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HF 1433

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/01/2021 04:40pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to agriculture; providing a biofuels education and marketing program;
establishing a council on biofuels education and promotion; requiring compliance
with certain compatibility standards; modifying minimum biofuel standard; making
technical changes; requiring reports; amending Minnesota Statutes 2020, sections
116.49, by adding a subdivision; 239.791, subdivisions 1, 2a, 2b, 2c, 3, 7, 8, 15,
by adding subdivisions; proposing coding for new law in Minnesota Statutes,
chapter 41A.

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

Section 1.

new text begin [41A.27] BIOFUELS EDUCATION AND MARKETING PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Account" means the biofuels education and marketing account established in
subdivision 3.
new text end

new text begin (c) "Commissioner" means the commissioner of agriculture.
new text end

new text begin (d) "Council on Biofuels Education and Promotion" means the Council on Biofuels
Education and Promotion established under section 41A.28.
new text end

new text begin (e) "Program" means the biofuels education and marketing program established in this
section.
new text end

new text begin (f) "Technical assistance" means individualized guidance, presentations, workshops,
trainings, printed materials, or other guidance and resources on topics relevant to the purposes
of the program as provided in subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Program established. new text end

new text begin A biofuels education and marketing program is
established within the Department of Agriculture to ensure a coordinated program of
education about and promotion of biofuels among consumers and auto industry professionals
in Minnesota. The commissioner, in cooperation with public and private partners, must
establish and implement the program as provided in this section. The commissioner's actions
under this subdivision are not subject to chapter 14.
new text end

new text begin Subd. 3. new text end

new text begin Biofuels education and marketing account. new text end

new text begin A biofuels education and
marketing account is established in the agricultural fund. The account consists of money
appropriated to the commissioner and any other money donated, allotted, transferred, or
otherwise provided to the account. Money in the account, including interest, is appropriated
to the commissioner for the purposes of this section, and shall be used, to the extent
practicable, to leverage other forms of public and private financial assistance.
new text end

new text begin Subd. 4. new text end

new text begin Program administration. new text end

new text begin (a) The commissioner is the administrator of the
account for auditing purposes and must establish program requirements and a competitive
process for qualifying entities to apply for grants or to make proposals for professional or
technical services contracts.
new text end

new text begin (b) The commissioner may receive money or other assets from any source, including
but not limited to philanthropic foundations and financial investors, for deposit into the
account.
new text end

new text begin (c) Money in the account at the close of each fiscal year does not cancel. In each
biennium, the commissioner must determine the appropriate proportion of money to be
allocated to loans, grants, technical assistance, and any other types of financial assistance.
new text end

new text begin (d) To encourage public-private, cross-sector collaboration and investment in the account
and program and to ensure that the program intent is maintained throughout implementation,
the commissioner must convene and maintain the Council on Biofuels Education and
Promotion.
new text end

new text begin (e) The commissioner, in cooperation with the Council on Biofuels Education and
Promotion, shall manage the program, establish program criteria, facilitate leveraging of
additional public and private investment, and promote the program statewide.
new text end

new text begin (f) The commissioner, in cooperation with the Council on Biofuels Education and
Promotion, must establish annual monitoring and accountability mechanisms for all activities
receiving financing or other financial or technical assistance through this program.
new text end

new text begin Subd. 5. new text end

new text begin Eligible activities. new text end

new text begin (a) The commissioner, in cooperation with the program
partners and advisers, must establish project eligibility guidelines and application processes
to be used to review and select project applicants for financial or technical assistance, and
scopes of work to be used for procurement of professional or technical services.
new text end

new text begin (b) Activities eligible for financial assistance such as grants or technical assistance, or
for professional or technical services contracts, must fulfill the purposes as provided in
subdivision 2.
new text end

new text begin Subd. 6. new text end

new text begin Qualifying entities. new text end

new text begin An applicant for a grant, or a proposer for a professional
or technical services contract, may be a for-profit or not-for-profit entity, including but not
limited to a sole proprietorship, limited liability company, corporation, cooperative, nonprofit
organization, or nonprofit community development organization. Each applicant or proposer
must demonstrate the capacity to successfully implement the activity.
new text end

