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HF 3411

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

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

Current Version - 1st Engrossment

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A bill for an act
relating to motor fuels; updating standards for petroleum products; providing for
use of number to advertise grade of gasoline; amending Minnesota Statutes
2006, sections 239.751, by adding a subdivision; 296A.01, subdivisions 19, 35;
Minnesota Statutes 2007 Supplement, sections 239.761; 239.77, subdivision 1;
296A.01, subdivisions 7, 8, 8a, 14, 20, 23, 24, 25, 26, 28.

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:


new text begin Subd. 8. new text end

new text begin Use of number to advertise grade of gasoline. new text end

new text begin If a number is used to
advertise or identify a grade of gasoline, that number can only be less than or equal to
the octane of the gasoline being advertised or identified.
new text end

Sec. 2.

Minnesota Statutes 2007 Supplement, 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
deleted text begin D4814-06deleted text endnew text begin D4814-07bnew text end. 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 deleted text beginD4814-06deleted text endnew text begin D4814-07bnew text end, or the gasoline base
stock from which a gasoline-ethanol blend was produced must comply with ASTM
specification deleted text beginD4814-06deleted text endnew text begin D4814-07bnew text end; 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 deleted text beginD4806-06cdeleted text endnew text begin
D4806-07a
new text end. 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 deleted text beginD4814-06deleted text endnew text begin D4814-07bnew text end. 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
deleted text begin D396-05adeleted text endnew text begin D396-07new text end.

Subd. 8.

Diesel fuel oil.

Diesel fuel oil must comply with ASTM specification
deleted text begin D975-06bdeleted text endnew text begin D975-07bnew text end.

Subd. 9.

Kerosene.

Kerosene must comply with ASTM specification deleted text beginD3699-06deleted text endnew text begin
D3699-07
new text end.

Subd. 10.

Aviation gasoline.

Aviation gasoline must comply with ASTM
specification deleted text beginD910-04adeleted text endnew text begin D910-07anew text end.

Subd. 11.

Aviation turbine fuel, jet fuel.

Aviation turbine fuel and jet fuel must
comply with ASTM specification deleted text beginD1655-06adeleted text endnew text begin D1655-07e1new text end.

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 deleted text beginD5798-99 (2004)deleted text endnew text begin D5798-07new text end.

Subd. 14.

M85.

A blend of methanol and gasoline, containing at least deleted text begin85deleted text endnew text begin 70new text end percent
methanolnew text begin and not more than 85 percent methanolnew text end, produced for use as a motor fuel in
alternative fuel vehicles as defined in section 296A.01, subdivision 5, must comply with
ASTM specification deleted text beginD5797-96deleted text endnew text begin D5797-07new text end.

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 deleted text beginD6751-07deleted text endnew text begin D6751-07bnew text end for Biodiesel Fuel (B100) Blend Stock for Distillate
Fuels.

new text begin Subd. 17. new text end

new text begin Grade 82 unleaded aviation gasoline. new text end

new text begin Grade 82 unleaded aviation
gasoline must comply with ASTM specification D6227-04a.
new text end

Sec. 3.

Minnesota Statutes 2007 Supplement, 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
deleted text begin D6751-07deleted text endnew text begin D6751-07bnew text end for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels.

Sec. 4.

Minnesota Statutes 2007 Supplement, section 296A.01, subdivision 7, is
amended to read:


Subd. 7.

Aviation gasoline.

"Aviation gasoline" means any gasoline that is capable
of use for the purpose of producing or generating power for propelling internal combustion
engine aircraft, that meets the specifications in ASTM specification deleted text beginD910-04adeleted text endnew text begin D910-07anew text end,
and that either:

(1) is invoiced and billed by a producer, manufacturer, refiner, or blender to a
distributor or dealer, by a distributor to a dealer or consumer, or by a dealer to consumer,
as "aviation gasoline"; or

(2) whether or not invoiced and billed as provided in clause (1), is received, sold,
stored, or withdrawn from storage by any person, to be used for the purpose of producing
or generating power for propelling internal combustion engine aircraft.

Sec. 5.

Minnesota Statutes 2007 Supplement, section 296A.01, subdivision 8, is
amended to read:


Subd. 8.

Aviation turbine fuel and jet fuel.

"Aviation turbine fuel" and "jet
fuel" mean blends of hydrocarbons derived from crude petroleum, natural gasoline, and
synthetic hydrocarbons, intended for use in aviation turbine engines, and that meet the
specifications in ASTM specification deleted text beginD1655-06adeleted text endnew text begin D1655-07e1new text end.

Sec. 6.

Minnesota Statutes 2007 Supplement, section 296A.01, subdivision 8a, is
amended 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 deleted text beginD6751-07deleted text endnew text begin D6751-07bnew text end
for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels.

Sec. 7.

Minnesota Statutes 2007 Supplement, 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 ASTM specification deleted text beginD975-06bdeleted text endnew text begin D975-07bnew text end.

Sec. 8.

