gasoline-oxygenate gasoline-ethanol 
8.22 	blends during an EPA-designated carbon monoxide control period;
8.23 	and
8.24 	(12) (11) adopt, as an enforcement policy for the division,
8.25 	reasonable margins of uncertainty for the tests used to
8.26 	determine compliance with the specifications in section 239.761,
8.27 	the oxygen percentages in section 239.791, and the octane
8.28 	requirements in section 239.792 and apply the margins of
8.29 	uncertainty to only tests performed by the division, not by
8.30 	adding the margins to uncertainties in tests performed by any
8.31 	person responsible for the product.

8.32 	Sec. 10. Minnesota Statutes 2004, section 239.75,
8.33 	subdivision 5, is amended to read:
8.34 		Subd. 5.Product quality, responsibility.  After a
8.35 	gasoline product petroleum-based engine fuel is purchased,
8.36 	transferred, or otherwise removed from a refinery or terminal,
9.1 	the person responsible for the product shall:
9.2 	(1) keep the product free from contamination with water and
9.3 	impurities;
9.4 	(2) not blend the product with dissimilar petroleum
9.5 	products, for example, gasoline must not be blended with diesel
9.6 	fuel;
9.7 	(3) not blend the product with any contaminant, dye,
9.8 	chemical, or additive, except:
9.9 	(i) agriculturally derived, denatured ethanol that complies
9.10 	with the specifications in this chapter;
9.11 	(ii) an antiknock additive, or an additive designed to
9.12 	replace tetra-ethyl lead, that is registered by the EPA; or
9.13 	(iii) a dye to distinguish heating fuel from low sulfur
9.14 	diesel fuel; and
9.15 	(4) maintain a record of the name or chemical composition
9.16 	of the additive, with the product shipping manifest or bill of
9.17 	lading for one year after the date of the manifest or bill.

