HF 766

2nd Engrossment - 85th Legislature (2007 - 2008)

Posted on 12/15/2009 12:00 a.m.

A bill for an act
relating to motor fuels; modifying motor fuel specifications, standards, and
requirements; amending Minnesota Statutes 2006, sections 239.051, subdivision
15; 239.761, subdivisions 3, 4, 6, by adding subdivisions; 239.7911, subdivision
2; 296A.01, subdivisions 2, 23, 24, 25.

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

Section 1.

Minnesota Statutes 2006, section 239.051, subdivision 15, is amended to
read:

Subd. 15.

Ethanol blender.

"Ethanol blender" means a person who blends and
distributes, transports, sells, or offers to sell gasoline containing deleted text begin ten percent deleted text end ethanol deleted text begin by
volume deleted text end .

Sec. 2.

Minnesota Statutes 2006, section 239.761, subdivision 3, is amended to read:

Subd. 3.

Gasoline.

(a) Gasoline that is not blended with ethanol must not be
contaminated with water or other impurities and must comply with ASTM specification
deleted text begin D4814-04a deleted text end new text begin D4814-06a new text end . Gasoline that is not blended with ethanol must also comply with
the volatility requirements in Code of Federal Regulations, title 40, part 80.

(b) After gasoline is sold, transferred, or otherwise removed from a refinery or
terminal, a person responsible for the product:

(1) may blend the gasoline with agriculturally derived ethanol as provided in
subdivision 4;

(2) shall not blend the gasoline with any oxygenate other than denatured,
agriculturally derived ethanol;

(3) shall not blend the gasoline with other petroleum products that are not gasoline
or denatured, agriculturally derived ethanol;

(4) shall not blend the gasoline with products commonly and commercially known
as casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or
natural gasoline; and

(5) may blend the gasoline with a detergent additive, an antiknock additive, or an
additive designed to replace tetra-ethyl lead, that is registered by the EPA.

Sec. 3.

Minnesota Statutes 2006, section 239.761, subdivision 4, is amended to read:

Subd. 4.

Gasoline blended with ethanol new text begin ; general new text end .

(a) Gasoline may be blended
with deleted text begin up to ten percent, by volume, deleted text end agriculturally derived, denatured ethanol that complies
with the requirements of subdivision 5.

(b) A gasoline-ethanol blend must:

(1) comply with the volatility requirements in Code of Federal Regulations, title
40, part 80;

(2) comply with ASTM specification deleted text begin D4814-04a deleted text end new text begin D4814-06a new text end , or the gasoline base
stock from which a gasoline-ethanol blend was produced must comply with ASTM
specification deleted text begin D4814-04a deleted text end new text begin D4814-06a new text end ; and

(3) not be blended with casinghead gasoline, absorption gasoline, condensation
gasoline, drip gasoline, or natural gasoline after the gasoline-ethanol blend has been sold,
transferred, or otherwise removed from a refinery or terminal.

Sec. 4.

Minnesota Statutes 2006, section 239.761, subdivision 6, is amended to read:

Subd. 6.

Gasoline blended with nonethanol oxygenate.

(a) A person responsible
for the product shall comply with the following requirements:

(1) after July 1, 2000, gasoline containing in excess of one-third of one percent, in
total, of nonethanol oxygenates listed in paragraph (b) must not be sold or offered for
sale at any time in this state; and

(2) after July 1, 2005, gasoline containing any of the nonethanol oxygenates listed in
paragraph (b) must not be sold or offered for sale in this state.

(b) The oxygenates prohibited under paragraph (a) are:

(1) methyl tertiary butyl ether, as defined in section 296A.01, subdivision 34;

(2) ethyl tertiary butyl ether, as defined in section 296A.01, subdivision 18; or

(3) tertiary amyl methyl ether.

(c) Gasoline that is blended with a nonethanol oxygenate must comply with ASTM
specification deleted text begin D4814-04a deleted text end new text begin D4814-06a new text end . Nonethanol oxygenates must not be blended into
gasoline after the gasoline has been sold, transferred, or otherwise removed from a
refinery or terminal.