new text begin Subd. 7. new text end

new text begin Legislative report. new text end

new text begin The commissioner must submit a report on the biofuels
education and marketing program by January 15 of each year to the chairs and ranking
minority members of the legislative committees and divisions with jurisdiction over
agriculture policy and finance. The annual report must include but not be limited to a
summary of the following metrics:
new text end

new text begin (1) the number and types of activities financed;
new text end

new text begin (2) the amount of dollars leveraged or matched per project;
new text end

new text begin (3) the number and types of technical assistance recipients;
new text end

new text begin (4) any market expansion associated with increased education and promotion; and
new text end

new text begin (5) the costs of the program.
new text end

Sec. 2.

new text begin [41A.28] COUNCIL ON BIOFUELS EDUCATION AND PROMOTION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin As used in this section, the following terms have the meanings
given them:
new text end

new text begin (1) "commissioner" means the commissioner of agriculture;
new text end

new text begin (2) "council" means the Council on Biofuels Education and Promotion created in
subdivision 2; and
new text end

new text begin (3) "program" means the biofuels education and marketing program under section
17.1019.
new text end

new text begin Subd. 2. new text end

new text begin Creation. new text end

new text begin The Council on Biofuels Education and Promotion consists of no
more than 15 members representing entities and organizations with knowledge and expertise
regarding education and promotion of biofuels appointed by the commissioner. The
commissioner may remove members and fill vacancies as provided in section 15.059,
subdivision 4.
new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin The council must advise the commissioner of agriculture on managing
the program, establishing program criteria, establishing project eligibility guidelines,
establishing application processes and additional selection criteria, establishing annual
monitoring and accountability mechanisms, facilitating leveraging of additional public and
private investments, and promoting the program statewide.
new text end

Sec. 3.

Minnesota Statutes 2020, section 116.49, is amended by adding a subdivision to
read:


new text begin Subd. 5. new text end

new text begin Minimum compatibility standard for new equipment. new text end

new text begin (a) Any underground
storage tank system for gasoline installed after December 31, 2022, must meet compatibility
standards in rules adopted under authority of this section for gasoline containing up to 25
percent ethanol.
new text end

new text begin (b) If a new mid-level blend certification for ethanol or biodiesel is established, the
agency must consider revising the minimum compatibility standards required under paragraph
(a).
new text end

Sec. 4.

Minnesota Statutes 2020, section 239.791, subdivision 1, is amended to read:


Subdivision 1.

Minimum biofuel deleted text begincontent requireddeleted text endnew text begin standardnew text end.

(a) Except as provided
in subdivisions 10 to deleted text begin14deleted text endnew text begin 18new text end, a person responsible for the product shall ensure that all gasoline
sold or offered for sale in Minnesota deleted text beginmust containdeleted text endnew text begin containsnew text end at least the quantity of biofuel
required bynew text begin the greater ofnew text end clause (1) or (2)deleted text begin, at the option of the person responsible for the
product
deleted text end:

deleted text begin (1) the greater of:
deleted text end

deleted text begin (i)deleted text endnew text begin (1)new text end 10.0 percent conventionalnew text begin or advancednew text end biofuel by volume; or

deleted text begin (ii) the maximum percentdeleted text endnew text begin (2) at least the stated percentagenew text end of conventionalnew text begin or advancednew text end
biofuel by volume authorized in a waiver granted by the United States Environmental
Protection Agencydeleted text begin; ordeleted text endnew text begin under United States Code, title 42, section 7545, no sooner than the
following dates:
new text end

new text begin (i) 15 percent by July 1, 2022; and
new text end

new text begin (ii) 25 percent by July 1, 2031.
new text end

deleted text begin (2) 10.0 percent of a biofuel, other than a conventional biofuel, by volume authorized
in a waiver granted by the United States Environmental Protection Agency or a biofuel
formulation registered by the United States Environmental Protection Agency under United
States Code, title 42, section 7545.
deleted text end

