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HF 634

2nd Engrossment - 88th Legislature (2013 - 2014) Posted on 05/06/2013 08:04am

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

Current Version - 2nd Engrossment

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A bill for an act
relating to commerce; weights and measures; adding a requirement for identical
product pricing; making technical updates to bring state into compliance with
most recent federal fuel standards; establishing a minimum octane rating;
modifying disclosure requirements for biodiesel and biofuel blends; modifying
E85 requirements; amending Minnesota Statutes 2012, sections 239.751, by
adding a subdivision; 239.761, subdivisions 3, 4, 5, 6, 7, 8, 10, 11, 13, 16, 17, by
adding a subdivision; 239.77, subdivisions 1, 4; 239.791, subdivision 8.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 239.751, is amended by adding a
subdivision to read:


new text begin Subd. 9. new text end

new text begin Identical pricing product requirement. new text end

new text begin Petroleum product dispensed
from a single storage tank or from multiple storage tanks that are joined in such a manner
that the product is commingled while still in the tanks must have an identical base price at
each retail dispenser from which it is offered for sale. This requirement does not preclude
the application of discounts for cash, self-service, customer loyalty programs, or other
discount programs on any basis except octane to the base price at each dispenser.
new text end

new text begin For the purpose of this subdivision, "base price" means the highest unit price of a
petroleum product dispensed from a single storage tank or from multiple storage tanks
that are joined in such a manner that the product is commingled while still in the tanks,
including taxes and fees, and before the application of discounts, including, but not limited
to, discounts for cash, self-service, customer loyalty programs, and coupons.
new text end

Sec. 2.

Minnesota Statutes 2012, section 239.761, subdivision 3, is amended to read:


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 beginD4814-08bdeleted text endnew text begin D4814-11bnew 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.

Sec. 3.

Minnesota Statutes 2012, section 239.761, subdivision 4, is amended to read:


Subd. 4.

Gasoline blended with ethanol; general.

(a) Gasoline may be blended
with 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 beginD4814-08bdeleted text endnew text begin D4814-11bnew text end, or the gasoline base
stock from which a gasoline-ethanol blend was produced must comply with ASTM
specification deleted text beginD4814-08bdeleted text endnew text begin D4814-11bnew 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.

Sec. 4.

Minnesota Statutes 2012, section 239.761, subdivision 5, is amended to read:


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 beginD4806-08
deleted text endnew text begin D4806-11anew 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. 5.

Minnesota Statutes 2012, section 239.761, subdivision 6, is amended to read:


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 beginD4814-08bdeleted text endnew text begin D4814-11bnew 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.

Sec. 6.

Minnesota Statutes 2012, section 239.761, subdivision 7, is amended to read:


Subd. 7.

Heating fuel oil.

Heating fuel oil must comply with ASTM specification
deleted text beginD396-08bdeleted text endnew text begin D396-12new text end.

Sec. 7.

Minnesota Statutes 2012, section 239.761, subdivision 8, is amended to read:


Subd. 8.

Diesel fuel oil.

deleted text begin Diesel fuel oil must comply with ASTM specification
D975-07b.
deleted text end new text begin (a) When diesel fuel oil is not blended with biodiesel, it must comply with
ASTM specification D975-12a.
new text end

new text begin (b) When diesel fuel oil is a blend of up to five volume percent biodiesel, the diesel
component must comply with ASTM specification D975-12a and the biodiesel component
must comply with ASTM specification D675-11b.
new text end

Sec. 8.

Minnesota Statutes 2012, section 239.761, subdivision 10, is amended to read:


Subd. 10.

Aviation gasoline.

Aviation gasoline must comply with ASTM
specification deleted text beginD910-07adeleted text endnew text begin D910-11new text end.

Sec. 9.

Minnesota Statutes 2012, section 239.761, subdivision 11, is amended to read:


Subd. 11.

Aviation turbine fuel, jet fuel.

Aviation turbine fuel and jet fuel must
comply with ASTM specification deleted text beginD1655-08adeleted text endnew text begin D1655-12new text end.

Sec. 10.

Minnesota Statutes 2012, section 239.761, subdivision 13, is amended to read:


Subd. 13.

E85.