9.18 	Sec. 11. Minnesota Statutes 2004, section 239.761, is
9.19 	amended to read:
9.20 	239.761 PETROLEUM PRODUCT SPECIFICATIONS.
9.21 		Subdivision 1.Applicability. A person responsible for
9.22 	the product must meet the specifications in this section.  The
9.23 	specifications apply to petroleum products processed, held,
9.24 	stored, imported, transferred, distributed, offered for
9.25 	distribution, offered for sale or use, or sold in Minnesota.
9.26 		Subd. 2.Coordination with departments of revenue and
9.27 	agriculture. The petroleum product specifications in this
9.28 	section are intended to match the definitions and specifications
9.29 	in sections 41A.09 and 296A.01.  Petroleum products named in
9.30 	this section are defined in section 296A.01.
9.31 		Subd. 3.Gasoline. (a) Gasoline that is not blended with
9.32 	ethanol must not be contaminated with water or other impurities
9.33 	and must comply with ASTM specification D4814-01 D4814-04a.
9.34 	Gasoline that is not blended with ethanol must also comply with
9.35 	the volatility requirements in Code of Federal Regulations,
9.36 	title 40, part 80.
10.1 	(b) After gasoline is sold, transferred, or otherwise
10.2 	removed from a refinery or terminal, a person responsible for
10.3 	the product:
10.4 	(1) may blend the gasoline with agriculturally derived
10.5 	ethanol as provided in subdivision 4;
10.6 	(2) shall not blend the gasoline with any oxygenate other
10.7 	than denatured, agriculturally derived ethanol;
10.8 	(3) shall not blend the gasoline with other petroleum
10.9 	products that are not gasoline or denatured, agriculturally
10.10 	derived ethanol;
10.11 	(4) shall not blend the gasoline with products commonly and
10.12 	commercially known as casinghead gasoline, absorption gasoline,
10.13 	condensation gasoline, drip gasoline, or natural gasoline; and
10.14 	(5) may blend the gasoline with a detergent additive, an
10.15 	antiknock additive, or an additive designed to replace
10.16 	tetra-ethyl lead, that is registered by the EPA.
10.17 		Subd. 4.Gasoline blended with ethanol. (a) Gasoline may
10.18 	be blended with up to ten percent, by volume, agriculturally
10.19 	derived, denatured ethanol that complies with the requirements
10.20 	of subdivision 5.
10.21 	(b) A gasoline-ethanol blend must:
10.22 	(1) comply with the volatility requirements in Code of
10.23 	Federal Regulations, title 40, part 80;
10.24 	(2) comply with ASTM specification D4814-01 D4814-04a, or
10.25 	the gasoline base stock from which a gasoline-ethanol blend was
10.26 	produced must comply with ASTM specification D4814-01 D4814-04a;
10.27 	and
10.28 	(3) not be blended with casinghead gasoline, absorption
10.29 	gasoline, condensation gasoline, drip gasoline, or natural
10.30 	gasoline after the gasoline-ethanol blend has been sold,
10.31 	transferred, or otherwise removed from a refinery or terminal.
10.32 		Subd. 5.Denatured ethanol. Denatured ethanol that is to
10.33 	be blended with gasoline must be agriculturally derived and must
10.34 	comply with ASTM specification D4806-01 D4806-04a.  This
10.35 	includes the requirement that ethanol may be denatured only as
10.36 	specified in Code of Federal Regulations, title 27, parts 20 and
11.1 	21.
11.2 		Subd. 6.Gasoline blended with nonethanol oxygenate. (a)
11.3 	A person responsible for the product shall comply with the
11.4 	following requirements:
11.5 	(1) after July 1, 2000, gasoline containing in excess of
11.6 	one-third of one percent, in total, of nonethanol oxygenates
11.7 	listed in paragraph (b) must not be sold or offered for sale at
11.8 	any time in this state; and
11.9 	(2) after July 1, 2005, gasoline containing any of the
11.10 	nonethanol oxygenates listed in paragraph (b) must not be sold
11.11 	or offered for sale in this state.
11.12 	(b) The oxygenates prohibited under paragraph (a) are:
11.13 	(1) methyl tertiary butyl ether, as defined in section
11.14 	296A.01, subdivision 34;
11.15 	(2) ethyl tertiary butyl ether, as defined in section
11.16 	296A.01, subdivision 18; or
11.17 	(3) tertiary amyl methyl ether.
11.18 	(c) Gasoline that is blended with a nonethanol oxygenate
11.19 	must comply with ASTM specification D4814-01 D4814-04a.
11.20 	Nonethanol oxygenates must not be blended into gasoline after
11.21 	the gasoline has been sold, transferred, or otherwise removed
11.22 	from a refinery or terminal.
11.23 		Subd. 7.Heating fuel oil. Heating fuel oil must comply
11.24 	with ASTM specification D396-01 D396-02a.
11.25 		Subd. 8.Diesel fuel oil. Diesel fuel oil must comply
11.26 	with ASTM specification D975-01a D975-04b, except that diesel
11.27 	fuel oil is not required to meet the diesel lubricity standard
11.28 	until the date that the biodiesel fuel requirement in section
11.29 	239.77, subdivision 2, becomes effective or June 1, 2006,
11.30 	whichever comes first.
11.31 		Subd. 9.Kerosene. Kerosene must comply with ASTM
11.32 	specification D3699-01 D3699-03.
11.33 		Subd. 10.Aviation gasoline. Aviation gasoline must
11.34 	comply with ASTM specification D910-00 D910-04.
11.35 		Subd. 11.Aviation turbine fuel, jet fuel. Aviation
11.36 	turbine fuel and jet fuel must comply with ASTM specification
12.1 	D1655-01 D1655-04.
12.2 		Subd. 12.Gas turbine fuel oil. Fuel oil for use in
12.3 	nonaviation gas turbine engines must comply with ASTM
12.4 	specification D2880-00 D2880-03.
12.5 		Subd. 13.E85. A blend of ethanol and gasoline,
12.6 	containing at least 60 percent ethanol and not more than 85
12.7 	percent ethanol, produced for use as a motor fuel in alternative
12.8 	fuel vehicles as defined in section 296A.01, subdivision 5, must
12.9 	comply with ASTM specification D5798-99 (2004).
12.10 		Subd. 14.M85. A blend of methanol and gasoline,
12.11 	containing at least 85 percent methanol, produced for use as a
12.12 	motor fuel in alternative fuel vehicles as defined in section
12.13 	296A.01, subdivision 5, must comply with ASTM specification
12.14 	D5797-96.