(b) For purposes of enforcing the requirement of paragraph (a), clause (1), deleted text beginitem (i),deleted text end a
gasoline/biofuel blend will be construed to be in compliance if the biofuel content, exclusive
of denaturants and other permitted components, comprises not less than 9.2 percent by
volume and not more than 10.0 percent by volume of the blend as determined by an
appropriate United States Environmental Protection Agency or American Society of Testing
Materials standard method of analysis.

new text begin (c) For purposes of enforcing the requirement of paragraph (a), clause (2), item (i), a
gasoline and biofuel blend is considered to be in compliance if the biofuel content, exclusive
of denaturants and other permitted components, comprises not less than 13.8 percent by
volume and not more than 15 percent by volume of the blend as determined by an appropriate
United States Environmental Protection Agency or American Society of Testing Materials
standard method of analysis. Dispensers dispensing the blend specified in paragraph (a),
clause (2), item (i), must be marked according to rules adopted by the commissioner.
new text end

new text begin (d) For purposes of enforcing the requirement of paragraph (a), clause (2), item (ii), a
gasoline and biofuel blend is considered to be in compliance if the biofuel content, exclusive
of denaturants and other permitted components, comprises not less than 23 percent by
volume and not more than 25 percent by volume of the blend as determined by an appropriate
United States Environmental Protection Agency or American Society of Testing Materials
standard method of analysis. Dispensers dispensing the blend specified in paragraph (a),
clause (2), item (ii), must be marked according to rules adopted by the commissioner.
new text end

deleted text begin (c) The aggregatedeleted text endnew text begin (e) Of the totalnew text end amount of biofuel blended pursuant to this subdivision
deleted text begin may be any biofuel; howeverdeleted text endnew text begin each yearnew text end, conventional biofuel must comprise no less than
the portion specified on and after the specified dates:

(1)
July 1, 2013
90 percent
(2)
January 1, 2015
80 percent
(3)
January 1, 2017
70 percent
(4)
January 1, 2020
60 percent
(5)
January 1, 2025
no minimum

Sec. 5.

Minnesota Statutes 2020, section 239.791, subdivision 2a, is amended to read:


Subd. 2a.

Federal Clean Air Act waivers; conditions.

(a) Before a waiver granted by
the United States Environmental Protection Agency under United States Code, title 42,
section 7545, may alter the minimum content level required by subdivision 1, paragraph
(a), clause deleted text begin(1), item (ii)deleted text endnew text begin (2)new text end, the waiver must:

(1) apply to deleted text beginalldeleted text endnew text begin over 90 percent ofnew text end gasoline-powered motor vehicles deleted text beginirrespective of model
year
deleted text end; and

(2) allow for special regulatory treatment of Reid vapor pressure under Code of Federal
Regulations, title 40, section deleted text begin80.27, paragraph (d)deleted text endnew text begin 1090.215(b)new text end, for blends of gasoline and
deleted text begin ethanoldeleted text endnew text begin biofuelnew text end up to the maximum percent of denatured deleted text beginethanoldeleted text endnew text begin biofuelnew text end by volume authorized
under the waiver.

(b) The minimum biofuel requirement in subdivision 1, paragraph (a), clause deleted text begin(1), item
(ii)
deleted text endnew text begin (2)new text end, shall, upon the grant of the federal waiver, be effective deleted text beginthe day after the commissioner
of commerce publishes notice in the State Register. In making this determination, the
commissioner shall consider the amount of time required by refiners, retailers, pipeline and
distribution terminal companies, and other fuel suppliers, acting expeditiously, to make the
operational and logistical changes required to supply fuel in compliance with the minimum
biofuel requirement.
deleted text endnew text begin only if the commissioners of agriculture, commerce, transportation,
and pollution control publish notice in the State Register and provide written notice to the
chairs of the legislative committees with jurisdiction over agriculture, commerce,
environment, and transportation policy and finance at least 270 days prior to the date of the
scheduled increase that the following conditions have been met and the state is prepared to
move to the scheduled minimum content level:
new text end

