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SF 1193

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
 relating to motor fuels; updating specifications for petroleum products;
modifying definitions of certain petroleum terms; amending Minnesota Statutes
2006, sections 239.761; 239.77, subdivisions 1, 2; 296A.01, subdivisions 14,
25, 42, by adding a subdivision; repealing Minnesota Statutes 2006, section
239.101, subdivision 7.

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

Section 1.

Minnesota Statutes 2006, 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 D4814-04adeleted text end new text begin D4814-06new 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 begin D4814-04adeleted text end new text begin D4814-06new text end , or the gasoline base
stock from which a gasoline-ethanol blend was produced must comply with ASTM
specification deleted text begin D4814-04adeleted text end new text begin D4814-06new 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 D4806-04a.
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 begin D4814-04adeleted text end new text begin D4814-06new 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 D396-02adeleted text end new text begin D395-05new text end .

Subd. 8.

Diesel fuel oil.

Diesel fuel oil must comply with ASTM specification
deleted text begin D975-04b, except that diesel fuel oil is not required to meet the diesel lubricity standard
until the date that the biodiesel fuel requirement in section 239.77, subdivision 2, becomes
effective or December 31, 2005, whichever comes firstdeleted text end new text begin D975-06new text end .

Subd. 9.

Kerosene.

Kerosene must comply with ASTM specification D3699-03.

Subd. 10.

Aviation gasoline.

Aviation gasoline must comply with ASTM
specification deleted text begin D910-04deleted text end new text begin D910-04anew text end .

Subd. 11.

Aviation turbine fuel, jet fuel.

Aviation turbine fuel and jet fuel must
comply with ASTM specification deleted text begin D1655-04deleted text end new text begin D1655-06anew 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 D5798-99 (2004).

Subd. 14.

M85.

A blend of methanol and gasoline, containing at least 85 percent
methanol, produced for use as a motor fuel in alternative fuel vehicles as defined in section
296A.01, subdivision 5, must comply with ASTM specification D5797-96.

new text begin Subd. 15. new text end

new text begin Biodiesel blend definition. new text end

new text begin "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.
 new text end

new text begin Subd. 16. new text end

new text begin Biodiesel fuel definition. new text end

new text begin "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 D6751-06e1 for biodiesel (B100) blend stock for distillate fuels.
 new text end

Sec. 2.

Minnesota Statutes 2006, 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 new text begin that is new text end derived from agricultural plant oils or
animal fats and that meets American Society For Testing and Materials Specification
deleted text begin D6751-02deleted text end new text begin D6751-06e1new text end for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels.

Sec. 3.

Minnesota Statutes 2006, section 239.77, subdivision 2, is amended to read:


Subd. 2.

Minimum contentdeleted text begin ; effective datedeleted text end .

deleted text begin (a)deleted text end 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 2.0 percent biodiesel fuel oil by volume.

deleted text begin (b) The mandate in paragraph (a) is effective on and after the date that the conditions
in clauses (1) and (2), or in clauses (1) and (3), have been met:
 deleted text end

deleted text begin (1) 30 or more days have passed since the commissioner of agriculture publishes
notice in the State Register that annual capacity in Minnesota for the production of
biodiesel fuel oil exceeds 8,000,000 gallons;
 deleted text end

deleted text begin (2) 18 months have passed since the commissioner of agriculture publishes notice in
the State Register that a federal action on taxes imposed, tax credits, or otherwise, creates
a reduction in the price of two cents or more per gallon on taxable fuel that contains at
least two percent biodiesel fuel oil and is sold in this state;
 deleted text end

deleted text begin (3) the date June 30, 2005, has passed.
 deleted text end

Sec. 4.

Minnesota Statutes 2006, section 296A.01, is amended by adding a subdivision
to read:


new text begin Subd. 8a. new text end

new text begin Biodiesel fuel. new text end

new text begin "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 D6751-6e1 for
Biodiesel Fuel (B100) Blend Stock for Distillate Fuels.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
 new text end

Sec. 5.

Minnesota Statutes 2006, 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 fuelsdeleted text begin ,deleted text end new text begin that is new text end intended for use as a motor fuel in internal
combustion diesel enginesdeleted text begin ,deleted text end new text begin and new text end that meets deleted text begin the specifications indeleted text end ASTM specification
deleted text begin D975-04b, except that diesel fuel oil is not required to meet the diesel lubricity standard
until the date that the biodiesel fuel requirement in section 239.77, subdivision 2, becomes
effective or December 31, 2005, whichever comes first. Diesel fuel includes number 1
and number 2 fuel oils. K-1 kerosene is not diesel fuel unless it is blended with diesel
fuel for use in motor vehiclesdeleted text end new text begin D975-06new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
 new text end

Sec. 6.

Minnesota Statutes 2006, 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 deleted text begin tendeleted text end new text begin 20 new text end 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 D4814-04adeleted text end new text begin D4814-06new text end , or the gasoline base stock from which a gasoline-ethanol blend
was produced must comply with ASTM specification deleted text begin D4814-04adeleted text end new text begin D4814-06new 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 begin D4814-04adeleted text end new text begin D4814-06new 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
 new text end

Sec. 7.

Minnesota Statutes 2006, section 296A.01, subdivision 42, is amended to read:


Subd. 42.

Petroleum products.

"Petroleum products" means all of the products
defined in subdivisions 2, 7, 8, new text begin 8a, new text end 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
 new text end

Sec. 8. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 239.101, subdivision 7, new text end new text begin is repealed.
 new text end