12.15 	Sec. 12. Minnesota Statutes 2004, section 239.77, is
12.16 	amended by adding a subdivision to read:
12.17 		Subd. 4.Disclosure. A refinery or terminal shall
12.18 	provide, at the time diesel fuel is sold or transferred from the
12.19 	refinery or terminal, a bill of lading or shipping manifest to
12.20 	the person who receives the fuel.  For biodiesel-blended
12.21 	product, the bill of lading or shipping manifest must disclose
12.22 	biodiesel content, stating volume percentage, or gallons of
12.23 	biodiesel per gallons of petroleum diesel base-stock, or an ASTM
12.24 	"Bxx" designation where "xx" denotes the volume percent
12.25 	biodiesel included in the blended product.  This subdivision
12.26 	does not apply to sales or transfers of biodiesel blend stock
12.27 	between refineries, between terminals, or between a refinery and
12.28 	a terminal.

12.29 	Sec. 13. Minnesota Statutes 2004, section 239.79,
12.30 	subdivision 4, is amended to read:
12.31 		Subd. 4.Sale of certain petroleum products on gross
12.32 	volume basis.  A person responsible for the products listed in
12.33 	this subdivision shall transfer, ship, distribute, offer for
12.34 	distribution, sell, or offer to sell the products by volume.
12.35 	Volumetric measurement of the product must not be temperature
12.36 	compensated, or adjusted by any other factor.  This subdivision
13.1 	applies to gasoline, number one and number two diesel fuel oils,
13.2 	number one and number two heating fuel oils, kerosene, denatured
13.3 	ethanol that is to be blended into gasoline, and an oxygenate
13.4 	that is to be blended into gasoline , and biodiesel.  This
13.5 	subdivision does not apply to the measurement of petroleum
13.6 	products transferred, sold, or traded between refineries,
13.7 	between refineries and terminals, or between terminals.

13.8 	Sec. 14. Minnesota Statutes 2004, section 239.791,
13.9 	subdivision 1, is amended to read:
13.10 		Subdivision 1.Minimum ethanol content required.  (a)
13.11 	Except as provided in subdivisions 10 to 14, a person
13.12 	responsible for the product shall ensure that all gasoline sold
13.13 	or offered for sale in Minnesota must contain at least 10.0
13.14 	percent denatured ethanol by volume.
13.15 	(b) For purposes of enforcing the minimum ethanol
13.16 	requirement of paragraph (a), a gasoline/ethanol blend will be
13.17 	construed to be in compliance if the ethanol content, exclusive
13.18 	of denaturants and permitted contaminants, comprises not less
13.19 	than 9.2 percent by volume and not more than 10.0 percent by
13.20 	volume of the blend as determined by an appropriate United
13.21 	States Environmental Protection Agency or American Society of
13.22 	Testing Materials standard method of analysis of alcohol/ether
13.23 	content in motor engine fuels.

13.24 	Sec. 15. Minnesota Statutes 2004, section 239.791,
13.25 	subdivision 7, is amended to read:
13.26 		Subd. 7.oxygenate ethanol records; state audit.  The
13.27 	director shall audit the records of registered oxygenate ethanol 
13.28 	blenders to ensure that each blender has met all requirements in
13.29 	this chapter.  Specific information or data relating to sales
13.30 	figures or to processes or methods of production unique to the
13.31 	blender or that would tend to adversely affect the competitive
13.32 	position of the blender must be only for the confidential use of
13.33 	the director, unless otherwise specifically authorized by the
13.34 	registered blender.