new text begin (1) an American Society for Testing and Materials specification or equivalent federal
standard exists for the next minimum gasoline and biofuel blend;
new text end

new text begin (2) the next minimum content level is approved for sale by the United States
Environmental Protection Agency;
new text end

new text begin (3) a distributor who distributes or sells petroleum products in Minnesota has had adequate
time to ensure that all fuel-dispensing equipment is capable of dispensing and storing gasoline
containing up to the scheduled minimum biofuel content in subdivision 1, in conformance
with standards of the United States Environmental Protection Agency, rules adopted under
section 116.49, and the state fire code, considering factors such as the availability of
fuel-dispensing equipment and the availability of fuel-dispensing equipment installers and
service providers; and
new text end

new text begin (4) a distributor who distributes or sells petroleum products in Minnesota and who
operates two or fewer distribution locations in Minnesota or elsewhere has been afforded
a reasonable opportunity to obtain financial assistance for bringing fuel-dispensing equipment
into conformance with standards of the United States Environmental Protection Agency
and rules adopted under sections 116.49 and 299F.011.
new text end

Sec. 6.

Minnesota Statutes 2020, section 239.791, subdivision 2b, is amended to read:


Subd. 2b.

Limited liability waiver.

No motor fuel shall be deemed to be a defective
product by virtue of the fact that the motor fuel is formulated or blended pursuant to the
requirements of subdivision 1deleted text begin, paragraph (a), clause (1), item (ii),deleted text end under any theory of
liability except for simple or willful negligence or fraud. This subdivision does not preclude
an action for negligent, fraudulent, or willful acts. This subdivision does not affect a person
whose liability arises under chapter 115, water pollution control; 115A, waste management;
115B, environmental response and liability; 115C, leaking underground storage tanks; or
299J, pipeline safety; under public nuisance law for damage to the environment or the public
health; under any other environmental or public health law; or under any environmental or
public health ordinance or program of a municipality as defined in section 466.01.

Sec. 7.

Minnesota Statutes 2020, section 239.791, subdivision 2c, is amended to read:


Subd. 2c.

deleted text beginFuel dispensing equipmentdeleted text endnew text begin Fuel-dispensing labelingnew text end; blends over ten
percent deleted text beginethanoldeleted text endnew text begin biofuelnew text end.

deleted text begin Notwithstanding any other law or rule, fuel dispensing equipment
authorized to dispense fuel under subdivision 1, paragraph (a), clause (1), is authorized to
dispense fuel under subdivision 1, paragraph (a), clause (2), or subdivision 1a.
deleted text end new text begin Equipment
dispensing gasoline and biofuel blends under subdivision 1, paragraph (a), clause (2), item
(i), must be labeled according to Code of Federal Regulations, title 40, section 1090.1510.
new text end

Sec. 8.

Minnesota Statutes 2020, section 239.791, subdivision 3, is amended to read:


Subd. 3.

Blending restriction.

When gasoline contains an oxygenate, a person responsible
for the product shall not blend the product with deleted text beginethanoldeleted text endnew text begin biofuelnew text end or with any other oxygenate
after it is transferred or otherwise removed from a refinery or terminal.

Sec. 9.

Minnesota Statutes 2020, section 239.791, subdivision 7, is amended to read:


Subd. 7.

deleted text beginEthanoldeleted text endnew text begin Biofuelnew text end records; state audit.

The director shall audit the records of
registered deleted text beginethanoldeleted text endnew text begin biofuelnew text end blenders to ensure that each blender has met all requirements in
this chapter. Specific information or data relating to sales figures or to processes or methods
of production unique to the blender or that would tend to adversely affect the competitive
position of the blender must be only for the confidential use of the director, unless otherwise
specifically authorized by the registered blender.

Sec. 10.

Minnesota Statutes 2020, section 239.791, subdivision 8, is amended to read:


Subd. 8.

Disclosure.