Sec. 5.

Minnesota Statutes 2006, section 239.761, is amended by adding a subdivision
to read:

new text begin Subd. 4a. new text end

new text begin Gasoline blended with ethanol; standard combustion engines. new text end

new text begin (a)
Gasoline combined with ethanol for use in standard combustion engines may be blended
with up to ten percent agriculturally derived, denatured ethanol, by volume, or any
percentage specifically authorized in a waiver granted by the United States Environmental
Protection Agency under section 211(f)(4) of the Clean Air Act, United States Code, title
42, section 7545, subsection (f), paragraph (4). The gasoline-ethanol blend must comply
with the general provisions in subdivision 4.
new text end

Sec. 6.

Minnesota Statutes 2006, section 239.761, is amended by adding a subdivision
to read:

new text begin Subd. 4b. new text end

new text begin Gasoline blended with ethanol; alternative fuel vehicles. new text end

new text begin Gasoline
blended for use in an alternative fuel vehicle, as defined in section 296A.01, subdivision
5, may contain any percentage of agriculturally derived, denatured ethanol, by volume,
not exceeding 85 percent. The gasoline-ethanol blend must comply with the general
provisions in subdivision 4. Gasoline and ethanol may be blended by an ethanol
blender or at the point of retail sale in an ethanol-blending fuel dispenser clearly labeled
"FLEX-FUEL VEHICLES ONLY." If a person responsible for the product uses an
ethanol-blending fuel dispenser to dispense both gasoline blended with ethanol for
use in alternative fuel vehicles and gasoline blended with ethanol for use in standard
combustion engines, the person must ensure that the gasoline blended with ethanol for use
in standard combustion engines is dispensed from a fuel-dispensing hose and nozzle or
other conveyance dedicated solely to gasoline blended with ethanol for use in standard
combustion engines. If blended by an ethanol blender, the percentage of ethanol in the
resulting gasoline-ethanol blend must be clearly identified.
new text end

Sec. 7.

Minnesota Statutes 2006, section 239.7911, subdivision 2, is amended to read:

Subd. 2.

Promotion of renewable liquid fuels.

(a) The commissioner of
agriculture, in consultation with the commissioners of commerce and the Pollution
Control Agency, shall identify and implement activities necessary for the widespread use
of renewable liquid fuels in the state. Beginning November 1, 2005, and continuing
through 2015, the commissioners, or their designees, shall work with representatives
from the renewable fuels industry, petroleum retailers, refiners, automakers, small engine
manufacturers, and other interested groups, to develop annual recommendations for
administrative and legislative action.

(b) The activities of the commissioners under this subdivision shall include, but not
be limited to:

(1) developing recommendations for incentives for retailers to install equipment
necessary for dispensing renewable liquid fuels to the public new text begin and obtaining regulatory
approval for, and private product safety certification of, liquid fuel dispensers that offer
Minnesota consumers a wider variety of renewable-fuel blends, including but not limited
to fuel pumps that dispense several gasoline-ethanol and diesel-biodiesel blends new text end ;

(2) new text begin expanding the renewable-fuel options available to Minnesota consumers by
new text end obtaining federal approval for the use of E20 new text begin , E30, E40, E50, E60, and E70 new text end as gasoline;

(3) developing recommendations for ensuring that motor vehicles and small engine
equipment have access to an adequate supply of fuel;

(4) working with the owners and operators of large corporate automotive fleets in the
state to increase their use of renewable fuels; and

(5) working to maintain an affordable retail price for liquid fuels.

Sec. 8.

Minnesota Statutes 2006, section 296A.01, subdivision 2, is amended to read:

Subd. 2.

Agricultural alcohol gasoline.

