HF 3000

as introduced - 90th Legislature (2017 - 2018) Posted on 02/22/2018 01:23pm

A bill for an act
relating to biodiesel; eliminating the 20 percent content mandate; suspending the
content mandate during certain forecasted weather conditions; making permanent
the exemption for Number 1 diesel fuel; 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)	September 29, 2005	2 percent
(2)	May 1, 2009	5 percent
(3)	May 1, 2012	10 percent
deleted text begin (4) deleted text end	deleted text begin May 1, 2018 deleted text end	deleted text begin 20 percent deleted text end

The minimum content deleted text begin levels deleted text end new text begin level new text end in deleted text begin clauses deleted text end new text begin clause new text end (3) deleted text begin and (4) are deleted text end new text begin is new text end 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 deleted text begin those clauses deleted text end
new text begin clause (3) new text end 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 deleted text begin those clauses deleted text end new text begin clause (3) new text end to be effective year-round.

deleted text begin (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:
deleted text end

deleted text begin (1) an American Society for Testing and Materials specification or equivalent federal
standard exists for the next minimum diesel-biodiesel blend;
deleted text end

deleted text begin (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;
deleted text end

deleted text begin (3) adequate blending infrastructure and regulatory protocol are in place in order to
promote biodiesel quality and avoid any potential economic disruption; and
deleted text end

deleted text begin (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.
deleted text end

deleted text begin The condition in clause (2) may be waived if the commissioner finds that, due to
weather-related conditions, the necessary feed stock is unavailable.
deleted text end

deleted text begin 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 end

deleted text begin (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.
deleted text end

deleted text begin (d) deleted text end new text begin (b) 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 may
temporarily suspend the minimum content requirement in deleted text begin subdivision 2 deleted text end new text begin 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 (c) The minimum content requirement in paragraph (a) is temporarily suspended statewide
during any period of time that the ambient air temperature in any part of the state is
forecasted, as determined by the commissioner of commerce in consultation with the
commissioner of transportation, to be:
new text end

new text begin (1) below zero degrees Celsius for 24 consecutive hours or more; or
new text end

new text begin (2) below negative ten degrees Celsius.
new text end

new text begin The commissioner of commerce must adequately notify the public when a suspension
required under this paragraph is in effect.
new text end

deleted text begin (e) deleted text end new text begin (d) 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 in subdivision 2. 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

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective the day following final enactment.
new text end