1.1 	A bill for an act
1.2 	relating to motor fuels; modifying definition of ethanol blender; establishing 
1.3 	specifications for two classes of gasoline-ethanol blends; allowing ethanol 
1.4 	blends approved by the United States Environmental Protection Agency; 
1.5 	directing state departments to further expand gasoline-ethanol blend options for 
1.6 	Minnesota consumers and facilitate the installment of renewable fuel-blending 
1.7 	pumps; updating superseded ASTM specifications; synchronizing redundant 
1.8 	ethanol-gasoline blend definitions and specifications in statute;amending 
1.9 	Minnesota Statutes 2006, sections 239.051, subdivision 15; 239.761, subdivision 
1.10 	4, by adding subdivisions; 239.7911, subdivision 2; 296A.01, subdivisions 2, 25.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	Section 1. Minnesota Statutes 2006, section 239.051, subdivision 15, is amended to 
1.13 	read:
1.14 		Subd. 15.Ethanol blender. "Ethanol blender" means a person who blends and 
1.15 	distributes, transports, sells, or offers to sell gasoline containing ten percent ethanol by 
1.16 	volume.

1.17 	Sec. 2. Minnesota Statutes 2006, section 239.761, subdivision 4, is amended to read:
1.18 		Subd. 4.Gasoline blended with ethanol; general. (a) Gasoline may be blended 
1.19 	with up to ten percent, by volume, agriculturally derived, denatured ethanol that complies 
1.20 	with the requirements of subdivision 5.
1.21 	(b) A gasoline-ethanol blend must:
1.22 	(1) comply with the volatility requirements in Code of Federal Regulations, title 
1.23 	40, part 80;
1.24 	(2) comply with ASTM specification D4814-04a D4814-06, or the gasoline base 
1.25 	stock from which a gasoline-ethanol blend was produced must comply with ASTM 
1.26 	specification D4814-04a D4814-06; and
2.1 	(3) not be blended with casinghead gasoline, absorption gasoline, condensation 
2.2 	gasoline, drip gasoline, or natural gasoline after the gasoline-ethanol blend has been sold, 
2.3 	transferred, or otherwise removed from a refinery or terminal.

2.4 	Sec. 3. Minnesota Statutes 2006, section 239.761, is amended by adding a subdivision 
2.5 	to read:
2.6 		Subd. 4a.Gasoline blended with ethanol; standard combustion engines. (a) 
2.7 	Gasoline combined with ethanol for use in standard combustion engines may be blended 
2.8 	with up to ten percent agriculturally derived, denatured ethanol, by volume, or any 
2.9 	percentage specifically authorized in a waiver granted by the United States Environmental 
2.10 	Protection Agency under section 211(f)(4) of the Clean Air Act, United States Code, title 
2.11 	42, section 7545, subsection (f), paragraph (4). The gasoline-ethanol blend must comply 
2.12 	with the general provisions in subdivision 4.

2.13 	Sec. 4. Minnesota Statutes 2006, section 239.761, is amended by adding a subdivision 
2.14 	to read:
2.15 		Subd. 4b.Gasoline blended with ethanol; alternative fuel vehicles. Gasoline 
2.16 	blended for use in an alternative fuel vehicle, as defined in section 296A.01, subdivision 
2.17 	5, may contain any percentage of agriculturally derived, denatured ethanol, by volume, 
2.18 	not exceeding 85 percent. The gasoline-ethanol blend must comply with the general 
2.19 	provisions in subdivision 4. Gasoline and ethanol may be blended by an ethanol 
2.20 	blender or at the point of retail sale in an ethanol-blending fuel dispenser clearly labeled 
2.21 	"FLEX-FUEL VEHICLES ONLY." If blended by an ethanol blender, the percentage of 
2.22 	ethanol in the resulting gasoline-ethanol blend must be clearly identified.

