as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:10am
A bill for an act
relating to energy; establishing standard to reduce carbon intensity of
transportation fuels; proposing coding for new law in Minnesota Statutes,
chapter 116.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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For the purposes of sections 116.741 and 116.742, the terms
defined in this section have the meanings given them.
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"Carbon dioxide equivalent" means the
amount of carbon dioxide by weight that would produce the same global warming impact
as a given weight of another greenhouse gas, based on the best available science.
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"Carbon intensity" means the quantity, as measured on
a full life-cycle basis, of carbon dioxide emission or carbon dioxide equivalent emission
of other greenhouse gases, per BTU of energy provided by a transportation fuel.
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"Commissioner" means the commissioner of the Pollution
Control Agency.
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"Full life-cycle basis" means all inputs and
emissions related to the entire life cycle of a transportation fuel, including the production
and extraction of the feedstock or other primary energy source, and the processing,
transportation, storage, distribution, and combustion or other chemical conversion of
the fuel.
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"Motor vehicle" means a vehicle that is self-propelled
and designed for use on a public highway.
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"Renewable transportation
fuel producer" means a manufacturer or producer of alcohol from agricultural, woody,
or other renewable feedstock for transportation fuel use. "Renewable transportation fuel
producer" also includes a manufacturer or producer of transportation fuels that is not a
"responsible party" as defined under subdivision 8.
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"Responsible party" means a refiner, producer, blender,
or importer of transportation fuel in this state who:
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(1) receives petroleum products in this state for storage and subsequent distribution
by tank car or tank truck, or both;
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(2) produces, manufactures, or refines petroleum products in this state; or
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(3) imports petroleum products into this state for sale within the state via boat, barge,
truck, or pipeline for storage and subsequent delivery or further transportation from boat,
barge, truck, or pipeline terminals in this state.
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Responsible party does not include a renewable producer as defined in subdivision 7.
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"Transportation fuel" means a fuel used to propel a
motor vehicle.
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(a) A responsible party shall reduce the carbon
intensity of transportation fuels it produces, refines, blends, or imports for sale in this
state by an aggregate of at least ten percent over the ten-year period from 2011 through
2020. The reduction must be at least one percent each year in the period 2011 through
2020. The reduction must be measured by using the applicable carbon intensity value of a
responsible party for a particular transportation fuel that is set by law, rule specifically
adopted pursuant to this section, or other determination of the commissioner.
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(b) There is no exclusive method to achieve the reduction. Methods of reduction
can include, among others:
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(1) blending high-carbon intensity fuels with low-carbon intensity fuels;
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(2) changes in production or extraction methods, and other activities reducing
carbon intensity; and
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(3) the purchase of low-carbon fuel credits created under the system developed
under subdivision 4.
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(c) The commissioner shall advise and assist responsible parties and others on
methods to achieve the reduction standard.
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Unless a different carbon intensity value is set
pursuant to subdivision 3, the table in this subdivision sets the carbon intensity value for
the identified transportation fuels for a responsible party and renewable transportation
fuel producer for 2011. The commissioner shall use a 2005-year baseline to calculate
a carbon intensity value.
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Transportation Fuel new text end |
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Carbon Intensity Value new text end |
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Gasoline new text end |
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1.000 new text end |
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Diesel new text end |
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0.987 new text end |
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Corn ethanol new text end |
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0.765 new text end |
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Cellulosic ethanol new text end |
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0.115 new text end |
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Coal to liquids new text end |
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2.443 new text end |
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Biodiesel new text end |
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0.350 new text end |
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Electricity new text end |
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Hydrogen new text end |
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Compressed natural gas new text end |
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Liquefied petroleum new text end |
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Methane new text end |
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Butanol new text end |
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DME new text end |
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A responsible party or renewable
transportation fuel producer may propose to the commissioner a carbon intensity value
for a transportation fuel it produces, blends, or imports different than the value set
by subdivision 2. A party proposing a different value has the burden to show by a
preponderance of scientific evidence that the value set by subdivision 2 is not appropriate.
If the commissioner, after consultation with the commissioner of agriculture, finds after
notice and hearing that a party has met this burden, the commissioner shall set a value for
the transportation fuel based on the evidence in the record.
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The commissioner shall develop a system of credits that may be
purchased and sold by responsible parties or renewable transportation fuel producers to
achieve the standard. The credits must be created by responsible party or renewable
transportation fuel producer activity that achieves a greater reduction in carbon intensity
in Minnesota than that required by this section.
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A responsible party shall report annually from 2011 through
2020 to the commissioner on activities it has taken or plans to take to achieve the reduction
standard. A responsible party shall report to the commissioner information requested
by the commissioner to assist the commissioner in determining whether the reduction
standard of this section has been or will be met. Beginning in 2013, the commissioner
shall require responsible parties to demonstrate achievement of the standard reduction by
submitting evidence of its transportation fuel carbon content or the purchase of sufficient
credits that comply with this section. The commissioner may accept reports filed under
other state and federal law for purposes of compliance with this section to the extent those
other reports contain information required under this section.
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The commissioner shall require a responsible
party to report information and cooperate with the commissioner to determine whether
the reduction standard of this section is being achieved. Beginning in 2014, a responsible
party may be penalized up to twice the cost of credits necessary for the responsible party
to achieve the reduction standard net of other reductions achieved. The penalty may
be imposed for each year the reduction standard is not achieved. The commissioner
shall consider the efforts of the responsible party to achieve the reduction standard in
determining whether to impose a penalty and in determining the amount of a penalty.
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The commissioner shall, by December 10, 2010, adopt rules
necessary to implement and administer this section.
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