Minnesota Legislature
HF 2217
as introduced - 90th Legislature (2017 - 2018) Posted on 04/18/2017 01:35pm
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A bill for an act
relating to commerce; modifying the biodiesel content mandate; amending
Minnesota Statutes 2016, section 239.77, subdivisions 2, 3a.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2016, section 239.77, subdivision 2, is amended to read:
Subd. 2.
Minimum content.
(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 the stated percentage of biodiesel fuel oil by volume on and after the following
dates:
| (1) |
deleted text begin
September 29, 2005 deleted text end |
deleted text begin
2 percent deleted text end |
|
|
deleted text begin
(2) deleted text end |
deleted text begin
May 1, 2009 deleted text end |
deleted text begin
5 percent deleted text end |
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|
deleted text begin
(3) deleted text end |
May 1, 2012 |
10 percent |
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|
deleted text begin
(4)
deleted text end
new text begin
(2) new text end |
May 1, deleted text begin 2018deleted text end new text begin 2019 new text end |
20 percent |
new text begin (b) new text end The minimum content levels innew text begin paragraph (a),new text end clauses deleted text begin (3)deleted text end new text begin (1)new text end and deleted text begin (4)deleted text end new text begin (2),new text end are effective
during the months of deleted text begin April,deleted text end May, June, July, August, and September only. The minimum
content for the remainder of the year is five percent. However, if the commissioners of
agriculture, commerce, and pollution control determine, after consultation with the biodiesel
task force and other technical experts, that an American Society for Testing and Materials
specification or equivalent federal standard exists for the specified biodiesel blend level in
those clauses that adequately addresses technical issues associated with Minnesota's cold
weather and publish a notice in the State Register to that effect, the commissioners may
allow the specified biodiesel blend level in those clauses to be effective year-round.
deleted text begin (b)deleted text end new text begin (c)new text end The minimum content levels in paragraph (a), clauses deleted text begin (3)deleted text end new text begin (1)new text end and deleted text begin (4)deleted text end new text begin (2)new text end , become
effective on the date specified only if the commissioners of agriculture, commerce, and
pollution control publish notice in the State Register and provide written notice to the chairs
of the house of representatives and senate committees with jurisdiction over agriculture,
commerce, and transportation policy and finance, at least 270 days prior to the date of each
scheduled increase, that all of the following conditions have been met and the state is
prepared to move to the next scheduled minimum content level:
(1) an American Society for Testing and Materials specification or equivalent federal
standard exists for the next minimum diesel-biodiesel blend;
(2) a sufficient supply of biodiesel is available and the amount of biodiesel produced in
this state from feedstock with at least 75 percent that is produced in the United States and
Canada is equal to at least 50 percent of anticipated demand at the next minimum content
level;
(3) adequate blending infrastructure and regulatory protocol are in place in order to
promote biodiesel quality and avoid any potential economic disruption; and
(4) at least five percent of the amount of biodiesel necessary for that minimum content
level will be produced from a biological resource other than an agricultural resource
traditionally grown or raised in the state, including, but not limited to, algae cultivated for
biofuels production, waste oils, and tallow.
The condition in clause (2) may be waived if the commissioner finds that, due to
weather-related conditions, the necessary feed stock is unavailable.
The condition in clause (4) may be waived if the commissioners find that the use of
these nontraditional feedstocks would be uneconomic under market conditions existing at
the time notice is given under this paragraph.
deleted text begin (c)deleted text end new text begin (d)new text end The commissioners of agriculture, commerce, and pollution control must consult
with the biodiesel task force when assessing and certifying conditions in paragraph deleted text begin (b)deleted text end new text begin (c)new text end ,
and in general must seek the guidance of the biodiesel task force regarding biodiesel labeling,
enforcement, and other related issues.
deleted text begin (d)deleted text end new text begin (e)new text end During a period of biodiesel fuel shortage or a problem with biodiesel quality
that negatively affects the availability of biodiesel fuel, the commissioner of commerce deleted text begin may
temporarilydeleted text end new text begin mustnew text end suspend the minimum content requirement deleted text begin in subdivision 2deleted text end new text begin under paragraph
(a)new text end until there is sufficient biodiesel fuel, as defined in subdivision 1, available to fulfill the
minimum content requirement.
new text begin
(f) The commissioner of commerce must temporarily suspend the minimum content
requirement under paragraph (a) for the duration of any period during which the federal
biodiesel mixture credit under United States Code, title 26, section 6426(c), is not being
paid. The minimum biodiesel content requirement during a suspension period under this
paragraph is reduced to (1) ten percent during the months of May, June, July, August, and
September, and (2) five percent for the remainder of the year.
new text end
deleted text begin (e)deleted text end new text begin (g)new text end By February 1, 2012, and periodically thereafter, the commissioner of commerce
shall determine the wholesale diesel price at various pipeline and refinery terminals in the
region, and the biodiesel price determined after credits and incentives are subtracted at
biodiesel plants in the region. The commissioner shall report wholesale price differences
to the governor who, after consultation with the commissioners of commerce and agriculture,
may by executive order adjust the biodiesel mandate if a price disparity reported by the
commissioner will cause economic hardship to retailers of diesel fuel in this state. Any
adjustment must be for a specified period of time, after which the percentage of biodiesel
fuel to be blended into diesel fuel returns to the amount required deleted text begin in subdivision 2deleted text end new text begin under
paragraph (a)new text end . The biodiesel mandate must not be adjusted to less than five percent.
Sec. 2.
Minnesota Statutes 2016, section 239.77, subdivision 3a, is amended to read:
Subd. 3a.
Number 1 diesel fuel exempt.
deleted text begin (a)deleted text end The minimum content requirements of
subdivision 2 do not apply to Number 1 diesel fuel.
deleted text begin
(b) This subdivision expires May 1, 2020.
deleted text end