2.23 	Sec. 5. Minnesota Statutes 2006, section 239.7911, subdivision 2, is amended to read:
2.24 		Subd. 2.Promotion of renewable liquid fuels. (a) The commissioner of 
2.25 	agriculture, in consultation with the commissioners of commerce and the Pollution 
2.26 	Control Agency, shall identify and implement activities necessary for the widespread use 
2.27 	of renewable liquid fuels in the state. Beginning November 1, 2005, and continuing 
2.28 	through 2015, the commissioners, or their designees, shall work with representatives 
2.29 	from the renewable fuels industry, petroleum retailers, refiners, automakers, small engine 
2.30 	manufacturers, and other interested groups, to develop annual recommendations for 
2.31 	administrative and legislative action.
2.32 	(b) The activities of the commissioners under this subdivision shall include, but not 
2.33 	be limited to:
3.1 	(1) developing recommendations for incentives for retailers to install equipment 
3.2 	necessary for dispensing renewable liquid fuels to the public and obtaining regulatory 
3.3 	approval for, and private product safety certification of, liquid fuel dispensers that offer 
3.4 	Minnesota consumers a wider variety of renewable-fuel blends, including but not limited 
3.5 	to fuel pumps that dispense several gasoline-ethanol blends;
3.6 	(2) expanding the renewable-fuel options available to Minnesota consumers by 
3.7 	obtaining federal approval for the use of E20, E30, E40, E50, E60, and E70 as gasoline;
3.8 	(3) developing recommendations for ensuring that motor vehicles and small engine 
3.9 	equipment have access to an adequate supply of fuel;
3.10 	(4) working with the owners and operators of large corporate automotive fleets in the 
3.11 	state to increase their use of renewable fuels; and
3.12 	(5) working to maintain an affordable retail price for liquid fuels.

3.13 	Sec. 6. Minnesota Statutes 2006, section 296A.01, subdivision 2, is amended to read:
3.14 		Subd. 2.Agricultural alcohol gasoline. "Agricultural alcohol gasoline" means a 
3.15 	gasoline-ethanol blend of up to ten percent agriculturally derived fermentationmeeting 
3.16 	the provisions of section 239.761, subdivision 4a or 4b, with the ethanol derived from 
3.17 	agricultural products, such as potatoes, cereal, grains, cheese whey, sugar beets, forest 
3.18 	products, or other renewable resources, that:.
3.19 	(1) meets the specifications in ASTM specification D4806-04a; and
3.20 	(2) is denatured as specified in Code of Federal Regulations, title 27, parts 20 and 21.

3.21 	Sec. 7. Minnesota Statutes 2006, section 296A.01, subdivision 25, is amended to read:
3.22 		Subd. 25.Gasoline blended with ethanol. "Gasoline blended with ethanol" means 
3.23 	gasoline blended with up to ten percent, by volume, agriculturally derived, denatured 
3.24 	ethanol. The blend must comply with the volatility requirements in Code of Federal 
3.25 	Regulations, title 40, part 80. The blend must also comply with ASTM specification 
3.26 	D4814-04a, or the gasoline base stock from which a gasoline-ethanol blend was produced 
3.27 	must comply with ASTM specification D4814-04a; and the gasoline-ethanol blend must 
3.28 	not be blended with casinghead gasoline, absorption gasoline, condensation gasoline, drip 
3.29 	gasoline, or natural gasoline after the gasoline-ethanol blend has been sold, transferred, or 
3.30 	otherwise removed from a refinery or terminal. The blend need not comply with ASTM 
3.31 	specification D4814-04a if it is subjected to a standard distillation test. For a distillation 
3.32 	test, a gasoline-ethanol blend is not required to comply with the temperature specification 
3.33 	at the 50 percent liquid recovery point, if the gasoline from which the gasoline-ethanol 
4.1 	blend was produced complies with all of the distillation specifications a gasoline-ethanol 
4.2 	blend meeting the provisions of section 239.761, subdivision 4a or 4b.