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SF 2724

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; modifying definition of biodiesel; increasing minimum
biodiesel content; creating tiered biodiesel content goal; establishing B20 panel
with authority to increase minimum content; requiring a proposal; appropriating
money; amending Minnesota Statutes 2006, section 239.77, as amended;
Minnesota Statutes 2007 Supplement, section 296A.01, subdivision 8a.

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

Section 1.

Minnesota Statutes 2006, section 239.77, as amended by Laws 2007, chapter
62, sections 3 and 4, is amended to read:


239.77 BIODIESEL CONTENT MANDATE.

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 deleted text begin and thatdeleted text end new text begin ; new text end meets American Society for Testing and Materials specification
D6751-07 for Biodiesel Fuel (B100) Blend Stock for Distillate Fuelsnew text begin ; and is manufactured,
marketed, and distributed solely by persons certified by the BQ-9000 National Biodiesel
Accreditation Program. Biodiesel fuel does not mean renewable diesel derived from
biomass using the process of thermal depolymerization
new text end .

Subd. 2.

Minimum content.

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 deleted text begin 2.0deleted text end new text begin 5.0new text end percent biodiesel fuel oil by volume.

new text begin Subd. 2a. new text end

new text begin Biodiesel content goals. new text end

new text begin (a) It is the goal of this state that all diesel fuel
sold or offered for sale in Minnesota for use in internal combustion engines must contain
at least the stated percentage of biodiesel fuel oil by volume by July 1 of the associated
year, as listed below.
new text end

new text begin (1)
new text end
new text begin 2011
new text end
new text begin 10 percent
new text end
new text begin (2)
new text end
new text begin 2013
new text end
new text begin 15 percent
new text end
new text begin (3)
new text end
new text begin 2015
new text end
new text begin 20 percent
new text end

new text begin (b) The content goal in paragraph (a), clause (3), is effective during the months of
April, May, June, July, August, and September only. The minimum content goal for
the remainder of the year is 15 percent.
new text end

new text begin Subd. 2b. new text end

new text begin B20 panel; minimum content increases. new text end

new text begin (a) A B20 panel is established
and comprised of the commissioners of agriculture, commerce, and pollution control.
Guided by, but not limited to, the target dates in subdivision 2a, the B20 panel may
prescribe, via an executive order of the governor, a minimum biodiesel content that
supersedes the minimum content in subdivision 2. The new minimum biodiesel content is
effective statewide nine months after the executive order is published in the State Register.
new text end

new text begin (b) Before requesting an executive order, the B20 panel must inform the chairs of
the committees with jurisdiction over agriculture finance and the leadership of both houses
of the legislature of its intention, providing evidence sufficient to demonstrate that the
conditions in paragraph (c) have been met or will be met by the time the proposed increase
would take effect. An executive order to increase the minimum biodiesel content may not
be issued until the conclusion of the state legislative session in progress at the time of the
proposed increase or the conclusion of the subsequent legislative session if the legislature
is not convened in session when the B20 panel proposes the increase.
new text end

new text begin (c) The B20 panel may increase the minimum biodiesel content only if the following
conditions have been met:
new text end

new text begin (1) an American Society for Testing and Materials specification or equivalent federal
standard exists for the new minimum diesel-biodiesel blend;
new text end

new text begin (2) a sufficient supply of biodiesel is available and the amount of biodiesel produced
in this state is equal to at least 50 percent of anticipated demand at the proposed minimum
content level; and
new text end

new text begin (3) adequate blending infrastructure and regulatory protocol are in place in order to
promote biodiesel quality and avoid any potential economic disruption.
new text end

new text begin (d) The B20 panel must seek the input of the biodiesel task force when evaluating
the conditions in paragraph (c) and in general must seek the guidance of the biodiesel task
force regarding labeling, enforcement, and other issues. The B20 panel must inform the
biodiesel task force of its intention to increase biodiesel content by October 1 of the
calendar year preceding the effective date of the proposed biodiesel content increase.
new text end

new text begin (e) The B20 panel may increase the minimum biodiesel content no more than once
every two calendar years, not including any seasonal, temporary increase.
new text end

Subd. 3.

Exceptions.

(a) The minimum content requirement of subdivision 2new text begin , or any
superseding minimum content issued by executive order under the authority of subdivision
4,
new text end does not apply to fuel used in the following equipment:

(1) motors located at an electric generating plant regulated by the Nuclear
Regulatory Commission;

(2) railroad locomotives; and

(3) off-road taconite and copper mining equipment and machinery.

(b) The exemption in paragraph (a), clause (1), expires 30 days after the Nuclear
Regulatory Commission has approved the use of biodiesel fuel in motors at electric
generating plants under its regulation.

Subd. 4.

Disclosure.

A 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 EFFECTIVE DATE. new text end

new text begin This section is effective May 1, 2009.
new text end

Sec. 2.

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


Subd. 8a.

Biodiesel fuel.

"Biodiesel fuel" deleted text begin 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 D6751-07 for
Biodiesel Fuel (B100) Blend Stock for Distillate Fuels
deleted text end new text begin has the meaning given in section
239.77, subdivision 1
new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective May 1, 2009.
new text end

Sec. 3. new text begin PROPOSAL; PETROLEUM INSPECTION FEE REVENUE.
new text end

new text begin The commissioners of finance, commerce, and pollution control must develop and
submit to the legislature as part of their next biennial budget request a proposal for
eliminating redundant fuel inspections and dedicating all revenue from the petroleum
inspection fee levied on petroleum products under Minnesota Statutes, section 239.101,
subdivision 3, to the Weights and Measures Division of the Department of Commerce.
new text end

Sec. 4. new text begin APPROPRIATION.
new text end

new text begin $....... is appropriated in fiscal year 2009 from the general fund to the commissioner
of agriculture for infrastructure grants to fuel terminals that serve Minnesota for
cold-weather biodiesel blending.
new text end