13.35 	Sec. 16. Minnesota Statutes 2004, section 239.791,
13.36 	subdivision 8, is amended to read:
14.1 		Subd. 8.Disclosure.  A refinery or terminal, shall
14.2 	provide, at the time gasoline is sold or transferred from the
14.3 	refinery or terminal, a bill of lading or shipping manifest to
14.4 	the person who receives the gasoline.  For oxygenated gasoline,
14.5 	the bill of lading or shipping manifest must include the
14.6 	identity and the volume percentage or gallons of oxygenate
14.7 	included in the gasoline, and it must state:  "This fuel
14.8 	contains an oxygenate.  Do not blend this fuel with ethanol or
14.9 	with any other oxygenate." For nonoxygenated gasoline sold or
14.10 	transferred before October 1, 1997, the bill or manifest must
14.11 	state:  "This fuel must not be sold at retail in a carbon
14.12 	monoxide control area." For nonoxygenated gasoline sold or
14.13 	transferred after September 30, 1997, the bill or manifest must
14.14 	state:  "This fuel is not oxygenated.  It must not be sold at
14.15 	retail in Minnesota."  This subdivision does not apply to sales
14.16 	or transfers of gasoline between refineries, between terminals,
14.17 	or between a refinery and a terminal.

14.18 	Sec. 17. Minnesota Statutes 2004, section 239.791,
14.19 	subdivision 15, is amended to read:
14.20 		Subd. 15.Exemption for certain blend pumps. (a) A
14.21 	person responsible for the product, who offers for sale, sells,
14.22 	or dispenses nonoxygenated premium gasoline under one or more of
14.23 	the exemptions in subdivisions 10 to 14, may sell, offer for
14.24 	sale, or dispense oxygenated gasoline that contains less than
14.25 	the minimum amount of ethanol required under subdivision 1 if
14.26 	all of the following conditions are met:
14.27 	(1) the blended gasoline has an octane rating of 88 or
14.28 	greater;
14.29 	(2) the gasoline is a blend of oxygenated gasoline meeting
14.30 	the requirements of subdivision 1 with nonoxygenated premium
14.31 	gasoline;
14.32 	(3) the blended gasoline contains not more than ten percent
14.33 	nonoxygenated premium gasoline;
14.34 	(4) the blending of oxygenated gasoline with nonoxygenated
14.35 	gasoline occurs within the gasoline dispenser; and
14.36 	(5) the gasoline station at which the gasoline is sold,
15.1 	offered for sale, or delivered is equipped to store gasoline in
15.2 	not more than two storage tanks.
15.3 	(b) This subdivision applies only to those persons who meet
15.4 	the conditions in paragraph (a),clauses (1) through (5),on the
15.5 	effective date of this act August 1, 2004,and have registered
15.6 	with the director within three months of the effective that date
15.7 	of this act.

15.8 	Sec. 18. Minnesota Statutes 2004, section 239.792, is
15.9 	amended to read:
15.10 	239.792  GASOLINE OCTANE AUTOMOTIVE FUEL RATINGS,
15.11 	CERTIFICATION, AND POSTING.
15.12 		Subdivision 1.disclosure duties of refiners, importers,
15.13 	and producers. A manufacturer, hauler, blender, agent, jobber,
15.14 	consignment agent refiner, importer, or distributor who sells,
15.15 	delivers, or distributes gasoline or gasoline-oxygenate blends,
15.16 	shall provide, at the time of delivery, a bill of lading or
15.17 	shipping manifest to the person who receives the gasoline.  The
15.18 	bill or manifest must state the minimum octane of the gasoline
15.19 	delivered.  The stated octane number must be the average of the
15.20 	"motor method" octane number and the "research method" octane
15.21 	number as determined by the test methods in ASTM specification
15.22 	D4814-01, or by a test method adopted by department
15.23 	rule producer of automotive fuel must comply with the automotive
15.24 	fuel rating, certification, and record-keeping requirements of
15.25 	Code of Federal Regulations, title 16, sections 306.5 to 306.7.
15.26 		Subd. 2.dispenser labeling duties of distributors. A
15.27 	person responsible for the product shall clearly, conspicuously,
15.28 	and permanently label each gasoline dispenser that is used to
15.29 	sell gasoline or gasoline-oxygenate blends at retail or to
15.30 	dispense gasoline or gasoline-oxygenate blends into the fuel
15.31 	supply tanks of motor vehicles, with the minimum octane of the
15.32 	gasoline dispensed.  The label must meet the following
15.33 	requirements:
15.34 	(a) The octane number displayed on the label must represent
15.35 	the average of the "motor method" octane number and the
15.36 	"research method" octane number as determined by the test
16.1 	methods in ASTM specification D4814-01, or by a test method
16.2 	adopted by department rule.
16.3 	(b) The label must be at least 2-1/2 inches high and three
16.4 	inches wide, with a yellow background, black border, and black
16.5 	figures and letters.
16.6 	(c) The number representing the octane of the gasoline must
16.7 	be at least one inch high.
16.8 	(d) The label must include the words "minimum octane" and
16.9 	the term "(R+M)/2" or "(RON+MON)/2." A licensed distributor of
16.10 	automotive fuel must comply with the certification and
16.11 	record-keeping provisions of Code of Federal Regulations, title
16.12 	16, sections 306.8 and 306.9.
16.13 		Subd. 3.Duties of retailers. A person responsible for
16.14 	the product who sells or transfers automotive fuel to a consumer
16.15 	must comply with the automotive fuel rating posting and
16.16 	record-keeping requirements, and the label specifications of
16.17 	Code of Federal Regulations, title 16, sections 306.10 to 306.12.
16.18 		Subd. 4.Duties of director. Upon request, the director
16.19 	shall provide any person with a copy of Code of Federal
16.20 	Regulations, title 16, part 306.  Upon request, the director
16.21 	shall provide any distributor, retailer, or organization of
16.22 	distributors or retailers with the label specifications in Code
16.23 	of Federal Regulations, title 16, section 306.12.

