SF 326

2nd Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to motor fuels; requiring that diesel fuel 
  1.3             sold in the state contain a minimum of five percent 
  1.4             biodiesel fuel oil by volume; clarifying when the 
  1.5             special fuel tax payments for biodiesel fuel oil must 
  1.6             be paid; amending Minnesota Statutes 2000, section 
  1.7             296A.08, subdivision 1; proposing coding for new law 
  1.8             in Minnesota Statutes, chapter 239. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  [239.77] [BIODIESEL CONTENT MANDATE.] 
  1.11     Subdivision 1.  [BIODIESEL FUEL OIL DESCRIBED.] "Biodiesel 
  1.12  fuel oil" means a biodegradable, combustible liquid fuel derived 
  1.13  from vegetable oils that meets ASTM specification PS 121-99 and 
  1.14  is suitable for blending with diesel fuel oil for use in 
  1.15  internal combustion diesel engines. 
  1.16     Subd. 2.  [CONTENT REQUIREMENTS.] (a) From July 1, 2002, 
  1.17  through June 30, 2006, all diesel fuel oil sold or offered for 
  1.18  sale in Minnesota for use in internal combustion engines must 
  1.19  contain at least 2.0 percent biodiesel fuel oil by volume. 
  1.20     (b) On and after July 1, 2006, all diesel fuel oil sold or 
  1.21  offered for sale in Minnesota for use in internal combustion 
  1.22  engines must contain at least 5.0 percent biodiesel fuel oil by 
  1.23  volume. 
  1.24     Sec. 2.  Minnesota Statutes 2000, section 296A.08, 
  1.25  subdivision 1, is amended to read: 
  1.26     Subdivision 1.  [TAX IMPOSED.] There is imposed an excise 
  1.27  tax on all special fuel at the rates specified in subdivision 
  2.1   2.  For purposes of this section, "owner or operator" means the 
  2.2   operation of licensed motor vehicles, whether loaded or empty, 
  2.3   whether for compensation or not for compensation, and whether 
  2.4   owned by or leased to the motor carrier who operates them or 
  2.5   causes them to be operated. 
  2.6      (a) For undyed diesel fuel, biodiesel fuel oil, and undyed 
  2.7   kerosene, the tax is imposed on the first licensed distributor 
  2.8   who received the product in Minnesota. 
  2.9      (b) For dyed fuel being used illegally in a licensed motor 
  2.10  vehicle, the tax is imposed on the owner or operator of the 
  2.11  motor vehicle. 
  2.12     (c) For dyed fuel used in a motor vehicle but subject to a 
  2.13  federal exemption, although no federal tax may be imposed, the 
  2.14  owner or operator of the vehicle is liable for the state tax. 
  2.15     (d) For other fuels, including jet fuel, propane, and 
  2.16  compressed natural gas, the tax is imposed on the distributor, 
  2.17  special fuel dealer, or bulk purchaser. 
  2.18     (e) Any person delivering special fuel on which the excise 
  2.19  tax has not previously been paid, into the supply tank of an 
  2.20  aircraft or a licensed motor vehicle shall report such delivery 
  2.21  and shall pay, or collect and pay the excise tax on the special 
  2.22  fuel so delivered to the commissioner.