HF 2730

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to motor fuels; establishing minimum content 
  1.3             of biodiesel fuel oil in certain motor vehicle fuels; 
  1.4             amending Minnesota Statutes 2000, section 296A.08, 
  1.5             subdivision 2; proposing coding for new law in 
  1.6             Minnesota Statutes, chapter 239.  
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [239.77] [BIODIESEL MANDATE; EXCEPTION.] 
  1.9      Subdivision 1.  [BIODIESEL FUEL OIL DEFINED.] "Biodiesel 
  1.10  fuel oil" means a biodegradable, combustible liquid fuel derived 
  1.11  from vegetable oils or animal fats that meets ASTM 
  1.12  specifications PS 121-99 and is suitable for blending with 
  1.13  diesel fuel oil for use in internal combustion diesel engines. 
  1.14     Subd. 2.  [MINIMUM CONTENT; EFFECTIVE DATE.] On and after 
  1.15  July 1, 2002, all diesel fuel sold or offered for sale in 
  1.16  Minnesota for use in internal combustion engines must contain at 
  1.17  least 2.0 percent biodiesel fuel oil by volume. 
  1.18     Subd. 3.  [EXEMPTION.] The minimum content requirements of 
  1.19  subdivision 2 do not apply to fuel used in motors located at an 
  1.20  electric generating plant in the state regulated by the federal 
  1.21  Nuclear Regulatory Commission.  This exemption expires 30 days 
  1.22  after the Nuclear Regulatory Commission has approved the use of 
  1.23  biodiesel fuel in such motors. 
  1.24     Sec. 2.  Minnesota Statutes 2000, section 296A.08, 
  1.25  subdivision 2, is amended to read: 
  1.26     Subd. 2.  [RATE OF TAX.] The special fuel excise tax is 
  2.1   imposed at the following rates: 
  2.2      (1) Liquefied petroleum gas or propane is taxed at the rate 
  2.3   of 15 cents per gallon. 
  2.4      (2) Liquefied natural gas is taxed at the rate of 12 cents 
  2.5   per gallon. 
  2.6      (3) Compressed natural gas is taxed at the rate of $1.739 
  2.7   per thousand cubic feet; or 20 cents per gasoline equivalent, as 
  2.8   defined by the National Conference on Weights and Measures, 
  2.9   which is 5.66 pounds of natural gas. 
  2.10     (4) Diesel fuel containing at least 2.0 percent biodiesel 
  2.11  fuel oil by volume is taxed at the same rate as the gasoline 
  2.12  excise tax rate except that the commissioner shall monitor the 
  2.13  comparative cost of producing and distributing biodiesel blended 
  2.14  fuel and 15 days before each fiscal quarter shall announce a 
  2.15  temporary adjustment to the excise tax rate for the following 
  2.16  fiscal quarter to minimize any retail cost disparity between 
  2.17  petroleum diesel fuel and biodiesel blended fuel. 
  2.18     (5) All other special fuel is taxed at the same rate as the 
  2.19  gasoline excise tax as specified in section 296A.07, subdivision 
  2.20  2.  The tax is payable in the form and manner prescribed by the 
  2.21  commissioner.