"Agricultural alcohol gasoline" means a
gasoline-ethanol blend deleted text begin of up to ten percent agriculturally derived fermentation deleted text end new text begin meeting
the provisions of section 239.761, subdivision 4a or 4b, with the new text end ethanol derived from
agricultural products, such as potatoes, cereal, grains, cheese whey, sugar beets, forest
products, or other renewable resources, deleted text begin that: deleted text end new text begin .
new text end

deleted text begin (1) meets the specifications in ASTM specification D4806-04a; and
deleted text end

deleted text begin (2) is denatured as specified in Code of Federal Regulations, title 27, parts 20 and 21.
deleted text end

Sec. 9.

Minnesota Statutes 2006, section 296A.01, subdivision 23, is amended to read:

Subd. 23.

Gasoline.

(a) "Gasoline" means:

(1) all products commonly or commercially known or sold as gasoline regardless of
their classification or uses, except casinghead gasoline, absorption gasoline, condensation
gasoline, drip gasoline, or natural gasoline that under the requirements of section 239.761,
subdivision 3, must not be blended with gasoline that has been sold, transferred, or
otherwise removed from a refinery or terminal; and

(2) any liquid prepared, advertised, offered for sale or sold for use as, or commonly
and commercially used as, a fuel in spark-ignition, internal combustion engines, and that
when tested by the Weights and Measures Division meets the specifications in ASTM
specification deleted text begin D4814-04a deleted text end new text begin D4814-06a new text end .

(b) Gasoline that is not blended with ethanol must not be contaminated with water or
other impurities and must comply with both ASTM specification deleted text begin D4814-04a deleted text end new text begin D4814-06a new text end
and the volatility requirements in Code of Federal Regulations, title 40, part 80.

(c) After gasoline is sold, transferred, or otherwise removed from a refinery or
terminal, a person responsible for the product:

(1) may blend the gasoline with agriculturally derived ethanol, as provided in
subdivision 24;

(2) must not blend the gasoline with any oxygenate other than denatured,
agriculturally derived ethanol;

(3) must not blend the gasoline with other petroleum products that are not gasoline
or denatured, agriculturally derived ethanol;

(4) must not blend the gasoline with products commonly and commercially known
as casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or
natural gasoline; and

(5) may blend the gasoline with a detergent additive, an antiknock additive, or an
additive designed to replace tetra-ethyl lead, that is registered by the EPA.

Sec. 10.

Minnesota Statutes 2006, section 296A.01, subdivision 24, is amended to read:

Subd. 24.

Gasoline blended with nonethanol oxygenate.

"Gasoline blended with
nonethanol oxygenate" means gasoline blended with ETBE, MTBE, or other alcohol
or ether, except denatured ethanol, that is approved as an oxygenate by the EPA, and
that complies with ASTM specification deleted text begin D4814-04a deleted text end new text begin D4814-06a new text end . Oxygenates, other than
denatured ethanol, must not be blended into gasoline after the gasoline has been sold,
transferred, or otherwise removed from a refinery or terminal.

Sec. 11.

Minnesota Statutes 2006, section 296A.01, subdivision 25, is amended to read:

Subd. 25.

Gasoline blended with ethanol.

"Gasoline blended with ethanol" means
deleted text begin gasoline blended with up to ten percent, by volume, agriculturally derived, denatured
ethanol. The blend must comply with the volatility requirements in Code of Federal
Regulations, title 40, part 80. The blend must also comply with ASTM specification
D4814-04a, or the gasoline base stock from which a gasoline-ethanol blend was produced
must comply with ASTM specification D4814-04a; and the gasoline-ethanol blend must
not be blended with casinghead gasoline, absorption gasoline, condensation gasoline, drip
gasoline, or natural gasoline after the gasoline-ethanol blend has been sold, transferred, or
otherwise removed from a refinery or terminal. The blend need not comply with ASTM
specification D4814-04a if it is subjected to a standard distillation test. For a distillation
test, a gasoline-ethanol blend is not required to comply with the temperature specification
at the 50 percent liquid recovery point, if the gasoline from which the gasoline-ethanol
blend was produced complies with all of the distillation specifications deleted text end new text begin a gasoline-ethanol
blend meeting the provisions of section 239.761, subdivision 4a or 4b new text end .