16.24 	Sec. 19. Minnesota Statutes 2004, section 296A.01,
16.25 	subdivision 2, is amended to read:
16.26 		Subd. 2.Agricultural alcohol gasoline.  "Agricultural
16.27 	alcohol gasoline" means a gasoline-ethanol blend of up to ten
16.28 	percent agriculturally derived fermentation ethanol derived from
16.29 	agricultural products, such as potatoes, cereal, grains, cheese
16.30 	whey, sugar beets, forest products, or other renewable
16.31 	resources, that:
16.32 	(1) meets the specifications in ASTM specification D4806-01 
16.33 	D4806-04a; and
16.34 	(2) is denatured as specified in Code of Federal
16.35 	Regulations, title 27, parts 20 and 21.

16.36 	Sec. 20. Minnesota Statutes 2004, section 296A.01,
17.1 	subdivision 7, is amended to read:
17.2 		Subd. 7.Aviation gasoline.  "Aviation gasoline" means
17.3 	any gasoline that is capable of use for the purpose of producing
17.4 	or generating power for propelling internal combustion engine
17.5 	aircraft, that meets the specifications in ASTM
17.6 	specification D910-00 D910-04, and that either:
17.7 	(1) is invoiced and billed by a producer, manufacturer,
17.8 	refiner, or blender to a distributor or dealer, by a distributor
17.9 	to a dealer or consumer, or by a dealer to consumer, as
17.10 	"aviation gasoline"; or
17.11 	(2) whether or not invoiced and billed as provided in
17.12 	clause (1), is received, sold, stored, or withdrawn from storage
17.13 	by any person, to be used for the purpose of producing or
17.14 	generating power for propelling internal combustion engine
17.15 	aircraft.

17.16 	Sec. 21. Minnesota Statutes 2004, section 296A.01,
17.17 	subdivision 8, is amended to read:
17.18 		Subd. 8.Aviation turbine fuel and jet fuel.  "Aviation
17.19 	turbine fuel" and "jet fuel" mean blends of hydrocarbons derived
17.20 	from crude petroleum, natural gasoline, and synthetic
17.21 	hydrocarbons, intended for use in aviation turbine engines, and
17.22 	that meet the specifications in ASTM specification
17.23 	D1655-01 D1655.04.