Minnesota Statutes 2006, section 296A.01, subdivision 19, is amended to read:


Subd. 19.

E85.

"E85" means a petroleum product that is a blend of agriculturally
derived denatured ethanol and gasoline or natural gasoline that typically contains 85
percent ethanol by volume, but at a minimum must contain 60 percent ethanol by
volume. For the purposes of this chapter, the energy content of E85 will be considered
to be 82,000 BTUs per gallon. E85 produced for use as a motor fuel in alternative fuel
vehicles as defined in subdivision 5 must comply with ASTM specification deleted text beginD5798-99
(2004)
deleted text endnew text begin D5798-07new text end.

Sec. 9.

Minnesota Statutes 2007 Supplement, section 296A.01, subdivision 20, is
amended to read:


Subd. 20.

Ethanol, denatured.

"Ethanol, denatured" means ethanol that is to
be blended with gasoline, has been agriculturally derived, and complies with ASTM
specification deleted text beginD4806-06cdeleted text endnew text begin D4806-07anew text end. This includes the requirement that ethanol may be
denatured only as specified in Code of Federal Regulations, title 27, parts 20 and 21.

Sec. 10.

Minnesota Statutes 2007 Supplement, section 296A.01, subdivision 23,
is amended to read:


Subd. 23.

Gasoline.

(a) "Gasoline" means:

(1) all products commonly or commercially known or sold as gasoline regardless of
their classification or uses, except casinghead gasoline, absorption gasoline, condensation
gasoline, drip gasoline, or natural gasoline that under the requirements of section 239.761,
subdivision 3
, must not be blended with gasoline that has been sold, transferred, or
otherwise removed from a refinery or terminal; and

(2) any liquid prepared, advertised, offered for sale or sold for use as, or commonly
and commercially used as, a fuel in spark-ignition, internal combustion engines, and that
when tested by the Weights and Measures Division meets the specifications in ASTM
specification deleted text beginD4814-06deleted text endnew text begin D4814-07bnew text end.

(b) Gasoline that is not blended with ethanol must not be contaminated with water or
other impurities and must comply with both ASTM specification deleted text beginD4814-06deleted text endnew text begin D4814-07bnew text end
and the volatility requirements in Code of Federal Regulations, title 40, part 80.

(c) 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 24;

(2) must not blend the gasoline with any oxygenate other than denatured,
agriculturally derived ethanol;

(3) must not blend the gasoline with other petroleum products that are not gasoline
or denatured, agriculturally derived ethanol;

(4) must 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.

Sec. 11.

Minnesota Statutes 2007 Supplement, section 296A.01, subdivision 24,
is amended to read:


Subd. 24.

Gasoline blended with nonethanol oxygenate.

"Gasoline blended with
nonethanol oxygenate" means gasoline blended with ETBE, MTBE, or other alcohol
or ether, except denatured ethanol, that is approved as an oxygenate by the EPA, and
that complies with ASTM specification deleted text beginD4814-06deleted text endnew text begin D4814-07bnew text end. Oxygenates, other than
denatured ethanol, must not be blended into gasoline after the gasoline has been sold,
transferred, or otherwise removed from a refinery or terminal.

Sec. 12.

Minnesota Statutes 2007 Supplement, 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 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
deleted text begin D4814-06deleted text endnew text begin D4814-07bnew text end, or the gasoline base stock from which a gasoline-ethanol blend
was produced must comply with ASTM specification deleted text beginD4814-06deleted text endnew text begin D4814-07bnew text end; 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 deleted text beginD4814-06deleted text endnew text begin D4814-07bnew text end 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.

Sec. 13.

Minnesota Statutes 2007 Supplement, section 296A.01, subdivision 26,
is amended to read:


Subd. 26.

Heating fuel oil.

"Heating fuel oil" means a petroleum distillate, blend
of petroleum distillates and residuals, or petroleum residual heating fuel that meets the
specifications in ASTM specification deleted text beginD396-05adeleted text endnew text begin D396-07new text end.

Sec. 14.

Minnesota Statutes 2007 Supplement, section 296A.01, subdivision 28,
is amended to read:


Subd. 28.

Kerosene.

"Kerosene" means a refined petroleum distillate consisting of
a homogeneous mixture of hydrocarbons essentially free of water, inorganic acidic and
basic compounds, and excessive amounts of particulate contaminants and that meets the
specifications in ASTM specification deleted text beginD3699-06deleted text endnew text begin D3699-07new text end.

Sec. 15.

Minnesota Statutes 2006, section 296A.01, subdivision 35, is amended to read:


Subd. 35.

M85.

"M85" means a petroleum product that is a liquid fuel blend of
methanol and gasoline that contains at least new text begin70 percent methanol and not more than new text end85
percent methanol by volume. For the purposes of this chapter, the energy content of
M85 will be considered to be 65,000 BTUs per gallon. M85 produced for use as a motor
fuel in alternative fuel vehicles, as defined in subdivision 5, must comply with ASTM
specification deleted text beginD 5797-96deleted text endnew text begin D5797-07new text end.