(a) A refinery or terminal, shall provide, at the time gasoline is
sold or transferred from the refinery or terminal, a bill of lading or shipping manifest to the
person who receives the gasoline. For oxygenated gasoline, the bill of lading or shipping
manifest must include the identity and the volume percentage or gallons of oxygenate
included in the gasoline, and it must state: "This fuel contains an oxygenate. Do not blend
this fuel with ethanol or with any other oxygenate." For nonoxygenated gasoline deleted text beginsold or
transferred after September 30, 1997
deleted text end, the bill or manifest must state: "This fuel is not
oxygenated. It must not be sold at retail in Minnesota." This subdivision does not apply to
sales or transfers of gasoline between refineries, between terminals, or between a refinery
and a terminal.

(b) A delivery ticket required under section 239.092 for biofuel blended with gasoline
must state the volume percentage of biofuel blended into gasoline delivered through a meter
into a storage tank used for dispensing by persons not exempt under subdivisions 10 to deleted text begin14deleted text endnew text begin
16
new text end.

Sec. 11.

Minnesota Statutes 2020, section 239.791, subdivision 15, is amended to read:


Subd. 15.

Exemption for certain blend pumps.

(a)new text begin If subdivision 1, paragraph (a),
clause (1), is in effect,
new text end a person responsible for the product, who offers for sale, sells, or
dispenses nonoxygenated premium gasoline under one or more of the exemptions in
subdivisions 10 to 14, may sell, offer for sale, or dispense oxygenated gasoline that contains
less than the minimum amount of ethanol required under subdivision 1new text begin, paragraph (a), clause
(1),
new text end if all of the following conditions are met:

(1) the blended gasoline has an octane rating of 88 or greater;

(2) the gasoline is a blend of oxygenated gasoline meeting the requirements of subdivision
1new text begin, paragraph (a), clause (1),new text end with nonoxygenated premium gasoline;

(3) the blended gasoline contains not more than ten percent nonoxygenated premium
gasoline;

(4) the blending of oxygenated gasoline with nonoxygenated gasoline occurs within the
gasoline dispenser; and

(5) the gasoline station at which the gasoline is sold, offered for sale, or delivered is
equipped to store gasoline in not more than two storage tanks.

(b) This subdivision applies only to those persons who met the conditions in paragraph
(a), clauses (1) through (5), on August 1, 2004, and registered with the director by November
1, 2004.

Sec. 12.

Minnesota Statutes 2020, section 239.791, is amended by adding a subdivision
to read:


new text begin Subd. 17. new text end

new text begin Exemption for vehicles not approved to use more than ten percent
biofuel.
new text end

new text begin A person responsible for the product who offers for sale or sells gasoline and biofuel
blends at retail may provide one dispenser dispensing a gasoline and biofuel blend containing
9.2 to ten percent biofuel for use by motorists who cannot lawfully use a gasoline and biofuel
blend containing more than ten percent biofuel pursuant to waivers granted by the United
States Environmental Protection Agency under United States Code, title 42, section 7545.
Dispensers dispensing the blend allowed under this subdivision must be labeled "INTENDED
FOR USE IN 2000 AND OLDER PASSENGER VEHICLES". The label must be positioned
to clearly identify the control for selecting this product. Labeling under this subdivision is
not required for exemptions under subdivision 18.
new text end

Sec. 13.

Minnesota Statutes 2020, section 239.791, is amended by adding a subdivision
to read:


new text begin Subd. 18. new text end

new text begin Persons exempt from higher blending requirements; new fuel storage,
handling, and dispensing equipment.
new text end

new text begin A distributor who distributes or sells petroleum
products in Minnesota and who operates two or fewer distribution locations in Minnesota
or elsewhere may sell gasoline and biofuel blends containing 9.2 to ten percent biofuel at
distribution locations that do not have fuel-dispensing equipment capable of dispensing and
storing gasoline containing the biofuel content in subdivision 1 in conformance with standards
of the United States Environmental Protection Agency and rules adopted under sections
116.49 and 299F.011. This exemption does not apply to distribution locations with
fuel-dispensing equipment that have fuel-dispensing equipment capable of dispensing and
storing gasoline containing the biofuel content in subdivision 1 in conformance with standards
of the United States Environmental Protection Agency and rules adopted under sections
116.49 and 299F.011.
new text end