17.24 	Sec. 22. Minnesota Statutes 2004, section 296A.01,
17.25 	subdivision 14, is amended to read:
17.26 		Subd. 14.Diesel fuel oil.  "Diesel fuel oil" means a
17.27 	petroleum distillate or blend of petroleum distillate and
17.28 	residual fuels, intended for use as a motor fuel in internal
17.29 	combustion diesel engines, that meets the specifications in ASTM
17.30 	specification D975-01A D975-04b, except that diesel fuel oil is
17.31 	not required to meet the diesel lubricity standard until the
17.32 	date that the biodiesel fuel requirement in section 239.77,
17.33 	subdivision 2, becomes effective or June 1, 2006, whichever
17.34 	comes first.  Diesel fuel includes number 1 and number 2 fuel
17.35 	oils.  K-1 kerosene is not diesel fuel unless it is blended with
17.36 	diesel fuel for use in motor vehicles.

18.1 	Sec. 23. Minnesota Statutes 2004, section 296A.01,
18.2 	subdivision 19, is amended to read:
18.3 		Subd. 19.E85.  "E85" means a petroleum product that is a
18.4 	blend of agriculturally derived denatured ethanol and gasoline
18.5 	or natural gasoline that typically contains 85 percent ethanol
18.6 	by volume, but at a minimum must contain 60 percent ethanol by
18.7 	volume.  For the purposes of this chapter, the energy content of
18.8 	E85 will be considered to be 82,000 BTUs per gallon.  E85
18.9 	produced for use as a motor fuel in alternative fuel vehicles as
18.10 	defined in subdivision 5 must comply with ASTM specification
18.11 	D5798-99 (2004).

18.12 	Sec. 24. Minnesota Statutes 2004, section 296A.01,
18.13 	subdivision 20, is amended to read:
18.14 		Subd. 20.Ethanol, denatured.  "Ethanol, denatured" means
18.15 	ethanol that is to be blended with gasoline, has been
18.16 	agriculturally derived, and complies with ASTM specification
18.17 	D4806-01 D4806-04a.  This includes the requirement that ethanol
18.18 	may be denatured only as specified in Code of Federal
18.19 	Regulations, title 27, parts 20 and 21.

18.20 	Sec. 25. Minnesota Statutes 2004, section 296A.01,
18.21 	subdivision 22, is amended to read:
18.22 		Subd. 22.Gas turbine fuel oil.  "Gas turbine fuel oil"
18.23 	means fuel that contains mixtures of hydrocarbon oils free of
18.24 	inorganic acid and excessive amounts of solid or fibrous foreign
18.25 	matter, intended for use in nonaviation gas turbine engines, and
18.26 	that meets the specifications in ASTM specification
18.27 	D2880-00 D2880-03.

18.28 	Sec. 26. Minnesota Statutes 2004, section 296A.01,
18.29 	subdivision 23, is amended to read:
18.30 		Subd. 23.Gasoline.  (a) "Gasoline" means:
18.31 	(1) all products commonly or commercially known or sold as
18.32 	gasoline regardless of their classification or uses, except
18.33 	casinghead gasoline, absorption gasoline, condensation gasoline,
18.34 	drip gasoline, or natural gasoline that under the requirements
18.35 	of section 239.761, subdivision 3, must not be blended with
18.36 	gasoline that has been sold, transferred, or otherwise removed
19.1 	from a refinery or terminal; and
19.2 	(2) any liquid prepared, advertised, offered for sale or
19.3 	sold for use as, or commonly and commercially used as, a fuel in
19.4 	spark-ignition, internal combustion engines, and that when
19.5 	tested by the Weights and Measures Division meets the
19.6 	specifications in ASTM specification D4814-01 D4814-04a.
19.7 	(b) Gasoline that is not blended with ethanol must not be
19.8 	contaminated with water or other impurities and must comply with
19.9 	both ASTM specification D4814-01 D4814-04a and the volatility
19.10 	requirements in Code of Federal Regulations, title 40, part 80.
19.11 	(c) After gasoline is sold, transferred, or otherwise
19.12 	removed from a refinery or terminal, a person responsible for
19.13 	the product:
19.14 	(1) may blend the gasoline with agriculturally derived
19.15 	ethanol, as provided in subdivision 24;
19.16 	(2) must not blend the gasoline with any oxygenate other
19.17 	than denatured, agriculturally derived ethanol;
19.18 	(3) must not blend the gasoline with other petroleum
19.19 	products that are not gasoline or denatured, agriculturally
19.20 	derived ethanol;
19.21 	(4) must not blend the gasoline with products commonly and
19.22 	commercially known as casinghead gasoline, absorption gasoline,
19.23 	condensation gasoline, drip gasoline, or natural gasoline; and
19.24 	(5) may blend the gasoline with a detergent additive, an
19.25 	antiknock additive, or an additive designed to replace
19.26 	tetra-ethyl lead, that is registered by the EPA.

