HF 2045

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to motor fuels; requiring person fueling a motor vehicle remain close
to dispenser nozzle; updating specifications for petroleum products; modifying
definitions of certain petroleum terms; amending Minnesota Statutes 2006,
sections 239.751, by adding a subdivision; 239.761; 239.77, subdivisions 1, 2;
296A.01, subdivisions 14, 25, 42, by adding a subdivision; repealing Minnesota
Statutes 2006, section 239.101, subdivision 7.

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

Section 1.

Minnesota Statutes 2006, section 239.751, is amended by adding a
subdivision to read:

Subd. 6a.

Person must be present when fueling; sign, penalty.

(a) A person must
be in close attendance to the dispenser nozzle while fuel is being dispensed into a motor
vehicle. No civil or criminal penalties apply to violations of this subdivision.

(b) A person who sells petroleum product at retail to the public for use in motor
vehicles as defined in section 296A.01, subdivision 21:

(1) shall post signs in the locations described in subdivision 5 that state: "A person
fueling a motor vehicle must be in close attendance to the dispenser nozzle during the
fueling process."; and

(2) may discontinue fuel services to a person who violates paragraph (a).

Sec. 2.

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

239.761 PETROLEUM PRODUCT SPECIFICATIONS.

Subdivision 1.

Applicability.

A person responsible for the product must meet the
specifications in this section. The specifications apply to petroleum products processed,
held, stored, imported, transferred, distributed, offered for distribution, offered for sale or
use, or sold in Minnesota.

Subd. 2.

Coordination with Departments of Revenue and Agriculture.

The
petroleum product specifications in this section are intended to match the definitions and
specifications in sections 41A.09 and 296A.01. Petroleum products named in this section
are defined in section 296A.01.

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
D4814-04a D4814-06. 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.

Subd. 4.

Gasoline blended with ethanol.

(a) Gasoline may be blended with up
to ten percent, by volume, 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 D4814-04a D4814-06, or the gasoline base
stock from which a gasoline-ethanol blend was produced must comply with ASTM
specification D4814-04a D4814-06; 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.

Subd. 5.

Denatured ethanol.

Denatured ethanol that is to be blended with gasoline
must be agriculturally derived and must comply with ASTM specification D4806-04a.
This includes the requirement that ethanol may be denatured only as specified in Code of
Federal Regulations, title 27, parts 20 and 21.

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 D4814-04a D4814-06. Nonethanol oxygenates must not be blended into
gasoline after the gasoline has been sold, transferred, or otherwise removed from a
refinery or terminal.

Subd. 7.

Heating fuel oil.

Heating fuel oil must comply with ASTM specification
D396-02a D395-05.

Subd. 8.

Diesel fuel oil.

Diesel fuel oil must comply with ASTM specification
D975-04b, except that diesel fuel oil is not required to meet the diesel lubricity standard
until the date that the biodiesel fuel requirement in section 239.77, subdivision 2, becomes
effective or December 31, 2005, whichever comes first D975-06.

Subd. 9.

Kerosene.

Kerosene must comply with ASTM specification D3699-03.

Subd. 10.

Aviation gasoline.

Aviation gasoline must comply with ASTM
specification D910-04 D910-04a.

Subd. 11.

Aviation turbine fuel, jet fuel.

Aviation turbine fuel and jet fuel must
comply with ASTM specification D1655-04 D1655-06a.

Subd. 12.

Gas turbine fuel oil.

Fuel oil for use in nonaviation gas turbine engines
must comply with ASTM specification D2880-03.

Subd. 13.

E85.

A blend of ethanol and gasoline, containing at least 60 percent
ethanol and not more than 85 percent ethanol, produced for use as a motor fuel in
alternative fuel vehicles as defined in section 296A.01, subdivision 5, must comply with
ASTM specification D5798-99 (2004).

Subd. 14.

M85.

A blend of methanol and gasoline, containing at least 85 percent
methanol, produced for use as a motor fuel in alternative fuel vehicles as defined in section
296A.01, subdivision 5, must comply with ASTM specification D5797-96.

Subd. 15.

Biodiesel blend definition.

