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Minnesota Legislature

Office of the Revisor of Statutes

HF 2614

as introduced - 90th Legislature (2017 - 2018) Posted on 04/27/2017 02:19pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 04/24/2017

Current Version - as introduced

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A bill for an act
relating to agriculture; delaying the 20 percent biodiesel minimum content
requirement by two years; amending Minnesota Statutes 2016, section 239.77,
subdivision 2.

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)
September 29, 2005
2 percent
(2)
May 1, 2009
5 percent
(3)
May 1, 2012
10 percent
(4)
May 1, deleted text begin2018deleted text endnew text begin 2020
new text end
20 percent

The minimum content levels in clauses (3) and (4) are effective during the months of
April, 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.

(b) The minimum content levels in paragraph (a), clauses (3) and (4), 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.

(c) The commissioners of agriculture, commerce, and pollution control must consult
with the biodiesel task force when assessing and certifying conditions in paragraph (b), and
in general must seek the guidance of the biodiesel task force regarding biodiesel labeling,
enforcement, and other related issues.

(d) 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 may
temporarily suspend the minimum content requirement in subdivision 2 until there is
sufficient biodiesel fuel, as defined in subdivision 1, available to fulfill the minimum content
requirement.

(e) 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 in subdivision 2. The
biodiesel mandate must not be adjusted to less than five percent.