19.27 	Sec. 27. Minnesota Statutes 2004, section 296A.01,
19.28 	subdivision 24, is amended to read:
19.29 		Subd. 24.Gasoline blended with nonethanol oxygenate.
 19.30 	"Gasoline blended with nonethanol oxygenate" means gasoline
19.31 	blended with ETBE, MTBE, or other alcohol or ether, except
19.32 	denatured ethanol, that is approved as an oxygenate by the EPA,
19.33 	and that complies with ASTM specification D4814-01 D4814-04a.
19.34 	Oxygenates, other than denatured ethanol, must not be blended
19.35 	into gasoline after the gasoline has been sold, transferred, or
19.36 	otherwise removed from a refinery or terminal.

20.1 	Sec. 28. Minnesota Statutes 2004, section 296A.01,
20.2 	subdivision 25, is amended to read:
20.3 		Subd. 25.Gasoline blended with ethanol.  "Gasoline
20.4 	blended with ethanol" means gasoline blended with up to ten
20.5 	percent, by volume, agriculturally derived, denatured ethanol.
20.6 	The blend must comply with the volatility requirements in Code
20.7 	of Federal Regulations, title 40, part 80.  The blend must also
20.8 	comply with ASTM specification D4814-01 D4814-04a, or the
20.9 	gasoline base stock from which a gasoline-ethanol blend was
20.10 	produced must comply with ASTM specification D4814-01 D4814-04a;
20.11 	and the gasoline-ethanol blend must not be blended with
20.12 	casinghead gasoline, absorption gasoline, condensation gasoline,
20.13 	drip gasoline, or natural gasoline after the gasoline-ethanol
20.14 	blend has been sold, transferred, or otherwise removed from a
20.15 	refinery or terminal.  The blend need not comply with ASTM
20.16 	specification D4814-01 D4814-04a if it is subjected to a
20.17 	standard distillation test.  For a distillation test, a
20.18 	gasoline-ethanol blend is not required to comply with the
20.19 	temperature specification at the 50 percent liquid recovery
20.20 	point, if the gasoline from which the gasoline-ethanol blend was
20.21 	produced complies with all of the distillation specifications.

20.22 	Sec. 29. Minnesota Statutes 2004, section 296A.01,
20.23 	subdivision 26, is amended to read:
20.24 		Subd. 26.Heating fuel oil.  "Heating fuel oil" means a
20.25 	petroleum distillate, blend of petroleum distillates and
20.26 	residuals, or petroleum residual heating fuel that meets the
20.27 	specifications in ASTM specification D396-01 D396-02a.

20.28 	Sec. 30. Minnesota Statutes 2004, section 296A.01,
20.29 	subdivision 28, is amended to read:
20.30 		Subd. 28.Kerosene.  "Kerosene" means a refined petroleum
20.31 	distillate consisting of a homogeneous mixture of hydrocarbons
20.32 	essentially free of water, inorganic acidic and basic compounds,
20.33 	and excessive amounts of particulate contaminants and that meets
20.34 	the specifications in ASTM specification D3699-01 D3699-03.

20.35 	Sec. 31. INSTRUCTION TO REVISOR.
 20.36 	The revisor of statutes shall renumber Minnesota Statutes,
21.1 	section 239.05, as section 239.051, alphabetize the definitions,
21.2 	and correct any cross-references to that section accordingly.

21.3 	Sec. 32. REPEALER.
 21.4 	Minnesota Statutes 2004, section 239.05, subdivisions 6a
21.5 	and 6b, are repealed.