A blend of ethanol and gasoline, containing deleted text beginat least 60 percent
deleted text end deleted text beginethanol anddeleted text end 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 beginD5798-07deleted text endnew text begin D5798-11new text end.

Sec. 11.

Minnesota Statutes 2012, section 239.761, subdivision 16, is amended to read:


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 beginD6751-08deleted text endnew text begin D6751-11bnew text end for Biodiesel Fuel (B100) Blend Stock for Distillate
Fuels.

Sec. 12.

Minnesota Statutes 2012, section 239.761, subdivision 17, is amended to read:


Subd. 17.

Grade 82 unleaded aviation gasoline.

Grade 82 unleaded aviation
gasoline must comply with ASTM specification deleted text beginD6227-04adeleted text endnew text begin D6227-12new text end.

Sec. 13.

Minnesota Statutes 2012, section 239.761, is amended by adding a subdivision
to read:


new text begin Subd. 18. new text end

new text begin Minimum octane rating. new text end

new text begin The minimum (R+M)/2 octane rating grades
for petroleum products under subdivision 3, 4, 4a, 4b, or 6 sold to an end user shall be
no less than 87.
new text end

Sec. 14.

Minnesota Statutes 2012, section 239.77, subdivision 1, is amended to read:


Subdivision 1.

Biodiesel blend and fuel.

(a) "Biodiesel blend" is a blend of diesel
fuel and biodiesel fuel between six percent and 20 percent for on-road and off-road
diesel-fueled vehicle use. Biodiesel blend must comply with ASTM specification
deleted text beginD7467-08deleted text endnew text begin D7467-10new text end.

(b) "Biodiesel fuel" means a renewable, biodegradable, mono alkyl ester combustible
liquid fuel that is derived from agricultural and other plant oils or animal fats and that
meets American Society for Testing and Materials specification deleted text beginD6751-08deleted text endnew text begin D6751-11bnew text end for
Biodiesel Fuel (B100) Blend Stock for Distillate Fuels.

(c) Biodiesel produced from palm oil is not biodiesel fuel for the purposes of this
section, unless the palm oil is contained within waste oil and grease collected within the
United States or Canada.

Sec. 15.

Minnesota Statutes 2012, section 239.77, subdivision 4, is amended to read:


Subd. 4.

Disclosure.

new text begin(a) new text endA refinery or terminal shall provide, at the time diesel fuel
is sold or transferred from the refinery or terminal, a bill of lading or shipping manifest
to the person who receives the fuel. For biodiesel-blended products, the bill of lading or
shipping manifest must disclose biodiesel content, stating volume percentage, gallons of
biodiesel per gallons of petroleum diesel base-stock, or an ASTM "Bxx" designation
where "xx" denotes the volume percent biodiesel included in the blended product. This
subdivision does not apply to sales or transfers of biodiesel blend stock between refineries,
between terminals, or between a refinery and a terminal.

new text begin (b) A delivery ticket required under section 239.092 for a biodiesel blend must state
the volume percent of biodiesel blended into the diesel fuel delivered through a meter into
a storage tank used for dispensing into motor vehicles powered by an internal combustion
engine and not exempt under subdivision 3.
new text end

Sec. 16.

Minnesota Statutes 2012, section 239.791, subdivision 8, is amended to read:


Subd. 8.

Disclosure.

new text begin(a) new text endA refinery or terminal, shall provide, at the time gasoline
is sold or transferred from the refinery or terminal, a bill of lading or shipping manifest
to the person who receives the gasoline. For oxygenated gasoline, the bill of lading or
shipping manifest must include the identity and the volume percentage or gallons of
oxygenate included in the gasoline, and it must state: "This fuel contains an oxygenate.
Do not blend this fuel with ethanol or with any other oxygenate." For nonoxygenated
gasoline sold or transferred after September 30, 1997, the bill or manifest must state:
"This fuel is not oxygenated. It must not be sold at retail in Minnesota." This subdivision
does not apply to sales or transfers of gasoline between refineries, between terminals, or
between a refinery and a terminal.

new text begin (b) A delivery ticket required under section 239.092 for biofuel blended with gasoline
must state the volume percent of biofuel blended into gasoline delivered through a meter
into a storage tank used for dispensing by persons not exempt under subdivisions 10 to 14.
new text end

Sec. 17. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 16 are effective the day following final enactment.
new text end