"Biodiesel blend" means a blend of diesel
fuel and biodiesel fuel at a ratio designated by "BXX" where "XX" represents the volume
percent of biodiesel fuel in the blend.

Subd. 16.

Biodiesel fuel definition.

"Biodiesel fuel" means a renewable,
biodegradable, mono alkyl ester combustible liquid that is derived from agricultural plant
oils or animal fats and that meets American Society for Testing and Materials (ASTM)
specification D6751-06e1 for biodiesel (B100) blend stock for distillate fuels.

Sec. 3.

Minnesota Statutes 2006, section 239.77, subdivision 1, is amended to read:

Subdivision 1.

Biodiesel fuel.

"Biodiesel fuel" means a renewable, biodegradable,
mono alkyl ester combustible liquid fuel that is derived from agricultural plant oils or
animal fats and that meets American Society For Testing and Materials Specification
D6751-02 D6751-06e1 for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels.

Sec. 4.

Minnesota Statutes 2006, section 239.77, subdivision 2, is amended to read:

Subd. 2.

Minimum content; effective date.

(a) Except as otherwise provided
in this section, all diesel fuel sold or offered for sale in Minnesota for use in internal
combustion engines must contain at least 2.0 percent biodiesel fuel oil by volume.

(b) The mandate in paragraph (a) is effective on and after the date that the conditions
in clauses (1) and (2), or in clauses (1) and (3), have been met:

(1) 30 or more days have passed since the commissioner of agriculture publishes
notice in the State Register that annual capacity in Minnesota for the production of
biodiesel fuel oil exceeds 8,000,000 gallons;

(2) 18 months have passed since the commissioner of agriculture publishes notice in
the State Register that a federal action on taxes imposed, tax credits, or otherwise, creates
a reduction in the price of two cents or more per gallon on taxable fuel that contains at
least two percent biodiesel fuel oil and is sold in this state;

(3) the date June 30, 2005, has passed.

Sec. 5.

Minnesota Statutes 2006, section 296A.01, is amended by adding a subdivision
to read:

Subd. 8a.

Biodiesel fuel.

"Biodiesel fuel" means a renewable, biodegradable, mono
alkyl ester combustible liquid fuel derived from agricultural plant oils or animal fats
and that meets American Society for Testing and Materials Specification D6751-6e1 for
Biodiesel Fuel (B100) Blend Stock for Distillate Fuels.

EFFECTIVE DATE.

This section is effective July 1, 2007.

Sec. 6.

Minnesota Statutes 2006, section 296A.01, subdivision 14, is amended to read:

Subd. 14.

Diesel fuel oil.

"Diesel fuel oil" means a petroleum distillate or blend of
petroleum distillate and residual fuels, that is intended for use as a motor fuel in internal
combustion diesel engines, and that meets the specifications in ASTM specification
D975-04b, except that diesel fuel oil is not required to meet the diesel lubricity standard
until the date that the biodiesel fuel requirement in section 239.77, subdivision 2, becomes
effective or December 31, 2005, whichever comes first. Diesel fuel includes number 1
and number 2 fuel oils. K-1 kerosene is not diesel fuel unless it is blended with diesel
fuel for use in motor vehicles D975-06.

EFFECTIVE DATE.

This section is effective July 1, 2007.

Sec. 7.

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

Subd. 25.

Gasoline blended with ethanol.

"Gasoline blended with ethanol" means
gasoline blended with up to ten 20 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 D4814-06, or the gasoline base stock from which a gasoline-ethanol blend
was produced must comply with ASTM specification D4814-04a D4814-06; 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 D4814-06 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.

EFFECTIVE DATE.

This section is effective July 1, 2007.

Sec. 8.

Minnesota Statutes 2006, section 296A.01, subdivision 42, is amended to read:

Subd. 42.

Petroleum products.

"Petroleum products" means all of the products
defined in subdivisions 2, 7, 8, 8a, 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35.

EFFECTIVE DATE.

This section is effective July 1, 2007.

Sec. 9. REPEALER.

Minnesota Statutes 2006, section 239.101, subdivision 7, is repealed.